BP PLC (BP) | Analysis of Debt

Total Debt Disclosure

BP PLC, Statement of Financial Position, Debt

USD $ in millions

	Dec 31, 2010	Dec 31, 2009	Dec 31, 2008	Dec 31, 2007	Dec 31, 2006
Current finance debt	14,626	9,109	15,740	15,394	12,924
Non-current finance debt	30,710	25,518	17,464	15,651	11,086
Total debt	45,336	34,627	33,204	31,045	24,010

Item	Description	The company
Total debt	Sum of the carrying values as of the balance sheet date of all debt plus capital lease obligations.	BP PLC's total debt increased from 2008 to 2009 and from 2009 to 2010.

BP PLC

USD $ in millions

12 months ended	Dec 31, 2010	Dec 31, 2009	Dec 31, 2008	Dec 31, 2007	Dec 31, 2006
Finance costs	1,170	1,110	1,547	1,393	986
Interest capitalized	254	188	162	323	478
Finance costs incurred	1,424	1,298	1,709	1,716	1,464

Source: Based on data from BP PLC, Annual Reports

Item	Description	The company
Finance costs	Represents the portion of interest incurred in the period on debt arrangements that was charged against earnings.	BP PLC's finance costs declined from 2008 to 2009 but then slightly increased from 2009 to 2010.
Interest capitalized	The amount of interest that was capitalized during the period.	BP PLC's interest capitalized increased from 2008 to 2009 and from 2009 to 2010.
Finance costs incurred	Total interest costs incurred during the period and either capitalized or charged against earnings.	BP PLC's finance costs incurred declined from 2008 to 2009 but then slightly increased from 2009 to 2010.

	Dec 31, 2010	Dec 31, 2009	Dec 31, 2008	Dec 31, 2007	Dec 31, 2006
Selected Financial Data (USD $ in millions)
Profit (loss) for the year attributable to BP shareholders	(3,719)	16,578	21,157	20,845	22,315
Add: Profit (loss) for the year attributable to minority interest	395	181	509	324	286
Add: Finance costs	1,170	1,110	1,547	1,393	986
Add: Income tax expense (benefit)	(1,501)	8,365	12,617	10,442	12,516
Earnings before interest and tax (EBIT)	(3,655)	26,234	35,830	33,004	36,103

Finance costs incurred	1,424	1,298	1,709	1,716	1,464
Ratio With and Without Capitalized Interest
Interest coverage ratio (excluding capitalized interest)¹	-3.12	23.63	23.16	23.69	36.62
Adjusted interest coverage ratio (including capitalized interest)²	-2.57	20.21	20.97	19.23	24.66

2010 Calculations

¹ Interest coverage ratio (excluding capitalized interest) = EBIT ÷ Finance costs
= (3,655) ÷ 1,170 = -3.12

² Adjusted interest coverage ratio (including capitalized interest) = EBIT ÷ Finance costs incurred
= (3,655) ÷ 1,424 = -2.57

Ratio	Description	The company
Adjusted interest coverage ratio	A solvency ratio calculated as EBIT divided by interest payments (including capitalized interest).	BP PLC's adjusted interest coverage ratio deteriorated from 2008 to 2009 and from 2009 to 2010.