| 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
| Nine Months Ended | For the Years Ended December 31 | |||||||||||||||||||||
| In millions, except ratios (Unaudited) | Sep 30, 2012 | Sep 30, 2011 | 2011 | 2010 | 2009 | 2008 | 2007 | |||||||||||||||
Income from Continuing Operations Before Income Taxes | $ | 2,515 | $ | 3,247 | $ | 3,601 | $ | 2,802 | $ | 469 | $ | 1,277 | $ | 4,192 | ||||||||
| Add (deduct): | ||||||||||||||||||||||
| Equity in earnings of nonconsolidated affiliates | (492 | ) | (964 | ) | (1,223 | ) | (1,112 | ) | (630 | ) | (787 | ) | (1,122 | ) | ||||||||
Distributed income of earnings of nonconsolidated affiliates | 584 | 743 | 1,016 | 668 | 690 | 836 | 774 | |||||||||||||||
| Capitalized interest | (66 | ) | (75 | ) | (90 | ) | (72 | ) | (61 | ) | (97 | ) | (85 | ) | ||||||||
| Amortization of capitalized interest | 67 | 75 | 100 | 95 | 91 | 84 | 79 | |||||||||||||||
| Preferred security dividends | — | — | — | — | (20 | ) | (63 | ) | (81 | ) | ||||||||||||
| Adjusted earnings | $ | 2,608 | $ | 3,026 | $ | 3,404 | $ | 2,381 | $ | 539 | $ | 1,250 | $ | 3,757 | ||||||||
| Fixed charges: | ||||||||||||||||||||||
Interest expense and amortization of debt discount | $ | 959 | $ | 1,010 | $ | 1,341 | $ | 1,473 | $ | 1,571 | $ | 648 | $ | 584 | ||||||||
| Capitalized interest | 66 | 75 | 90 | 72 | 61 | 97 | 85 | |||||||||||||||
| Preferred security dividends | — | — | — | — | 20 | 63 | 81 | |||||||||||||||
| Rental expense – interest component | 87 | 82 | 112 | 95 | 107 | 120 | 124 | |||||||||||||||
| Total fixed charges | $ | 1,112 | $ | 1,167 | $ | 1,543 | $ | 1,640 | $ | 1,759 | $ | 928 | $ | 874 | ||||||||
Earnings available for the payment of fixed charges | $ | 3,720 | $ | 4,193 | $ | 4,947 | $ | 4,021 | $ | 2,298 | $ | 2,178 | $ | 4,631 | ||||||||
| Ratio of earnings to fixed charges | 3.3 | 3.6 | 3.2 | 2.5 | 1.3 | 2.3 | 5.3 | |||||||||||||||
Earnings required for combined fixed charges and preferred stock dividends: | ||||||||||||||||||||||
| Preferred stock dividends | $ | 255 | $ | 255 | $ | 340 | $ | 340 | $ | 312 | $ | — | $ | — | ||||||||
| Adjustment to pretax basis (at 35 percent) | 137 | 137 | 183 | 183 | 168 | — | — | |||||||||||||||
| Preferred stock dividends - pretax | $ | 392 | $ | 392 | $ | 523 | $ | 523 | $ | 480 | $ | — | $ | — | ||||||||
Combined fixed charges and preferred stock dividend requirements | $ | 1,504 | $ | 1,559 | $ | 2,066 | $ | 2,163 | $ | 2,239 | $ | 928 | $ | 874 | ||||||||
Ratio of earnings to combined fixed charges and preferred stock dividend requirements | 2.5 | 2.7 | 2.4 | 1.9 | 1.0 | 2.3 | 5.3 | |||||||||||||||