EX-12.01 3 ex1201.htm EXHIBIT 12.01, 2ND QTR 2007 ex1201.htm
 
 


EASTMAN CHEMICAL COMPANY AND SUBSIDIARIES
 
Computation of Ratios of Earnings to Fixed Charges
 
   
 
Second Quarter
First Six Months
(Dollars in millions)
  
2007
  
2006
  
2007
  
2006
                 
Earnings before income taxes and cumulative effect of
                
changes in accounting principles
$
156
$
171
$
276
$
336
Add:
                
Interest expense
  
25
  
26
  
53
  
53
Appropriate portion of rental expense (1)
  
5
  
6
  
10
  
11
Amortization of capitalized interest
  
(5)
  
2
  
(3)
  
5
Earnings as adjusted
$
 181
$
 205
$
 336
$
 405
                 
Fixed charges:
                
Interest expense
$
25
$
26
$
53
$
53
Appropriate portion of rental expense (1)
  
5
  
6
  
10
  
11
Capitalized interest
  
4
  
1
  
8
  
6
Total fixed charges
$
  34
$
  33
$
  71
$
  70
                 
Ratio of earnings to fixed charges
  
5.3x
  
6.2x
  
4.7x
  
5.8x
                 
(1)  
For all periods presented, the interest component of rental expense is estimated to equal one-third of such expense.
 

 
 
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