Interest from external borrowings is capitalized on major projects with an expected construction period of one year or longer. Capitalized interest is added to the cost of the underlying asset and is amortized over the useful lives of the assets in the same manner as the underlying assets.
Source: ConocoPhillips, Annual Report
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ConocoPhillips, Statement of Financial Position, Debt
USD $ in millions
| Dec 31, 2011 | Dec 31, 2010 | Dec 31, 2009 | Dec 31, 2008 | Dec 31, 2007 | ||
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Source: Based on data from ConocoPhillips, Annual Reports
| Item | Description | The company |
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| Total debt | Sum of the carrying values as of the balance sheet date of all debt plus capital lease obligations. | ConocoPhillips's total debt declined from 2009 to 2010 and from 2010 to 2011. |
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ConocoPhillips
USD $ in millions
| 12 months ended | Dec 31, 2011 | Dec 31, 2010 | Dec 31, 2009 | Dec 31, 2008 | Dec 31, 2007 | |
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Interest expensed | |
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Interest incurred | |
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Source: Based on data from ConocoPhillips, Annual Reports
| Item | Description | The company |
|---|---|---|
| Interest expensed | Represents the portion of interest incurred in the period on debt arrangements that was charged against earnings. | ConocoPhillips's interest expensed declined from 2009 to 2010 and from 2010 to 2011. |
| Interest capitalized | The amount of interest that was capitalized during the period. | ConocoPhillips's interest capitalized declined from 2009 to 2010 but then increased from 2010 to 2011 exceeding 2009 level. |
| Interest incurred | Total interest costs incurred during the period and either capitalized or charged against earnings. | ConocoPhillips's interest incurred declined from 2009 to 2010 and from 2010 to 2011. |
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| Dec 31, 2011 | Dec 31, 2010 | Dec 31, 2009 | Dec 31, 2008 | Dec 31, 2007 | ||
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| Selected Financial Data (USD $ in millions) | ||||||
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Net income (loss) attributable to ConocoPhillips | |
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Add: Net income attributable to noncontrolling interests | |
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Add: Interest and debt expense | |
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Add: Income tax expense (benefit) | |
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Earnings before interest and tax (EBIT) | |
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Interest incurred | |
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Interest coverage ratio (excluding capitalized interest)1 | |
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Adjusted interest coverage ratio (including capitalized interest)2 | |
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2011 Calculations
1 Interest coverage ratio (excluding capitalized interest) = EBIT ÷ Interest and debt expense
= ÷ =
2 Adjusted interest coverage ratio (including capitalized interest) = EBIT ÷ Interest incurred
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| Ratio | Description | The company |
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| Adjusted interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments (including capitalized interest). | ConocoPhillips's adjusted interest coverage ratio improved from 2009 to 2010 and from 2010 to 2011. |
May 23, 2012