| 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, 2014 | Sep 30, 2013 | 2013 | 2012 | 2011 | 2010 | 2009 | |||||||||||||||
Income from Continuing Operations Before Income Taxes | $ | 4,147 | $ | 5,418 | $ | 6,804 | $ | 1,665 | $ | 3,601 | $ | 2,802 | $ | 469 | ||||||||
| Add (deduct): | ||||||||||||||||||||||
| Equity in earnings of nonconsolidated affiliates | (707 | ) | (780 | ) | (1,034 | ) | (536 | ) | (1,223 | ) | (1,112 | ) | (630 | ) | ||||||||
Distributed income of earnings of nonconsolidated affiliates | 827 | 738 | 905 | 823 | 1,016 | 668 | 690 | |||||||||||||||
| Capitalized interest | (85 | ) | (61 | ) | (78 | ) | (84 | ) | (90 | ) | (72 | ) | (61 | ) | ||||||||
| Amortization of capitalized interest | 62 | 69 | 91 | 90 | 100 | 95 | 91 | |||||||||||||||
| Preferred security dividends | — | — | — | — | — | — | (20 | ) | ||||||||||||||
| Adjusted earnings | $ | 4,244 | $ | 5,384 | $ | 6,688 | $ | 1,958 | $ | 3,404 | $ | 2,381 | $ | 539 | ||||||||
| Fixed charges: | ||||||||||||||||||||||
Interest expense and amortization of debt discount | $ | 721 | $ | 839 | $ | 1,101 | $ | 1,269 | $ | 1,341 | $ | 1,473 | $ | 1,571 | ||||||||
| Capitalized interest | 85 | 61 | 78 | 84 | 90 | 72 | 61 | |||||||||||||||
| Preferred security dividends | — | — | — | — | — | — | 20 | |||||||||||||||
| Rental expense – interest component | 92 | 91 | 122 | 120 | 112 | 95 | 107 | |||||||||||||||
| Total fixed charges | $ | 898 | $ | 991 | $ | 1,301 | $ | 1,473 | $ | 1,543 | $ | 1,640 | $ | 1,759 | ||||||||
Earnings available for the payment of fixed charges | $ | 5,142 | $ | 6,375 | $ | 7,989 | $ | 3,431 | $ | 4,947 | $ | 4,021 | $ | 2,298 | ||||||||
| Ratio of earnings to fixed charges | 5.7 | 6.4 | 6.1 | 2.3 | 3.2 | 2.5 | 1.3 | |||||||||||||||
Earnings required for combined fixed charges and preferred stock dividends: | ||||||||||||||||||||||
| Preferred stock dividends | $ | 255 | $ | 255 | $ | 340 | $ | 340 | $ | 340 | $ | 340 | $ | 312 | ||||||||
| Adjustment to pretax basis (at 35 percent) | 137 | 137 | 183 | 183 | 183 | 183 | 168 | |||||||||||||||
| Preferred stock dividends - pretax | $ | 392 | $ | 392 | $ | 523 | $ | 523 | $ | 523 | $ | 523 | $ | 480 | ||||||||
Combined fixed charges and preferred stock dividend requirements | $ | 1,290 | $ | 1,383 | $ | 1,824 | $ | 1,996 | $ | 2,066 | $ | 2,163 | $ | 2,239 | ||||||||
Ratio of earnings to combined fixed charges and preferred stock dividend requirements | 4.0 | 4.6 | 4.4 | 1.7 | 2.4 | 1.9 | 1.0 | |||||||||||||||
59