Payments for Repurchase of Equity



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NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS13.EARNINGS AND DIVIDENDS PER SHARE  
The following table sets forth the computation of basic and diluted earnings per share ("EPS") which are calculated using the treasury stock method:

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|   | Second Quarter |  | First Six Months |
| (In millions, except per share amounts) | 2022 |  | 2021 |  | 2022 |  | 2021 |
| Numerator |  |  |  |  |  |  |  |
| Earnings (loss) attributable to Eastman, net of tax  | $ | 256  |  |  | $ | (146) |  |  | $ | 491  |  |  | $ | 128  |  |
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| Denominator |  |  |  |  |  |  |  |
| Weighted average shares used for basic EPS | 124.8 |  | 135.9 |  | 126.9 |  | 136.0 |
| Dilutive effect of stock options and other awards (1) | 1.6 |  | — |  | 1.7 |  | 1.8 |
| Weighted average shares used for diluted EPS | 126.4 |  | 135.9 |  | 128.6 |  | 137.8 |
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| (Calculated using whole dollars and shares) |  |  |  |  |  |  |  |
| EPS |  |  |  |  |  |  |  |
| Basic | $ | 2.05  |  |  | $ | (1.07) |  |  | $ | 3.87  |  |  | $ | 0.94  |  |
| Diluted | $ | 2.03  |  |  | $ | (1.07) |  |  | $ | 3.82  |  |  | $ | 0.93  |  |

(1)Dilutive effect is not applicable in a period with a net loss.  
Shares underlying stock options of 1,342,328 and 327,782 for second quarter 2022 and 2021, respectively, and 507,692 for first six months 2022 were excluded from calculations of diluted EPS because the grant date exercise price of these options was greater than the average market price of the Company's common stock and the effect of including them in the calculation of diluted EPS would have been antidilutive. No shares were excluded from the calculation of diluted EPS for first six months 2021. There were 6,118,034 and 6,666,069 share repurchases in second quarter and first six months 2022, respectively. There were 833,580 and 1,188,375 share repurchases in second quarter and first six months 2021, respectively.   
The Company declared cash dividends of $0.76 and $0.69 per share for second quarter 2022 and 2021, respectively, and $1.52 and $1.38 per share for first six months 2022 and 2021, respectively.   
In December 2021, the Company's Board of Directors authorized the additional repurchase of up to $2.5 billion of the Company's outstanding common stock at such time, in such amounts, and on such terms, as determined by management to be in the best interest of the Company and its stockholders (the "2021 authorization").   
In second quarter 2022, the Company entered into an accelerated share repurchase program ("2022 ASR") to purchase $500 million of the Company's common stock under the board approved authorizations. In exchange for upfront payment totaling $500 million, the financial institutions committed to deliver shares during the 2022 ASR's purchase period, which will be settled in third quarter 2022. The total number of shares ultimately delivered will be determined at the end of the applicable purchase period based on the volume-weighted average price of the Company's stock during the term of the 2022 ASR, less a discount. Approximately 80 percent of the expected shares repurchased under the 2022 ASR were delivered in second quarter 2022. Shares in the amount of 1,212,732 were delivered under the 2022 ASR subsequent to June 30, 2022.28
