EX-12.01 3 emn20180930ex1201.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
 
Nine Months Ended
 
 
September 30,
 
September 30,
(Dollars in millions)
 
2018
 
2017
 
2018
 
2017
Earnings before income taxes excluding noncontrolling interest
$
458

$
402

$
1,236

$
1,099

Add:
 
 
 
 
 
 
 
 
Interest expense
 
58

 
62

 
181

 
184

Appropriate portion of rental expense (1)
 
7

 
7

 
23

 
22

Amortization of capitalized interest
 
2

 
1

 
4

 
3

Earnings as adjusted
$
525

$
472

$
1,444

$
1,308

 
 
 
 
 
 
 
 
 
Fixed charges:
 
 
 
 
 
 
 
 
Interest expense
$
58

$
62

$
181

$
184

Appropriate portion of rental expense (1)
 
7

 
7

 
23

 
22

Capitalized interest
 
1

 
1

 
3

 
5

Total fixed charges
$
66

$
70

$
207

$
211

 
 
 
 
 
 
 
 
 
Ratio of earnings to fixed charges
 
8.0x

 
6.7x

 
7.0x

 
6.2x


(1) 
For all periods presented, the interest component of rental expense is estimated to equal one-third of such expense.