Cover Page
Cover Page | 9 Months Ended |
Sep. 30, 2019shares | |
Entity Information [Line Items] | |
Document Type | 10-Q |
Document Quarterly Report | true |
Document Period End Date | Sep. 30, 2019 |
Document Transition Report | false |
Entity File Number | 1-12626 |
Entity Registrant Name | EASTMAN CHEMICAL CO |
Entity Incorporation, State or Country Code | DE |
Entity Tax Identification Number | 62-1539359 |
Entity Address, Address Line One | 200 South Wilcox Drive |
Entity Address, City or Town | Kingsport |
Entity Address, State or Province | TN |
Entity Address, Postal Zip Code | 37662 |
City Area Code | 423 |
Local Phone Number | 229-2000 |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Small Business | false |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Entity Common Stock, Shares Outstanding | 135,979,215 |
Entity Central Index Key | 0000915389 |
Amendment Flag | false |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Year Focus | 2019 |
Document Fiscal Period Focus | Q3 |
Common Stock [Member] | |
Entity Information [Line Items] | |
Title of 12(b) Security | Common Stock, par value $0.01 per share |
Trading Symbol | EMN |
Security Exchange Name | NYSE |
1.5% notes due May 2023 [Member] | |
Entity Information [Line Items] | |
Title of 12(b) Security | 1.50% Notes Due 2023 |
Trading Symbol | EMN23 |
Security Exchange Name | NYSE |
1.875% notes due November 2026 [Member] | |
Entity Information [Line Items] | |
Title of 12(b) Security | 1.875% Notes Due 2026 |
Trading Symbol | EMN26 |
Security Exchange Name | NYSE |
UNAUDITED CONSOLIDATED STATEMEN
UNAUDITED CONSOLIDATED STATEMENTS OF EARNINGS, COMPREHENSIVE INCOME AND RETAINED EARNINGS - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | ||
Income Statement [Abstract] | |||||
Sales | $ 2,325 | $ 2,547 | $ 7,068 | $ 7,775 | |
Cost of sales | 1,751 | 1,819 | 5,331 | 5,762 | |
Gross profit | 574 | 728 | 1,737 | 2,013 | |
Selling, general and administrative expenses | 163 | 175 | 515 | 554 | |
Research and development expenses | 59 | 60 | 174 | 176 | |
Asset impairments and restructuring charges, net | 2 | 0 | 52 | 6 | |
Other components of post-employment (benefit) cost, net | (20) | (30) | (62) | (90) | |
Other (income) charges, net | 3 | 6 | 0 | (50) | |
Earnings before interest and taxes | 367 | 517 | 1,058 | 1,417 | |
Net interest expense | 54 | 58 | 165 | 178 | |
Earnings before income taxes | 313 | 459 | 893 | 1,239 | |
Provision for income taxes | 46 | 46 | 158 | 190 | |
Net earnings | 267 | 413 | 735 | 1,049 | |
Less: Net earnings attributable to noncontrolling interest | 1 | 1 | 2 | 3 | |
Net earnings attributable to Eastman | $ 266 | $ 412 | $ 733 | $ 1,046 | |
Basic earnings per share attributable to Eastman | |||||
Basic earnings per share attributable to Eastman | $ 1.95 | $ 2.93 | $ 5.31 | $ 7.38 | |
Diluted earnings per share attributable to Eastman | |||||
Diluted earnings per share attributable to Eastman | $ 1.93 | $ 2.89 | $ 5.27 | $ 7.28 | |
Comprehensive Income | |||||
Net earnings including noncontrolling interest | $ 267 | $ 413 | $ 735 | $ 1,049 | |
Other comprehensive income (loss), net of tax: | |||||
Change in cumulative translation adjustment | 23 | (21) | 40 | (28) | |
Defined benefit pension and other postretirement benefit plans: | |||||
Amortization of unrecognized prior service credits | (7) | (7) | (22) | (22) | |
Derivatives and hedging: | |||||
Unrealized gain (loss) during period | 10 | 37 | (2) | 78 | |
Reclassification adjustment for (gains) losses included in net income, net | 6 | (10) | 6 | (13) | |
Total other comprehensive income (loss), net of tax | 32 | (1) | 22 | 15 | |
Comprehensive income including noncontrolling interest | 299 | 412 | 757 | 1,064 | |
Less: Net earnings attributable to noncontrolling interest | 1 | 1 | 2 | 3 | |
Comprehensive income attributable to Eastman | 298 | 411 | 755 | 1,061 | |
Retained Earnings | |||||
Retained earnings at beginning of period | 7,848 | 7,292 | 7,573 | 6,802 | |
Cumulative effect adjustment resulting from adoption of new accounting standards | 0 | 0 | (20) | 16 | |
Net earnings attributable to Eastman | 266 | 412 | 733 | 1,046 | |
Cash dividends declared | [1] | (85) | (78) | (257) | (238) |
Retained earnings at end of period | $ 8,029 | $ 7,626 | $ 8,029 | $ 7,626 | |
[1] | Cash dividends declared consists of cash dividends paid and dividends declared but unpaid. |
UNAUDITED CONSOLIDATED STATEM_2
UNAUDITED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 | |
Current assets | |||
Cash and cash equivalents | $ 207 | $ 226 | |
Trade receivables, net of allowance for doubtful accounts | 1,191 | 1,154 | |
Miscellaneous receivables | 279 | 329 | |
Inventories | 1,695 | 1,583 | |
Other current assets | 68 | 73 | |
Total current assets | 3,440 | 3,365 | |
Properties | |||
Properties and equipment at cost | 12,898 | 12,731 | |
Less: Accumulated depreciation | 7,364 | 7,131 | |
Net properties | 5,534 | 5,600 | |
Goodwill | 4,464 | 4,467 | |
Intangible assets, net of accumulated amortization | 2,034 | 2,185 | |
Other noncurrent assets | 665 | 378 | |
Total assets | [1] | 16,137 | 15,995 |
Current liabilities | |||
Payables and other current liabilities | 1,438 | 1,608 | |
Borrowings due within one year | 642 | 243 | |
Total current liabilities | 2,080 | 1,851 | |
Long-term borrowings | 5,567 | 5,925 | |
Deferred income tax liabilities | 887 | 884 | |
Post-employment obligations | 867 | 925 | |
Other long-term liabilities | 639 | 532 | |
Total liabilities | 10,040 | 10,117 | |
Stockholders' equity | |||
Common stock ($0.01 par value – 350,000,000 shares authorized; shares issued – 219,624,815 and 219,140,523 for 2019 and 2018, respectively) | 2 | 2 | |
Additional paid-in capital | 2,092 | 2,048 | |
Retained earnings | 8,029 | 7,573 | |
Accumulated other comprehensive income (loss) | (203) | (245) | |
Stockholder's Equity before Treasury Stock | 9,920 | 9,378 | |
Less: Treasury stock at cost (83,696,398 shares for 2019 and 79,413,989 shares for 2018) | 3,900 | 3,575 | |
Total Eastman stockholders' equity | 6,020 | 5,803 | |
Noncontrolling interest | 77 | 75 | |
Total equity | 6,097 | 5,878 | |
Total liabilities and stockholders' equity | $ 16,137 | $ 15,995 | |
[1] | Segment assets include accounts receivable, inventory, fixed assets, goodwill, and intangible assets. |
UNAUDITED CONSOLIDATED STATEM_3
UNAUDITED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (Parenthetical) - $ / shares | Sep. 30, 2019 | Dec. 31, 2018 |
Stockholders' equity | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 350,000,000 | 350,000,000 |
Common stock, shares issued (in shares) | 219,624,815 | 219,140,523 |
Treasury stock at cost (in shares) | 83,696,398 | 79,413,989 |
UNAUDITED CONSOLIDATED STATEM_4
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Operating activities | ||
Net earnings | $ 735 | $ 1,049 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | ||
Depreciation and amortization | 462 | 451 |
Gain from property insurance | 0 | (65) |
Provision for deferred income taxes | 13 | 15 |
Changes in operating assets and liabilities, net of effect of acquisitions and divestitures: | ||
(Increase) decrease in trade receivables | (50) | (229) |
(Increase) decrease in inventories | (122) | (261) |
Increase (decrease) in trade payables | (183) | 7 |
Pension and other postretirement contributions (in excess of) less than expenses | (97) | (112) |
Variable compensation (in excess of) less than expenses | (15) | 23 |
Other items, net | 90 | (75) |
Net cash provided by operating activities | 833 | 803 |
Investing activities | ||
Additions to properties and equipment | (308) | (381) |
Proceeds from property insurance | 0 | 65 |
Acquisitions, net of cash acquired | (48) | 0 |
Other items, net | (4) | 1 |
Net cash used in investing activities | (360) | (315) |
Financing activities | ||
Net increase (decrease) in commercial paper and other borrowings | 149 | 339 |
Proceeds from borrowings | 335 | 490 |
Repayment of borrowings | (385) | (693) |
Dividends paid to stockholders | (258) | (240) |
Treasury stock purchases | (325) | (375) |
Other items, net | (3) | (3) |
Net cash used in financing activities | (487) | (482) |
Effect of exchange rate changes on cash and cash equivalents | (5) | (4) |
Net change in cash and cash equivalents | (19) | 2 |
Cash and cash equivalents at beginning of period | 226 | 191 |
Cash and cash equivalents at end of period | $ 207 | $ 193 |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES SIGNIFICANT ACCOUNTING POLICIES (Notes) | 9 Months Ended |
Sep. 30, 2019 | |
Significant Accounting Policies [Abstract] | |
Organization, Consolidation, Basis of Presentation, Business Description and Accounting Policies [Text Block] | SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared by Eastman Chemical Company ("Eastman" or the "Company") in accordance and consistent with the accounting policies stated in the Company's 2018 Annual Report on Form 10-K , and should be read in conjunction with the consolidated financial statements in Part II, Item 8 of that report, with the exception of the items noted below. The December 31, 2018 financial position data included herein was derived from the audited consolidated financial statements included in the 2018 Annual Report on Form 10-K but does not include all disclosures required by accounting principles generally accepted in the United States ("GAAP"). In the opinion of management, the unaudited consolidated financial statements include all normal recurring adjustments necessary for fair statement of the interim financial information in conformity with GAAP. These statements contain some amounts that are based upon management estimates and judgments. Future actual results could differ from such current estimates. The unaudited consolidated financial statements include assets, liabilities, sales revenue, and expenses of all majority-owned subsidiaries and joint ventures in which a controlling interest is maintained. Eastman accounts for other joint ventures and investments where it exercises significant influence on the equity basis. Intercompany transactions and balances are eliminated in consolidation. Recently Adopted Accounting Standards Accounting Standards Update ("ASU") 2016-02 Leases: On January 1, 2019, Eastman adopted this standard, and related releases, under the modified retrospective optional transition method such that prior period financial statements have not been adjusted to reflect the impact of the new standard and adoption did not result in an impact to retained earnings. Upon adoption, operating right-to-use assets and lease liabilities were $208 million . The new standard establishes two types of leases: finance and operating. Both finance and operating leases have associated right-to-use assets and lease liabilities that have been valued at the present value of the lease payments and recognized on the Unaudited Consolidated Statement of Financial Position. For further information, see Note 8, "Leases and Off Balance Sheet Items" . ASU 2018-02 Income Statement - Reporting Comprehensive Income: On January 1, 2019, Eastman adopted this standard in the current period resulting in the reclassification of $20 million of stranded tax expense from accumulated other comprehensive income (loss) ("AOCI") to retained earnings as a result of the 2017 Tax Cuts and Jobs Act ("Tax Reform Act"). The amount of the reclassification is the effect of the change in the U.S. federal corporate income tax rate on the gross deferred tax amounts and related valuation allowances related to items remaining in AOCI. ASU 2018-15 Internal-Use Software - Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract: On January 1, 2019, Eastman adopted this standard prospectively which did not result in a material impact on the Company's financial statements and related disclosures. ASU 2018-16 Derivatives and Hedging - Inclusion of the Secured Overnight Financing Rate ("SOFR") Overnight Index Swap ("OIS") Rate as a Benchmark Interest Rate for Hedge Accounting Purposes: On January 1, 2019, Eastman adopted this standard prospectively for qualifying new or redesignated hedging relationships. Management does not expect the adoption of this standard will materially impact the Company's financial statements and related disclosures. Accounting Standards Issued But Not Adopted as of September 30, 2019 ASU 2016-13 Financial Instruments - Credit Losses: In June 2016, the Financial Accounting Standards Board ("FASB") issued this standard relating to credit losses and subsequent related releases. The amendments require a financial asset (including trade receivables) to be presented at the net amount expected to be collected through the use of allowances for credit losses valuation account. The income statement will reflect the measurement of credit losses for newly recognized financial assets, as well as the expected increases or decreases of expected credit losses that have taken place during the period. This standard is effective for annual reporting periods beginning after December 15, 2019, including interim periods within that reporting period and early adoption is permitted, including adoption in an interim period, beginning after December 15, 2018. The new standard application is mixed among the various elements that include modified retrospective and prospective transition methods. Management does not expect that changes in its accounting required by the new standard will materially impact the Company's financial statements and related disclosures. ASU 2018-13 Fair Value Measurement - Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement: In August 2018, the FASB issued this update as a part of its disclosure framework project to improve the effectiveness of disclosures in the notes to financial statements. The primary changes applicable to Eastman in this update are the disclosures of fair value levels, assessment thereof, and transfers between those levels. This standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early adoption was permitted upon issuance of this update and an entity is permitted to early adopt any removed or modified disclosures upon issuance of this update and delay adoption of the additional disclosures until the effective date. Certain disclosure amendments are to be applied prospectively for only the most recent interim or annual period presented, while other amendments are to be applied retrospectively to all periods presented. Management does not expect that changes required by the new standard will materially impact the Company's related disclosures. ASU 2018-14 Retirement Benefits - Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans: In August 2018, the FASB issued this update as a part of its disclosure framework project to improve the effectiveness of disclosures in the notes to financial statements. The primary change impacting Eastman is the addition of disclosures related to significant gains and losses related to changes in the benefit obligation for the period and weighted-average interest crediting rates for cash balance plans. This standard is effective for fiscal years ending after December 15, 2020 and early adoption is permitted. Upon adoption, this update is to be applied on a retrospective basis to all periods presented. Management does not expect that changes required by the new standard will materially impact the Company's related disclosures. ASU 2018-18 Collaborative Arrangements - Clarifying the Interaction between Topic 808 (Collaborative Arrangements) and Topic 606 (Revenue from Contracts with Customers): In November 2018, the FASB issued clarification in regards to which contracts are accounted for under Topic 808 and Topic 606 as well as alignment of guidance between the two pronouncements. This standard is effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Early adoption is permitted. Upon adoption, this update is to be applied retrospectively to the date of initial application of Topic 606. Management is currently evaluating the impact on the Company's financial statements and related disclosures. ASU 2019-01 Leases - Codification Improvements: In March 2019, the FASB issued this update in response to stakeholder inquiries regarding the new leasing standard. This standard is effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Early adoption is permitted. Upon adoption, this update is to be applied as of the adoption date and under the same transition methodology of ASU 2016-02 Leases . Management is currently evaluating the impact on the Company's financial statements and related disclosures. |
INVENTORIES
INVENTORIES | 9 Months Ended |
Sep. 30, 2019 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | INVENTORIES September 30, December 31, (Dollars in millions) 2019 2018 Finished goods $ 1,161 $ 1,143 Work in process 239 262 Raw materials and supplies 571 515 Total inventories at FIFO or average cost 1,971 1,920 Less: LIFO reserve 276 337 Total inventories $ 1,695 $ 1,583 Inventories valued on the last-in, first-out ("LIFO") method were approximately 50 percent and 55 percent of total inventories at September 30, 2019 and December 31, 2018 , respectively. |
PAYABLES AND OTHER CURRENT LIAB
PAYABLES AND OTHER CURRENT LIABILITIES | 9 Months Ended |
Sep. 30, 2019 | |
Payables and Accruals [Abstract] | |
PAYABLES AND OTHER CURRENT LIABILITIES | PAYABLES AND OTHER CURRENT LIABILITIES September 30, December 31, (Dollars in millions) 2019 2018 Trade creditors $ 716 $ 914 Accrued payroll and variable compensation 163 197 Accrued taxes 94 94 Other 465 403 Total payables and other current liabilities $ 1,438 $ 1,608 "Other" consists primarily of accruals for post-employment obligations, dividends payable, interest payable, the current portion of operating lease liabilities, the current portion of derivative hedging liabilities, the current portion of environmental liabilities, and miscellaneous accruals. |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
PROVISION FOR INCOME TAXES | INCOME TAXES Third Quarter First Nine Months (Dollars in millions) 2019 2018 2019 2018 $ % $ % $ % $ % Provision for income taxes and tax rate $ 46 15 % $ 46 10 % $ 158 18 % $ 190 15 % Third quarter and first nine months 2019 includes adjustments to the tax provision to reflect amendments to and finalization of prior year's income tax returns. The third quarter and first nine months 2018 effective tax rates include the impact of the U.S. corporate tax rate reduction resulting from the Tax Reform Act. In third quarter and first nine months 2018, the Company also recognized a decrease of $14 million and $4 million , respectively, to the provision for income taxes resulting from adjustments to the provisional net tax benefit recognized in fourth quarter 2017 resulting from the Tax Reform Act and tax impact of outside-U.S. entity reorganizations as part of the transition to an international treasury services center. Third quarter and first nine months 2018 adjustments resulting from the Tax Reform Act were due to a decrease to the provision for income taxes related to foreign income inclusion and associated foreign tax credits partially offset by an increase to the provision for income taxes for a remeasurement of the deferred tax assets as a result of additional Internal Revenue Service ("IRS") guidance released in the third quarter 2018. Third quarter and first nine months 2018 effective tax rates also include a $14 million decrease to the provision for income taxes related to prior year income tax returns and a $17 million decrease to the provision for income taxes related to current year estimates of business tax credits. In addition, first nine months 2018 included a $10 million increase to the one-time transition tax on deferred foreign income resulting from the Tax Reform Act. The U.S. Department of Treasury and IRS have issued a number of proposed regulations related to implementation of the provisions of the Tax Reform Act and certain states may issue clarifying guidance regarding state income tax conformity to the current federal tax code. Finalization of these regulations in 2019 or future periods may result in changes in the period of enactment to the amounts currently reported in the Unaudited Consolidated Statements of Financial Position. |
BORROWINGS
BORROWINGS | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
BORROWINGS | BORROWINGS September 30, December 31, (Dollars in millions) 2019 2018 Borrowings consisted of: 2.7% notes due January 2020 $ 250 $ 250 4.5% notes due January 2021 185 185 3.5% notes due December 2021 298 297 3.6% notes due August 2022 740 739 1.50% notes due May 2023 (1) 815 855 7 1/4% debentures due January 2024 198 197 7 5/8% debentures due June 2024 43 43 3.8% notes due March 2025 696 691 1.875% notes due November 2026 (1) 539 566 7.60% debentures due February 2027 195 195 4.5% notes due December 2028 492 492 4.8% notes due September 2042 493 493 4.65% notes due October 2044 873 872 Commercial paper and short-term borrowings 392 243 Credit facilities borrowings — 50 Total borrowings 6,209 6,168 Borrowings due within one year 642 243 Long-term borrowings $ 5,567 $ 5,925 (1) The carrying value of the euro-denominated 1.50% notes due May 2023 and 1.875% notes due November 2026 will fluctuate with changes in the euro exchange rate. The carrying value of these euro-denominated borrowings have been designated as non-derivative net investment hedges of a portion of the Company's net investments in euro functional-currency denominated subsidiaries to offset foreign currency fluctuations. Credit Facilities and Commercial Paper Borrowings The Company has access to a $1.50 billion revolving credit agreement (the "Credit Facility") expiring October 2023. Borrowings under the Credit Facility are subject to interest at varying spreads above quoted market rates and a commitment fee is paid on the total unused commitment. The Credit Facility provides available liquidity for general corporate purposes and supports commercial paper borrowings. Commercial paper borrowings are classified as short-term. At September 30, 2019 and December 31, 2018 , the Company had no outstanding borrowings under the Credit Facility. At September 30, 2019 , the Company's commercial paper borrowings were $297 million with a weighted average interest rate of 2.29 percent . At December 31, 2018 , the Company's commercial paper borrowings were $130 million with a weighted average interest rate of 2.91 percent . The Company has access to up to $250 million under an accounts receivable securitization agreement (the "A/R Facility") that expires April 2020. Eastman Chemical Financial Corporation ("ECFC"), a subsidiary of the Company, has an agreement to sell interests in trade receivables under the A/R Facility to a third party purchaser. Third party creditors of ECFC have first priority claims on the assets of ECFC before those assets would be available to satisfy the Company's general obligations. Borrowings under the A/R Facility are subject to interest rates based on a spread over the lender's borrowing costs, and ECFC pays a fee to maintain availability of the A/R Facility. Borrowings under the A/R Facility are classified as long-term because the Company has the ability and intent to refinance such borrowings on a long-term basis. In first quarter 2019 , $125 million available under the A/R Facility was borrowed and $175 million repaid using available cash. In second quarter 2019 , $100 million available under the A/R Facility was borrowed and $100 million repaid using available cash. In third quarter 2019 , $110 million available under the A/R Facility was borrowed and $110 million repaid using available cash. At September 30, 2019 , the Company had no borrowings outstanding under the A/R Facility. At December 31, 2018, the Company's borrowings under the A/R Facility were $50 million with an interest rate of 3.39 percent . The Company has access to borrowings of up to €150 million ( $163 million ) under a receivables facility based on the discounted value of selected customer accounts receivable. This facility expires December 2020 and renews for another one year period if not terminated with 90 days notice by either party. These arrangements include receivables in the United States, Belgium, and Finland, and are subject to various eligibility requirements. Borrowings under this facility are subject to interest at an agreed spread above LIBOR and EURIBOR plus administration and insurance fees and are classified as short-term. At September 30, 2019 , the Company's outstanding borrowings under this facility were $95 million with a weighted average interest rate of 1.51 percent . At December 31, 2018 , the Company's amount of outstanding borrowings under this facility were $112 million with a weighted average interest rate of 1.70 percent . The Credit Facility and A/R Facility contain customary covenants, including requirements to maintain certain financial ratios, that determine the events of default, amounts available, and terms of borrowings. The Company was in compliance with all covenants at both September 30, 2019 and December 31, 2018 . Fair Value of Borrowings Eastman has classified its total borrowings at September 30, 2019 and December 31, 2018 under the fair value hierarchy as described in the accounting policies in Note 1, "Significant Accounting Policies" , to the consolidated financial statements in Part II, Item 8 of the Company's 2018 Annual Report on Form 10-K . The fair value for fixed-rate debt securities is based on quoted market prices for the same or similar debt instruments and is classified as Level 2. The fair value for the Company's other borrowings primarily under the commercial paper and receivables facility equals the carrying value and is classified as Level 2. At September 30, 2019 and December 31, 2018 , the fair value of total borrowings was $6.726 billion and $6.216 billion , respectively. The Company had no borrowings classified as Level 3 as of September 30, 2019 and December 31, 2018 . |
DERIVATIVE AND NON-DERIVATIVE F
DERIVATIVE AND NON-DERIVATIVE FINANCIAL INSTRUMENTS | 9 Months Ended |
Sep. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVES | DERIVATIVE AND NON-DERIVATIVE FINANCIAL INSTRUMENTS Overview of Hedging Programs Eastman is exposed to market risks, such as changes in foreign currency exchange rates, commodity prices, and interest rates. To mitigate these market risks and their effects on the cash flows of the underlying transactions and investments in foreign subsidiaries, the Company uses various derivative and non-derivative financial instruments, when appropriate, in accordance with the Company's hedging strategy and policies. Designation is performed on a specific exposure basis to support hedge accounting. The Company does not enter into derivative transactions for speculative purposes. For further information on hedging programs, see Note 9, "Derivative and Non-Derivative Financial Instruments" , to the consolidated financial statements in Part II, Item 8 of the Company's 2018 Annual Report on Form 10-K . Cash Flow Hedges Cash flow hedges are derivative instruments designated and used to hedge the exposure to variability in expected future cash flows that are attributable to a particular risk. The derivative instruments that are designated and qualify as a cash flow hedge are reported on the balance sheet at fair value and the changes in fair value of these hedging instruments are offset in part or in whole by corresponding changes in the anticipated cash flows of the underlying exposures being hedged. The change in the hedge instrument is reported as a component of AOCI located in the Unaudited Consolidated Statements of Financial Position and reclassified in earnings in the same period or periods during which the hedged transaction affects earnings. Cash flows from cash flow hedges are classified as operating activities in the Unaudited Consolidated Statement of Cash Flows. Fair Value Hedges Fair value hedges are defined as derivative or non-derivative instruments designated and used to hedge the exposure to changes in the fair value of an asset or a liability or an identified portion thereof that is attributable to a particular risk. The derivative instruments that are designated and qualify as fair value hedges are recognized on the balance sheet at fair value and the changes in fair value of these hedging instruments are offset in part or in whole by corresponding changes in the anticipated fair value of the underlying exposures being hedged. The net of the change in the hedge instrument and item being hedged for qualifying fair value hedges is recognized in earnings in the same period or periods during which the hedged transaction affects earnings. Cash flows from fair value hedges are classified as operating activities in the Unaudited Consolidated Statement of Cash Flows. Net Investment Hedges Net investment hedges are defined as derivative or non-derivative instruments designated and used to hedge the foreign currency exposure of the net investments in certain foreign operations. The net of the change in the hedge instrument and item being hedged for qualifying net investment hedges is reported as a component of the "Cumulative Translation Adjustment" ("CTA") within AOCI located in the Unaudited Consolidated Statements of Financial Position. Cash flows from the CTA component are classified as operating activities in the Unaudited Consolidated Statement of Cash Flows. Recognition in earnings of amounts previously recognized in CTA is limited to circumstances such as complete or substantially complete liquidation of the net investment in the hedged foreign operation. In the event of a complete or substantially complete liquidation of the net investment, cash flows from net investment hedges are classified as investing activities in the Unaudited Consolidated Statement of Cash Flows. For derivative cross-currency interest rate swap net investment hedges, gains and losses representing hedge components excluded from the assessment of effectiveness are recognized in CTA within AOCI and recognized in earnings through the periodic swap interest accruals. The cross-currency interest rate swaps designated as net investment hedges are included as part of "Other long-term liabilities" or "Other noncurrent assets" within the Unaudited Consolidated Statements of Financial Position. Cash flows from excluded components are classified as operating activities in the Unaudited Consolidated Statement of Cash Flows. In January 2018, Eastman entered into fixed-to-fixed cross-currency swaps and designated these swaps to hedge a portion of its net investment in a euro functional currency denominated subsidiary against foreign currency fluctuations. These contracts involve the exchange of fixed U.S. dollars with fixed euro interest payments periodically over the life of the contracts and an exchange of the notional amounts at maturity. The fixed-to-fixed cross-currency swaps include €150 million ( $180 million ) maturing January 2021 and €266 million ( $320 million ) maturing August 2022. In October 2018, Eastman entered into fixed-to-fixed cross-currency swaps and designated these swaps to hedge a portion of its net investment in a euro functional currency denominated subsidiary against foreign currency fluctuations. These contracts involve the exchange of fixed U.S. dollars with fixed euro interest payments periodically over the life of the contracts and an exchange of the notional amounts at maturity. The fixed-to-fixed cross-currency swaps include €165 million ( $190 million ) maturing January 2024, €104 million ( $120 million ) maturing March 2025, and €165 million ( $190 million ) maturing February 2027. Summary of Financial Position and Financial Performance of Hedging Instruments The following table presents the notional amounts outstanding at September 30, 2019 and December 31, 2018 associated with Eastman's hedging programs. Notional Outstanding September 30, 2019 December 31, 2018 Derivatives designated as cash flow hedges: Foreign Exchange Forward and Option Contracts (in millions) EUR/USD (in EUR) €603 €263 Commodity Forward and Collar Contracts Feedstock (in million barrels) 2 5 Energy (in million british thermal units) 33 40 Derivatives designated as fair value hedges: Fixed-for-floating interest rate swaps (in millions) $75 $75 Derivatives designated as net investment hedges: Cross-currency interest rate swaps (in millions) EUR/USD (in EUR) €851 €851 Non-derivatives designated as net investment hedges: Foreign Currency Net Investment Hedges (in millions) EUR/USD (in EUR) €1,242 €1,241 Fair Value Measurements All of the Company's derivative assets and liabilities are currently classified as Level 2. Level 2 fair value is based on estimates using standard pricing models. These standard pricing models use inputs that are derived from or corroborated by observable market data such as interest rate yield curves and currency spot and forward rates. The fair value of commodity contracts is derived using forward curves supplied by an industry recognized and unrelated third party. In addition, on an ongoing basis, the Company tests a subset of its valuations against valuations received from transaction counterparties to validate the accuracy of its standard pricing models. Counterparties to these derivative contracts are highly rated financial institutions which the Company believes carry minimal risk of nonperformance, and the Company diversifies its positions among such counterparties to reduce its exposure to counterparty risk and credit losses. The Company monitors the creditworthiness of its counterparties on an ongoing basis. The Company did not recognize a credit loss during third quarter and first nine months 2019 and 2018 . All the Company's derivative contracts are subject to master netting arrangements, or similar agreements, which provide for the option to settle contracts on a net basis when they settle on the same day and in the same currency. In addition, these arrangements provide for a net settlement of all contracts with a given counterparty in the event that the arrangement is terminated due to the occurrence of default or a termination event. The Company does not have any cash collateral due under such agreements. The Company has elected to present derivative contracts on a gross basis within the Unaudited Consolidated Statements of Financial Position. The following table presents the financial assets and liabilities valued on a recurring and gross basis and includes where the financial assets and liabilities are located within the Unaudited Consolidated Statements of Financial Position as of September 30, 2019 and December 31, 2018 . The Financial Position and Fair Value Measurements of Hedging Instruments on a Gross Basis (Dollars in millions) Derivative Type Statements of Financial Position Classification September 30, 2019 Level 2 December 31, 2018 Level 2 Derivatives designated as cash flow hedges: Commodity contracts Other current assets $ 1 $ 4 Foreign exchange contracts Other current assets 23 15 Foreign exchange contracts Other noncurrent assets 9 4 Derivatives designated as fair value hedges: Fixed-for-floating interest rate swap Other current assets — 1 Derivatives designated as net investment hedges: Cross-currency interest rate swaps Other noncurrent assets 94 26 Total Derivative Assets $ 127 $ 50 Derivatives designated as cash flow hedges: Commodity contracts Payables and other current liabilities $ 26 $ 24 Commodity contracts Other long-term liabilities 5 5 Derivatives designated as fair value hedges: Fixed-for-floating interest rate swap Long-term borrowings — 4 Total Derivative Liabilities $ 31 $ 33 Total Net Derivative Assets (Liabilities) $ 96 $ 17 In addition to the fair value associated with derivative instruments designated as cash flow hedges, fair value hedges, and net investment hedges noted in the table above, the Company had non-derivative instruments designated as foreign currency net investment hedges with a carrying value of $1.4 billion at both September 30, 2019 and December 31, 2018 . The designated foreign currency-denominated borrowings are included as part of "Long-term borrowings" within the Unaudited Consolidated Statements of Financial Position. For additional fair value measurement information, see Note 1, "Significant Accounting Policies" , and Note 9, "Derivative and Non-Derivative Financial Instruments" , to the consolidated financial statements in Part II, Item 8 of the Company's 2018 Annual Report on Form 10-K . As of September 30, 2019 and December 31, 2018 , the following amounts were included on the Unaudited Consolidated Statements of Financial Position related to cumulative basis adjustments for fair value hedges. (Dollars in millions) Carrying amount of the hedged liabilities Cumulative amount of fair value hedging loss adjustment included in the carrying amount of the hedged liability Line item in the Unaudited Consolidated Statements of Financial Position in which the hedged item is included September 30, 2019 December 31, 2018 September 30, December 31, 2018 Long-term borrowings (1) $ 763 $ 759 $ (7 ) $ (12 ) (1) At both September 30, 2019 and December 31, 2018 , the cumulative amount of fair value hedging loss adjustment remaining for hedged liabilities for which hedge accounting has been discontinued was $7 million . The following table presents the effect of the Company's hedging instruments on "Other comprehensive income (loss), net of tax" ("OCI") and financial performance for third quarter and first nine months 2019 and 2018 . Change in amount of after tax gain (loss) recognized in OCI on derivatives Pre-tax amount of gain (loss) reclassified from OCI into earnings (Dollars in millions) Third Quarter First Nine Months Third Quarter First Nine Months Hedging Relationships 2019 2018 2019 2018 2019 2018 2019 2018 Derivatives in cash flow hedging relationships: Commodity contracts $ (1 ) $ 28 $ (7 ) $ 57 $ (14 ) $ 8 $ (25 ) $ 3 Foreign exchange contracts 16 (2 ) 10 5 7 7 20 18 Forward starting interest rate and treasury lock swap contracts 1 1 3 3 (2 ) (2 ) (4 ) (4 ) Non-derivatives in net investment hedging relationships (pre-tax): Net investment hedges 60 12 68 51 — — — — Derivatives in net investment hedging relationships (pre-tax): Cross-currency interest rate swaps 40 3 46 18 — — — — Cross-currency interest rate swaps excluded component 9 (1 ) 22 (12 ) — — — — The following table presents the effect of fair value and cash flow hedge accounting on the Unaudited Consolidated Statements of Earnings, Comprehensive Income and Retained Earnings for third quarter 2019 and 2018 . Location and Amount of Gain or (Loss) Recognized in Earnings on Fair Value and Cash Flow Hedging Relationships Third Quarter 2019 2018 (Dollars in millions) Sales Cost of Sales Net Interest Expense Sales Cost of Sales Net Interest Expense Total amounts of income and expense line items presented in the Unaudited Consolidated Statements of Earnings, Comprehensive Income and Retained Earnings in which the effects of fair value or cash flow hedges are recognized $ 2,325 $ 1,751 $ 54 $ 2,547 $ 1,819 $ 58 The effects of fair value and cash flow hedging: Gain or (loss) on fair value hedging relationships: Interest contracts (fixed-for-floating interest rate swaps): Hedged items 1 — Derivatives designated as hedging instruments (1 ) — Gain or (loss) on cash flow hedging relationships: Interest contracts (forward starting interest rate and treasury lock swap contracts): Amount reclassified from AOCI into earnings (2 ) (2 ) Commodity Contracts: Amount reclassified from AOCI into earnings (14 ) 8 Foreign Exchange Contracts: Amount reclassified from AOCI into earnings 7 7 The following table presents the effect of fair value and cash flow hedge accounting on the Unaudited Consolidated Statements of Earnings, Comprehensive Income and Retained Earnings for first nine months 2019 and 2018 . Location and Amount of Gain or (Loss) Recognized in Earnings on Fair Value and Cash Flow Hedging Relationships First Nine Months 2019 2018 (Dollars in millions) Sales Cost of Sales Net Interest Expense Sales Cost of Sales Net Interest Expense Total amounts of income and expense line items presented in the Unaudited Consolidated Statements of Earnings, Comprehensive Income and Retained Earnings in which the effects of fair value or cash flow hedges are recognized $ 7,068 $ 5,331 $ 165 $ 7,775 $ 5,762 $ 178 The effects of fair value and cash flow hedging: Gain or (loss) on fair value hedging relationships: Interest contracts (fixed-for-floating interest rate swaps): Hedged items 1 — Derivatives designated as hedging instruments (1 ) — Gain or (loss) on cash flow hedging relationships: Interest contracts (forward starting interest rate and treasury lock swap contracts): Amount reclassified from AOCI into earnings (4 ) (4 ) Commodity Contracts: Amount reclassified from AOCI into earnings (25 ) 3 Foreign Exchange Contracts: Amount reclassified from AOCI into earnings 20 18 The Company enters into foreign exchange derivatives denominated in multiple currencies which are transacted and settled in the same quarter. These derivatives are not designated as hedges due to the short-term nature and the gains or losses on these derivatives are marked-to-market in line item "Other (income) charges, net" of the Unaudited Consolidated Statements of Earnings, Comprehensive Income and Retained Earnings. The Company recognized a net gain on these derivatives of $5 million and $2 million during third quarter 2019 and 2018 , respectively, and recognized a net gain of $1 million and a net loss of $4 million during first nine months 2019 and 2018 , respectively. Pre-tax monetized positions and mark-to-market gains and losses from raw materials and energy, currency, and certain interest rate hedges that were included in AOCI included net gains of $30 million and net losses $112 million at September 30, 2019 and December 31, 2018 , respectively. Gains recognized between September 30, 2019 and December 31, 2018 primarily resulted from a decrease in foreign currency exchange rates associated with the euro, partially offset by commodity price decreases. If recognized, approximately $14 million in pre-tax losses, as of September 30, 2019 , would be reclassified into earnings during the next 12 months. |
RETIREMENT PLANS
RETIREMENT PLANS | 9 Months Ended |
Sep. 30, 2019 | |
Retirement Benefits [Abstract] | |
RETIREMENT PLANS | RETIREMENT PLANS Defined Benefit Pension Plans and Other Postretirement Benefit Plans Eastman maintains defined benefit pension plans that provide eligible employees with retirement benefits. In addition, Eastman provides life insurance for eligible retirees hired prior to January 1, 2007. The Company provides a subsidy for pre-Medicare health care and dental benefits to eligible retirees hired prior to January 1, 2007 that will end on December 31, 2021. Company funding is also provided for eligible Medicare retirees hired prior to January 1, 2007 with a health reimbursement arrangement. Costs recognized for these benefits are estimated amounts, which may change as actual costs for the year are determined. For additional information regarding retirement plans, see Note 10, "Retirement Plans" , to the consolidated financial statements in Part II, Item 8 of the Company's 2018 Annual Report on Form 10-K . Components of net periodic benefit (credit) cost were as follows: Third Quarter Pension Plans Other Postretirement Benefit Plans 2019 2018 2019 2018 (Dollars in millions) U.S. Non-U.S. U.S. Non-U.S. Service cost $ 6 $ 4 $ 9 $ 3 $ — $ — Interest cost 19 5 16 5 6 6 Expected return on assets (31 ) (8 ) (36 ) (9 ) (2 ) (2 ) Amortization of: Prior service credit, net — — — — (9 ) (10 ) Net periodic benefit (credit) cost $ (6 ) $ 1 $ (11 ) $ (1 ) $ (5 ) $ (6 ) First Nine Months Pension Plans Other Postretirement Benefit Plans 2019 2018 2019 2018 (Dollars in millions) U.S. Non-U.S. U.S. Non-U.S. Service cost $ 20 $ 11 $ 26 $ 11 $ — $ — Interest cost 57 15 50 15 19 17 Expected return on assets (96 ) (24 ) (110 ) (28 ) (4 ) (4 ) Amortization of: Prior service credit, net — — — — (29 ) (30 ) Net periodic benefit (credit) cost $ (19 ) $ 2 $ (34 ) $ (2 ) $ (14 ) $ (17 ) |
LEASES AND OFF BALANCE SHEET IT
LEASES AND OFF BALANCE SHEET ITEMS | 9 Months Ended |
Sep. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS | LEASES AND OFF BALANCE SHEET ITEMS Leases On January 1, 2019, Eastman adopted ASU 2016-02 Leases and related releases under the modified retrospective optional transition method such that prior period financial statements have not been adjusted to reflect the impact of the new standard. The new standard establishes two types of leases: finance and operating. Both types of leases have associated right-to-use assets and lease liabilities that have been valued at the present value of the lease payments and recognized on the Unaudited Consolidated Statement of Financial Position which did not result in an impact to retained earnings. The discount rate used in the measurement of a right-to-use asset and lease liability is the rate implicit in the lease whenever that rate is readily determinable. If the rate implicit in the lease is not readily determinable, the collateralized incremental borrowing rate is used. Upon adoption, the Company elected the practical expedient package wherein: expired or existing contracts were not reassessed as to whether these contracts are or contained a lease; expired or existing contracts were not reassessed for operating or financing classification; and initial direct costs for existing leases were not reassessed. The Company also elected the practical expedient not to assess whether existing or expired land easements that were not previously accounted for under the prior standard are or contain a lease. Lastly, the Company elected the accounting policy not to apply the recognition and measurement requirements to short-term leases with a term of 12 months or less and do not include a bargain purchase option. The Company has operating leases, as a lessee, with customary terms that do not include: significant variable lease payments; significant reasonably certain extensions or options required to be included in the lease term; restrictions; or other covenants for real property, rolling stock, and machinery and equipment. Real property leases primarily consist of office space and rolling stock leases primarily for railcars and fleet vehicles. At September 30, 2019 , operating right-to-use assets of $205 million are included as a part of "Other noncurrent assets" in the Unaudited Consolidated Statement of Financial Position and includes $8 million of assets previously classified as lease intangibles. Operating lease liabilities are included as a part of "Payables and other current liabilities" and "Other long-term liabilities" in the Unaudited Consolidated Statement of Financial Position. There have been no material changes to the future minimum lease payments as of December 31, 2018 as accounted for under the previous lease standard, for these obligations, see Note 11, "Commitments and Off Balance Sheet Arrangements" , to the consolidated financial statements in Part II, Item 8 of the Company's 2018 Annual Report on Form 10-K . As of September 30, 2019 , reconciliation of minimum lease payments and operating lease liabilities is provided below: (Dollars in millions) Operating lease liabilities Remainder of 2019 $ 17 2020 58 2021 46 2022 36 2023 24 2024 and beyond 39 Total minimum lease payments 220 Less: amounts of lease payments representing interest 23 Present value of future minimum lease payments 197 Less: current obligations under leases 55 Long-term lease obligations $ 142 The Company has operating leases, primarily leases for railcars, with terms that require the Company to guarantee a portion of the residual value of the leased assets upon termination of the lease that will expire beginning in first quarter 2020. Residual guarantee payments that become probable and estimable are recognized as rent expense over the remaining life of the applicable lease. Management's current expectation is that the likelihood of material residual guarantee payments is remote. Lease costs during the period and other information is provided below: Third Quarter First Nine Months (Dollars in millions) 2019 2019 Lease costs: Operating lease costs $ 17 $ 49 Short-term lease costs 10 30 Sublease income — (1 ) Total $ 27 $ 78 Other operating lease information: Cash paid for amounts included in the measurement of lease liabilities $ 17 $ 52 Right-to-use assets obtained in exchange for new lease liabilities 15 36 Weighted-average remaining lease term, in years 5 Weighted-average discount rate 4.1 % Off Balance Sheet Items Supplier Purchase Obligations The Company had various purchase obligations at September 30, 2019 , totaling approximately $2.8 billion over a period of approximately 30 years for materials, supplies, and energy incident to the ordinary conduct of business. Guarantees Guarantees and claims also arise during the ordinary course of business from relationships with customers, suppliers, joint venture partners, and other parties when the Company undertakes an obligation to guarantee the performance of others if specified triggering events occur. Non-performance under a contract could trigger an obligation of the Company. The Company's current other guarantees include guarantees relating to intellectual property, environmental matters, and other indemnifications and have arisen through the normal course of business. The ultimate effect on future financial results is not subject to reasonable estimation because considerable uncertainty exists as to the final outcome of these claims, if they were to occur. These other guarantees have terms up to 30 years with maximum potential future payments of approximately $30 million in the aggregate, with none of these guarantees being individually significant to the Company's operating results, financial position, or liquidity. Management's current expectation is that future payment or performance related to non-performance under other guarantees is remote. Accounts Receivable Factoring The Company has uncommitted accounts receivable factoring agreements under which entire invoices may be sold, without recourse, to third-party financial institutions. Under these agreements, the Company sells the invoices at face value, less a transaction fee, which substantially equals the carrying value and fair value with no gain or loss recognized and no credit loss exposure is retained. Available capacity under these agreements, which the Company uses as a source of working capital funding, is dependent on the level of accounts receivable eligible to be sold and the financial institutions' willingness to purchase such receivables. In addition, certain agreements also require that the Company continue to service, administer, and collect the sold accounts receivable at market rates. The total amount of receivables sold in third quarter 2019 and 2018 were $190 million and $38 million , respectively, and $460 million and $123 million in first nine months 2019 and 2018 |
ENVIRONMENTAL MATTERS AND ASSET
ENVIRONMENTAL MATTERS AND ASSET RETIREMENT OBLIGATIONS | 9 Months Ended |
Sep. 30, 2019 | |
Accrual for Environmental Loss Contingencies Disclosure [Abstract] | |
Environmental Matters | ENVIRONMENTAL MATTERS AND ASSET RETIREMENT OBLIGATIONS Certain Eastman manufacturing facilities generate hazardous and nonhazardous wastes, the treatment, storage, transportation, and disposal of which are regulated by various governmental agencies. In connection with the cleanup of various hazardous waste sites, the Company, along with many other entities, has been designated a potentially responsible party ("PRP") by the U.S. Environmental Protection Agency under the Comprehensive Environmental Response, Compensation and Liability Act, which potentially subjects PRPs to joint and several liability for certain cleanup costs. In addition, the Company will incur costs for environmental remediation and closure and post-closure under the federal Resource Conservation and Recovery Act. Reserves for environmental contingencies have been established in accordance with Eastman's policies described in Note 1, "Significant Accounting Policies" , to the consolidated financial statements in Part II, Item 8 of the Company's 2018 Annual Report on Form 10-K . The resolution of uncertainties related to environmental matters may have a material adverse effect on the Company's consolidated results of operations in the period recognized. However, because of the availability of legal defenses, the Company's preliminary assessment of actions that may be required, and the extended period of time that the obligations are expected to be satisfied, management does not believe that the Company's liability for these environmental matters, individually or in the aggregate, will have a material adverse effect on the Company's future liquidity or financial condition. The Company's total reserve for environmental loss contingencies was $290 million and $296 million at September 30, 2019 and December 31, 2018 , respectively. Environmental Remediation and Environmental Asset Retirement Obligations The Company's total environmental reserve that management believes to be probable and reasonably estimable for environmental contingencies, including remediation costs and asset retirement obligations, is included as part of "Payables and other current liabilities" and "Other long-term liabilities" in the Unaudited Consolidated Statements of Financial Position as follows: (Dollars in millions) September 30, 2019 December 31, 2018 Environmental contingent liabilities, current $ 20 $ 25 Environmental contingent liabilities, long-term 270 271 Total $ 290 $ 296 Environmental Remediation Estimated future environmental expenditures for undiscounted remediation costs ranged from the best estimate or minimum of $263 million to the maximum of $492 million at September 30, 2019 and from the best estimate or minimum of $271 million to the maximum of $508 million at December 31, 2018 . The best estimate or minimum estimated future environmental expenditures are considered to be probable and reasonably estimable and include the amounts accrued at both September 30, 2019 and December 31, 2018 . Reserves for environmental remediation include liabilities expected to be paid within approximately 30 years . The amounts charged to pre-tax earnings for environmental remediation and related charges are included within "Cost of sales" in the Unaudited Consolidated Statements of Earnings, Comprehensive Income and Retained Earnings. Changes in the reserves for environmental remediation liabilities during first nine months 2019 and full year 2018 are summarized below: (Dollars in millions) Environmental Remediation Liabilities Balance at December 31, 2017 $ 280 Changes in estimates recognized in earnings and other 7 Cash reductions (16 ) Balance at December 31, 2018 271 Changes in estimates recognized in earnings and other 3 Cash reductions (11 ) Balance at September 30, 2019 $ 263 Environmental Asset Retirement Obligations An asset retirement obligation is an obligation for the retirement of a tangible long-lived asset that is incurred upon the acquisition, construction, development, or normal operation of that long-lived asset. The Company recognizes asset retirement obligations in the period in which they are incurred if a reasonable estimate of fair value can be made. The asset retirement obligations are discounted to expected present value and subsequently adjusted for changes in fair value. The associated estimated asset retirement costs are capitalized as part of the carrying value of the long-lived assets and depreciated over their useful life. Environmental asset retirement obligations consist primarily of closure and post-closure costs. For sites that have environmental asset retirement obligations, the best estimate recognized to date for these environmental asset retirement obligation costs was $27 million and $25 million at September 30, 2019 and December 31, 2018 , respectively. Non-Environmental Asset Retirement Obligations The Company has contractual asset retirement obligations not associated with environmental liabilities. Eastman's non-environmental asset retirement obligations are primarily associated with the future closure of leased manufacturing assets at Pace, Florida and Oulu, Finland. These recognized non-environmental asset retirement obligations were $47 million and $46 million at September 30, 2019 and December 31, 2018 , respectively, and is included as part of "Other long-term liabilities" in the Unaudited Consolidated Statements of Financial Position. |
LEGAL MATTERS
LEGAL MATTERS | 9 Months Ended |
Sep. 30, 2019 | |
Loss Contingency, Information about Litigation Matters [Abstract] | |
LEGAL MATTERS | LEGAL MATTERS From time to time, Eastman and its operations are parties to, or targets of, lawsuits, claims, investigations and proceedings, including product liability, personal injury, asbestos, patent and intellectual property, commercial, contract, environmental, antitrust, health and safety, and employment matters, which are handled and defended in the ordinary course of business. While the Company is unable to predict the outcome of these matters, it does not believe, based upon currently available facts, that the ultimate resolution of any such pending matters will have a material adverse effect on its overall financial condition, results of operations, or cash flows. |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 9 Months Ended |
Sep. 30, 2019 | |
Stockholders' Equity Note [Abstract] | |
STOCKHOLDERS' EQUITY | STOCKHOLDERS' EQUITY Reconciliations of the changes in stockholders' equity for third quarter 2019 and 2018 are provided below: (Dollars in millions, except per share amount) Common Stock at Par Value Additional Paid-in Capital Retained Earnings Accumulated Other Comprehensive Income (Loss) Treasury Stock at Cost Total Eastman Stockholders' Equity Noncontrolling Interest Total Equity Balance at June 30, 2019 $ 2 $ 2,079 $ 7,848 $ (235 ) $ (3,825 ) $ 5,869 $ 77 $ 5,946 Net Earnings — — 266 — — 266 1 267 Cash Dividends Declared (1) — — (85 ) — — (85 ) — (85 ) Other Comprehensive Income (Loss) — — — 32 — 32 — 32 Share Based Compensation Expense (2) — 13 — — — 13 — 13 Other — — — — — — (1 ) (1 ) Share Repurchase — — — — (75 ) (75 ) — (75 ) Balance at September 30, 2019 $ 2 $ 2,092 $ 8,029 $ (203 ) $ (3,900 ) $ 6,020 $ 77 $ 6,097 (Dollars in millions, except per share amount) Common Stock at Par Value Additional Paid-in Capital Retained Earnings Accumulated Other Comprehensive Income (Loss) Treasury Stock at Cost Total Eastman Stockholders' Equity Noncontrolling Interest Total Equity Balance at June 30, 2018 $ 2 $ 2,021 $ 7,292 $ (193 ) $ (3,425 ) $ 5,697 $ 77 $ 5,774 Net Earnings — — 412 — — 412 1 413 Cash Dividends Declared (1) ($0.56 per share) — — (78 ) — — (78 ) — (78 ) Other Comprehensive Income (Loss) — — — (1 ) — (1 ) — (1 ) Share Based Compensation Expense (2) — 15 — — — 15 — 15 Stock Option Exercises — 1 — — — 1 — 1 Other — (1 ) — — — (1 ) (1 ) (2 ) Share Repurchase — — — — (125 ) (125 ) — (125 ) Distributions to noncontrolling interest — — — — — — (2 ) (2 ) Balance at September 30, 2018 $ 2 $ 2,036 $ 7,626 $ (194 ) $ (3,550 ) $ 5,920 $ 75 $ 5,995 (1) Cash dividends declared consists of cash dividends paid and dividends declared but unpaid. (2) Share-based compensation expense is the fair value of share-based awards. Reconciliations of the changes in stockholders' equity for first nine months 2019 and 2018 are provided below: (Dollars in millions, except per share amount) Common Stock at Par Value Additional Paid-in Capital Retained Earnings Accumulated Other Comprehensive Income (Loss) Treasury Stock at Cost Total Eastman Stockholders' Equity Noncontrolling Interest Total Equity Balance at December 31, 2018 $ 2 $ 2,048 $ 7,573 $ (245 ) $ (3,575 ) $ 5,803 $ 75 $ 5,878 Cumulative Effect of Adoption of New Accounting Standards (1) — — (20 ) 20 — — — — Net Earnings — — 733 — — 733 2 735 Cash Dividends Declared (2) ($1.86 per share) — — (257 ) — — (257 ) — (257 ) Other Comprehensive Income (Loss) — — — 22 — 22 — 22 Share-Based Compensation Expense (3) — 46 — — — 46 — 46 Stock Option Exercises — 8 — — — 8 — 8 Other (4) — (10 ) — — — (10 ) — (10 ) Share Repurchases — — — — (325 ) (325 ) — (325 ) Balance at September 30, 2019 $ 2 $ 2,092 $ 8,029 $ (203 ) $ (3,900 ) $ 6,020 $ 77 $ 6,097 (Dollars in millions, except per share amount) Common Stock at Par Value Additional Paid-in Capital Retained Earnings Accumulated Other Comprehensive Income (Loss) Treasury Stock at Cost Total Eastman Stockholders' Equity Noncontrolling Interest Total Equity Balance at December 31, 2017 $ 2 $ 1,983 $ 6,802 $ (209 ) $ (3,175 ) $ 5,403 $ 77 $ 5,480 Cumulative Effect of Adoption of New Accounting Standards (5) — — 16 — — 16 — 16 Net Earnings — — 1,046 — — 1,046 3 1,049 Cash Dividends Declared (2) ($1.68 per share) — — (238 ) — — (238 ) — (238 ) Other Comprehensive Income (Loss) — — — 15 — 15 — 15 Share-Based Compensation Expense (3) — 53 — — — 53 — 53 Stock Option Exercises — 17 — — — 17 — 17 Other (4) — (17 ) — — — (17 ) — (17 ) Share Repurchases — — — — (375 ) (375 ) — (375 ) Distributions to Noncontrolling Interest — — — — — — (5 ) (5 ) Balance at September 30, 2018 $ 2 $ 2,036 $ 7,626 $ (194 ) $ (3,550 ) $ 5,920 $ 75 $ 5,995 (1) On January 1, 2019, the Company adopted a new accounting standard for reporting comprehensive income, which resulted in a reclassification of stranded tax effects from the Tax Reform Act from AOCI to retained earnings. See Note 1, "Significant Accounting Policies" , for additional information. (2) Cash dividends declared consists of cash dividends paid and dividends declared but unpaid. (3) Share-based compensation expense is the fair value of share-based awards. (4) Additional paid-in capital includes value of shares withheld for employees' taxes on vesting of share-based compensation awards. (5) On January 1, 2018, the Company adopted new accounting standards for revenue recognition, income taxes, and derivatives and hedging, which resulted in adjustments to beginning retained earnings. See Note 1, "Significant Accounting Policies" , to the consolidated financial statements in Part II, Item 8 of the Company's 2018 Annual Report on Form 10-K for specific amounts related to each standard. Accumulated Other Comprehensive Income (Loss), Net of Tax (Dollars in millions) Cumulative Translation Adjustment Benefit Plans Unrecognized Prior Service Credits Unrealized Gains (Losses) on Derivative Instruments Unrealized Losses on Investments Accumulated Other Comprehensive Income (Loss) Balance at December 31, 2017 $ (296 ) $ 136 $ (48 ) $ (1 ) $ (209 ) Period change (13 ) (30 ) 7 — (36 ) Balance at December 31, 2018 (309 ) 106 (41 ) (1 ) (245 ) Period change (1) 40 7 (5 ) — 42 Balance at September 30, 2019 $ (269 ) $ 113 $ (46 ) $ (1 ) $ (203 ) (1) Benefit plans unrecognized prior service credits includes $29 million reclassification of stranded tax expense from AOCI to retained earnings and unrealized gains (losses) on derivative instruments includes $9 million reclassification of stranded tax benefit from AOCI to retained earnings. See Note 1, "Significant Accounting Policies" , for additional information. Amounts of other comprehensive income (loss) are presented net of applicable taxes. Eastman recognizes deferred income taxes on the CTA related to branch operations and income from other entities included in the Company's consolidated U.S. tax return. No deferred income taxes are recognized on the CTA of other subsidiaries outside the United States, because the CTA is considered to be a component of indefinitely invested, unremitted earnings of these foreign subsidiaries. Components of other comprehensive income recognized in the Unaudited Consolidated Statements of Earnings, Comprehensive Income and Retained Earnings are presented below, before tax and net of tax effects: Third Quarter 2019 2018 (Dollars in millions) Before Tax Net of Tax Before Tax Net of Tax Other comprehensive income (loss) Change in cumulative translation adjustment $ 23 $ 23 $ (21 ) $ (21 ) Defined benefit pension and other postretirement benefit plans: Amortization of unrecognized prior service credits (9 ) (7 ) (10 ) (7 ) Derivatives and hedging: Unrealized gain (loss) during period 13 10 50 37 Reclassification adjustment for (gains) losses included in net income, net 8 6 (14 ) (10 ) Total other comprehensive income (loss) $ 35 $ 32 $ 5 $ (1 ) First Nine Months 2019 2018 (Dollars in millions) Before Tax Net of Tax Before Tax Net of Tax Other comprehensive income (loss) Change in cumulative translation adjustment $ 40 $ 40 $ (28 ) $ (28 ) Defined benefit pension and other postretirement benefit plans: Amortization of unrecognized prior service credits (29 ) (22 ) (30 ) (22 ) Derivatives and hedging: Unrealized gain (loss) during period (3 ) (2 ) 103 78 Reclassification adjustment for (gains) losses included in net income, net 8 6 (17 ) (13 ) Total other comprehensive income (loss) $ 16 $ 22 $ 28 $ 15 |
EARNINGS AND DIVIDENDS PER SHAR
EARNINGS AND DIVIDENDS PER SHARE | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
EARNINGS AND DIVIDENDS PER SHARE | 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: Third Quarter First Nine Months (In millions, except per share amounts) 2019 2018 2019 2018 Numerator Earnings attributable to Eastman, net of tax $ 266 $ 412 $ 733 $ 1,046 Denominator Weighted average shares used for basic EPS 136.8 140.6 137.9 141.7 Dilutive effect of stock options and other awards 1.0 1.8 1.0 2.0 Weighted average shares used for diluted EPS 137.8 142.4 138.9 143.7 (Calculated using whole dollars and shares) EPS Basic $ 1.95 $ 2.93 $ 5.31 $ 7.38 Diluted $ 1.93 $ 2.89 $ 5.27 $ 7.28 Shares underlying stock options excluded from third quarter and first nine months 2019 calculations of diluted EPS were 2,620,529 and 2,219,514 , respectively, because the grant 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. Third quarter and first nine months 2019 reflect the impact of repurchases of 1,032,623 and 4,282,409 shares, respectively. Shares underlying stock options excluded from both third quarter and first nine months 2018 calculations of diluted EPS were 619,706 because the grant 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. Third quarter and first nine months 2018 reflect the impact of repurchases of 1,263,868 and 3,673,642 shares, respectively. The Company declared cash dividends of $0.62 and $0.56 per share in third quarter 2019 and 2018 , respectively, and $1.86 and $1.68 per share in first nine months 2019 and 2018 , respectively. |
ASSETS IMPAIRMENTS AND RESTRUCT
ASSETS IMPAIRMENTS AND RESTRUCTURING | 9 Months Ended |
Sep. 30, 2019 | |
Restructuring Costs and Asset Impairment Charges [Abstract] | |
ASSET IMPAIRMENTS AND RESTRUCTURING | ASSET IMPAIRMENTS AND RESTRUCTURING CHARGES, NET Third Quarter First Nine Months (Dollars in millions) 2019 2018 2019 2018 Severance charges $ 1 $ — $ 45 $ 6 Other restructuring costs 1 — 7 — Total $ 2 $ — $ 52 $ 6 Third quarter and first nine months 2019 restructuring charges included $2 million and $48 million , respectively, for severance and related costs as part of business improvement and cost reduction initiatives. First nine months 2019 also included an additional $4 million restructuring charge related to a capital project in the Additives & Functional Products ("AFP") segment that was discontinued in 2016. In first nine months 2018 , the Company recognized restructuring charges of $6 million for corporate severance. Changes in Reserves The following table summarizes the changes in asset impairments and restructuring charges and gains, the non-cash reductions attributable to asset impairments, and the cash reductions in restructuring reserves for severance costs and site closure costs paid in first nine months 2019 and full year 2018 : (Dollars in millions) Balance at January 1, 2019 Provision/ Adjustments Non-cash Reductions/ Cash Reductions Balance at September 30, 2019 Severance costs $ 6 $ 44 $ — $ (25 ) $ 25 Other restructuring costs 8 8 1 (6 ) 11 Total $ 14 $ 52 $ 1 $ (31 ) $ 36 (Dollars in millions) Balance at January 1, 2018 Provision/ Adjustments Non-cash Reductions/ Additions Cash Reductions Balance at December 31, 2018 Non-cash charges $ — $ 39 $ (39 ) $ — $ — Severance costs 19 6 1 (20 ) 6 Other restructuring costs 10 — — (2 ) 8 Total $ 29 $ 45 $ (38 ) $ (22 ) $ 14 Substantially all severance costs remaining are expected to be applied to the reserves within one year. |
SHARE-BASED COMPENSATION AWARDS
SHARE-BASED COMPENSATION AWARDS | 9 Months Ended |
Sep. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Share-based Payment Arrangement [Text Block] | SHARE-BASED COMPENSATION AWARDS The Company utilizes share-based awards under employee and non-employee director compensation programs. These share-based awards have included restricted and unrestricted stock, restricted stock units, stock options, and performance shares. In third quarter 2019 and 2018 , $13 million and $15 million , respectively, of compensation expense before tax were recognized in "Selling, general and administrative expenses" in the Unaudited Consolidated Statements of Earnings, Comprehensive Income and Retained Earnings for all share-based awards. The impact on third quarter 2019 and 2018 net earnings of $9 million and $12 million , respectively, is net of deferred tax expense related to share-based award compensation for each period. In first nine months 2019 and 2018 , $46 million and $53 million , respectively, of compensation expense before tax were recognized in "Selling, general and administrative expenses" in the Unaudited Consolidated Statements of Earnings, Comprehensive Income and Retained Earnings for all share-based awards. The impact on first nine months 2019 and 2018 net earnings of $34 million and $40 million , respectively, is net of deferred tax expense related to share-based award compensation for each period. For additional information regarding share-based compensation plans and awards, see Note 17, "Share-Based Compensation Plans and Awards" , to the consolidated financial statements in Part II, Item 8 of the Company's 2018 Annual Report on Form 10-K . |
OTHER (INCOME) CHARGES, NET (No
OTHER (INCOME) CHARGES, NET (Notes) | 9 Months Ended |
Sep. 30, 2019 | |
Other Income and Expenses [Abstract] | |
Other Income and Other Expense Disclosure [Text Block] | OTHER (INCOME) CHARGES, NET Third Quarter First Nine Months (Dollars in millions) 2019 2018 2019 2018 Foreign exchange transaction (gains) losses, net $ 4 $ 6 $ 6 $ 13 Currency transaction costs resulting from tax law changes and outside-U.S. entity reorganizations — — — 13 (Income) loss from equity investments and other investment (gains) losses, net (2 ) (3 ) (8 ) (15 ) Coal gasification incident property insurance — — — (65 ) Other, net 1 3 2 4 Other (income) charges, net $ 3 $ 6 $ — $ (50 ) |
SUPPLEMENTAL CASH FLOW INFORMAT
SUPPLEMENTAL CASH FLOW INFORMATION | 9 Months Ended |
Sep. 30, 2019 | |
Supplemental Cash Flow Information [Abstract] | |
SUPPLEMENTAL CASH FLOW INFORMATION | SUPPLEMENTAL CASH FLOW INFORMATION Included in the line item "Other items, net" of the "Operating activities" section of the Unaudited Consolidated Statements of Cash Flows are the following changes to Unaudited Consolidated Statements of Financial Position: (Dollars in millions) First Nine Months 2019 2018 Other current assets (1) $ 23 $ (93 ) Other noncurrent assets 13 25 Payables and other current liabilities 79 28 Long-term liabilities and equity (25 ) (35 ) Total $ 90 $ (75 ) (1) First nine months 2018 includes a $65 million insurance receivable from final settlement from the disruption of the Kingsport site's coal gasification operations area resulting from the previously reported October 4, 2017 incident. The above changes resulted primarily from accrued taxes, deferred taxes, environmental liabilities, monetized positions from raw material and energy, currency, and certain interest rate hedges, prepaid insurance, miscellaneous deferrals, value-added taxes, and other miscellaneous receivables and accruals. |
SEGMENT AND REGIONAL SALES INFO
SEGMENT AND REGIONAL SALES INFORMATION | 9 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | SEGMENT AND REGIONAL SALES INFORMATION Eastman's products and operations are managed and reported in four operating segments: Additives & Functional Products ("AFP"), Advanced Materials ("AM"), Chemical Intermediates ("CI"), and Fibers. The economic factors that impact the nature, amount, timing, and uncertainty of revenue and cash flows vary between the Company's business operating segments and the geographical regions in which they serve. For disaggregation of revenue by major product lines and regions for each business operating segment, see Note 19, "Segment Information" , to the consolidated financial statements in Part II, Item 8 of the Company's 2018 Annual Report on Form 10-K . For additional financial information for each segment, see Part I, Item 1, "Business - Business Segments", in the Company's 2018 Annual Report on Form 10-K . The timing of Eastman's customer billings does not always match the timing of revenue recognition. When the Company is entitled to bill a customer in advance of the recognition of revenue, a contract liability is recognized. When the Company is not entitled to bill a customer until a period after the related recognition of revenue, a contract asset is recognized. Contract assets represent the Company's right to consideration for the exchange of goods under a contract, but which are not yet billable to a customer for consignment inventory or pursuant to certain shipping terms. Contract liabilities were not material as of September 30, 2019 or December 31, 2018 . Contract assets were $58 million and $62 million as of September 30, 2019 and December 31, 2018 , respectively, and are included as a component of "Miscellaneous receivables" in the Unaudited Consolidated Statements of Financial Position. (Dollars in millions) Third Quarter First Nine Months Sales by Segment 2019 2018 2019 2018 Additives & Functional Products $ 832 $ 915 $ 2,510 $ 2,796 Advanced Materials 697 709 2,050 2,131 Chemical Intermediates 579 703 1,865 2,142 Fibers 217 220 643 706 Total Sales $ 2,325 $ 2,547 $ 7,068 $ 7,775 (Dollars in millions) Third Quarter First Nine Months Earnings Before Interest and Taxes by Segment 2019 2018 2019 2018 Additives & Functional Products $ 144 $ 186 $ 437 $ 554 Advanced Materials 159 153 406 438 Chemical Intermediates 34 109 170 264 Fibers 51 84 144 210 Total Earnings Before Interest and Taxes by Operating Segment 388 532 1,157 1,466 Other Growth initiatives and businesses not allocated to operating segments (26 ) (26 ) (78 ) (79 ) Pension and other postretirement benefits income (expense), net not allocated to operating segments 12 20 35 61 Asset impairments and restructuring charges, net (2 ) — (48 ) (6 ) Other income (charges), net not allocated to operating segments (5 ) (9 ) (8 ) (25 ) Total Earnings Before Interest and Taxes $ 367 $ 517 $ 1,058 $ 1,417 (Dollars in millions) September 30, December 31, Assets by Segment (1) 2019 2018 Additives & Functional Products $ 6,491 $ 6,545 Advanced Materials 4,478 4,456 Chemical Intermediates 2,848 2,934 Fibers 1,030 978 Total Assets by Operating Segment 14,847 14,913 Corporate Assets 1,290 1,082 Total Assets $ 16,137 $ 15,995 (1) Segment assets include accounts receivable, inventory, fixed assets, goodwill, and intangible assets. (Dollars in millions) Third Quarter First Nine Months Sales by Customer Location 2019 2018 2019 2018 United States and Canada $ 966 $ 1,083 $ 2,961 $ 3,291 Asia Pacific 602 665 1,729 1,946 Europe, Middle East, and Africa 611 649 1,949 2,101 Latin America 146 150 429 437 Total Sales $ 2,325 $ 2,547 $ 7,068 $ 7,775 |
SIGNIFICANT ACCOUNTING POLICI_2
SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
Basis of Presentation [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared by Eastman Chemical Company ("Eastman" or the "Company") in accordance and consistent with the accounting policies stated in the Company's 2018 Annual Report on Form 10-K , and should be read in conjunction with the consolidated financial statements in Part II, Item 8 of that report, with the exception of the items noted below. The December 31, 2018 financial position data included herein was derived from the audited consolidated financial statements included in the 2018 Annual Report on Form 10-K but does not include all disclosures required by accounting principles generally accepted in the United States ("GAAP"). In the opinion of management, the unaudited consolidated financial statements include all normal recurring adjustments necessary for fair statement of the interim financial information in conformity with GAAP. These statements contain some amounts that are based upon management estimates and judgments. Future actual results could differ from such current estimates. The unaudited consolidated financial statements include assets, liabilities, sales revenue, and expenses of all majority-owned subsidiaries and joint ventures in which a controlling interest is maintained. Eastman accounts for other joint ventures and investments where it exercises significant influence on the equity basis. Intercompany transactions and balances are eliminated in consolidation. |
SIGNIFICANT ACCOUNTING POLICI_3
SIGNIFICANT ACCOUNTING POLICIES Recently Issued Accounting Standards (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Changes and Error Corrections [Abstract] | |
New Accounting Pronouncements, Policy [Policy Text Block] | Recently Adopted Accounting Standards Accounting Standards Update ("ASU") 2016-02 Leases: On January 1, 2019, Eastman adopted this standard, and related releases, under the modified retrospective optional transition method such that prior period financial statements have not been adjusted to reflect the impact of the new standard and adoption did not result in an impact to retained earnings. Upon adoption, operating right-to-use assets and lease liabilities were $208 million . The new standard establishes two types of leases: finance and operating. Both finance and operating leases have associated right-to-use assets and lease liabilities that have been valued at the present value of the lease payments and recognized on the Unaudited Consolidated Statement of Financial Position. For further information, see Note 8, "Leases and Off Balance Sheet Items" . ASU 2018-02 Income Statement - Reporting Comprehensive Income: On January 1, 2019, Eastman adopted this standard in the current period resulting in the reclassification of $20 million of stranded tax expense from accumulated other comprehensive income (loss) ("AOCI") to retained earnings as a result of the 2017 Tax Cuts and Jobs Act ("Tax Reform Act"). The amount of the reclassification is the effect of the change in the U.S. federal corporate income tax rate on the gross deferred tax amounts and related valuation allowances related to items remaining in AOCI. ASU 2018-15 Internal-Use Software - Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract: On January 1, 2019, Eastman adopted this standard prospectively which did not result in a material impact on the Company's financial statements and related disclosures. ASU 2018-16 Derivatives and Hedging - Inclusion of the Secured Overnight Financing Rate ("SOFR") Overnight Index Swap ("OIS") Rate as a Benchmark Interest Rate for Hedge Accounting Purposes: On January 1, 2019, Eastman adopted this standard prospectively for qualifying new or redesignated hedging relationships. Management does not expect the adoption of this standard will materially impact the Company's financial statements and related disclosures. Accounting Standards Issued But Not Adopted as of September 30, 2019 ASU 2016-13 Financial Instruments - Credit Losses: In June 2016, the Financial Accounting Standards Board ("FASB") issued this standard relating to credit losses and subsequent related releases. The amendments require a financial asset (including trade receivables) to be presented at the net amount expected to be collected through the use of allowances for credit losses valuation account. The income statement will reflect the measurement of credit losses for newly recognized financial assets, as well as the expected increases or decreases of expected credit losses that have taken place during the period. This standard is effective for annual reporting periods beginning after December 15, 2019, including interim periods within that reporting period and early adoption is permitted, including adoption in an interim period, beginning after December 15, 2018. The new standard application is mixed among the various elements that include modified retrospective and prospective transition methods. Management does not expect that changes in its accounting required by the new standard will materially impact the Company's financial statements and related disclosures. ASU 2018-13 Fair Value Measurement - Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement: In August 2018, the FASB issued this update as a part of its disclosure framework project to improve the effectiveness of disclosures in the notes to financial statements. The primary changes applicable to Eastman in this update are the disclosures of fair value levels, assessment thereof, and transfers between those levels. This standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early adoption was permitted upon issuance of this update and an entity is permitted to early adopt any removed or modified disclosures upon issuance of this update and delay adoption of the additional disclosures until the effective date. Certain disclosure amendments are to be applied prospectively for only the most recent interim or annual period presented, while other amendments are to be applied retrospectively to all periods presented. Management does not expect that changes required by the new standard will materially impact the Company's related disclosures. ASU 2018-14 Retirement Benefits - Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans: In August 2018, the FASB issued this update as a part of its disclosure framework project to improve the effectiveness of disclosures in the notes to financial statements. The primary change impacting Eastman is the addition of disclosures related to significant gains and losses related to changes in the benefit obligation for the period and weighted-average interest crediting rates for cash balance plans. This standard is effective for fiscal years ending after December 15, 2020 and early adoption is permitted. Upon adoption, this update is to be applied on a retrospective basis to all periods presented. Management does not expect that changes required by the new standard will materially impact the Company's related disclosures. ASU 2018-18 Collaborative Arrangements - Clarifying the Interaction between Topic 808 (Collaborative Arrangements) and Topic 606 (Revenue from Contracts with Customers): In November 2018, the FASB issued clarification in regards to which contracts are accounted for under Topic 808 and Topic 606 as well as alignment of guidance between the two pronouncements. This standard is effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Early adoption is permitted. Upon adoption, this update is to be applied retrospectively to the date of initial application of Topic 606. Management is currently evaluating the impact on the Company's financial statements and related disclosures. ASU 2019-01 Leases - Codification Improvements: In March 2019, the FASB issued this update in response to stakeholder inquiries regarding the new leasing standard. This standard is effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Early adoption is permitted. Upon adoption, this update is to be applied as of the adoption date and under the same transition methodology of ASU 2016-02 Leases . Management is currently evaluating the impact on the Company's financial statements and related disclosures. |
INVENTORIES (Tables)
INVENTORIES (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Inventory Disclosure [Abstract] | |
Schedule of inventories | September 30, December 31, (Dollars in millions) 2019 2018 Finished goods $ 1,161 $ 1,143 Work in process 239 262 Raw materials and supplies 571 515 Total inventories at FIFO or average cost 1,971 1,920 Less: LIFO reserve 276 337 Total inventories $ 1,695 $ 1,583 |
PAYABLES AND OTHER CURRENT LI_2
PAYABLES AND OTHER CURRENT LIABILITIES (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Payables and Accruals [Abstract] | |
Schedule of payables and other current liabilities | September 30, December 31, (Dollars in millions) 2019 2018 Trade creditors $ 716 $ 914 Accrued payroll and variable compensation 163 197 Accrued taxes 94 94 Other 465 403 Total payables and other current liabilities $ 1,438 $ 1,608 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | Third Quarter First Nine Months (Dollars in millions) 2019 2018 2019 2018 $ % $ % $ % $ % Provision for income taxes and tax rate $ 46 15 % $ 46 10 % $ 158 18 % $ 190 15 % |
BORROWINGS (Tables)
BORROWINGS (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Long-term Borrowings | September 30, December 31, (Dollars in millions) 2019 2018 Borrowings consisted of: 2.7% notes due January 2020 $ 250 $ 250 4.5% notes due January 2021 185 185 3.5% notes due December 2021 298 297 3.6% notes due August 2022 740 739 1.50% notes due May 2023 (1) 815 855 7 1/4% debentures due January 2024 198 197 7 5/8% debentures due June 2024 43 43 3.8% notes due March 2025 696 691 1.875% notes due November 2026 (1) 539 566 7.60% debentures due February 2027 195 195 4.5% notes due December 2028 492 492 4.8% notes due September 2042 493 493 4.65% notes due October 2044 873 872 Commercial paper and short-term borrowings 392 243 Credit facilities borrowings — 50 Total borrowings 6,209 6,168 Borrowings due within one year 642 243 Long-term borrowings $ 5,567 $ 5,925 (1) The carrying value of the euro-denominated 1.50% notes due May 2023 and 1.875% notes due November 2026 will fluctuate with changes in the euro exchange rate. The carrying value of these euro-denominated borrowings have been designated as non-derivative net investment hedges of a portion of the Company's net investments in euro functional-currency denominated subsidiaries to offset foreign currency fluctuations. |
DERIVATIVE AND NON-DERIVATIVE_2
DERIVATIVE AND NON-DERIVATIVE FINANCIAL INSTRUMENTS (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Cumulative basis adjustments for fair value hedges on balance sheet [Table Text Block] | As of September 30, 2019 and December 31, 2018 , the following amounts were included on the Unaudited Consolidated Statements of Financial Position related to cumulative basis adjustments for fair value hedges. (Dollars in millions) Carrying amount of the hedged liabilities Cumulative amount of fair value hedging loss adjustment included in the carrying amount of the hedged liability Line item in the Unaudited Consolidated Statements of Financial Position in which the hedged item is included September 30, 2019 December 31, 2018 September 30, December 31, 2018 Long-term borrowings (1) $ 763 $ 759 $ (7 ) $ (12 ) (1) At both September 30, 2019 and December 31, 2018 , the cumulative amount of fair value hedging loss adjustment remaining for hedged liabilities for which hedge accounting has been discontinued was $7 million . |
Derivative Instruments, Gain (Loss) [Table Text Block] | The following table presents the effect of fair value and cash flow hedge accounting on the Unaudited Consolidated Statements of Earnings, Comprehensive Income and Retained Earnings for third quarter 2019 and 2018 . Location and Amount of Gain or (Loss) Recognized in Earnings on Fair Value and Cash Flow Hedging Relationships Third Quarter 2019 2018 (Dollars in millions) Sales Cost of Sales Net Interest Expense Sales Cost of Sales Net Interest Expense Total amounts of income and expense line items presented in the Unaudited Consolidated Statements of Earnings, Comprehensive Income and Retained Earnings in which the effects of fair value or cash flow hedges are recognized $ 2,325 $ 1,751 $ 54 $ 2,547 $ 1,819 $ 58 The effects of fair value and cash flow hedging: Gain or (loss) on fair value hedging relationships: Interest contracts (fixed-for-floating interest rate swaps): Hedged items 1 — Derivatives designated as hedging instruments (1 ) — Gain or (loss) on cash flow hedging relationships: Interest contracts (forward starting interest rate and treasury lock swap contracts): Amount reclassified from AOCI into earnings (2 ) (2 ) Commodity Contracts: Amount reclassified from AOCI into earnings (14 ) 8 Foreign Exchange Contracts: Amount reclassified from AOCI into earnings 7 7 The following table presents the effect of fair value and cash flow hedge accounting on the Unaudited Consolidated Statements of Earnings, Comprehensive Income and Retained Earnings for first nine months 2019 and 2018 . Location and Amount of Gain or (Loss) Recognized in Earnings on Fair Value and Cash Flow Hedging Relationships First Nine Months 2019 2018 (Dollars in millions) Sales Cost of Sales Net Interest Expense Sales Cost of Sales Net Interest Expense Total amounts of income and expense line items presented in the Unaudited Consolidated Statements of Earnings, Comprehensive Income and Retained Earnings in which the effects of fair value or cash flow hedges are recognized $ 7,068 $ 5,331 $ 165 $ 7,775 $ 5,762 $ 178 The effects of fair value and cash flow hedging: Gain or (loss) on fair value hedging relationships: Interest contracts (fixed-for-floating interest rate swaps): Hedged items 1 — Derivatives designated as hedging instruments (1 ) — Gain or (loss) on cash flow hedging relationships: Interest contracts (forward starting interest rate and treasury lock swap contracts): Amount reclassified from AOCI into earnings (4 ) (4 ) Commodity Contracts: Amount reclassified from AOCI into earnings (25 ) 3 Foreign Exchange Contracts: Amount reclassified from AOCI into earnings 20 18 |
Schedule of Notional Amounts of Outstanding Derivative Positions [Table Text Block] | The following table presents the notional amounts outstanding at September 30, 2019 and December 31, 2018 associated with Eastman's hedging programs. Notional Outstanding September 30, 2019 December 31, 2018 Derivatives designated as cash flow hedges: Foreign Exchange Forward and Option Contracts (in millions) EUR/USD (in EUR) €603 €263 Commodity Forward and Collar Contracts Feedstock (in million barrels) 2 5 Energy (in million british thermal units) 33 40 Derivatives designated as fair value hedges: Fixed-for-floating interest rate swaps (in millions) $75 $75 Derivatives designated as net investment hedges: Cross-currency interest rate swaps (in millions) EUR/USD (in EUR) €851 €851 Non-derivatives designated as net investment hedges: Foreign Currency Net Investment Hedges (in millions) EUR/USD (in EUR) €1,242 €1,241 |
Schedule of Derivative Instruments, Effect on Other Comprehensive Income (Loss) | The following table presents the effect of the Company's hedging instruments on "Other comprehensive income (loss), net of tax" ("OCI") and financial performance for third quarter and first nine months 2019 and 2018 . Change in amount of after tax gain (loss) recognized in OCI on derivatives Pre-tax amount of gain (loss) reclassified from OCI into earnings (Dollars in millions) Third Quarter First Nine Months Third Quarter First Nine Months Hedging Relationships 2019 2018 2019 2018 2019 2018 2019 2018 Derivatives in cash flow hedging relationships: Commodity contracts $ (1 ) $ 28 $ (7 ) $ 57 $ (14 ) $ 8 $ (25 ) $ 3 Foreign exchange contracts 16 (2 ) 10 5 7 7 20 18 Forward starting interest rate and treasury lock swap contracts 1 1 3 3 (2 ) (2 ) (4 ) (4 ) Non-derivatives in net investment hedging relationships (pre-tax): Net investment hedges 60 12 68 51 — — — — Derivatives in net investment hedging relationships (pre-tax): Cross-currency interest rate swaps 40 3 46 18 — — — — Cross-currency interest rate swaps excluded component 9 (1 ) 22 (12 ) — — — — |
Financial assets and liabilities valued on a recurring basis | The following table presents the financial assets and liabilities valued on a recurring and gross basis and includes where the financial assets and liabilities are located within the Unaudited Consolidated Statements of Financial Position as of September 30, 2019 and December 31, 2018 . The Financial Position and Fair Value Measurements of Hedging Instruments on a Gross Basis (Dollars in millions) Derivative Type Statements of Financial Position Classification September 30, 2019 Level 2 December 31, 2018 Level 2 Derivatives designated as cash flow hedges: Commodity contracts Other current assets $ 1 $ 4 Foreign exchange contracts Other current assets 23 15 Foreign exchange contracts Other noncurrent assets 9 4 Derivatives designated as fair value hedges: Fixed-for-floating interest rate swap Other current assets — 1 Derivatives designated as net investment hedges: Cross-currency interest rate swaps Other noncurrent assets 94 26 Total Derivative Assets $ 127 $ 50 Derivatives designated as cash flow hedges: Commodity contracts Payables and other current liabilities $ 26 $ 24 Commodity contracts Other long-term liabilities 5 5 Derivatives designated as fair value hedges: Fixed-for-floating interest rate swap Long-term borrowings — 4 Total Derivative Liabilities $ 31 $ 33 Total Net Derivative Assets (Liabilities) $ 96 $ 17 |
RETIREMENT PLANS (Tables)
RETIREMENT PLANS (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Retirement Benefits [Abstract] | |
Components of net periodic benefit cost | Components of net periodic benefit (credit) cost were as follows: Third Quarter Pension Plans Other Postretirement Benefit Plans 2019 2018 2019 2018 (Dollars in millions) U.S. Non-U.S. U.S. Non-U.S. Service cost $ 6 $ 4 $ 9 $ 3 $ — $ — Interest cost 19 5 16 5 6 6 Expected return on assets (31 ) (8 ) (36 ) (9 ) (2 ) (2 ) Amortization of: Prior service credit, net — — — — (9 ) (10 ) Net periodic benefit (credit) cost $ (6 ) $ 1 $ (11 ) $ (1 ) $ (5 ) $ (6 ) First Nine Months Pension Plans Other Postretirement Benefit Plans 2019 2018 2019 2018 (Dollars in millions) U.S. Non-U.S. U.S. Non-U.S. Service cost $ 20 $ 11 $ 26 $ 11 $ — $ — Interest cost 57 15 50 15 19 17 Expected return on assets (96 ) (24 ) (110 ) (28 ) (4 ) (4 ) Amortization of: Prior service credit, net — — — — (29 ) (30 ) Net periodic benefit (credit) cost $ (19 ) $ 2 $ (34 ) $ (2 ) $ (14 ) $ (17 ) |
LEASES AND OFF BALANCE SHEET _2
LEASES AND OFF BALANCE SHEET ITEMS LEASES (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Lessee, Operating Lease, Liability, Maturity [Table Text Block] | As of September 30, 2019 , reconciliation of minimum lease payments and operating lease liabilities is provided below: (Dollars in millions) Operating lease liabilities Remainder of 2019 $ 17 2020 58 2021 46 2022 36 2023 24 2024 and beyond 39 Total minimum lease payments 220 Less: amounts of lease payments representing interest 23 Present value of future minimum lease payments 197 Less: current obligations under leases 55 Long-term lease obligations $ 142 |
Lease, Cost [Table Text Block] | Lease costs during the period and other information is provided below: Third Quarter First Nine Months (Dollars in millions) 2019 2019 Lease costs: Operating lease costs $ 17 $ 49 Short-term lease costs 10 30 Sublease income — (1 ) Total $ 27 $ 78 Other operating lease information: Cash paid for amounts included in the measurement of lease liabilities $ 17 $ 52 Right-to-use assets obtained in exchange for new lease liabilities 15 36 Weighted-average remaining lease term, in years 5 Weighted-average discount rate 4.1 % |
ENVIRONMENTAL MATTERS AND ASS_2
ENVIRONMENTAL MATTERS AND ASSET RETIREMENT OBLIGATIONS (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Accrual for Environmental Loss Contingencies Disclosure [Abstract] | |
Schedule of environmental liabilities, current and non-current | (Dollars in millions) September 30, 2019 December 31, 2018 Environmental contingent liabilities, current $ 20 $ 25 Environmental contingent liabilities, long-term 270 271 Total $ 290 $ 296 |
Schedule of changes to environmental remediation liabilities | Changes in the reserves for environmental remediation liabilities during first nine months 2019 and full year 2018 are summarized below: (Dollars in millions) Environmental Remediation Liabilities Balance at December 31, 2017 $ 280 Changes in estimates recognized in earnings and other 7 Cash reductions (16 ) Balance at December 31, 2018 271 Changes in estimates recognized in earnings and other 3 Cash reductions (11 ) Balance at September 30, 2019 $ 263 |
STOCKHOLDERS' EQUITY (Tables)
STOCKHOLDERS' EQUITY (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Stockholders' Equity Note [Abstract] | |
Reconciliation of the changes in stockholders' equity | Reconciliations of the changes in stockholders' equity for third quarter 2019 and 2018 are provided below: (Dollars in millions, except per share amount) Common Stock at Par Value Additional Paid-in Capital Retained Earnings Accumulated Other Comprehensive Income (Loss) Treasury Stock at Cost Total Eastman Stockholders' Equity Noncontrolling Interest Total Equity Balance at June 30, 2019 $ 2 $ 2,079 $ 7,848 $ (235 ) $ (3,825 ) $ 5,869 $ 77 $ 5,946 Net Earnings — — 266 — — 266 1 267 Cash Dividends Declared (1) — — (85 ) — — (85 ) — (85 ) Other Comprehensive Income (Loss) — — — 32 — 32 — 32 Share Based Compensation Expense (2) — 13 — — — 13 — 13 Other — — — — — — (1 ) (1 ) Share Repurchase — — — — (75 ) (75 ) — (75 ) Balance at September 30, 2019 $ 2 $ 2,092 $ 8,029 $ (203 ) $ (3,900 ) $ 6,020 $ 77 $ 6,097 (Dollars in millions, except per share amount) Common Stock at Par Value Additional Paid-in Capital Retained Earnings Accumulated Other Comprehensive Income (Loss) Treasury Stock at Cost Total Eastman Stockholders' Equity Noncontrolling Interest Total Equity Balance at June 30, 2018 $ 2 $ 2,021 $ 7,292 $ (193 ) $ (3,425 ) $ 5,697 $ 77 $ 5,774 Net Earnings — — 412 — — 412 1 413 Cash Dividends Declared (1) ($0.56 per share) — — (78 ) — — (78 ) — (78 ) Other Comprehensive Income (Loss) — — — (1 ) — (1 ) — (1 ) Share Based Compensation Expense (2) — 15 — — — 15 — 15 Stock Option Exercises — 1 — — — 1 — 1 Other — (1 ) — — — (1 ) (1 ) (2 ) Share Repurchase — — — — (125 ) (125 ) — (125 ) Distributions to noncontrolling interest — — — — — — (2 ) (2 ) Balance at September 30, 2018 $ 2 $ 2,036 $ 7,626 $ (194 ) $ (3,550 ) $ 5,920 $ 75 $ 5,995 (1) Cash dividends declared consists of cash dividends paid and dividends declared but unpaid. (2) Share-based compensation expense is the fair value of share-based awards. Reconciliations of the changes in stockholders' equity for first nine months 2019 and 2018 are provided below: (Dollars in millions, except per share amount) Common Stock at Par Value Additional Paid-in Capital Retained Earnings Accumulated Other Comprehensive Income (Loss) Treasury Stock at Cost Total Eastman Stockholders' Equity Noncontrolling Interest Total Equity Balance at December 31, 2018 $ 2 $ 2,048 $ 7,573 $ (245 ) $ (3,575 ) $ 5,803 $ 75 $ 5,878 Cumulative Effect of Adoption of New Accounting Standards (1) — — (20 ) 20 — — — — Net Earnings — — 733 — — 733 2 735 Cash Dividends Declared (2) ($1.86 per share) — — (257 ) — — (257 ) — (257 ) Other Comprehensive Income (Loss) — — — 22 — 22 — 22 Share-Based Compensation Expense (3) — 46 — — — 46 — 46 Stock Option Exercises — 8 — — — 8 — 8 Other (4) — (10 ) — — — (10 ) — (10 ) Share Repurchases — — — — (325 ) (325 ) — (325 ) Balance at September 30, 2019 $ 2 $ 2,092 $ 8,029 $ (203 ) $ (3,900 ) $ 6,020 $ 77 $ 6,097 (Dollars in millions, except per share amount) Common Stock at Par Value Additional Paid-in Capital Retained Earnings Accumulated Other Comprehensive Income (Loss) Treasury Stock at Cost Total Eastman Stockholders' Equity Noncontrolling Interest Total Equity Balance at December 31, 2017 $ 2 $ 1,983 $ 6,802 $ (209 ) $ (3,175 ) $ 5,403 $ 77 $ 5,480 Cumulative Effect of Adoption of New Accounting Standards (5) — — 16 — — 16 — 16 Net Earnings — — 1,046 — — 1,046 3 1,049 Cash Dividends Declared (2) ($1.68 per share) — — (238 ) — — (238 ) — (238 ) Other Comprehensive Income (Loss) — — — 15 — 15 — 15 Share-Based Compensation Expense (3) — 53 — — — 53 — 53 Stock Option Exercises — 17 — — — 17 — 17 Other (4) — (17 ) — — — (17 ) — (17 ) Share Repurchases — — — — (375 ) (375 ) — (375 ) Distributions to Noncontrolling Interest — — — — — — (5 ) (5 ) Balance at September 30, 2018 $ 2 $ 2,036 $ 7,626 $ (194 ) $ (3,550 ) $ 5,920 $ 75 $ 5,995 (1) On January 1, 2019, the Company adopted a new accounting standard for reporting comprehensive income, which resulted in a reclassification of stranded tax effects from the Tax Reform Act from AOCI to retained earnings. See Note 1, "Significant Accounting Policies" , for additional information. (2) Cash dividends declared consists of cash dividends paid and dividends declared but unpaid. (3) Share-based compensation expense is the fair value of share-based awards. (4) Additional paid-in capital includes value of shares withheld for employees' taxes on vesting of share-based compensation awards. (5) On January 1, 2018, the Company adopted new accounting standards for revenue recognition, income taxes, and derivatives and hedging, which resulted in adjustments to beginning retained earnings. See Note 1, "Significant Accounting Policies" , to the consolidated financial statements in Part II, Item 8 of the Company's 2018 Annual Report on Form 10-K for specific amounts related to each standard. |
Accumulated Other Comprehensive Income (Loss) | (Dollars in millions) Cumulative Translation Adjustment Benefit Plans Unrecognized Prior Service Credits Unrealized Gains (Losses) on Derivative Instruments Unrealized Losses on Investments Accumulated Other Comprehensive Income (Loss) Balance at December 31, 2017 $ (296 ) $ 136 $ (48 ) $ (1 ) $ (209 ) Period change (13 ) (30 ) 7 — (36 ) Balance at December 31, 2018 (309 ) 106 (41 ) (1 ) (245 ) Period change (1) 40 7 (5 ) — 42 Balance at September 30, 2019 $ (269 ) $ 113 $ (46 ) $ (1 ) $ (203 ) (1) Benefit plans unrecognized prior service credits includes $29 million reclassification of stranded tax expense from AOCI to retained earnings and unrealized gains (losses) on derivative instruments includes $9 million reclassification of stranded tax benefit from AOCI to retained earnings. See Note 1, "Significant Accounting Policies" , for additional information. |
Schedule of components of comprehensive income (loss) before tax and net of tax effects | Components of other comprehensive income recognized in the Unaudited Consolidated Statements of Earnings, Comprehensive Income and Retained Earnings are presented below, before tax and net of tax effects: Third Quarter 2019 2018 (Dollars in millions) Before Tax Net of Tax Before Tax Net of Tax Other comprehensive income (loss) Change in cumulative translation adjustment $ 23 $ 23 $ (21 ) $ (21 ) Defined benefit pension and other postretirement benefit plans: Amortization of unrecognized prior service credits (9 ) (7 ) (10 ) (7 ) Derivatives and hedging: Unrealized gain (loss) during period 13 10 50 37 Reclassification adjustment for (gains) losses included in net income, net 8 6 (14 ) (10 ) Total other comprehensive income (loss) $ 35 $ 32 $ 5 $ (1 ) First Nine Months 2019 2018 (Dollars in millions) Before Tax Net of Tax Before Tax Net of Tax Other comprehensive income (loss) Change in cumulative translation adjustment $ 40 $ 40 $ (28 ) $ (28 ) Defined benefit pension and other postretirement benefit plans: Amortization of unrecognized prior service credits (29 ) (22 ) (30 ) (22 ) Derivatives and hedging: Unrealized gain (loss) during period (3 ) (2 ) 103 78 Reclassification adjustment for (gains) losses included in net income, net 8 6 (17 ) (13 ) Total other comprehensive income (loss) $ 16 $ 22 $ 28 $ 15 |
EARNINGS AND DIVIDENDS PER SH_2
EARNINGS AND DIVIDENDS PER SHARE (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Earnings per share, basic and diluted | The following table sets forth the computation of basic and diluted earnings per share ("EPS") which are calculated using the treasury stock method: Third Quarter First Nine Months (In millions, except per share amounts) 2019 2018 2019 2018 Numerator Earnings attributable to Eastman, net of tax $ 266 $ 412 $ 733 $ 1,046 Denominator Weighted average shares used for basic EPS 136.8 140.6 137.9 141.7 Dilutive effect of stock options and other awards 1.0 1.8 1.0 2.0 Weighted average shares used for diluted EPS 137.8 142.4 138.9 143.7 (Calculated using whole dollars and shares) EPS Basic $ 1.95 $ 2.93 $ 5.31 $ 7.38 Diluted $ 1.93 $ 2.89 $ 5.27 $ 7.28 |
ASSETS IMPAIRMENTS AND RESTRU_2
ASSETS IMPAIRMENTS AND RESTRUCTURING (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Restructuring Costs and Asset Impairment Charges [Abstract] | |
Restructuring and Related Costs [Table Text Block] | Third Quarter First Nine Months (Dollars in millions) 2019 2018 2019 2018 Severance charges $ 1 $ — $ 45 $ 6 Other restructuring costs 1 — 7 — Total $ 2 $ — $ 52 $ 6 |
Schedule of Restructuring Reserve by Type of Cost [Table Text Block] | The following table summarizes the changes in asset impairments and restructuring charges and gains, the non-cash reductions attributable to asset impairments, and the cash reductions in restructuring reserves for severance costs and site closure costs paid in first nine months 2019 and full year 2018 : (Dollars in millions) Balance at January 1, 2019 Provision/ Adjustments Non-cash Reductions/ Cash Reductions Balance at September 30, 2019 Severance costs $ 6 $ 44 $ — $ (25 ) $ 25 Other restructuring costs 8 8 1 (6 ) 11 Total $ 14 $ 52 $ 1 $ (31 ) $ 36 (Dollars in millions) Balance at January 1, 2018 Provision/ Adjustments Non-cash Reductions/ Additions Cash Reductions Balance at December 31, 2018 Non-cash charges $ — $ 39 $ (39 ) $ — $ — Severance costs 19 6 1 (20 ) 6 Other restructuring costs 10 — — (2 ) 8 Total $ 29 $ 45 $ (38 ) $ (22 ) $ 14 |
OTHER (INCOME) CHARGES, NET (Ta
OTHER (INCOME) CHARGES, NET (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Other Income and Expenses [Abstract] | |
Schedule of Other Nonoperating Income (Expense) [Table Text Block] | Third Quarter First Nine Months (Dollars in millions) 2019 2018 2019 2018 Foreign exchange transaction (gains) losses, net $ 4 $ 6 $ 6 $ 13 Currency transaction costs resulting from tax law changes and outside-U.S. entity reorganizations — — — 13 (Income) loss from equity investments and other investment (gains) losses, net (2 ) (3 ) (8 ) (15 ) Coal gasification incident property insurance — — — (65 ) Other, net 1 3 2 4 Other (income) charges, net $ 3 $ 6 $ — $ (50 ) |
SUPPLEMENTAL CASH FLOW INFORM_2
SUPPLEMENTAL CASH FLOW INFORMATION (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Supplemental Cash Flow Information [Abstract] | |
Schedule of Cash Flow, Supplemental Disclosures | Included in the line item "Other items, net" of the "Operating activities" section of the Unaudited Consolidated Statements of Cash Flows are the following changes to Unaudited Consolidated Statements of Financial Position: (Dollars in millions) First Nine Months 2019 2018 Other current assets (1) $ 23 $ (93 ) Other noncurrent assets 13 25 Payables and other current liabilities 79 28 Long-term liabilities and equity (25 ) (35 ) Total $ 90 $ (75 ) |
SEGMENT AND REGIONAL SALES IN_2
SEGMENT AND REGIONAL SALES INFORMATION (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
Segment Information Disclosure | (Dollars in millions) Third Quarter First Nine Months Sales by Segment 2019 2018 2019 2018 Additives & Functional Products $ 832 $ 915 $ 2,510 $ 2,796 Advanced Materials 697 709 2,050 2,131 Chemical Intermediates 579 703 1,865 2,142 Fibers 217 220 643 706 Total Sales $ 2,325 $ 2,547 $ 7,068 $ 7,775 (Dollars in millions) Third Quarter First Nine Months Earnings Before Interest and Taxes by Segment 2019 2018 2019 2018 Additives & Functional Products $ 144 $ 186 $ 437 $ 554 Advanced Materials 159 153 406 438 Chemical Intermediates 34 109 170 264 Fibers 51 84 144 210 Total Earnings Before Interest and Taxes by Operating Segment 388 532 1,157 1,466 Other Growth initiatives and businesses not allocated to operating segments (26 ) (26 ) (78 ) (79 ) Pension and other postretirement benefits income (expense), net not allocated to operating segments 12 20 35 61 Asset impairments and restructuring charges, net (2 ) — (48 ) (6 ) Other income (charges), net not allocated to operating segments (5 ) (9 ) (8 ) (25 ) Total Earnings Before Interest and Taxes $ 367 $ 517 $ 1,058 $ 1,417 (Dollars in millions) September 30, December 31, Assets by Segment (1) 2019 2018 Additives & Functional Products $ 6,491 $ 6,545 Advanced Materials 4,478 4,456 Chemical Intermediates 2,848 2,934 Fibers 1,030 978 Total Assets by Operating Segment 14,847 14,913 Corporate Assets 1,290 1,082 Total Assets $ 16,137 $ 15,995 (1) Segment assets include accounts receivable, inventory, fixed assets, goodwill, and intangible assets. (Dollars in millions) Third Quarter First Nine Months Sales by Customer Location 2019 2018 2019 2018 United States and Canada $ 966 $ 1,083 $ 2,961 $ 3,291 Asia Pacific 602 665 1,729 1,946 Europe, Middle East, and Africa 611 649 1,949 2,101 Latin America 146 150 429 437 Total Sales $ 2,325 $ 2,547 $ 7,068 $ 7,775 |
SIGNIFICANT ACCOUNTING POLICI_4
SIGNIFICANT ACCOUNTING POLICIES Recently Issued Accounting Standards (Details) $ in Millions | Jan. 01, 2019USD ($) |
Accounting Standards Update 2016-02 [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets | $ 208 |
Accounting Standards Update 2018-02 [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets | $ (20) |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
At FIFO or average cost (approximates current cost) [Abstract] | ||
Finished goods | $ 1,161 | $ 1,143 |
Work in process | 239 | 262 |
Raw materials and supplies | 571 | 515 |
Total inventories at FIFO or average cost | 1,971 | 1,920 |
Less: LIFO reserve | 276 | 337 |
Total inventories | $ 1,695 | $ 1,583 |
Inventories valued on the LIFO method | 50.00% | 55.00% |
PAYABLES AND OTHER CURRENT LI_3
PAYABLES AND OTHER CURRENT LIABILITIES (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Payables and Accruals [Abstract] | ||
Trade creditors | $ 716 | $ 914 |
Accrued payroll and variable compensation | 163 | 197 |
Accrued taxes | 94 | 94 |
Other | 465 | 403 |
Total payables and other current liabilities | $ 1,438 | $ 1,608 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Income Tax Examination [Line Items] | ||||
Provision for income taxes | $ 46 | $ 46 | $ 158 | $ 190 |
Effective Income Tax Rate Reconciliation, Percent | 15.00% | 10.00% | 18.00% | 15.00% |
Effective Income Tax Rate Reconciliation, Income Tax Expense (Benefit) Resulting from Tax Reform | $ (14) | $ (4) | ||
Effective Income Tax Rate Reconciliation, Prior Year Income Taxes, Amount | (14) | (14) | ||
Effective Income Tax Rate Reconciliation, Tax Credit, Amount | 17 | $ 17 | ||
Effective Income Tax Rate Reconciliation, Repatriation of Foreign Earnings, Amount | $ 10 |
BORROWINGS Part 1 (Details) Sch
BORROWINGS Part 1 (Details) Schedule of Long-term Debt Instruments - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2019 | Dec. 31, 2018 | ||
Debt Instrument [Line Items] | |||
Total Borrowings | $ 6,209 | $ 6,168 | |
Borrowings due within one year | 642 | 243 | |
Long-term borrowings | 5,567 | 5,925 | |
2.7% notes due January 2020 [Member] | |||
Debt Instrument [Line Items] | |||
Long-term Debt | 250 | ||
Borrowings due within one year | $ 250 | ||
Debt Instrument, Interest Rate, Stated Percentage | 2.70% | ||
Debt Instrument, Maturity Date | Jan. 31, 2020 | ||
4.5% notes due January 2021 [Member] | |||
Debt Instrument [Line Items] | |||
Long-term Debt | $ 185 | 185 | |
Debt Instrument, Interest Rate, Stated Percentage | 4.50% | ||
Debt Instrument, Maturity Date | Jan. 31, 2021 | ||
3.5% Notes Due Dec 2021 [Member] | |||
Debt Instrument [Line Items] | |||
Long-term Debt | $ 298 | 297 | |
Debt Instrument, Interest Rate, Stated Percentage | 3.50% | ||
Debt Instrument, Maturity Date | Dec. 31, 2021 | ||
3.6% notes due August 2022 [Member] | |||
Debt Instrument [Line Items] | |||
Long-term Debt | $ 740 | 739 | |
Debt Instrument, Interest Rate, Stated Percentage | 3.60% | ||
Debt Instrument, Maturity Date | Aug. 31, 2022 | ||
1.5% notes due May 2023 [Member] | |||
Debt Instrument [Line Items] | |||
Long-term Debt | [1] | $ 815 | 855 |
Debt Instrument, Interest Rate, Stated Percentage | 1.50% | ||
Debt Instrument, Maturity Date | May 31, 2023 | ||
7 1/4% debentures due January 2024 [Member] | |||
Debt Instrument [Line Items] | |||
Long-term Debt | $ 198 | 197 | |
Debt Instrument, Interest Rate, Stated Percentage | 7.25% | ||
Debt Instrument, Maturity Date | Jan. 31, 2024 | ||
7 5/8% debentures due June 2024 [Member] | |||
Debt Instrument [Line Items] | |||
Long-term Debt | $ 43 | 43 | |
Debt Instrument, Interest Rate, Stated Percentage | 7.625% | ||
Debt Instrument, Maturity Date | Jun. 30, 2024 | ||
3.8% notes due March 2025 [Member] | |||
Debt Instrument [Line Items] | |||
Long-term Debt | $ 696 | 691 | |
Debt Instrument, Interest Rate, Stated Percentage | 3.80% | ||
Debt Instrument, Maturity Date | Mar. 31, 2025 | ||
1.875% notes due November 2026 [Member] | |||
Debt Instrument [Line Items] | |||
Long-term Debt | [1] | $ 539 | 566 |
Debt Instrument, Interest Rate, Stated Percentage | 1.875% | ||
Debt Instrument, Maturity Date | Nov. 30, 2026 | ||
7.60% debentures due February 2027 [Member] | |||
Debt Instrument [Line Items] | |||
Long-term Debt | $ 195 | 195 | |
Debt Instrument, Interest Rate, Stated Percentage | 7.60% | ||
Debt Instrument, Maturity Date | Feb. 28, 2027 | ||
4.5% Notes Due Dec 2028 [Member] | |||
Debt Instrument [Line Items] | |||
Long-term Debt | $ 492 | 492 | |
Debt Instrument, Interest Rate, Stated Percentage | 4.50% | ||
Debt Instrument, Maturity Date | Dec. 31, 2028 | ||
4.8% notes due September 2042 [Member] | |||
Debt Instrument [Line Items] | |||
Long-term Debt | $ 493 | 493 | |
Debt Instrument, Interest Rate, Stated Percentage | 4.80% | ||
Debt Instrument, Maturity Date | Sep. 30, 2042 | ||
4.65% notes due October 2044 [Member] | |||
Debt Instrument [Line Items] | |||
Long-term Debt | $ 873 | 872 | |
Debt Instrument, Interest Rate, Stated Percentage | 4.65% | ||
Debt Instrument, Maturity Date | Oct. 31, 2044 | ||
Commercial paper and short-term borrowings [Member] | |||
Debt Instrument [Line Items] | |||
Borrowings due within one year | $ 392 | 243 | |
Credit Facility | |||
Debt Instrument [Line Items] | |||
Long-term Debt | $ 0 | $ 50 | |
[1] | The carrying value of the euro-denominated 1.50% notes due May 2023 and 1.875% notes due November 2026 will fluctuate with changes in the euro exchange rate. The carrying value of these euro-denominated borrowings have been designated as non-derivative net investment hedges of a portion of the Company's net investments in euro functional-currency denominated subsidiaries to offset foreign currency fluctuations. |
BORROWINGS Part 2 (Details) Cre
BORROWINGS Part 2 (Details) Credit Facility and Commercial Paper Borrowings € in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Sep. 30, 2019USD ($) | Dec. 31, 2018USD ($) | Sep. 30, 2019EUR (€) | |
Credit Facilities [Abstract] | ||||||
Borrowings due within one year | $ 642 | $ 642 | $ 243 | |||
Revolving Credit Facility [Member] | ||||||
Credit Facilities [Abstract] | ||||||
Credit Facility, Borrowing Capacity | 1,500 | 1,500 | ||||
Line of Credit Facility, Maximum Month-end Outstanding Amount | $ 0 | 0 | ||||
Line of Credit Facility, Expiration Date | Oct. 31, 2023 | |||||
Commercial Paper [Member] | ||||||
Credit Facilities [Abstract] | ||||||
Commercial Paper | $ 297 | $ 297 | $ 130 | |||
Debt, Weighted Average Interest Rate | 2.29% | 2.29% | 2.91% | 2.29% | ||
A/R Facility [Member] | ||||||
Credit Facilities [Abstract] | ||||||
Credit Facility, Borrowing Capacity | $ 250 | $ 250 | ||||
Line of Credit Facility, Maximum Month-end Outstanding Amount | $ 0 | $ 50 | ||||
Proceeds from Lines of Credit | 110 | $ 100 | $ 125 | |||
Repayments of Lines of Credit | 110 | $ 100 | $ 175 | |||
Line of Credit Facility, Expiration Date | Apr. 30, 2020 | |||||
Debt, Weighted Average Interest Rate | 3.39% | |||||
Factoring facilities [Member] | ||||||
Credit Facilities [Abstract] | ||||||
Credit Facility, Borrowing Capacity | 163 | $ 163 | € 150 | |||
Borrowings due within one year | $ 95 | $ 95 | $ 112 | |||
Line of Credit Facility, Expiration Date | Dec. 31, 2020 | |||||
Debt, Weighted Average Interest Rate | 1.51% | 1.51% | 1.70% | 1.51% |
BORROWINGS Part 3 (Details) Fai
BORROWINGS Part 3 (Details) Fair Value - Fair Value, Recurring [Member] - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Instrument, Fair Value Disclosure | $ 6,726 | $ 6,216 |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Instrument, Fair Value Disclosure | $ 0 | $ 0 |
DERIVATIVE AND NON-DERIVATIVE_3
DERIVATIVE AND NON-DERIVATIVE FINANCIAL INSTRUMENTS Part 1 (Details) - Designated as Hedging Instrument [Member] € in Millions, bbl in Millions, MMBTU in Millions, $ in Millions | 9 Months Ended | 12 Months Ended | ||||||||
Sep. 30, 2019USD ($)bblMMBTU | Sep. 30, 2019EUR (€) | Dec. 31, 2018USD ($)bblMMBTU | Dec. 31, 2018EUR (€) | Sep. 30, 2019EUR (€)bblMMBTU | Dec. 31, 2018EUR (€)bblMMBTU | Oct. 31, 2018USD ($) | Oct. 31, 2018EUR (€) | Jan. 31, 2018USD ($) | Jan. 31, 2018EUR (€) | |
Foreign Exchange Contract [Member] | Euro Member Countries, Euro | Cash Flow Hedging [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Derivative, Notional Amount | € 603 | € 263 | ||||||||
Commodity Contract [Member] | Cash Flow Hedging [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Derivative, Nonmonetary Notional Amount | bbl | 2 | 5 | 2 | 5 | ||||||
Energy Related Derivative [Member] | Cash Flow Hedging [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Derivative, Nonmonetary Notional Amount | MMBTU | 33 | 40 | 33 | 40 | ||||||
Interest Rate Contract [Member] | Fair Value Hedging [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Derivative, Notional Amount | $ | $ 75 | $ 75 | ||||||||
Notes Due January 2021, Notes Due August 2022, Notes Due January 2024, Notes Due March 2025, and Notes Due February 2027 [Member] | Cross Currency Interest Rate Contract [Member] | Euro Member Countries, Euro | Net Investment Hedging [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Derivative, Notional Amount | € 851 | € 851 | ||||||||
Notes Due January 2021 [Member] | Cross Currency Interest Rate Contract [Member] | Euro Member Countries, Euro | Net Investment Hedging [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Debt Instrument, Face Amount | $ 180 | € 150 | ||||||||
Notes Due August 2022 [Member] [Member] | Cross Currency Interest Rate Contract [Member] | Euro Member Countries, Euro | Net Investment Hedging [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Debt Instrument, Face Amount | $ 320 | € 266 | ||||||||
1.50% Notes Due 2023 and 1.875% Notes Due 2026 [Member] | Euro Member Countries, Euro | Net Investment Hedging [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Notional Amount of Nonderivative Instruments | $ 1,400 | € 1,242 | $ 1,400 | € 1,241 | ||||||
Notes Due January 2024 [Member] | Cross Currency Interest Rate Contract [Member] | Euro Member Countries, Euro | Net Investment Hedging [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Debt Instrument, Face Amount | $ 190 | € 165 | ||||||||
3.8% notes due March 2025 [Member] | Cross Currency Interest Rate Contract [Member] | Euro Member Countries, Euro | Net Investment Hedging [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Debt Instrument, Face Amount | 120 | 104 | ||||||||
7.60% debentures due February 2027 [Member] | Cross Currency Interest Rate Contract [Member] | Euro Member Countries, Euro | Net Investment Hedging [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Debt Instrument, Face Amount | $ 190 | € 165 |
DERIVATIVE AND NON-DERIVATIVE_4
DERIVATIVE AND NON-DERIVATIVE FINANCIAL INSTRUMENTS Part 2 (Details) € in Millions, $ in Millions | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2019USD ($) | Sep. 30, 2019EUR (€) | Dec. 31, 2018USD ($) | Dec. 31, 2018EUR (€) | |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | ||||
Derivative Assets [Abstract] | ||||
Derivative Asset, Fair Value, Gross Asset | $ 127 | $ 50 | ||
Derivative Liabilities [Abstract] | ||||
Derivative Liability, Fair Value, Gross Liability | 31 | 33 | ||
Derivative, Fair Value, Net | 96 | 17 | ||
Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | Commodity Contract [Member] | Designated as Hedging Instrument [Member] | Other Current Assets [Member] | ||||
Derivative Assets [Abstract] | ||||
Cash Flow Hedge Derivative Instrument Assets at Fair Value | 1 | 4 | ||
Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | Commodity Contract [Member] | Designated as Hedging Instrument [Member] | Other Current Liabilities [Member] | ||||
Derivative Liabilities [Abstract] | ||||
Cash Flow Hedge Derivative Instrument Liabilities at Fair Value | 26 | 24 | ||
Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | Commodity Contract [Member] | Designated as Hedging Instrument [Member] | Other Noncurrent Liabilities [Member] | ||||
Derivative Liabilities [Abstract] | ||||
Cash Flow Hedge Derivative Instrument Liabilities at Fair Value | 5 | 5 | ||
Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | Foreign Exchange Contract [Member] | Designated as Hedging Instrument [Member] | Other Current Assets [Member] | ||||
Derivative Assets [Abstract] | ||||
Cash Flow Hedge Derivative Instrument Assets at Fair Value | 23 | 15 | ||
Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | Foreign Exchange Contract [Member] | Designated as Hedging Instrument [Member] | Other Noncurrent Assets [Member] | ||||
Derivative Assets [Abstract] | ||||
Cash Flow Hedge Derivative Instrument Assets at Fair Value | 9 | 4 | ||
Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | Interest Rate Contract [Member] | Designated as Hedging Instrument [Member] | Other Current Assets [Member] | ||||
Derivative Assets [Abstract] | ||||
Fair Value Hedge Assets | 0 | 1 | ||
Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | Interest Rate Contract [Member] | Designated as Hedging Instrument [Member] | Other Noncurrent Liabilities [Member] | ||||
Derivative Liabilities [Abstract] | ||||
Fair Value Hedge Liabilities | 0 | 4 | ||
Net Investment Hedging [Member] | Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | Cross Currency Interest Rate Contract [Member] | Designated as Hedging Instrument [Member] | Other Noncurrent Assets [Member] | ||||
Derivative Assets [Abstract] | ||||
Derivative Instruments in Hedges, Net Investment in Foreign Operations, Assets, Fair Value | 94 | 26 | ||
Net Investment Hedging [Member] | Euro Member Countries, Euro | 1.50% Notes Due 2023 and 1.875% Notes Due 2026 [Member] | Designated as Hedging Instrument [Member] | ||||
Non-Derivatives, Carrying Value [Abstract] | ||||
Notional Amount of Nonderivative Instruments | 1,400 | € 1,242 | 1,400 | € 1,241 |
Fair Value Hedging [Member] | Interest Rate Contract [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Hedged Liability, Fair Value Hedge | 763 | 759 | ||
Derivative Liabilities [Abstract] | ||||
Hedged Liability, Discontinued Fair Value Hedge, Cumulative Increase (Decrease) | 7 | 7 | ||
Hedged Liability, Fair Value Hedge, Cumulative Increase (Decrease) | $ (7) | $ (12) |
DERIVATIVE AND NON-DERIVATIVE_5
DERIVATIVE AND NON-DERIVATIVE FINANCIAL INSTRUMENTS Part 3 (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Sales | $ 2,325 | $ 2,547 | $ 7,068 | $ 7,775 | |
Cost of sales | 1,751 | 1,819 | 5,331 | 5,762 | |
Net interest expense | 54 | 58 | 165 | 178 | |
Amount After Tax of Gain (Loss) Recognized in Other Comprehensive Income On Derivatives, Effective Portion [Abstract] | |||||
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax | (5) | $ 7 | |||
Other Comprehensive Income (Loss), Derivatives and Non-derivatives Qualifying as Hedges, before Tax [Abstract] | |||||
Change in cumulative translation adjustment, before tax | 23 | (21) | 40 | (28) | |
Summary of Derivative Instruments [Abstract] | |||||
Monetized positions and mark to market in accumulated other comprehensive income before tax | 30 | 30 | $ (112) | ||
Price Risk Cash Flow Hedge Unrealized Gain to be Reclassified During Next 12 Months | (14) | (14) | |||
Commodity Contract [Member] | Cash Flow Hedging [Member] | |||||
Amount After Tax of Gain (Loss) Recognized in Other Comprehensive Income On Derivatives, Effective Portion [Abstract] | |||||
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax | (1) | 28 | (7) | 57 | |
Commodity Contract [Member] | Cash Flow Hedging [Member] | Cost of Sales [Member] | |||||
Pre-tax Amount of Gain (Loss) reclassified From Accumulated Other Comprehensive Income Into Income (Effective Portion) [Abstract] | |||||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | (14) | 8 | (25) | 3 | |
Foreign Exchange Contract [Member] | Cash Flow Hedging [Member] | |||||
Amount After Tax of Gain (Loss) Recognized in Other Comprehensive Income On Derivatives, Effective Portion [Abstract] | |||||
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax | 16 | (2) | 10 | 5 | |
Foreign Exchange Contract [Member] | Cash Flow Hedging [Member] | Sales [Member] | |||||
Pre-tax Amount of Gain (Loss) reclassified From Accumulated Other Comprehensive Income Into Income (Effective Portion) [Abstract] | |||||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | 7 | 7 | 20 | 18 | |
Interest Rate Swap [Member] | Cash Flow Hedging [Member] | |||||
Amount After Tax of Gain (Loss) Recognized in Other Comprehensive Income On Derivatives, Effective Portion [Abstract] | |||||
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax | 1 | 1 | 3 | 3 | |
Interest Rate Swap [Member] | Cash Flow Hedging [Member] | Net Interest Expense | |||||
Pre-tax Amount of Gain (Loss) reclassified From Accumulated Other Comprehensive Income Into Income (Effective Portion) [Abstract] | |||||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | (2) | (2) | (4) | (4) | |
Interest Rate Contract [Member] | Fair Value Hedging [Member] | |||||
Other Comprehensive Income (Loss), Derivatives and Non-derivatives Qualifying as Hedges, before Tax [Abstract] | |||||
Change in Unrealized Gain (Loss) on Hedged Item in Fair Value Hedge | 1 | 0 | 1 | 0 | |
Interest Rate Contract [Member] | Fair Value Hedging [Member] | Net Interest Expense | |||||
Other Comprehensive Income (Loss), Derivatives and Non-derivatives Qualifying as Hedges, before Tax [Abstract] | |||||
Gain (Loss) on Fair Value Hedges Recognized in Earnings | (1) | 0 | (1) | 0 | |
Foreign Exchange [Member] | Net Investment Hedging [Member] | |||||
Other Comprehensive Income (Loss), Derivatives and Non-derivatives Qualifying as Hedges, before Tax [Abstract] | |||||
Change in cumulative translation adjustment, before tax | 60 | 12 | 68 | 51 | |
Not Designated as Hedging Instrument [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | 5 | 2 | 1 | (4) | |
Cross Currency Interest Rate Contract [Member] | Net Investment Hedging [Member] | |||||
Other Comprehensive Income (Loss), Derivatives and Non-derivatives Qualifying as Hedges, before Tax [Abstract] | |||||
Change in cumulative translation adjustment, before tax | 40 | 3 | 46 | 18 | |
AOCI, Derivative Qualifying as Hedge, Excluded Component | $ 9 | $ (1) | $ 22 | $ (12) |
RETIREMENT PLANS (Details)
RETIREMENT PLANS (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Other Postretirement Benefits Plan [Member] | ||||
Components of net periodic benefit cost [Abstract] | ||||
Service cost | $ 0 | $ 0 | $ 0 | $ 0 |
Interest cost | 6 | 6 | 19 | 17 |
Expected return on assets | (2) | (2) | (4) | (4) |
Prior service credit, net | (9) | (10) | (29) | (30) |
Net periodic benefit (credit) cost | (5) | (6) | (14) | (17) |
UNITED STATES | Pension Plan [Member] | ||||
Components of net periodic benefit cost [Abstract] | ||||
Service cost | 6 | 9 | 20 | 26 |
Interest cost | 19 | 16 | 57 | 50 |
Expected return on assets | (31) | (36) | (96) | (110) |
Prior service credit, net | 0 | 0 | 0 | 0 |
Net periodic benefit (credit) cost | (6) | (11) | (19) | (34) |
Foreign Plan [Member] | Pension Plan [Member] | ||||
Components of net periodic benefit cost [Abstract] | ||||
Service cost | 4 | 3 | 11 | 11 |
Interest cost | 5 | 5 | 15 | 15 |
Expected return on assets | (8) | (9) | (24) | (28) |
Prior service credit, net | 0 | 0 | 0 | 0 |
Net periodic benefit (credit) cost | $ 1 | $ (1) | $ 2 | $ (2) |
LEASES AND OFF BALANCE SHEET _3
LEASES AND OFF BALANCE SHEET ITEMS LEASES (Details) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019USD ($) | Sep. 30, 2019USD ($) | |
Lessee Disclosure [Abstract] | ||
Operating Lease, Right-of-Use Asset | $ 205 | $ 205 |
Operating Lease, Right-of-Use Asset, Reclassified | 8 | 8 |
Lessee, Operating Lease, Liability, Payments, Remainder of Fiscal Year | 17 | 17 |
Lessee, Operating Lease, Liability, Payments, Due Year Two | 58 | 58 |
Lessee, Operating Lease, Liability, Payments, Due Year Three | 46 | 46 |
Lessee, Operating Lease, Liability, Payments, Due Year Four | 36 | 36 |
Lessee, Operating Lease, Liability, Payments, Due Year Five | 24 | 24 |
Lessee, Operating Lease, Liability, Payments, Due after Year Five | 39 | 39 |
Lessee, Operating Lease, Liability, Payments, Due | 220 | 220 |
Lessee, Operating Lease, Liability, Undiscounted Excess Amount | 23 | 23 |
Operating Lease, Liability | 197 | 197 |
Operating Lease, Liability, Current | 55 | 55 |
Operating Lease, Liability, Noncurrent | 142 | 142 |
Lease, Cost [Abstract] | ||
Operating Lease, Cost | 17 | 49 |
Short-term Lease, Cost | 10 | 30 |
Sublease Income | 0 | (1) |
Lease, Cost | 27 | 78 |
Operating Lease, Payments | 17 | 52 |
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability | $ 15 | $ 36 |
Operating Lease, Weighted Average Remaining Lease Term | 5 years | 5 years |
Operating Lease, Weighted Average Discount Rate, Percent | 4.10% | 4.10% |
COMMITMENTS (Details)
COMMITMENTS (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Other Commitments [Line Items] | ||||
Unrecorded Unconditional Purchase Obligation, Purchases | $ 2,800 | |||
Unrecorded Unconditional Purchase Obligation, Term | 30 years | |||
Guarantees [Abstract] | ||||
Term, other guarantees | P30Y | |||
Maximum potential future payment, other guarantees | $ 30 | $ 30 | ||
Transfers and Servicing of Financial Assets [Abstract] | ||||
Receivable Sold Under Factoring Arrangement | $ 190 | $ 38 | $ 460 | $ 123 |
ENVIRONMENTAL MATTERS AND ASS_3
ENVIRONMENTAL MATTERS AND ASSET RETIREMENT OBLIGATIONS (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2019 | Dec. 31, 2018 | |
Accrual for Environmental Loss Contingencies [Roll Forward] | ||
Beginning of period | $ 296 | |
End of period | 290 | $ 296 |
Accrual for Environmental Loss Contingencies, Balance Sheet Classification [Abstract] | ||
Accrued Environmental Loss Contingencies, Current | 20 | 25 |
Accrued Environmental Loss Contingencies, Noncurrent | 270 | 271 |
Environmental Remediation [Member] | ||
Accrual for Environmental Loss Contingencies [Roll Forward] | ||
Beginning of period | 271 | 280 |
Changes in estimates recognized in earnings and other | 3 | 7 |
Cash reductions | (11) | (16) |
End of period | $ 263 | 271 |
Expected Payment Period of Environmental Contingencies | approximately 30 years | |
Environmental Remediation [Member] | Minimum [Member] | ||
Site Contingency [Line Items] | ||
Loss Contingency, Estimate of Possible Loss | $ 263 | 271 |
Environmental Remediation [Member] | Maximum [Member] | ||
Site Contingency [Line Items] | ||
Loss Contingency, Estimate of Possible Loss | 492 | 508 |
Environmental ARO [Member] | ||
Site Contingency [Line Items] | ||
Best Estimate Accrued to-date For Asset Retirement Obligation | 27 | 25 |
Non Environmental ARO [Member] | ||
Site Contingency [Line Items] | ||
Best Estimate Accrued to-date For Asset Retirement Obligation | $ 47 | $ 46 |
STOCKHOLDERS' EQUITY STOCKHOLDE
STOCKHOLDERS' EQUITY STOCKHOLDERS' EQUITY Part 1 (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||||||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | Jun. 30, 2019 | Jan. 01, 2019 | [1] | Jun. 30, 2018 | Jan. 01, 2018 | [2] | Dec. 31, 2017 | ||||
Stockholders' Equity Note [Abstract] | |||||||||||||||
Dividends, Per Share | $ 0.62 | $ 0.56 | $ 1.86 | $ 1.68 | |||||||||||
Stockholders' Equity Attributable to Parent | $ 6,020 | $ 6,020 | $ 5,803 | ||||||||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 6,097 | $ 5,995 | 6,097 | $ 5,995 | 5,878 | $ 5,946 | $ 5,774 | $ 5,480 | |||||||
Cumulative Effect of New Accounting Principle in Period of Adoption | $ 0 | $ 16 | |||||||||||||
Net earnings attributable to Eastman | 266 | 412 | 733 | 1,046 | |||||||||||
Net earnings attributable to noncontrolling interest | 1 | 1 | 2 | 3 | |||||||||||
Net earnings including noncontrolling interest | 267 | 413 | 735 | 1,049 | |||||||||||
Cash dividends declared | [3] | (85) | (78) | (257) | (238) | ||||||||||
Other Comprehensive Income | 32 | (1) | 22 | 15 | (36) | ||||||||||
Share-based Compensation Expense | [4] | 13 | 15 | 46 | 53 | ||||||||||
Stock Option Exercises | 1 | 8 | 17 | ||||||||||||
Other | (1) | (2) | (10) | [5] | (17) | [5] | |||||||||
Share Repurchases | (75) | (125) | (325) | (375) | |||||||||||
Distributions to Noncontrolling Interest | (2) | (5) | |||||||||||||
Common Stock [Member] | |||||||||||||||
Stockholders' Equity Attributable to Parent | 2 | 2 | 2 | 2 | 2 | 2 | 2 | 2 | |||||||
Cumulative Effect of New Accounting Principle in Period of Adoption | 0 | 0 | |||||||||||||
Net earnings attributable to Eastman | 0 | 0 | 0 | 0 | |||||||||||
Cash dividends declared | [3] | 0 | 0 | 0 | 0 | ||||||||||
Other Comprehensive Income | 0 | 0 | 0 | 0 | |||||||||||
Share-based Compensation Expense | [4] | 0 | 0 | 0 | 0 | ||||||||||
Stock Option Exercises | 0 | 0 | 0 | ||||||||||||
Other | 0 | 0 | 0 | [5] | 0 | [5] | |||||||||
Share Repurchases | 0 | 0 | 0 | 0 | |||||||||||
Distributions to Noncontrolling Interest | 0 | 0 | |||||||||||||
Additional Paid-in Capital [Member] | |||||||||||||||
Stockholders' Equity Attributable to Parent | 2,092 | 2,036 | 2,092 | 2,036 | 2,048 | 2,079 | 2,021 | 1,983 | |||||||
Cumulative Effect of New Accounting Principle in Period of Adoption | 0 | 0 | |||||||||||||
Net earnings attributable to Eastman | 0 | 0 | 0 | 0 | |||||||||||
Cash dividends declared | [3] | 0 | 0 | 0 | 0 | ||||||||||
Other Comprehensive Income | 0 | 0 | 0 | 0 | |||||||||||
Share-based Compensation Expense | [4] | 13 | 15 | 46 | 53 | ||||||||||
Stock Option Exercises | 1 | 8 | 17 | ||||||||||||
Other | 0 | (1) | (10) | [5] | (17) | [5] | |||||||||
Share Repurchases | 0 | 0 | 0 | 0 | |||||||||||
Distributions to Noncontrolling Interest | 0 | 0 | |||||||||||||
Retained Earnings [Member] | |||||||||||||||
Stockholders' Equity Attributable to Parent | 8,029 | 7,626 | 8,029 | 7,626 | 7,573 | 7,848 | 7,292 | 6,802 | |||||||
Cumulative Effect of New Accounting Principle in Period of Adoption | (20) | 16 | |||||||||||||
Net earnings attributable to Eastman | 266 | 412 | 733 | 1,046 | |||||||||||
Cash dividends declared | [3] | (85) | (78) | (257) | (238) | ||||||||||
Other Comprehensive Income | 0 | 0 | 0 | 0 | |||||||||||
Share-based Compensation Expense | [4] | 0 | 0 | 0 | 0 | ||||||||||
Stock Option Exercises | 0 | 0 | 0 | ||||||||||||
Other | 0 | 0 | 0 | [5] | 0 | [5] | |||||||||
Share Repurchases | 0 | 0 | 0 | 0 | |||||||||||
Distributions to Noncontrolling Interest | 0 | 0 | |||||||||||||
Accumulated Other Comprehensive Income (Loss) [Member] | |||||||||||||||
Stockholders' Equity Attributable to Parent | (203) | (194) | (203) | (194) | (245) | (235) | (193) | (209) | |||||||
Cumulative Effect of New Accounting Principle in Period of Adoption | 20 | 0 | |||||||||||||
Net earnings attributable to Eastman | 0 | 0 | 0 | 0 | |||||||||||
Cash dividends declared | [3] | 0 | 0 | 0 | 0 | ||||||||||
Other Comprehensive Income | 32 | (1) | 22 | 15 | |||||||||||
Share-based Compensation Expense | [4] | 0 | 0 | 0 | 0 | ||||||||||
Stock Option Exercises | 0 | 0 | 0 | ||||||||||||
Other | 0 | 0 | 0 | [5] | 0 | [5] | |||||||||
Share Repurchases | 0 | 0 | 0 | 0 | |||||||||||
Distributions to Noncontrolling Interest | 0 | 0 | |||||||||||||
Treasury Stock [Member] | |||||||||||||||
Stockholders' Equity Attributable to Parent | (3,900) | (3,550) | (3,900) | (3,550) | (3,575) | (3,825) | (3,425) | (3,175) | |||||||
Cumulative Effect of New Accounting Principle in Period of Adoption | 0 | 0 | |||||||||||||
Net earnings attributable to Eastman | 0 | 0 | 0 | 0 | |||||||||||
Cash dividends declared | [3] | 0 | 0 | 0 | 0 | ||||||||||
Other Comprehensive Income | 0 | 0 | 0 | 0 | |||||||||||
Share-based Compensation Expense | [4] | 0 | 0 | 0 | 0 | ||||||||||
Stock Option Exercises | 0 | 0 | 0 | ||||||||||||
Other | 0 | 0 | 0 | [5] | 0 | [5] | |||||||||
Share Repurchases | (75) | (125) | (325) | (375) | |||||||||||
Distributions to Noncontrolling Interest | 0 | 0 | |||||||||||||
Parent [Member] | |||||||||||||||
Stockholders' Equity Attributable to Parent | 6,020 | 5,920 | 6,020 | 5,920 | 5,803 | 5,869 | 5,697 | 5,403 | |||||||
Cumulative Effect of New Accounting Principle in Period of Adoption | 0 | 16 | |||||||||||||
Net earnings attributable to Eastman | 266 | 412 | 733 | 1,046 | |||||||||||
Cash dividends declared | [3] | (85) | (78) | (257) | (238) | ||||||||||
Other Comprehensive Income | 32 | (1) | 22 | 15 | |||||||||||
Share-based Compensation Expense | [4] | 13 | 15 | 46 | 53 | ||||||||||
Stock Option Exercises | 1 | 8 | 17 | ||||||||||||
Other | 0 | (1) | (10) | [5] | (17) | [5] | |||||||||
Share Repurchases | (75) | (125) | (325) | (375) | |||||||||||
Distributions to Noncontrolling Interest | 0 | 0 | |||||||||||||
Noncontrolling Interest [Member] | |||||||||||||||
Stockholders' Equity Attributable to Parent | 77 | 75 | 77 | 75 | $ 75 | $ 77 | $ 77 | $ 77 | |||||||
Cumulative Effect of New Accounting Principle in Period of Adoption | $ 0 | $ 0 | |||||||||||||
Net earnings attributable to noncontrolling interest | 1 | 1 | 2 | 3 | |||||||||||
Cash dividends declared | [3] | 0 | 0 | 0 | 0 | ||||||||||
Other Comprehensive Income | 0 | 0 | 0 | 0 | |||||||||||
Share-based Compensation Expense | [4] | 0 | 0 | 0 | 0 | ||||||||||
Stock Option Exercises | 0 | 0 | 0 | ||||||||||||
Other | (1) | (1) | 0 | [5] | 0 | [5] | |||||||||
Share Repurchases | $ 0 | 0 | $ 0 | 0 | |||||||||||
Distributions to Noncontrolling Interest | $ (2) | $ (5) | |||||||||||||
[1] | On January 1, 2019, the Company adopted a new accounting standard for reporting comprehensive income, which resulted in a reclassification of stranded tax effects from the Tax Reform Act from AOCI to retained earnings. See Note 1, "Significant Accounting Policies" , for additional information. | ||||||||||||||
[2] | On January 1, 2018, the Company adopted new accounting standards for revenue recognition, income taxes, and derivatives and hedging, which resulted in adjustments to beginning retained earnings. See Note 1, "Significant Accounting Policies" , to the consolidated financial statements in Part II, Item 8 of the Company's 2018 Annual Report on Form 10-K for specific amounts related to each standard. | ||||||||||||||
[3] | Cash dividends declared consists of cash dividends paid and dividends declared but unpaid. | ||||||||||||||
[4] | Share-based compensation expense is the fair value of share-based awards. | ||||||||||||||
[5] | Additional paid-in capital includes value of shares withheld for employees' taxes on vesting of share-based compensation awards. |
STOCKHOLDERS' EQUITY STOCKHOL_2
STOCKHOLDERS' EQUITY STOCKHOLDERS' EQUITY Part 2 AOCI (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Cumulative Translation Adjustment | $ (269) | $ (269) | $ (309) | $ (296) | ||
Change in cumulative translation adjustment | 23 | $ (21) | 40 | $ (28) | (13) | |
Benefit Plans Unrecognized Prior Service Credits | 113 | 113 | 106 | 136 | ||
Change in Benefit Plans Unrecognized Prior Service Credits | 7 | (30) | ||||
Unrealized Gains (Losses) on Derivative Instruments | (46) | (46) | (41) | (48) | ||
Change in Unrealized Gains (Losses) on Derivative Instruments | (5) | 7 | ||||
Unrealized Losses on Investments | (1) | (1) | (1) | (1) | ||
Change in Unrealized Losses on Investments | 0 | 0 | ||||
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | 42 | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (203) | (203) | (245) | $ (209) | ||
Total other comprehensive income (loss), net of tax | $ 32 | $ (1) | 22 | $ 15 | $ (36) | |
Accounting Standards Update 2018-02 [Member] | Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member] | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Cumulative Effect on Retained Earnings, Tax | (29) | |||||
Accounting Standards Update 2018-02 [Member] | Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent [Member] | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Cumulative Effect on Retained Earnings, Tax | $ 9 |
STOCKHOLDERS' EQUITY STOCKHOL_3
STOCKHOLDERS' EQUITY STOCKHOLDERS' EQUITY Part 3 OCI (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Other Comprehensive Income (Loss), before Tax [Abstract] | |||||
Change in cumulative translation adjustment, before tax | $ 23 | $ (21) | $ 40 | $ (28) | |
Amortization of unrecognized prior service credits included in net periodic costs, before tax | (9) | (10) | (29) | (30) | |
Unrealized gain (loss), before tax | 13 | 50 | (3) | 103 | |
Reclassification adjustment for (gain) loss included in net income, before tax | 8 | (14) | 8 | (17) | |
Total other comprehensive income (loss), before tax | 35 | 5 | 16 | 28 | |
Other comprehensive income (loss), net of tax: | |||||
Change in cumulative translation adjustment | 23 | (21) | 40 | (28) | $ (13) |
Amortization of unrecognized prior service credits | (7) | (7) | (22) | (22) | |
Unrealized gain (loss) | 10 | 37 | (2) | 78 | |
Reclassification adjustment for (gains) losses included in net income, net | 6 | (10) | 6 | (13) | |
Total other comprehensive income (loss), net of tax | $ 32 | $ (1) | $ 22 | $ 15 | $ (36) |
EARNINGS AND DIVIDENDS PER SH_3
EARNINGS AND DIVIDENDS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Earnings Per Share [Abstract] | ||||
Net earnings attributable to Eastman | $ 266 | $ 412 | $ 733 | $ 1,046 |
Weighted average shares used for basic EPS (in shares) | 136,800,000 | 140,600,000 | 137,900,000 | 141,700,000 |
Dilutive effect of stock options and other awards | 1,000,000 | 1,800,000 | 1,000,000 | 2,000,000 |
Weighted average shares used for diluted EPS (in shares) | 137,800,000 | 142,400,000 | 138,900,000 | 143,700,000 |
Earnings Per Share, Basic | $ 1.95 | $ 2.93 | $ 5.31 | $ 7.38 |
Earnings Per Share, Diluted | $ 1.93 | $ 2.89 | $ 5.27 | $ 7.28 |
Underlying options excluded from the computation of diluted earnings per share (in shares) | 2,620,529 | 619,706 | 2,219,514 | 619,706 |
Shares repurchased (in shares) | 1,032,623 | 1,263,868 | 4,282,409 | 3,673,642 |
Cash dividends declared (per share) | $ 0.62 | $ 0.56 | $ 1.86 | $ 1.68 |
ASSETS IMPAIRMENTS AND RESTRU_3
ASSETS IMPAIRMENTS AND RESTRUCTURING (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Restructuring Cost and Reserve [Line Items] | |||||
Severance Costs | $ 1 | $ 0 | $ 45 | $ 6 | |
Business Exit Costs | 1 | 0 | 7 | 0 | |
Total | 2 | $ 0 | 52 | 6 | |
Restructuring Charge [Roll Forward] | |||||
Balance at Beginning of Period | 14 | 29 | $ 29 | ||
Provision / Adjustments | 52 | 45 | |||
Restructuring Reserve, Accrual Adjustment | 1 | ||||
Non-cash Reductions | (38) | ||||
Cash Reductions | (31) | (22) | |||
Balance at End of Period | 36 | 36 | 14 | ||
Facility Closing [Member] | |||||
Restructuring Charge [Roll Forward] | |||||
Balance at Beginning of Period | 8 | 10 | 10 | ||
Provision / Adjustments | 8 | 0 | |||
Restructuring Reserve, Accrual Adjustment | 1 | 0 | |||
Cash Reductions | (6) | (2) | |||
Balance at End of Period | 11 | 11 | 8 | ||
Employee Severance [Member] | |||||
Restructuring Charge [Roll Forward] | |||||
Balance at Beginning of Period | 6 | 19 | 19 | ||
Provision / Adjustments | 44 | 6 | |||
Restructuring Reserve, Accrual Adjustment | 0 | 1 | |||
Cash Reductions | (25) | (20) | |||
Balance at End of Period | 25 | 25 | 6 | ||
Non-Cash Charges [Member] | |||||
Restructuring Charge [Roll Forward] | |||||
Balance at Beginning of Period | 0 | 0 | 0 | ||
Provision / Adjustments | 39 | ||||
Non-cash Reductions | (39) | ||||
Cash Reductions | 0 | ||||
Balance at End of Period | $ 0 | ||||
Corporate, Non-Segment [Member] | Employee Severance [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Severance Costs | $ 6 | ||||
Corporate Cost Actions 2019 [Member] | Corporate, Non-Segment [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Severance Costs | $ 2 | 48 | |||
Capital Project AFP [Member] | Additives And Functional Products [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Business Exit Costs | $ 4 |
SHARE-BASED COMPENSATION AWAR_2
SHARE-BASED COMPENSATION AWARDS (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense before tax | $ 13 | $ 15 | $ 46 | $ 53 |
Share-based compensation net of deferred tax expense | $ 9 | $ 12 | $ 34 | $ 40 |
OTHER (INCOME) CHARGES, NET (De
OTHER (INCOME) CHARGES, NET (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Other Income and Expenses [Abstract] | ||||
Foreign exchange transaction (gains) losses, net | $ 4 | $ 6 | $ 6 | $ 13 |
Currency transaction costs resulting from tax law changes and outside-U.S. entity reorganizations | 0 | 0 | 0 | 13 |
(Income) loss from equity investments and other investment (gains) losses, net | (2) | (3) | (8) | (15) |
Coal gasification incident property insurance | 0 | 0 | 0 | (65) |
Other, net | 1 | 3 | 2 | 4 |
Other (income) charges, net | $ 3 | $ 6 | $ 0 | $ (50) |
SUPPLEMENTAL CASH FLOW INFORM_3
SUPPLEMENTAL CASH FLOW INFORMATION (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Schedule of Supplemental Cash Flow [Line Items] | ||||
Insured Event, Gain (Loss) | $ 0 | $ 0 | $ 0 | $ 65 |
Other current assets | 23 | (93) | ||
Other noncurrent assets | 13 | 25 | ||
Payables and other current liabilities | 79 | 28 | ||
Long-term liabilities and equity | (25) | (35) | ||
Total | $ 90 | $ (75) |
SEGMENT AND REGIONAL SALES IN_3
SEGMENT AND REGIONAL SALES INFORMATION (Details) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2019USD ($)Segment | Sep. 30, 2018USD ($) | Dec. 31, 2018USD ($) | ||
Segment Reporting Information [Line Items] | ||||||
Number of Operating Segments | Segment | 4 | |||||
Contract with Customer, Asset, after Allowance for Credit Loss | $ 58 | $ 58 | $ 62 | |||
Sales [Abstract] | ||||||
Sales | 2,325 | $ 2,547 | 7,068 | $ 7,775 | ||
Earnings (Loss) Before Interest and Taxes [Abstract] | ||||||
Earnings before interest and taxes | 367 | 517 | 1,058 | 1,417 | ||
Segment Reporting Information, Additional Information [Abstract] | ||||||
Assets by Segment | [1] | 16,137 | 16,137 | 15,995 | ||
Operating Segments [Member] | ||||||
Earnings (Loss) Before Interest and Taxes [Abstract] | ||||||
Earnings before interest and taxes | 388 | 532 | 1,157 | 1,466 | ||
Segment Reporting Information, Additional Information [Abstract] | ||||||
Assets by Segment | [1] | 14,847 | 14,847 | 14,913 | ||
Corporate, Non-Segment [Member] | ||||||
Segment Reporting Information, Additional Information [Abstract] | ||||||
Assets by Segment | [1] | 1,290 | 1,290 | 1,082 | ||
Growth Initiatives and Businesses not Allocated to Segments [Member] | Corporate, Non-Segment [Member] | ||||||
Earnings (Loss) Before Interest and Taxes [Abstract] | ||||||
Earnings before interest and taxes | (26) | (26) | (78) | (79) | ||
Pension and OPEB Costs Not Allocated to Operating Segments [Member] | Corporate, Non-Segment [Member] | ||||||
Earnings (Loss) Before Interest and Taxes [Abstract] | ||||||
Earnings before interest and taxes | 12 | 20 | 35 | 61 | ||
Restructuring and acquisition integration and transaction costs [Member] | Corporate, Non-Segment [Member] | ||||||
Earnings (Loss) Before Interest and Taxes [Abstract] | ||||||
Earnings before interest and taxes | (2) | 0 | (48) | (6) | ||
Other Nonoperating Income (Expense) [Member] | Corporate, Non-Segment [Member] | ||||||
Earnings (Loss) Before Interest and Taxes [Abstract] | ||||||
Earnings before interest and taxes | (5) | (9) | (8) | (25) | ||
Additives And Functional Products [Member] | Operating Segments [Member] | ||||||
Sales [Abstract] | ||||||
Sales | 832 | 915 | 2,510 | 2,796 | ||
Earnings (Loss) Before Interest and Taxes [Abstract] | ||||||
Earnings before interest and taxes | 144 | 186 | 437 | 554 | ||
Segment Reporting Information, Additional Information [Abstract] | ||||||
Assets by Segment | [1] | 6,491 | 6,491 | 6,545 | ||
Advanced Materials [Member] | Operating Segments [Member] | ||||||
Sales [Abstract] | ||||||
Sales | 697 | 709 | 2,050 | 2,131 | ||
Earnings (Loss) Before Interest and Taxes [Abstract] | ||||||
Earnings before interest and taxes | 159 | 153 | 406 | 438 | ||
Segment Reporting Information, Additional Information [Abstract] | ||||||
Assets by Segment | [1] | 4,478 | 4,478 | 4,456 | ||
Chemical Intermediates [Member] | Operating Segments [Member] | ||||||
Sales [Abstract] | ||||||
Sales | 579 | 703 | 1,865 | 2,142 | ||
Earnings (Loss) Before Interest and Taxes [Abstract] | ||||||
Earnings before interest and taxes | 34 | 109 | 170 | 264 | ||
Segment Reporting Information, Additional Information [Abstract] | ||||||
Assets by Segment | [1] | 2,848 | 2,848 | 2,934 | ||
Fibers [Member] | Operating Segments [Member] | ||||||
Sales [Abstract] | ||||||
Sales | 217 | 220 | 643 | 706 | ||
Earnings (Loss) Before Interest and Taxes [Abstract] | ||||||
Earnings before interest and taxes | 51 | 84 | 144 | 210 | ||
Segment Reporting Information, Additional Information [Abstract] | ||||||
Assets by Segment | [1] | 1,030 | 1,030 | $ 978 | ||
North America [Member] | ||||||
Sales [Abstract] | ||||||
Sales | 966 | 1,083 | 2,961 | 3,291 | ||
Asia Pacific [Member] | ||||||
Sales [Abstract] | ||||||
Sales | 602 | 665 | 1,729 | 1,946 | ||
EMEA [Member] | ||||||
Sales [Abstract] | ||||||
Sales | 611 | 649 | 1,949 | 2,101 | ||
Latin America [Member] | ||||||
Sales [Abstract] | ||||||
Sales | $ 146 | $ 150 | $ 429 | $ 437 | ||
[1] | Segment assets include accounts receivable, inventory, fixed assets, goodwill, and intangible assets. |