Dow Chemical 10-Q 2014 Q2 Quarterly report

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, 2014			Jun 30, 2013				2013			2012			2011			2010			2009
Income from Continuing Operations Before     Income Taxes	$	2,805		$	4,502			$	6,804		$	1,665		$	3,601		$	2,802		$	469
Add (deduct):
Equity in earnings of nonconsolidated affiliates	(478		)	(458		)		(1,034		)	(536		)	(1,223		)	(1,112		)	(630		)
Distributed income of earnings of     nonconsolidated affiliates	791			618				905			823			1,016			668			690
Capitalized interest	(52		)	(42		)		(78		)	(84		)	(90		)	(72		)	(61		)
Amortization of capitalized interest	42			46				91			90			100			95			91
Preferred security dividends	—			—				—			—			—			—			(20		)
Adjusted earnings	$	3,108		$	4,666			$	6,688		$	1,958		$	3,404		$	2,381		$	539
Fixed charges:
Interest expense and amortization of debt     discount	$	488		$	575			$	1,101		$	1,269		$	1,341		$	1,473		$	1,571
Capitalized interest	52			42				78			84			90			72			61
Preferred security dividends	—			—			��	—			—			—			—			20
Rental expense – interest component	61			61				122			120			112			95			107
Total fixed charges	$	601		$	678			$	1,301		$	1,473		$	1,543		$	1,640		$	1,759
Earnings available for the payment of     fixed charges	$	3,709		$	5,344			$	7,989		$	3,431		$	4,947		$	4,021		$	2,298
Ratio of earnings to fixed charges	6.2			7.9				6.1			2.3			3.2			2.5			1.3
Earnings required for combined fixed     charges and preferred stock dividends:
Preferred stock dividends	$	170		$	170			$	340		$	340		$	340		$	340		$	312
Adjustment to pretax basis (at 35 percent)	92			92				183			183			183			183			168
Preferred stock dividends - pretax	$	262		$	262			$	523		$	523		$	523		$	523		$	480
Combined fixed charges and preferred stock     dividend requirements	$	863		$	940			$	1,824		$	1,996		$	2,066		$	2,163		$	2,239
Ratio of earnings to combined fixed charges     and preferred stock dividend requirements	4.3			5.7				4.4			1.7			2.4			1.9			1.0

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