EARNINGS AND DIVIDENDS PER SHARE

6 Months Ended

Jun. 30, 2016

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



	Second Quarter				First Six Months
(In millions, except per share amounts)	2016		2015		2016		2015
Numerator
Earnings attributable to Eastman:
Earnings, net of tax	$	255	$	297	$	506	$	468

Denominator
Weighted average shares used for basic EPS	147.8		148.6		147.8		148.6
Dilutive effect of stock options and other awards	1.1		1.2		1.1		1.2
Weighted average shares used for diluted EPS	148.9		149.8		148.9		149.8

EPS ⁽¹⁾
Basic	$	1.73	$	2.00	$	3.43	$	3.15
Diluted	$	1.71	$	1.98	$	3.40	$	3.12


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

In second quarter and first six months 2016, options to purchase 1,056,961 and 1,076,935 shares of common stock, respectively, 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. Second quarter and first six months 2016 reflect the impact of share repurchases of 344,790 and 632,071, respectively.

In second quarter and first six months 2015, options to purchase 619,418 and 272,143 shares of common stock, respectively, 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. Second quarter and first six months 2015 reflect the impact of share repurchases of 65,000 and 435,000, respectively.

The Company declared cash dividends of $0.46 and $0.40 per share in second quarter 2016 and 2015, respectively, and $0.92 and $0.80 per share in first six months 2016 and 2015, respectively.