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, 2012 | Mar 31, 2011 | 2011 | 2010 | 2009 | 2008 | 2007 | |||||||||||||||
Income from Continuing Operations Before Income Taxes | $ | 706 | $ | 841 | $ | 3,601 | $ | 2,802 | $ | 469 | $ | 1,277 | $ | 4,192 | ||||||||
Add (deduct): | ||||||||||||||||||||||
Equity in earnings of nonconsolidated affiliates | (169 | ) | (298 | ) | (1,223 | ) | (1,112 | ) | (630 | ) | (787 | ) | (1,122 | ) | ||||||||
Distributed income of earnings of nonconsolidated affiliates | 485 | 508 | 1,016 | 668 | 690 | 836 | 774 | |||||||||||||||
Capitalized interest | (25 | ) | (24 | ) | (90 | ) | (72 | ) | (61 | ) | (97 | ) | (85 | ) | ||||||||
Amortization of capitalized interest | 23 | 25 | 100 | 95 | 91 | 84 | 79 | |||||||||||||||
Preferred security dividends | — | — | — | — | (20 | ) | (63 | ) | (81 | ) | ||||||||||||
Adjusted earnings | $ | 1,020 | $ | 1,052 | $ | 3,404 | $ | 2,381 | $ | 539 | $ | 1,250 | $ | 3,757 | ||||||||
Fixed charges: | ||||||||||||||||||||||
Interest expense and amortization of debt discount | 329 | 377 | 1,341 | 1,473 | 1,571 | 648 | 584 | |||||||||||||||
Capitalized interest | 25 | 24 | 90 | 72 | 61 | 97 | 85 | |||||||||||||||
Preferred security dividends | — | — | — | — | 20 | 63 | 81 | |||||||||||||||
Rental expense – interest component | 28 | 23 | 112 | 95 | 107 | 120 | 124 | |||||||||||||||
Total fixed charges | $ | 382 | $ | 424 | $ | 1,543 | $ | 1,640 | $ | 1,759 | $ | 928 | $ | 874 | ||||||||
Earnings available for the payment of fixed charges | $ | 1,402 | $ | 1,476 | $ | 4,947 | $ | 4,021 | $ | 2,298 | $ | 2,178 | $ | 4,631 | ||||||||
Ratio of earnings to fixed charges | 3.7 | 3.5 | 3.2 | 2.5 | 1.3 | 2.3 | 5.3 | |||||||||||||||
Earnings required for combined fixed charges and preferred stock dividends: | ||||||||||||||||||||||
Preferred stock dividends | $ | 85 | $ | 85 | $ | 340 | $ | 340 | $ | 312 | $ | — | $ | — | ||||||||
Adjustment to pretax basis (at 35 percent) | 46 | 46 | 183 | 183 | 168 | — | — | |||||||||||||||
Preferred stock dividends - pretax | $ | 131 | $ | 131 | $ | 523 | $ | 523 | $ | 480 | $ | — | $ | — | ||||||||
Combined fixed charges and preferred stock dividend requirements | $ | 513 | $ | 555 | $ | 2,066 | $ | 2,163 | $ | 2,239 | $ | 928 | $ | 874 | ||||||||
Ratio of earnings to combined fixed charges and preferred stock dividend requirements | 2.7 | 2.7 | 2.4 | 1.9 | 1.0 | 2.3 | 5.3 |