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 September 30 | For the Year Ended December 31 | |||||||||||||||||||||||||||
In millions, except ratio (Unaudited) | 2010 | 2009 | 2009 | 2008 | 2007 | 2006 | 2005 | |||||||||||||||||||||
Income from Continuing Operations Before Income Taxes | $ | 2,156 | $ | 319 | $ | 469 | $ | 1,277 | $ | 4,192 | $ | 4,938 | $ | 6,363 | ||||||||||||||
Add (deduct): | ||||||||||||||||||||||||||||
Equity in earnings of nonconsolidated affiliates | (799 | ) | (411 | ) | (630 | ) | (787 | ) | (1,122 | ) | (959 | ) | (964 | ) | ||||||||||||||
Distributed income of earnings of nonconsolidated affiliates | 558 | 671 | 690 | 836 | 774 | 616 | 495 | |||||||||||||||||||||
Capitalized interest | (48 | ) | (51 | ) | (61 | ) | (97 | ) | (85 | ) | (73 | ) | (56 | ) | ||||||||||||||
Amortization of capitalized interest | 71 | 68 | 91 | 84 | 79 | 70 | 70 | |||||||||||||||||||||
Preferred security dividends | - | (20 | ) | (20 | ) | (63 | ) | (81 | ) | (77 | ) | (65 | ) | |||||||||||||||
Adjusted earnings | $ | 1,938 | $ | 576 | $ | 539 | $ | 1,250 | $ | 3,757 | $ | 4,515 | $ | 5,843 | ||||||||||||||
Fixed charges: | ||||||||||||||||||||||||||||
Interest expense and amortization of debt discount | 1,105 | 1,167 | 1,571 | 648 | 584 | 616 | 702 | |||||||||||||||||||||
Capitalized interest | 48 | 51 | 61 | 97 | 85 | 73 | 56 | |||||||||||||||||||||
Preferred security dividends | - | 20 | 20 | 63 | 81 | 77 | 65 | |||||||||||||||||||||
Rental expense – interest component | 71 | 82 | 107 | 120 | 124 | 131 | 133 | |||||||||||||||||||||
Total fixed charges | $ | 1,224 | $ | 1,320 | $ | 1,759 | $ | 928 | $ | 874 | $ | 897 | $ | 956 | ||||||||||||||
Earnings available for the payment of fixed charges | $ | 3,162 | $ | 1,896 | $ | 2,298 | $ | 2,178 | $ | 4,631 | $ | 5,412 | $ | 6,799 | ||||||||||||||
Ratio of earnings to fixed charges | 2.6 | 1.4 | 1.3 | 2.3 | 5.3 | 6.0 | 7.1 | |||||||||||||||||||||
Earnings required for combined fixed charges and preferred stock dividends: | ||||||||||||||||||||||||||||
Preferred stock dividends | $ | 255 | 227 | 312 | - | - | - | - | ||||||||||||||||||||
Adjustment to pretax basis (at 35 percent) | 137 | 122 | 168 | - | - | - | - | |||||||||||||||||||||
$ | 392 | $ | 349 | $ | 480 | $ | - | $ | - | $ | - | $ | - | |||||||||||||||
Combined fixed charges and preferred stock dividend requirements | $ | 1,616 | $ | 1,669 | $ | 2,239 | $ | 928 | $ | 874 | $ | 897 | $ | 956 | ||||||||||||||
Ratio of earnings to combined fixed charges and preferred stock dividend requirements | 2.0 | 1.1 | 1.0 | 2.3 | 5.3 | 6.0 | 7.1 |
86