EX-12.01 6 ratio.htm RATIO OF EARNINGS TO FIXED CHARGES Ratio of Earnings to Fixed Charges

EASTMAN CHEMICAL COMPANY AND SUBSIDIARIES
 
Computation of Ratios of Earnings to Fixed Charges
 
   
 
Third Quarter
First Nine Months
(Dollars in millions)
  
2005
  
2004
  
2005
  
2004
                 
Earnings before income taxes and cumulative effect of
               
changes in accounting principles
$
177
$
48
$
698
$
45
Add:
                
Interest expense
  
25
  
30
  
88
  
92
Appropriate portion of rental expense (1)
  
5
  
3
  
16
  
11
Amortization of capitalized interest
  
3
  
3
  
9
  
11
Earnings as adjusted
$
210
$
84
$
811
$
159
                 
Fixed charges:
                
Interest expense
$
25
$
30
$
88
$
92
Appropriate portion of rental expense (1)
  
5
  
3
  
16
  
11
Capitalized interest
  
1
  
1
  
5
  
3
Total fixed charges
$
31
$
34
$
109
$
106
                 
Ratio of earnings to fixed charges
  
6.8x
  
2.5x
  
7.4x
  
1.5x
                 
(1)  
For all periods presented, the interest component of rental expense is estimated to equal one-third of such expense.
 
 

87