EX-12.1 4 dow201610kex121.htm COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES AND COMBINED FIXED CHARGES Exhibit


 
 
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)
2016

2015

2014

2013

2012

Income Before Income Taxes
$
4,413

$
9,930

$
5,265

$
6,804

$
1,665

Add (deduct):
 
 
 
 
 
Equity in earnings of nonconsolidated affiliates
(442
)
(674
)
(835
)
(1,034
)
(536
)
Distributed income of earnings of
    nonconsolidated affiliates
685

816

961

905

823

Capitalized interest
(243
)
(218
)
(125
)
(78
)
(84
)
Amortization of capitalized interest
83

78

83

91

90

Adjusted earnings
$
4,496

$
9,932

$
5,349

$
6,688

$
1,958

Fixed charges:
 
 
 
 
 
Interest expense and amortization of debt
    discount
$
858

$
946

$
983

$
1,101

$
1,269

Capitalized interest
243

218

125

78

84

Rental expense – interest component
161

167

134

122

120

Total fixed charges
$
1,262

$
1,331

$
1,242

$
1,301

$
1,473

Earnings available for the payment of
    fixed charges
$
5,758

$
11,263

$
6,591

$
7,989

$
3,431

Ratio of earnings to fixed charges
4.6

8.5

5.3

6.1

2.3

 
 
 
 
 
 
Earnings required for combined fixed
    charges and preferred stock dividends (1):
 
 
 
 
 
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
$
1,785

$
1,854

$
1,765

$
1,824

$
1,996

Ratio of earnings to combined fixed charges
    and preferred stock dividend requirements
3.2

6.1

3.7

4.4

1.7

(1)
On December 30, 2016 ("Conversion Date"), the Company's Cumulative Convertible Perpetual Preferred Stock, Series A ("Preferred Stock") was converted into shares of the Company's common stock. From and after the Conversion Date, no shares of the Preferred Stock are issued or outstanding and all rights of the holders of the Preferred Stock have terminated.



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