EX-12.01 5 emn20160630-ex1201.htm COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES Exhibit


Exhibit 12.01

EASTMAN CHEMICAL COMPANY AND SUBSIDIARIES
Computation of Ratios of Earnings to Fixed Charges
 
 
Three Months Ended June 30,
 
Six Months Ended June 30,
(Dollars in millions)
 
2016
 
2015
 
2016
 
2015
Earnings before income taxes excluding noncontrolling interest
$
322

$
401

$
645

$
656

Add:
 
 
 
 
 
 
 
 
Interest expense
 
71

 
70

 
141

 
140

Appropriate portion of rental expense (1)
 
7

 
6

 
15

 
13

Amortization of capitalized interest
 
2

 
2

 
3

 
3

Earnings as adjusted
$
402

$
479

$
804

$
812

 
 
 
 
 
 
 
 
 
Fixed charges:
 
 
 
 
 
 
 
 
Interest expense
$
71

$
70

$
141

$
140

Appropriate portion of rental expense (1)
 
7

 
6

 
15

 
13

Capitalized interest
 
2

 
2

 
4

 
4

Total fixed charges
$
80

$
78

$
160

$
157

 
 
 
 
 
 
 
 
 
Ratio of earnings to fixed charges
 
5.0x

 
6.1x

 
5.0x

 
5.2x


(1) 
For all periods presented, the interest component of rental expense is estimated to equal one-third of such expense.