EX-12.01 6 ex12_01.htm COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES Computation of Ratios of Earnings to Fixed Charges Form 10-Q


EASTMAN CHEMICAL COMPANY AND SUBSIDIARIES
 
Computation of Ratios of Earnings to Fixed Charges
 
   
 
Second Quarter
First Six Months
(Dollars in millions)
  
2006
  
2005
  
2006
  
2005
                 
Earnings before income taxes and cumulative effect of
               
changes in accounting principles
$
171
$
304
$
336
$
521
Add:
                
Interest expense
  
26
  
29
  
53
  
62
Appropriate portion of rental expense (1)
  
6
  
6
  
11
  
11
Amortization of capitalized interest
  
2
  
5
  
5
  
6
Earnings as adjusted
$
205
$
344
$
405
$
600
                 
Fixed charges:
                
Interest expense
$
26
$
29
$
53
$
62
Appropriate portion of rental expense (1)
  
6
  
6
  
11
  
11
Capitalized interest
  
1
  
3
  
6
  
4
Total fixed charges
$
33
$
38
$
70
$
77
                 
Ratio of earnings to fixed charges
  
6.2x
  
9.1x
  
5.8x
  
7.8x
                 
        (1)  
For all periods presented, the interest component of rental expense is estimated to equal one-third of such expense.
 
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