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
For the Years Ended December 31 | ||||||||||||||||||||
In millions, except ratio (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 | |||||||||||||||
Income from Continuing Operations Before Income Taxes | $ | 2,802 | $ | 469 | $ | 1,277 | $ | 4,192 | $ | 4,938 | ||||||||||
Add (deduct): | ||||||||||||||||||||
Equity in earnings of nonconsolidated affiliates | (1,112 | ) | (630 | ) | (787 | ) | (1,122 | ) | (959 | ) | ||||||||||
Distributed income of earnings of nonconsolidated affiliates | 668 | 690 | 836 | 774 | 616 | |||||||||||||||
Capitalized interest | (72 | ) | (61 | ) | (97 | ) | (85 | ) | (73 | ) | ||||||||||
Amortization of capitalized interest | 95 | 91 | 84 | 79 | 70 | |||||||||||||||
Preferred security dividends | - | (20 | ) | (63 | ) | (81 | ) | (77 | ) | |||||||||||
Adjusted earnings | $ | 2,381 | $ | 539 | $ | 1,250 | $ | 3,757 | $ | 4,515 | ||||||||||
Fixed charges: | ||||||||||||||||||||
Interest expense and amortization of debt discount | 1,473 | 1,571 | 648 | 584 | 616 | |||||||||||||||
Capitalized interest | 72 | 61 | 97 | 85 | 73 | |||||||||||||||
Preferred security dividends | - | 20 | 63 | 81 | 77 | |||||||||||||||
Rental expense – interest component | 95 | 107 | 120 | 124 | 131 | |||||||||||||||
Total fixed charges | $ | 1,640 | $ | 1,759 | $ | 928 | $ | 874 | $ | 897 | ||||||||||
Earnings available for the payment of fixed charges | $ | 4,021 | $ | 2,298 | $ | 2,178 | $ | 4,631 | $ | 5,412 | ||||||||||
Ratio of earnings to fixed charges | 2.5 | 1.3 | 2.3 | 5.3 | 6.0 | |||||||||||||||
Earnings required for combined fixed charges and preferred stock dividends: | ||||||||||||||||||||
Preferred stock dividends | $ | 340 | $ | 312 | - | - | - | |||||||||||||
Adjustment to pretax basis (at 35 percent) | 183 | 168 | - | - | - | |||||||||||||||
Preferred stock dividends - pretax | $ | 523 | $ | 480 | - | - | - | |||||||||||||
Combined fixed charges and preferred stock dividend requirements | $ | 2,163 | $ | 2,239 | $ | 928 | $ | 874 | $ | 897 | ||||||||||
Ratio of earnings to combined fixed charges and preferred stock dividend requirements | 1.9 | 1.0 | 2.3 | 5.3 | 6.0 |
175