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EXHIBIT 12.01
EASTMAN CHEMICAL COMPANY AND SUBSIDIARIES
COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES
(Dollars in Millions)
1998 1997 1996 1995 1994
Earnings from continuing
operations before provision
for income taxes $ 360 $ 446 $ 607 $ 899 $ 550
Add:
Interest expense 96 87 67 79 87
Rental expense (1) 28 27 22 16 7
Amortization of
capitalized interest 16 16 14 13 15
--------- --------- --------- --------- ---------
Earnings as adjusted $ 500 $ 576 $ 710 $ 1,007 $ 659
========= ========= ========= ========= =========
Fixed charges:
Interest expense $ 96 $ 87 $ 67 $ 79 $ 87
Rental expense (1) 28 27 22 16 7
Capitalized interest 31 41 28 9 11
--------- --------- --------- --------- ---------
Total fixed charges $ 155 $ 155 $ 117 $ 104 $ 105
========= ========= ========= ========= =========
Ratio of earnings to fixed charges 3.2x 3.7x 6.1x 9.7x 6.3x
========= ========= ========= ========= =========
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(1) For all periods presented, the interest component of rental expense is
estimated to equal one-third of such expense.
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