EARNINGS PER SHARE CALCULATIONS

The following tables provide the earnings per share calculations for the year ended December 31, 2011:



Net Income In millions	2011
Net income from continuing operations	$	2,784
Net income attributable to noncontrolling interests	(42		)
Net income attributable to The Dow Chemical Company	$	2,742
Preferred stock dividends	(340		)
Net income attributable to participating securities (1)	(30		)
Net income attributable to common stockholders	$	2,372



Earnings Per Share Calculations - Basic Dollars per share	2011
Net income from continuing operations	$	2.42
Net income attributable to noncontrolling interests	(0.03		)
Net income attributable to The Dow Chemical Company	$	2.39
Preferred stock dividends	(0.30		)
Net income attributable to participating securities (1)	(0.03		)
Net income attributable to common stockholders	$	2.06



Earnings Per Share Calculations - Diluted Dollars per share	2011
Net income from continuing operations	$	2.40
Net income attributable to noncontrolling interests	(0.03		)
Net income attributable to The Dow Chemical Company	$	2.37
Preferred stock dividends (2)	(0.29		)
Net income attributable to participating securities (1)	(0.03		)
Net income attributable to common stockholders	$	2.05



Shares in millions
Weighted-average common shares - basic		1,149.0
Plus dilutive effect of stock options and awards		9.2
Weighted-average common shares - diluted		1,158.2
Stock options and deferred stock awards excluded from EPS calculations (3)		44.7
Conversion of preferred stock excluded from EPS calculations (4)		96.8

(1)

Accounting Standards Codification Topic 260, "Earnings per Share," requires enterprises with participating securities to use the two-class method to calculate earnings per share and to report the most dilutive earnings per share amount. The Company's deferred stock awards are considered participating securities due to Dow's practice of paying dividend equivalents on unvested shares. The impact on earnings per share in 2010 and 2009 using the two-class method was immaterial.


(2)	Preferred stock dividends were not added back in the calculation of diluted earnings per share because the effect of adding them back would have been antidilutive.


(3)	These outstanding options to purchase shares of common stock and deferred stock awards were excluded from the calculation of diluted earnings per share because the effect of including them would have been antidilutive.


(4)	Conversion of the Cumulative Convertible Perpetual Preferred Stock, Series A into shares of the Company’s common stock was excluded from the calculation of diluted earnings per share because the effect of including them would have been antidilutive.

The following tables proved the earnings per share calculations for the years ended December 31, 2010 and 2009:



Net Income In millions	2010			2009
Net income from continuing operations	$	2,321		$	566
Income from discontinued operations, net of income taxes	—			110
Net income attributable to noncontrolling interests	(11		)	(28		)
Net income attributable to The Dow Chemical Company	$	2,310		$	648
Preferred stock dividends	(340		)	(312		)
Net income available for common stockholders	$	1,970		$	336



Earnings Per Share Calculations - Basic Dollars per share	2010			2009
Net income from continuing operations	$	2.06		$	0.54
Income from discontinued operations, net of income taxes	—			0.10
Net income attributable to noncontrolling interests	(0.01		)	(0.02		)
Net income attributable to The Dow Chemical Company	$	2.05		$	0.62
Preferred stock dividends	(0.30		)	(0.30		)
Net income available for common stockholders	$	1.75		$	0.32



Earnings Per Share Calculations - Diluted Dollars per share	2010			2009
Net income from continuing operations	$	2.03		$	0.54
Income from discontinued operations, net of income taxes	—			0.10
Net income attributable to noncontrolling interests	(0.01		)	(0.02		)
Net income attributable to The Dow Chemical Company	$	2.02		$	0.62
Preferred stock dividends (1)	(0.30		)	(0.30		)
Net income available for common stockholders	$	1.72		$	0.32



Shares in millions
Weighted-average common shares - basic	1,125.9	1,043.2
Plus dilutive effect of stock options and awards	17.9	10.7
Weighted-average common shares - diluted	1,143.8	1,053.9
Stock options and deferred stock awards excluded from EPS calculations (2)	45.7	57.3
Conversion of preferred stock excluded from EPS calculations (3)	96.8	78.5


(1)	Preferred stock dividends were not added back in the calculation of diluted earnings per share because the effect of adding them back would have been antidilutive.


(2)	These outstanding options to purchase shares of common stock and deferred stock awards were excluded from the calculation of diluted earnings per share because the effect of including them would have been antidilutive.


(3)	Conversion of the Cumulative Convertible Perpetual Preferred Stock, Series A into shares of the Company’s common stock was excluded from the calculation of diluted earnings per share because the effect of including them would have been antidilutive.