EX-12.01 14 ex12_01.htm STATEMENT RE: COMPUTATION OF RATIOS OF EARNINGS (LOSS) TO FIXED CHARGES ex12_01.htm


EASTMAN CHEMICAL COMPANY AND SUBSIDIARIES
 
Computation of Ratios of Earnings to Fixed Charges
 
   
 
Third Quarter
First Nine Months
(Dollars in millions)
  
2007
  
2006
  
2007
  
2006
                 
Earnings before income taxes and cumulative effect of
                
changes in accounting principles
$
32
$
136
$
308
$
472
Add:
                
Interest expense
  
28
  
26
  
81
  
79
Appropriate portion of rental expense (1)
  
6
  
5
  
16
  
16
Amortization of capitalized interest
  
10
  
3
  
8
  
8
Earnings as adjusted
$
  76
$
 170
$
 413
$
 575
                 
Fixed charges:
                
Interest expense
$
28
$
26
$
81
$
79
Appropriate portion of rental expense (1)
  
6
  
5
  
16
  
16
Capitalized interest
  
--
  
--
  
8
  
6
Total fixed charges
$
  34
$
  31
$
 105
$
 101
                 
Ratio of earnings to fixed charges
  
2.2x
  
5.5x
  
3.9x
  
5.7x
                 
(1)  
For all periods presented, the interest component of rental expense is estimated to equal one-third of such expense.
 

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