| 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
| Six Months Ended | For the Years Ended December 31 | |||||||||||||||||||||
| In millions, except ratios (Unaudited) | Jun 30, 2013 | Jun 30, 2012 | 2012 | 2011 | 2010 | 2009 | 2008 | |||||||||||||||
Income from Continuing Operations Before Income Taxes | $ | 4,502 | $ | 1,690 | $ | 1,665 | $ | 3,601 | $ | 2,802 | $ | 469 | $ | 1,277 | ||||||||
| Add (deduct): | ||||||||||||||||||||||
| Equity in earnings of nonconsolidated affiliates | (458 | ) | (317 | ) | (536 | ) | (1,223 | ) | (1,112 | ) | (630 | ) | (787 | ) | ||||||||
Distributed income of earnings of nonconsolidated affiliates | 618 | 508 | 823 | 1,016 | 668 | 690 | 836 | |||||||||||||||
| Capitalized interest | (42 | ) | (45 | ) | (84 | ) | (90 | ) | (72 | ) | (61 | ) | (97 | ) | ||||||||
| Amortization of capitalized interest | 46 | 45 | 90 | 100 | 95 | 91 | 84 | |||||||||||||||
| Preferred security dividends | — | — | — | — | — | (20 | ) | (63 | ) | |||||||||||||
| Adjusted earnings | $ | 4,666 | $ | 1,881 | $ | 1,958 | $ | 3,404 | $ | 2,381 | $ | 539 | $ | 1,250 | ||||||||
| Fixed charges: | ||||||||||||||||||||||
Interest expense and amortization of debt discount | $ | 575 | $ | 641 | $ | 1,269 | $ | 1,341 | $ | 1,473 | $ | 1,571 | $ | 648 | ||||||||
| Capitalized interest | 42 | 45 | 84 | 90 | 72 | 61 | 97 | |||||||||||||||
| Preferred security dividends | — | — | — | — | — | 20 | 63 | |||||||||||||||
| Rental expense – interest component | 61 | 58 | 120 | 112 | 95 | 107 | 120 | |||||||||||||||
| Total fixed charges | $ | 678 | $ | 744 | $ | 1,473 | $ | 1,543 | $ | 1,640 | $ | 1,759 | $ | 928 | ||||||||
Earnings available for the payment of fixed charges | $ | 5,344 | $ | 2,625 | $ | 3,431 | $ | 4,947 | $ | 4,021 | $ | 2,298 | $ | 2,178 | ||||||||
| Ratio of earnings to fixed charges | 7.9 | 3.5 | 2.3 | 3.2 | 2.5 | 1.3 | 2.3 | |||||||||||||||
Earnings required for combined fixed charges and preferred stock dividends: | ||||||||||||||||||||||
| Preferred stock dividends | $ | 170 | $ | 170 | $ | 340 | $ | 340 | $ | 340 | $ | 312 | $ | — | ||||||||
| Adjustment to pretax basis (at 35 percent) | 92 | 92 | 183 | 183 | 183 | 168 | — | |||||||||||||||
| Preferred stock dividends - pretax | $ | 262 | $ | 262 | $ | 523 | $ | 523 | $ | 523 | $ | 480 | $ | — | ||||||||
Combined fixed charges and preferred stock dividend requirements | $ | 940 | $ | 1,006 | $ | 1,996 | $ | 2,066 | $ | 2,163 | $ | 2,239 | $ | 928 | ||||||||
Ratio of earnings to combined fixed charges and preferred stock dividend requirements | 5.7 | 2.6 | 1.7 | 2.4 | 1.9 | 1.0 | 2.3 | |||||||||||||||
72