EX-12.01 3 exhibit12_01.htm STATEMENT RE: COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES exhibit12_01.htm

EXHIBIT 12.01

 
EASTMAN CHEMICAL COMPANY AND SUBSIDIARIES
 
Computation of Ratios of Earnings to Fixed Charges
 
 
          First Quarter
(Dollars in millions)
  
2010
  
2009
         
Earnings before income taxes
$
151
$
2
Add:
        
Interest expense
  
26
  
21
Appropriate portion of rental expense (1)
  
3
  
4
Amortization of capitalized interest
  
1
  
3
Earnings as adjusted
$
 181
$
  30
         
Fixed charges:
        
Interest expense
  
26
  
21
Appropriate portion of rental expense (1)
  
3
  
4
Capitalized interest
  
2
  
11
Total fixed charges
$
  31
$
  36
         
Ratio of earnings to fixed charges
  
5.8x
  
(A)
         
(1)  
For all periods presented, the interest component of rental expense is estimated to equal one-third of such expense.
 
(A)  
Due to decreased earnings reported for first quarter 2009, the coverage ratio is less than 1x.  To achieve a coverage ratio of 1x, additional pre-tax earnings of $6 million would have been required for first quarter 2009.
 

 

 
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