EX-12.01 4 ex12_01.htm RATIO OF FIXED CHARGES ex12_01.htm
 
 
 


EASTMAN CHEMICAL COMPANY AND SUBSIDIARIES
 
Computation of Ratios of Earnings to Fixed Charges
 
     
     
Second Quarter
    
First Six Months
(Dollars in millions)
  
2009
  
2008
  
2009
  
2008
                 
Earnings from continuing operations before income taxes (1)
$
106
$
153
$
108
$
306
Add:
                
Interest expense
  
22
  
25
  
43
  
51
Appropriate portion of rental expense (2)
  
3
  
4
  
7
  
9
Amortization of capitalized interest
  
1
  
2
  
4
  
4
Earnings as adjusted
$
 132
$
 184
$
 162
$
 370
                 
Fixed charges:
                
Interest expense
$
22
$
25
$
43
$
51
Appropriate portion of rental expense (2)
  
3
  
4
  
7
  
9
Capitalized interest
  
3
  
4
  
14
  
9
Total fixed charges
$
  28
$
  33
$
  64
$
  69
                 
Ratio of earnings to fixed charges
  
4.7x
  
5.6x
  
2.5x
  
5.4x
                 
(1)  
Because the Company has exited the PET business in the European region, results related to sales of PET products manufactured at the Spain, the Netherlands, and United Kingdom sites are presented as discontinued operations for 2008.  For additional information, see Note 2, "Discontinued Operations", to the Company's unaudited consolidated financial statements in Part I, Item 1 of this quarterly report on Form 10-Q.
 
(2)  
For all periods presented, the interest component of rental expense is estimated to equal one-third of such expense.
 

 
 
 
52