EXHIBIT 12.1
DowDuPont Inc.
Computation of Ratio of Earnings to Fixed Charges and Combined
Fixed Charges and Preferred Stock Dividend Requirements
For the Six Months Ended | For the Years Ended Dec 31 | |||||||||||||||||||||||
In millions, except ratios (Unaudited) | Jun 30, 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | ||||||||||||||||||
Income from continuing operations before income taxes | $ | 3,910 | $ | 1,193 | $ | 4,413 | $ | 9,930 | $ | 5,265 | $ | 6,804 | ||||||||||||
Add (deduct): | ||||||||||||||||||||||||
Equity in earnings of nonconsolidated affiliates | (507 | ) | (764 | ) | (442 | ) | (674 | ) | (835 | ) | (1,034 | ) | ||||||||||||
Distributed income of earnings of nonconsolidated affiliates | 714 | 900 | 685 | 816 | 961 | 905 | ||||||||||||||||||
Capitalized interest | (56 | ) | (246 | ) | (243 | ) | (218 | ) | (125 | ) | (78 | ) | ||||||||||||
Amortization of capitalized interest | 55 | 95 | 83 | 78 | 83 | 91 | ||||||||||||||||||
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Adjusted earnings | $ | 4,116 | $ | 1,178 | $ | 4,496 | $ | 9,932 | $ | 5,349 | $ | 6,688 | ||||||||||||
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Fixed charges: | ||||||||||||||||||||||||
Interest expense and amortization of debt discount | $ | 710 | $ | 1,082 | $ | 858 | $ | 946 | $ | 983 | $ | 1,101 | ||||||||||||
Capitalized interest | 56 | 246 | 243 | 218 | 125 | 78 | ||||||||||||||||||
Rental expense – interest component | 141 | 213 | 161 | 167 | 134 | 122 | ||||||||||||||||||
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Total fixed charges | $ | 907 | $ | 1,541 | $ | 1,262 | $ | 1,331 | $ | 1,242 | $ | 1,301 | ||||||||||||
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Earnings available for the payment of fixed charges | $ | 5,023 | $ | 2,719 | $ | 5,758 | $ | 11,263 | $ | 6,591 | $ | 7,989 | ||||||||||||
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Ratio of earnings to fixed charges | 5.5 | 1.8 | 4.6 | 8.5 | 5.3 | 6.1 | ||||||||||||||||||
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Earnings required for combined fixed charges and preferred stock dividends:1 | ||||||||||||||||||||||||
Preferred stock dividends | $ | — | $ | — | $ | 340 | $ | 340 | $ | 340 | $ | 340 | ||||||||||||
Adjustment to pretax basis | — | — | 183 | 183 | 183 | 183 | ||||||||||||||||||
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Preferred stock dividends - pretax | $ | — | $ | — | $ | 523 | $ | 523 | $ | 523 | $ | 523 | ||||||||||||
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Combined fixed charges and preferred stock dividend requirements | $ | 907 | $ | 1,541 | $ | 1,785 | $ | 1,854 | $ | 1,765 | $ | 1,824 | ||||||||||||
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Ratio of earnings to combined fixed charges and preferred stock dividend requirements | 5.5 | 1.8 | 3.2 | 6.1 | 3.7 | 4.4 | ||||||||||||||||||
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1. | On December 30, 2016 (“Conversion Date”), Dow’s Cumulative Convertible Perpetual Preferred Stock, Series A (“Preferred Stock”) was converted into shares of Dow’s common stock. From and after the Conversion Date, no shares of Preferred Stock are issued or outstanding and all rights of the holders of the Preferred Stock have terminated. |