EARNINGS AND DIVIDENDS PER SHARE

9 Months Ended

Sep. 30, 2017

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)	2017		2016		2017		2016
Numerator
Earnings attributable to Eastman, net of tax	$	323	$	232	$	893	$	738

Denominator
Weighted average shares used for basic EPS	144.3		147.2		145.2		147.6
Dilutive effect of stock options and other awards	1.2		1.0		1.3		1.0
Weighted average shares used for diluted EPS	145.5		148.2		146.5		148.6

(Calculated using whole dollars and shares)
EPS
Basic	$	2.24	$	1.57	$	6.15	$	5.00
Diluted	$	2.22	$	1.56	$	6.10	$	4.96

In third quarter and first nine months 2017, options to purchase 727,111 and 781,011 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 2017 reflect the impact of share repurchases of 1,184,107 and 3,360,783, respectively.

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.

The Company declared cash dividends of $0.51 and $0.46 per share in third quarter 2017 and 2016, respectively, and $1.53 and $1.38 per share in first nine months 2017 and 2016, respectively.