Dow Chemical 10-Q 2017 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, 2017			Jun 30, 2016			2016			2015			2014			2013			2012
Income Before Income Taxes	$	2,942		$	3,522		$	4,413		$	9,930		$	5,265		$	6,804		$	1,665
Add (deduct):
Equity in earnings of nonconsolidated affiliates	(250		)	(121		)	(442		)	(674		)	(835		)	(1,034		)	(536		)
Distributed income of earnings of     nonconsolidated affiliates	568			509			685			816			961			905			823
Capitalized interest	(138		)	(123		)	(243		)	(218		)	(125		)	(78		)	(84		)
Amortization of capitalized interest	48			41			83			78			83			91			90
Adjusted earnings	$	3,170		$	3,828		$	4,496		$	9,932		$	5,349		$	6,688		$	1,958
Fixed charges:
Interest expense and amortization of debt     discount	$	445		$	409		$	858		$	946		$	983		$	1,101		$	1,269
Capitalized interest	138			123			243			218			125			78			84
Rental expense – interest component	89			74			161			167			134			122			120
Total fixed charges	$	672		$	606		$	1,262		$	1,331		$	1,242		$	1,301		$	1,473
Earnings available for the payment of     fixed charges	$	3,842		$	4,434		$	5,758		$	11,263		$	6,591		$	7,989		$	3,431
Ratio of earnings to fixed charges	5.7			7.3			4.6			8.5			5.3			6.1			2.3
Earnings required for combined fixed     charges and preferred stock dividends (1):
Preferred stock dividends	$	—		$	170		$	340		$	340		$	340		$	340		$	340
Adjustment to pretax basis (at 35 percent)	—			92			183			183			183			183			183
Preferred stock dividends - pretax	$	—		$	262		$	523		$	523		$	523		$	523		$	523
Combined fixed charges and preferred stock     dividend requirements	$	672		$	868		$	1,785		$	1,854		$	1,765		$	1,824		$	1,996
Ratio of earnings to combined fixed charges     and preferred stock dividend requirements	5.7			5.1			3.2			6.1			3.7			4.4			1.7

(1) On December 30, 2016, all outstanding shares of the Company's Cumulative Convertible Perpetual Preferred Stock, Series A ("Preferred Stock") were converted into shares of the Company's common stock. As a result of this conversion, no shares of Preferred Stock are issued or outstanding.

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