EX-12.1 4 d616664dex121.htm EX-12.1 EX-12.1

EXHIBIT 12.1

DowDuPont Inc.

Computation of Ratio of Earnings to Fixed Charges and Combined

Fixed Charges and Preferred Stock Dividend Requirements

 

     For the Six
Months
Ended		     For the Years Ended Dec 31  

In millions, except ratios (Unaudited)

    Jun 30, 2018     2017     2016     2015     2014     2013  

Income from continuing operations before income taxes

    $ 3,910     $ 1,193     $ 4,413     $ 9,930     $ 5,265     $ 6,804  

Add (deduct):

             

Equity in earnings of nonconsolidated affiliates

      (507 )      (764 )      (442 )      (674 )      (835 )      (1,034 ) 

Distributed income of earnings of nonconsolidated affiliates

      714       900       685       816       961       905  

Capitalized interest

      (56 )      (246 )      (243 )      (218 )      (125 )      (78 ) 

Amortization of capitalized interest

      55       95       83       78       83       91  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Adjusted earnings

    $ 4,116     $ 1,178     $ 4,496     $ 9,932     $ 5,349     $ 6,688  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Fixed charges:

             

Interest expense and amortization of debt discount

    $ 710     $ 1,082     $ 858     $ 946     $ 983     $ 1,101  

Capitalized interest

      56       246       243       218       125       78  

Rental expense – interest component

      141       213       161       167       134       122  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total fixed charges

    $ 907     $ 1,541     $ 1,262     $ 1,331     $ 1,242     $ 1,301  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Earnings available for the payment of fixed charges

    $ 5,023     $ 2,719     $ 5,758     $ 11,263     $ 6,591     $ 7,989  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ratio of earnings to fixed charges

      5.5       1.8       4.6       8.5       5.3       6.1  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Earnings required for combined fixed charges and preferred stock dividends:1

             

Preferred stock dividends

    $ —       $ —       $ 340     $ 340     $ 340     $ 340  

Adjustment to pretax basis

      —         —         183       183       183       183  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Preferred stock dividends - pretax

    $ —       $ —       $ 523     $ 523     $ 523     $ 523  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Combined fixed charges and preferred stock dividend requirements

    $ 907     $ 1,541     $ 1,785     $ 1,854     $ 1,765     $ 1,824  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ratio of earnings to combined fixed charges and preferred stock dividend requirements

      5.5       1.8       3.2       6.1       3.7       4.4  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

1.

On December 30, 2016 (“Conversion Date”), Dow’s Cumulative Convertible Perpetual Preferred Stock, Series A (“Preferred Stock”) was converted into shares of Dow’s common stock. From and after the Conversion Date, no shares of Preferred Stock are issued or outstanding and all rights of the holders of the Preferred Stock have terminated.