EARNINGS AND DIVIDENDS PER SHARE

9 Months Ended

Sep. 30, 2015

The following table sets forth the computation of basic and diluted earnings per share ("EPS") from continuing operations:



	Third Quarter				First Nine Months
	2015		2014		2015		2014
(In millions, except per share amounts)
Numerator
Earnings attributable to Eastman:
Earnings from continuing operations, net of tax	$	256	$	210	$	724	$	733

Denominator
Weighted average shares used for basic EPS	148.6		148.7		148.6		149.8
Dilutive effect of stock options and other awards	1.2		1.6		1.2		1.7
Weighted average shares used for diluted EPS	149.8		150.3		149.8		151.5

EPS from continuing operations ⁽¹⁾
Basic	$	1.73	$	1.41	$	4.87	$	4.89
Diluted	$	1.71	$	1.39	$	4.83	$	4.83


⁽¹⁾	Earnings per share are calculated using whole dollars and shares.

In third quarter and first nine months 2015, common shares underlying options to purchase 773,643 and 264,043 shares, respectively, of common stock were excluded from the shares treated as outstanding for computation of diluted earnings per share because the total market value of option exercises for these awards was less than the total cash proceeds that would be received for these exercises. Third quarter and first nine months 2015 reflect the impact of share repurchases of 221,578 and 656,578, respectively.

In both third quarter and first nine months 2014, common shares underlying options to purchase 210,143 shares of common stock were excluded from the shares treated as outstanding for computation of diluted earnings per share because the total market value of option exercises for these awards was less than the total cash proceeds that would be received for these exercises. Third quarter and first nine months 2014 reflect the impact of share repurchases of 618,896 and 4,945,452 shares, respectively.

The Company declared cash dividends of $0.40 and $0.35 per share in third quarter 2015 and 2014, respectively, and $1.20 and $1.05 per share in first nine months 2015 and 2014, respectively.