EX-12.01 7 g80935exv12w01.txt COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES . . . EXHIBIT 12.01 EASTMAN CHEMICAL COMPANY AND SUBSIDIARIES COMPUTATION OF RATIOS OF EARNINGS (LOSS) TO FIXED CHARGES
(Dollars in millions) 2002 2001 2000 1999 1998 Earnings (loss) before income taxes and cumulative effect of change in accounting principle $ 84 $ (291) $ 452 $ 72 $ 360 Add: Interest expense 128 146 142 126 96 Appropriate portion of rental expense (1) 28 28 28 28 28 Amortization of capitalized interest 13 15 15 16 16 ----- ------ ------ ---- ------ Earnings (loss) as adjusted $ 253 $ (102) $ 637 $ 242 $ 500 ===== ====== ====== ===== ====== Fixed charges: Interest expense $ 128 $ 146 $ 142 $ 126 $ 96 Appropriate portion of rental expense (1) 28 28 28 28 28 Capitalized interest 4 5 6 13 31 ----- ------ ------ ----- ------ Total fixed charges $ 160 $ 179 $ 176 $ 167 $ 155 ===== ====== ====== ===== ====== Ratio of earnings (loss) to fixed charges 1.6x (A) 3.6x 1.5x 3.2x ===== ====== ====== ===== ======
(1) For all periods presented, the interest component of rental expense is estimated to equal one-third of such expense. (A) Due to the net loss reported, the coverage ratio was less than 1x. To achieve a coverage ratio of 1x, additional pre-tax earnings of $287 million would have been required for 2001. 183