EARNINGS AND DIVIDENDS PER SHARE

3 Months Ended

Mar. 31, 2022

The following table sets forth the computation of basic and diluted earnings per share ("EPS") which are calculated using the treasury stock method:


	First Quarter
(In millions, except per share amounts)	2022		2021
Numerator
Earnings attributable to Eastman, net of tax	$	235	$	274



Denominator
Weighted average shares used for basic EPS	129.0		136.1
Dilutive effect of stock options and other awards	1.7		1.5
Weighted average shares used for diluted EPS	130.7		137.6

(Calculated using whole dollars and shares)
EPS
Basic	$	1.82	$	2.01
Diluted	$	1.80	$	1.99

Shares underlying stock options excluded from first quarter 2022 and 2021 calculations of diluted EPS were 507,692 and 327,782, respectively, because the grant date exercise price of these options was greater than the average market price of the Company's common stock and the effect of including them in the calculation of diluted EPS would have been antidilutive. First quarter 2022 reflects 548,035 shares delivered as part of the accelerated share repurchase program ("ASR") the Company entered into in fourth quarter 2021. There were 354,795 share repurchases in first quarter 2021.

The Company declared cash dividends of $0.76 and $0.69 per share for first quarter 2022 and 2021, respectively.

In December 2021, the Company's Board of Directors authorized the additional repurchase of up to $2.5 billion of the Company's outstanding common stock at such time, in such amounts, and on such terms, as determined by management to be in the best interest of the Company and its stockholders (the "2021 authorization"). No shares have been repurchased under the 2021 authorization.