EX-12.01 3 emn20170331ex1201.htm COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES Exhibit


Exhibit 12.01

EASTMAN CHEMICAL COMPANY AND SUBSIDIARIES
Computation of Ratios of Earnings to Fixed Charges
 
 
Three Months Ended March 31,
(Dollars in millions)
 
2017
 
2016
Earnings before income taxes excluding noncontrolling interest
 
$
340

 
$
323

Add:
 
 
 
 
Interest expense
 
66

 
70

Appropriate portion of rental expense (1)
 
7

 
7

Amortization of capitalized interest
 
1

 
1

Earnings as adjusted
 
$
414

 
$
401

 
 
 
 
 
Fixed charges:
 
 
 
 
Interest expense
 
$
66

 
$
70

Appropriate portion of rental expense (1)
 
7

 
7

Capitalized interest
 
2

 
2

Total fixed charges
 
$
75

 
$
79

 
 
 
 
 
Ratio of earnings to fixed charges
 
5.5x

 
5.1x


(1) 
For all periods presented, the interest component of rental expense is estimated to equal one-third of such expense. The appropriate portion of rental expense disclosed above for the three months ended March 31, 2016 has been revised to correct the amounts previously disclosed of $8 million included in Exhibit 12.01 to the Company's 2016 Quarterly Report on Form 10-Q.