EX-12.01 9 emn12312014-ex1201.htm STATEMENT RE: COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES EMN 12.31.2014-Ex 12.01


EXHIBIT 12.01

EASTMAN CHEMICAL COMPANY AND SUBSIDIARIES
Computation of Ratios of Earnings to Fixed Charges
 
 
 
 
 
 
 
 
 
(Dollars in millions)
 
2014
 
2013
 
2012
 
2011
 
2010
Earnings from continuing operations before income taxes
$
984

$
1,672

$
642

$
880

$
618

Add:
 
 
 
 
 
 
 
 
 
 
Interest expense
 
203

 
186

 
148

 
83

 
105

Appropriate portion of rental expense (2)
 
27

 
24

 
26

 
17

 
14

Amortization of capitalized interest
 
6

 
6

 
7

 
7

 
7

Earnings as adjusted
$
1,220

$
1,888

$
823

$
987

$
744

 
 
 
 
 
 
 
 
 
 
 
Fixed charges:
 
 
 
 
 
 
 
 
 
 
Interest expense
$
203

$
186

$
148

$
83

$
105

Appropriate portion of rental expense (2)
 
27

 
24

 
26

 
17

 
14

Capitalized interest
 
7

 
4

 
4

 
9

 
3

Total fixed charges
$
237

$
214

$
178

$
109

$
122

 
 
 
 
 
 
 
 
 
 
 
Ratio of earnings to fixed charges
 
5.1x

 
8.8x

 
4.6x

 
9.1x

 
6.1x


(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.
(2) 
For all periods presented, the interest component of rental expense is estimated to equal one-third of such expense.


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