EX-12.1 2 dow-q3x9302011ex121.htm COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES DOW-Q3-9.30.2011 EX. 12.1


 
  
The Dow Chemical Company and Subsidiaries
  
EXHIBIT 12.1

Computation of Ratio of Earnings to Fixed Charges and Combined
Fixed Charges and Preferred Stock Dividend Requirements


 
Nine Months Ended
 
For the Years Ended December 31
In millions, except ratios (Unaudited)
Sep 30,
2011

Sep 30,
2010

 
2010

2009

2008

2007

2006

Income from Continuing Operations Before
    Income Taxes
$
3,247

$
2,156

 
$
2,802

$
469

$
1,277

$
4,192

$
4,938

Add (deduct):
 
 
 
 
 
 
 
 
Equity in earnings of nonconsolidated affiliates
(964
)
(799
)
 
(1,112
)
(630
)
(787
)
(1,122
)
(959
)
Distributed income of earnings of
    nonconsolidated affiliates
743

558

 
668

690

836

774

616

Capitalized interest
(75
)
(48
)
 
(72
)
(61
)
(97
)
(85
)
(73
)
Amortization of capitalized interest
75

71

 
95

91

84

79

70

Preferred security dividends
—

—

 
—

(20
)
(63
)
(81
)
(77
)
Adjusted earnings
$
3,026

$
1,938

 
$
2,381

$
539

$
1,250

$
3,757

$
4,515

Fixed charges:
 
 
 
 
 
 
 
 
Interest expense and amortization of debt
    discount
1,010

1,105

 
1,473

1,571

648

584

616

Capitalized interest
75

48

 
72

61

97

85

73

Preferred security dividends
—

—

 
—

20

63

81

77

Rental expense – interest component
82

71

 
95

107

120

124

131

Total fixed charges
$
1,167

$
1,224

 
$
1,640

$
1,759

$
928

$
874

$
897

Earnings available for the payment of
    fixed charges
$
4,193

$
3,162

 
$
4,021

$
2,298

$
2,178

$
4,631

$
5,412

Ratio of earnings to fixed charges
3.6

2.6

 
2.5

1.3

2.3

5.3

6.0

 
 
 
 
 
 
 
 
 
Earnings required for combined fixed
    charges and preferred stock dividends:
 
 
 
 
 
 
 
 
Preferred stock dividends
$
255

$
255

 
$
340

$
312

$
—

$
—

$
—

Adjustment to pretax basis (at 35 percent)
137

137

 
183

168

—

—

—

 
$
392

$
392

 
$
523

$
480

$
—

$
—

$
—

Combined fixed charges and preferred stock
    dividend requirements
$
1,559

$
1,616

 
$
2,163

$
2,239

$
928

$
874

$
897

Ratio of earnings to combined fixed charges
    and preferred stock dividend requirements
2.7

2.0

 
1.9

1.0

2.3

5.3

6.0