EX-12.01 6 ex-12_01.htm STATEMENT RE: COMUTATION OF RATIOS OF EARNINGS (LOSS) TO FIXED CHARGES ex-12_01.htm
 
 
 

EXHIBIT 12.01

EASTMAN CHEMICAL COMPANY AND SUBSIDIARIES

Computation of Ratios of Earnings to Fixed Charges (1)


(Dollars in millions)
 
2010
 
2009
 
2008
 
2007
 
2006
                     
Earnings from continuing operations before income taxes
$
636
$
254
$
461
$
649
$
492
Add:
                   
Interest expense
 
105
 
85
 
95
 
107
 
105
Appropriate portion of rental expense (2)
 
14
 
12
 
14
 
17
 
20
Amortization of capitalized interest
 
7
 
8
 
7
 
8
 
10
Earnings as adjusted
$
762
$
359
$
577
$
781
$
627
                     
Fixed charges:
                   
Interest expense
$
105
$
85
$
95
$
107
$
105
Appropriate portion of rental expense (2)
 
14
 
12
 
14
 
17
 
20
Capitalized interest
 
3
 
14
 
9
 
8
 
4
Total fixed charges
$
122
$
111
$
118
$
132
$
129
                     
Ratio of earnings to fixed charges
 
6.2x
 
3.2x
 
4.9x
 
5.9x
 
4.9x
                     
(1)  
The Company completed the sale of the polyethylene terephthalate ("PET") business, related assets at the Columbia, South Carolina, site, and technology of its Performance Polymers segment on January 31, 2011. The PET business, assets, and technology sold were substantially all of the Performance Polymers segment.  Performance Polymers segment operating results are presented as discontinued operations for all periods presented.  For additional information, see Note 2, "Discontinued Operations and Assets Held for Sale" and Note 26, "Subsequent Events" to the Company's consolidated financial statements in Part II, Item 8 of this 2010 Annual Report on Form 10-K.
 
(2)  
For all periods presented, the interest component of rental expense is estimated to equal one-third of such expense.
 

 
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