Phillips 66, balance sheet: debt

US$ in millions

	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015
Short-term debt	547)	67)	41)	550)	44)
Long-term debt	11,216)	11,093)	10,069)	9,588)	8,843)
Total debt (carrying amount)	11,763)	11,160)	10,110)	10,138)	8,887)

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Debt item	Description	The company
Total debt (carrying amount)	Sum of the carrying values as of the balance sheet date of all debt plus capital lease obligations.	Phillips 66 total debt increased from 2017 to 2018 and from 2018 to 2019.

	Dec 31, 2019
Selected Financial Data (US$ in millions)
Floating-rate debt	1,100)
Fixed-rate debt, excluding finance leases	11,813)
Finance leases	277)
Software obligations	10)
Other	1)
Total debt (fair value)	13,201)
Financial Ratio
Debt, fair value to carrying amount ratio	1.12

Weighted-average interest rate on debt: 4.25%

Interest rate	Debt amount¹	Interest rate × Debt amount
4.30%	2,000)	86)
3.90%	800)	31)
4.65%	1,000)	47)
5.88%	1,500)	88)
4.88%	1,700)	83)
2.75%	300)	8)
2.70%	200)	5)
2.52%	500)	13)
2.39%	25)	1)
2.45%	300)	7)
3.61%	500)	18)
3.55%	500)	18)
3.75%	500)	19)
3.15%	600)	19)
4.68%	450)	21)
4.90%	625)	31)
1.85%	75)	1)
3.10%	277)	9)
Total	11,852)	504)
4.25%

¹ US$ in millions

² Weighted-average interest rate = 100 × 504 ÷ 11,852 = 4.25%

Phillips 66, interest costs incurred

US$ in millions

12 months ended:	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015
Interest and debt expense	458)	504)	438)	338)	310)
Interest capitalized	77)	17)	15)	81)	106)
Interest and debt expense incurred	535)	521)	453)	419)	416)

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Debt item	Description	The company
Interest and debt expense	Amount of the cost of borrowed funds accounted for as interest expense for debt.	Phillips 66 interest and debt expense increased from 2017 to 2018 but then slightly decreased from 2018 to 2019 not reaching 2017 level.
Interest capitalized	Amount of interest costs capitalized disclosed as an adjusting item to interest costs incurred.	Phillips 66 interest capitalized increased from 2017 to 2018 and from 2018 to 2019.
Interest and debt expense incurred	Total interest costs incurred during the period and either capitalized or charged against earnings.	Phillips 66 interest and debt expense incurred increased from 2017 to 2018 and from 2018 to 2019.

	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015
Selected Financial Data (US$ in millions)
Net income attributable to Phillips 66	3,076)	5,595)	5,106)	1,555)	4,227)
Add: Net income attributable to noncontrolling interest	301)	278)	142)	89)	53)
Add: Income tax expense	801)	1,572)	(1,693)	547)	1,764)
Add: Interest and debt expense	458)	504)	438)	338)	310)
Earnings before interest and tax (EBIT)	4,636)	7,949)	3,993)	2,529)	6,354)

Interest and debt expense incurred	535)	521)	453)	419)	416)
Financial Ratio With and Without Capitalized Interest
Interest coverage ratio (without capitalized interest)¹	10.12	15.77	9.12	7.48	20.50
Adjusted interest coverage ratio (with capitalized interest)²	8.67	15.26	8.81	6.04	15.27

2019 Calculations

¹ Interest coverage ratio (without capitalized interest) = EBIT ÷ Interest and debt expense
= 4,636 ÷ 458 = 10.12

² Adjusted interest coverage ratio (with capitalized interest) = EBIT ÷ Interest and debt expense incurred
= 4,636 ÷ 535 = 8.67

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Solvency ratio	Description	The company
Adjusted interest coverage ratio	A solvency ratio calculated as EBIT divided by interest payments (including capitalized interest).	Phillips 66 adjusted interest coverage ratio improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019.

Phillips 66 (NYSE:PSX)

Analysis of Debt