EX-12.1 2 dow-q1x3312014ex121.htm COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES DOW-Q1-3.31.2014 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


 
Three Months Ended
 
For the Years Ended December 31
In millions, except ratios (Unaudited)
Mar 31,
2014

Mar 31,
2013

 
2013

2012

2011

2010

2009

Income from Continuing Operations Before
    Income Taxes
$
1,491

$
1,264

 
$
6,804

$
1,665

$
3,601

$
2,802

$
469

Add (deduct):
 
 
 
 
 
 
 
 
Equity in earnings of nonconsolidated affiliates
(251
)
(230
)
 
(1,034
)
(536
)
(1,223
)
(1,112
)
(630
)
Distributed income of earnings of
    nonconsolidated affiliates
650

523

 
905

823

1,016

668

690

Capitalized interest
(24
)
(21
)
 
(78
)
(84
)
(90
)
(72
)
(61
)
Amortization of capitalized interest
21

23

 
91

90

100

95

91

Preferred security dividends
—

—

 
—

—

—

—

(20
)
Adjusted earnings
$
1,887

$
1,559

 
$
6,688

$
1,958

$
3,404

$
2,381

$
539

Fixed charges:
 
 
 
 
 
 
 
 
Interest expense and amortization of debt
    discount
$
246

$
296

 
$
1,101

$
1,269

$
1,341

$
1,473

$
1,571

Capitalized interest
24

21

 
78

84

90

72

61

Preferred security dividends
—

—

 
—

—

—

—

20

Rental expense – interest component
30

30

 
122

120

112

95

107

Total fixed charges
$
300

$
347

 
$
1,301

$
1,473

$
1,543

$
1,640

$
1,759

Earnings available for the payment of
    fixed charges
$
2,187

$
1,906

 
$
7,989

$
3,431

$
4,947

$
4,021

$
2,298

Ratio of earnings to fixed charges
7.3

5.5

 
6.1

2.3

3.2

2.5

1.3

 
 
 
 
 
 
 
 
 
Earnings required for combined fixed
    charges and preferred stock dividends:
 
 
 
 
 
 
 
 
Preferred stock dividends
$
85

$
85

 
$
340

$
340

$
340

$
340

$
312

Adjustment to pretax basis (at 35 percent)
46

46

 
183

183

183

183

168

Preferred stock dividends - pretax
$
131

$
131

 
$
523

$
523

$
523

$
523

$
480

Combined fixed charges and preferred stock
    dividend requirements
$
431

$
478

 
$
1,824

$
1,996

$
2,066

$
2,163

$
2,239

Ratio of earnings to combined fixed charges
    and preferred stock dividend requirements
5.1

4.0

 
4.4

1.7

2.4

1.9

1.0




53