EX-12.1 2 dow-q3x9302013ex121.htm COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES DOW-Q3-9.30.2013 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


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

Sep 30,
2012

 
2012

2011

2010

2009

2008

Income from Continuing Operations Before
    Income Taxes
$
5,418

$
2,515

 
$
1,665

$
3,601

$
2,802

$
469

$
1,277

Add (deduct):
 
 
 
 
 
 
 
 
Equity in earnings of nonconsolidated affiliates
(780
)
(492
)
 
(536
)
(1,223
)
(1,112
)
(630
)
(787
)
Distributed income of earnings of
    nonconsolidated affiliates
738

584

 
823

1,016

668

690

836

Capitalized interest
(61
)
(66
)
 
(84
)
(90
)
(72
)
(61
)
(97
)
Amortization of capitalized interest
69

67

 
90

100

95

91

84

Preferred security dividends
—

—

 
—

—

—

(20
)
(63
)
Adjusted earnings
$
5,384

$
2,608

 
$
1,958

$
3,404

$
2,381

$
539

$
1,250

Fixed charges:
 
 
 
 
 
 
 
 
Interest expense and amortization of debt
    discount
$
839

$
959

 
$
1,269

$
1,341

$
1,473

$
1,571

$
648

Capitalized interest
61

66

 
84

90

72

61

97

Preferred security dividends
—

—

 
—

—

—

20

63

Rental expense – interest component
91

87

 
120

112

95

107

120

Total fixed charges
$
991

$
1,112

 
$
1,473

$
1,543

$
1,640

$
1,759

$
928

Earnings available for the payment of
    fixed charges
$
6,375

$
3,720

 
$
3,431

$
4,947

$
4,021

$
2,298

$
2,178

Ratio of earnings to fixed charges
6.4

3.3

 
2.3

3.2

2.5

1.3

2.3

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

$
255

 
$
340

$
340

$
340

$
312

$
—

Adjustment to pretax basis (at 35 percent)
137

137

 
183

183

183

168

—

Preferred stock dividends - pretax
$
392

$
392

 
$
523

$
523

$
523

$
480

$
—

Combined fixed charges and preferred stock
    dividend requirements
$
1,383

$
1,504

 
$
1,996

$
2,066

$
2,163

$
2,239

$
928

Ratio of earnings to combined fixed charges
    and preferred stock dividend requirements
4.6

2.5

 
1.7

2.4

1.9

1.0

2.3




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