EX-12.1 2 dow201110kex121.htm COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES. Dow 2011 10K 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


 
For the Years Ended December 31
In millions, except ratios (Unaudited)
2011

2010

2009

2008

2007

Income from Continuing Operations Before
    Income Taxes
$
3,601

$
2,802

$
469

$
1,277

$
4,192

Add (deduct):
 
 
 
 
 
Equity in earnings of nonconsolidated affiliates
(1,223
)
(1,112
)
(630
)
(787
)
(1,122
)
Distributed income of earnings of
    nonconsolidated affiliates
1,016

668

690

836

774

Capitalized interest
(90
)
(72
)
(61
)
(97
)
(85
)
Amortization of capitalized interest
100

95

91

84

79

Preferred security dividends
—

—

(20
)
(63
)
(81
)
Adjusted earnings
$
3,404

$
2,381

$
539

$
1,250

$
3,757

Fixed charges:
 
 
 
 
 
Interest expense and amortization of debt
    discount
$
1,341

$
1,473

$
1,571

$
648

$
584

Capitalized interest
90

72

61

97

85

Preferred security dividends
—

—

20

63

81

Rental expense – interest component
112

95

107

120

124

Total fixed charges
$
1,543

$
1,640

$
1,759

$
928

$
874

Earnings available for the payment of
    fixed charges
$
4,947

$
4,021

$
2,298

$
2,178

$
4,631

Ratio of earnings to fixed charges
3.2

2.5

1.3

2.3

5.3

 
 
 
 
 
 
Earnings required for combined fixed
    charges and preferred stock dividends:
 
 
 
 
 
Preferred stock dividends
$
340

$
340

$
312

$
—

$
—

Adjustment to pretax basis (at 35 percent)
183

183

168

—

—

Preferred stock dividends - pretax
$
523

$
523

$
480

$
—

$
—

Combined fixed charges and preferred stock
    dividend requirements
$
2,066

$
2,163

$
2,239

$
928

$
874

Ratio of earnings to combined fixed charges
    and preferred stock dividend requirements
2.4

1.9

1.0

2.3

5.3