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
Three Months Ended March 31 | For the Years Ended December 31 | |||||||||||||||||||||||||||
In millions, except ratio (Unaudited) | 2011 | 2010 | 2010 | 2009 | 2008 | 2007 | 2006 | |||||||||||||||||||||
Income from Continuing Operations Before Income Taxes | $ | 841 | $ | 655 | $ | 2,802 | $ | 469 | $ | 1,277 | $ | 4,192 | $ | 4,938 | ||||||||||||||
Add (deduct): | ||||||||||||||||||||||||||||
Equity in earnings of nonconsolidated affiliates | (298 | ) | (304 | ) | (1,112 | ) | (630 | ) | (787 | ) | (1,122 | ) | (959 | ) | ||||||||||||||
Distributed income of earnings of nonconsolidated affiliates | 508 | 292 | 668 | 690 | 836 | 774 | 616 | |||||||||||||||||||||
Capitalized interest | (24 | ) | (17 | ) | (72 | ) | (61 | ) | (97 | ) | (85 | ) | (73 | ) | ||||||||||||||
Amortization of capitalized interest | 25 | 24 | 95 | 91 | 84 | 79 | 70 | |||||||||||||||||||||
Preferred security dividends | - | - | - | (20 | ) | (63 | ) | (81 | ) | (77 | ) | |||||||||||||||||
Adjusted earnings | $ | 1,052 | $ | 650 | $ | 2,381 | $ | 539 | $ | 1,250 | $ | 3,757 | $ | 4,515 | ||||||||||||||
Fixed charges: | ||||||||||||||||||||||||||||
Interest expense and amortization of debt discount | 377 | 376 | 1,473 | 1,571 | 648 | 584 | 616 | |||||||||||||||||||||
Capitalized interest | 24 | 17 | 72 | 61 | 97 | 85 | 73 | |||||||||||||||||||||
Preferred security dividends | - | - | - | 20 | 63 | 81 | 77 | |||||||||||||||||||||
Rental expense – interest component | 23 | 25 | 95 | 107 | 120 | 124 | 131 | |||||||||||||||||||||
Total fixed charges | $ | 424 | $ | 418 | $ | 1,640 | $ | 1,759 | $ | 928 | $ | 874 | $ | 897 | ||||||||||||||
Earnings available for the payment of fixed charges | $ | 1,476 | $ | 1,068 | $ | 4,021 | $ | 2,298 | $ | 2,178 | $ | 4,631 | $ | 5,412 | ||||||||||||||
Ratio of earnings to fixed charges | 3.5 | 2.6 | 2.5 | 1.3 | 2.3 | 5.3 | 6.0 | |||||||||||||||||||||
Earnings required for combined fixed charges and preferred stock dividends: | ||||||||||||||||||||||||||||
Preferred stock dividends | $ | 85 | $ | 85 | $ | 340 | $ | 312 | - | - | - | |||||||||||||||||
Adjustment to pretax basis (at 35 percent) | 46 | 46 | 183 | 168 | - | - | - | |||||||||||||||||||||
$ | 131 | $ | 131 | $ | 523 | $ | 480 | $ | - | $ | - | $ | - | |||||||||||||||
Combined fixed charges and preferred stock dividend requirements | $ | 555 | $ | 549 | $ | 2,163 | $ | 2,239 | $ | 928 | $ | 874 | $ | 897 | ||||||||||||||
Ratio of earnings to combined fixed charges and preferred stock dividend requirements | 2.7 | 1.9 | 1.9 | 1.0 | 2.3 | 5.3 | 6.0 |
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