EX-12.1 3 dow-q2x6302013ex121.htm COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES DOW-Q2-6.30.2013 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


 
Six Months Ended
 
For the Years Ended December 31
In millions, except ratios (Unaudited)
Jun 30,
2013

Jun 30,
2012

 
2012

2011

2010

2009

2008

Income from Continuing Operations Before
    Income Taxes
$
4,502

$
1,690

 
$
1,665

$
3,601

$
2,802

$
469

$
1,277

Add (deduct):
 
 
 
 
 
 
 
 
Equity in earnings of nonconsolidated affiliates
(458
)
(317
)
 
(536
)
(1,223
)
(1,112
)
(630
)
(787
)
Distributed income of earnings of
    nonconsolidated affiliates
618

508

 
823

1,016

668

690

836

Capitalized interest
(42
)
(45
)
 
(84
)
(90
)
(72
)
(61
)
(97
)
Amortization of capitalized interest
46

45

 
90

100

95

91

84

Preferred security dividends
—

—

 
—

—

—

(20
)
(63
)
Adjusted earnings
$
4,666

$
1,881

 
$
1,958

$
3,404

$
2,381

$
539

$
1,250

Fixed charges:
 
 
 
 
 
 
 
 
Interest expense and amortization of debt
    discount
$
575

$
641

 
$
1,269

$
1,341

$
1,473

$
1,571

$
648

Capitalized interest
42

45

 
84

90

72

61

97

Preferred security dividends
—

—

 
—

—

—

20

63

Rental expense – interest component
61

58

 
120

112

95

107

120

Total fixed charges
$
678

$
744

 
$
1,473

$
1,543

$
1,640

$
1,759

$
928

Earnings available for the payment of
    fixed charges
$
5,344

$
2,625

 
$
3,431

$
4,947

$
4,021

$
2,298

$
2,178

Ratio of earnings to fixed charges
7.9

3.5

 
2.3

3.2

2.5

1.3

2.3

 
 
 
 
 
 
 
 
 
Earnings required for combined fixed
    charges and preferred stock dividends:
 
 
 
 
 
 
 
 
Preferred stock dividends
$
170

$
170

 
$
340

$
340

$
340

$
312

$
—

Adjustment to pretax basis (at 35 percent)
92

92

 
183

183

183

168

—

Preferred stock dividends - pretax
$
262

$
262

 
$
523

$
523

$
523

$
480

$
—

Combined fixed charges and preferred stock
    dividend requirements
$
940

$
1,006

 
$
1,996

$
2,066

$
2,163

$
2,239

$
928

Ratio of earnings to combined fixed charges
    and preferred stock dividend requirements
5.7

2.6

 
1.7

2.4

1.9

1.0

2.3




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