EARNINGS AND DIVIDENDS PER SHARE

6 Months Ended

Jun. 30, 2017

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)	2017		2016		2017		2016
Numerator
Earnings attributable to Eastman:
Earnings, net of tax	$	292	$	255	$	570	$	506

Denominator
Weighted average shares used for basic EPS	145.3		147.8		145.7		147.8
Dilutive effect of stock options and other awards	1.1		1.1		1.1		1.1
Weighted average shares used for diluted EPS	146.4		148.9		146.8		148.9

(Calculated using whole dollars and shares)
EPS
Basic	$	2.01	$	1.73	$	3.91	$	3.43
Diluted	$	2.00	$	1.71	$	3.89	$	3.40

In second quarter and first six months 2017 options to purchase 850,970 and 1,008,667 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 2017 reflect the impact of share repurchases of 1,232,977 and 2,176,676, respectively.

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.

The Company declared cash dividends of $0.51 and $0.46 per share in second quarter 2017 and 2016, respectively, and $1.02 and $0.92 per share in first six months 2017 and 2016, respectively.