EX-12.1 3 dow201410kex121.htm COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES AND COMBINED FIXED CHARGES DOW 2014 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)
2014

2013

2012

2011

2010

Income Before Income Taxes
$
5,265

$
6,804

$
1,665

$
3,601

$
2,802

Add (deduct):
 
 
 
 
 
Equity in earnings of nonconsolidated affiliates
(835
)
(1,034
)
(536
)
(1,223
)
(1,112
)
Distributed income of earnings of
    nonconsolidated affiliates
961

905

823

1,016

668

Capitalized interest
(125
)
(78
)
(84
)
(90
)
(72
)
Amortization of capitalized interest
83

91

90

100

95

Adjusted earnings
$
5,349

$
6,688

$
1,958

$
3,404

$
2,381

Fixed charges:
 
 
 
 
 
Interest expense and amortization of debt
    discount
$
983

$
1,101

$
1,269

$
1,341

$
1,473

Capitalized interest
125

78

84

90

72

Rental expense – interest component
134

122

120

112

95

Total fixed charges
$
1,242

$
1,301

$
1,473

$
1,543

$
1,640

Earnings available for the payment of
    fixed charges
$
6,591

$
7,989

$
3,431

$
4,947

$
4,021

Ratio of earnings to fixed charges
5.3

6.1

2.3

3.2

2.5

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

$
340

$
340

$
340

$
340

Adjustment to pretax basis (at 35 percent)
183

183

183

183

183

Preferred stock dividends - pretax
$
523

$
523

$
523

$
523

$
523

Combined fixed charges and preferred stock
    dividend requirements
$
1,765

$
1,824

$
1,996

$
2,066

$
2,163

Ratio of earnings to combined fixed charges
    and preferred stock dividend requirements
3.7

4.4

1.7

2.4

1.9




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