Total Debt (Carrying Amount)

Dow Chemical Co., Statement of Financial Position, Debt

USD $ in millions

 
Dec 31, 2013 Dec 31, 2012 Dec 31, 2011 Dec 31, 2010 Dec 31, 2009
Notes payable 443  396  541  1,467  2,139 
Long-term debt due within one year 697  672  2,749  1,755  1,082 
Long-term debt, excluding debt due within one year 16,820  19,919  18,310  20,605  19,152 
Total debt (carrying amount) 17,960  20,987  21,600  23,827  22,373 

Source: Based on data from Dow Chemical Co., Annual Reports

Item Description The company
Total debt (carrying amount) Sum of the carrying values as of the balance sheet date of all debt plus capital lease obligations. Dow Chemical Co.'s total debt declined from 2011 to 2012 and from 2012 to 2013.

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Total Debt (Fair Value)

 
Dec 31, 2013
Selected Financial Data (USD $ in millions)
Notes payable 443 
Long-term debt including debt due within one year 19,467 
Total debt (fair value) 19,910 
Ratio
Debt, fair value to carrying amount 1.11

Source: Based on data from Dow Chemical Co., Annual Reports

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Weighted-average Interest Rate on Debt

Interest rate on debt: 5.24%

Interest Rate Debt Amount1 Interest Rate × Debt Amount Weighted-average Interest Rate2
3.23% 443  14 
5.33% 399  21 
2.89% 56 
2.53% 805  20 
5.65% 491  28 
5.43% 570  31 
5.94% 12,200  725 
1.44% 490 
3.18% 1,140  36 
3.76% 1,143  43 
5.59% 518  29 
Total 18,255  956  5.24%

Source: Based on data from Dow Chemical Co., Annual Reports

1 USD $ in millions

2 Weighted-average interest rate = 100 × 956 ÷ 18,255 = 5.24%

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Interest Costs Incurred

Dow Chemical Co.

USD $ in millions

 
12 months ended Dec 31, 2013 Dec 31, 2012 Dec 31, 2011 Dec 31, 2010 Dec 31, 2009
Interest expense and amortization of debt discount 1,101  1,269  1,341  1,473  1,571 
Capitalized interest 78  84  90  72  61 
Interest costs incurred 1,179  1,353  1,431  1,545  1,632 

Source: Based on data from Dow Chemical Co., Annual Reports

Item Description The company
Interest expense and amortization of debt discount Represents the portion of interest incurred in the period on debt arrangements that was charged against earnings. Dow Chemical Co.'s interest expense and amortization of debt discount declined from 2011 to 2012 and from 2012 to 2013.
Capitalized interest The amount of interest that was capitalized during the period. Dow Chemical Co.'s capitalized interest declined from 2011 to 2012 and from 2012 to 2013.
Interest costs incurred Total interest costs incurred during the period and either capitalized or charged against earnings. Dow Chemical Co.'s interest costs incurred declined from 2011 to 2012 and from 2012 to 2013.

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Adjusted Interest Coverage Ratio

 
Dec 31, 2013 Dec 31, 2012 Dec 31, 2011 Dec 31, 2010 Dec 31, 2009
Selected Financial Data (USD $ in millions)
Net income attributable to The Dow Chemical Company 4,787  1,182  2,742  2,310  648 
Add: Net (income) loss attributable to noncontrolling interests 29  (82) 42  11  28 
Add: Interest expense and amortization of debt discount 1,101  1,269  1,341  1,473  1,571 
Add: Income tax expense (benefit) 1,988  565  817  481  (97)
Earnings before interest and tax (EBIT) 7,905  2,934  4,942  4,275  2,150 
Interest costs incurred 1,179  1,353  1,431  1,545  1,632 
Ratio With and Without Capitalized Interest
Interest coverage ratio (excluding capitalized interest)1 7.18 2.31 3.69 2.90 1.37
Adjusted interest coverage ratio (including capitalized interest)2 6.70 2.17 3.45 2.77 1.32

2013 Calculations

1 Interest coverage ratio (excluding capitalized interest) = EBIT ÷ Interest expense and amortization of debt discount
= 7,905 ÷ 1,101 = 7.18

2 Adjusted interest coverage ratio (including capitalized interest) = EBIT ÷ Interest costs incurred
= 7,905 ÷ 1,179 = 6.70

Ratio Description The company
Adjusted interest coverage ratio A solvency ratio calculated as EBIT divided by interest payments (including capitalized interest). Dow Chemical Co.'s adjusted interest coverage ratio deteriorated from 2011 to 2012 but then improved from 2012 to 2013 exceeding 2011 level.

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