EARNINGS AND DIVIDENDS PER SHARE

9 Months Ended

Sep. 30, 2016

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



	Third Quarter				First Nine Months
(In millions, except per share amounts)	2016		2015		2016		2015
Numerator
Earnings attributable to Eastman:
Earnings, net of tax	$	232	$	256	$	738	$	724

Denominator
Weighted average shares used for basic EPS	147.2		148.6		147.6		148.6
Dilutive effect of stock options and other awards	1.0		1.2		1.0		1.2
Weighted average shares used for diluted EPS	148.2		149.8		148.6		149.8

(Calculated using whole dollars and shares)
EPS
Basic	$	1.57	$	1.73	$	5.00	$	4.87
Diluted	$	1.56	$	1.71	$	4.96	$	4.83

In third quarter and first nine months 2016, options to purchase 1,437,767 and 1,076,143 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. Third quarter and first nine months 2016 reflect the impact of share repurchases of 1,128,869 and 1,760,940, respectively.

In third quarter and first nine months 2015, options to purchase 773,643 and 264,043 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. Third quarter and first nine months 2015 reflect the impact of share repurchases of 221,578 and 656,578, respectively.

The Company declared cash dividends of $0.46 and $0.40 per share in third quarter 2016 and 2015, respectively, and $1.38 and $1.20 per share in first nine months 2016 and 2015, respectively.