Royal Dutch Shell PLC, balance sheet: debt

US$ in millions

	Dec 31, 2014	Dec 31, 2013	Dec 31, 2012	Dec 31, 2011	Dec 31, 2010
Non-current debt	38,332)	36,218)	29,921)	30,463)	34,381)
Current debt	7,208)	8,344)	7,833)	6,712)	9,951)
Total debt (carrying amount)	45,540)	44,562)	37,754)	37,175)	44,332)

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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.	Royal Dutch Shell PLC total debt increased from 2012 to 2013 and from 2013 to 2014.

	Dec 31, 2014
Selected Financial Data (US$ in millions)
Debt, excluding finance lease liabilities	41,120)
Finance lease liabilities	6,702)
Total debt (fair value)	47,822)
Financial Ratio
Debt, fair value to carrying amount ratio	1.05

Weighted-average interest rate on debt: 5.38%

Interest rate	Debt amount¹	Interest rate × Debt amount
5.38%	38,838)	2,089)
Total	38,838)	2,089)
5.38%

¹ US$ in millions

² Weighted-average interest rate = 100 × 2,089 ÷ 38,838 = 5.38%

Royal Dutch Shell PLC, interest costs incurred

US$ in millions

12 months ended:	Dec 31, 2014	Dec 31, 2013	Dec 31, 2012	Dec 31, 2011	Dec 31, 2010
Interest expense, excluding accretion expense	765)	650)	894)	535)	249)
Interest capitalised	757)	762)	567)	674)	969)
Interest incurred and similar charges	1,522)	1,412)	1,461)	1,209)	1,218)

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Debt item	Description	The company
Interest expense, excluding accretion expense	Amount of the cost of borrowed funds accounted for as interest expense for debt.	Royal Dutch Shell PLC interest expense, excluding accretion expense decreased from 2012 to 2013 but then slightly increased from 2013 to 2014.
Interest capitalised	Amount of interest costs capitalized disclosed as an adjusting item to interest costs incurred.	Royal Dutch Shell PLC interest capitalised increased from 2012 to 2013 but then slightly decreased from 2013 to 2014.
Interest incurred and similar charges	Total interest costs incurred during the period and either capitalized or charged against earnings.	Royal Dutch Shell PLC interest incurred and similar charges decreased from 2012 to 2013 but then increased from 2013 to 2014 exceeding 2012 level.

	Dec 31, 2014	Dec 31, 2013	Dec 31, 2012	Dec 31, 2011	Dec 31, 2010
Selected Financial Data (US$ in millions)
Income attributable to Royal Dutch Shell plc shareholders	14,874)	16,371)	26,592)	30,918)	20,127)
Add: Net income attributable to noncontrolling interest	(144)	155)	248)	267)	347)
Add: Income tax expense	13,584)	17,066)	23,449)	24,475)	14,870)
Add: Interest expense, excluding accretion expense	765)	650)	894)	535)	249)
Earnings before interest and tax (EBIT)	29,079)	34,242)	51,183)	56,195)	35,593)

Interest incurred and similar charges	1,522)	1,412)	1,461)	1,209)	1,218)
Financial Ratio With and Without Capitalized Interest
Interest coverage ratio (without capitalized interest)¹	38.01	52.68	57.25	105.04	142.94
Adjusted interest coverage ratio (with capitalized interest)²	19.11	24.25	35.03	46.48	29.22

2014 Calculations

¹ Interest coverage ratio (without capitalized interest) = EBIT ÷ Interest expense, excluding accretion expense
= 29,079 ÷ 765 = 38.01

² Adjusted interest coverage ratio (with capitalized interest) = EBIT ÷ Interest incurred and similar charges
= 29,079 ÷ 1,522 = 19.11

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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).	Royal Dutch Shell PLC adjusted interest coverage ratio deteriorated from 2012 to 2013 and from 2013 to 2014.

Royal Dutch Shell PLC (NYSE:RDSA)

Analysis of Debt