EX-12.01 3 ex12_01.htm EXHIBIT 12.01 ex12_01.htm
 
 
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EASTMAN CHEMICAL COMPANY AND SUBSIDIARIES
 
Computation of Ratios of Earnings to Fixed Charges
 
 
                      Second Quarter
                              First Six Months
  
(Dollars in millions)
  
2008
  
2007
  
2008
  
2007
                 
Earnings from continuing operations before income taxes (1)
$
153
$
151
$
306
$
291
Add:
                
Interest expense
  
25
  
25
  
51
  
53
Appropriate portion of rental expense (2)
  
4
  
5
  
9
  
10
Amortization of capitalized interest
  
2
  
(5)
  
4
  
(3)
Earnings as adjusted
$
 184
$
 176
$
 370
$
 351
                 
Fixed charges:
                
Interest expense
$
25
$
25
$
51
$
53
Appropriate portion of rental expense (2)
  
4
  
5
  
9
  
10
Capitalized interest
  
4
  
4
  
9
  
8
Total fixed charges
$
  33
$
  34
$
  69
$
  71
                 
Ratio of earnings to fixed charges
  
5.6x
  
5.2x
  
5.4x
  
4.9x
                 
(1) 
Because the Company has exited the PET business in the European region, results related to sales of PET products manufactured at the Spain, the Netherlands, and United Kingdom sites are presented as discontinued operations for all periods presented.  For additional information, see Note 2, "Discontinued Operations", to the Company's unaudited consolidated financial statements in Part I, Item 1 of this quarterly report on Form 10-Q.
 
(2) 
For all periods presented, the interest component of rental expense is estimated to equal one-third of such expense.
 

 
53