EX-12.01 6 emn20161231-ex1201.htm STATEMENT RE: 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
 
 
Year Ended December 31,
(Dollars in millions)
 
2016
 
2015
 
2014
 
2013
 
2012
Earnings before income taxes excluding noncontrolling interest
$
1,044

$
1,123

$
984

$
1,672

$
642

Add:
 
 
 
 
 
 
 
 
 
 
Interest expense
 
281

 
279

 
203

 
186

 
148

Appropriate portion of rental expense (1)
 
30

 
26

 
23

 
20

 
23

Amortization of capitalized interest
 
5

 
6

 
6

 
6

 
7

Earnings as adjusted
$
1,360

$
1,434

$
1,216

$
1,884

$
820

 
 
 
 
 
 
 
 
 
 
 
Fixed charges:
 
 
 
 
 
 
 
 
 
 
Interest expense
$
281

$
279

$
203

$
186

$
148

Appropriate portion of rental expense (1)
 
30

 
26

 
23

 
20

 
23

Capitalized interest
 
7

 
7

 
7

 
4

 
4

Total fixed charges
$
318

$
312

$
233

$
210

$
175

 
 
 
 
 
 
 
 
 
 
 
Ratio of earnings to fixed charges
 
4.3x

 
4.6x

 
5.2x

 
9.0x

 
4.7x


(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 years ended December 31, 2015, 2014, 2013, and 2012 has been revised to correct the amounts previously disclosed of $30 million, $27 million, $24 million, and $26 million, respectively, included in Exhibit 12.01 to the Company's 2015 Annual Report on Form 10-K.