EX-12.01 6 emn20160930-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 September 30,
 
Nine Months Ended September 30,
(Dollars in millions)
 
2016
 
2015
 
2016
 
2015
Earnings before income taxes excluding noncontrolling interest
$
288

$
351

$
933

$
1,007

Add:
 
 
 
 
 
 
 
 
Interest expense
 
71

 
70

 
212

 
210

Appropriate portion of rental expense (1)
 
8

 
7

 
23

 
20

Amortization of capitalized interest
 
1

 
1

 
4

 
4

Earnings as adjusted
$
368

$
429

$
1,172

$
1,241

 
 
 
 
 
 
 
 
 
Fixed charges:
 
 
 
 
 
 
 
 
Interest expense
$
71

$
70

$
212

$
210

Appropriate portion of rental expense (1)
 
8

 
7

 
23

 
20

Capitalized interest
 
1

 
1

 
5

 
5

Total fixed charges
$
80

$
78

$
240

$
235

 
 
 
 
 
 
 
 
 
Ratio of earnings to fixed charges
 
4.6x

 
5.5x

 
4.9x

 
5.3x


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