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Rio Tinto PLC (RIO) | Analysis of Debt

Total Debt Disclosure

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Rio Tinto PLC, Statement of Financial Position, Debt

USD $ in millions

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    Dec 31, 2010 Dec 31, 2009 Dec 31, 2008 Dec 31, 2007 Dec 31, 2006
Bank overdrafts repayable on demand
Current borrowings
Non-current borrowings
Total debt
Item Description The company
Total debt Sum of the carrying values as of the balance sheet date of all debt plus capital lease obligations. Rio Tinto PLC's total debt declined from 2008 to 2009 and from 2009 to 2010.

Interest Costs Incurred

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Rio Tinto PLC

USD $ in millions

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  12 months ended Dec 31, 2010 Dec 31, 2009 Dec 31, 2008 Dec 31, 2007 Dec 31, 2006
Interest payable and similar charges
Amounts capitalised
Interest costs incurred

Source: Based on data from Rio Tinto PLC, Annual Reports

Item Description The company
Interest payable and similar charges Represents the portion of interest incurred in the period on debt arrangements that was charged against earnings. Rio Tinto PLC's interest payable and similar charges declined from 2008 to 2009 and from 2009 to 2010.
Amounts capitalised The amount of interest that was capitalized during the period. Rio Tinto PLC's amounts capitalised declined from 2008 to 2009 and from 2009 to 2010.
Interest costs incurred Total interest costs incurred during the period and either capitalized or charged against earnings. Rio Tinto PLC's interest costs incurred declined from 2008 to 2009 and from 2009 to 2010.

Adjusted Interest Coverage Ratio

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    Dec 31, 2010 Dec 31, 2009 Dec 31, 2008 Dec 31, 2007 Dec 31, 2006
  Selected Financial Data (USD $ in millions)
Profit for the year attributable to owners of Rio Tinto
Add: Profit for the year attributable to non-controlling interests
Add: Interest payable and similar charges
Add: Income tax expense (benefit)
Earnings before interest and tax (EBIT)
   
Interest costs incurred
  Ratio With and Without Capitalized Interest
Interest coverage ratio (excluding capitalized interest)1
Adjusted interest coverage ratio (including capitalized interest)2

2010 Calculations

1 Interest coverage ratio (excluding capitalized interest) = EBIT ÷ Interest payable and similar charges
= ÷ =

2 Adjusted interest coverage ratio (including capitalized interest) = EBIT ÷ Interest costs incurred
= ÷ =

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

February 7, 2012

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