EX-12.01 3 emn20180930ex1201.htm COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES
Exhibit 12.01
EASTMAN CHEMICAL COMPANY AND SUBSIDIARIES
Computation of Ratios of Earnings to Fixed Charges

|  | Three Months Ended |  | Nine Months Ended
|  | September 30, |  | September 30,
(Dollars in millions) |  | 2018 |  | 2017 |  | 2018 |  | 2017
Earnings before income taxes excluding noncontrolling interest | $ | 458 |  | $ | 402 |  | $ | 1,236 |  | $ | 1,099 |
Add: |  |  |  |  |  |  |  |
Interest expense |  | 58 |  |  | 62 |  |  | 181 |  |  | 184 |
Appropriate portion of rental expense (1) |  | 7 |  |  | 7 |  |  | 23 |  |  | 22 |
Amortization of capitalized interest |  | 2 |  |  | 1 |  |  | 4 |  |  | 3 |
Earnings as adjusted | $ | 525 |  | $ | 472 |  | $ | 1,444 |  | $ | 1,308 |
Fixed charges: |  |  |  |  |  |  |  |
Interest expense | $ | 58 |  | $ | 62 |  | $ | 181 |  | $ | 184 |
Appropriate portion of rental expense (1) |  | 7 |  |  | 7 |  |  | 23 |  |  | 22 |
Capitalized interest |  | 1 |  |  | 1 |  |  | 3 |  |  | 5 |
Total fixed charges | $ | 66 |  | $ | 70 |  | $ | 207 |  | $ | 211 |
Ratio of earnings to fixed charges |  | 8.0x |  |  | 6.7x |  |  | 7.0x |  |  | 6.2x |

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