Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Jun. 30, 2019 | |
Entity Information [Line Items] | ||
Document Type | 10-K | |
Document Annual Report | true | |
Document Period End Date | Dec. 31, 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 Well-known Seasoned Issuer | Yes | |
Entity Voluntary Filers | No | |
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 Public Float | $ 10,531,152,394 | |
Entity Common Stock, Shares Outstanding (in shares) | 135,993,046 | |
Documents Incorporated by Reference | Portions of the registrant's definitive Proxy Statement for the 2020 Annual Meeting of Stockholders, to be filed with the Securities and Exchange Commission, are incorporated by reference in Part III, Items 10 to 14 of this Annual Report on Form 10-K (this "Annual Report") as indicated herein. | |
Entity Central Index Key | 0000915389 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | FY | |
Common Stock [Member] | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Common Stock, par value $0.01 per share | |
Trading Symbol | EMN | |
Security Exchange Name | NYSE | |
1.50% notes due May 2023 [Member] | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 1.50% Notes Due 2023 | |
Trading Symbol | EMN23 | |
Security Exchange Name | NYSE | |
1.875% notes due November 2026 [Member] | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 1.875% Notes Due 2026 | |
Trading Symbol | EMN26 | |
Security Exchange Name | NYSE |
CONSOLIDATED STATEMENTS OF EARN
CONSOLIDATED STATEMENTS OF EARNINGS, COMPREHENSIVE INCOME AND RETAINED EARNINGS - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Income Statement [Abstract] | ||||
Sales | $ 9,273 | $ 10,151 | $ 9,549 | |
Cost of sales | 7,039 | 7,672 | 7,186 | |
Gross profit | 2,234 | 2,479 | 2,363 | |
Selling, general and administrative expenses | 691 | 721 | 729 | |
Research and development expenses | 234 | 235 | 227 | |
Asset impairments and restructuring charges, net | 126 | 45 | 8 | |
Other components of post-employment (benefit) cost, net | 60 | (21) | (135) | |
Other (income) charges, net | 3 | (53) | 4 | |
Earnings before interest and taxes | 1,120 | 1,552 | 1,530 | |
Net interest expense | 218 | 235 | 241 | |
Early debt extinguishment and other related costs | 0 | 7 | 0 | |
Earnings before income taxes | 902 | 1,310 | 1,289 | |
Provision for (benefit from) income taxes | 140 | 226 | (99) | |
Net earnings | 762 | 1,084 | 1,388 | |
Less: Net earnings attributable to noncontrolling interest | 3 | 4 | 4 | |
Net earnings attributable to Eastman | $ 759 | $ 1,080 | $ 1,384 | |
Basic earnings per share attributable to Eastman | ||||
Basic earnings per share attributable to Eastman | [1] | $ 5.52 | $ 7.65 | $ 9.56 |
Diluted earnings per share attributable to Eastman | ||||
Diluted earnings per share attributable to Eastman | [1] | $ 5.48 | $ 7.56 | $ 9.47 |
Comprehensive Income | ||||
Net earnings including noncontrolling interest | $ 762 | $ 1,084 | $ 1,388 | |
Other comprehensive income (loss), net of tax: | ||||
Change in cumulative translation adjustment | 45 | (13) | 85 | |
Defined benefit pension and other postretirement benefit plans [Abstract] | ||||
Amortization of unrecognized prior service credits included in net periodic costs | (29) | (30) | (27) | |
Derivatives and hedging [Abstract] | ||||
Unrealized gain (loss) during period | (20) | 22 | 7 | |
Reclassification adjustment for (gains) losses included in net income, net | 15 | (15) | 7 | |
Total other comprehensive income (loss), net of tax | 11 | (36) | 72 | |
Comprehensive income including noncontrolling interest | 773 | 1,048 | 1,460 | |
Less: Net earnings attributable to noncontrolling interest | 3 | 4 | 4 | |
Comprehensive income attributable to Eastman | 770 | 1,044 | 1,456 | |
Retained Earnings | ||||
Retained earnings at beginning of period | 7,573 | 6,802 | 5,721 | |
Cumulative effect adjustment resulting from adoption of new accounting standards | (20) | 16 | 0 | |
Net earnings attributable to Eastman | 759 | 1,080 | 1,384 | |
Cash dividends declared | [2] | (347) | (325) | (303) |
Retained earnings at end of period | $ 7,965 | $ 7,573 | $ 6,802 | |
[1] | EPS is calculated using whole dollars and shares. | |||
[2] | Cash dividends includes cash dividends paid and dividends declared, but unpaid. |
CONSOLIDATED STATEMENTS OF FINA
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | |
Current assets | |||
Cash and cash equivalents | $ 204 | $ 226 | |
Trade receivables, net of allowance for doubtful accounts | 980 | 1,154 | |
Miscellaneous receivables | 395 | 329 | |
Inventories | 1,662 | 1,583 | |
Other current assets | 80 | 73 | |
Total current assets | 3,321 | 3,365 | |
Properties | |||
Properties and equipment at cost | 12,904 | 12,731 | |
Less: Accumulated depreciation | 7,333 | 7,131 | |
Net properties | 5,571 | 5,600 | |
Goodwill | 4,431 | 4,467 | |
Intangible assets, net of accumulated amortization | 2,011 | 2,185 | |
Other noncurrent assets | 674 | 378 | |
Total assets | [1] | 16,008 | 15,995 |
Current liabilities | |||
Payables and other current liabilities | 1,618 | 1,608 | |
Borrowings due within one year | 171 | 243 | |
Total current liabilities | 1,789 | 1,851 | |
Long-term borrowings | 5,611 | 5,925 | |
Deferred income tax liabilities | 915 | 884 | |
Post-employment obligations | 1,016 | 925 | |
Other long-term liabilities | 645 | 532 | |
Total liabilities | 9,976 | 10,117 | |
Stockholders' equity | |||
Common stock ($0.01 par value per share – 350,000,000 shares authorized; shares issued – 219,638,646 and 219,140,523 for 2019 and 2018, respectively) | 2 | 2 | |
Additional paid-in capital | 2,105 | 2,048 | |
Retained earnings | 7,965 | 7,573 | |
Accumulated other comprehensive loss | (214) | (245) | |
Total stockholders' equity before treasury stock | 9,858 | 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 | 5,958 | 5,803 | |
Noncontrolling interest | 74 | 75 | |
Total equity | 6,032 | 5,878 | |
Total liabilities and stockholders' equity | $ 16,008 | $ 15,995 | |
[1] | The chief operating decision maker holds operating segment management accountable for accounts receivable, inventory, fixed assets, goodwill, and intangible assets. |
CONSOLIDATED STATEMENTS OF FI_2
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (Parenthetical) - $ / shares | Dec. 31, 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) | 219,638,646 | 219,140,523 |
Treasury stock at cost (in shares) | 83,696,398 | 79,413,989 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Operating activities | |||
Net earnings | $ 762 | $ 1,084 | $ 1,388 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | |||
Depreciation and amortization | 611 | 604 | 587 |
Mark-to-market pension and other postretirement benefit plans (gain) loss, net | 143 | 99 | (21) |
Asset impairment charges | 72 | 39 | 1 |
Early debt extinguishment and other related costs | 0 | 7 | 0 |
Gains from sale of assets and businesses | 0 | (4) | (3) |
Gain from property insurance | 0 | (65) | 0 |
Provision for (benefit from) deferred income taxes | 23 | (51) | (394) |
Changes in operating assets and liabilities, net of effect of acquisitions and divestitures: | |||
(Increase) decrease in trade receivables | 170 | 16 | (53) |
(Increase) decrease in inventories | (80) | (224) | (71) |
Increase (decrease) in trade payables | (27) | 90 | 123 |
Pension and other postretirement contributions (in excess of) less than expenses | (119) | (152) | (115) |
Variable compensation (in excess of) less than expenses | 38 | 55 | 71 |
Other items, net | (89) | 45 | 144 |
Net cash provided by operating activities | 1,504 | 1,543 | 1,657 |
Investing activities | |||
Additions to properties and equipment | (425) | (528) | (649) |
Proceeds from property insurance | 0 | 65 | 0 |
Proceeds from sale of assets and businesses | 0 | 5 | 14 |
Acquisitions, net of cash acquired | (48) | (3) | (4) |
Other items, net | (7) | (2) | (4) |
Net cash used in investing activities | (480) | (463) | (643) |
Financing activities | |||
Net increase (decrease) in commercial paper and other borrowings | (70) | (146) | (19) |
Proceeds from borrowings | 460 | 1,604 | 675 |
Repayment of borrowings | (760) | (1,774) | (1,025) |
Dividends paid to stockholders | (343) | (318) | (296) |
Treasury stock purchases | (325) | (400) | (350) |
Other items, net | (5) | (6) | 9 |
Net cash used in financing activities | (1,043) | (1,040) | (1,006) |
Effect of exchange rate changes on cash and cash equivalents | (3) | (5) | 2 |
Net change in cash and cash equivalents | (22) | 35 | 10 |
Cash and cash equivalents at beginning of period | 226 | 191 | 181 |
Cash and cash equivalents at end of period | $ 204 | $ 226 | $ 191 |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
SIGNIFICANT ACCOUNTING POLICIES | SIGNIFICANT ACCOUNTING POLICIES Financial Statement Presentation The consolidated financial statements of Eastman Chemical Company ("Eastman" or the "Company") and subsidiaries are prepared in conformity with accounting principles generally accepted ("GAAP") in the United States and of necessity include some amounts that are based upon management estimates and judgments. Future actual results could differ from such current estimates. The 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 in minority-owned companies where it exercises significant influence on the equity basis. Intercompany transactions and balances are eliminated in consolidation. Certain prior period data has been reclassified in the consolidated financial statements and accompanying footnotes to conform to current period presentation. 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 $219 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 Consolidated Statement of Financial Position. For further information, see Note 11, "Leases and Other Commitments" . 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 December 31, 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. 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. 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. 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. 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. ASU 2019-12 Income Taxes - Simplifying the Accounting for Income Taxes : In December 2019, the FASB issued this update as part of its initiative to reduce complexity in accounting standards which removes certain exceptions and provides simplification to specific tax items. This standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. Early adoption is permitted, including adoption in any interim period for which financial statements have not yet been issued. Adoption methods vary based on the specific items impacted. Management is currently evaluating the impact on the Company's financial statements and related disclosures. Revenue Recognition On January 1, 2018, Eastman adopted ASU 2014-09 Revenue Recognition (ASC 606) under the modified retrospective method, such that revenue for all periods prior to January 1, 2018 continue to be reported under the previous standard, which resulted in an increase to retained earnings of $53 million after tax for products shipped but not delivered as of December 31, 2017. Eastman recognizes revenue when performance obligations of the sale are satisfied. Eastman sells to customers through master sales agreements or standalone purchase orders. The majority of the Company's terms of sale have a single performance obligation to transfer products. Accordingly, the Company recognizes revenue when control has been transferred to the customer, generally at the time of shipment of products. Eastman accounts for shipping and handling as activities to fulfill the promise to transfer the good and does not allocate revenue to those activities. All related shipping and handling costs are recognized at the time of shipment. Amounts collected for sales or other similar taxes are presented net of the related tax expense rather than presenting them as additional revenue. The incremental cost of obtaining a sales contract is recognized as a selling expense when incurred given the potential amortization period for such an asset is one year or less. The possible existence of a significant financing component within a sales contract is ignored when the time between cash collection and performance is less than one year. Finally, the Company does not disclose any unfulfilled obligations as customer purchase order commitments have an original expected duration of one year or less and no consideration from customers is excluded from the transaction price. 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 December 31, 2019 or December 31, 2018 . Contract assets were $65 million and $62 million as of December 31, 2019 and December 31, 2018 , respectively, and are included as a component of "Miscellaneous receivables" in the Consolidated Statements of Financial Position. For additional information, see Note 19, "Segment and Regional Sales Information" . Pension and Other Postretirement Benefits Eastman maintains defined benefit pension plans that provide eligible employees with retirement benefits. Under its other postretirement benefit plans in the U.S., Eastman provides life insurance for eligible retirees hired prior to January 1, 2007. Eastman 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. The estimated amounts of the costs and obligations related to these benefits reflect the Company's assumptions related to discount rates, expected return on plan assets, rate of compensation increase or decrease for employees, and health care cost trends. The estimated cost of providing plan benefits also depends on demographic assumptions including retirements, mortality, turnover, and plan participation. Eastman's pension and other postretirement benefit plans costs consist of two elements: 1) ongoing costs recognized quarterly, which are comprised of service and interest costs, expected returns on plan assets, and amortization of prior service credits; and 2) mark-to-market ("MTM") gains and losses recognized annually, in the fourth quarter of each year, primarily resulting from changes in actuarial assumptions for discount rates and the differences between actual and expected returns on plan assets. Any interim remeasurements triggered by a curtailment, settlement, or significant plan changes are recognized in the quarter in which such remeasurement event occurs. For additional information, see Note 10, "Retirement Plans" . Environmental Costs Eastman recognizes environmental remediation costs when it is probable that the Company has incurred a liability at a contaminated site and the amount can be reasonably estimated. When a single amount cannot be reasonably estimated but the cost can be estimated within a range, the Company recognizes the minimum undiscounted amount. This undiscounted amount reflects liabilities expected to be paid within approximately 30 years and the Company's assumptions about remediation requirements at the contaminated site, the nature of the remedy, the outcome of discussions with regulatory agencies and other potentially responsible parties at multi-party sites, and the number and financial viability of other potentially responsible parties. Changes in the estimates on which the accruals are based, unanticipated government enforcement action, or changes in health, safety, environmental, and chemical control regulations and testing requirements could result in higher or lower costs. The Company also establishes reserves for closure and post-closure costs associated with the environmental and other assets it maintains. Environmental assets include but are not limited to waste management units, such as landfills, water treatment facilities, and surface impoundments. When these types of assets are constructed or installed, a loss contingency reserve is established for the anticipated future costs associated with the retirement or closure of the asset based on its expected life and the applicable regulatory closure requirements. The Company recognizes the 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. These future estimated costs are charged to earnings over the estimated useful life of the assets. If the Company changes its estimate of the environmental asset retirement obligation costs or its estimate of the useful lives of these assets, expenses charged to earnings will be impacted. The current portion of accruals for environmental liabilities is included in payables and other current liabilities and the long-term portion is included in other long-term liabilities. These accruals exclude claims for recoveries from insurance companies or other third parties. Environmental costs are capitalized if they extend the life of the related property, increase its capacity, or mitigate or prevent future contamination. The cost of operating and maintaining environmental control facilities is charged to expense as incurred. For additional information see Note 12, "Environmental Matters and Asset Retirement Obligations" . Share-based Compensation Eastman recognizes compensation expense in the financial statements for stock options and other share-based compensation awards based upon the grant-date fair value over the substantive vesting period. For additional information, see Note 17, "Share-Based Compensation Plans and Awards" . Restructuring of Operations Eastman records restructuring charges for costs incurred in connection with consolidation of operations, exited business or product lines, or shutdowns of specific sites that are expected to be substantially completed within twelve months. These restructuring charges are recorded as incurred, and are associated with site closures, legal and environmental matters, demolition, contract terminations, obsolete inventory, or other costs and charges directly related to the restructuring. The Company records severance charges for employee separations when the separation is probable and reasonably estimable. In the event employees are required to perform future service, the Company records severance charges ratably over the remaining service period of those employees. For additional information, see Note 15, "Asset Impairments and Restructuring Charges, Net" . Income Taxes The provision for (benefit from) income taxes has been determined using the asset and liability approach of accounting for income taxes. Under this approach, deferred taxes represent the future tax consequences expected to occur when the reported amounts of assets and liabilities are recovered or paid. The provision for (benefit from) income taxes represents income taxes paid or payable for the current year plus the change in deferred taxes during the year. Deferred taxes result from differences between the financial and tax bases of Eastman's assets and liabilities and are adjusted for changes in tax rates and tax laws when changes are enacted. Valuation allowances are recorded to reduce deferred tax assets when it is more likely than not that a tax benefit will not be realized. Provision has been made for income taxes on unremitted earnings of subsidiaries and affiliates, except for subsidiaries in which earnings are deemed to be indefinitely reinvested. The Company recognizes income tax positions that meet the more likely than not threshold and accrues interest related to unrecognized income tax positions which is recorded as a component of the income tax provision. In conjunction with its evaluation of the provisions of the Tax Reform Act, in 2018, the Company made an accounting policy election to account for taxes resulting from the global intangible low-tax income ("GILTI") as a component of the provision for income taxes. Cash and Cash Equivalents Cash and cash equivalents include cash, time deposits, and readily marketable securities with original maturities of three months or less. Fair Value Measurements Eastman records recurring and non-recurring financial assets and liabilities as well as all non-financial assets and liabilities subject to fair value measurement at the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. These fair value principles prioritize valuation inputs across three broad levels. Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2 inputs are quoted prices for similar assets and liabilities in active markets or inputs that are observable for the asset or liability, either directly or indirectly through market corroboration, for substantially the full term of the financial instrument. Level 3 inputs are unobservable inputs based on the Company's assumptions used to measure assets and liabilities at fair value. An asset or liability's classification within the various levels is determined based on the lowest level input that is significant to the fair value measurement. Accounts Receivable and Allowance for Doubtful Accounts Trade accounts receivable are recorded at the invoiced amount and do not bear interest. Eastman maintains allowances for doubtful accounts for estimated losses resulting from the inability of its customers to make required payments. The Company calculates the allowance based on an assessment of the risk in the accounts receivable portfolio. Write-offs are recorded at the time a customer receivable is deemed uncollectible. Allowance for doubtful accounts was $11 million at both December 31, 2019 and 2018 . The Company does not enter into receivables of a long-term nature, also known as financing receivables, in the normal course of business. Inventories Inventories measured by the last-in, first-out ("LIFO") method are valued at the lower of cost or market and inventories measured by the first-in, first-out ("FIFO") method are valued at lower cost or net realizable value. Eastman determines the cost of most raw materials, work in process, and finished goods inventories in the United States and Switzerland by the LIFO method. The cost of all other inventories is determined by the average cost method, which approximates the FIFO method. The Company writes-down its inventories equal to the difference between the carrying value of inventory and the estimated market value or net realizable value based upon assumptions about future demand and market conditions. Properties Eastman records properties at cost. Maintenance and repairs are charged to earnings; replacements and betterments are capitalized. When Eastman retires or otherwise disposes of assets, it removes the cost of such assets and related accumulated depreciation from the accounts. The Company records any profit or loss on retirement or other disposition into earnings. Asset impairments are reflected as increases in accumulated depreciation for properties that have been placed in service. In instances when an asset has not been placed in service and is impaired, the associated costs are removed from the appropriate property accounts. Depreciation and Amortization Depreciation expense is calculated based on historical cost and the estimated useful lives of the assets, generally using the straight-line method. Estimated useful lives for buildings and building equipment generally range from 20 to 50 years. Estimated useful lives generally ranging from 3 to 33 years are applied to machinery and equipment in the following categories: computer software (3 to 5 years); office furniture and fixtures and computer equipment (5 to 10 years); vehicles, railcars, and general machinery and equipment (5 to 20 years); and manufacturing-related improvements (20 to 33 years). Accelerated depreciation is reported when the estimated useful life is shortened and continues to be reported in cost of sales. Amortization expense for definite-lived intangible assets is generally determined using a straight-line method over the estimated useful life of the asset. Amortization expense is reported in cost of sales. For additional information, see Note 4, "Goodwill and Other Intangible Assets" . Impairment of Long-Lived Assets Definite-lived Assets Properties and equipment and definite-lived intangible assets to be held and used by Eastman are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. The review of properties and equipment and the review of definite-lived intangible assets is performed at the asset group level, which is the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities. If the carrying amount is not considered to be recoverable, an analysis of fair value is triggered. An impairment is recognized for the excess of the carrying amount of the asset over the fair value. Fair value is the price that would be received to sell an asset in an orderly transaction between market participants. Goodwill Eastman conducts testing of goodwill annually in the fourth quarter or more frequently when events and circumstances indicate an impairment may have occurred. The testing of goodwill is performed at the "reporting unit" level which the Company has determined to be its "components". Components are defined as an operating segment or one level below an operating segment, and in order to be a reporting unit, the component must 1) be a "business" as defined by applicable accounting standards (an integrated set of activities and assets that is capable of being conducted and managed for the purpose of providing a return in the form of dividends, lower costs, or other economic benefits directly to the investors or other owners, members, or participants); 2) have discrete financial information available; and 3) be reviewed regularly by Company operating segment management. The Company aggregates certain components into reporting units based on economic similarities. A reporting unit's goodwill is considered to be impaired when the reporting unit's estimated fair value is less than its carrying value. The Company uses an income approach and applies a discounted cash flow model in testing the carrying value of goodwill for each reporting unit. Key assumptions and estimates used in the Company's 2019 goodwill impairment testing included projections of revenues and earnings before interest and taxes ("EBIT") determined using the Company's annual multi-year strategic plan, the estimated weighted average cost of capital ("WACC") and a projected long-term growth rate. The Company believes these assumptions are consistent with those a hypothetical market participant would use given circumstances that were present at the time the estimates were made. However, actual results and amounts may be significantly different from the Company's estimates. In addition, the use of different estimates or assumptions could result in materially different estimated fair values of reporting units. The WACC is calculated incorporating weighted average returns on debt and equity from market participants. Therefore, changes in the market, which are beyond the control of the Company, may have an impact on future calculations of estimated fair value. Indefinite-lived Intangible Assets Eastman conducts testing of indefinite-lived intangible assets annually in the fourth quarter or more frequently when events and circumstances indicate an impairment may have occurred. The carrying value of an indefinite-lived intangible asset is considered to be impaired when the fair value, as established by appraisal or based on discounted future cash flows of certain related products, is less than the respective carrying value. Indefinite-lived intangible assets, consisting primarily of various tradenames, are tested for potential impairment by comparing the estimated fair value to the carrying amount. The Company uses an income approach, specifically the relief from royalty method, to test indefinite-lived intangible assets. The estimated fair value of tradenames is determined based on an assumed royalty rate savings, discounted by the calculated market participant WACC plus a risk premium. For additional information, see Note 4, "Goodwill and Other Intangible Assets" . Leases As noted above, On January 1, 2019, Eastman adopted ASU 2016-02 Leases. For accounting policy and elections, see Note 11, "Leases and Other Commitments" . Investments The consolidated financial statements include the accounts of Eastman and all its subsidiaries and entities or joint ventures in which a controlling interest is maintained. The Company includes its share of earnings and losses of such investments in "Net earnings attributable to Eastman" and "Comprehensive income attributable to Eastman" located in the Consolidated Statements of Earnings, Comprehensive Income and Retained Earnings and in "Total equity" located in the Consolidated Statements of Financial Position. Investments in affiliates over which the Company has significant influence but not a controlling interest are carried on the equity basis. Under the equity method of accounting, these investments are included in "Other noncurrent assets" in the Consolidated Statements of Financial Position. The Company includes its share of earnings and losses of such investments in "Other (income) charges, net" located in the Consolidated Statements of Earnings, Comprehensive Income and Retained Earnings. Derivative and Non-Derivative Financial Instruments Eastman uses derivative and non-derivative instruments to manage its exposure to market risks, such as changes in foreign currency exchange rates, commodity prices, and interest rates. The Company does not enter into derivative transactions for speculative purposes. Counterparties to the 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's derivative instruments are recognized as either assets or liabilities on the Consolidated Statements of Financial Position and measured at fair value. For qualifying derivatives designated as cash flow hedges, the effective portion of the changes in the fair value are reported as a component of AOCI in the Consolidated Statements of Financial Position and recognized in earnings when the hedged items affect earnings. For qualifying derivatives designated as fair value hedges, the effective portion of the changes in the fair value are reported as "Long-term borrowings" on the Consolidated Statements of Financial Position and recognized in earnings when the hedged items affect earnings. For qualifying derivative or non-derivative instruments designated as net investment hedges, the net change in the hedge instrument and item being hedged is reported as a component of "Cumulative translation adjustment" ("CTA") within AOCI located in the Consolidated Statements of Earnings, Comprehensive Income and Retained Earnings. Any hedge components excluded from the assessment of effectiveness are recognized in earnings, the initial value of the excluded component, using a systematic and rational method over the life of the hedging instrument. Changes in the fair value of nonqualifying derivatives or derivatives that are not designated as hedges, are recognized in current earnings. Hedge accounting will be discontinued prospectively for all hedges that no longer qualify for hedge accounting treatment. Cash flows from derivative instruments designated as hedges are reported in the same category as the cash flows from the items being hedged. For additional information, see Note 9, "Derivative and Non-Derivative Financial Instruments" . Litigation and Contingent Liabilities Eastman and its operations from time to time are, and in the future may be, 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. The Company accrues a contingent loss liability for such matters when it is probable that a liability has been incurred and the amount can be reasonably estimated. When a single amount cannot be reasonably estimated but the cost can be estimated within a range, the Company accrues the minimum amount. The Company expenses legal costs, including those expected to be incurred in connection with a loss contingency, as incurred. Working Capital Management and Off Balance Sheet Arrangements The Company works with suppliers to optimize payment terms and conditions on accounts payable to enhance timing of working capital and cash flows. As part of these efforts, in 2019, the Company introduced a voluntary supply chain finance program to provide suppliers with the opportunity to sell receivables due from Eastman to a participating financial institution. Eastman's responsibility is limited to making payments on the terms originally negotiated with suppliers, regardless of whether the suppliers sells their receivables to the financial institution. The range of payment terms Eastman negotiates with suppliers are consistent, regardless of whether a supplier participates in the program. All of Eastman's accounts payable and associated payments are reported consistently in the Company's Consolidated Statements of Financial Position and Consolidated Statements of Cash Flows regardless of whether they are associated with a vendor who participates in the program. In 2019 , the Company expanded off balance sheet, 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 coll |
INVENTORIES
INVENTORIES | 12 Months Ended |
Dec. 31, 2019 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | INVENTORIES December 31, (Dollars in millions) 2019 2018 Finished goods $ 1,114 $ 1,143 Work in process 220 262 Raw materials and supplies 576 515 Total inventories at FIFO or average cost 1,910 1,920 Less: LIFO reserve 248 337 Total inventories $ 1,662 $ 1,583 Inventories valued on the LIFO method were approximately 50 percent and 55 percent of total inventories at December 31, 2019 and December 31, 2018 , respectively. |
PROPERTIES AND ACCUMULATED DEPR
PROPERTIES AND ACCUMULATED DEPRECIATION | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
PROPERTIES AND ACCUMULATED DEPRECIATION | PROPERTIES AND ACCUMULATED DEPRECIATION December 31, (Dollars in millions) 2019 2018 Properties Land $ 158 $ 158 Buildings 1,430 1,385 Machinery and equipment 10,960 10,801 Construction in progress 356 387 Properties and equipment at cost $ 12,904 $ 12,731 Less: Accumulated depreciation 7,333 7,131 Net properties $ 5,571 $ 5,600 Depreciation expense was $450 million , $437 million , and $420 million for 2019 , 2018 , and 2017 , respectively. Cumulative construction-period interest of $98 million and $115 million , reduced by accumulated depreciation of $38 million and $54 million , is included in net properties at December 31, 2019 and 2018 , respectively. Eastman capitalized $4 million of interest in 2019 , $4 million of interest in 2018 , and $8 million of interest in 2017 . |
GOODWILL AND OTHER INTANGIBLE A
GOODWILL AND OTHER INTANGIBLE ASSETS | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND OTHER INTANGIBLE ASSETS | GOODWILL AND OTHER INTANGIBLE ASSETS Changes in the carrying amount of goodwill follow: (Dollars in millions) Additives & Functional Products Advanced Materials Chemical Intermediates Other Total Balance at December 31, 2017 $ 2,459 $ 1,289 $ 769 $ 10 $ 4,527 Impairments recognized (38 ) — — — (38 ) Currency translation adjustments (11 ) (6 ) (5 ) — (22 ) Balance at December 31, 2018 2,410 1,283 764 10 4,467 Acquisitions 15 — — — 15 Impairments recognized (45 ) — — — (45 ) Currency translation adjustments (3 ) (1 ) (2 ) — (6 ) Balance at December 31, 2019 $ 2,377 $ 1,282 $ 762 $ 10 $ 4,431 Eastman conducts testing of goodwill annually in the fourth quarter or more frequently when events and circumstances indicate an impairment may have occurred. A reporting unit's goodwill is considered to be impaired when the reporting unit's estimated fair value is less than its carrying value. The Company uses an income approach and applies a discounted cash flow model in testing the carrying value of goodwill for each reporting unit. Key assumptions and estimates used in the Company's 2019 goodwill impairment testing included projections of revenues and EBIT determined using the Company's annual multi-year strategic plan, the estimated WACC, and a projected long-term growth rate. As a result of the goodwill impairment testing performed during fourth quarter 2019 , fair values were determined to exceed the carrying values for each reporting unit tested with the exception of crop protection (part of the Additives & Functional Products ("AFP") segment). In fourth quarter 2019 and 2018, as a result of the annual impairment test of goodwill, the Company recognized goodwill impairments of $45 million and $38 million , respectively, in the crop protection reporting unit. The impairment in 2019 was primarily due to the impact of recent regulatory changes in the European Union on current period and forecasted revenue and EBIT and a decrease in the long-term growth rate for the reporting unit assumed in the goodwill impairment model. The impairment in 2018 was primarily due to the WACC applied to the impairment analysis and the estimated impact of future regulatory changes. The crop protection reporting unit's goodwill after the reduction for impairment was $190 million as of December 31, 2019 . As of December 31, 2019, the reported balance of goodwill included accumulated impairment losses of $106 million , $12 million , and $14 million in the AFP segment, Chemical Intermediates ("CI") segment, and other segments, respectively. As of December 31, 2018, the reported balance of goodwill included accumulated impairment losses of $61 million , $12 million , and $14 million in the AFP segment, CI segment, and other segments, respectively. The carrying amounts of intangible assets follow: December 31, 2019 December 31, 2018 (Dollars in millions) Estimated Useful Life in Years Gross Carrying Value Accumulated Amortization Net Carrying Value Gross Carrying Value Accumulated Amortization Net Carrying Value Amortizable intangible assets: Customer relationships 8 - 25 $ 1,566 $ 494 $ 1,072 $ 1,567 $ 419 $ 1,148 Technology 7 - 20 677 343 334 680 294 386 Contracts 5 — — — 180 147 33 Other 5 - 37 88 22 66 102 23 79 Indefinite-lived intangible assets: Tradenames 529 — 529 529 — 529 Other 10 — 10 10 — 10 Total identified intangible assets $ 2,870 $ 859 $ 2,011 $ 3,068 $ 883 $ 2,185 Amortization expense of definite-lived intangible assets was $160 million , $164 million , and $164 million for 2019 , 2018 , and 2017 , respectively. Estimated amortization expense for future periods is $130 million in 2020, $125 million in 2021, and $115 million each year for 2022 through 2024. |
EQUITY INVESTMENTS
EQUITY INVESTMENTS | 12 Months Ended |
Dec. 31, 2019 | |
Equity Method Investments and Joint Ventures [Abstract] | |
EQUITY INVESTMENTS | EQUITY INVESTMENTS Eastman owns a 50 percent or less interest in joint ventures which are accounted for under the equity method. These include a 45 percent interest in a joint venture with China National Tobacco Corporation that manufactures acetate tow in Hefei, China. The Company owns a 50 percent interest in a joint venture that has a manufacturing facility in Nanjing, China. The Nanjing facility produces Eastotac ™ hydrocarbon tackifying resins for pressure-sensitive adhesives, caulks, and sealants. These also include a joint venture with a 50 percent interest for the manufacture of compounded cellulose diacetate ("CDA") in Shenzhen, China. CDA is a bio-derived material, which is used in various injection molded applications, including but not limited to ophthalmic frames, tool handles, and other end-use products. At December 31, 2019 and 2018 , the Company's total investment in these joint ventures was $106 million and $100 million |
PAYABLES AND OTHER CURRENT LIAB
PAYABLES AND OTHER CURRENT LIABILITIES | 12 Months Ended |
Dec. 31, 2019 | |
Payables and Accruals [Abstract] | |
PAYABLES AND OTHER CURRENT LIABILITIES | PAYABLES AND OTHER CURRENT LIABILITIES December 31, (Dollars in millions) 2019 2018 Trade creditors $ 890 $ 914 Accrued payrolls, vacation, and variable-incentive compensation 176 197 Accrued taxes 89 94 Post-employment obligations 93 80 Dividends payable to shareholders 90 87 Other 280 236 Total payables and other current liabilities $ 1,618 $ 1,608 The "Other" above consists primarily of accruals for the current portion of operating lease liabilities, interest payable, the current portion of derivative hedging liabilities, the current portion of environmental liabilities, and miscellaneous accruals. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
PROVISION FOR INCOME TAXES | 7. INCOME TAXES Components of earnings before income taxes and the provision for (benefit from) U.S. and other income taxes from operations follow: For years ended December 31, (Dollars in millions) 2019 2018 2017 Earnings before income taxes United States $ 454 $ 718 $ 654 Outside the United States 448 592 635 Total $ 902 $ 1,310 $ 1,289 Provision for (benefit from) income taxes United States Federal Current (1) $ 55 $ 161 $ 220 Deferred (2) 19 (11 ) (383 ) Outside the United States Current 62 86 62 Deferred (32 ) (22 ) 2 State and other Current — 30 13 Deferred 36 (18 ) (13 ) Total $ 140 $ 226 $ (99 ) (1) A one-time transition tax of $71 million on deferred foreign income tax is included for 2017. (2) Includes a one-time benefit of $517 million primarily due to the remeasurement of certain net deferred tax liabilities using the lower U.S. corporate income tax rate and a one-time $72 million valuation allowance on deferred tax assets for foreign tax credit carryforwards for 2017. The following represents the deferred tax (benefit) charge recorded as a component of AOCI in the Consolidated Statements of Financial Position: For years ended December 31, (Dollars in millions) 2019 2018 2017 Defined benefit pension and other postretirement benefit plans $ (10 ) $ (10 ) $ (16 ) Derivatives and hedging (2 ) 3 8 Total $ (12 ) $ (7 ) $ (8 ) Total income tax expense (benefit) included in the consolidated financial statements was composed of the following: For years ended December 31, (Dollars in millions) 2019 2018 2017 Earnings before income taxes $ 140 $ 226 $ (99 ) Other comprehensive income (12 ) (7 ) (8 ) Total $ 128 $ 219 $ (107 ) Differences between the provision for (benefit from) income taxes and income taxes computed using the U.S. Federal statutory income tax rate follow: For years ended December 31, (Dollars in millions) 2019 2018 2017 Amount computed using the statutory rate $ 189 $ 274 $ 450 State income taxes, net 36 6 (4 ) Foreign rate variance (68 ) (52 ) (150 ) Domestic manufacturing deduction — — (18 ) Change in reserves for tax contingencies 36 21 20 General business credits (52 ) (60 ) (65 ) U.S. tax on foreign earnings (17 ) 10 29 Foreign tax credits — (12 ) (26 ) Tax law changes and tax loss from outside-U.S. entity reorganizations (1) 7 20 (339 ) Other 9 19 4 Provision for (benefit from) income taxes $ 140 $ 226 $ (99 ) Effective income tax rate 16 % 17 % (8 )% (1) Includes a one-time net benefit primarily due to the remeasurement of certain net deferred tax liabilities using the lower U.S. corporate income tax rate partially offset by the transition tax on deferred foreign income and changes in the valuation of deferred tax assets associated with tax law changes and the tax impact from intercompany reorganization activities in 2017 and a net incremental adjustment to those amounts under the Tax Reform Act in 2018 and 2019. The 2019 effective tax rate includes a $7 million increase to the provision for income taxes resulting from adjustments to the net tax benefit recognized in fourth quarter 2017 resulting from tax law changes, primarily the Tax Reform Act. The 2019 effective tax rate also includes adjustments to the tax provision to reflect finalization of prior year's income tax returns and an increase to state income taxes related to additional valuation allowance provided against state income tax credits. The 2018 effective tax rate included the impact of the U.S. corporate tax rate reduction resulting from the Tax Reform Act and the repeal of the domestic manufacturing deduction. The 2018 effective tax rate also included a $20 million increase to the provision for income taxes resulting from adjustments to the net tax benefit recognized in fourth quarter 2017 resulting from tax law changes, primarily the Tax Reform Act. These adjustments related to the one-time transition tax on deferred foreign income and changes in valuation of deferred tax assets associated with tax law changes and outside-U.S. entity reorganizations as part of the formation of an international treasury services center. The 2017 effective tax rate included a $339 million net tax benefit, primarily resulting from the Tax Reform Act, and a tax loss from outside-U.S. entity reorganizations as part of the formation of an international treasury services center. The net tax benefit included a benefit from the one-time revaluation of deferred tax liabilities, partially offset by a one-time transition tax on deferred foreign income and changes in valuation of deferred tax assets associated with tax law changes and outside-U.S. entity reorganizations as part of the formation of an international treasury services center. The 2017 effective tax rate also included a $20 million benefit due to amendments to prior years' domestic income tax returns, and a $30 million benefit reflecting the finalization of prior years' foreign income tax returns. The 2017 effective tax rate also included an $8 million tax benefit due to a tax ruling permitting deductibility of a liquidation loss on a previously impaired site. The U.S. Department of Treasury has 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 future periods may result in changes in the period of enactment to the amounts currently reported in the Consolidated Statements of Financial Position. As of December 31, 2019 and 2018, a non-current income tax payable of approximately $6 million and $56 million , respectively, attributable to the transition tax is reflected in "Other long-term liabilities" of the Consolidated Statements of Financial Position. In conjunction with its evaluation of the provisions of the Tax Reform Act, in 2018, the Company made an accounting policy election to account for taxes resulting from GILTI as a component of the provision for income taxes. The significant components of deferred tax assets and liabilities follow: December 31, (Dollars in millions) 2019 2018 (1) Deferred tax assets Post-employment obligations $ 247 $ 230 Net operating loss carryforwards 606 634 Tax credit carryforwards 239 239 Environmental reserves 68 70 Unrealized derivative loss 18 18 Other 173 94 Total deferred tax assets 1,351 1,285 Less: Valuation allowance 453 487 Deferred tax assets less valuation allowance $ 898 $ 798 Deferred tax liabilities Property, plant, and equipment $ (895 ) $ (856 ) Intangible assets (439 ) (473 ) Investments (235 ) (179 ) Other (178 ) (131 ) Total deferred tax liabilities $ (1,747 ) $ (1,639 ) Net deferred tax liabilities $ (849 ) $ (841 ) As recorded in the Consolidated Statements of Financial Position: Other noncurrent assets $ 66 $ 43 Deferred income tax liabilities (915 ) (884 ) Net deferred tax liabilities $ (849 ) $ (841 ) (1) Revised from Note 7, "Income Taxes" , to the Company's 2018 Annual Report on Form 10-K, which reported net operating loss carryforwards as $708 million , valuation allowance as $466 million , and investments as $(274) million . Beginning January 1, 2019, the Company did not assert indefinite reinvestment on short-term liquid assets of certain foreign subsidiaries. All other foreign earnings, including basis differences, continue to be considered indefinitely reinvested. As of December 31, 2019 unremitted earnings of subsidiaries outside the U.S. totaled approximately $2.5 billion of which a substantial portion has already been subject to U.S. tax. The Company has not determined the deferred tax liability associated with these unremitted earnings and basis differences, as such determination is not practicable. For certain consolidated foreign subsidiaries, income and losses directly flow through to taxable income in the U.S. These entities are also subject to taxation in the foreign tax jurisdictions. Net operating loss carryforwards exist to offset future taxable income in foreign tax jurisdictions and valuation allowances are provided to reduce deferred related tax assets if it is more likely than not that this benefit will not be realized. Changes in the estimated realizable amount of deferred tax assets associated with net operating losses for these entities could result in changes in the deferred tax asset valuation allowance in the foreign tax jurisdiction. At the same time, because these entities are also subject to tax in the U.S., a deferred tax liability for the expected future taxable income will be established concurrently. Therefore, the impact of any reversal of valuation allowances on consolidated income tax expense will be only to the extent that there are differences between the U.S. statutory tax rate and the tax rate in the foreign jurisdiction. A valuation allowance of $24 million at December 31, 2019 has been provided against the deferred tax asset resulting from these operating loss carryforwards. At December 31, 2019 , foreign net operating loss carryforwards totaled $2.1 billion . Of this total, $23 million will expire in 1 to 20 years and $2.1 billion have no expiration date. A valuation allowance of approximately $262 million has been provided against such net operating loss carryforwards. At December 31, 2019 , federal net operating loss carryforwards of $8 million were available to offset future taxable income, which expire from 2028 to 2030. At December 31, 2019 , foreign tax credit carryforwards of approximately $75 million were available to reduce possible future U.S. income taxes and which expire from 2020 to 2028. As a result of the Tax Reform Act, the Company may no longer be able to utilize certain U.S. foreign tax credit carryforwards. A valuation allowance of $45 million has been established on a portion of deferred tax assets as of December 31, 2019 . At December 31, 2019 , a partial valuation allowance of $72 million has been provided against state tax credits that the Company may not be able to utilize. A partial valuation allowance of $47 million has been established for the Solutia, Inc. ("Solutia") state net operating loss carryforwards. The valuation allowance will be retained until there is sufficient positive evidence to conclude that it is more likely than not that the deferred tax assets will be realized, or the related statute expires. Amounts due to and from tax authorities as recorded in the Consolidated Statements of Financial Position: December 31, (Dollars in millions) 2019 2018 Miscellaneous receivables $ 211 $ 135 Payables and other current liabilities $ 36 $ 43 Other long-term liabilities 139 162 Total income taxes payable $ 175 $ 205 A reconciliation of the beginning and ending amounts of unrecognized tax benefits is as follows: (Dollars in millions) 2019 2018 2017 Balance at January 1 $ 182 $ 142 $ 114 Adjustments based on tax positions related to current year 22 44 29 Lapse of statute of limitations (2 ) (4 ) (1 ) Balance at December 31 (1) $ 202 $ 182 $ 142 (1) All of the unrecognized tax benefits would, if recognized, impact the Company's effective tax rate. A reconciliation of the beginning and ending amounts of accrued interest related to unrecognized tax positions is as follows: (Dollars in millions) 2019 2018 2017 Balance at January 1 $ 10 $ 6 $ 4 Expense for interest, net of tax 5 4 3 Income for interest, net of tax (2 ) — (1 ) Balance at December 31 $ 13 $ 10 $ 6 Accrued penalties related to unrecognized tax positions were immaterial as of December 31, 2019, 2018, and 2017. Eastman files income tax returns in the U.S. and various state and foreign jurisdictions. The Company is no longer subject to U.S. Federal income tax examinations by tax authorities for years before 2011 for Eastman legal entities and years before 2002 for Solutia legal entities. With few exceptions, Eastman is no longer subject to state and local income tax examinations by tax authorities for years before 2011. Solutia and related subsidiaries are no longer subject to state and local income tax examinations for years before 2000. With few exceptions, the Company is no longer subject to foreign income tax examinations by tax authorities for tax years before 2011. It is reasonably possible that, as a result of the resolution of federal, state, and foreign examinations and appeals, and the expiration of various statutes of limitation, unrecognized tax benefits could decrease within the next twelve months by up to $28 million . |
BORROWINGS
BORROWINGS | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
BORROWINGS | BORROWINGS December 31, (Dollars in millions) 2019 2018 Borrowings consisted of: 2.7% notes due January 2020 $ — $ 250 4.5% notes due January 2021 185 185 3.5% notes due December 2021 298 297 3.6% notes due August 2022 741 739 1.50% notes due May 2023 (1) 840 855 7 1/4% debentures due January 2024 198 197 7 5/8% debentures due June 2024 43 43 3.8% notes due March 2025 695 691 1.875% notes due November 2026 (1) 556 566 7.60% debentures due February 2027 195 195 4.5% notes due December 2028 493 492 4.8% notes due September 2042 493 493 4.65% notes due October 2044 874 872 Commercial paper and short-term borrowings 171 243 Credit facilities borrowings — 50 Total borrowings 5,782 6,168 Borrowings due within one year 171 243 Long-term borrowings $ 5,611 $ 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. In fourth quarter 2019 , the Company repaid the 2.7% notes due January 2020 ( $250 million principal) using available cash. There were no material debt extinguishment costs associated with the early repayment of this debt. The total consideration for this redemption is reported under financing activities on the Consolidated Statements of Cash Flows. In fourth quarter 2018, the Company sold 3.5% notes due December 2021 in the principal amount of $300 million and 4.5% notes due December 2028 in the principal amount of $500 million . Net proceeds from the notes were $789 million and were used, together with available cash, for the early and full repayment of the 5.5% notes due November 2019 ( $250 million principal) and the partial redemption of the 2.7% notes due January 2020 ( $550 million principal). Total consideration for these redemptions was $806 million ( $800 million total principal and $6 million for the early redemption premiums) and is reported as financing activities on the Consolidated Statements of Cash Flows. The early repayment resulted in a charge of $7 million for early debt extinguishment costs which were primarily attributable to the early redemption premiums and related unamortized costs. The book value of the redeemed debt was $799 million . Revolving 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 December 31, 2019 and 2018 , the Company had no outstanding borrowings under the Credit Facility. At December 31, 2019 , commercial paper borrowings were $170 million with a weighted average interest rate of 2.03 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. At December 31, 2019 , the Company had no borrowings 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 . Through September 2019, the Company had access to borrowings of up to €150 million ( $163 million ) under a receivables facility based on the discounted value of selected customer accounts receivable. These arrangements included receivables in the United States, Belgium, and Finland, and were subject to various eligibility requirements. Borrowings under this facility were subject to interest at an agreed spread above LIBOR and EURIBOR plus administration and insurance fees and were classified as short-term. In October 2019, this receivables facility was terminated and the balance was repaid using available A/R Facility borrowings. 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 December 31, 2019 and December 31, 2018 . Fair Value of Borrowings Eastman has classified its total borrowings at December 31, 2019 and 2018 under the fair value hierarchy as defined in the accounting policies in Note 1, "Significant Accounting Policies" . 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 December 31, 2019 and 2018 , the fair value of total borrowings was $6.275 billion and $6.216 billion , respectively. The Company had no borrowings classified as Level 1 or Level 3 as of December 31, 2019 and 2018 . |
DERIVATIVE AND NON-DERIVATIVE F
DERIVATIVE AND NON-DERIVATIVE FINANCIAL INSTRUMENTS | 12 Months Ended |
Dec. 31, 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. Cash Flow Hedges Cash flow hedges are derivative instruments designated as 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 Consolidated Statements of Financial Position and reclassified into 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 Consolidated Statements of Cash Flows. Foreign Currency Exchange Rate Hedging Eastman manufactures and sells its products in a number of countries throughout the world and, as a result, is exposed to changes in foreign currency exchange rates. To manage the volatility relating to these exposures, the Company nets the exposures on a consolidated basis to take advantage of natural offsets. To manage the remaining exposure, the Company enters into currency option and forward cash flow hedges to hedge probable anticipated, but not yet committed, export sales and purchase transactions expected within a rolling three year period and denominated in foreign currencies (principally the euro). Additionally, the Company, from time to time, enters into forward exchange contract cash flow hedges to hedge certain firm commitments denominated in foreign currencies. Commodity Hedging Certain raw material and energy sources used by Eastman, as well as sales of certain commodity products by the Company, are subject to price volatility caused by weather, supply and demand conditions, economic variables and other unpredictable factors. This volatility is primarily related to the market pricing of propane, ethane, natural gas, paraxylene, ethylene, and benzene. In order to mitigate expected fluctuations in market prices, from time to time, the Company enters into option and forward contracts and designates these contracts as cash flow hedges. The Company currently hedges commodity price risks using derivative financial instrument transactions within a rolling three year period. The Company weights its hedge portfolio more heavily in the first year with declining coverage over the remaining periods. Interest Rate Hedging Eastman's policy is to manage interest expense using a mix of fixed and variable rate debt. To manage interest rate risk effectively, the Company, from time to time, enters into cash flow interest rate derivative instruments, primarily forward starting swaps and treasury locks, to hedge the Company's exposure to movements in interest rates prior to anticipated debt offerings. These instruments are designated as cash flow hedges. Fair Value Hedges Fair value hedges are defined as derivative or non-derivative instruments designated as 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 Consolidated Statements of Cash Flows. Interest Rate Hedging Eastman's policy is to manage interest expense using a mix of fixed and variable rate debt. To manage the Company's mix of fixed and variable rate debt effectively, from time to time, the Company enters into interest rate swaps in which the Company agrees to exchange the difference between fixed and variable interest amounts calculated by reference to an agreed upon notional principal amount. These swaps are designated as hedges of the fair value of the underlying debt obligations and the interest rate differential is reflected as an adjustment to interest expense over the life of the swaps. Net Investment Hedges Net investment hedges are defined as derivative or non-derivative instruments designated as and used to hedge the foreign currency exposure of the net investment 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 CTA within AOCI located in the Consolidated Statements of Financial Position. 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 Consolidated Statements 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 Consolidated Statements of Financial Position. Cash flows from excluded components are classified as operating activities in the Consolidated Statements 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 December 31, 2019 and 2018 associated with Eastman's hedging programs. Notional Outstanding December 31, 2019 December 31, 2018 Derivatives designated as cash flow hedges: Foreign Exchange Forward and Option Contracts (in millions) EUR/USD (in EUR) €630 €263 Commodity Forward and Collar Contracts Feedstock (in million barrels) 1 5 Energy (in million british thermal units) 27 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) €1,243 €1,241 Fair Value Measurements For additional information on fair value measurement, see Note 1, "Significant Accounting Policies" . All 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 the transaction's counterparty 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 realize a credit loss during the years ended December 31, 2019 or 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 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 Consolidated Statements of Financial Position as of December 31, 2019 and 2018 . The Financial Position and Fair Value Measurements of Hedging Instruments on a Gross Basis (Dollars in millions) Derivative Type Statements of Financial Position Location December 31, 2019 Level 2 December 31, 2018 Level 2 Derivatives designated as cash flow hedges: Commodity contracts Other current assets $ — $ 4 Foreign exchange contracts Other current assets 13 15 Foreign exchange contracts Other noncurrent assets 2 4 Derivatives designated as fair value hedges: Fixed-for-floating interest rate swap Other current assets 1 1 Derivatives designated as net investment hedges: Cross-currency interest rate swaps Other noncurrent assets 68 26 Total Derivative Assets $ 84 $ 50 Derivatives designated as cash flow hedges: Commodity contracts Payables and other current liabilities $ 26 $ 24 Commodity contracts Other long-term liabilities 2 5 Foreign exchange contracts Payables and other current liabilities 1 — Foreign exchange contracts Other long-term liabilities 2 — Derivatives designated as fair value hedges: Fixed-for-floating interest rate swap Long-term borrowings 1 4 Total Derivative Liabilities $ 32 $ 33 Total Net Derivative Assets (Liabilities) $ 52 $ 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 a carrying value of $1.4 billion associated with non-derivative instruments designated as foreign currency net investment hedges as of both December 31, 2019 and 2018 . The designated foreign currency-denominated borrowings are included as part of "Long-term borrowings" within the Consolidated Statements of Financial Position. As of December 31, 2019 and 2018 , the following amounts were included within the 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 Consolidated Statements of Financial Position in which the hedged item is included December 31, 2019 December 31, 2018 December 31, 2019 December 31, 2018 Long-term borrowings (1) $ 763 $ 759 $ (7 ) $ (12 ) (1) At both December 31, 2019 and 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 the twelve months ended December 31, 2019 and 2018 : (Dollars in millions) Change in amount of after tax gain/(loss) recognized in OCI on Derivatives Pre-tax amount of gain/(loss) reclassified from AOCI into income December 31, December 31, Hedging Relationships 2019 2018 2019 2018 Derivatives in cash flow hedging relationships: Commodity contracts $ (2 ) $ — $ (40 ) $ (3 ) Foreign exchange contracts (5 ) 3 26 29 Forward starting interest rate and treasury lock swap contracts 4 4 (6 ) (5 ) Non-derivatives in net investment hedging relationships (pre-tax): Net investment hedges 26 67 — — Derivatives in net investment hedging relationships (pre-tax): Cross-currency interest rate swaps 19 26 — — Cross-currency interest rate swaps excluded component 23 — — — The following table presents the effect of fair value and cash flow hedge accounting on the Consolidated Statements of Earnings, Comprehensive Income and Retained Earnings for 2019 and 2018 . Location and Amount of Gain or (Loss) Recognized in Earnings on Fair Value and Cash Flow Hedging Relationships Twelve 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 Consolidated Statements of Earnings, Comprehensive Income and Retained Earnings in which the effects of fair value or cash flow hedges are recognized $ 9,273 $ 7,039 $ 218 $ 10,151 $ 7,672 $ 235 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 (6 ) (5 ) Commodity Contracts: Amount reclassified from AOCI into earnings (40 ) (3 ) Foreign Exchange Contracts: Amount reclassified from AOCI into earnings 26 29 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 Consolidated Statements of Earnings, Comprehensive Income and Retained Earnings. The Company recognized a net loss of $2 million and net loss of $13 million during 2019 and 2018 , respectively, on these derivatives. Pre-tax monetized positions and MTM gains and losses from raw materials and energy, currency, and certain interest rate hedges that were included in AOCI included losses of $50 million at December 31, 2019 and losses of $112 million at December 31, 2018 . Losses in AOCI decreased in 2019 compared to 2018 primarily as a result of a decrease in foreign currency exchange rates, particularly the euro. If realized, approximately $24 million in pre-tax losses will be reclassified into earnings during the next 12 months. |
RETIREMENT PLANS
RETIREMENT PLANS | 12 Months Ended |
Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |
RETIREMENT PLANS | RETIREMENT PLANS As described below, Eastman offers various postretirement benefits to its employees. Defined Contribution Plans Eastman sponsors a defined contribution employee stock ownership plan (the "ESOP"), which is a component of the Eastman Investment Plan and Employee Stock Ownership Plan ("EIP/ESOP"), under Section 401(a) of the Internal Revenue Code. Eastman made a contribution in February 2020 to the EIP/ESOP for substantially all U.S. employees equal to 5 percent of their eligible compensation for the 2019 plan year. Employees may allocate contributions to other investment funds within the EIP from the ESOP at any time without restrictions. Allocated shares in the ESOP totaled 2,076,203 ; 2,119,614 ; and 2,130,176 shares as of December 31, 2019 , 2018 , and 2017 , respectively. Dividends on shares held by the EIP/ESOP are charged to retained earnings. All shares held by the EIP/ESOP are treated as outstanding in computing earnings per share ("EPS"). In 2006, the Company amended its EIP/ESOP to provide a Company match of 50 percent of the first 7 percent of an employee's compensation contributed to the plan for employees who are hired on or after January 1, 2007. Employees who are hired on or after January 1, 2007, are also eligible for the contribution to the ESOP as described above. Charges for domestic contributions to the EIP/ESOP were $68 million , $67 million , and $64 million for 2019 , 2018 , and 2017 , respectively. Defined Benefit Pension Plans and Other Postretirement Benefit Plans Pension Plans Eastman maintains defined benefit pension plans that provide eligible employees with retirement benefits. Effective January 1, 2000, the Company's Eastman Retirement Assistance Plan, a U.S. defined benefit pension plan, was amended. Employees' accrued pension benefits earned prior to January 1, 2000 are calculated based on previous plan provisions using the employee's age, years of service, and final average compensation as defined in the plans. The amended plan uses a pension equity formula to calculate an employee's retirement benefits from January 1, 2000 forward. Benefits payable will be the combined pre-2000 and post-1999 benefits. Employees hired on or after January 1, 2007 are not eligible to participate in Eastman's U.S. defined benefit pension plans. Benefits are paid to employees from trust funds. Contributions to the trust funds are made as permitted by laws and regulations. The pension trust funds do not directly own any of the Company's common stock. Pension coverage for employees of Eastman's non-U.S. operations is provided, to the extent deemed appropriate, through separate plans. The Company systematically provides for obligations under such plans by depositing funds with trustees, under insurance policies, or by book reserves. Other Postretirement Benefit Plans Under its other postretirement benefit plans in the U.S., Eastman provides life insurance for eligible retirees hired prior to January 1, 2007. Eastman 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. A few of the Company's non-U.S. operations have supplemental health benefit plans for certain retirees, the cost of which is not significant to the Company. Below is a summary balance sheet of the change in plan assets during 2019 and 2018 , the funded status of the plans and amounts recognized in the Consolidated Statements of Financial Position. Summary of Changes Pension Plans Postretirement Benefit Plans 2019 2018 2019 2018 (Dollars in millions) U.S. Non-U.S. U.S. Non-U.S. Change in projected benefit obligation: Benefit obligation, beginning of year $ 1,959 $ 840 $ 2,154 $ 893 $ 672 $ 738 Service cost 27 14 35 14 — — Interest cost 76 20 67 20 25 22 Actuarial (gain) loss 200 113 (119 ) (20 ) 71 (33 ) Plan participants' contributions — 1 — 1 10 11 Effect of currency exchange — 11 — (45 ) 1 (1 ) Benefits paid (195 ) (27 ) (178 ) (23 ) (63 ) (65 ) Benefit obligation, end of year $ 2,067 $ 972 $ 1,959 $ 840 $ 716 $ 672 Change in plan assets: Fair value of plan assets, beginning of year $ 1,820 $ 713 $ 2,054 $ 773 $ 135 $ 148 Actual return on plan assets 289 102 (61 ) (19 ) 27 (6 ) Effect of currency exchange — 9 — (39 ) — — Company contributions 5 22 5 20 42 43 Reserve for third party contributions — — — — (12 ) 4 Plan participants' contributions — 1 — 1 10 11 Benefits paid (195 ) (27 ) (178 ) (23 ) (63 ) (65 ) Fair value of plan assets, end of year $ 1,919 $ 820 $ 1,820 $ 713 $ 139 $ 135 Funded status at end of year $ (148 ) $ (152 ) $ (139 ) $ (127 ) $ (577 ) $ (537 ) Amounts recognized in the Consolidated Statements of Financial Position consist of: Other noncurrent assets $ 13 $ — $ 2 $ — $ 50 $ 41 Current liabilities (3 ) (1 ) (4 ) (1 ) (47 ) (45 ) Post-employment obligations (158 ) (151 ) (137 ) (126 ) (580 ) (533 ) Net amount recognized, end of year $ (148 ) $ (152 ) $ (139 ) $ (127 ) $ (577 ) $ (537 ) Accumulated benefit obligation $ 2,005 $ 919 $ 1,900 $ 796 Amounts recognized in accumulated other comprehensive income consist of: Prior service (credit) cost $ 2 $ — $ 2 $ — $ (143 ) $ (182 ) Information for pension plans with projected benefit obligations in excess of plan assets: (Dollars in millions) 2019 2018 U.S. Non-U.S. U.S. Non-U.S. Projected benefit obligation $ 1,673 $ 972 $ 1,726 $ 840 Fair value of plan assets 1,512 820 1,585 713 Information for pension plans with accumulated benefit obligations in excess of plan assets: (Dollars in millions) 2019 2018 U.S. Non-U.S. U.S. Non-U.S. Projected benefit obligation $ 1,673 $ 651 $ 1,726 $ 568 Accumulated benefit obligation 1,611 625 1,667 547 Fair value of plan assets 1,512 513 1,585 448 Summary of Benefit Costs and Other Amounts Recognized in Other Comprehensive Income Pension Plans Postretirement Benefit Plans 2019 2018 2017 2019 2018 2017 (Dollars in millions) U.S. Non-U.S. U.S. Non-U.S. U.S. Non-U.S. Components of net periodic benefit (credit) cost: Service cost $ 27 $ 14 $ 35 $ 14 $ 37 $ 13 $ — $ — $ 3 Interest cost 76 20 67 20 66 20 25 22 23 Expected return on plan assets (128 ) (32 ) (147 ) (37 ) (140 ) (35 ) (5 ) (5 ) (5 ) Amortization of: Prior service (credit) cost — — (1 ) 1 (4 ) 1 (39 ) (40 ) (40 ) Mark-to-market pension and other postretirement benefits (gain) loss, net 39 43 89 36 (37 ) (7 ) 61 (26 ) 23 Net periodic benefit (credit) cost $ 14 $ 45 $ 43 $ 34 $ (78 ) $ (8 ) $ 42 $ (49 ) $ 4 Other changes in plan assets and benefit obligations recognized in other comprehensive income: Amortization of: Prior service (credit) cost $ — $ — $ (1 ) $ 1 $ (4 ) $ 1 $ (39 ) $ (40 ) $ (40 ) Total $ — $ — $ (1 ) $ 1 $ (4 ) $ 1 $ (39 ) $ (40 ) $ (40 ) The estimated prior service credit for the other postretirement benefit plans that will be amortized from AOCI into net periodic cost in 2020 is $38 million . Plan Assumptions The assumptions used to develop the projected benefit obligation for Eastman's significant U.S. and non-U.S. defined benefit pension plans and U.S. postretirement benefit plans are provided in the following tables. Pension Plans Postretirement Benefit Plans 2019 2018 2017 2019 2018 2017 Weighted-average assumptions used to determine benefit obligations for years ended December 31: U.S. Non-U.S. U.S. Non-U.S. U.S. Non-U.S. Discount rate 3.25 % 1.56 % 4.29 % 2.35 % 3.57 % 2.25 % 3.21 % 4.26 % 3.54 % Rate of compensation increase 3.25 % 2.94 % 3.25 % 2.94 % 3.25 % 2.95 % 3.25 % 3.25 % 3.25 % Health care cost trend Initial 6.50 % 6.50 % 6.75 % Decreasing to ultimate trend of 5.00 % 5.00 % 5.00 % in year 2026 2025 2025 Weighted-average assumptions used to determine net periodic cost for years ended December 31: U.S. Non-U.S. U.S. Non-U.S. U.S. Non-U.S. Discount rate 4.29 % 2.35 % 3.57 % 2.25 % 3.89 % 2.33 % 4.26 % 3.54 % 3.91 % Discount rate for service cost 4.32 % 2.35 % 3.64 % 2.25 % 3.89 % 2.33 % 4.05 % 3.28 % 4.31 % Discount rate for interest cost 3.96 % 2.35 % 3.18 % 2.25 % 3.24 % 2.33 % 3.93 % 3.14 % 3.28 % Expected return on assets 7.43 % 4.49 % 7.48 % 4.83 % 7.49 % 5.02 % 3.75 % 3.75 % 3.75 % Rate of compensation increase 3.25 % 2.94 % 3.25 % 2.95 % 3.25 % 2.94 % 3.25 % 3.25 % 3.25 % Health care cost trend Initial 6.50 % 6.75 % 7.00 % Decreasing to ultimate trend of 5.00 % 5.00 % 5.00 % in year 2025 2025 2021 The Company calculates service and interest cost components of net periodic benefit costs for its significant defined benefit pension and other postretirement benefit plans by applying the specific spot rates along the yield curve to the plans' projected cash flows. A 6.50 percent rate of increase in per capita cost of covered health care benefits is assumed for 2020 . The rate is assumed to decrease gradually to five percent in 2026 and remain at that level thereafter. A one percent increase or decrease in health care cost trend would have had no material impact on the 2019 service and interest costs or the 2019 benefit obligation, because the Company's contributions for benefits are fixed. In 2017, the Company performed a five year experience study on assumptions for the U.S. plans, including a review of the mortality tables. As a result of the study, the Company has updated the mortality assumptions used to a modified RP-2017 table with a modified MP-2017 improvement scale and no collar adjustment. The fair value of plan assets for the U.S. pension plans at December 31, 2019 and 2018 was $1.9 billion and $1.8 billion , respectively, while the fair value of plan assets at December 31, 2019 and 2018 for non-U.S. pension plans was $820 million and $713 million , respectively. At December 31, 2019 and 2018 , the expected weighted-average long-term rate of return on U.S. pension plan assets was 7.37 percent and 7.43 percent, respectively. The expected weighted-average long-term rate of return on non-U.S. pension plans assets was 4.26 percent and 4.49 percent at December 31, 2019 and 2018 , respectively. Plan Assets The following tables reflect the fair value of the defined benefit pension plans assets. (Dollars in millions) Fair Value Measurements at December 31, 2019 Description Total Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Pension Assets: U.S. Non-U.S. U.S. Non-U.S. U.S. Non-U.S. U.S. Non-U.S. Cash & Cash Equivalents (1) $ 35 $ 72 $ 35 $ 72 $ — $ — $ — $ — Public Equity - United States (2) 1 — 1 — — — — — Other Investments (3) — 57 — — — — — 57 Total Assets at Fair Value $ 36 $ 129 $ 36 $ 72 $ — $ — $ — $ 57 Investments Measured at Net Asset Value (4) 1,883 691 Total Assets $ 1,919 $ 820 (Dollars in millions) Fair Value Measurements at December 31, 2018 Description Total Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs Pension Assets: U.S. Non-U.S. U.S. Non-U.S. U.S. Non-U.S. U.S. Non-U.S. Cash & Cash Equivalents (1) $ 16 $ 53 $ 16 $ 53 $ — $ — $ — $ — Public Equity - United States (2) 2 — 2 — — — — — Other Investments (3) — 51 — — — — — 51 Total Assets at Fair Value $ 18 $ 104 $ 18 $ 53 $ — $ — $ — $ 51 Investments Measured at Net Asset Value (4) 1,802 609 Total Assets $ 1,820 $ 713 (1) Cash & Cash Equivalents: Funds generally invested in actively managed collective trust funds or interest bearing accounts. (2) Public Equity - United States: Common stock equity securities which are primarily valued using a market approach based on the quoted market prices. (3) Other Investments: Primarily consist of insurance contracts which are generally valued using a crediting rate that approximates market returns and investments in underlying securities whose market values are unobservable and determined using pricing models, discounted cash flow methodologies, or similar techniques. (4) Investments Measured at Net Asset Value: The underlying debt and public equity investments in this category are generally held in common trust funds, which are either actively or passively managed investment vehicles, that are valued at the net asset value per unit/share multiplied by the number of units/shares held as of the measurement date. The other alternative investments in this category are valued under the practical expedient method which is based on the most recently reported net asset value provided by the management of each private investment fund, adjusted as appropriate, for any lag between the date of the financial reports and the measurement date. The following tables reflect the fair value of the postretirement benefit plan assets. The postretirement benefit plan is for the voluntary employees' beneficiary association ("VEBA") trust the Company assumed as part of the Solutia acquisition. (Dollars in millions) Fair Value Measurements at December 31, 2019 Description Total Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Postretirement Benefit Plan Assets: Debt (1) : Fixed Income (U.S.) $ 85 $ — $ 85 $ — Fixed Income (Non-U.S.) 26 — 26 — Total $ 111 $ — $ 111 $ — (Dollars in millions) Fair Value Measurements at Description Total Fair Value Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Postretirement Benefit Plan Assets: Cash & Cash Equivalents (2) $ 3 $ 3 $ — $ — Debt (1) : Fixed Income (U.S.) 78 — 78 — Fixed Income (Non-U.S.) 26 — 26 — Total $ 107 $ 3 $ 104 $ — (1) Debt: The fixed income securities are primarily valued upon a market approach, using matrix pricing and considering a security's relationship to other securities for which quoted prices in an active market may be available, or an income approach, converting future cash flows to a single present value amount. Inputs used in developing fair value estimates include reported trades, broker quotes, benchmark yields, and base spreads. (2) Cash & Cash Equivalents: Funds generally invested in actively managed collective trust funds or interest bearing accounts. The Company valued assets with unobservable inputs (Level 3), primarily insurance contracts, using a crediting rate that approximates market returns and investments in underlying securities whose market values are unobservable and determined using pricing models, discounted cash flow methodologies, or similar techniques. Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Other Investments (1) (Dollars in millions) Non-U.S. Pension Plans Balance at December 31, 2017 $ 51 Unrealized gains — Balance at December 31, 2018 51 Unrealized gains 5 Purchases, issuances, sales, and settlements 1 Balance at December 31, 2019 $ 57 (1) Primarily consists of insurance contracts. The following table reflects the target allocation for the Company's U.S. and non-U.S. pension and postretirement benefit plans assets for 2020 and the asset allocation at December 31, 2019 and 2018 , by asset category. U.S. Pension Plans Non-U.S. Pension Plans Postretirement Benefit Plan 2020 Target Allocation Plan Assets at Plan Assets at 2020 Target Allocation Plan Assets at Plan Assets at 2020 Target Allocation Plan Assets at Plan Assets at Asset category Equity securities 44% 50% 43% 24% 21% 19% —% —% —% Debt securities 39% 37% 44% 57% 53% 54% 100% 100% 100% Real estate 2% 2% 2% 5% 8% 8% —% —% —% Other investments (1) 15% 11% 11% 14% 18% 19% —% —% —% Total 100% 100% 100% 100% 100% 100% 100% 100% 100% (1) U.S. primarily consists of private equity and natural resource and energy related limited partnership investments. Non-U.S. primarily consists of annuity contracts and alternative investments. Investment Strategy Eastman's investment strategy for its defined benefit pension plans is to maximize the long-term rate of return on plan assets within an acceptable level of risk in order to meet or exceed the plan's actuarially assumed long-term rate of return and to minimize the cost of providing pension benefits. A periodic asset/liability study is conducted in order to assist in the determination and, if necessary, modification of the appropriate long-term investment policy for the plan. The investment policy establishes a target allocation range for each asset class and the fund is managed within those ranges. The plans use a number of investment approaches including investments in equity, real estate, and fixed income funds in which the underlying securities are marketable in order to achieve this target allocation. The plans also invest in private equity and other funds. Diversification is created through investments across various asset classes, geographies, fund managers, and individual securities. This investment process is designed to provide for a well-diversified portfolio with no significant concentration of risk. The investment process is monitored by an investment committee that includes senior management. Eastman's investment strategy for its VEBA trust is to invest in intermediate-term, well diversified, high quality investment instruments, with a primary objective of capital preservation. The expected rate of return for all plans was determined primarily by modeling the expected long-term rates of return for the categories of investments held by the plans and the targeted allocation percentage against various potential economic scenarios. The Company made no contributions to its U.S. defined benefit pension plans in 2019 or 2018 . For 2020 calendar year, there are no minimum required cash contributions for the U.S. defined benefit pension plans under the Employee Retirement Income Security Act of 1974, as amended, and the Internal Revenue Code of 1986, as amended. The estimated future benefit payments, reflecting expected future service, as appropriate, are as follows: Pension Plans Postretirement Benefit Plans (Dollars in millions) U.S. Non-U.S. 2020 $ 197 $ 31 $ 57 2021 161 30 57 2022 156 31 53 2023 151 34 47 2024 151 38 47 2025-2029 686 210 223 |
LEASES AND OTHER COMMITMENTS LE
LEASES AND OTHER COMMITMENTS LEASES AND OTHER COMMITMENTS | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Commitments Disclosure [Text Block] | LEASES AND OTHER COMMITMENTS 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 Consolidated Statements 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 that 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 December 31, 2019 , operating right-to-use assets of $197 million are included as a part of "Other noncurrent assets" in the Consolidated Statements 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 Consolidated Statements of Financial Position. As of December 31, 2019 , maturities of operating lease liabilities is provided below: (Dollars in millions) Operating lease liabilities 2020 $ 62 2021 49 2022 38 2023 25 2024 14 2025 and beyond 30 Total lease payments 218 Less: amounts of lease payments representing interest 22 Present value of future lease payments 196 Less: current obligations under leases 55 Long-term lease obligations $ 141 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. 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: For year ended (Dollars in millions) December 31, 2019 Lease costs: Operating lease costs $ 70 Short-term lease costs 40 Sublease income (2 ) Total $ 108 Other operating lease information: Cash paid for amounts included in the measurement of lease liabilities $ 72 Right-to-use assets obtained in exchange for new lease liabilities 54 Weighted-average remaining lease term, in years 5 Weighted-average discount rate 4.0 % Debt and Other Commitments Eastman's obligations are summarized in the following table. (Dollars in millions) Payments Due for Period Debt Securities Credit Facilities and Other Interest Payable Purchase Obligations Operating Leases Other Liabilities Total 2020 $ — $ 171 $ 173 $ 181 $ 62 $ 241 $ 828 2021 483 — 186 156 49 81 955 2022 741 — 175 102 38 87 1,143 2023 840 — 156 91 25 87 1,199 2024 240 — 137 100 14 89 580 2025 and beyond 3,307 — 1,414 1,967 30 1,106 7,824 Total $ 5,611 $ 171 $ 2,241 $ 2,597 $ 218 $ 1,691 $ 12,529 Estimated future payments of debt securities assumes the repayment of principal upon stated maturity, and actual amounts and the timing of such payments may differ materially due to repayment or other changes in the terms of such debt prior to maturity. Eastman had various purchase obligations at December 31, 2019 totaling approximately $2.6 billion over a period of approximately 30 years for materials, supplies, and energy incident to the ordinary conduct of business. Amounts in other liabilities represent the current estimated cash payments required to be made by the Company primarily for pension and other postretirement benefits, environmental loss contingency reserves, accrued compensation benefits, uncertain tax liabilities, and commodity and foreign exchange hedging in the periods indicated. Due to uncertainties in the timing of the effective settlement of tax positions with respect to taxing authorities, management is unable to determine the timing of payments related to uncertain tax liabilities and these amounts are included in the "2025 and beyond" line item. 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 $35 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. |
ENVIRONMENTAL MATTERS
ENVIRONMENTAL MATTERS | 12 Months Ended |
Dec. 31, 2019 | |
Environmental Matters [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" . 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 $287 million and $296 million at December 31, 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 Consolidated Statements of Financial Position as follows: (Dollars in millions) December 31, 2019 2018 Environmental contingent liabilities, current $ 20 $ 25 Environmental contingent liabilities, long-term 267 271 Total $ 287 $ 296 Environmental Remediation Estimated future environmental expenditures for undiscounted remediation costs ranged from the best estimate or minimum of $260 million to the maximum of $487 million and from the best estimate or minimum of $271 million to the maximum of $508 million at December 31, 2019 and December 31, 2018 , respectively. The best estimate or minimum estimated future environmental expenditures are considered to be probable and reasonably estimable and include the amounts recognized at both December 31, 2019 and December 31, 2018 . Costs of certain remediation projects included in the environmental reserve are subject to a cost-sharing arrangement with Monsanto Company ("Monsanto") under the provisions of the Amended and Restated Settlement Agreement effective February 28, 2008 (the "Effective Date"), into which Solutia entered with Monsanto upon its emergence from bankruptcy (the "Monsanto Settlement Agreement"). Under the provisions of the Monsanto Settlement Agreement, Solutia, which became a wholly-owned subsidiary of Eastman on July 2, 2012, shares responsibility with Monsanto for remediation at certain locations outside of the boundaries of plant sites in Anniston, Alabama and Sauget, Illinois (the "Shared Sites"). Solutia is responsible for the funding of environmental liabilities at the Shared Sites up to a total of $325 million from the Effective Date. If remediation costs for the Shared Sites exceed this amount, such costs will thereafter be shared equally between Solutia and Monsanto. Including payments by Solutia prior to its acquisition by Eastman, $99 million had been paid for costs at the Shared Sites as of December 31, 2019 . As of December 31, 2019 , an additional $197 million has been recognized for estimated future remediation costs at the Shared Sites, over a period of approximately 30 years. 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 Consolidated Statements of Earnings, Comprehensive Income and Retained Earnings. Changes in the reserves for environmental remediation liabilities for twelve months ended 2019 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 4 Cash reductions (15 ) Balance at December 31, 2019 $ 260 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. Eastman recognizes a sset 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 of primarily 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 December 31, 2019 and December 31, 2018 , respectively. Other Environmental costs are capitalized if they extend the life of the related property, increase its capacity, or mitigate the possibility of future contamination. The cost of operating and maintaining environmental control facilities is charged to expense as incurred. Eastman's cash expenditures related to environmental protection and improvement were $244 million , $274 million , and $257 million in 2019 , 2018 , and 2017 , respectively, and include operating costs associated with environmental protection equipment and facilities, engineering costs, and construction costs. The cash expenditures above include environmental capital expenditures of approximately $27 million , $44 million , and $38 million in 2019 , 2018 , and 2017 , respectively. The Company also 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 $48 million and $46 million at December 31, 2019 and December 31, 2018 , respectively, and are included as part of "Other long-term liabilities" in the Consolidated Statements of Financial Position. |
LEGAL MATTERS
LEGAL MATTERS | 12 Months Ended |
Dec. 31, 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 | 12 Months Ended |
Dec. 31, 2019 | |
Stockholders' Equity Note [Abstract] | |
STOCKHOLDERS' EQUITY | STOCKHOLDERS' EQUITY A reconciliation of the changes in stockholders' equity for 2019 , 2018 , and 2017 is provided below: (Dollars in millions) 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, 2016 $ 2 $ 1,915 $ 5,721 $ (281 ) $ (2,825 ) $ 4,532 $ 76 $ 4,608 Net Earnings — — 1,384 — — 1,384 4 1,388 Cash Dividends (1) — — (303 ) — — (303 ) — (303 ) Other Comprehensive Income — — — 72 — 72 — 72 Share-Based Compensation Expense (2) — 52 — — — 52 — 52 Stock Option Exercises — 22 — — — 22 — 22 Other — (6 ) — — — (6 ) 1 (5 ) Share Repurchase — — — — (350 ) (350 ) — (350 ) Distributions to noncontrolling interest — — — — — — (4 ) (4 ) 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 (3) — — 16 — — 16 — 16 Net Earnings — — 1,080 — — 1,080 4 1,084 Cash Dividends (1) — — (325 ) — — (325 ) — (325 ) Other Comprehensive (Loss) — — — (36 ) — (36 ) — (36 ) Share-Based Compensation Expense (2) — 64 — — — 64 — 64 Stock Option Exercises — 18 — — — 18 — 18 Other (4) — (17 ) — — — (17 ) (1 ) (18 ) Share Repurchase — — — — (400 ) (400 ) — (400 ) Distributions to noncontrolling interest — — — — — — (5 ) (5 ) 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 (5) — — (20 ) 20 — — — — Net Earnings — — 759 — — 759 3 762 Cash Dividends (1) — — (347 ) — — (347 ) — (347 ) Other Comprehensive Income — — — 11 — 11 — 11 Share-Based Compensation Expense (2) — 59 — — — 59 — 59 Stock Option Exercises — 9 — — — 9 — 9 Other (4) — (11 ) — — — (11 ) — (11 ) Share Repurchase — — — — (325 ) (325 ) — (325 ) Distributions to noncontrolling interest — — — — — — (4 ) (4 ) Balance at December 31, 2019 $ 2 $ 2,105 $ 7,965 $ (214 ) $ (3,900 ) $ 5,958 $ 74 $ 6,032 (1) Cash dividends includes cash dividends paid and dividends declared, but unpaid. (2) Share-based compensation expense is the fair value of share-based awards. (3) On January 1, 2018, the Company adopted new accounting standards for revenue recognition and derivatives and hedging, which resulted in increases to beginning retained earnings of $53 million and $2 million , respectively. The Company also adopted a new accounting standard for income taxes, which resulted in a decrease to beginning retained earnings of $39 million . (4) Additional paid-in capital includes value of shares withheld for employees' taxes on vesting of share-based compensation awards. (5) 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. Eastman is authorized to issue 400 million shares of all classes of stock, of which 50 million may be preferred stock, par value $0.01 per share, and 350 million may be common stock, par value $0.01 per share. The Company declared dividends per share of $2.52 in 2019 , $2.30 in 2018 , and $2.09 in 2017 . The Company established a benefit security trust in 1997 to provide a degree of financial security for unfunded obligations under certain unfunded plans and contributed to the trust a warrant to purchase up to 6 million shares of common stock of the Company for par value. The warrant, which remains outstanding, is exercisable by the trustee if the Company does not meet certain funding obligations, which obligations would be triggered by certain occurrences, including a change in control or potential change in control, as defined, or failure by the Company to meet its payment obligations under certain covered unfunded plans. Such warrant is excluded from the computation of diluted EPS because the conditions upon which the warrant becomes exercisable have not been met. The additions to paid-in capital in 2019 , 2018 , and 2017 are primarily for compensation expense of equity awards and employee stock option exercises. In February 2014, the Company's Board of Directors authorized repurchase of up to $1 billion of the Company's outstanding common stock. The Company completed the $1 billion repurchase authorization in May 2018, acquiring a total of 12,215,950 shares. In February 2018, the Company's Board of Directors authorized the repurchase of up to $2 billion of the Company's outstanding common stock at such times, in such amounts, and on such terms, as determined by management to be in the best interest of the Company. As of December 31, 2019 , a total of 6,753,164 shares have been repurchased under this authorization for a total of $573 million . During 2019 , the Company repurchased 4,282,409 shares of common stock for a cost of approximately $325 million . During 2018 , the Company repurchased 3,959,878 shares of common stock for a cost of approximately $400 million . During 2017 , the Company repurchased 4,184,637 shares of common stock for a cost of approximately $350 million . The Company's charitable foundation held 50,798 issued and outstanding shares of the Company's common stock at December 31, 2019 , 2018 , and 2017 which are included in treasury stock in the Consolidated Statements of Financial Position and excluded from calculations of diluted EPS. The following table sets forth the computation of basic and diluted EPS: For years ended December 31, (In millions, except per share amounts) 2019 2018 2017 Numerator Net earnings attributable to Eastman $ 759 $ 1,080 $ 1,384 Denominator Weighted average shares used for basic EPS 137.4 141.2 144.8 Dilutive effect of stock options and other award plans 1.1 1.7 1.3 Weighted average shares used for diluted EPS 138.5 142.9 146.1 EPS (1) Basic $ 5.52 $ 7.65 $ 9.56 Diluted $ 5.48 $ 7.56 $ 9.47 (1) EPS is calculated using whole dollars and shares. Shares underlying stock options excluded from the 2019 , 2018 , and 2017 calculations of diluted EPS were 2,183,875 , 619,706 , and 204,978 , 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. Shares of common stock issued, including shares held in treasury, are presented below: For years ended December 31, 2019 2018 2017 Balance at beginning of year 219,140,523 218,369,992 217,707,600 Issued for employee compensation and benefit plans 498,123 770,531 662,392 Balance at end of year 219,638,646 219,140,523 218,369,992 Accumulated Other Comprehensive Income (Loss) (Dollars in millions) Cumulative Translation Adjustment Benefit Plans Unrecognized Prior Service Credits Unrealized Gains (Losses) on Cash Flow Hedges 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) 45 — (14 ) — 31 Balance at December 31, 2019 $ (264 ) $ 106 $ (55 ) $ (1 ) $ (214 ) (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 records deferred income taxes on the cumulative translation adjustment 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 cumulative translation adjustment of other subsidiaries outside the United States, as the cumulative translation adjustment is considered to be a component of indefinitely invested, unremitted earnings of these foreign subsidiaries. Components of total other comprehensive income (loss) recorded in the Consolidated Statements of Earnings, Comprehensive Income and Retained Earnings are presented below, before tax and net of tax effects: For years ended December 31, 2019 2018 2017 (Dollars in millions) Before Tax Net of Tax Before Tax Net of Tax Before Tax Net of Tax Change in cumulative translation adjustment $ 45 $ 45 $ (13 ) $ (13 ) $ 85 $ 85 Defined benefit pension and other postretirement benefit plans: Amortization of unrecognized prior service credits included in net periodic costs (39 ) (29 ) (40 ) (30 ) (43 ) (27 ) Derivatives and hedging: Unrealized gain (loss) during period (27 ) (20 ) 30 22 11 7 Reclassification adjustment for (gains) losses included in net income, net 20 15 (20 ) (15 ) 11 7 Total other comprehensive income (loss) $ (1 ) $ 11 $ (43 ) $ (36 ) $ 64 $ 72 For additional information regarding the impact of reclassifications into earnings, refer to Note 9, "Derivative and Non-Derivative Financial Instruments" , and Note 10, "Retirement Plans" . |
ASSET IMPAIRMENTS AND RESTRUCTU
ASSET IMPAIRMENTS AND RESTRUCTURING | 12 Months Ended |
Dec. 31, 2019 | |
Restructuring Costs and Asset Impairment Charges [Abstract] | |
ASSET IMPAIRMENTS AND RESTRUCTURING | ASSET IMPAIRMENTS AND RESTRUCTURING CHARGES, NET Components of asset impairments and restructuring charges, net, are presented below: For years ended December 31, (Dollars in millions) 2019 2018 2017 Asset impairments $ 27 $ — $ 1 Intangible asset and goodwill impairments 45 39 — Severance charges 45 6 6 Site closure and restructuring charges 9 — 1 Total $ 126 $ 45 $ 8 2019 In December 2019, management approved a plan to discontinue production of certain products at the Singapore manufacturing site by the end of 2020 resulting in an asset impairment charge of $27 million impacting the AFP and CI segments. As a result of the annual impairment test of goodwill, the Company recognized a $45 million goodwill impairment in the crop protection reporting unit (part of the AFP segment). Additionally, in 2019, as part of business improvement and cost reduction initiatives, the Company recognized restructuring charges of $45 million for severance and $5 million for related costs. Also included was an additional $4 million restructuring charge related to a capital project in the AFP segment that was discontinued in 2016. 2018 In 2018 asset impairments and restructuring charges, net consisted of restructuring charges of approximately $6 million for severance. As a result of the annual impairment test of goodwill, the Company recognized a $38 million goodwill impairment in the crop protection reporting unit (part of the AFP segment). Additionally, the Company recognized an intangible asset impairment of $1 million in the Advanced Materials ("AM") segment. 2017 In 2017 asset impairments and restructuring charges, net were $3 million of asset impairment and restructuring charges, including severance, in the AFP segment related to the closure of a facility in China and restructuring charges of approximately $5 million for severance. Reconciliations of the beginning and ending restructuring liability amounts are as follows: (Dollars in millions) Balance at January 1, 2019 Provision/ Adjustments Non-cash Reductions/ Additions Cash Reductions Balance at December 31, 2019 Non-cash charges $ — $ 72 $ (72 ) $ — $ — Severance costs 6 45 — (34 ) 17 Site closure & restructuring costs 8 9 1 (7 ) 11 Total $ 14 $ 126 $ (71 ) $ (41 ) $ 28 (Dollars in millions) Balance at Provision/ Adjustments Non-cash Reductions/ Additions Cash Balance at Non-cash charges $ — $ 39 $ (39 ) $ — $ — Severance costs 19 6 1 (20 ) 6 Site closure & restructuring costs 10 — — (2 ) 8 Total $ 29 $ 45 $ (38 ) $ (22 ) $ 14 (Dollars in millions) Balance at Provision/ Adjustments Non-cash Reductions/ Additions Cash Balance at Non-cash charges $ — $ 1 $ (1 ) $ — $ — Severance costs 42 6 — (29 ) 19 Site closure & restructuring costs 13 1 1 (5 ) 10 Total $ 55 $ 8 $ — $ (34 ) $ 29 Substantially all costs remaining for severance are expected to be applied to the reserves within one year. |
OTHER CHARGES (INCOME), NET
OTHER CHARGES (INCOME), NET | 12 Months Ended |
Dec. 31, 2019 | |
Other Income and Expenses [Abstract] | |
OTHER CHARGES (INCOME), NET | OTHER (INCOME) CHARGES, NET For years ended December 31, (Dollars in millions) 2019 2018 2017 Foreign exchange transaction losses (gains), net (1) $ 9 $ 12 $ 5 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 (10 ) (17 ) (12 ) Coal gasification incident property insurance — (65 ) — Cost of disposition of claims against discontinued Solutia operations — — 9 Gain from sale of business (2) — — (3 ) Other, net 4 4 5 Other (income) charges, net $ 3 $ (53 ) $ 4 (1) Net impact of revaluation of foreign entity assets and liabilities and effects of foreign exchange non-qualifying derivatives. (2) Gain resulting from the sale of the formulated electronic cleaning solution business in the AFP segment in 2017. |
SHARE-BASED COMPENSATION PLANS
SHARE-BASED COMPENSATION PLANS AND AWARDS | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
SHARE-BASED COMPENSATION PLANS AND AWARDS | SHARE-BASED COMPENSATION PLANS AND AWARDS 2017 Omnibus Stock Compensation Plan Eastman's 2017 Omnibus Stock Compensation Plan ("2017 Omnibus Plan") was approved by stockholders at the May 4, 2017 Annual Meeting of Stockholders and shall remain in effect until its fifth anniversary. The 2017 Omnibus Plan authorizes the Compensation and Management Development Committee of the Board of Directors to grant awards, designate participants, determine the types and numbers of awards, determine the terms and conditions of awards and determine the form of award settlement. Under the 2017 Omnibus Plan, the aggregate number of shares reserved and available for issuance is 10 million , which consist of shares not previously authorized for issuance under any other plan. The number of shares covered by an award is counted against this share reserve as of the grant date of the award. Shares covered by full value awards (e.g. performance shares and restricted stock awards) are counted against the total number of shares available for issuance or delivery under the plan as 2.5 shares for every one share covered by the award. Any stock distributed pursuant to an award may consist of, in whole or in part, authorized and unissued stock, treasury stock, or stock purchased on the open market. Under the 2017 Omnibus Plan and previous plans, the forms of awards have included restricted stock and restricted stock units, stock options, stock appreciation rights ("SARs"), and performance shares. The 2017 Omnibus Plan is flexible as to the number of specific forms of awards, but provides that stock options and SARs are to be granted at an exercise price not less than 100 percent of the per share fair market value on the date of the grant . Director Stock Compensation Subplan Eastman's 2018 Director Stock Compensation Subplan ("Directors' Subplan"), a component of the 2017 Omnibus Plan, remains in effect until terminated by the Board of Directors or the earlier termination of the 2017 Omnibus Plan. The Directors' Subplan provides for structured awards of restricted shares to non-employee members of the Board of Directors. Restricted shares awarded under the Directors' Subplan are subject to the same terms and conditions of the 2017 Omnibus Plan. The Directors' Subplan does not constitute a separate source of shares for grant of equity awards and all shares awarded are part of the 10 million shares authorized under the 2017 Omnibus Plan. Shares of restricted stock are granted on the first day of a non-employee director's initial term of service and shares of restricted stock are granted each year to each non-employee director on the date of the annual meeting of stockholders. It has been the Company's practice to issue new shares rather than treasury shares for equity awards for compensation plans, including the 2017 Omnibus Plan and the Directors' Subplan, that require settlement by the issuance of common stock and to withhold or accept back shares awarded to cover the related income tax obligations of employee participants. Shares of unrestricted common stock owned by non-employee directors are not eligible to be withheld or acquired to satisfy the withholding obligation related to their income taxes. Shares of unrestricted common stock owned by specified senior management level employees are accepted by the Company to pay the exercise price of stock options in accordance with the terms and conditions of their awards. Compensation Expense For 2019 , 2018 , and 2017 , total share-based compensation expense (before tax) of approximately $59 million , $64 million , and $52 million , respectively, was recognized in "Selling, general and administrative expense" in the Consolidated Statements of Earnings, Comprehensive Income and Retained Earnings for all share-based awards of which approximately $9 million , $9 million , and $8 million , respectively, related to stock options. The compensation expense is recognized over the substantive vesting period, which may be a shorter time period than the stated vesting period for qualifying termination eligible employees as defined in the forms of award notice. Approximately $3 million for both 2019 and 2018 and $2 million for 2017 of stock option compensation expense was recognized each year due to qualifying termination eligibility preceding the requisite vesting period. Stock Option Awards Options have been granted on an annual basis by the Compensation and Management Development Committee of the Board of Directors under the 2017 Omnibus Plan and predecessor plans to employees. Option awards have an exercise price equal to the closing price of the Company's stock on the date of grant. The term of options is 10 years with vesting periods that vary up to three years . Vesting usually occurs ratably over the vesting period or at the end of the vesting period. The Company utilizes the Black Scholes Merton option valuation model which relies on certain assumptions to estimate an option's fair value. The weighted average assumptions used in the determination of fair value for stock options awarded in 2019 , 2018 , and 2017 are provided in the table below: Assumptions 2019 2018 2017 Expected volatility rate 19.80% 19.03% 20.45% Expected dividend yield 2.51% 2.48% 2.64% Average risk-free interest rate 2.44% 2.61% 1.91% Expected term years 5.7 5.1 5.0 The volatility rate of grants is derived from historical Company common stock price volatility over the same time period as the expected term of each stock option award. The volatility rate is derived by mathematical formula utilizing the weekly high closing stock price data over the expected term. The expected dividend yield is calculated using the Company's average of the last four quarterly dividend yields . The average risk-free interest rate is derived from United States Department of Treasury published interest rates of daily yield curves for the same time period as the expected term. The weighted average expected term reflects the analysis of historical share-based award transactions and includes option swap and reload grants which may have much shorter remaining expected terms than new option grants. A summary of the activity of the Company's stock option awards for 2019 , 2018 , and 2017 is presented below: 2019 2018 2017 Options Weighted-Average Exercise Price Options Weighted-Average Exercise Price Options Weighted-Average Exercise Price Outstanding at beginning of year 2,905,600 $ 79 2,614,100 $ 70 2,363,700 $ 61 Granted 786,000 81 619,700 104 745,800 80 Exercised (135,700 ) 67 (323,000 ) 55 (489,300 ) 44 Cancelled, forfeited, or expired (76,600 ) 88 (5,200 ) 78 (6,100 ) 74 Outstanding at end of year 3,479,300 $ 80 2,905,600 $ 79 2,614,100 $ 70 Options exercisable at year-end 2,077,600 1,606,800 1,335,500 Available for grant at end of year 6,085,857 8,174,614 9,943,033 The following table provides the remaining contractual term and weighted average exercise prices of stock options outstanding and exercisable at December 31, 2019 : Options Outstanding Options Exercisable Range of Exercise Prices Number Outstanding at December 31, 2019 Weighted-Average Remaining Contractual Life (Years) Weighted-Average Exercise Price Number Exercisable at December 31, 2019 Weighted-Average Exercise Price $38-$50 176,700 1.5 $ 39 176,700 $ 39 $51-$73 720,500 5.9 67 625,100 66 $74-$89 1,985,100 7.1 81 1,076,800 79 $90-$104 597,000 8.2 104 199,000 — 104 3,479,300 6.8 $ 80 2,077,600 $ 74 The range of exercise prices of options outstanding at December 31, 2019 is approximately $38 to $104 per share. The aggregate intrinsic value of total options outstanding and total options exercisable at December 31, 2019 is $18 million and $17 million , respectively. Intrinsic value is the amount by which the closing market price of the stock at December 31, 2019 exceeds the exercise price of the option grants. The weighted average remaining contractual life of all exercisable options at December 31, 2019 is 5.5 years. The weighted average fair value of options granted during 2019 , 2018 , and 2017 was $13.12 , $15.90 , and $11.79 , respectively. The total intrinsic value of options exercised during the years ended December 31, 2019 , 2018 , and 2017 , was $2 million , $15 million , and $19 million , respectively. Cash proceeds received by the Company from option exercises totaled $9 million and the related tax benefit was de minimis for 2019 . Cash proceeds received by the Company from option exercises and the related tax benefit totaled $18 million and $3 million , respectively, for 2018 and $22 million and $5 million , respectively, for 2017 . The total fair value of shares vested during the years ended December 31, 2019 , 2018 , and 2017 was $8 million , $7 million , and $6 million , respectively. A summary of the changes in the Company's nonvested options during the year ended December 31, 2019 is presented below: Nonvested Options Number of Options Weighted-Average Grant Date Fair Value Nonvested at January 1, 2019 1,298,800 $13.63 Granted 786,000 $13.12 Vested (608,200 ) $12.89 Cancelled, forfeited, or expired (74,900 ) $13.43 Nonvested options at December 31, 2019 1,401,700 $13.68 For nonvested options at December 31, 2019 , approximately $5 million in compensation expense will be recognized over the next two years . Other Share-Based Compensation Awards In addition to stock option awards, Eastman has awarded long-term performance share awards, restricted stock awards, and SARs. The long-term performance share awards are based upon actual return on capital compared to a target return on capital and total stockholder return compared to a peer group ranking by total stockholder return over a three year performance period. The awards are valued using a Monte Carlo Simulation based model and vest pro-rata over the three year performance period. The number of long-term performance award target shares granted for the 2019-2021, 2018-2020, and 2017-2019 periods were 412 thousand , 310 thousand , and 357 thousand , respectively. The target shares granted are assumed to be 100 percent. At the end of the three-year performance period, the actual number of shares awarded can range from zero percent to 250 percent of the target shares granted based on the award notice. The number of restricted stock awards granted during 2019 , 2018 , and 2017 were 189 thousand , 160 thousand , and 172 thousand , respectively. The fair value of a restricted stock award is equal to the closing stock price of the Company's stock on the date of grant and normally vests over a period of three years. The recognized compensation expense before tax for these other share-based awards in the years ended December 31, 2019 , 2018 , and 2017 was approximately $50 million , $55 million , and $44 million , respectively. The unrecognized compensation expense before tax for these same type awards at December 31, 2019 was approximately $55 million and will be recognized primarily over a period of two years . |
SUPPLEMENTAL CASH FLOW INFORMAT
SUPPLEMENTAL CASH FLOW INFORMATION | 12 Months Ended |
Dec. 31, 2019 | |
Supplemental Cash Flow Information [Abstract] | |
Cash Flow, Supplemental Disclosures [Text Block] | SUPPLEMENTAL CASH FLOW INFORMATION Included in the line item "Other items, net" of the "Operating activities" section of the Consolidated Statements of Cash Flows are specific changes to certain balance sheet accounts as follows: For years ended December 31, (Dollars in millions) 2019 2018 2017 Current assets $ (5 ) $ (47 ) $ 13 Other assets 15 43 29 Current liabilities (82 ) (38 ) 59 Long-term liabilities and equity (17 ) 87 43 Total $ (89 ) $ 45 $ 144 The above changes included transactions such as 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 accruals. Cash flows from derivative financial instruments accounted for as hedges are classified in the same category as the item being hedged. Cash paid for interest and income taxes is as follows: For years ended December 31, (Dollars in millions) 2019 2018 2017 Interest, net of amounts capitalized $ 235 $ 239 $ 263 Income taxes 217 202 97 Non-cash investing and financing activities: Outstanding trade payables related to capital expenditures 22 18 27 (Gain) loss from equity investments (10 ) (17 ) (14 ) |
SEGMENT INFORMATION
SEGMENT INFORMATION | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | SEGMENT AND REGIONAL SALES INFORMATION The Company's products and operations are managed and reported in four operating segments: Additives & Functional Products ("AFP"), Advanced Materials ("AM"), Chemical Intermediates ("CI"), and Fibers. Additives & Functional Products Segment In the AFP segment, the Company manufactures chemicals for products in the transportation, consumables, building and construction, animal nutrition, crop protection, energy, personal and home care, and other markets. The products the Company manufactures in the coatings and inks additives product line can be broadly classified as polymers and additives and solvents and include specialty coalescents, specialty solvents, paint additives, and specialty polymers. The adhesives resins product line consists of hydrocarbon and rosin resins. The tire additives product line includes insoluble sulfur rubber additives, antidegradant rubber additives, and performance resins. The care chemicals business consists of amine derivative-based building blocks for the production of flocculants and intermediates for surfactants. In the specialty fluids product line, the Company produces heat transfer and aviation fluids products. The animal nutrition business consists of organic acid-based solutions product lines. The crop protection business consists of metam-based soil fumigants, thiram and ziram-based fungicides, and plant growth regulator products. Percentage of Total Segment Sales Product Lines 2019 2018 2017 Coatings and Inks Additives 24% 23% 23% Adhesives Resins 15% 16% 18% Tire Additives 16% 17% 17% Care Chemicals 18% 17% 17% Specialty Fluids 14% 13% 13% Animal Nutrition and Crop Protection 13% 14% 12% Total 100% 100% 100% Percentage of Total Segment Sales Sales by Customer Location 2019 2018 2017 United States and Canada 37% 36% 35% Asia Pacific 24% 24% 23% Europe, Middle East, and Africa 33% 34% 36% Latin America 6% 6% 6% Total 100% 100% 100% Advanced Materials Segment In the AM segment, the Company produces and markets polymers, films, and plastics with differentiated performance properties for value-added end-uses in transportation, consumables, building and construction, durable goods, and health and wellness markets. The specialty plastics product line consists of two primary products: copolyesters and cellulose esters. The advanced interlayers product line includes polyvinyl butyral sheet and specialty polyvinyl butyral intermediates. The performance films product line primarily consists of window film and protective film products for aftermarket applied films. Percentage of Total Segment Sales Product Lines 2019 2018 2017 Specialty Plastics 49% 49% 51% Advanced Interlayers 32% 33% 33% Performance Films 19% 18% 16% Total 100% 100% 100% Percentage of Total Segment Sales Sales by Customer Location 2019 2018 2017 United States and Canada 34% 35% 36% Asia Pacific 32% 33% 33% Europe, Middle East, and Africa 28% 27% 26% Latin America 6% 5% 5% Total 100% 100% 100% Chemical Intermediates Segment The CI segment leverages large scale and vertical integration from the cellulose and acetyl, olefins, and alkylamines streams to support the Company's specialty operating segments with advantaged cost positions. The CI segment sells excess intermediates beyond the Company's internal specialty needs into markets such as industrial chemicals and processing, building and construction, health and wellness, and agrochemicals. In the intermediates product line, the Company produces olefin derivatives, acetyl derivatives, ethylene, and commodity solvents. The plasticizers product line consists of a unique set of primary non-phthalate and phthalate plasticizers and a range of niche non-phthalate plasticizers. The functional amines product lines include methylamines and salts, and higher amines and solvents. Percentage of Total Segment Sales Product Lines 2019 2018 2017 Intermediates 59% 60% 64% Plasticizers 21% 20% 19% Functional Amines 20% 20% 17% Total 100% 100% 100% Percentage of Total Segment Sales Sales by Customer Location 2019 2018 2017 United States and Canada 64% 64% 68% Asia Pacific 14% 15% 14% Europe, Middle East, and Africa 15% 15% 12% Latin America 7% 6% 6% Total 100% 100% 100% Fibers Segment In the Fibers segment, Eastman manufactures and sells cellulose acetate tow for use in filtration media, primarily cigarette filters. The acetyl chemicals product line consists of triacetin, cellulose acetate flake, and acetyl raw materials for other acetate fiber producers. The acetate yarn product line consists of natural (undyed) acetate and polyester yarn and solution-dyed acetate yarn for use in apparel, home furnishings, and industrial fabrics. The nonwovens product line consists primarily of the nonwovens innovation products previously reported in "Other". Percentage of Total Segment Sales Product Lines 2019 2018 2017 Acetate Tow 68% 69% 77% Acetyl Chemical Products 15% 15% 15% Acetate Yarn 12% 10% 8% Nonwovens 5% 6% —% Total 100% 100% 100% Percentage of Total Segment Sales Sales by Customer Location 2019 2018 2017 United States and Canada 25% 26% 22% Asia Pacific 32% 33% 37% Europe, Middle East, and Africa 39% 37% 37% Latin America 4% 4% 4% Total 100% 100% 100% Other Sales revenue in the table below for "Other" in 2017 is primarily sales from the nonwovens innovation products. Beginning first quarter 2018, sales revenue and innovation costs from the nonwovens and textiles innovation products previously reported in "Other" are reported in the Fibers segment due to accelerating commercial progress of growth initiatives. For years ended December 31, (Dollars in millions) 2019 2018 2017 Sales by Segment Additives & Functional Products $ 3,273 $ 3,647 $ 3,343 Advanced Materials 2,688 2,755 2,572 Chemical Intermediates 2,443 2,831 2,728 Fibers 869 918 852 Total Sales by Operating Segment 9,273 10,151 9,495 Other — — 54 Total Sales $ 9,273 $ 10,151 $ 9,549 For years ended December 31, (Dollars in millions) 2019 2018 2017 Earnings Before Interest and Taxes by Segment Additives & Functional Products $ 496 $ 639 $ 653 Advanced Materials 517 509 483 Chemical Intermediates 170 308 255 Fibers 194 257 181 Total EBIT by Operating Segment 1,377 1,713 1,572 Other Growth initiatives and businesses not allocated to operating segments (102 ) (114 ) (114 ) Pension and other postretirement benefit plans income (expense), net not allocated to operating segments (97 ) (17 ) 93 Asset impairments and restructuring charges, net (49 ) (6 ) (5 ) Other income (charges), net not allocated to operating segments (9 ) (24 ) (16 ) Total EBIT $ 1,120 $ 1,552 $ 1,530 December 31, (Dollars in millions) 2019 2018 Assets by Segment (1) Additives & Functional Products $ 6,387 $ 6,545 Advanced Materials 4,415 4,456 Chemical Intermediates 2,775 2,934 Fibers 1,014 978 Total Assets by Operating Segment 14,591 14,913 Corporate Assets 1,417 1,082 Total Assets $ 16,008 $ 15,995 (1) The chief operating decision maker holds operating segment management accountable for accounts receivable, inventory, fixed assets, goodwill, and intangible assets. For years ended December 31, (Dollars in millions) 2019 2018 2017 Depreciation and Amortization Expense by Segment Additives & Functional Products $ 218 $ 219 $ 213 Advanced Materials 172 169 164 Chemical Intermediates 150 151 148 Fibers 64 64 58 Total Depreciation and Amortization Expense by Operating Segment 604 603 583 Other 7 1 4 Total Depreciation and Amortization Expense $ 611 $ 604 $ 587 For years ended December 31, (Dollars in millions) 2019 2018 2017 Capital Expenditures by Segment Additives & Functional Products $ 152 $ 150 $ 229 Advanced Materials 130 187 248 Chemical Intermediates 98 137 116 Fibers 42 50 52 Total Capital Expenditures by Operating Segment 422 524 645 Other 3 4 4 Total Capital Expenditures $ 425 $ 528 $ 649 Sales are attributed to geographic areas based on customer location and long-lived assets are attributed to geographic areas based on asset location. (Dollars in millions) For years ended December 31, Geographic Information 2019 2018 2017 Sales United States $ 3,720 $ 4,118 $ 3,999 All foreign countries 5,553 6,033 5,550 Total $ 9,273 $ 10,151 $ 9,549 December 31, 2019 2018 2017 Net properties United States $ 4,178 $ 4,228 $ 4,203 All foreign countries 1,393 1,372 1,404 Total $ 5,571 $ 5,600 $ 5,607 |
QUARTERLY SALES AND EARNINGS DA
QUARTERLY SALES AND EARNINGS DATA-UNAUDITED | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Data [Abstract] | |
QUARTERLY SALES AND EARNINGS DATA-UNAUDITED | QUARTERLY SALES AND EARNINGS DATA – UNAUDITED (Dollars in millions, except per share amounts) First Quarter Second Quarter Third Quarter Fourth Quarter 2019 Sales $ 2,380 $ 2,363 $ 2,325 $ 2,205 Gross profit 574 589 574 497 Asset impairments and restructuring charges, net 32 18 2 74 Net earnings attributable to Eastman 209 258 266 26 Net earnings per share attributable to Eastman (1) Basic $ 1.50 $ 1.87 $ 1.95 $ 0.19 Diluted $ 1.49 $ 1.85 $ 1.93 $ 0.19 (1) Each quarter is calculated as a discrete period; the sum of the four quarters may not equal the calculated full year amount. (Dollars in millions, except per share amounts) First Quarter Second Quarter Third Quarter Fourth Quarter 2018 Sales $ 2,607 $ 2,621 $ 2,547 $ 2,376 Gross profit 581 704 728 466 Asset impairments and restructuring charges, net 2 4 — 39 Net earnings attributable to Eastman 290 344 412 34 Net earnings per share attributable to Eastman (1) Basic $ 2.03 $ 2.42 $ 2.93 $ 0.25 Diluted $ 2.00 $ 2.39 $ 2.89 $ 0.24 (1) Each quarter is calculated as a discrete period; the sum of the four quarters may not equal the calculated full year amount. |
RESERVE ROLLFORWARDS
RESERVE ROLLFORWARDS | 12 Months Ended |
Dec. 31, 2019 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
RESERVE ROLLFORWARDS | RESERVE ROLLFORWARDS Valuation and Qualifying Accounts (Dollars in millions) Additions Balance at January 1, 2019 Charges (Credits) to Cost and Expense Other Accounts Deductions Balance at December 31, 2019 Reserve for: Doubtful accounts and returns $ 11 $ — $ — $ — $ 11 LIFO inventory 337 (89 ) — — 248 Non-environmental asset retirement obligations 46 2 — — 48 Environmental contingencies 296 7 — 16 287 Deferred tax valuation allowance 487 (20 ) (14 ) — 453 $ 1,177 $ (100 ) $ (14 ) $ 16 $ 1,047 (Dollars in millions) Additions Balance at January 1, Charges (Credits) to Cost and Expense Other Accounts Balance at December 31, 2018 Reserve for: Doubtful accounts and returns $ 12 $ — $ — $ 1 $ 11 LIFO inventory 288 44 5 — 337 Non-environmental asset retirement obligations 49 (2 ) — 1 46 Environmental contingencies 304 9 — 17 296 Deferred tax valuation allowance (1) 410 81 (4 ) — 487 $ 1,063 $ 132 $ 1 $ 19 $ 1,177 (Dollars in millions) Additions Balance at January 1, Charges (Credits) to Cost and Expense Other Accounts Balance at December 31, 2017 Reserve for: Doubtful accounts and returns $ 10 $ 3 $ — $ 1 $ 12 LIFO inventory 264 24 — — 288 Non-environmental asset retirement obligations 46 2 1 — 49 Environmental contingencies 321 8 4 29 304 Deferred tax valuation allowance 278 126 6 — 410 $ 919 $ 163 $ 11 $ 30 $ 1,063 (1) Revised from Note 21, "Reserve Rollforwards" , to the Company's 2018 Annual Report on Form 10-K, which reported deferred tax valuation allowance as $466 million . |
SIGNIFICANT ACCOUNTING POLICI_2
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Financial Statement Presentation | Financial Statement Presentation The consolidated financial statements of Eastman Chemical Company ("Eastman" or the "Company") and subsidiaries are prepared in conformity with accounting principles generally accepted ("GAAP") in the United States and of necessity include some amounts that are based upon management estimates and judgments. Future actual results could differ from such current estimates. The 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 in minority-owned companies where it exercises significant influence on the equity basis. Intercompany transactions and balances are eliminated in consolidation. Certain prior period data has been reclassified in the consolidated financial statements and accompanying footnotes to conform to current period presentation. |
New Accounting Pronouncements | 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 $219 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 Consolidated Statement of Financial Position. For further information, see Note 11, "Leases and Other Commitments" . 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 December 31, 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. 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. 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. 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. 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. ASU 2019-12 Income Taxes - Simplifying the Accounting for Income Taxes : In December 2019, the FASB issued this update as part of its initiative to reduce complexity in accounting standards which removes certain exceptions and provides simplification to specific tax items. This standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. Early adoption is permitted, including adoption in any interim period for which financial statements have not yet been issued. Adoption methods vary based on the specific items impacted. Management is currently evaluating the impact on the Company's financial statements and related disclosures. |
Revenue Recognition and Customer Incentives | Revenue Recognition On January 1, 2018, Eastman adopted ASU 2014-09 Revenue Recognition (ASC 606) under the modified retrospective method, such that revenue for all periods prior to January 1, 2018 continue to be reported under the previous standard, which resulted in an increase to retained earnings of $53 million after tax for products shipped but not delivered as of December 31, 2017. Eastman recognizes revenue when performance obligations of the sale are satisfied. Eastman sells to customers through master sales agreements or standalone purchase orders. The majority of the Company's terms of sale have a single performance obligation to transfer products. Accordingly, the Company recognizes revenue when control has been transferred to the customer, generally at the time of shipment of products. Eastman accounts for shipping and handling as activities to fulfill the promise to transfer the good and does not allocate revenue to those activities. All related shipping and handling costs are recognized at the time of shipment. Amounts collected for sales or other similar taxes are presented net of the related tax expense rather than presenting them as additional revenue. The incremental cost of obtaining a sales contract is recognized as a selling expense when incurred given the potential amortization period for such an asset is one year or less. The possible existence of a significant financing component within a sales contract is ignored when the time between cash collection and performance is less than one year. Finally, the Company does not disclose any unfulfilled obligations as customer purchase order commitments have an original expected duration of one year or less and no consideration from customers is excluded from the transaction price. 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 December 31, 2019 or December 31, 2018 . Contract assets were $65 million and $62 million as of December 31, 2019 and December 31, 2018 , respectively, and are included as a component of "Miscellaneous receivables" in the Consolidated Statements of Financial Position. For additional information, see Note 19, "Segment and Regional Sales Information" . |
Pension and Other Postretirement Benefits | Pension and Other Postretirement Benefits Eastman maintains defined benefit pension plans that provide eligible employees with retirement benefits. Under its other postretirement benefit plans in the U.S., Eastman provides life insurance for eligible retirees hired prior to January 1, 2007. Eastman 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. The estimated amounts of the costs and obligations related to these benefits reflect the Company's assumptions related to discount rates, expected return on plan assets, rate of compensation increase or decrease for employees, and health care cost trends. The estimated cost of providing plan benefits also depends on demographic assumptions including retirements, mortality, turnover, and plan participation. Eastman's pension and other postretirement benefit plans costs consist of two elements: 1) ongoing costs recognized quarterly, which are comprised of service and interest costs, expected returns on plan assets, and amortization of prior service credits; and 2) mark-to-market ("MTM") gains and losses recognized annually, in the fourth quarter of each year, primarily resulting from changes in actuarial assumptions for discount rates and the differences between actual and expected returns on plan assets. Any interim remeasurements triggered by a curtailment, settlement, or significant plan changes are recognized in the quarter in which such remeasurement event occurs. For additional information, see Note 10, "Retirement Plans" . |
Environmental Costs | Environmental Costs Eastman recognizes environmental remediation costs when it is probable that the Company has incurred a liability at a contaminated site and the amount can be reasonably estimated. When a single amount cannot be reasonably estimated but the cost can be estimated within a range, the Company recognizes the minimum undiscounted amount. This undiscounted amount reflects liabilities expected to be paid within approximately 30 years and the Company's assumptions about remediation requirements at the contaminated site, the nature of the remedy, the outcome of discussions with regulatory agencies and other potentially responsible parties at multi-party sites, and the number and financial viability of other potentially responsible parties. Changes in the estimates on which the accruals are based, unanticipated government enforcement action, or changes in health, safety, environmental, and chemical control regulations and testing requirements could result in higher or lower costs. The Company also establishes reserves for closure and post-closure costs associated with the environmental and other assets it maintains. Environmental assets include but are not limited to waste management units, such as landfills, water treatment facilities, and surface impoundments. When these types of assets are constructed or installed, a loss contingency reserve is established for the anticipated future costs associated with the retirement or closure of the asset based on its expected life and the applicable regulatory closure requirements. The Company recognizes the 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. These future estimated costs are charged to earnings over the estimated useful life of the assets. If the Company changes its estimate of the environmental asset retirement obligation costs or its estimate of the useful lives of these assets, expenses charged to earnings will be impacted. The current portion of accruals for environmental liabilities is included in payables and other current liabilities and the long-term portion is included in other long-term liabilities. These accruals exclude claims for recoveries from insurance companies or other third parties. Environmental costs are capitalized if they extend the life of the related property, increase its capacity, or mitigate or prevent future contamination. The cost of operating and maintaining environmental control facilities is charged to expense as incurred. For additional information see Note 12, "Environmental Matters and Asset Retirement Obligations" . |
Share-based Compensation | Share-based Compensation Eastman recognizes compensation expense in the financial statements for stock options and other share-based compensation awards based upon the grant-date fair value over the substantive vesting period. For additional information, see Note 17, "Share-Based Compensation Plans and Awards" . |
Restructuring of Operations | Restructuring of Operations Eastman records restructuring charges for costs incurred in connection with consolidation of operations, exited business or product lines, or shutdowns of specific sites that are expected to be substantially completed within twelve months. These restructuring charges are recorded as incurred, and are associated with site closures, legal and environmental matters, demolition, contract terminations, obsolete inventory, or other costs and charges directly related to the restructuring. The Company records severance charges for employee separations when the separation is probable and reasonably estimable. In the event employees are required to perform future service, the Company records severance charges ratably over the remaining service period of those employees. For additional information, see Note 15, "Asset Impairments and Restructuring Charges, Net" . |
Income Taxes | Income Taxes The provision for (benefit from) income taxes has been determined using the asset and liability approach of accounting for income taxes. Under this approach, deferred taxes represent the future tax consequences expected to occur when the reported amounts of assets and liabilities are recovered or paid. The provision for (benefit from) income taxes represents income taxes paid or payable for the current year plus the change in deferred taxes during the year. Deferred taxes result from differences between the financial and tax bases of Eastman's assets and liabilities and are adjusted for changes in tax rates and tax laws when changes are enacted. Valuation allowances are recorded to reduce deferred tax assets when it is more likely than not that a tax benefit will not be realized. Provision has been made for income taxes on unremitted earnings of subsidiaries and affiliates, except for subsidiaries in which earnings are deemed to be indefinitely reinvested. The Company recognizes income tax positions that meet the more likely than not threshold and accrues interest related to unrecognized income tax positions which is recorded as a component of the income tax provision. In conjunction with its evaluation of the provisions of the Tax Reform Act, in 2018, the Company made an accounting policy election to account for taxes resulting from the global intangible low-tax income ("GILTI") as a component of the provision for income taxes. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents include cash, time deposits, and readily marketable securities with original maturities of three months or less. |
Fair Value Measurements | Fair Value Measurements Eastman records recurring and non-recurring financial assets and liabilities as well as all non-financial assets and liabilities subject to fair value measurement at the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. These fair value principles prioritize valuation inputs across three broad levels. Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2 inputs are quoted prices for similar assets and liabilities in active markets or inputs that are observable for the asset or liability, either directly or indirectly through market corroboration, for substantially the full term of the financial instrument. Level 3 inputs are unobservable inputs based on the Company's assumptions used to measure assets and liabilities at fair value. An asset or liability's classification within the various levels is determined based on the lowest level input that is significant to the fair value measurement. |
Accounts Receivable and Allowance for Doubtful Accounts | Accounts Receivable and Allowance for Doubtful Accounts Trade accounts receivable are recorded at the invoiced amount and do not bear interest. Eastman maintains allowances for doubtful accounts for estimated losses resulting from the inability of its customers to make required payments. The Company calculates the allowance based on an assessment of the risk in the accounts receivable portfolio. Write-offs are recorded at the time a customer receivable is deemed uncollectible. Allowance for doubtful accounts was $11 million at both December 31, 2019 and 2018 . The Company does not enter into receivables of a long-term nature, also known as financing receivables, in the normal course of business. |
Inventories | Inventories Inventories measured by the last-in, first-out ("LIFO") method are valued at the lower of cost or market and inventories measured by the first-in, first-out ("FIFO") method are valued at lower cost or net realizable value. Eastman determines the cost of most raw materials, work in process, and finished goods inventories in the United States and Switzerland by the LIFO method. The cost of all other inventories is determined by the average cost method, which approximates the FIFO method. The Company writes-down its inventories equal to the difference between the carrying value of inventory and the estimated market value or net realizable value based upon assumptions about future demand and market conditions. |
Properties | Properties |
Depreciation and Amortization | Depreciation and Amortization Depreciation expense is calculated based on historical cost and the estimated useful lives of the assets, generally using the straight-line method. Estimated useful lives for buildings and building equipment generally range from 20 to 50 years. Estimated useful lives generally ranging from 3 to 33 years are applied to machinery and equipment in the following categories: computer software (3 to 5 years); office furniture and fixtures and computer equipment (5 to 10 years); vehicles, railcars, and general machinery and equipment (5 to 20 years); and manufacturing-related improvements (20 to 33 years). Accelerated depreciation is reported when the estimated useful life is shortened and continues to be reported in cost of sales. Amortization expense for definite-lived intangible assets is generally determined using a straight-line method over the estimated useful life of the asset. Amortization expense is reported in cost of sales. For additional information, see Note 4, "Goodwill and Other Intangible Assets" . |
Impairment of Long Lived Assets | Impairment of Long-Lived Assets Definite-lived Assets Properties and equipment and definite-lived intangible assets to be held and used by Eastman are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. The review of properties and equipment and the review of definite-lived intangible assets is performed at the asset group level, which is the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities. If the carrying amount is not considered to be recoverable, an analysis of fair value is triggered. An impairment is recognized for the excess of the carrying amount of the asset over the fair value. Fair value is the price that would be received to sell an asset in an orderly transaction between market participants. |
Goodwill and Intangible Assets, Policy | Goodwill Eastman conducts testing of goodwill annually in the fourth quarter or more frequently when events and circumstances indicate an impairment may have occurred. The testing of goodwill is performed at the "reporting unit" level which the Company has determined to be its "components". Components are defined as an operating segment or one level below an operating segment, and in order to be a reporting unit, the component must 1) be a "business" as defined by applicable accounting standards (an integrated set of activities and assets that is capable of being conducted and managed for the purpose of providing a return in the form of dividends, lower costs, or other economic benefits directly to the investors or other owners, members, or participants); 2) have discrete financial information available; and 3) be reviewed regularly by Company operating segment management. The Company aggregates certain components into reporting units based on economic similarities. A reporting unit's goodwill is considered to be impaired when the reporting unit's estimated fair value is less than its carrying value. The Company uses an income approach and applies a discounted cash flow model in testing the carrying value of goodwill for each reporting unit. Key assumptions and estimates used in the Company's 2019 goodwill impairment testing included projections of revenues and earnings before interest and taxes ("EBIT") determined using the Company's annual multi-year strategic plan, the estimated weighted average cost of capital ("WACC") and a projected long-term growth rate. The Company believes these assumptions are consistent with those a hypothetical market participant would use given circumstances that were present at the time the estimates were made. However, actual results and amounts may be significantly different from the Company's estimates. In addition, the use of different estimates or assumptions could result in materially different estimated fair values of reporting units. The WACC is calculated incorporating weighted average returns on debt and equity from market participants. Therefore, changes in the market, which are beyond the control of the Company, may have an impact on future calculations of estimated fair value. Indefinite-lived Intangible Assets Eastman conducts testing of indefinite-lived intangible assets annually in the fourth quarter or more frequently when events and circumstances indicate an impairment may have occurred. The carrying value of an indefinite-lived intangible asset is considered to be impaired when the fair value, as established by appraisal or based on discounted future cash flows of certain related products, is less than the respective carrying value. Indefinite-lived intangible assets, consisting primarily of various tradenames, are tested for potential impairment by comparing the estimated fair value to the carrying amount. The Company uses an income approach, specifically the relief from royalty method, to test indefinite-lived intangible assets. The estimated fair value of tradenames is determined based on an assumed royalty rate savings, discounted by the calculated market participant WACC plus a risk premium. For additional information, see Note 4, "Goodwill and Other Intangible Assets" . |
Lessee, Leases [Policy Text Block] | Leases As noted above, On January 1, 2019, Eastman adopted ASU 2016-02 Leases. For accounting policy and elections, see Note 11, "Leases and Other Commitments" . |
Investments | Investments The consolidated financial statements include the accounts of Eastman and all its subsidiaries and entities or joint ventures in which a controlling interest is maintained. The Company includes its share of earnings and losses of such investments in "Net earnings attributable to Eastman" and "Comprehensive income attributable to Eastman" located in the Consolidated Statements of Earnings, Comprehensive Income and Retained Earnings and in "Total equity" located in the Consolidated Statements of Financial Position. Investments in affiliates over which the Company has significant influence but not a controlling interest are carried on the equity basis. Under the equity method of accounting, these investments are included in "Other noncurrent assets" in the Consolidated Statements of Financial Position. The Company includes its share of earnings and losses of such investments in "Other (income) charges, net" located in the Consolidated Statements of Earnings, Comprehensive Income and Retained Earnings. |
Derivative and Non-Derivative Financial Instruments | Derivative and Non-Derivative Financial Instruments Eastman uses derivative and non-derivative instruments to manage its exposure to market risks, such as changes in foreign currency exchange rates, commodity prices, and interest rates. The Company does not enter into derivative transactions for speculative purposes. Counterparties to the 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's derivative instruments are recognized as either assets or liabilities on the Consolidated Statements of Financial Position and measured at fair value. For qualifying derivatives designated as cash flow hedges, the effective portion of the changes in the fair value are reported as a component of AOCI in the Consolidated Statements of Financial Position and recognized in earnings when the hedged items affect earnings. For qualifying derivatives designated as fair value hedges, the effective portion of the changes in the fair value are reported as "Long-term borrowings" on the Consolidated Statements of Financial Position and recognized in earnings when the hedged items affect earnings. For qualifying derivative or non-derivative instruments designated as net investment hedges, the net change in the hedge instrument and item being hedged is reported as a component of "Cumulative translation adjustment" ("CTA") within AOCI located in the Consolidated Statements of Earnings, Comprehensive Income and Retained Earnings. Any hedge components excluded from the assessment of effectiveness are recognized in earnings, the initial value of the excluded component, using a systematic and rational method over the life of the hedging instrument. Changes in the fair value of nonqualifying derivatives or derivatives that are not designated as hedges, are recognized in current earnings. Hedge accounting will be discontinued prospectively for all hedges that no longer qualify for hedge accounting treatment. Cash flows from derivative instruments designated as hedges are reported in the same category as the cash flows from the items being hedged. For additional information, see Note 9, "Derivative and Non-Derivative Financial Instruments" . |
Litigation and Contingent Liabilities | Litigation and Contingent Liabilities Eastman and its operations from time to time are, and in the future may be, 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. The Company accrues a contingent loss liability for such matters when it is probable that a liability has been incurred and the amount can be reasonably estimated. When a single amount cannot be reasonably estimated but the cost can be estimated within a range, the Company accrues the minimum amount. The Company expenses legal costs, including those expected to be incurred in connection with a loss contingency, as incurred. |
Off-Balance-Sheet Credit Exposure, Policy [Policy Text Block] | Working Capital Management and Off Balance Sheet Arrangements The Company works with suppliers to optimize payment terms and conditions on accounts payable to enhance timing of working capital and cash flows. As part of these efforts, in 2019, the Company introduced a voluntary supply chain finance program to provide suppliers with the opportunity to sell receivables due from Eastman to a participating financial institution. Eastman's responsibility is limited to making payments on the terms originally negotiated with suppliers, regardless of whether the suppliers sells their receivables to the financial institution. The range of payment terms Eastman negotiates with suppliers are consistent, regardless of whether a supplier participates in the program. All of Eastman's accounts payable and associated payments are reported consistently in the Company's Consolidated Statements of Financial Position and Consolidated Statements of Cash Flows regardless of whether they are associated with a vendor who participates in the program. In 2019 , the Company expanded off balance sheet, 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 2019 and 2018 were $857 million and $219 million |
INVENTORIES (Tables)
INVENTORIES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | December 31, (Dollars in millions) 2019 2018 Finished goods $ 1,114 $ 1,143 Work in process 220 262 Raw materials and supplies 576 515 Total inventories at FIFO or average cost 1,910 1,920 Less: LIFO reserve 248 337 Total inventories $ 1,662 $ 1,583 |
PROPERTIES AND ACCUMULATED DE_2
PROPERTIES AND ACCUMULATED DEPRECIATION (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Properties | December 31, (Dollars in millions) 2019 2018 Properties Land $ 158 $ 158 Buildings 1,430 1,385 Machinery and equipment 10,960 10,801 Construction in progress 356 387 Properties and equipment at cost $ 12,904 $ 12,731 Less: Accumulated depreciation 7,333 7,131 Net properties $ 5,571 $ 5,600 |
GOODWILL AND OTHER INTANGIBLE_2
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Changes in Carrying Amount of Goodwill | Changes in the carrying amount of goodwill follow: (Dollars in millions) Additives & Functional Products Advanced Materials Chemical Intermediates Other Total Balance at December 31, 2017 $ 2,459 $ 1,289 $ 769 $ 10 $ 4,527 Impairments recognized (38 ) — — — (38 ) Currency translation adjustments (11 ) (6 ) (5 ) — (22 ) Balance at December 31, 2018 2,410 1,283 764 10 4,467 Acquisitions 15 — — — 15 Impairments recognized (45 ) — — — (45 ) Currency translation adjustments (3 ) (1 ) (2 ) — (6 ) Balance at December 31, 2019 $ 2,377 $ 1,282 $ 762 $ 10 $ 4,431 |
Schedule of Finite Lived and Indefinite Lived Intangible Assets by Major Class | December 31, 2019 December 31, 2018 (Dollars in millions) Estimated Useful Life in Years Gross Carrying Value Accumulated Amortization Net Carrying Value Gross Carrying Value Accumulated Amortization Net Carrying Value Amortizable intangible assets: Customer relationships 8 - 25 $ 1,566 $ 494 $ 1,072 $ 1,567 $ 419 $ 1,148 Technology 7 - 20 677 343 334 680 294 386 Contracts 5 — — — 180 147 33 Other 5 - 37 88 22 66 102 23 79 Indefinite-lived intangible assets: Tradenames 529 — 529 529 — 529 Other 10 — 10 10 — 10 Total identified intangible assets $ 2,870 $ 859 $ 2,011 $ 3,068 $ 883 $ 2,185 |
PAYABLES AND OTHER CURRENT LI_2
PAYABLES AND OTHER CURRENT LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Payables and Accruals [Abstract] | |
Schedule of Payables and Other Current Liabilities | December 31, (Dollars in millions) 2019 2018 Trade creditors $ 890 $ 914 Accrued payrolls, vacation, and variable-incentive compensation 176 197 Accrued taxes 89 94 Post-employment obligations 93 80 Dividends payable to shareholders 90 87 Other 280 236 Total payables and other current liabilities $ 1,618 $ 1,608 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Earnings (Loss) from Continuing Operations and Provisions for Income Taxes | Components of earnings before income taxes and the provision for (benefit from) U.S. and other income taxes from operations follow: For years ended December 31, (Dollars in millions) 2019 2018 2017 Earnings before income taxes United States $ 454 $ 718 $ 654 Outside the United States 448 592 635 Total $ 902 $ 1,310 $ 1,289 Provision for (benefit from) income taxes United States Federal Current (1) $ 55 $ 161 $ 220 Deferred (2) 19 (11 ) (383 ) Outside the United States Current 62 86 62 Deferred (32 ) (22 ) 2 State and other Current — 30 13 Deferred 36 (18 ) (13 ) Total $ 140 $ 226 $ (99 ) (1) A one-time transition tax of $71 million on deferred foreign income tax is included for 2017. (2) Includes a one-time benefit of $517 million primarily due to the remeasurement of certain net deferred tax liabilities using the lower U.S. corporate income tax rate and a one-time $72 million valuation allowance on deferred tax assets for foreign tax credit carryforwards for 2017. |
Schedule of Deferred Tax Charge (Benefit) Recorded as a Component of Accumulated Other Comprehensive Loss | The following represents the deferred tax (benefit) charge recorded as a component of AOCI in the Consolidated Statements of Financial Position: For years ended December 31, (Dollars in millions) 2019 2018 2017 Defined benefit pension and other postretirement benefit plans $ (10 ) $ (10 ) $ (16 ) Derivatives and hedging (2 ) 3 8 Total $ (12 ) $ (7 ) $ (8 ) |
Schedule of Income Tax Expense (Benefit) Included in Consolidated Financial Statement | Total income tax expense (benefit) included in the consolidated financial statements was composed of the following: For years ended December 31, (Dollars in millions) 2019 2018 2017 Earnings before income taxes $ 140 $ 226 $ (99 ) Other comprehensive income (12 ) (7 ) (8 ) Total $ 128 $ 219 $ (107 ) |
Schedule of Reconciliation of Income Taxes on Earnings from Continuing Operations at Federal Statutory Income Tax Rate | Differences between the provision for (benefit from) income taxes and income taxes computed using the U.S. Federal statutory income tax rate follow: For years ended December 31, (Dollars in millions) 2019 2018 2017 Amount computed using the statutory rate $ 189 $ 274 $ 450 State income taxes, net 36 6 (4 ) Foreign rate variance (68 ) (52 ) (150 ) Domestic manufacturing deduction — — (18 ) Change in reserves for tax contingencies 36 21 20 General business credits (52 ) (60 ) (65 ) U.S. tax on foreign earnings (17 ) 10 29 Foreign tax credits — (12 ) (26 ) Tax law changes and tax loss from outside-U.S. entity reorganizations (1) 7 20 (339 ) Other 9 19 4 Provision for (benefit from) income taxes $ 140 $ 226 $ (99 ) Effective income tax rate 16 % 17 % (8 )% (1) Includes a one-time net benefit primarily due to the remeasurement of certain net deferred tax liabilities using the lower U.S. corporate income tax rate partially offset by the transition tax on deferred foreign income and changes in the valuation of deferred tax assets associated with tax law changes and the tax impact from intercompany reorganization activities in 2017 and a net incremental adjustment to those amounts under the Tax Reform Act in 2018 and 2019. |
Schedule of Significant Components of Deferred Tax Assets and Liabilities | The significant components of deferred tax assets and liabilities follow: December 31, (Dollars in millions) 2019 2018 (1) Deferred tax assets Post-employment obligations $ 247 $ 230 Net operating loss carryforwards 606 634 Tax credit carryforwards 239 239 Environmental reserves 68 70 Unrealized derivative loss 18 18 Other 173 94 Total deferred tax assets 1,351 1,285 Less: Valuation allowance 453 487 Deferred tax assets less valuation allowance $ 898 $ 798 Deferred tax liabilities Property, plant, and equipment $ (895 ) $ (856 ) Intangible assets (439 ) (473 ) Investments (235 ) (179 ) Other (178 ) (131 ) Total deferred tax liabilities $ (1,747 ) $ (1,639 ) Net deferred tax liabilities $ (849 ) $ (841 ) As recorded in the Consolidated Statements of Financial Position: Other noncurrent assets $ 66 $ 43 Deferred income tax liabilities (915 ) (884 ) Net deferred tax liabilities $ (849 ) $ (841 ) (1) Revised from Note 7, "Income Taxes" , to the Company's 2018 Annual Report on Form 10-K, which reported net operating loss carryforwards as $708 million , valuation allowance as $466 million , and investments as $(274) million . |
Schedule of Tax Receivables and Payables | Amounts due to and from tax authorities as recorded in the Consolidated Statements of Financial Position: December 31, (Dollars in millions) 2019 2018 Miscellaneous receivables $ 211 $ 135 Payables and other current liabilities $ 36 $ 43 Other long-term liabilities 139 162 Total income taxes payable $ 175 $ 205 |
Schedule of Reconciliation of Beginning and Ending Amounts of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amounts of unrecognized tax benefits is as follows: (Dollars in millions) 2019 2018 2017 Balance at January 1 $ 182 $ 142 $ 114 Adjustments based on tax positions related to current year 22 44 29 Lapse of statute of limitations (2 ) (4 ) (1 ) Balance at December 31 (1) $ 202 $ 182 $ 142 (1) All of the unrecognized tax benefits would, if recognized, impact the Company's effective tax rate. A reconciliation of the beginning and ending amounts of accrued interest related to unrecognized tax positions is as follows: (Dollars in millions) 2019 2018 2017 Balance at January 1 $ 10 $ 6 $ 4 Expense for interest, net of tax 5 4 3 Income for interest, net of tax (2 ) — (1 ) Balance at December 31 $ 13 $ 10 $ 6 Accrued penalties related to unrecognized tax positions were immaterial as of December 31, 2019, 2018, and 2017. |
BORROWINGS (Tables)
BORROWINGS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Borrowings | December 31, (Dollars in millions) 2019 2018 Borrowings consisted of: 2.7% notes due January 2020 $ — $ 250 4.5% notes due January 2021 185 185 3.5% notes due December 2021 298 297 3.6% notes due August 2022 741 739 1.50% notes due May 2023 (1) 840 855 7 1/4% debentures due January 2024 198 197 7 5/8% debentures due June 2024 43 43 3.8% notes due March 2025 695 691 1.875% notes due November 2026 (1) 556 566 7.60% debentures due February 2027 195 195 4.5% notes due December 2028 493 492 4.8% notes due September 2042 493 493 4.65% notes due October 2044 874 872 Commercial paper and short-term borrowings 171 243 Credit facilities borrowings — 50 Total borrowings 5,782 6,168 Borrowings due within one year 171 243 Long-term borrowings $ 5,611 $ 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. |
Schedule of Fair Value of Borrowings | Fair Value of Borrowings Eastman has classified its total borrowings at December 31, 2019 and 2018 under the fair value hierarchy as defined in the accounting policies in Note 1, "Significant Accounting Policies" . 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 December 31, 2019 and 2018 , the fair value of total borrowings was $6.275 billion and $6.216 billion , respectively. The Company had no borrowings classified as Level 1 or Level 3 as of December 31, 2019 and 2018 . |
DERIVATIVE AND NON-DERIVATIVE_2
DERIVATIVE AND NON-DERIVATIVE FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Cumulative basis adjustments for fair value hedges on balance sheet [Table Text Block] | As of December 31, 2019 and 2018 , the following amounts were included within the 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 Consolidated Statements of Financial Position in which the hedged item is included December 31, 2019 December 31, 2018 December 31, 2019 December 31, 2018 Long-term borrowings (1) $ 763 $ 759 $ (7 ) $ (12 ) (1) At both December 31, 2019 and 2018 , the cumulative amount of fair value hedging loss adjustment remaining for hedged liabilities for which hedge accounting has been discontinued was $7 million . |
Schedule of Notional Amounts of Outstanding Derivative Positions [Table Text Block] | The following table presents the notional amounts outstanding at December 31, 2019 and 2018 associated with Eastman's hedging programs. Notional Outstanding December 31, 2019 December 31, 2018 Derivatives designated as cash flow hedges: Foreign Exchange Forward and Option Contracts (in millions) EUR/USD (in EUR) €630 €263 Commodity Forward and Collar Contracts Feedstock (in million barrels) 1 5 Energy (in million british thermal units) 27 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) €1,243 €1,241 |
Schedule of 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 Consolidated Statements of Financial Position as of December 31, 2019 and 2018 . The Financial Position and Fair Value Measurements of Hedging Instruments on a Gross Basis (Dollars in millions) Derivative Type Statements of Financial Position Location December 31, 2019 Level 2 December 31, 2018 Level 2 Derivatives designated as cash flow hedges: Commodity contracts Other current assets $ — $ 4 Foreign exchange contracts Other current assets 13 15 Foreign exchange contracts Other noncurrent assets 2 4 Derivatives designated as fair value hedges: Fixed-for-floating interest rate swap Other current assets 1 1 Derivatives designated as net investment hedges: Cross-currency interest rate swaps Other noncurrent assets 68 26 Total Derivative Assets $ 84 $ 50 Derivatives designated as cash flow hedges: Commodity contracts Payables and other current liabilities $ 26 $ 24 Commodity contracts Other long-term liabilities 2 5 Foreign exchange contracts Payables and other current liabilities 1 — Foreign exchange contracts Other long-term liabilities 2 — Derivatives designated as fair value hedges: Fixed-for-floating interest rate swap Long-term borrowings 1 4 Total Derivative Liabilities $ 32 $ 33 Total Net Derivative Assets (Liabilities) $ 52 $ 17 |
Schedule of Derivative Instrument Gain Loss in Statement of Financial Performance | The following table presents the effect of fair value and cash flow hedge accounting on the Consolidated Statements of Earnings, Comprehensive Income and Retained Earnings for 2019 and 2018 . Location and Amount of Gain or (Loss) Recognized in Earnings on Fair Value and Cash Flow Hedging Relationships Twelve 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 Consolidated Statements of Earnings, Comprehensive Income and Retained Earnings in which the effects of fair value or cash flow hedges are recognized $ 9,273 $ 7,039 $ 218 $ 10,151 $ 7,672 $ 235 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 (6 ) (5 ) Commodity Contracts: Amount reclassified from AOCI into earnings (40 ) (3 ) Foreign Exchange Contracts: Amount reclassified from AOCI into earnings 26 29 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 the twelve months ended December 31, 2019 and 2018 : (Dollars in millions) Change in amount of after tax gain/(loss) recognized in OCI on Derivatives Pre-tax amount of gain/(loss) reclassified from AOCI into income December 31, December 31, Hedging Relationships 2019 2018 2019 2018 Derivatives in cash flow hedging relationships: Commodity contracts $ (2 ) $ — $ (40 ) $ (3 ) Foreign exchange contracts (5 ) 3 26 29 Forward starting interest rate and treasury lock swap contracts 4 4 (6 ) (5 ) Non-derivatives in net investment hedging relationships (pre-tax): Net investment hedges 26 67 — — Derivatives in net investment hedging relationships (pre-tax): Cross-currency interest rate swaps 19 26 — — Cross-currency interest rate swaps excluded component 23 — — — |
RETIREMENT PLANS (Tables)
RETIREMENT PLANS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |
Schedule of Change in Benefit Obligation and Plan Assets, Funded Status and Amounts Recognized in Balance Sheet and Accumulated Other Comprehensive Income (Loss) | Below is a summary balance sheet of the change in plan assets during 2019 and 2018 , the funded status of the plans and amounts recognized in the Consolidated Statements of Financial Position. Summary of Changes Pension Plans Postretirement Benefit Plans 2019 2018 2019 2018 (Dollars in millions) U.S. Non-U.S. U.S. Non-U.S. Change in projected benefit obligation: Benefit obligation, beginning of year $ 1,959 $ 840 $ 2,154 $ 893 $ 672 $ 738 Service cost 27 14 35 14 — — Interest cost 76 20 67 20 25 22 Actuarial (gain) loss 200 113 (119 ) (20 ) 71 (33 ) Plan participants' contributions — 1 — 1 10 11 Effect of currency exchange — 11 — (45 ) 1 (1 ) Benefits paid (195 ) (27 ) (178 ) (23 ) (63 ) (65 ) Benefit obligation, end of year $ 2,067 $ 972 $ 1,959 $ 840 $ 716 $ 672 Change in plan assets: Fair value of plan assets, beginning of year $ 1,820 $ 713 $ 2,054 $ 773 $ 135 $ 148 Actual return on plan assets 289 102 (61 ) (19 ) 27 (6 ) Effect of currency exchange — 9 — (39 ) — — Company contributions 5 22 5 20 42 43 Reserve for third party contributions — — — — (12 ) 4 Plan participants' contributions — 1 — 1 10 11 Benefits paid (195 ) (27 ) (178 ) (23 ) (63 ) (65 ) Fair value of plan assets, end of year $ 1,919 $ 820 $ 1,820 $ 713 $ 139 $ 135 Funded status at end of year $ (148 ) $ (152 ) $ (139 ) $ (127 ) $ (577 ) $ (537 ) Amounts recognized in the Consolidated Statements of Financial Position consist of: Other noncurrent assets $ 13 $ — $ 2 $ — $ 50 $ 41 Current liabilities (3 ) (1 ) (4 ) (1 ) (47 ) (45 ) Post-employment obligations (158 ) (151 ) (137 ) (126 ) (580 ) (533 ) Net amount recognized, end of year $ (148 ) $ (152 ) $ (139 ) $ (127 ) $ (577 ) $ (537 ) Accumulated benefit obligation $ 2,005 $ 919 $ 1,900 $ 796 Amounts recognized in accumulated other comprehensive income consist of: Prior service (credit) cost $ 2 $ — $ 2 $ — $ (143 ) $ (182 ) |
Defined Benefit Plan, Plan with Projected Benefit Obligation in Excess of Plan Assets [Table Text Block] | Information for pension plans with projected benefit obligations in excess of plan assets: (Dollars in millions) 2019 2018 U.S. Non-U.S. U.S. Non-U.S. Projected benefit obligation $ 1,673 $ 972 $ 1,726 $ 840 Fair value of plan assets 1,512 820 1,585 713 |
Defined Benefit Plan, Plan with Accumulated Benefit Obligation in Excess of Plan Assets [Table Text Block] | Information for pension plans with accumulated benefit obligations in excess of plan assets: (Dollars in millions) 2019 2018 U.S. Non-U.S. U.S. Non-U.S. Projected benefit obligation $ 1,673 $ 651 $ 1,726 $ 568 Accumulated benefit obligation 1,611 625 1,667 547 Fair value of plan assets 1,512 513 1,585 448 |
Schedule of Benefit Cost and Amounts Recognized in Other Comprehensive Income | Summary of Benefit Costs and Other Amounts Recognized in Other Comprehensive Income Pension Plans Postretirement Benefit Plans 2019 2018 2017 2019 2018 2017 (Dollars in millions) U.S. Non-U.S. U.S. Non-U.S. U.S. Non-U.S. Components of net periodic benefit (credit) cost: Service cost $ 27 $ 14 $ 35 $ 14 $ 37 $ 13 $ — $ — $ 3 Interest cost 76 20 67 20 66 20 25 22 23 Expected return on plan assets (128 ) (32 ) (147 ) (37 ) (140 ) (35 ) (5 ) (5 ) (5 ) Amortization of: Prior service (credit) cost — — (1 ) 1 (4 ) 1 (39 ) (40 ) (40 ) Mark-to-market pension and other postretirement benefits (gain) loss, net 39 43 89 36 (37 ) (7 ) 61 (26 ) 23 Net periodic benefit (credit) cost $ 14 $ 45 $ 43 $ 34 $ (78 ) $ (8 ) $ 42 $ (49 ) $ 4 Other changes in plan assets and benefit obligations recognized in other comprehensive income: Amortization of: Prior service (credit) cost $ — $ — $ (1 ) $ 1 $ (4 ) $ 1 $ (39 ) $ (40 ) $ (40 ) Total $ — $ — $ (1 ) $ 1 $ (4 ) $ 1 $ (39 ) $ (40 ) $ (40 ) |
Schedule of Assumptions Used to Develop the Projected Benefit Obligation | The assumptions used to develop the projected benefit obligation for Eastman's significant U.S. and non-U.S. defined benefit pension plans and U.S. postretirement benefit plans are provided in the following tables. Pension Plans Postretirement Benefit Plans 2019 2018 2017 2019 2018 2017 Weighted-average assumptions used to determine benefit obligations for years ended December 31: U.S. Non-U.S. U.S. Non-U.S. U.S. Non-U.S. Discount rate 3.25 % 1.56 % 4.29 % 2.35 % 3.57 % 2.25 % 3.21 % 4.26 % 3.54 % Rate of compensation increase 3.25 % 2.94 % 3.25 % 2.94 % 3.25 % 2.95 % 3.25 % 3.25 % 3.25 % Health care cost trend Initial 6.50 % 6.50 % 6.75 % Decreasing to ultimate trend of 5.00 % 5.00 % 5.00 % in year 2026 2025 2025 Weighted-average assumptions used to determine net periodic cost for years ended December 31: U.S. Non-U.S. U.S. Non-U.S. U.S. Non-U.S. Discount rate 4.29 % 2.35 % 3.57 % 2.25 % 3.89 % 2.33 % 4.26 % 3.54 % 3.91 % Discount rate for service cost 4.32 % 2.35 % 3.64 % 2.25 % 3.89 % 2.33 % 4.05 % 3.28 % 4.31 % Discount rate for interest cost 3.96 % 2.35 % 3.18 % 2.25 % 3.24 % 2.33 % 3.93 % 3.14 % 3.28 % Expected return on assets 7.43 % 4.49 % 7.48 % 4.83 % 7.49 % 5.02 % 3.75 % 3.75 % 3.75 % Rate of compensation increase 3.25 % 2.94 % 3.25 % 2.95 % 3.25 % 2.94 % 3.25 % 3.25 % 3.25 % Health care cost trend Initial 6.50 % 6.75 % 7.00 % Decreasing to ultimate trend of 5.00 % 5.00 % 5.00 % in year 2025 2025 2021 |
Schedule of Fair Value Measurements of Pension Plan Assets on a Recurring Basis | The following tables reflect the fair value of the defined benefit pension plans assets. (Dollars in millions) Fair Value Measurements at December 31, 2019 Description Total Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Pension Assets: U.S. Non-U.S. U.S. Non-U.S. U.S. Non-U.S. U.S. Non-U.S. Cash & Cash Equivalents (1) $ 35 $ 72 $ 35 $ 72 $ — $ — $ — $ — Public Equity - United States (2) 1 — 1 — — — — — Other Investments (3) — 57 — — — — — 57 Total Assets at Fair Value $ 36 $ 129 $ 36 $ 72 $ — $ — $ — $ 57 Investments Measured at Net Asset Value (4) 1,883 691 Total Assets $ 1,919 $ 820 (Dollars in millions) Fair Value Measurements at December 31, 2018 Description Total Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs Pension Assets: U.S. Non-U.S. U.S. Non-U.S. U.S. Non-U.S. U.S. Non-U.S. Cash & Cash Equivalents (1) $ 16 $ 53 $ 16 $ 53 $ — $ — $ — $ — Public Equity - United States (2) 2 — 2 — — — — — Other Investments (3) — 51 — — — — — 51 Total Assets at Fair Value $ 18 $ 104 $ 18 $ 53 $ — $ — $ — $ 51 Investments Measured at Net Asset Value (4) 1,802 609 Total Assets $ 1,820 $ 713 (1) Cash & Cash Equivalents: Funds generally invested in actively managed collective trust funds or interest bearing accounts. (2) Public Equity - United States: Common stock equity securities which are primarily valued using a market approach based on the quoted market prices. (3) Other Investments: Primarily consist of insurance contracts which are generally valued using a crediting rate that approximates market returns and investments in underlying securities whose market values are unobservable and determined using pricing models, discounted cash flow methodologies, or similar techniques. (4) Investments Measured at Net Asset Value: The underlying debt and public equity investments in this category are generally held in common trust funds, which are either actively or passively managed investment vehicles, that are valued at the net asset value per unit/share multiplied by the number of units/shares held as of the measurement date. The other alternative investments in this category are valued under the practical expedient method which is based on the most recently reported net asset value provided by the management of each private investment fund, adjusted as appropriate, for any lag between the date of the financial reports and the measurement date. The following tables reflect the fair value of the postretirement benefit plan assets. The postretirement benefit plan is for the voluntary employees' beneficiary association ("VEBA") trust the Company assumed as part of the Solutia acquisition. (Dollars in millions) Fair Value Measurements at December 31, 2019 Description Total Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Postretirement Benefit Plan Assets: Debt (1) : Fixed Income (U.S.) $ 85 $ — $ 85 $ — Fixed Income (Non-U.S.) 26 — 26 — Total $ 111 $ — $ 111 $ — (Dollars in millions) Fair Value Measurements at Description Total Fair Value Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Postretirement Benefit Plan Assets: Cash & Cash Equivalents (2) $ 3 $ 3 $ — $ — Debt (1) : Fixed Income (U.S.) 78 — 78 — Fixed Income (Non-U.S.) 26 — 26 — Total $ 107 $ 3 $ 104 $ — (1) Debt: The fixed income securities are primarily valued upon a market approach, using matrix pricing and considering a security's relationship to other securities for which quoted prices in an active market may be available, or an income approach, converting future cash flows to a single present value amount. Inputs used in developing fair value estimates include reported trades, broker quotes, benchmark yields, and base spreads. (2) Cash & Cash Equivalents: Funds generally invested in actively managed collective trust funds or interest bearing accounts. |
Schedule of Pension Plan Assets Classified within Level 3 of the Fair Value Hierarchy | The Company valued assets with unobservable inputs (Level 3), primarily insurance contracts, using a crediting rate that approximates market returns and investments in underlying securities whose market values are unobservable and determined using pricing models, discounted cash flow methodologies, or similar techniques. Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Other Investments (1) (Dollars in millions) Non-U.S. Pension Plans Balance at December 31, 2017 $ 51 Unrealized gains — Balance at December 31, 2018 51 Unrealized gains 5 Purchases, issuances, sales, and settlements 1 Balance at December 31, 2019 $ 57 (1) Primarily consists of insurance contracts. |
Schedule of US and Non-US Pension Plans Asset Target Allocation by Category | s. The following table reflects the target allocation for the Company's U.S. and non-U.S. pension and postretirement benefit plans assets for 2020 and the asset allocation at December 31, 2019 and 2018 , by asset category. U.S. Pension Plans Non-U.S. Pension Plans Postretirement Benefit Plan 2020 Target Allocation Plan Assets at Plan Assets at 2020 Target Allocation Plan Assets at Plan Assets at 2020 Target Allocation Plan Assets at Plan Assets at Asset category Equity securities 44% 50% 43% 24% 21% 19% —% —% —% Debt securities 39% 37% 44% 57% 53% 54% 100% 100% 100% Real estate 2% 2% 2% 5% 8% 8% —% —% —% Other investments (1) 15% 11% 11% 14% 18% 19% —% —% —% Total 100% 100% 100% 100% 100% 100% 100% 100% 100% (1) U.S. primarily consists of private equity and natural resource and energy related limited partnership investments. Non-U.S. primarily consists of annuity contracts and alternative investments. |
Schedule Benefits Expected to be Paid from Pension Plans and Benefits | The estimated future benefit payments, reflecting expected future service, as appropriate, are as follows: Pension Plans Postretirement Benefit Plans (Dollars in millions) U.S. Non-U.S. 2020 $ 197 $ 31 $ 57 2021 161 30 57 2022 156 31 53 2023 151 34 47 2024 151 38 47 2025-2029 686 210 223 |
LEASES AND OTHER COMMITMENTS _2
LEASES AND OTHER COMMITMENTS LEASES AND OTHER COMMITMENTS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Lessee, Operating Lease, Liability, Maturity [Table Text Block] | (Dollars in millions) Operating lease liabilities 2020 $ 62 2021 49 2022 38 2023 25 2024 14 2025 and beyond 30 Total lease payments 218 Less: amounts of lease payments representing interest 22 Present value of future lease payments 196 Less: current obligations under leases 55 Long-term lease obligations $ 141 |
Lease, Cost [Table Text Block] | For year ended (Dollars in millions) December 31, 2019 Lease costs: Operating lease costs $ 70 Short-term lease costs 40 Sublease income (2 ) Total $ 108 Other operating lease information: Cash paid for amounts included in the measurement of lease liabilities $ 72 Right-to-use assets obtained in exchange for new lease liabilities 54 Weighted-average remaining lease term, in years 5 Weighted-average discount rate 4.0 % |
Other Commitments [Table Text Block] | Eastman's obligations are summarized in the following table. (Dollars in millions) Payments Due for Period Debt Securities Credit Facilities and Other Interest Payable Purchase Obligations Operating Leases Other Liabilities Total 2020 $ — $ 171 $ 173 $ 181 $ 62 $ 241 $ 828 2021 483 — 186 156 49 81 955 2022 741 — 175 102 38 87 1,143 2023 840 — 156 91 25 87 1,199 2024 240 — 137 100 14 89 580 2025 and beyond 3,307 — 1,414 1,967 30 1,106 7,824 Total $ 5,611 $ 171 $ 2,241 $ 2,597 $ 218 $ 1,691 $ 12,529 |
ENVIRONMENTAL MATTERS (Tables)
ENVIRONMENTAL MATTERS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Environmental Matters [Abstract] | |
Schedule of Environmental Liabilities, Current and Non-current | (Dollars in millions) December 31, 2019 2018 Environmental contingent liabilities, current $ 20 $ 25 Environmental contingent liabilities, long-term 267 271 Total $ 287 $ 296 |
Schedule of Changes to Environmental Remediation Liabilities | (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 4 Cash reductions (15 ) Balance at December 31, 2019 $ 260 |
STOCKHOLDERS' EQUITY (Tables)
STOCKHOLDERS' EQUITY (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Reconciliation of the Changes in Stockholders' Equity | A reconciliation of the changes in stockholders' equity for 2019 , 2018 , and 2017 is provided below: (Dollars in millions) 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, 2016 $ 2 $ 1,915 $ 5,721 $ (281 ) $ (2,825 ) $ 4,532 $ 76 $ 4,608 Net Earnings — — 1,384 — — 1,384 4 1,388 Cash Dividends (1) — — (303 ) — — (303 ) — (303 ) Other Comprehensive Income — — — 72 — 72 — 72 Share-Based Compensation Expense (2) — 52 — — — 52 — 52 Stock Option Exercises — 22 — — — 22 — 22 Other — (6 ) — — — (6 ) 1 (5 ) Share Repurchase — — — — (350 ) (350 ) — (350 ) Distributions to noncontrolling interest — — — — — — (4 ) (4 ) 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 (3) — — 16 — — 16 — 16 Net Earnings — — 1,080 — — 1,080 4 1,084 Cash Dividends (1) — — (325 ) — — (325 ) — (325 ) Other Comprehensive (Loss) — — — (36 ) — (36 ) — (36 ) Share-Based Compensation Expense (2) — 64 — — — 64 — 64 Stock Option Exercises — 18 — — — 18 — 18 Other (4) — (17 ) — — — (17 ) (1 ) (18 ) Share Repurchase — — — — (400 ) (400 ) — (400 ) Distributions to noncontrolling interest — — — — — — (5 ) (5 ) 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 (5) — — (20 ) 20 — — — — Net Earnings — — 759 — — 759 3 762 Cash Dividends (1) — — (347 ) — — (347 ) — (347 ) Other Comprehensive Income — — — 11 — 11 — 11 Share-Based Compensation Expense (2) — 59 — — — 59 — 59 Stock Option Exercises — 9 — — — 9 — 9 Other (4) — (11 ) — — — (11 ) — (11 ) Share Repurchase — — — — (325 ) (325 ) — (325 ) Distributions to noncontrolling interest — — — — — — (4 ) (4 ) Balance at December 31, 2019 $ 2 $ 2,105 $ 7,965 $ (214 ) $ (3,900 ) $ 5,958 $ 74 $ 6,032 (1) Cash dividends includes cash dividends paid and dividends declared, but unpaid. (2) Share-based compensation expense is the fair value of share-based awards. |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | For years ended December 31, (In millions, except per share amounts) 2019 2018 2017 Numerator Net earnings attributable to Eastman $ 759 $ 1,080 $ 1,384 Denominator Weighted average shares used for basic EPS 137.4 141.2 144.8 Dilutive effect of stock options and other award plans 1.1 1.7 1.3 Weighted average shares used for diluted EPS 138.5 142.9 146.1 EPS (1) Basic $ 5.52 $ 7.65 $ 9.56 Diluted $ 5.48 $ 7.56 $ 9.47 (1) EPS is calculated using whole dollars and shares. |
Schedule of Shares of Common Stock Issued | For years ended December 31, 2019 2018 2017 Balance at beginning of year 219,140,523 218,369,992 217,707,600 Issued for employee compensation and benefit plans 498,123 770,531 662,392 Balance at end of year 219,638,646 219,140,523 218,369,992 |
Schedule of Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) (Dollars in millions) Cumulative Translation Adjustment Benefit Plans Unrecognized Prior Service Credits Unrealized Gains (Losses) on Cash Flow Hedges 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) 45 — (14 ) — 31 Balance at December 31, 2019 $ (264 ) $ 106 $ (55 ) $ (1 ) $ (214 ) |
Schedule of Components of Comprehensive Income (Loss) Before Tax and Net of Tax Effects | Components of total other comprehensive income (loss) recorded in the Consolidated Statements of Earnings, Comprehensive Income and Retained Earnings are presented below, before tax and net of tax effects: For years ended December 31, 2019 2018 2017 (Dollars in millions) Before Tax Net of Tax Before Tax Net of Tax Before Tax Net of Tax Change in cumulative translation adjustment $ 45 $ 45 $ (13 ) $ (13 ) $ 85 $ 85 Defined benefit pension and other postretirement benefit plans: Amortization of unrecognized prior service credits included in net periodic costs (39 ) (29 ) (40 ) (30 ) (43 ) (27 ) Derivatives and hedging: Unrealized gain (loss) during period (27 ) (20 ) 30 22 11 7 Reclassification adjustment for (gains) losses included in net income, net 20 15 (20 ) (15 ) 11 7 Total other comprehensive income (loss) $ (1 ) $ 11 $ (43 ) $ (36 ) $ 64 $ 72 For additional information regarding the impact of reclassifications into earnings, refer to Note 9, "Derivative and Non-Derivative Financial Instruments" , and Note 10, "Retirement Plans" . |
ASSET IMPAIRMENTS AND RESTRUC_2
ASSET IMPAIRMENTS AND RESTRUCTURING (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Restructuring Costs and Asset Impairment Charges [Abstract] | |
Schedule of Restructuring and Related Charges | For years ended December 31, (Dollars in millions) 2019 2018 2017 Asset impairments $ 27 $ — $ 1 Intangible asset and goodwill impairments 45 39 — Severance charges 45 6 6 Site closure and restructuring charges 9 — 1 Total $ 126 $ 45 $ 8 |
Schedule of Changes to Restructuring Reserve and Related Activities | (Dollars in millions) Balance at January 1, 2019 Provision/ Adjustments Non-cash Reductions/ Additions Cash Reductions Balance at December 31, 2019 Non-cash charges $ — $ 72 $ (72 ) $ — $ — Severance costs 6 45 — (34 ) 17 Site closure & restructuring costs 8 9 1 (7 ) 11 Total $ 14 $ 126 $ (71 ) $ (41 ) $ 28 (Dollars in millions) Balance at Provision/ Adjustments Non-cash Reductions/ Additions Cash Balance at Non-cash charges $ — $ 39 $ (39 ) $ — $ — Severance costs 19 6 1 (20 ) 6 Site closure & restructuring costs 10 — — (2 ) 8 Total $ 29 $ 45 $ (38 ) $ (22 ) $ 14 (Dollars in millions) Balance at Provision/ Adjustments Non-cash Reductions/ Additions Cash Balance at Non-cash charges $ — $ 1 $ (1 ) $ — $ — Severance costs 42 6 — (29 ) 19 Site closure & restructuring costs 13 1 1 (5 ) 10 Total $ 55 $ 8 $ — $ (34 ) $ 29 |
OTHER CHARGES (INCOME), NET (Ta
OTHER CHARGES (INCOME), NET (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Other Income and Expenses [Abstract] | |
Schedule of Other Nonoperating Income (Expense) | For years ended December 31, (Dollars in millions) 2019 2018 2017 Foreign exchange transaction losses (gains), net (1) $ 9 $ 12 $ 5 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 (10 ) (17 ) (12 ) Coal gasification incident property insurance — (65 ) — Cost of disposition of claims against discontinued Solutia operations — — 9 Gain from sale of business (2) — — (3 ) Other, net 4 4 5 Other (income) charges, net $ 3 $ (53 ) $ 4 |
SHARE-BASED COMPENSATION PLAN_2
SHARE-BASED COMPENSATION PLANS AND AWARDS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Assumptions Used in the Determination of Fair Value of Stock Options Awarded | The weighted average assumptions used in the determination of fair value for stock options awarded in 2019 , 2018 , and 2017 are provided in the table below: Assumptions 2019 2018 2017 Expected volatility rate 19.80% 19.03% 20.45% Expected dividend yield 2.51% 2.48% 2.64% Average risk-free interest rate 2.44% 2.61% 1.91% Expected term years 5.7 5.1 5.0 |
Schedule of Activity of Stock Option Awards | A summary of the activity of the Company's stock option awards for 2019 , 2018 , and 2017 is presented below: 2019 2018 2017 Options Weighted-Average Exercise Price Options Weighted-Average Exercise Price Options Weighted-Average Exercise Price Outstanding at beginning of year 2,905,600 $ 79 2,614,100 $ 70 2,363,700 $ 61 Granted 786,000 81 619,700 104 745,800 80 Exercised (135,700 ) 67 (323,000 ) 55 (489,300 ) 44 Cancelled, forfeited, or expired (76,600 ) 88 (5,200 ) 78 (6,100 ) 74 Outstanding at end of year 3,479,300 $ 80 2,905,600 $ 79 2,614,100 $ 70 Options exercisable at year-end 2,077,600 1,606,800 1,335,500 Available for grant at end of year 6,085,857 8,174,614 9,943,033 |
Schedule of Remaining Contractual Term and Weighted Average Exercise Price of Stock Options Outstanding and Exercisable | The following table provides the remaining contractual term and weighted average exercise prices of stock options outstanding and exercisable at December 31, 2019 : Options Outstanding Options Exercisable Range of Exercise Prices Number Outstanding at December 31, 2019 Weighted-Average Remaining Contractual Life (Years) Weighted-Average Exercise Price Number Exercisable at December 31, 2019 Weighted-Average Exercise Price $38-$50 176,700 1.5 $ 39 176,700 $ 39 $51-$73 720,500 5.9 67 625,100 66 $74-$89 1,985,100 7.1 81 1,076,800 79 $90-$104 597,000 8.2 104 199,000 — 104 3,479,300 6.8 $ 80 2,077,600 $ 74 |
Schedule of Summary of Status of Nonvested Options | A summary of the changes in the Company's nonvested options during the year ended December 31, 2019 is presented below: Nonvested Options Number of Options Weighted-Average Grant Date Fair Value Nonvested at January 1, 2019 1,298,800 $13.63 Granted 786,000 $13.12 Vested (608,200 ) $12.89 Cancelled, forfeited, or expired (74,900 ) $13.43 Nonvested options at December 31, 2019 1,401,700 $13.68 |
SUPPLEMENTAL CASH FLOW INFORM_2
SUPPLEMENTAL CASH FLOW INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Supplemental Cash Flow Information [Abstract] | |
Schedule of Cash Flow Supplemental Disclosures Other Items | Included in the line item "Other items, net" of the "Operating activities" section of the Consolidated Statements of Cash Flows are specific changes to certain balance sheet accounts as follows: For years ended December 31, (Dollars in millions) 2019 2018 2017 Current assets $ (5 ) $ (47 ) $ 13 Other assets 15 43 29 Current liabilities (82 ) (38 ) 59 Long-term liabilities and equity (17 ) 87 43 Total $ (89 ) $ 45 $ 144 |
Schedule of Cash Paid for Interest and Income Taxes and Noncash Investing and Financing Activities | For years ended December 31, (Dollars in millions) 2019 2018 2017 Interest, net of amounts capitalized $ 235 $ 239 $ 263 Income taxes 217 202 97 Non-cash investing and financing activities: Outstanding trade payables related to capital expenditures 22 18 27 (Gain) loss from equity investments (10 ) (17 ) (14 ) |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 12 Months Ended | |||
Dec. 31, 2019 | ||||
Segment Reporting [Abstract] | ||||
Schedule of Segment Information | For years ended December 31, (Dollars in millions) 2019 2018 2017 Sales by Segment Additives & Functional Products $ 3,273 $ 3,647 $ 3,343 Advanced Materials 2,688 2,755 2,572 Chemical Intermediates 2,443 2,831 2,728 Fibers 869 918 852 Total Sales by Operating Segment 9,273 10,151 9,495 Other — — 54 Total Sales $ 9,273 $ 10,151 $ 9,549 For years ended December 31, (Dollars in millions) 2019 2018 2017 Earnings Before Interest and Taxes by Segment Additives & Functional Products $ 496 $ 639 $ 653 Advanced Materials 517 509 483 Chemical Intermediates 170 308 255 Fibers 194 257 181 Total EBIT by Operating Segment 1,377 1,713 1,572 Other Growth initiatives and businesses not allocated to operating segments (102 ) (114 ) (114 ) Pension and other postretirement benefit plans income (expense), net not allocated to operating segments (97 ) (17 ) 93 Asset impairments and restructuring charges, net (49 ) (6 ) (5 ) Other income (charges), net not allocated to operating segments (9 ) (24 ) (16 ) Total EBIT $ 1,120 $ 1,552 $ 1,530 December 31, (Dollars in millions) 2019 2018 Assets by Segment (1) Additives & Functional Products $ 6,387 $ 6,545 Advanced Materials 4,415 4,456 Chemical Intermediates 2,775 2,934 Fibers 1,014 978 Total Assets by Operating Segment 14,591 14,913 Corporate Assets 1,417 1,082 Total Assets $ 16,008 $ 15,995 (1) The chief operating decision maker holds operating segment management accountable for accounts receivable, inventory, fixed assets, goodwill, and intangible assets. For years ended December 31, (Dollars in millions) 2019 2018 2017 Depreciation and Amortization Expense by Segment Additives & Functional Products $ 218 $ 219 $ 213 Advanced Materials 172 169 164 Chemical Intermediates 150 151 148 Fibers 64 64 58 Total Depreciation and Amortization Expense by Operating Segment 604 603 583 Other 7 1 4 Total Depreciation and Amortization Expense $ 611 $ 604 $ 587 For years ended December 31, (Dollars in millions) 2019 2018 2017 Capital Expenditures by Segment Additives & Functional Products $ 152 $ 150 $ 229 Advanced Materials 130 187 248 Chemical Intermediates 98 137 116 Fibers 42 50 52 Total Capital Expenditures by Operating Segment 422 524 645 Other 3 4 4 Total Capital Expenditures $ 425 $ 528 $ 649 Sales are attributed to geographic areas based on customer location and long-lived assets are attributed to geographic areas based on asset location. (Dollars in millions) For years ended December 31, Geographic Information 2019 2018 2017 Sales United States $ 3,720 $ 4,118 $ 3,999 All foreign countries 5,553 6,033 5,550 Total $ 9,273 $ 10,151 $ 9,549 December 31, 2019 2018 2017 Net properties United States $ 4,178 $ 4,228 $ 4,203 All foreign countries 1,393 1,372 1,404 Total $ 5,571 $ 5,600 $ 5,607 | |||
Revenue from External Customers by Products and Services [Table Text Block] | <div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;text-align:center;font-size:10pt;"><div style="padding-left:0px;text-indent:0px;line-height:normal;padding-top:10px;"><table cellpadding="0" cellspacing="0" style="font-family:Times New Roman;font-size:10pt;margin-left:auto;margin-right:auto;width:91.28113879003558%;border-collapse:collapse;text-align:left;"><tr><td colspan="4" rowspan="1"></td></tr><tr><td style="width:43%;" rowspan="1" colspan="1"></td><td style="width:19%;" rowspan="1" colspan="1"></td><td style="width:19%;" rowspan="1" colspan="1"></td><td style="width:19%;" rowspan="1" colspan="1"></td></tr><tr><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td colspan="3" style="vertical-align:bottom;border-bottom:2px solid #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1"><div style="text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Percentage of Total Segment Sales</font></div></td></tr><tr><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">AFP Product Lines</font></div></td><td style="vertical-align:bottom;border-bottom:2px solid #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;border-top:2px solid #000000;" rowspan="1" colspan="1"><div style="text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">2019</font></div></td><td style="vertical-align:bottom;border-bottom:2px solid #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;border-top:2px solid #000000;" rowspan="1" colspan="1"><div style="text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">2018</font></div></td><td style="vertical-align:bottom;border-bottom:2px solid #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;border-top:2px solid #000000;" rowspan="1" colspan="1"><div style="text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">2017</font></div></td></tr><tr><td style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Coatings and Inks Additives</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;border-top:2px solid #000000;" rowspan="1" colspan="1"><div style="text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">24%</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;border-top:2px solid #000000;" rowspan="1" colspan="1"><div style="text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">23%</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;border-top:2px solid #000000;" rowspan="1" colspan="1"><div style="text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">23%</font></div></td></tr><tr><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Adhesives Resins</font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">15%</font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">16%</font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">18%</font></div></td></tr><tr><td style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Tire Additives</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">16%</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">17%</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">17%</font></div></td></tr><tr><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Care Chemicals </font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">18%</font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">17%</font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">17%</font></div></td></tr><tr><td style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Specialty Fluids</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">14%</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">13%</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">13%</font></div></td></tr><tr><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Animal Nutrition and Crop Protection</font></div></td><td style="vertical-align:bottom;border-bottom:2px solid #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">13%</font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">14%</font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">12%</font></div></td></tr><tr><td style="vertical-align:middle;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Total</font></div></td><td style="vertical-align:middle;border-bottom:3px double #000000;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;border-top:2px solid #000000;" rowspan="1" colspan="1"><div style="text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">100%</font></div></td><td style="vertical-align:middle;border-bottom:3px double #000000;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;border-top:2px solid #000000;" rowspan="1" colspan="1"><div style="text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">100%</font></div></td><td style="vertical-align:middle;border-bottom:3px double #000000;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;border-top:2px solid #000000;" rowspan="1" colspan="1"><div style="text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">100%</font></div></td></tr></table></div></div><div style="line-height:120%;text-align:center;font-size:10pt;"><div style="padding-left:0px;text-indent:0px;line-height:normal;padding-top:10px;"><table cellpadding="0" cellspacing="0" style="font-family:Times New Roman;font-size:10pt;margin-left:auto;margin-right:auto;width:91.28113879003558%;border-collapse:collapse;text-align:left;"><tr><td colspan="4" rowspan="1"></td></tr><tr><td style="width:43%;" rowspan="1" colspan="1"></td><td style="width:19%;" rowspan="1" colspan="1"></td><td style="width:19%;" rowspan="1" colspan="1"></td><td style="width:19%;" rowspan="1" colspan="1"></td></tr><tr><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td colspan="3" style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1"><div style="text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Percentage of Total Segment Sales</font></div></td></tr><tr><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">AM Product Lines</font></div></td><td style="vertical-align:bottom;border-bottom:2px solid #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;border-top:2px solid #000000;" rowspan="1" colspan="1"><div style="text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">2019</font></div></td><td style="vertical-align:bottom;border-bottom:2px solid #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;border-top:2px solid #000000;" rowspan="1" colspan="1"><div style="text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">2018</font></div></td><td style="vertical-align:bottom;border-bottom:2px solid #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;border-top:2px solid #000000;" rowspan="1" colspan="1"><div style="text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">2017</font></div></td></tr><tr><td style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Specialty Plastics</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;border-top:2px solid #000000;" rowspan="1" colspan="1"><div style="text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">49%</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;border-top:2px solid #000000;" rowspan="1" colspan="1"><div style="text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">49%</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;border-top:2px solid #000000;" rowspan="1" colspan="1"><div style="text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">51%</font></div></td></tr><tr><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Advanced Interlayers</font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">32%</font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">33%</font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">33%</font></div></td></tr><tr><td style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Performance Films</font></div></td><td style="vertical-align:bottom;border-bottom:2px solid #000000;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">19%</font></div></td><td style="vertical-align:bottom;border-bottom:2px solid #000000;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">18%</font></div></td><td style="vertical-align:bottom;border-bottom:2px solid #000000;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">16%</font></div></td></tr><tr><td style="vertical-align:middle;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Total</font></div></td><td style="vertical-align:middle;border-bottom:3px double #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;border-top:2px solid #000000;" rowspan="1" colspan="1"><div style="text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">100%</font></div></td><td style="vertical-align:middle;border-bottom:3px double #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;border-top:2px solid #000000;" rowspan="1" colspan="1"><div style="text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">100%</font></div></td><td style="vertical-align:middle;border-bottom:3px double #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;border-top:2px solid #000000;" rowspan="1" colspan="1"><div style="text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">100%</font></div></td></tr></table></div></div><div style="line-height:120%;text-align:center;font-size:10pt;"><div style="padding-left:0px;text-indent:0px;line-height:normal;padding-top:10px;"><table cellpadding="0" cellspacing="0" style="font-family:Times New Roman;font-size:10pt;margin-left:auto;margin-right:auto;width:91.28113879003558%;border-collapse:collapse;text-align:left;"><tr><td colspan="4" rowspan="1"></td></tr><tr><td style="width:43%;" rowspan="1" colspan="1"></td><td style="width:19%;" rowspan="1" colspan="1"></td><td style="width:19%;" rowspan="1" colspan="1"></td><td style="width:19%;" rowspan="1" colspan="1"></td></tr><tr><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td colspan="3" style="vertical-align:bottom;border-bottom:2px solid #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1"><div style="text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Percentage of Total Segment Sales</font></div></td></tr><tr><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">CI Product Lines</font></div></td><td style="vertical-align:bottom;border-bottom:2px solid #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;border-top:2px solid #000000;" rowspan="1" colspan="1"><div style="text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">2019</font></div></td><td style="vertical-align:bottom;border-bottom:2px solid #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;border-top:2px solid #000000;" rowspan="1" colspan="1"><div style="text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">2018</font></div></td><td style="vertical-align:bottom;border-bottom:2px solid #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;border-top:2px solid #000000;" rowspan="1" colspan="1"><div style="text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">2017</font></div></td></tr><tr><td style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Intermediates</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;border-top:2px solid #000000;" rowspan="1" colspan="1"><div style="text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">59%</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;border-top:2px solid #000000;" rowspan="1" colspan="1"><div style="text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">60%</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;border-top:2px solid #000000;" rowspan="1" colspan="1"><div style="text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">64%</font></div></td></tr><tr><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Plasticizers</font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">21%</font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">20%</font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">19%</font></div></td></tr><tr><td style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Functional Amines</font></div></td><td style="vertical-align:bottom;border-bottom:2px solid #000000;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">20%</font></div></td><td style="vertical-align:bottom;border-bottom:2px solid #000000;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">20%</font></div></td><td style="vertical-align:bottom;border-bottom:2px solid #000000;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">17%</font></div></td></tr><tr><td style="vertical-align:middle;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Total</font></div></td><td style="vertical-align:middle;border-bottom:3px double #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;border-top:2px solid #000000;" rowspan="1" colspan="1"><div style="text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">100%</font></div></td><td style="vertical-align:middle;border-bottom:3px double #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;border-top:2px solid #000000;" rowspan="1" colspan="1"><div style="text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">100%</font></div></td><td style="vertical-align:middle;border-bottom:3px double #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;border-top:2px solid #000000;" rowspan="1" colspan="1"><div style="text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">100%</font></div></td></tr></table></div></div><div style="line-height:120%;text-align:center;font-size:10pt;"><div style="padding-left:0px;text-indent:0px;line-height:normal;padding-top:10px;"><table cellpadding="0" cellspacing="0" style="font-family:Times New Roman;font-size:10pt;margin-left:auto;margin-right:auto;width:91.28113879003558%;border-collapse:collapse;text-align:left;"><tr><td colspan="4" rowspan="1"></td></tr><tr><td style="width:43%;" rowspan="1" colspan="1"></td><td style="width:19%;" rowspan="1" colspan="1"></td><td style="width:19%;" rowspan="1" colspan="1"></td><td style="width:19%;" rowspan="1" colspan="1"></td></tr><tr><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td colspan="3" style="vertical-align:bottom;border-bottom:2px solid #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1"><div style="text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Percentage of Total Segment Sales</font></div></td></tr><tr><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Fibers Product Lines</font></div></td><td style="vertical-align:bottom;border-bottom:2px solid #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;border-top:2px solid #000000;" rowspan="1" colspan="1"><div style="text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">2019</font></div></td><td style="vertical-align:bottom;border-bottom:2px solid #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;border-top:2px solid #000000;" rowspan="1" colspan="1"><div style="text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">2018</font></div></td><td style="vertical-align:bottom;border-bottom:2px solid #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;border-top:2px solid #000000;" rowspan="1" colspan="1"><div style="text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">2017</font></div></td></tr><tr><td style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Acetate Tow</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;border-top:2px solid #000000;" rowspan="1" colspan="1"><div style="text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">68%</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;border-top:2px solid #000000;" rowspan="1" colspan="1"><div style="text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">69%</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;border-top:2px solid #000000;" rowspan="1" colspan="1"><div style="text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">77%</font></div></td></tr><tr><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Acetyl Chemical Products</font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">15%</font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:center;font-size:10pt;"><font style="font-fam | |||
Revenue from External Customers by Geographic Areas [Table Text Block] | <div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;text-align:center;font-size:11pt;"><div style="padding-left:0px;text-indent:0px;line-height:normal;padding-top:10px;"><table cellpadding="0" cellspacing="0" style="font-family:Times New Roman;font-size:10pt;margin-left:auto;margin-right:auto;width:91.28113879003558%;border-collapse:collapse;text-align:left;"><tr><td colspan="4" rowspan="1"></td></tr><tr><td style="width:43%;" rowspan="1" colspan="1"></td><td style="width:19%;" rowspan="1" colspan="1"></td><td style="width:19%;" rowspan="1" colspan="1"></td><td style="width:19%;" rowspan="1" colspan="1"></td></tr><tr><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td colspan="3" style="vertical-align:bottom;border-bottom:2px solid #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1"><div style="text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Percentage of Total Segment Sales</font></div></td></tr><tr><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">AFP Sales by Customer Location</font></div></td><td style="vertical-align:bottom;border-bottom:2px solid #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;border-top:2px solid #000000;" rowspan="1" colspan="1"><div style="text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">2019</font></div></td><td style="vertical-align:bottom;border-bottom:2px solid #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;border-top:2px solid #000000;" rowspan="1" colspan="1"><div style="text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">2018</font></div></td><td style="vertical-align:bottom;border-bottom:2px solid #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;border-top:2px solid #000000;" rowspan="1" colspan="1"><div style="text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">2017</font></div></td></tr><tr><td style="vertical-align:middle;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">United States and Canada</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;border-top:2px solid #000000;" rowspan="1" colspan="1"><div style="text-align:center;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;">37%</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;border-top:2px solid #000000;" rowspan="1" colspan="1"><div style="text-align:center;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;">36%</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;border-top:2px solid #000000;" rowspan="1" colspan="1"><div style="text-align:center;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;">35%</font></div></td></tr><tr><td style="vertical-align:middle;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Asia Pacific</font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:center;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;">24%</font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:center;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;">24%</font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:center;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;">23%</font></div></td></tr><tr><td style="vertical-align:middle;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Europe, Middle East, and Africa</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:center;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;">33%</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:center;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;">34%</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:center;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;">36%</font></div></td></tr><tr><td style="vertical-align:middle;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Latin America</font></div></td><td style="vertical-align:bottom;border-bottom:2px solid #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:center;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;">6%</font></div></td><td style="vertical-align:bottom;border-bottom:2px solid #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:center;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;">6%</font></div></td><td style="vertical-align:bottom;border-bottom:2px solid #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:center;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;">6%</font></div></td></tr><tr><td style="vertical-align:middle;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Total</font></div></td><td style="vertical-align:middle;border-bottom:3px double #000000;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;border-top:2px solid #000000;" rowspan="1" colspan="1"><div style="text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">100%</font></div></td><td style="vertical-align:middle;border-bottom:3px double #000000;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;border-top:2px solid #000000;" rowspan="1" colspan="1"><div style="text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">100%</font></div></td><td style="vertical-align:middle;border-bottom:3px double #000000;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;border-top:2px solid #000000;" rowspan="1" colspan="1"><div style="text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">100%</font></div></td></tr></table></div></div><div style="line-height:120%;text-align:center;font-size:11pt;"><div style="padding-left:0px;text-indent:0px;line-height:normal;padding-top:10px;"><table cellpadding="0" cellspacing="0" style="font-family:Times New Roman;font-size:10pt;margin-left:auto;margin-right:auto;width:91.28113879003558%;border-collapse:collapse;text-align:left;"><tr><td colspan="4" rowspan="1"></td></tr><tr><td style="width:43%;" rowspan="1" colspan="1"></td><td style="width:19%;" rowspan="1" colspan="1"></td><td style="width:19%;" rowspan="1" colspan="1"></td><td style="width:19%;" rowspan="1" colspan="1"></td></tr><tr><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td colspan="3" style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1"><div style="text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Percentage of Total Segment Sales</font></div></td></tr><tr><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">AM Sales by Customer Location</font></div></td><td style="vertical-align:bottom;border-bottom:2px solid #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;border-top:2px solid #000000;" rowspan="1" colspan="1"><div style="text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">2019</font></div></td><td style="vertical-align:bottom;border-bottom:2px solid #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;border-top:2px solid #000000;" rowspan="1" colspan="1"><div style="text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">2018</font></div></td><td style="vertical-align:bottom;border-bottom:2px solid #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;border-top:2px solid #000000;" rowspan="1" colspan="1"><div style="text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">2017</font></div></td></tr><tr><td style="vertical-align:middle;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">United States and Canada</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;border-top:2px solid #000000;" rowspan="1" colspan="1"><div style="text-align:center;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;">34%</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;border-top:2px solid #000000;" rowspan="1" colspan="1"><div style="text-align:center;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;">35%</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;border-top:2px solid #000000;" rowspan="1" colspan="1"><div style="text-align:center;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;">36%</font></div></td></tr><tr><td style="vertical-align:middle;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Asia Pacific</font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:center;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;">32%</font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:center;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;">33%</font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:center;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;">33%</font></div></td></tr><tr><td style="vertical-align:middle;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Europe, Middle East, and Africa</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:center;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;">28%</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:center;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;">27%</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:center;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;">26%</font></div></td></tr><tr><td style="vertical-align:middle;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Latin America</font></div></td><td style="vertical-align:bottom;border-bottom:2px solid #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:center;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;">6%</font></div></td><td style="vertical-align:bottom;border-bottom:2px solid #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:center;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;">5%</font></div></td><td style="vertical-align:bottom;border-bottom:2px solid #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:center;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;">5%</font></div></td></tr><tr><td style="vertical-align:middle;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Total</font></div></td><td style="vertical-align:middle;border-bottom:3px double #000000;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;border-top:2px solid #000000;" rowspan="1" colspan="1"><div style="text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">100%</font></div></td><td style="vertical-align:middle;border-bottom:3px double #000000;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;border-top:2px solid #000000;" rowspan="1" colspan="1"><div style="text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">100%</font></div></td><td style="vertical-align:middle;border-bottom:3px double #000000;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;border-top:2px solid #000000;" rowspan="1" colspan="1"><div style="text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">100%</font></div></td></tr></table></div></div><div style="line-height:120%;text-align:center;font-size:11pt;"><div style="padding-left:0px;text-indent:0px;line-height:normal;padding-top:10px;"><table cellpadding="0" cellspacing="0" style="font-family:Times New Roman;font-size:10pt;margin-left:auto;margin-right:auto;width:91.28113879003558%;border-collapse:collapse;text-align:left;"><tr><td colspan="4" rowspan="1"></td></tr><tr><td style="width:43%;" rowspan="1" colspan="1"></td><td style="width:19%;" rowspan="1" colspan="1"></td><td style="width:19%;" rowspan="1" colspan="1"></td><td style="width:19%;" rowspan="1" colspan="1"></td></tr><tr><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td colspan="3" style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1"><div style="text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Percentage of Total Segment Sales</font></div></td></tr><tr><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">CI Sales by Customer Location</font></div></td><td style="vertical-align:bottom;border-bottom:2px solid #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;border-top:2px solid #000000;" rowspan="1" colspan="1"><div style="text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">2019</font></div></td><td style="vertical-align:bottom;border-bottom:2px solid #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;border-top:2px solid #000000;" rowspan="1" colspan="1"><div style="text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">2018</font></div></td><td style="vertical-align:bottom;border-bottom:2px solid #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;border-top:2px solid #000000;" rowspan="1" colspan="1"><div style="text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">2017</font></div></td></tr><tr><td style="vertical-align:middle;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">United States and Canada</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;border-top:2px solid #000000;" rowspan="1" colspan="1"><div style="text-align:center;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;">64%</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;border-top:2px solid #000000;" rowspan="1" colspan="1"><div style="text-align:center;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;">64%</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;border-top:2px solid #000000;" rowspan="1" colspan="1"><div style="text-align:center;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;">68%</font></div></td></tr><tr><td style="vertical-align:middle;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Asia Pacific</font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:center;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;">14%</font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:center;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;">15%</font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:center;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;">14%</font></div></td></tr><tr><td style="vertical-align:middle;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Europe, Middle East, and Africa</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:center;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;">15%</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:center;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;">15%</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:center;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;">12%</font></div></td></tr><tr><td style="vertical-align:middle;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Latin America</font></div></td><td style="vertical-align:bottom;border-bottom:2px solid #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:center;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;">7%</font></div></td><td style="vertical-align:bottom;border-bottom:2px solid #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:center;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;">6%</font></div></td><td style="vertical-align:bottom;border-bottom:2px solid #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:center;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;">6%</font></div></td></tr><tr><td style="vertical-align:middle;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Total</font></div></td><td style="vertical-align:middle;border-bottom:3px double #000000;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;border-top:2px solid #000000;" rowspan="1" colspan="1"><div style="text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">100%</font></div></td><td style="vertical-align:middle;border-bottom:3px double #000000;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;border-top:2px solid #000000;" rowspan="1" colspan="1"><div style="text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">100%</font></div></td><td style="vertical-align:middle;border-bottom:3px double #000000;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;border-top:2px solid #000000;" rowspan="1" colspan="1"><div style="text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">100%</font></div></td></tr></table></div></div><div style="line-height:120%;text-align:center;font-size:11pt;"><div style="padding-left:0px;text-indent:0px;line-height:normal;padding-top:10px;"><table cellpadding="0" cellspacing="0" style="font-family:Times New Roman;font-size:10pt;margin-left:auto;margin-right:auto;width:91.28113879003558%;border-collapse:collapse;text-align:left;"><tr><td colspan="4" rowspan="1"></td></tr><tr><td style="width:43%;" rowspan="1" colspan="1"></td><td style="width:19%;" rowspan="1" colspan="1"></td><td style="width:19%;" rowspan="1" colspan="1"></td><td style="width:19%;" rowspan="1" colspan="1"></td></tr><tr><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td colspan="3" style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1"><div style="text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Percentage of Total Segment Sales</font></div></td></tr><tr><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Fibers Sales by Customer Location</font></div></td><td style="vertical-align:bottom;border-bottom:2px solid #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;border-top:2px solid #000000;" rowspan="1" colspan="1"><div style="text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">2019</font></div></td><td style="vertical-align:bottom;border-bottom:2px solid #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;border-top:2px solid #000000;" rowspan="1" colspan="1"><div style="text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">2018</font></div></td><td style="vertical-align:bottom;border-bottom:2px solid #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;border-top:2px solid #000000;" rowspan="1" colspan="1"><div style="text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">2017</font></div></td></tr><tr><td style="vertical-align:middle;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">United States and Canada</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;border-top:2px solid #000000;" rowspan="1" colspan="1"><div style="text-align:center;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;">25%</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;border-top:2px solid #000000;" rowspan="1" colspan="1"><div style="text-align:center;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;">26%</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;border-top:2px solid #000000;" rowspan="1" colspan="1"><div style="text-align:center;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;">22%</font></div></td></tr><tr><td style="vertical-align:middle;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Asia Pacific</font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:center;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;">32%</font></div></td><td style="vertical-align:bottom;padding-left: |
QUARTERLY SALES AND EARNINGS _2
QUARTERLY SALES AND EARNINGS DATA-UNAUDITED (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Data [Abstract] | |
Schedule of Quarterly Financial Information | (Dollars in millions, except per share amounts) First Quarter Second Quarter Third Quarter Fourth Quarter 2019 Sales $ 2,380 $ 2,363 $ 2,325 $ 2,205 Gross profit 574 589 574 497 Asset impairments and restructuring charges, net 32 18 2 74 Net earnings attributable to Eastman 209 258 266 26 Net earnings per share attributable to Eastman (1) Basic $ 1.50 $ 1.87 $ 1.95 $ 0.19 Diluted $ 1.49 $ 1.85 $ 1.93 $ 0.19 (1) Each quarter is calculated as a discrete period; the sum of the four quarters may not equal the calculated full year amount. (Dollars in millions, except per share amounts) First Quarter Second Quarter Third Quarter Fourth Quarter 2018 Sales $ 2,607 $ 2,621 $ 2,547 $ 2,376 Gross profit 581 704 728 466 Asset impairments and restructuring charges, net 2 4 — 39 Net earnings attributable to Eastman 290 344 412 34 Net earnings per share attributable to Eastman (1) Basic $ 2.03 $ 2.42 $ 2.93 $ 0.25 Diluted $ 2.00 $ 2.39 $ 2.89 $ 0.24 (1) Each quarter is calculated as a discrete period; the sum of the four quarters may not equal the calculated full year amount. |
RESERVE ROLLFORWARDS (Tables)
RESERVE ROLLFORWARDS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule of Valuation and Qualifying Accounts | Valuation and Qualifying Accounts (Dollars in millions) Additions Balance at January 1, 2019 Charges (Credits) to Cost and Expense Other Accounts Deductions Balance at December 31, 2019 Reserve for: Doubtful accounts and returns $ 11 $ — $ — $ — $ 11 LIFO inventory 337 (89 ) — — 248 Non-environmental asset retirement obligations 46 2 — — 48 Environmental contingencies 296 7 — 16 287 Deferred tax valuation allowance 487 (20 ) (14 ) — 453 $ 1,177 $ (100 ) $ (14 ) $ 16 $ 1,047 (Dollars in millions) Additions Balance at January 1, Charges (Credits) to Cost and Expense Other Accounts Balance at December 31, 2018 Reserve for: Doubtful accounts and returns $ 12 $ — $ — $ 1 $ 11 LIFO inventory 288 44 5 — 337 Non-environmental asset retirement obligations 49 (2 ) — 1 46 Environmental contingencies 304 9 — 17 296 Deferred tax valuation allowance (1) 410 81 (4 ) — 487 $ 1,063 $ 132 $ 1 $ 19 $ 1,177 (Dollars in millions) Additions Balance at January 1, Charges (Credits) to Cost and Expense Other Accounts Balance at December 31, 2017 Reserve for: Doubtful accounts and returns $ 10 $ 3 $ — $ 1 $ 12 LIFO inventory 264 24 — — 288 Non-environmental asset retirement obligations 46 2 1 — 49 Environmental contingencies 321 8 4 29 304 Deferred tax valuation allowance 278 126 6 — 410 $ 919 $ 163 $ 11 $ 30 $ 1,063 (1) Revised from Note 21, "Reserve Rollforwards" , to the Company's 2018 Annual Report on Form 10-K, which reported deferred tax valuation allowance as $466 million . |
SIGNIFICANT ACCOUNTING POLICI_3
SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Jan. 01, 2019 | Jan. 01, 2018 | |
Revenue Recognition [Abstract] | ||||
Contract with Customer, Asset, after Allowance for Credit Loss | $ 65 | $ 62 | ||
Environmental Costs [Abstract] | ||||
Expected Payment Period of Environmental Contingencies | 30 years | |||
Accounts receivable and allowance for doubtful accounts [Abstract] | ||||
Allowance for doubtful accounts | $ 11 | 11 | ||
Working Capital Management and Off Balance Sheet Arrangements [Abstract] | ||||
Receivable Sold Under Factoring Arrangement | $ 857 | $ 219 | ||
Building And Building Equipment [Member] | ||||
Depreciation [Abstract] | ||||
Property, Plant and Equipment, Estimated Useful Lives | 20 to 50 years | |||
Machinery and Equipment [Member] | ||||
Depreciation [Abstract] | ||||
Property, Plant and Equipment, Estimated Useful Lives | 3 to 33 years | |||
Computer software [Member] | ||||
Depreciation [Abstract] | ||||
Property, Plant and Equipment, Estimated Useful Lives | 3 to 5 years | |||
Office furniture and fixtures and computer equipment [Member] | ||||
Depreciation [Abstract] | ||||
Property, Plant and Equipment, Estimated Useful Lives | 5 to 10 years | |||
Vehicles, railcars, and general machinery and equipment [Member] | ||||
Depreciation [Abstract] | ||||
Property, Plant and Equipment, Estimated Useful Lives | 5 to 20 years | |||
Manufacturing-related improvements [Member] | ||||
Depreciation [Abstract] | ||||
Property, Plant and Equipment, Estimated Useful Lives | 20 to 33 years | |||
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 | $ 219 | |||
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) | |||
Accounting Standards Update 2014-09 [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 | $ 53 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
At FIFO or average cost (approximates current cost) [Abstract] | ||
Finished goods | $ 1,114 | $ 1,143 |
Work in process | 220 | 262 |
Raw materials and supplies | 576 | 515 |
Total inventories at FIFO or average cost | 1,910 | 1,920 |
Less: LIFO reserve | 248 | 337 |
Total inventories | $ 1,662 | $ 1,583 |
Inventories valued on the LIFO method (in hundredths) | 50.00% | 55.00% |
PROPERTIES AND ACCUMULATED DE_3
PROPERTIES AND ACCUMULATED DEPRECIATION (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Property, Plant and Equipment [Line Items] | |||
Properties and equipment at cost | $ 12,904 | $ 12,731 | |
Less: Accumulated depreciation | 7,333 | 7,131 | |
Net properties | 5,571 | 5,600 | |
Property, Plant, and Equipment, Additional Disclosures [Abstract] | |||
Depreciation expense | 450 | 437 | $ 420 |
Cumulative construction-period interest | 98 | 115 | |
Accumulated depreciation for cumulative construction-period interest | 38 | 54 | |
Interest capitalized | 4 | 4 | $ 8 |
Land [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Properties and equipment at cost | 158 | 158 | |
Buildings and Building Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Properties and equipment at cost | 1,430 | 1,385 | |
Machinery and Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Properties and equipment at cost | 10,960 | 10,801 | |
Construction in Progress [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Properties and equipment at cost | $ 356 | $ 387 |
GOODWILL AND OTHER INTANGIBLE_3
GOODWILL AND OTHER INTANGIBLE ASSETS Part 1 (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Changes in carrying amount of goodwill [Roll Forward] | ||
Beginning Balance | $ 4,467 | $ 4,527 |
Acquisitions | 15 | |
Impairments recognized | (45) | (38) |
Currency translation adjustments | (6) | (22) |
Ending Balance | 4,431 | 4,467 |
Additives And Functional Products [Member] | ||
Changes in carrying amount of goodwill [Roll Forward] | ||
Beginning Balance | 2,410 | 2,459 |
Acquisitions | 15 | |
Impairments recognized | (45) | (38) |
Currency translation adjustments | (3) | (11) |
Ending Balance | 2,377 | 2,410 |
Goodwill, Impaired, Accumulated Impairment Loss | 106 | 61 |
Advanced Materials [Member] | ||
Changes in carrying amount of goodwill [Roll Forward] | ||
Beginning Balance | 1,283 | 1,289 |
Acquisitions | 0 | |
Impairments recognized | 0 | 0 |
Currency translation adjustments | (1) | (6) |
Ending Balance | 1,282 | 1,283 |
Chemical Intermediates [Member] | ||
Changes in carrying amount of goodwill [Roll Forward] | ||
Beginning Balance | 764 | 769 |
Acquisitions | 0 | |
Impairments recognized | 0 | 0 |
Currency translation adjustments | (2) | (5) |
Ending Balance | 762 | 764 |
Goodwill, Impaired, Accumulated Impairment Loss | 12 | 12 |
Other Segments [Member] | ||
Changes in carrying amount of goodwill [Roll Forward] | ||
Beginning Balance | 10 | 10 |
Acquisitions | 0 | |
Impairments recognized | 0 | 0 |
Currency translation adjustments | 0 | 0 |
Ending Balance | 10 | 10 |
Goodwill, Impaired, Accumulated Impairment Loss | 14 | 14 |
Crop Protection [Member] | Additives And Functional Products [Member] | ||
Changes in carrying amount of goodwill [Roll Forward] | ||
Ending Balance | 190 | |
Goodwill, Impairment Loss, Net of Tax | $ 45 | $ 38 |
GOODWILL AND OTHER INTANGIBLE_4
GOODWILL AND OTHER INTANGIBLE ASSETS Part 2 (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Intangible Assets [Line Items] | |||
Gross Carrying Value | $ 2,870 | $ 3,068 | |
Accumulated Amortization | 859 | 883 | |
Finite-Lived Intangible Assets, Net | 2,011 | 2,185 | |
Amortization expense of definite-lived intangible assets related to continuing operations | 160 | 164 | $ 164 |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |||
2020 | 130 | ||
2021 | 125 | ||
2022 | 115 | ||
2023 | 115 | ||
2024 | 115 | ||
Trademarks [Member] | |||
Intangible Assets [Line Items] | |||
Gross Carrying Value | 529 | 529 | |
Finite-Lived Intangible Assets, Net | 529 | 529 | |
Other Intangible Assets [Member] | |||
Intangible Assets [Line Items] | |||
Gross Carrying Value | 10 | 10 | |
Finite-Lived Intangible Assets, Net | 10 | 10 | |
Customer Relationships [Member] | |||
Intangible Assets [Line Items] | |||
Gross Carrying Value | 1,566 | 1,567 | |
Accumulated Amortization | 494 | 419 | |
Finite-Lived Intangible Assets, Net | $ 1,072 | 1,148 | |
Customer Relationships [Member] | Minimum [Member] | |||
Intangible Assets [Line Items] | |||
Estimated Useful Life in Years | 8 years | ||
Customer Relationships [Member] | Maximum [Member] | |||
Intangible Assets [Line Items] | |||
Estimated Useful Life in Years | 25 years | ||
Technology [Member] | |||
Intangible Assets [Line Items] | |||
Gross Carrying Value | $ 677 | 680 | |
Accumulated Amortization | 343 | 294 | |
Finite-Lived Intangible Assets, Net | $ 334 | 386 | |
Technology [Member] | Minimum [Member] | |||
Intangible Assets [Line Items] | |||
Estimated Useful Life in Years | 7 years | ||
Technology [Member] | Maximum [Member] | |||
Intangible Assets [Line Items] | |||
Estimated Useful Life in Years | 20 years | ||
Contracts | |||
Intangible Assets [Line Items] | |||
Gross Carrying Value | $ 0 | 180 | |
Accumulated Amortization | 0 | 147 | |
Finite-Lived Intangible Assets, Net | $ 0 | 33 | |
Contracts | Minimum [Member] | |||
Intangible Assets [Line Items] | |||
Estimated Useful Life in Years | 5 years | ||
Contracts | Maximum [Member] | |||
Intangible Assets [Line Items] | |||
Estimated Useful Life in Years | 5 years | ||
Other Intangible Assets [Member] | |||
Intangible Assets [Line Items] | |||
Gross Carrying Value | $ 88 | 102 | |
Accumulated Amortization | 22 | 23 | |
Finite-Lived Intangible Assets, Net | $ 66 | $ 79 | |
Other Intangible Assets [Member] | Minimum [Member] | |||
Intangible Assets [Line Items] | |||
Estimated Useful Life in Years | 5 years | ||
Other Intangible Assets [Member] | Maximum [Member] | |||
Intangible Assets [Line Items] | |||
Estimated Useful Life in Years | 37 years |
EQUITY INVESTMENTS (Details)
EQUITY INVESTMENTS (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Other Joint Ventures [Member] | ||
Investments, Equity Method and Joint Ventures, Schedule of Equity Method Investments [Line Items] | ||
Percentage of equity interest in joint venture (in hudredths) | 50.00% | |
Equity method investment in joint venture | $ 106 | $ 100 |
Nanjing Joint Venture [Member] | ||
Investments, Equity Method and Joint Ventures, Schedule of Equity Method Investments [Line Items] | ||
Percentage of equity interest in joint venture (in hudredths) | 50.00% | |
Shenzhen Joint Venture [Member] | ||
Investments, Equity Method and Joint Ventures, Schedule of Equity Method Investments [Line Items] | ||
Percentage of equity interest in joint venture (in hudredths) | 50.00% | |
Acetate Tow Joint Venture [Member] | ||
Investments, Equity Method and Joint Ventures, Schedule of Equity Method Investments [Line Items] | ||
Percentage of equity interest in joint venture (in hudredths) | 45.00% |
PAYABLES AND OTHER CURRENT LI_3
PAYABLES AND OTHER CURRENT LIABILITIES (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Payables and Accruals [Abstract] | ||
Trade creditors | $ 890 | $ 914 |
Accrued payrolls, vacation, and variable-incentive compensation | 176 | 197 |
Accrued taxes | 89 | 94 |
Post-employment obligations | 93 | 80 |
Dividends payable to shareholders | 90 | 87 |
Other | 280 | 236 |
Total payables and other current liabilities | $ 1,618 | $ 1,608 |
INCOME TAXES Part 1 (Details)
INCOME TAXES Part 1 (Details) - USD ($) $ in Millions | 12 Months Ended | |||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||||
Earnings from continuing operations before income taxes [Abstract] | ||||||
United States | $ 454 | $ 718 | $ 654 | |||
Outside the United States | 448 | 592 | 635 | |||
Total | 902 | 1,310 | 1,289 | |||
United States [Abstract] | ||||||
Current | 55 | 161 | 220 | [1] | ||
Deferred | 19 | (11) | (383) | [2] | ||
Outside United States [Abstract] | ||||||
Current | 62 | 86 | 62 | |||
Deferred | (32) | (22) | 2 | |||
State and other [Abstract] | ||||||
Current | 0 | 30 | 13 | |||
Deferred | 36 | (18) | (13) | |||
Provision for (benefit from) income taxes | 140 | 226 | (99) | |||
Deferred tax charge (benefit) recorded in stockholders' equity [Abstract] | ||||||
Defined benefit pension and other postretirement benefit plans | (10) | (10) | (16) | |||
Derivatives and hedging | (2) | 3 | 8 | |||
Other comprehensive income | (12) | (7) | (8) | |||
Income tax expense (benefit) included in consolidated financial statement [Abstract] | ||||||
Provision for (benefit from) income taxes | 140 | 226 | (99) | |||
Other comprehensive income | (12) | (7) | (8) | |||
Total | 128 | 219 | (107) | |||
Reconciliation income tax rate [Abstract] | ||||||
Amount computed using the statutory rate | 189 | 274 | 450 | |||
State income taxes, net | 36 | 6 | (4) | |||
Foreign rate variance | (68) | (52) | (150) | |||
Domestic manufacturing deduction | 0 | 0 | (18) | |||
Change in reserves for tax contingencies | 36 | 21 | 20 | |||
General business credits | (52) | (60) | (65) | |||
U.S. tax on foreign earnings | (17) | 10 | 29 | |||
Foreign tax credits | 0 | (12) | (26) | |||
Tax law changes and tax loss from outside-U.S. entity reorganizations | [3] | 7 | 20 | (339) | ||
Other | 9 | 19 | 4 | |||
Provision for (benefit from) income taxes | $ 140 | $ 226 | $ (99) | |||
Effective Income Tax Rate Reconciliation, Percent [Abstract] | ||||||
Effective tax rate for the period (in hundredths) | 16.00% | 17.00% | (8.00%) | |||
Effective Income Tax Rate Reconciliation, Other Reconciling Items, Amount [Abstract] | ||||||
Tax law changes and tax loss from outside-U.S. entity reorganizations | [3] | $ 7 | $ 20 | $ (339) | ||
Tax benefit from finalization of prior year return | 30 | |||||
Tax benefit from restoration of tax basis | 20 | |||||
Tax benefit from settlement on tax ruling | 8 | |||||
Tax Cuts and Jobs Act, Transition Tax for Accumulated Foreign Earnings, Liability | 6 | 56 | ||||
Deferred tax assets [Abstract] | ||||||
Post-employment obligations | 247 | 230 | ||||
Net operating loss carryforwards | 606 | 634 | [4] | |||
Tax credit carryforwards | 239 | 239 | ||||
Environmental reserves | 68 | 70 | ||||
Unrealized derivative loss | 18 | 18 | ||||
Other | 173 | 94 | ||||
Total deferred tax assets | 1,351 | 1,285 | ||||
Less: Valuation allowance | 453 | 487 | [4] | |||
Deferred tax assets less valuation allowance | 898 | 798 | ||||
Deferred tax liabilities [Abstract] | ||||||
Property, plant, and equipment | (895) | (856) | ||||
Intangible assets | (439) | (473) | ||||
Investments | (235) | (179) | [4] | |||
Other | (178) | (131) | ||||
Total deferred tax liabilities | (1,747) | (1,639) | ||||
Net deferred tax liabilities | (849) | (841) | ||||
As recorded in the Consolidated Statements of Financial Position [Abstract] | ||||||
Other noncurrent assets | 66 | 43 | ||||
Deferred income tax liabilities | (915) | (884) | ||||
Net deferred tax liabilities | $ (849) | (841) | ||||
Operating Loss Carryforwards [Line Items] | ||||||
Document Period End Date | Dec. 31, 2019 | |||||
Undistributed Earnings of Foreign Subsidiaries | $ 2,500 | |||||
Accounting Changes and Error Corrections [Abstract] | ||||||
Net operating loss carryforwards | 606 | 634 | [4] | |||
Deferred Tax Assets, Valuation Allowance | 453 | 487 | [4] | |||
Deferred Tax Liabilities, Investments | 235 | 179 | [4] | |||
2017 Tax Reform [Abstract] | ||||||
Effective Income Tax Rate Reconciliation, Repatriation of Foreign Earnings, Amount | 71 | |||||
Due to and from tax authorities [Abstract] | ||||||
Miscellaneous receivables | 211 | 135 | ||||
Payables and other current liabilities | 36 | 43 | ||||
Other long-term liabilities | 139 | 162 | ||||
Total income taxes payable | 175 | 205 | ||||
Foreign Country [Member] | ||||||
Operating Loss Carryforwards [Line Items] | ||||||
Operating Loss Carryforwards, Valuation Allowance | 262 | |||||
Operating Loss Carryforwards | 2,100 | |||||
Net operating loss carryforwards with expiration date | $ 23 | |||||
Expiring period of net operating loss carryforwards, minimum (in years) | 1 year | |||||
Expiring period of net operating loss carryforwards, maximum (in years) | 20 years | |||||
Net operating loss carryforwards without expiration date | $ 2,100 | |||||
Foreign tax credit carryforwards available to reduce possible future domestic income taxes | 75 | |||||
Foreign Country [Member] | Solutia [Member] | ||||||
Operating Loss Carryforwards [Line Items] | ||||||
Tax Credit Carryforward, Valuation Allowance | 45 | |||||
United States [Member] | ||||||
Operating Loss Carryforwards [Line Items] | ||||||
Operating Loss Carryforwards, Valuation Allowance | 24 | |||||
Operating Loss Carryforwards | 8 | |||||
Tax Credit Carryforward, Valuation Allowance | 72 | |||||
2017 Tax Reform [Abstract] | ||||||
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Amount | 517 | |||||
Effective Income Tax Rate Reconciliation, Change in Deferred Tax Assets Valuation Allowance, Amount | $ 72 | |||||
State and Local Jurisdiction [Member] | Solutia [Member] | ||||||
Operating Loss Carryforwards [Line Items] | ||||||
Operating Loss Carryforwards, Valuation Allowance | $ 47 | |||||
Previously Reported [Member] | ||||||
Deferred tax assets [Abstract] | ||||||
Net operating loss carryforwards | 708 | |||||
Less: Valuation allowance | 466 | |||||
Deferred tax liabilities [Abstract] | ||||||
Investments | (274) | |||||
Accounting Changes and Error Corrections [Abstract] | ||||||
Net operating loss carryforwards | 708 | |||||
Deferred Tax Assets, Valuation Allowance | 466 | |||||
Deferred Tax Liabilities, Investments | $ 274 | |||||
[1] | A one-time transition tax of $71 million on deferred foreign income tax is included for 2017. | |||||
[2] | Includes a one-time benefit of $517 million primarily due to the remeasurement of certain net deferred tax liabilities using the lower U.S. corporate income tax rate and a one-time $72 million valuation allowance on deferred tax assets for foreign tax credit carryforwards for 2017. | |||||
[3] | Includes a one-time net benefit primarily due to the remeasurement of certain net deferred tax liabilities using the lower U.S. corporate income tax rate partially offset by the transition tax on deferred foreign income and changes in the valuation of deferred tax assets associated with tax law changes and the tax impact from intercompany reorganization activities in 2017 and a net incremental adjustment to those amounts under the Tax Reform Act in 2018 and 2019. | |||||
[4] | Revised from Note 7, "Income Taxes" , to the Company's 2018 Annual Report on Form 10-K, which reported net operating loss carryforwards as $708 million , valuation allowance as $466 million , and investments as $(274) million . |
INCOME TAXES Part 2 (Details)
INCOME TAXES Part 2 (Details) - USD ($) $ in Millions | 12 Months Ended | ||||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||||
United States [Member] | |||||||
Reconciliation of beginning and ending amounts of unrecognized tax benefits [Roll Forward] | |||||||
Beginning Balance | $ 182 | [1] | $ 142 | [1] | $ 114 | ||
Unrecognized Tax Benefits, Increase Resulting from Current Period Tax Positions | 22 | 44 | 29 | ||||
Lapse of statute of limitations | (2) | (4) | (1) | ||||
Ending Balance | [1] | 202 | 182 | 142 | |||
Reconciliation of beginning and ending amounts of accrued interest related to unrecognized tax benefits [Roll Forward] | |||||||
Unrecognized Tax Benefits, Interest on Income Taxes Accrued | 13 | 10 | 6 | $ 4 | |||
Unrecognized Tax Benefits, Interest on Income Taxes Expense | 5 | 4 | 3 | ||||
Interest income, net of tax associated with expiration of statute of limitations | $ (2) | 0 | $ (1) | ||||
Maximum [Member] | |||||||
Reconciliation of beginning and ending amounts of accrued interest related to unrecognized tax benefits [Roll Forward] | |||||||
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | $ 28 | ||||||
[1] | All of the unrecognized tax benefits would, if recognized, impact the Company's effective tax rate. |
BORROWINGS Part 1 (Details)
BORROWINGS Part 1 (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Debt Instrument [Line Items] | ||||
Early debt extinguishment and other related costs | $ 0 | $ 7 | $ 0 | |
Total borrowings | 5,782 | 6,168 | ||
Borrowings due within one year | 171 | 243 | ||
Long-term borrowings | $ 5,611 | 5,925 | ||
5.5% notes due November 2019 [Member] | ||||
Debt Instrument [Line Items] | ||||
Stated Interest Rate (in hundredths) | 5.50% | |||
Maturity Date | 2019 | |||
Extinguishment of Debt, Amount | 250 | |||
2.7% notes due January 2020 [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt | 250 | |||
Borrowings due within one year | $ 0 | |||
Stated Interest Rate (in hundredths) | 2.70% | |||
Maturity Date | 2020 | |||
Extinguishment of Debt, Amount | $ 250 | 550 | ||
4.5% debentures due January 2021 [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt | $ 185 | 185 | ||
Stated Interest Rate (in hundredths) | 4.50% | |||
Maturity Date | 2021 | |||
3.5% Notes Due Dec 2021 [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt | $ 298 | 297 | ||
Principal amount | 300 | |||
Stated Interest Rate (in hundredths) | 3.50% | |||
Maturity Date | 2021 | |||
3.6% notes due August 2022 [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt | $ 741 | 739 | ||
Stated Interest Rate (in hundredths) | 3.60% | |||
Maturity Date | 2022 | |||
1.50% notes due May 2023 [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt | [1] | $ 840 | 855 | |
Stated Interest Rate (in hundredths) | 1.50% | |||
Maturity Date | 2023 | |||
7 1/4% debentures due January 2024 [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt | $ 198 | 197 | ||
Stated Interest Rate (in hundredths) | 7.25% | |||
Maturity Date | 2024 | |||
7 5/8% debentures due June 2024 [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt | $ 43 | 43 | ||
Stated Interest Rate (in hundredths) | 7.625% | |||
Maturity Date | 2024 | |||
3.8% notes due March 2025 [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt | $ 695 | 691 | ||
Stated Interest Rate (in hundredths) | 3.80% | |||
Maturity Date | 2025 | |||
1.875% notes due November 2026 [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt | [1] | $ 556 | 566 | |
Stated Interest Rate (in hundredths) | 1.875% | |||
Maturity Date | 2026 | |||
7.60% debentures due February 2027 [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt | $ 195 | 195 | ||
Stated Interest Rate (in hundredths) | 7.60% | |||
Maturity Date | 2027 | |||
4.5% Notes Due Dec 2028 [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt | $ 493 | 492 | ||
Principal amount | 500 | |||
Stated Interest Rate (in hundredths) | 4.50% | |||
Maturity Date | 2028 | |||
4.8% notes due September 2042 [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt | $ 493 | 493 | ||
Stated Interest Rate (in hundredths) | 4.80% | |||
Maturity Date | 2042 | |||
4.65% notes due October 2044 [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt | $ 874 | 872 | ||
Stated Interest Rate (in hundredths) | 4.65% | |||
Maturity Date | 2044 | |||
Commercial paper and short-term borrowings [Member] | ||||
Debt Instrument [Line Items] | ||||
Borrowings due within one year | $ 171 | 243 | ||
Line of Credit [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt | $ 0 | 50 | ||
Various Debt Instruments [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Repurchased Face Amount | 800 | |||
Redemption Premium | 6 | |||
Early debt extinguishment and other related costs | 7 | |||
Booked value of debt extinguished | 799 | |||
Repayments of Debt | 806 | |||
Proceeds from Issuance of Debt | $ 789 | |||
[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)
BORROWINGS Part 2 (Details) € in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2019EUR (€) | |
Credit Facilities [Abstract] | |||
Borrowings due within one year | $ 171 | $ 243 | |
Revolving Credit Facility [Member] | |||
Credit Facilities [Abstract] | |||
Line of Credit Facility, Current Borrowing Capacity | 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] | |||
Debt, Weighted Average Interest Rate | 2.03% | 2.91% | 2.03% |
Commercial Paper Borrowings | $ 170 | $ 130 | |
Accounts Receivable Facility | |||
Credit Facilities [Abstract] | |||
Line of Credit Facility, Current Borrowing Capacity | 250 | ||
Line of Credit Facility, Maximum Month-end Outstanding Amount | $ 0 | $ 50 | |
Debt, Weighted Average Interest Rate | 3.39% | ||
Line of Credit Facility, Expiration Date | Apr. 30, 2020 | ||
Factoring facilities [Member] | |||
Credit Facilities [Abstract] | |||
Line of Credit Facility, Current Borrowing Capacity | $ 163 | € 150 | |
Debt, Weighted Average Interest Rate | 1.70% | ||
Borrowings due within one year | $ 112 |
BORROWINGS BORROWINGS Part 3 (D
BORROWINGS BORROWINGS Part 3 (Details) Fair Value - Fair Value, Recurring [Member] - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Instrument, Fair Value Disclosure | $ 0 | $ 0 |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Instrument, Fair Value Disclosure | 6,275 | 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 | 12 Months Ended | |||||||||
Dec. 31, 2019USD ($)MMBTUbbl | Dec. 31, 2019EUR (€) | Dec. 31, 2018EUR (€) | Dec. 31, 2019EUR (€)MMBTUbbl | Dec. 31, 2018USD ($)MMBTUbbl | Dec. 31, 2018EUR (€)MMBTUbbl | 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 | € 630 | € 263 | ||||||||
Commodity Contract [Member] | Cash Flow Hedging [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Derivative, Nonmonetary Notional Amount | bbl | 1 | 1 | 5 | 5 | ||||||
Energy Related Derivative [Member] | Cash Flow Hedging [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Derivative, Nonmonetary Notional Amount | MMBTU | 27 | 27 | 40 | 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] | ||||||||||
Principal 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] | ||||||||||
Principal amount | $ 320 | € 266 | ||||||||
Notes Due January 2024 [Member] | Cross Currency Interest Rate Contract [Member] | Euro Member Countries, Euro | Net Investment Hedging [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Principal 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] | ||||||||||
Principal amount | 120 | 104 | ||||||||
Notes Due February 2027 [Member] | Cross Currency Interest Rate Contract [Member] | Euro Member Countries, Euro | Net Investment Hedging [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Principal amount | $ 190 | € 165 | ||||||||
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 | € 1,243 | € 1,241 |
DERIVATIVE AND NON-DERIVATIVE_4
DERIVATIVE AND NON-DERIVATIVE FINANCIAL INSTRUMENTS Part 2 (Details) € in Millions | 12 Months Ended | ||||
Dec. 31, 2019USD ($) | Dec. 31, 2019EUR (€) | Dec. 31, 2018EUR (€) | Dec. 31, 2018USD ($) | ||
Fair Value, Inputs, Level 1 [Member] | Fair Value, Recurring [Member] | |||||
Derivative Assets [Abstract] | |||||
Derivative Asset, Fair Value, Gross Asset | $ 0 | $ 0 | |||
Derivative Liabilities [Abstract] | |||||
Derivative Liability, Fair Value, Gross Liability | 0 | 0 | |||
Derivative, Fair Value, Net | 0 | 0 | |||
Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | |||||
Derivative Assets [Abstract] | |||||
Derivative Asset, Fair Value, Gross Asset | 84,000,000 | 50,000,000 | |||
Derivative Liabilities [Abstract] | |||||
Derivative Liability, Fair Value, Gross Liability | 32,000,000 | 33,000,000 | |||
Derivative, Fair Value, Net | 52,000,000 | 17,000,000 | |||
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] | |||||
Derivative Assets, Cash Flow Hedge, Fair Value | 0 | 4,000,000 | |||
Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | Commodity Contract [Member] | Designated as Hedging Instrument [Member] | Other Noncurrent Assets [Member] | |||||
Derivative Assets [Abstract] | |||||
Derivative Assets, Cash Flow Hedge, Fair Value | 0 | 0 | |||
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] | |||||
Derivative Liability, Cash Flow Hedge, Fair Value | 26,000,000 | 24,000,000 | |||
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] | |||||
Derivative Liability, Cash Flow Hedge, Fair Value | 2,000,000 | 5,000,000 | |||
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] | |||||
Derivative Assets, Cash Flow Hedge, Fair Value | 13,000,000 | 15,000,000 | |||
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] | |||||
Derivative Assets, Cash Flow Hedge, Fair Value | 2,000,000 | 4,000,000 | |||
Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | Foreign Exchange Contract [Member] | Designated as Hedging Instrument [Member] | Other Current Liabilities [Member] | |||||
Derivative Assets [Abstract] | |||||
Derivative Assets, Cash Flow Hedge, Fair Value | 1,000,000 | 0 | |||
Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | Foreign Exchange Contract [Member] | Designated as Hedging Instrument [Member] | Other Noncurrent Liabilities [Member] | |||||
Derivative Assets [Abstract] | |||||
Derivative Assets, Cash Flow Hedge, Fair Value | 2,000,000 | 0 | |||
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 | 1,000,000 | 1,000,000 | |||
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 | 1,000,000 | 4,000,000 | |||
Fair Value, Inputs, Level 3 [Member] | Fair Value, Recurring [Member] | |||||
Derivative Assets [Abstract] | |||||
Derivative Asset, Fair Value, Gross Asset | 0 | 0 | |||
Derivative Liabilities [Abstract] | |||||
Derivative Liability, Fair Value, Gross Liability | 0 | 0 | |||
Derivative, Fair Value, Net | 0 | 0 | |||
Fair Value Hedging [Member] | Interest Rate Contract [Member] | |||||
Non-Derivatives, Carrying Value [Line Items] | |||||
Hedged Liability, Discontinued Fair Value Hedge, Cumulative Increase (Decrease) | (7,000,000) | (7,000,000) | |||
Hedged Liability, Fair Value Hedge | [1] | 763,000,000 | 759,000,000 | ||
Hedged Liability, Fair Value Hedge, Cumulative Increase (Decrease) | [1] | (7,000,000) | (12,000,000) | ||
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 | 68,000,000 | $ 26,000,000 | |||
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 [Line Items] | |||||
Notional Amount of Nonderivative Instruments | $ 1,400,000,000 | € 1,243 | € 1,241 | ||
[1] | At both December 31, 2019 and 2018 , the cumulative amount of fair value hedging loss adjustment remaining for hedged liabilities for which hedge accounting has been discontinued was $7 million . |
DERIVATIVE AND NON-DERIVATIVE_5
DERIVATIVE AND NON-DERIVATIVE FINANCIAL INSTRUMENTS Part 3 (Details) € in Millions | 3 Months Ended | 12 Months Ended | ||||||||||||
Dec. 31, 2019USD ($) | Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2019EUR (€) | Dec. 31, 2018USD ($) | Dec. 31, 2018EUR (€) | Dec. 31, 2017USD ($) | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||||||||
Sales | $ 2,205,000,000 | $ 2,325,000,000 | $ 2,363,000,000 | $ 2,380,000,000 | $ 2,376,000,000 | $ 2,547,000,000 | $ 2,621,000,000 | $ 2,607,000,000 | $ 9,273,000,000 | $ 10,151,000,000 | $ 9,549,000,000 | |||
Cost of sales | 7,039,000,000 | 7,672,000,000 | 7,186,000,000 | |||||||||||
Interest Income (Expense), Net | (218,000,000) | (235,000,000) | (241,000,000) | |||||||||||
ASU 2017-12 Transition [Abstract] | ||||||||||||||
Unrealized Gains (Losses) on Derivative Instruments | (14,000,000) | [1] | 7,000,000 | |||||||||||
Other Comprehensive Income (Loss), Non-derivatives Qualifying as Hedges, before Tax [Abstract] | ||||||||||||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, before Tax | 45,000,000 | (13,000,000) | 85,000,000 | |||||||||||
Summary of Derivative Instruments [Abstract] | ||||||||||||||
Monetized positions and mark to market net losses in accumulated other comprehensive income before tax | (50,000,000) | $ (112,000,000) | (50,000,000) | (112,000,000) | ||||||||||
Price Risk Cash Flow Hedge Unrealized Loss to be Reclassified During Next 12 Months | $ 24,000,000 | 24,000,000 | ||||||||||||
Early debt extinguishment and other related costs | 0 | 7,000,000 | $ 0 | |||||||||||
Commodity Contract [Member] | Cash Flow Hedging [Member] | ||||||||||||||
ASU 2017-12 Transition [Abstract] | ||||||||||||||
Unrealized Gains (Losses) on Derivative Instruments | (2,000,000) | 0 | ||||||||||||
Summary of Derivative Instruments [Abstract] | ||||||||||||||
Loss on Cash Flow Hedge Ineffectiveness | 0 | 0 | ||||||||||||
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 Other Comprehensive Income, Effective Portion, Net Total | (40,000,000) | (3,000,000) | ||||||||||||
Foreign Exchange Contract [Member] | Cash Flow Hedging [Member] | ||||||||||||||
ASU 2017-12 Transition [Abstract] | ||||||||||||||
Unrealized Gains (Losses) on Derivative Instruments | (5,000,000) | 3,000,000 | ||||||||||||
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 Other Comprehensive Income, Effective Portion, Net Total | 26,000,000 | 29,000,000 | ||||||||||||
Interest Rate Swap [Member] | Cash Flow Hedging [Member] | ||||||||||||||
ASU 2017-12 Transition [Abstract] | ||||||||||||||
Unrealized Gains (Losses) on Derivative Instruments | 4,000,000 | 4,000,000 | ||||||||||||
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 Other Comprehensive Income, Effective Portion, Net Total | (6,000,000) | (5,000,000) | ||||||||||||
Interest Rate Contract [Member] | Fair Value Hedging [Member] | ||||||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||||||||
Change in Unrealized Gain (Loss) on Hedged Item in Fair Value Hedge | 1,000,000 | 0 | ||||||||||||
Interest Rate Contract [Member] | Fair Value Hedging [Member] | Net Interest Expense | ||||||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||||||||
Gain (Loss) on Fair Value Hedges Recognized in Earnings | (1,000,000) | 0 | ||||||||||||
Foreign Exchange [Member] | Net Investment Hedging [Member] | ||||||||||||||
Other Comprehensive Income (Loss), Non-derivatives Qualifying as Hedges, before Tax [Abstract] | ||||||||||||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, before Tax | 26,000,000 | 67,000,000 | ||||||||||||
Not Designated as Hedging Instrument [Member] | ||||||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||||||||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | (2,000,000) | (13,000,000) | ||||||||||||
Cross Currency Interest Rate Contract [Member] | Net Investment Hedging [Member] | ||||||||||||||
Other Comprehensive Income (Loss), Non-derivatives Qualifying as Hedges, before Tax [Abstract] | ||||||||||||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, before Tax | 19,000,000 | 26,000,000 | ||||||||||||
Summary of Derivative Instruments [Abstract] | ||||||||||||||
OCI, Derivative Qualifying as Hedge, Excluded Component | 23,000,000 | 0 | ||||||||||||
Various Debt Instruments [Member] | ||||||||||||||
Summary of Derivative Instruments [Abstract] | ||||||||||||||
Early debt extinguishment and other related costs | $ 7,000,000 | |||||||||||||
Euro Member Countries, Euro | Designated as Hedging Instrument [Member] | 1.50% Notes Due 2023 and 1.875% Notes Due 2026 [Member] | Net Investment Hedging [Member] | ||||||||||||||
Summary of Derivative Instruments [Abstract] | ||||||||||||||
Notional Amount of Nonderivative Instruments | $ 1,400,000,000 | € 1,243 | € 1,241 | |||||||||||
[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 $9 million reclassification of stranded tax benefit from AOCI to retained earnings. See Note 1, "Significant Accounting Policies" , for additional information. |
RETIREMENT PLANS (Details)
RETIREMENT PLANS (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Change in projected benefit obligation [Roll Forward] | ||||
Actuarial (gain) loss | $ (143,000,000) | $ (99,000,000) | $ 21,000,000 | |
Amortization of: [Abstract] | ||||
Prior service credit | $ 39,000,000 | $ 40,000,000 | 43,000,000 | |
Post Retirement Welfare Plans [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||||
Defined Benefit Plan, Health Care Cost Trend Rate Assumed, Next Fiscal Year | 6.50% | |||
Defined Benefit Plan, Plan Assets, Allocations [Abstract] | ||||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 100.00% | |||
Defined Benefit Plan, Actual Plan Asset Allocations (in hundredths) | 100.00% | 100.00% | ||
Change in projected benefit obligation [Roll Forward] | ||||
Benefit obligation, beginning of year | $ 672,000,000 | $ 738,000,000 | ||
Service cost | 0 | 0 | 3,000,000 | |
Interest cost | 25,000,000 | 22,000,000 | 23,000,000 | |
Actuarial (gain) loss | 71,000,000 | (33,000,000) | ||
Plan participants' contributions | 10,000,000 | 11,000,000 | ||
Effect of currency exchange | 1,000,000 | (1,000,000) | ||
Benefits paid | (63,000,000) | (65,000,000) | ||
Benefit obligation, end of year | 716,000,000 | 672,000,000 | 738,000,000 | |
Change in plan assets [Roll Forward] | ||||
Fair value of plan assets, beginning of year | 135,000,000 | 148,000,000 | ||
Actual return on plan assets | 27,000,000 | (6,000,000) | ||
Effect of currency exchange | 0 | 0 | ||
Company contributions | 42,000,000 | 43,000,000 | ||
Reserve for third party contributions | (12,000,000) | 4,000,000 | ||
Plan participants' contributions | 10,000,000 | 11,000,000 | ||
Benefits paid | (63,000,000) | (65,000,000) | ||
Fair value of plan assets, end of year | 139,000,000 | 135,000,000 | 148,000,000 | |
Funded status at end of year | (577,000,000) | (537,000,000) | ||
Amounts recognized in the Consolidated Statements of Financial Position consist of [Abstract] | ||||
Other noncurrent asset | 50,000,000 | 41,000,000 | ||
Current liabilities | (47,000,000) | (45,000,000) | ||
Post-employment obligations | (580,000,000) | (533,000,000) | ||
Net amount recognized, end of year | (577,000,000) | (537,000,000) | ||
Amounts recognized in accumulated other comprehensive income consist of [Abstract] | ||||
Prior service (credit) cost | (143,000,000) | (182,000,000) | ||
Defined Benefit Plan, Expected Amortization of Prior Service Cost (Credit), Next Fiscal Year | (38,000,000) | |||
Components of net periodic benefit cost [Abstract] | ||||
Service cost | 0 | 0 | 3,000,000 | |
Interest cost | 25,000,000 | 22,000,000 | 23,000,000 | |
Expected return on plan assets | (5,000,000) | (5,000,000) | (5,000,000) | |
Amortization of: [Abstract] | ||||
Prior service (credit) cost | (39,000,000) | (40,000,000) | (40,000,000) | |
Mark-to-market adjustment | 61,000,000 | (26,000,000) | 23,000,000 | |
Net periodic benefit cost | 42,000,000 | (49,000,000) | 4,000,000 | |
Amortization of: [Abstract] | ||||
Prior service credit | (39,000,000) | (40,000,000) | (40,000,000) | |
Total | $ (39,000,000) | $ (40,000,000) | $ (40,000,000) | |
Weighted-average assumptions used to determine benefit obligations for years ended [Abstract] | ||||
Discount rate (in hundredths) | 3.21% | 4.26% | 3.54% | |
Rate of compensation increase (in hundredths) | 3.25% | 3.25% | 3.25% | |
Health care cost trend [Abstract] | ||||
Initial (in hundredths) | 6.50% | 6.50% | 6.75% | |
Decreasing to ultimate trend of (in hundredths) | 5.00% | 5.00% | 5.00% | |
Weighted-average assumptions used to determine net periodic cost for years ended [Abstract] | ||||
Discount rate ( in hundredths) | 4.26% | 3.54% | 3.91% | |
Discount rate for service costs | 4.05% | 3.28% | 4.31% | |
Discount rate for interest costs | 3.93% | 3.14% | 3.28% | |
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Expected Long-term Rate of Return on Plan Assets | 3.75% | 3.75% | 3.75% | |
Rate of compensation increase (in hundredths) | 3.25% | 3.25% | 3.25% | |
Health Care Cost Trend [Abstract] | ||||
Initial (in hundredths) | 6.50% | 6.75% | 7.00% | |
Decreasing to ultimate trend of (in hundredths) | 5.00% | 5.00% | 5.00% | |
Projected Year that reaches ultimate trend rate | 2025 | 2025 | 2021 | |
Defined Benefit Plan, Effect of One Percentage Point Increase on Service and Interest Cost Components | $ 0 | |||
Defined Benefit Plan, Year Health Care Cost Trend Rate Reaches Ultimate Trend Rate | 2026 | 2025 | 2025 | |
Defined Benefit Plan, Ultimate Health Care Cost Trend Rate | 5.00% | |||
Estimated future benefits payments [Abstract] | ||||
2020 | $ 57,000,000 | |||
2021 | 57,000,000 | |||
2022 | 53,000,000 | |||
2023 | 47,000,000 | |||
2024 | 47,000,000 | |||
2025-2029 | $ 223,000,000 | |||
Post Retirement Welfare Plans [Member] | Private Equity Securities [Member] | ||||
Defined Benefit Plan, Plan Assets, Allocations [Abstract] | ||||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 0.00% | |||
Defined Benefit Plan, Actual Plan Asset Allocations (in hundredths) | 0.00% | 0.00% | ||
Post Retirement Welfare Plans [Member] | Debt Securities [Member] | ||||
Defined Benefit Plan, Plan Assets, Allocations [Abstract] | ||||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 100.00% | |||
Defined Benefit Plan, Actual Plan Asset Allocations (in hundredths) | 100.00% | 100.00% | ||
Post Retirement Welfare Plans [Member] | Real Estate [Member] | ||||
Defined Benefit Plan, Plan Assets, Allocations [Abstract] | ||||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 0.00% | |||
Defined Benefit Plan, Actual Plan Asset Allocations (in hundredths) | 0.00% | 0.00% | ||
Post Retirement Welfare Plans [Member] | Other Investment Companies [Member] | ||||
Defined Benefit Plan, Plan Assets, Allocations [Abstract] | ||||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | [1] | 0.00% | ||
Defined Benefit Plan, Actual Plan Asset Allocations (in hundredths) | [1] | 0.00% | 0.00% | |
Voluntary employees' beneficiary association (VEBA) trust [Member] | Post Retirement Welfare Plans [Member] | ||||
Change in plan assets [Roll Forward] | ||||
Fair value of plan assets, beginning of year | $ 107,000,000 | |||
Fair value of plan assets, end of year | 111,000,000 | $ 107,000,000 | ||
Voluntary employees' beneficiary association (VEBA) trust [Member] | Post Retirement Welfare Plans [Member] | Fair Value, Inputs, Level 1 [Member] | ||||
Change in plan assets [Roll Forward] | ||||
Fair value of plan assets, beginning of year | 3,000,000 | |||
Fair value of plan assets, end of year | 0 | 3,000,000 | ||
Voluntary employees' beneficiary association (VEBA) trust [Member] | Post Retirement Welfare Plans [Member] | Fair Value, Inputs, Level 2 [Member] | ||||
Change in plan assets [Roll Forward] | ||||
Fair value of plan assets, beginning of year | 104,000,000 | |||
Fair value of plan assets, end of year | 111,000,000 | 104,000,000 | ||
Voluntary employees' beneficiary association (VEBA) trust [Member] | Post Retirement Welfare Plans [Member] | Fair Value, Inputs, Level 3 [Member] | ||||
Change in plan assets [Roll Forward] | ||||
Fair value of plan assets, beginning of year | 0 | |||
Fair value of plan assets, end of year | 0 | 0 | ||
Voluntary employees' beneficiary association (VEBA) trust [Member] | Post Retirement Welfare Plans [Member] | Cash and Cash Equivalents [Member] | ||||
Change in plan assets [Roll Forward] | ||||
Fair value of plan assets, beginning of year | [2] | 3,000,000 | ||
Fair value of plan assets, end of year | [2] | 3,000,000 | ||
Voluntary employees' beneficiary association (VEBA) trust [Member] | Post Retirement Welfare Plans [Member] | Cash and Cash Equivalents [Member] | Fair Value, Inputs, Level 1 [Member] | ||||
Change in plan assets [Roll Forward] | ||||
Fair value of plan assets, beginning of year | [2] | 3,000,000 | ||
Fair value of plan assets, end of year | [2] | 3,000,000 | ||
Voluntary employees' beneficiary association (VEBA) trust [Member] | Post Retirement Welfare Plans [Member] | Cash and Cash Equivalents [Member] | Fair Value, Inputs, Level 2 [Member] | ||||
Change in plan assets [Roll Forward] | ||||
Fair value of plan assets, beginning of year | [2] | 0 | ||
Fair value of plan assets, end of year | [2] | 0 | ||
Voluntary employees' beneficiary association (VEBA) trust [Member] | Post Retirement Welfare Plans [Member] | Cash and Cash Equivalents [Member] | Fair Value, Inputs, Level 3 [Member] | ||||
Change in plan assets [Roll Forward] | ||||
Fair value of plan assets, beginning of year | [2] | 0 | ||
Fair value of plan assets, end of year | [2] | 0 | ||
Voluntary employees' beneficiary association (VEBA) trust [Member] | Post Retirement Welfare Plans [Member] | Fixed Income (US) [Member] | Debt Securities [Member] | ||||
Change in plan assets [Roll Forward] | ||||
Fair value of plan assets, beginning of year | [3] | 78,000,000 | ||
Fair value of plan assets, end of year | [3] | 85,000,000 | 78,000,000 | |
Voluntary employees' beneficiary association (VEBA) trust [Member] | Post Retirement Welfare Plans [Member] | Fixed Income (US) [Member] | Debt Securities [Member] | Fair Value, Inputs, Level 1 [Member] | ||||
Change in plan assets [Roll Forward] | ||||
Fair value of plan assets, beginning of year | [3] | 0 | ||
Fair value of plan assets, end of year | [3] | 0 | 0 | |
Voluntary employees' beneficiary association (VEBA) trust [Member] | Post Retirement Welfare Plans [Member] | Fixed Income (US) [Member] | Debt Securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||||
Change in plan assets [Roll Forward] | ||||
Fair value of plan assets, beginning of year | [3] | 78,000,000 | ||
Fair value of plan assets, end of year | [3] | 85,000,000 | 78,000,000 | |
Voluntary employees' beneficiary association (VEBA) trust [Member] | Post Retirement Welfare Plans [Member] | Fixed Income (US) [Member] | Debt Securities [Member] | Fair Value, Inputs, Level 3 [Member] | ||||
Change in plan assets [Roll Forward] | ||||
Fair value of plan assets, beginning of year | [3] | 0 | ||
Fair value of plan assets, end of year | [3] | 0 | 0 | |
Voluntary employees' beneficiary association (VEBA) trust [Member] | Post Retirement Welfare Plans [Member] | Fixed Income (Non-U.S.) [Member] | Debt Securities [Member] | ||||
Change in plan assets [Roll Forward] | ||||
Fair value of plan assets, beginning of year | [3] | 26,000,000 | ||
Fair value of plan assets, end of year | [3] | 26,000,000 | 26,000,000 | |
Voluntary employees' beneficiary association (VEBA) trust [Member] | Post Retirement Welfare Plans [Member] | Fixed Income (Non-U.S.) [Member] | Debt Securities [Member] | Fair Value, Inputs, Level 1 [Member] | ||||
Change in plan assets [Roll Forward] | ||||
Fair value of plan assets, beginning of year | [3] | 0 | ||
Fair value of plan assets, end of year | [3] | 0 | 0 | |
Voluntary employees' beneficiary association (VEBA) trust [Member] | Post Retirement Welfare Plans [Member] | Fixed Income (Non-U.S.) [Member] | Debt Securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||||
Change in plan assets [Roll Forward] | ||||
Fair value of plan assets, beginning of year | [3] | 26,000,000 | ||
Fair value of plan assets, end of year | [3] | 26,000,000 | 26,000,000 | |
Voluntary employees' beneficiary association (VEBA) trust [Member] | Post Retirement Welfare Plans [Member] | Fixed Income (Non-U.S.) [Member] | Debt Securities [Member] | Fair Value, Inputs, Level 3 [Member] | ||||
Change in plan assets [Roll Forward] | ||||
Fair value of plan assets, beginning of year | [3] | 0 | ||
Fair value of plan assets, end of year | [3] | $ 0 | $ 0 | |
Employee stock ownership plan which is a component of Eastman Investment Plan EIP/ESOP [Member] | ||||
Defined Contribution Investment Plan and Employee Stock Ownership Plan | ||||
Anticipated percentage of employer contribution to the plan for all U.S. employees (in hundredths) | 5.00% | |||
Allocated shares in the ESOP (in shares) | 2,076,203 | 2,119,614 | 2,130,176 | |
Percentage of an employee's remuneration that is being matched by the employer (in hundredths) | 7.00% | |||
Percentage of company match of the first seven percent of employee's compensation contributed to the plan (in hundredths) | 50.00% | |||
Charges for domestic contributions to the Defined Contribution plans | $ 68,000,000 | $ 67,000,000 | $ 64,000,000 | |
Foreign Plan [Member] | ||||
Defined Benefit Plan, Pension Plan with Project Benefit Obligation in Excess of Plan Assets [Abstract] | ||||
Projected benefit obligation | 972,000,000 | 840,000,000 | ||
Fair value of plan assets | 820,000,000 | 713,000,000 | ||
Defined Benefit Plan, Plan with Accumulated Benefit Obligation in Excess of Plan Assets [Abstract] | ||||
Projected benefit obligation | 651,000,000 | 568,000,000 | ||
Accumulated benefit obligation | 625,000,000 | 547,000,000 | ||
Fair value of plan assets | 513,000,000 | 448,000,000 | ||
Change in plan assets [Roll Forward] | ||||
Fair value of plan assets, beginning of year | 713,000,000 | |||
Fair value of plan assets, end of year | 820,000,000 | 713,000,000 | ||
Foreign Plan [Member] | Investments measured at net asset value [Member] | ||||
Change in plan assets [Roll Forward] | ||||
Fair value of plan assets, beginning of year | [4] | 609,000,000 | ||
Fair value of plan assets, end of year | [4] | 691,000,000 | 609,000,000 | |
Foreign Plan [Member] | Cash and Cash Equivalents [Member] | ||||
Change in plan assets [Roll Forward] | ||||
Fair value of plan assets, beginning of year | [2] | 53,000,000 | ||
Fair value of plan assets, end of year | [2] | 72,000,000 | 53,000,000 | |
Foreign Plan [Member] | Cash and Cash Equivalents [Member] | Fair Value, Inputs, Level 1 [Member] | ||||
Change in plan assets [Roll Forward] | ||||
Fair value of plan assets, beginning of year | [2] | 53,000,000 | ||
Fair value of plan assets, end of year | [2] | 72,000,000 | 53,000,000 | |
Foreign Plan [Member] | Cash and Cash Equivalents [Member] | Fair Value, Inputs, Level 2 [Member] | ||||
Change in plan assets [Roll Forward] | ||||
Fair value of plan assets, beginning of year | [2] | 0 | ||
Fair value of plan assets, end of year | [2] | 0 | 0 | |
Foreign Plan [Member] | Cash and Cash Equivalents [Member] | Fair Value, Inputs, Level 3 [Member] | ||||
Change in plan assets [Roll Forward] | ||||
Fair value of plan assets, beginning of year | [2] | 0 | ||
Fair value of plan assets, end of year | [2] | 0 | 0 | |
Foreign Plan [Member] | United States [Member] | Public Equity Funds [Member] | ||||
Change in plan assets [Roll Forward] | ||||
Fair value of plan assets, beginning of year | [5] | 0 | ||
Fair value of plan assets, end of year | [5] | 0 | 0 | |
Foreign Plan [Member] | United States [Member] | Public Equity Funds [Member] | Fair Value, Inputs, Level 1 [Member] | ||||
Change in plan assets [Roll Forward] | ||||
Fair value of plan assets, beginning of year | [5] | 0 | ||
Fair value of plan assets, end of year | [5] | 0 | 0 | |
Foreign Plan [Member] | United States [Member] | Public Equity Funds [Member] | Fair Value, Inputs, Level 2 [Member] | ||||
Change in plan assets [Roll Forward] | ||||
Fair value of plan assets, beginning of year | [5] | 0 | ||
Fair value of plan assets, end of year | [5] | 0 | 0 | |
Foreign Plan [Member] | United States [Member] | Public Equity Funds [Member] | Fair Value, Inputs, Level 3 [Member] | ||||
Change in plan assets [Roll Forward] | ||||
Fair value of plan assets, beginning of year | [5] | 0 | ||
Fair value of plan assets, end of year | [5] | 0 | 0 | |
Foreign Plan [Member] | Other Alternative Investments [Member] | ||||
Change in plan assets [Roll Forward] | ||||
Fair value of plan assets, beginning of year | [6] | 51,000,000 | ||
Fair value of plan assets, end of year | [6] | 57,000,000 | 51,000,000 | |
Foreign Plan [Member] | Other Alternative Investments [Member] | Fair Value, Inputs, Level 1 [Member] | ||||
Change in plan assets [Roll Forward] | ||||
Fair value of plan assets, beginning of year | [6] | 0 | ||
Fair value of plan assets, end of year | [6] | 0 | 0 | |
Foreign Plan [Member] | Other Alternative Investments [Member] | Fair Value, Inputs, Level 2 [Member] | ||||
Change in plan assets [Roll Forward] | ||||
Fair value of plan assets, beginning of year | [6] | 0 | ||
Fair value of plan assets, end of year | [6] | 0 | 0 | |
Foreign Plan [Member] | Other Alternative Investments [Member] | Fair Value, Inputs, Level 3 [Member] | ||||
Change in plan assets [Roll Forward] | ||||
Fair value of plan assets, beginning of year | [6] | 51,000,000 | ||
Fair value of plan assets, end of year | [6] | 57,000,000 | 51,000,000 | |
Foreign Plan [Member] | Cash and cash equivalents, public equity, and other investments [Member] | ||||
Change in plan assets [Roll Forward] | ||||
Fair value of plan assets, beginning of year | 104,000,000 | |||
Fair value of plan assets, end of year | 129,000,000 | 104,000,000 | ||
Foreign Plan [Member] | Cash and cash equivalents, public equity, and other investments [Member] | Fair Value, Inputs, Level 1 [Member] | ||||
Change in plan assets [Roll Forward] | ||||
Fair value of plan assets, beginning of year | 53,000,000 | |||
Fair value of plan assets, end of year | 72,000,000 | 53,000,000 | ||
Foreign Plan [Member] | Cash and cash equivalents, public equity, and other investments [Member] | Fair Value, Inputs, Level 2 [Member] | ||||
Change in plan assets [Roll Forward] | ||||
Fair value of plan assets, beginning of year | 0 | |||
Fair value of plan assets, end of year | 0 | 0 | ||
Foreign Plan [Member] | Cash and cash equivalents, public equity, and other investments [Member] | Fair Value, Inputs, Level 3 [Member] | ||||
Change in plan assets [Roll Forward] | ||||
Fair value of plan assets, beginning of year | 51,000,000 | |||
Fair value of plan assets, end of year | $ 57,000,000 | $ 51,000,000 | ||
Foreign Plan [Member] | Pension Plan [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||||
Expected Long-Term Rate of Return on Plan Assets | 4.26% | 4.49% | ||
Defined Benefit Plan, Plan Assets, Allocations [Abstract] | ||||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 100.00% | |||
Defined Benefit Plan, Actual Plan Asset Allocations (in hundredths) | 100.00% | 100.00% | ||
Change in projected benefit obligation [Roll Forward] | ||||
Benefit obligation, beginning of year | $ 840,000,000 | $ 893,000,000 | ||
Service cost | 14,000,000 | 14,000,000 | 13,000,000 | |
Interest cost | 20,000,000 | 20,000,000 | 20,000,000 | |
Actuarial (gain) loss | 113,000,000 | (20,000,000) | ||
Plan participants' contributions | 1,000,000 | 1,000,000 | ||
Effect of currency exchange | 11,000,000 | (45,000,000) | ||
Benefits paid | (27,000,000) | (23,000,000) | ||
Benefit obligation, end of year | 972,000,000 | 840,000,000 | 893,000,000 | |
Change in plan assets [Roll Forward] | ||||
Fair value of plan assets, beginning of year | 713,000,000 | 773,000,000 | ||
Actual return on plan assets | 102,000,000 | (19,000,000) | ||
Effect of currency exchange | 9,000,000 | (39,000,000) | ||
Company contributions | 22,000,000 | 20,000,000 | ||
Reserve for third party contributions | 0 | 0 | ||
Plan participants' contributions | 1,000,000 | 1,000,000 | ||
Benefits paid | (27,000,000) | (23,000,000) | ||
Fair value of plan assets, end of year | 820,000,000 | 713,000,000 | 773,000,000 | |
Funded status at end of year | (152,000,000) | (127,000,000) | ||
Amounts recognized in the Consolidated Statements of Financial Position consist of [Abstract] | ||||
Other noncurrent asset | 0 | 0 | ||
Current liabilities | (1,000,000) | (1,000,000) | ||
Post-employment obligations | (151,000,000) | (126,000,000) | ||
Net amount recognized, end of year | (152,000,000) | (127,000,000) | ||
Accumulated benefit obligation basis for all defined benefit pension plans | 919,000,000 | 796,000,000 | ||
Amounts recognized in accumulated other comprehensive income consist of [Abstract] | ||||
Prior service (credit) cost | 0 | 0 | ||
Components of net periodic benefit cost [Abstract] | ||||
Service cost | 14,000,000 | 14,000,000 | 13,000,000 | |
Interest cost | 20,000,000 | 20,000,000 | 20,000,000 | |
Expected return on plan assets | (32,000,000) | (37,000,000) | (35,000,000) | |
Amortization of: [Abstract] | ||||
Prior service (credit) cost | 0 | 1,000,000 | 1,000,000 | |
Mark-to-market adjustment | 43,000,000 | 36,000,000 | (7,000,000) | |
Net periodic benefit cost | 45,000,000 | 34,000,000 | (8,000,000) | |
Amortization of: [Abstract] | ||||
Prior service credit | 0 | 1,000,000 | 1,000,000 | |
Total | $ 0 | $ 1,000,000 | $ 1,000,000 | |
Weighted-average assumptions used to determine benefit obligations for years ended [Abstract] | ||||
Discount rate (in hundredths) | 1.56% | 2.35% | 2.25% | |
Rate of compensation increase (in hundredths) | 2.94% | 2.94% | 2.95% | |
Weighted-average assumptions used to determine net periodic cost for years ended [Abstract] | ||||
Discount rate ( in hundredths) | 2.35% | 2.25% | 2.33% | |
Discount rate for service costs | 2.35% | 2.25% | 2.33% | |
Discount rate for interest costs | 2.35% | 2.25% | 2.33% | |
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Expected Long-term Rate of Return on Plan Assets | 4.49% | 4.83% | 5.02% | |
Rate of compensation increase (in hundredths) | 2.94% | 2.95% | 2.94% | |
Estimated future benefits payments [Abstract] | ||||
2020 | $ 31,000,000 | |||
2021 | 30,000,000 | |||
2022 | 31,000,000 | |||
2023 | 34,000,000 | |||
2024 | 38,000,000 | |||
2025-2029 | 210,000,000 | |||
Foreign Plan [Member] | Pension Plan [Member] | Other Investments [Member] | Fair Value, Inputs, Level 3 [Member] | ||||
Change in plan assets [Roll Forward] | ||||
Fair value of plan assets, beginning of year | [7] | 51,000,000 | $ 51,000,000 | |
Defined benefit plan unrealized gains | [7] | 5,000,000 | 0 | |
Defined Benefit Plan, Plan Assets Level 3 Reconciliation, Increase (Decrease) for Purchase, Sale, and Settlement | [7] | 1,000,000 | ||
Fair value of plan assets, end of year | [7] | $ 57,000,000 | $ 51,000,000 | $ 51,000,000 |
Foreign Plan [Member] | Pension Plan [Member] | Private Equity Securities [Member] | ||||
Defined Benefit Plan, Plan Assets, Allocations [Abstract] | ||||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 24.00% | |||
Defined Benefit Plan, Actual Plan Asset Allocations (in hundredths) | 21.00% | 19.00% | ||
Foreign Plan [Member] | Pension Plan [Member] | Debt Securities [Member] | ||||
Defined Benefit Plan, Plan Assets, Allocations [Abstract] | ||||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 57.00% | |||
Defined Benefit Plan, Actual Plan Asset Allocations (in hundredths) | 53.00% | 54.00% | ||
Foreign Plan [Member] | Pension Plan [Member] | Real Estate [Member] | ||||
Defined Benefit Plan, Plan Assets, Allocations [Abstract] | ||||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 5.00% | |||
Defined Benefit Plan, Actual Plan Asset Allocations (in hundredths) | 8.00% | 8.00% | ||
Foreign Plan [Member] | Pension Plan [Member] | Other Investment Companies [Member] | ||||
Defined Benefit Plan, Plan Assets, Allocations [Abstract] | ||||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | [1] | 14.00% | ||
Defined Benefit Plan, Actual Plan Asset Allocations (in hundredths) | [1] | 18.00% | 19.00% | |
UNITED STATES | ||||
Defined Benefit Plan, Information about Plan Assets [Abstract] | ||||
Amount of defined benefit pension plan funded by the company | $ 0 | |||
Defined Benefit Plan, Pension Plan with Project Benefit Obligation in Excess of Plan Assets [Abstract] | ||||
Projected benefit obligation | 1,673,000,000 | $ 1,726,000,000 | ||
Fair value of plan assets | 1,512,000,000 | 1,585,000,000 | ||
Defined Benefit Plan, Plan with Accumulated Benefit Obligation in Excess of Plan Assets [Abstract] | ||||
Projected benefit obligation | 1,673,000,000 | 1,726,000,000 | ||
Accumulated benefit obligation | 1,611,000,000 | 1,667,000,000 | ||
Fair value of plan assets | 1,512,000,000 | 1,585,000,000 | ||
Change in plan assets [Roll Forward] | ||||
Fair value of plan assets, beginning of year | 1,820,000,000 | |||
Fair value of plan assets, end of year | 1,919,000,000 | 1,820,000,000 | ||
UNITED STATES | Investments measured at net asset value [Member] | ||||
Change in plan assets [Roll Forward] | ||||
Fair value of plan assets, beginning of year | [4] | 1,802,000,000 | ||
Fair value of plan assets, end of year | [4] | 1,883,000,000 | 1,802,000,000 | |
UNITED STATES | Cash and Cash Equivalents [Member] | ||||
Change in plan assets [Roll Forward] | ||||
Fair value of plan assets, beginning of year | [2] | 16,000,000 | ||
Fair value of plan assets, end of year | [2] | 35,000,000 | 16,000,000 | |
UNITED STATES | Cash and Cash Equivalents [Member] | Fair Value, Inputs, Level 1 [Member] | ||||
Change in plan assets [Roll Forward] | ||||
Fair value of plan assets, beginning of year | [2] | 16,000,000 | ||
Fair value of plan assets, end of year | [2] | 35,000,000 | 16,000,000 | |
UNITED STATES | Cash and Cash Equivalents [Member] | Fair Value, Inputs, Level 2 [Member] | ||||
Change in plan assets [Roll Forward] | ||||
Fair value of plan assets, beginning of year | [2] | 0 | ||
Fair value of plan assets, end of year | [2] | 0 | 0 | |
UNITED STATES | Cash and Cash Equivalents [Member] | Fair Value, Inputs, Level 3 [Member] | ||||
Change in plan assets [Roll Forward] | ||||
Fair value of plan assets, beginning of year | [2] | 0 | ||
Fair value of plan assets, end of year | [2] | 0 | 0 | |
UNITED STATES | United States [Member] | Public Equity Funds [Member] | ||||
Change in plan assets [Roll Forward] | ||||
Fair value of plan assets, beginning of year | [5] | 2,000,000 | ||
Fair value of plan assets, end of year | [5] | 1,000,000 | 2,000,000 | |
UNITED STATES | United States [Member] | Public Equity Funds [Member] | Fair Value, Inputs, Level 1 [Member] | ||||
Change in plan assets [Roll Forward] | ||||
Fair value of plan assets, beginning of year | [5] | 2,000,000 | ||
Fair value of plan assets, end of year | [5] | 1,000,000 | 2,000,000 | |
UNITED STATES | United States [Member] | Public Equity Funds [Member] | Fair Value, Inputs, Level 2 [Member] | ||||
Change in plan assets [Roll Forward] | ||||
Fair value of plan assets, beginning of year | [5] | 0 | ||
Fair value of plan assets, end of year | [5] | 0 | 0 | |
UNITED STATES | United States [Member] | Public Equity Funds [Member] | Fair Value, Inputs, Level 3 [Member] | ||||
Change in plan assets [Roll Forward] | ||||
Fair value of plan assets, beginning of year | [5] | 0 | ||
Fair value of plan assets, end of year | [5] | 0 | 0 | |
UNITED STATES | Other Alternative Investments [Member] | ||||
Change in plan assets [Roll Forward] | ||||
Fair value of plan assets, beginning of year | [6] | 0 | ||
Fair value of plan assets, end of year | [6] | 0 | 0 | |
UNITED STATES | Other Alternative Investments [Member] | Fair Value, Inputs, Level 1 [Member] | ||||
Change in plan assets [Roll Forward] | ||||
Fair value of plan assets, beginning of year | [6] | 0 | ||
Fair value of plan assets, end of year | [6] | 0 | 0 | |
UNITED STATES | Other Alternative Investments [Member] | Fair Value, Inputs, Level 2 [Member] | ||||
Change in plan assets [Roll Forward] | ||||
Fair value of plan assets, beginning of year | [6] | 0 | ||
Fair value of plan assets, end of year | [6] | 0 | 0 | |
UNITED STATES | Other Alternative Investments [Member] | Fair Value, Inputs, Level 3 [Member] | ||||
Change in plan assets [Roll Forward] | ||||
Fair value of plan assets, beginning of year | [6] | 0 | ||
Fair value of plan assets, end of year | [6] | 0 | 0 | |
UNITED STATES | Cash and cash equivalents, public equity, and other investments [Member] | ||||
Change in plan assets [Roll Forward] | ||||
Fair value of plan assets, beginning of year | 18,000,000 | |||
Fair value of plan assets, end of year | 36,000,000 | 18,000,000 | ||
UNITED STATES | Cash and cash equivalents, public equity, and other investments [Member] | Fair Value, Inputs, Level 1 [Member] | ||||
Change in plan assets [Roll Forward] | ||||
Fair value of plan assets, beginning of year | 18,000,000 | |||
Fair value of plan assets, end of year | 36,000,000 | 18,000,000 | ||
UNITED STATES | Cash and cash equivalents, public equity, and other investments [Member] | Fair Value, Inputs, Level 2 [Member] | ||||
Change in plan assets [Roll Forward] | ||||
Fair value of plan assets, beginning of year | 0 | |||
Fair value of plan assets, end of year | 0 | 0 | ||
UNITED STATES | Cash and cash equivalents, public equity, and other investments [Member] | Fair Value, Inputs, Level 3 [Member] | ||||
Change in plan assets [Roll Forward] | ||||
Fair value of plan assets, beginning of year | 0 | |||
Fair value of plan assets, end of year | $ 0 | $ 0 | ||
UNITED STATES | Pension Plan [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||||
Expected Long-Term Rate of Return on Plan Assets | 7.37% | 7.43% | ||
Defined Benefit Plan, Plan Assets, Allocations [Abstract] | ||||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 100.00% | |||
Defined Benefit Plan, Actual Plan Asset Allocations (in hundredths) | 100.00% | 100.00% | ||
Change in projected benefit obligation [Roll Forward] | ||||
Benefit obligation, beginning of year | $ 1,959,000,000 | $ 2,154,000,000 | ||
Service cost | 27,000,000 | 35,000,000 | 37,000,000 | |
Interest cost | 76,000,000 | 67,000,000 | 66,000,000 | |
Actuarial (gain) loss | 200,000,000 | (119,000,000) | ||
Plan participants' contributions | 0 | 0 | ||
Effect of currency exchange | 0 | 0 | ||
Benefits paid | (195,000,000) | (178,000,000) | ||
Benefit obligation, end of year | 2,067,000,000 | 1,959,000,000 | 2,154,000,000 | |
Change in plan assets [Roll Forward] | ||||
Fair value of plan assets, beginning of year | 1,820,000,000 | 2,054,000,000 | ||
Actual return on plan assets | 289,000,000 | (61,000,000) | ||
Effect of currency exchange | 0 | 0 | ||
Company contributions | 5,000,000 | 5,000,000 | ||
Reserve for third party contributions | 0 | 0 | ||
Plan participants' contributions | 0 | 0 | ||
Benefits paid | (195,000,000) | (178,000,000) | ||
Fair value of plan assets, end of year | 1,919,000,000 | 1,820,000,000 | 2,054,000,000 | |
Funded status at end of year | (148,000,000) | (139,000,000) | ||
Amounts recognized in the Consolidated Statements of Financial Position consist of [Abstract] | ||||
Other noncurrent asset | 13,000,000 | 2,000,000 | ||
Current liabilities | (3,000,000) | (4,000,000) | ||
Post-employment obligations | (158,000,000) | (137,000,000) | ||
Net amount recognized, end of year | (148,000,000) | (139,000,000) | ||
Accumulated benefit obligation basis for all defined benefit pension plans | 2,005,000,000 | 1,900,000,000 | ||
Amounts recognized in accumulated other comprehensive income consist of [Abstract] | ||||
Prior service (credit) cost | 2,000,000 | 2,000,000 | ||
Components of net periodic benefit cost [Abstract] | ||||
Service cost | 27,000,000 | 35,000,000 | 37,000,000 | |
Interest cost | 76,000,000 | 67,000,000 | 66,000,000 | |
Expected return on plan assets | (128,000,000) | (147,000,000) | (140,000,000) | |
Amortization of: [Abstract] | ||||
Prior service (credit) cost | 0 | (1,000,000) | (4,000,000) | |
Mark-to-market adjustment | 39,000,000 | 89,000,000 | (37,000,000) | |
Net periodic benefit cost | 14,000,000 | 43,000,000 | (78,000,000) | |
Amortization of: [Abstract] | ||||
Prior service credit | 0 | (1,000,000) | (4,000,000) | |
Total | $ 0 | $ (1,000,000) | $ (4,000,000) | |
Weighted-average assumptions used to determine benefit obligations for years ended [Abstract] | ||||
Discount rate (in hundredths) | 3.25% | 4.29% | 3.57% | |
Rate of compensation increase (in hundredths) | 3.25% | 3.25% | 3.25% | |
Weighted-average assumptions used to determine net periodic cost for years ended [Abstract] | ||||
Discount rate ( in hundredths) | 4.29% | 3.57% | 3.89% | |
Discount rate for service costs | 4.32% | 3.64% | 3.89% | |
Discount rate for interest costs | 3.96% | 3.18% | 3.24% | |
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Expected Long-term Rate of Return on Plan Assets | 7.43% | 7.48% | 7.49% | |
Rate of compensation increase (in hundredths) | 3.25% | 3.25% | 3.25% | |
Estimated future benefits payments [Abstract] | ||||
2020 | $ 197,000,000 | |||
2021 | 161,000,000 | |||
2022 | 156,000,000 | |||
2023 | 151,000,000 | |||
2024 | 151,000,000 | |||
2025-2029 | $ 686,000,000 | |||
UNITED STATES | Pension Plan [Member] | Private Equity Securities [Member] | ||||
Defined Benefit Plan, Plan Assets, Allocations [Abstract] | ||||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 44.00% | |||
Defined Benefit Plan, Actual Plan Asset Allocations (in hundredths) | 50.00% | 43.00% | ||
UNITED STATES | Pension Plan [Member] | Debt Securities [Member] | ||||
Defined Benefit Plan, Plan Assets, Allocations [Abstract] | ||||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 39.00% | |||
Defined Benefit Plan, Actual Plan Asset Allocations (in hundredths) | 37.00% | 44.00% | ||
UNITED STATES | Pension Plan [Member] | Real Estate [Member] | ||||
Defined Benefit Plan, Plan Assets, Allocations [Abstract] | ||||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 2.00% | |||
Defined Benefit Plan, Actual Plan Asset Allocations (in hundredths) | 2.00% | 2.00% | ||
UNITED STATES | Pension Plan [Member] | Other Investment Companies [Member] | ||||
Defined Benefit Plan, Plan Assets, Allocations [Abstract] | ||||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | [1] | 15.00% | ||
Defined Benefit Plan, Actual Plan Asset Allocations (in hundredths) | [1] | 11.00% | 11.00% | |
[1] | U.S. primarily consists of private equity and natural resource and energy related limited partnership investments. Non-U.S. primarily consists of annuity contracts and alternative investmen | |||
[2] | Cash & Cash Equivalents: Funds generally invested in actively managed collective trust funds or interest bearing accounts. | |||
[3] | Debt: The fixed income securities are primarily valued upon a market approach, using matrix pricing and considering a security's relationship to other securities for which quoted prices in an active market may be available, or an income approach, converting future cash flows to a single present value amount. Inputs used in developing fair value estimates include reported trades, broker quotes, benchmark yields, and base spreads. | |||
[4] | Investments Measured at Net Asset Value: The underlying debt and public equity investments in this category are generally held in common trust funds, which are either actively or passively managed investment vehicles, that are valued at the net asset value per unit/share multiplied by the number of units/shares held as of the measurement date. The other alternative investments in this category are valued under the practical expedient method which is based on the most recently reported net asset value provided by the management of each private investment fund, adjusted as appropriate, for any lag between the date of the financial reports and the measurement date. | |||
[5] | Public Equity - United States: Common stock equity securities which are primarily valued using a market approach based on the quoted market prices. | |||
[6] | Other Investments: Primarily consist of insurance contracts which are generally valued using a crediting rate that approximates market returns and investments in underlying securities whose market values are unobservable and determined using pricing models, discounted cash flow methodologies, or similar techniques. | |||
[7] | Primarily consists of insurance contracts. |
LEASES AND OTHER COMMITMENTS _3
LEASES AND OTHER COMMITMENTS Leases (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Leases [Abstract] | |
Operating Lease, Cost | $ 70 |
Lessee, Operating Lease, Liability, Payments, Remainder of Fiscal Year | 62 |
Operating Lease, Right-of-Use Asset | 197 |
Operating Lease, Right-of-Use Asset, Reclassified | 8 |
Lessee, Operating Lease, Liability, Payments, Due Year Two | 49 |
Lessee, Operating Lease, Liability, Payments, Due Year Three | 38 |
Lessee, Operating Lease, Liability, Payments, Due Year Four | 25 |
Lessee, Operating Lease, Liability, Payments, Due Year Five | 14 |
Lessee, Operating Lease, Liability, Payments, Due after Year Five | 30 |
Lessee, Operating Lease, Liability, Payments, Due | 218 |
Lessee, Operating Lease, Liability, Undiscounted Excess Amount | 22 |
Operating Lease, Liability | 196 |
Operating Lease, Liability, Current | 55 |
Operating Lease, Liability, Noncurrent | 141 |
Short-term Lease, Cost | 40 |
Sublease Income | (2) |
Lease, Cost | 108 |
Operating Lease, Payments | 72 |
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability | $ 54 |
Operating Lease, Weighted Average Remaining Lease Term | 5 years |
Operating Lease, Weighted Average Discount Rate, Percent | 4.00% |
LEASES AND OTHER COMMITMENTS Co
LEASES AND OTHER COMMITMENTS Commitments (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Other Commitments [Line Items] | |
Other Commitment, Due in Next Twelve Months | $ 828 |
Other Commitment, Due in Second Year | 955 |
Other Commitment, Due in Third Year | 1,143 |
Other Commitment, Due in Fourth Year | 1,199 |
Other Commitment, Due in Fifth Year | 580 |
Other Commitment, Due after Fifth Year | 7,824 |
Other Commitment | $ 12,529 |
Unrecorded Unconditional Purchase Obligation, Term | 30 years |
Guarantor Obligations, Term | P30Y |
Guarantor Obligations, Maximum Exposure, Undiscounted | $ 35 |
Debt Securities [Member] | |
Other Commitments [Line Items] | |
Other Commitment, Due in Next Twelve Months | 0 |
Other Commitment, Due in Second Year | 483 |
Other Commitment, Due in Third Year | 741 |
Other Commitment, Due in Fourth Year | 840 |
Other Commitment, Due in Fifth Year | 240 |
Other Commitment, Due after Fifth Year | 3,307 |
Other Commitment | 5,611 |
Revolving Credit Facility [Member] | |
Other Commitments [Line Items] | |
Other Commitment, Due in Next Twelve Months | 171 |
Other Commitment, Due in Second Year | 0 |
Other Commitment, Due in Third Year | 0 |
Other Commitment, Due in Fourth Year | 0 |
Other Commitment, Due in Fifth Year | 0 |
Other Commitment, Due after Fifth Year | 0 |
Other Commitment | 171 |
Interest payable [Member] | |
Other Commitments [Line Items] | |
Other Commitment, Due in Next Twelve Months | 173 |
Other Commitment, Due in Second Year | 186 |
Other Commitment, Due in Third Year | 175 |
Other Commitment, Due in Fourth Year | 156 |
Other Commitment, Due in Fifth Year | 137 |
Other Commitment, Due after Fifth Year | 1,414 |
Other Commitment | 2,241 |
Obligations [Member] | |
Other Commitments [Line Items] | |
Other Commitment, Due in Next Twelve Months | 181 |
Other Commitment, Due in Second Year | 156 |
Other Commitment, Due in Third Year | 102 |
Other Commitment, Due in Fourth Year | 91 |
Other Commitment, Due in Fifth Year | 100 |
Other Commitment, Due after Fifth Year | 1,967 |
Other Commitment | 2,597 |
Operating leases [Member] | |
Other Commitments [Line Items] | |
Other Commitment, Due in Next Twelve Months | 62 |
Other Commitment, Due in Second Year | 49 |
Other Commitment, Due in Third Year | 38 |
Other Commitment, Due in Fourth Year | 25 |
Other Commitment, Due in Fifth Year | 14 |
Other Commitment, Due after Fifth Year | 30 |
Other Commitment | 218 |
Other Liabilities [Member] | |
Other Commitments [Line Items] | |
Other Commitment, Due in Next Twelve Months | 241 |
Other Commitment, Due in Second Year | 81 |
Other Commitment, Due in Third Year | 87 |
Other Commitment, Due in Fourth Year | 87 |
Other Commitment, Due in Fifth Year | 89 |
Other Commitment, Due after Fifth Year | 1,106 |
Other Commitment | $ 1,691 |
ENVIRONMENTAL MATTERS (Details)
ENVIRONMENTAL MATTERS (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Accrual for Environmental Loss Contingencies [Roll Forward] | |||
Beginning of period | $ 296 | ||
End of period | $ 287 | $ 296 | |
Expected Payment Period of Environmental Contingencies | 30 years | ||
Accrual for Environmental Loss Contingencies [Abstract] | |||
Accrued Environmental Loss Contingencies, Current | $ 20 | 25 | |
Accrued Environmental Loss Contingencies, Noncurrent | 267 | 271 | |
Environmental Costs [Abstract] | |||
Cash expenditures related to environmental protection and improvement | 244 | 274 | $ 257 |
Environmental capital expenditures | 27 | 44 | 38 |
Environmental Remediation [Member] | |||
Accrual for Environmental Loss Contingencies [Roll Forward] | |||
Beginning of period | 271 | 280 | |
Changes in estimates recorded to earnings and other | 4 | 7 | |
Cash reductions | (15) | (16) | |
End of period | $ 260 | 271 | $ 280 |
Expected Payment Period of Environmental Contingencies | approximately 30 years | ||
Shared Sites [Member] | |||
Site Contingency [Line Items] | |||
Maximum funding required for environmental shared sites | $ 325 | ||
Amounts paid for Environmental Remediation to Date for Shared Sites | 99 | ||
Loss Contingency, Estimate of Possible Loss | 197 | ||
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 | 48 | 46 | |
Minimum [Member] | Environmental Remediation [Member] | |||
Site Contingency [Line Items] | |||
Loss Contingency, Estimate of Possible Loss | 260 | 271 | |
Maximum [Member] | Environmental Remediation [Member] | |||
Site Contingency [Line Items] | |||
Loss Contingency, Estimate of Possible Loss | $ 487 | $ 508 |
STOCKHOLDERS' EQUITY (Details)
STOCKHOLDERS' EQUITY (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2019 | Feb. 01, 2018 | Jan. 01, 2018 | Dec. 31, 2016 | Feb. 01, 2014 | |||||||||||||||
All Classes Of Equity Shares Authorized For Issue | 400,000,000 | 400,000,000 | ||||||||||||||||||||||||||||
Preferred Stock, Shares Authorized | 50,000,000 | 50,000,000 | ||||||||||||||||||||||||||||
Preferred Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 | ||||||||||||||||||||||||||||
Common Stock, Shares Authorized | 350,000,000 | 350,000,000 | 350,000,000 | 350,000,000 | ||||||||||||||||||||||||||
Common Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | ||||||||||||||||||||||||||
Cash dividends declared (per share) | $ 2.52 | $ 2.30 | $ 2.09 | |||||||||||||||||||||||||||
Class of Warrant or Right, Outstanding | 6,000,000 | 6,000,000 | ||||||||||||||||||||||||||||
Stock Repurchases | $ (325) | $ (400) | $ (350) | |||||||||||||||||||||||||||
Treasury stock held by the Companys charitable foundation in shares | 50,798 | 50,798 | 50,798 | 50,798 | 50,798 | |||||||||||||||||||||||||
Treasury Stock, Shares, Acquired | 4,282,409 | 3,959,878 | 4,184,637 | |||||||||||||||||||||||||||
Stockholders' Equity [Roll Forward] | ||||||||||||||||||||||||||||||
Beginning Balance | $ 5,803 | $ 5,803 | ||||||||||||||||||||||||||||
Cumulative Effect of New Accounting Principle in Period of Adoption | $ 0 | [1] | $ 16 | [2] | ||||||||||||||||||||||||||
Net Earnings | $ 26 | $ 266 | $ 258 | 209 | $ 34 | $ 412 | $ 344 | $ 290 | 759 | $ 1,080 | $ 1,384 | |||||||||||||||||||
Income attributable to noncontrolling interest | 3 | 4 | 4 | |||||||||||||||||||||||||||
Net earnings including noncontrolling interest | 762 | 1,084 | 1,388 | |||||||||||||||||||||||||||
Cash dividends declared | [3] | (347) | (325) | (303) | ||||||||||||||||||||||||||
Other Comprehensive Income (Loss) | 11 | (36) | 72 | |||||||||||||||||||||||||||
Share-Based Compensation Expense | [4] | 59 | 64 | 52 | ||||||||||||||||||||||||||
Stock Option Exercises | 9 | 18 | 22 | |||||||||||||||||||||||||||
Stockholders' Equity, Other | (11) | [5] | (18) | [5] | (5) | |||||||||||||||||||||||||
Stock Repurchases | (325) | (400) | (350) | |||||||||||||||||||||||||||
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders | (4) | (5) | (4) | |||||||||||||||||||||||||||
Ending Balance | 5,958 | 5,803 | 5,958 | 5,803 | ||||||||||||||||||||||||||
Total equity | 6,032 | 5,878 | 6,032 | 5,878 | 5,480 | $ 4,608 | ||||||||||||||||||||||||
Earnings Per Share, Basic and Diluted [Abstract] | ||||||||||||||||||||||||||||||
Net earnings attributable to Eastman | $ 26 | $ 266 | $ 258 | $ 209 | $ 34 | $ 412 | $ 344 | $ 290 | $ 759 | $ 1,080 | $ 1,384 | |||||||||||||||||||
Shares used for earnings per share calculation, Basic (in shares) | 137,400,000 | 141,200,000 | 144,800,000 | |||||||||||||||||||||||||||
Weighted Average Number Diluted Shares Outstanding Adjustment | 1,100,000 | 1,700,000 | 1,300,000 | |||||||||||||||||||||||||||
Shares used for earnings per share calculation, Diluted (in shares) | 138,500,000 | 142,900,000 | 146,100,000 | |||||||||||||||||||||||||||
Basic earnings per share attributable to Eastman | $ 0.19 | [6] | $ 1.95 | [6] | $ 1.87 | [6] | $ 1.50 | [6] | $ 0.25 | [6] | $ 2.93 | [6] | $ 2.42 | [6] | $ 2.03 | [6] | $ 5.52 | [7] | $ 7.65 | [7] | $ 9.56 | [7] | ||||||||
Diluted earnings per share attributable to Eastman | $ 0.19 | [6] | $ 1.93 | [6] | $ 1.85 | [6] | $ 1.49 | [6] | $ 0.24 | [6] | $ 2.89 | [6] | $ 2.39 | [6] | $ 2 | [6] | $ 5.48 | [7] | $ 7.56 | [7] | $ 9.47 | [7] | ||||||||
Underlying options excluded from the computation of diluted earnings per share (in shares) | 2,183,875 | 619,706 | 204,978 | |||||||||||||||||||||||||||
Shares of common stock issued [Abstract] | ||||||||||||||||||||||||||||||
Balance, beginning of period (in shares) | 219,140,523 | 218,369,992 | 219,140,523 | 218,369,992 | 217,707,600 | |||||||||||||||||||||||||
Shares Issued, Shares, Share-based Payment Arrangement, after Forfeiture | 498,123 | 770,531 | 662,392 | |||||||||||||||||||||||||||
Balance, ending of period (in shares) | 219,638,646 | 219,140,523 | 219,638,646 | 219,140,523 | 218,369,992 | |||||||||||||||||||||||||
Accumulated Other Comprehensive Income Loss Net Of Tax Abstract | ||||||||||||||||||||||||||||||
Cumulative Translation Adjustment | $ (264) | $ (309) | $ (264) | $ (309) | $ (296) | |||||||||||||||||||||||||
Unrecognized Prior Service Credits for Benefit Plans | 106 | 106 | 106 | 106 | 136 | |||||||||||||||||||||||||
Unrealized Gains (Losses) on Derivative Instruments | (55) | (41) | (55) | (41) | (48) | |||||||||||||||||||||||||
Unrealized Losses on Investments | (1) | (1) | (1) | (1) | (1) | |||||||||||||||||||||||||
Accumulated other comprehensive loss | (214) | (245) | (214) | (245) | (209) | |||||||||||||||||||||||||
Cumulative Translation Adjustment | 45 | (13) | 85 | |||||||||||||||||||||||||||
Change in defined benefit pension and other postretirement benefit plans | 0 | [8] | (30) | |||||||||||||||||||||||||||
Unrealized Gains (Losses) on Derivative Instruments | (14) | [8] | 7 | |||||||||||||||||||||||||||
Unrealized Losses on Investments | 0 | 0 | ||||||||||||||||||||||||||||
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | 31 | |||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | 11 | (36) | 72 | |||||||||||||||||||||||||||
Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||||||||||||||||||||||||||||
Cumulative Translation Adjustment | 45 | (13) | 85 | |||||||||||||||||||||||||||
Amortization of unrecognized prior service credits included in net periodic costs | (29) | (30) | (27) | |||||||||||||||||||||||||||
Change in defined benefit pension and other postretirement benefit plans | 0 | [8] | (30) | |||||||||||||||||||||||||||
Unrealized gain (loss) during period | (20) | 22 | 7 | |||||||||||||||||||||||||||
Reclassification adjustment for losses included in net income, net | 15 | (15) | 7 | |||||||||||||||||||||||||||
Unrealized Gains (Losses) on Derivative Instruments | (14) | [8] | 7 | |||||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | 11 | (36) | 72 | |||||||||||||||||||||||||||
Other Comprehensive Income (Loss), before Tax [Abstract] | ||||||||||||||||||||||||||||||
Change in cumulative translation adjustment | 45 | (13) | 85 | |||||||||||||||||||||||||||
Amortization of unrecognized prior service credits included in net periodic costs | (39) | (40) | (43) | |||||||||||||||||||||||||||
Unrealized gain (loss) | (27) | 30 | 11 | |||||||||||||||||||||||||||
Reclassification adjustment for loss included in net income | 20 | (20) | 11 | |||||||||||||||||||||||||||
Total other comprehensive income (loss) | (1) | (43) | 64 | |||||||||||||||||||||||||||
Common Stock [Member] | ||||||||||||||||||||||||||||||
Stock Repurchases | 0 | 0 | 0 | |||||||||||||||||||||||||||
Stockholders' Equity [Roll Forward] | ||||||||||||||||||||||||||||||
Beginning Balance | $ 2 | $ 2 | 2 | 2 | 2 | |||||||||||||||||||||||||
Cumulative Effect of New Accounting Principle in Period of Adoption | 0 | [1] | 0 | [2] | ||||||||||||||||||||||||||
Net Earnings | 0 | 0 | 0 | |||||||||||||||||||||||||||
Cash dividends declared | [3] | 0 | 0 | 0 | ||||||||||||||||||||||||||
Other Comprehensive Income (Loss) | 0 | 0 | 0 | |||||||||||||||||||||||||||
Share-Based Compensation Expense | [4] | 0 | 0 | 0 | ||||||||||||||||||||||||||
Stock Option Exercises | 0 | 0 | 0 | |||||||||||||||||||||||||||
Stockholders' Equity, Other | 0 | [5] | 0 | [5] | 0 | |||||||||||||||||||||||||
Stock Repurchases | 0 | 0 | 0 | |||||||||||||||||||||||||||
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders | 0 | 0 | 0 | |||||||||||||||||||||||||||
Ending Balance | 2 | 2 | 2 | 2 | 2 | |||||||||||||||||||||||||
Earnings Per Share, Basic and Diluted [Abstract] | ||||||||||||||||||||||||||||||
Net earnings attributable to Eastman | 0 | 0 | 0 | |||||||||||||||||||||||||||
Accumulated Other Comprehensive Income Loss Net Of Tax Abstract | ||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | 0 | 0 | 0 | |||||||||||||||||||||||||||
Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | 0 | 0 | 0 | |||||||||||||||||||||||||||
Additional Paid In Capital [Member] | ||||||||||||||||||||||||||||||
Stock Repurchases | 0 | 0 | 0 | |||||||||||||||||||||||||||
Stockholders' Equity [Roll Forward] | ||||||||||||||||||||||||||||||
Beginning Balance | 2,048 | 1,983 | 2,048 | 1,983 | 1,915 | |||||||||||||||||||||||||
Cumulative Effect of New Accounting Principle in Period of Adoption | 0 | [1] | 0 | [2] | ||||||||||||||||||||||||||
Net Earnings | 0 | 0 | 0 | |||||||||||||||||||||||||||
Cash dividends declared | [3] | 0 | 0 | 0 | ||||||||||||||||||||||||||
Other Comprehensive Income (Loss) | 0 | 0 | 0 | |||||||||||||||||||||||||||
Share-Based Compensation Expense | [4] | 59 | 64 | 52 | ||||||||||||||||||||||||||
Stock Option Exercises | 9 | 18 | 22 | |||||||||||||||||||||||||||
Stockholders' Equity, Other | (11) | [5] | (17) | [5] | (6) | |||||||||||||||||||||||||
Stock Repurchases | 0 | 0 | 0 | |||||||||||||||||||||||||||
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders | 0 | 0 | 0 | |||||||||||||||||||||||||||
Ending Balance | 2,105 | 2,048 | 2,105 | 2,048 | 1,983 | |||||||||||||||||||||||||
Earnings Per Share, Basic and Diluted [Abstract] | ||||||||||||||||||||||||||||||
Net earnings attributable to Eastman | 0 | 0 | 0 | |||||||||||||||||||||||||||
Accumulated Other Comprehensive Income Loss Net Of Tax Abstract | ||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | 0 | 0 | 0 | |||||||||||||||||||||||||||
Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | 0 | 0 | 0 | |||||||||||||||||||||||||||
Retained Earnings [Member] | ||||||||||||||||||||||||||||||
Stock Repurchases | 0 | 0 | 0 | |||||||||||||||||||||||||||
Stockholders' Equity [Roll Forward] | ||||||||||||||||||||||||||||||
Beginning Balance | 7,573 | 6,802 | 7,573 | 6,802 | 5,721 | |||||||||||||||||||||||||
Cumulative Effect of New Accounting Principle in Period of Adoption | (20) | [1] | 16 | [2] | ||||||||||||||||||||||||||
Net Earnings | 759 | 1,080 | 1,384 | |||||||||||||||||||||||||||
Cash dividends declared | [3] | (347) | (325) | (303) | ||||||||||||||||||||||||||
Other Comprehensive Income (Loss) | 0 | 0 | 0 | |||||||||||||||||||||||||||
Share-Based Compensation Expense | [4] | 0 | 0 | 0 | ||||||||||||||||||||||||||
Stock Option Exercises | 0 | 0 | 0 | |||||||||||||||||||||||||||
Stockholders' Equity, Other | 0 | [5] | 0 | [5] | 0 | |||||||||||||||||||||||||
Stock Repurchases | 0 | 0 | 0 | |||||||||||||||||||||||||||
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders | 0 | 0 | 0 | |||||||||||||||||||||||||||
Ending Balance | 7,965 | 7,573 | 7,965 | 7,573 | 6,802 | |||||||||||||||||||||||||
Earnings Per Share, Basic and Diluted [Abstract] | ||||||||||||||||||||||||||||||
Net earnings attributable to Eastman | 759 | 1,080 | 1,384 | |||||||||||||||||||||||||||
Accumulated Other Comprehensive Income Loss Net Of Tax Abstract | ||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | 0 | 0 | 0 | |||||||||||||||||||||||||||
Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | 0 | 0 | 0 | |||||||||||||||||||||||||||
Accumulated Other Comprehensive Income [Member] | ||||||||||||||||||||||||||||||
Stock Repurchases | 0 | 0 | 0 | |||||||||||||||||||||||||||
Stockholders' Equity [Roll Forward] | ||||||||||||||||||||||||||||||
Beginning Balance | (245) | (209) | (245) | (209) | (281) | |||||||||||||||||||||||||
Cumulative Effect of New Accounting Principle in Period of Adoption | 20 | [1] | 0 | [2] | ||||||||||||||||||||||||||
Net Earnings | 0 | 0 | 0 | |||||||||||||||||||||||||||
Cash dividends declared | [3] | 0 | 0 | 0 | ||||||||||||||||||||||||||
Other Comprehensive Income (Loss) | 11 | (36) | 72 | |||||||||||||||||||||||||||
Share-Based Compensation Expense | [4] | 0 | 0 | 0 | ||||||||||||||||||||||||||
Stock Option Exercises | 0 | 0 | 0 | |||||||||||||||||||||||||||
Stockholders' Equity, Other | 0 | [5] | 0 | [5] | 0 | |||||||||||||||||||||||||
Stock Repurchases | 0 | 0 | 0 | |||||||||||||||||||||||||||
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders | 0 | 0 | 0 | |||||||||||||||||||||||||||
Ending Balance | (214) | (245) | (214) | (245) | (209) | |||||||||||||||||||||||||
Earnings Per Share, Basic and Diluted [Abstract] | ||||||||||||||||||||||||||||||
Net earnings attributable to Eastman | 0 | 0 | 0 | |||||||||||||||||||||||||||
Accumulated Other Comprehensive Income Loss Net Of Tax Abstract | ||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | 11 | (36) | 72 | |||||||||||||||||||||||||||
Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | 11 | (36) | 72 | |||||||||||||||||||||||||||
Treasury Stock [Member] | ||||||||||||||||||||||||||||||
Stock Repurchases | (325) | (400) | (350) | |||||||||||||||||||||||||||
Stockholders' Equity [Roll Forward] | ||||||||||||||||||||||||||||||
Beginning Balance | (3,575) | (3,175) | (3,575) | (3,175) | (2,825) | |||||||||||||||||||||||||
Cumulative Effect of New Accounting Principle in Period of Adoption | 0 | [1] | 0 | [2] | ||||||||||||||||||||||||||
Net Earnings | 0 | 0 | 0 | |||||||||||||||||||||||||||
Cash dividends declared | [3] | 0 | 0 | 0 | ||||||||||||||||||||||||||
Other Comprehensive Income (Loss) | 0 | 0 | 0 | |||||||||||||||||||||||||||
Share-Based Compensation Expense | [4] | 0 | 0 | 0 | ||||||||||||||||||||||||||
Stock Option Exercises | 0 | 0 | 0 | |||||||||||||||||||||||||||
Stockholders' Equity, Other | 0 | [5] | 0 | [5] | 0 | |||||||||||||||||||||||||
Stock Repurchases | (325) | (400) | (350) | |||||||||||||||||||||||||||
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders | 0 | 0 | 0 | |||||||||||||||||||||||||||
Ending Balance | (3,900) | (3,575) | (3,900) | (3,575) | (3,175) | |||||||||||||||||||||||||
Earnings Per Share, Basic and Diluted [Abstract] | ||||||||||||||||||||||||||||||
Net earnings attributable to Eastman | 0 | 0 | 0 | |||||||||||||||||||||||||||
Accumulated Other Comprehensive Income Loss Net Of Tax Abstract | ||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | 0 | 0 | 0 | |||||||||||||||||||||||||||
Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | 0 | 0 | 0 | |||||||||||||||||||||||||||
Eastman's Stockholders' Equity [Member] | ||||||||||||||||||||||||||||||
Stock Repurchases | (325) | (400) | (350) | |||||||||||||||||||||||||||
Stockholders' Equity [Roll Forward] | ||||||||||||||||||||||||||||||
Beginning Balance | 5,803 | 5,403 | 5,803 | 5,403 | 4,532 | |||||||||||||||||||||||||
Cumulative Effect of New Accounting Principle in Period of Adoption | 0 | [1] | 16 | [2] | ||||||||||||||||||||||||||
Net Earnings | 759 | 1,080 | 1,384 | |||||||||||||||||||||||||||
Cash dividends declared | [3] | (347) | (325) | (303) | ||||||||||||||||||||||||||
Other Comprehensive Income (Loss) | 11 | (36) | 72 | |||||||||||||||||||||||||||
Share-Based Compensation Expense | [4] | 59 | 64 | 52 | ||||||||||||||||||||||||||
Stock Option Exercises | 9 | 18 | 22 | |||||||||||||||||||||||||||
Stockholders' Equity, Other | (11) | [5] | (17) | [5] | (6) | |||||||||||||||||||||||||
Stock Repurchases | (325) | (400) | (350) | |||||||||||||||||||||||||||
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders | 0 | 0 | 0 | |||||||||||||||||||||||||||
Ending Balance | 5,958 | 5,803 | 5,958 | 5,803 | 5,403 | |||||||||||||||||||||||||
Earnings Per Share, Basic and Diluted [Abstract] | ||||||||||||||||||||||||||||||
Net earnings attributable to Eastman | 759 | 1,080 | 1,384 | |||||||||||||||||||||||||||
Accumulated Other Comprehensive Income Loss Net Of Tax Abstract | ||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | 11 | (36) | 72 | |||||||||||||||||||||||||||
Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | 11 | (36) | 72 | |||||||||||||||||||||||||||
Noncontrolling Interest [Member] | ||||||||||||||||||||||||||||||
Stock Repurchases | 0 | 0 | 0 | |||||||||||||||||||||||||||
Stockholders' Equity [Roll Forward] | ||||||||||||||||||||||||||||||
Beginning Balance | $ 75 | $ 77 | 75 | 77 | 76 | |||||||||||||||||||||||||
Cumulative Effect of New Accounting Principle in Period of Adoption | 0 | [1] | 0 | [2] | ||||||||||||||||||||||||||
Income attributable to noncontrolling interest | 3 | 4 | 4 | |||||||||||||||||||||||||||
Cash dividends declared | [3] | 0 | 0 | 0 | ||||||||||||||||||||||||||
Other Comprehensive Income (Loss) | 0 | 0 | 0 | |||||||||||||||||||||||||||
Share-Based Compensation Expense | [4] | 0 | 0 | 0 | ||||||||||||||||||||||||||
Stock Option Exercises | 0 | 0 | 0 | |||||||||||||||||||||||||||
Stockholders' Equity, Other | 0 | [5] | (1) | [5] | 1 | |||||||||||||||||||||||||
Stock Repurchases | 0 | 0 | 0 | |||||||||||||||||||||||||||
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders | (4) | (5) | (4) | |||||||||||||||||||||||||||
Ending Balance | $ 74 | $ 75 | 74 | 75 | 77 | |||||||||||||||||||||||||
Accumulated Other Comprehensive Income Loss Net Of Tax Abstract | ||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | 0 | 0 | 0 | |||||||||||||||||||||||||||
Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | $ 0 | $ 0 | $ 0 | |||||||||||||||||||||||||||
2014 Repurchase Program [Member] | ||||||||||||||||||||||||||||||
Stock Repurchase Program, Authorized Amount | $ 1,000 | |||||||||||||||||||||||||||||
Stock Repurchase Program, Number of Shares Authorized to be Repurchased | 12,215,950 | 12,215,950 | ||||||||||||||||||||||||||||
2018 Repurchase Program [Member] | ||||||||||||||||||||||||||||||
Stock Repurchase Program, Authorized Amount | $ 2,000 | |||||||||||||||||||||||||||||
Stock Repurchase Program, Number of Shares Authorized to be Repurchased | 6,753,164 | 6,753,164 | ||||||||||||||||||||||||||||
Stock Repurchase Program, Amount Repurchased to Date | $ 573 | $ 573 | ||||||||||||||||||||||||||||
Accounting Standards Update 2014-09 [Member] | ||||||||||||||||||||||||||||||
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets | 53 | |||||||||||||||||||||||||||||
Accounting Standards Update 2017-12 [Member] | ||||||||||||||||||||||||||||||
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets | 2 | |||||||||||||||||||||||||||||
Accounting Standards Update 2016-16 [Member] | ||||||||||||||||||||||||||||||
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets | $ (39) | |||||||||||||||||||||||||||||
Accounting Standards Update 2018-02 [Member] | ||||||||||||||||||||||||||||||
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets | $ (20) | |||||||||||||||||||||||||||||
Accounting Standards Update 2018-02 [Member] | Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member] | ||||||||||||||||||||||||||||||
Cumulative Effect on Retained Earnings, Tax | 29 | |||||||||||||||||||||||||||||
Accounting Standards Update 2018-02 [Member] | Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent [Member] | ||||||||||||||||||||||||||||||
Cumulative Effect on Retained Earnings, Tax | $ (9) | |||||||||||||||||||||||||||||
[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 and derivatives and hedging, which resulted in increases to beginning retained earnings of $53 million and $2 million , respectively. The Company also adopted a new accounting standard for income taxes, which resulted in a decrease to beginning retained earnings of $39 million . | |||||||||||||||||||||||||||||
[3] | Cash dividends includes 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. | |||||||||||||||||||||||||||||
[6] | Each quarter is calculated as a discrete period; the sum of the four quarters may not equal the calculated full year amount. | |||||||||||||||||||||||||||||
[7] | EPS is calculated using whole dollars and shares. | |||||||||||||||||||||||||||||
[8] | 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 $9 million reclassification of stranded tax benefit from AOCI to retained earnings. See Note 1, "Significant Accounting Policies" , for additional information. |
ASSET IMPAIRMENTS AND RESTRUC_3
ASSET IMPAIRMENTS AND RESTRUCTURING (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Restructuring Cost and Reserve [Line Items] | |||||||||||
Asset Impairment Charges | $ 72 | $ 39 | $ 1 | ||||||||
Asset Impairments and Restructuring Charges Recognized [Abstract] | |||||||||||
Asset impairments | 27 | 0 | 1 | ||||||||
Intangible asset and goodwill impairments | 45 | 39 | 0 | ||||||||
Severance charges | 45 | 6 | 6 | ||||||||
Site closure and restructuring charges | 9 | 0 | 1 | ||||||||
Asset impairments and restructuring charges, net | $ 74 | $ 2 | $ 18 | $ 32 | $ 39 | $ 0 | $ 4 | $ 2 | 126 | 45 | 8 |
Restructuring Charge [Roll Forward] | |||||||||||
Balance at Beginning of Period | 14 | 29 | 14 | 29 | 55 | ||||||
Restructuring Costs and Asset Impairment Charges | 126 | 45 | 8 | ||||||||
Non-cash Reductions | (71) | (38) | 0 | ||||||||
Cash Reductions | (41) | (22) | (34) | ||||||||
Balance at End of Period | 28 | 14 | 28 | 14 | 29 | ||||||
Non-Cash Charges [Member] | |||||||||||
Restructuring Charge [Roll Forward] | |||||||||||
Balance at Beginning of Period | 0 | 0 | 0 | 0 | 0 | ||||||
Restructuring Reserve, Period Increase (Decrease) | 72 | 39 | 1 | ||||||||
Non-cash Reductions | (72) | (39) | (1) | ||||||||
Cash Reductions | 0 | 0 | 0 | ||||||||
Balance at End of Period | 0 | 0 | 0 | 0 | 0 | ||||||
Employee Severance [Member] | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Restructuring Charges | 5 | ||||||||||
Asset Impairments and Restructuring Charges Recognized [Abstract] | |||||||||||
Asset impairments and restructuring charges, net | 6 | ||||||||||
Restructuring Charge [Roll Forward] | |||||||||||
Balance at Beginning of Period | 6 | 19 | 6 | 19 | 42 | ||||||
Restructuring Reserve, Period Increase (Decrease) | 45 | 6 | 6 | ||||||||
Restructuring Reserve, Accrual Adjustment | 0 | 1 | 0 | ||||||||
Cash Reductions | (34) | (20) | (29) | ||||||||
Balance at End of Period | 17 | 6 | 17 | 6 | 19 | ||||||
Site Closure and Restructuring Costs [Member] | |||||||||||
Restructuring Charge [Roll Forward] | |||||||||||
Balance at Beginning of Period | $ 8 | $ 10 | 8 | 10 | 13 | ||||||
Restructuring Reserve, Period Increase (Decrease) | 9 | 0 | 1 | ||||||||
Restructuring Reserve, Accrual Adjustment | 1 | 0 | 1 | ||||||||
Cash Reductions | (7) | (2) | (5) | ||||||||
Balance at End of Period | $ 11 | $ 8 | 11 | 8 | 10 | ||||||
Additives And Functional Products [Member] | Property, Plant and Equipment [Member] | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Asset Impairment Charges | 27 | ||||||||||
Additives And Functional Products [Member] | Goodwill [Member] | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Asset Impairment Charges | 45 | 38 | |||||||||
Advanced Materials [Member] | Indefinite-lived Intangible Assets [Member] | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Asset Impairment Charges | $ 1 | ||||||||||
Corporate Cost Actions 2019 [Member] | Corporate, Non-Segment [Member] | |||||||||||
Asset Impairments and Restructuring Charges Recognized [Abstract] | |||||||||||
Severance charges | 45 | ||||||||||
Other Restructuring Costs | 5 | ||||||||||
Capital Project AFP [Member] | Additives And Functional Products [Member] | |||||||||||
Asset Impairments and Restructuring Charges Recognized [Abstract] | |||||||||||
Site closure and restructuring charges | $ 4 | ||||||||||
China Site Closure [Member] | Additives And Functional Products [Member] | Site Closure and Restructuring Costs [Member] | |||||||||||
Asset Impairments and Restructuring Charges Recognized [Abstract] | |||||||||||
Asset impairments and restructuring charges, net | $ 3 |
OTHER CHARGES (INCOME), NET (De
OTHER CHARGES (INCOME), NET (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||
Other Income and Expenses [Abstract] | |||||
Foreign exchange transaction losses (gains), net (1) | [1] | $ 9 | $ 12 | $ 5 | |
Currency transaction costs resulting from tax law changes and outside-U.S. entity reorganizations | 0 | 13 | 0 | ||
(Income) loss from equity investments and other investment (gains) losses, net | (10) | (17) | (12) | ||
Gain from property insurance | 0 | (65) | 0 | ||
Cost of disposition of claims against discontinued Solutia operations | 0 | 0 | 9 | ||
Gain from sale of business (2) | 0 | 0 | (3) | [2] | |
Other, net | 4 | 4 | 5 | ||
Other (income) charges, net | $ 3 | $ (53) | $ 4 | ||
[1] | Net impact of revaluation of foreign entity assets and liabilities and effects of foreign exchange non-qualifying derivatives. | ||||
[2] | Gain resulting from the sale of the formulated electronic cleaning solution business in the AFP segment in 2017. |
SHARE-BASED COMPENSATION PLAN_3
SHARE-BASED COMPENSATION PLANS AND AWARDS Part 1 (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Document Period End Date | Dec. 31, 2019 | ||
Share-based Payment Arrangement, Option, Exercise Price Range, Exercisable, Weighted Average Exercise Price | $ 74 | ||
Share-based compensation expense recognized in selling, general and administrative expense | $ 59 | $ 64 | $ 52 |
Share-based compensation expense, retirement eligibility preceding the requisite vesting period | $ 3 | 3 | 2 |
Share-based Payment Arrangement, Option, Exercise Price Range, Outstanding, Weighted Average Exercise Price | $ 80 | ||
Omnibus Long-Term Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Plan, term description | Eastman's 2017 Omnibus Stock Compensation Plan ("2017 Omnibus Plan") was approved by stockholders at the May 4, 2017 Annual Meeting of Stockholders and shall remain in effect until its fifth anniversary. | ||
Shares reserved and available for issuance (in shares) | 10,000,000 | ||
Shares covered by full award value per share available for issuance | $ 2.5 | ||
Grant date exercise price, minimum | exercise price not less than 100 percent of the per share fair market value on the date of the grant | ||
Director Compensation Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares reserved and available for issuance (in shares) | 10,000,000 | ||
Term of service for shares of restricted stock to be granted to a non-employee director | Shares of restricted stock are granted on the first day of a non-employee director's initial term of service and shares of restricted stock are granted each year to each non-employee director on the date of the annual meeting of stockholders. | ||
Stock Option [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense recognized in selling, general and administrative expense | $ 9 | $ 9 | $ 8 |
Weighted average assumptions used to determine fair value of stock options awarded [Abstract] | |||
Expected volatility rate (in hundredths) | 19.80% | 19.03% | 20.45% |
Expected dividend yield (in hundredths) | 2.51% | 2.48% | 2.64% |
Average risk-free interest rate (in hundredths) | 2.44% | 2.61% | 1.91% |
Expected term years (in years) | 5 years 8 months 12 days | 5 years 1 month 6 days | 5 years |
Expected dividend yield calculation basis | Company's average of the last four quarterly dividend yields | ||
Summary of activity of stock option awards [Roll Forward] | |||
Outstanding at beginning of period (in shares) | 2,905,600 | 2,614,100 | 2,363,700 |
Granted (in shares) | 786,000 | 619,700 | 745,800 |
Exercised (in shares) | (135,700) | (323,000) | (489,300) |
Cancelled forfeited or expired (in shares) | (76,600) | (5,200) | (6,100) |
Outstanding at end of period (in shares) | 3,479,300 | 2,905,600 | 2,614,100 |
Options exercisable at period-end (in shares) | 2,077,600 | 1,606,800 | 1,335,500 |
Available for grant at end of period (in shares) | 6,085,857 | 8,174,614 | 9,943,033 |
Outstanding at beginning of period (in dollars per share) | $ 79 | $ 70 | $ 61 |
Granted (in dollars per share) | 81 | 104 | 80 |
Exercised (in dollars per share) | 67 | 55 | 44 |
Cancelled, forfeited, or expired (in dollars per share) | 88 | 78 | 74 |
Outstanding at end of year (in dollars per share) | 80 | 79 | 70 |
Weighted average fair value of options granted (in dollars per share) | $ 13.12 | $ 15.90 | $ 11.79 |
Intrinsic value of options exercised | $ 2 | $ 15 | $ 19 |
Cash proceeds received from option exercises | 9 | 18 | 22 |
Tax benefit of options exercised | 3 | 5 | |
Fair value of shares vested | $ 8 | $ 7 | $ 6 |
Stock Option [Member] | Director Compensation Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Term life of options (in years) | P10Y | ||
Vesting periods, maximum (in years) | 3 years | ||
Nonvested Options [Member] | |||
Summary of activity of stock option awards [Roll Forward] | |||
Outstanding at beginning of period (in shares) | 1,298,800 | ||
Granted (in shares) | 786,000 | ||
Vested (in shares) | (608,200) | ||
Cancelled forfeited or expired (in shares) | (74,900) | ||
Outstanding at end of period (in shares) | 1,401,700 | 1,298,800 | |
Outstanding at beginning of period (in dollars per share) | $ 13.63 | ||
Granted (in dollars per share) | 13.12 | ||
Vested (in dollars per share) | 12.89 | ||
Cancelled, forfeited, or expired (in dollars per share) | 13.43 | ||
Outstanding at end of year (in dollars per share) | $ 13.68 | $ 13.63 | |
Unrecognized compensation expense before tax for these same type awards | $ 5 | ||
Amortization life of unrecognized compensation expense before tax for these same type awards (in years) | 2 years | ||
Restricted Stock Units (RSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 189,000 | 160,000 | 172,000 |
Other Share-Based Compensation Awards [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense recognized in selling, general and administrative expense | $ 50 | $ 55 | $ 44 |
Summary of activity of stock option awards [Roll Forward] | |||
Unrecognized compensation expense before tax for these same type awards | $ 55 | ||
Amortization life of unrecognized compensation expense before tax for these same type awards (in years) | 2 years | ||
Performance Shares [Member] | Long term performance shares award 2017-2019 cycle [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 357,000 | ||
Performance Shares [Member] | Long term performance shares award 2018-2020 cycle [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 310,000 | ||
Performance Shares [Member] | Long term performance shares award 2019-2021 cycle [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 412,000 |
SHARE-BASED COMPENSATION PLAN_4
SHARE-BASED COMPENSATION PLANS AND AWARDS Part 2 (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |||
Share-based compensation expense, retirement eligibility preceding the requisite vesting period | $ 3 | $ 3 | $ 2 |
Remaining contractual term and weighted average exercise prices of stock options [Abstract] | |||
Number Outstanding at end of period (in shares) | 3,479,300 | ||
Weighted-Average Remaining Contractual Life (in years) | 6 years 9 months 18 days | ||
Weighted-Average Exercise Price (in dollars per share) | $ 80 | ||
Number Exercisable at end of period (in shares) | 2,077,600 | ||
Weighted-Average Exercise Price (in dollars per share) | $ 74 | ||
Exercise price of options lower range (in dollars per share) | 38 | ||
Exercise prices of options upper range (in dollars per share) | $ 104 | ||
Prices of $38-$50 [Member] | |||
Remaining contractual term and weighted average exercise prices of stock options [Abstract] | |||
Number Outstanding at end of period (in shares) | 176,700 | ||
Weighted-Average Remaining Contractual Life (in years) | 1 year 6 months | ||
Weighted-Average Exercise Price (in dollars per share) | $ 39 | ||
Number Exercisable at end of period (in shares) | 176,700 | ||
Weighted-Average Exercise Price (in dollars per share) | $ 39 | ||
Exercise price of options lower range (in dollars per share) | 38 | ||
Exercise prices of options upper range (in dollars per share) | $ 50 | ||
Prices of $51-$73 [Member] | |||
Remaining contractual term and weighted average exercise prices of stock options [Abstract] | |||
Number Outstanding at end of period (in shares) | 720,500 | ||
Weighted-Average Remaining Contractual Life (in years) | 5 years 10 months 24 days | ||
Weighted-Average Exercise Price (in dollars per share) | $ 67 | ||
Number Exercisable at end of period (in shares) | 625,100 | ||
Weighted-Average Exercise Price (in dollars per share) | $ 66 | ||
Exercise price of options lower range (in dollars per share) | 51 | ||
Exercise prices of options upper range (in dollars per share) | $ 73 | ||
Prices of $74-$89 [Member] | |||
Remaining contractual term and weighted average exercise prices of stock options [Abstract] | |||
Number Outstanding at end of period (in shares) | 1,985,100 | ||
Weighted-Average Remaining Contractual Life (in years) | 7 years 1 month 6 days | ||
Weighted-Average Exercise Price (in dollars per share) | $ 81 | ||
Number Exercisable at end of period (in shares) | 1,076,800 | ||
Weighted-Average Exercise Price (in dollars per share) | $ 79 | ||
Exercise price of options lower range (in dollars per share) | 74 | ||
Exercise prices of options upper range (in dollars per share) | $ 89 | ||
Prices of $90-$104 [Member] | |||
Remaining contractual term and weighted average exercise prices of stock options [Abstract] | |||
Number Outstanding at end of period (in shares) | 597,000 | ||
Weighted-Average Remaining Contractual Life (in years) | 8 years 2 months 12 days | ||
Weighted-Average Exercise Price (in dollars per share) | $ 104 | ||
Number Exercisable at end of period (in shares) | 199,000 | ||
Weighted-Average Exercise Price (in dollars per share) | $ 104 | ||
Exercise price of options lower range (in dollars per share) | 90 | ||
Exercise prices of options upper range (in dollars per share) | $ 104 | ||
Stock Option [Member] | |||
Remaining contractual term and weighted average exercise prices of stock options [Abstract] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Aggregate Intrinsic Value | $ 18 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value | $ 17 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term | 5 years 6 months |
SUPPLEMENTAL CASH FLOW INFORM_3
SUPPLEMENTAL CASH FLOW INFORMATION (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Supplemental Cash Flow Information [Abstract] | |||
Current assets | $ (5) | $ (47) | $ 13 |
Other assets | 15 | 43 | 29 |
Current liabilities | (82) | (38) | 59 |
Long-term liabilities and equity | (17) | 87 | 43 |
Other items, net | (89) | 45 | 144 |
Interest Paid, Including Capitalized Interest, Operating and Investing Activities [Abstract] | |||
Interest, net of amounts capitalized | 235 | 239 | 263 |
Income Taxes Paid, Net [Abstract] | |||
Income taxes | 217 | 202 | 97 |
Cash Flow, Noncash Investing and Financing Activities Disclosure [Abstract] | |||
Outstanding trade payables related to capital expenditures | 22 | 18 | 27 |
(Gain) loss from equity investments | $ (10) | $ (17) | $ (14) |
SEGMENT INFORMATION Part 1 (Det
SEGMENT INFORMATION Part 1 (Details) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2019USD ($) | Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2019USD ($)Segment | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | ||
Segment Reporting Information [Line Items] | ||||||||||||
Number of Reportable Segments | Segment | 4 | |||||||||||
Sales [Abstract] | ||||||||||||
Sales | $ 2,205 | $ 2,325 | $ 2,363 | $ 2,380 | $ 2,376 | $ 2,547 | $ 2,621 | $ 2,607 | $ 9,273 | $ 10,151 | $ 9,549 | |
Operating Earnings (loss) [Abstract] | ||||||||||||
Income (Loss) from Continuing Operations before Interest Expense, Interest Income, Income Taxes, Noncontrolling Interests, Net | 1,120 | 1,552 | 1,530 | |||||||||
Assets by Segment [Abstract] | ||||||||||||
Assets by Segment | [1] | 16,008 | 15,995 | 16,008 | 15,995 | |||||||
Depreciation and Amortization Expense by Segment [Abstract] | ||||||||||||
Depreciation and amortization expense by segment | 611 | 604 | 587 | |||||||||
Capital Expenditures by Segment [Abstract] | ||||||||||||
Capital expenditure by Segment | 425 | 528 | 649 | |||||||||
Property, Plant and Equipment, Net | 5,571 | 5,600 | 5,571 | 5,600 | 5,607 | |||||||
Additives And Functional Products [Member] | ||||||||||||
Sales [Abstract] | ||||||||||||
Sales | 3,273 | 3,647 | 3,343 | |||||||||
Operating Earnings (loss) [Abstract] | ||||||||||||
Income (Loss) from Continuing Operations before Interest Expense, Interest Income, Income Taxes, Noncontrolling Interests, Net | 496 | 639 | 653 | |||||||||
Assets by Segment [Abstract] | ||||||||||||
Assets by Segment | [1] | 6,387 | 6,545 | 6,387 | 6,545 | |||||||
Depreciation and Amortization Expense by Segment [Abstract] | ||||||||||||
Depreciation and amortization expense by segment | 218 | 219 | 213 | |||||||||
Capital Expenditures by Segment [Abstract] | ||||||||||||
Capital expenditure by Segment | 152 | 150 | 229 | |||||||||
Advanced Materials [Member] | ||||||||||||
Sales [Abstract] | ||||||||||||
Sales | 2,688 | 2,755 | 2,572 | |||||||||
Operating Earnings (loss) [Abstract] | ||||||||||||
Income (Loss) from Continuing Operations before Interest Expense, Interest Income, Income Taxes, Noncontrolling Interests, Net | 517 | 509 | 483 | |||||||||
Assets by Segment [Abstract] | ||||||||||||
Assets by Segment | [1] | 4,415 | 4,456 | 4,415 | 4,456 | |||||||
Depreciation and Amortization Expense by Segment [Abstract] | ||||||||||||
Depreciation and amortization expense by segment | 172 | 169 | 164 | |||||||||
Capital Expenditures by Segment [Abstract] | ||||||||||||
Capital expenditure by Segment | 130 | 187 | 248 | |||||||||
Chemical Intermediates [Member] | ||||||||||||
Sales [Abstract] | ||||||||||||
Sales | 2,443 | 2,831 | 2,728 | |||||||||
Operating Earnings (loss) [Abstract] | ||||||||||||
Income (Loss) from Continuing Operations before Interest Expense, Interest Income, Income Taxes, Noncontrolling Interests, Net | 170 | 308 | 255 | |||||||||
Assets by Segment [Abstract] | ||||||||||||
Assets by Segment | [1] | 2,775 | 2,934 | 2,775 | 2,934 | |||||||
Depreciation and Amortization Expense by Segment [Abstract] | ||||||||||||
Depreciation and amortization expense by segment | 150 | 151 | 148 | |||||||||
Capital Expenditures by Segment [Abstract] | ||||||||||||
Capital expenditure by Segment | 98 | 137 | 116 | |||||||||
Fibers [Member] | ||||||||||||
Sales [Abstract] | ||||||||||||
Sales | 869 | 918 | 852 | |||||||||
Operating Earnings (loss) [Abstract] | ||||||||||||
Income (Loss) from Continuing Operations before Interest Expense, Interest Income, Income Taxes, Noncontrolling Interests, Net | 194 | 257 | 181 | |||||||||
Assets by Segment [Abstract] | ||||||||||||
Assets by Segment | [1] | 1,014 | 978 | 1,014 | 978 | |||||||
Depreciation and Amortization Expense by Segment [Abstract] | ||||||||||||
Depreciation and amortization expense by segment | 64 | 64 | 58 | |||||||||
Capital Expenditures by Segment [Abstract] | ||||||||||||
Capital expenditure by Segment | 42 | 50 | 52 | |||||||||
All Operating Segments [Member] | ||||||||||||
Sales [Abstract] | ||||||||||||
Sales | 9,273 | 10,151 | 9,495 | |||||||||
Operating Earnings (loss) [Abstract] | ||||||||||||
Income (Loss) from Continuing Operations before Interest Expense, Interest Income, Income Taxes, Noncontrolling Interests, Net | 1,377 | 1,713 | 1,572 | |||||||||
Assets by Segment [Abstract] | ||||||||||||
Assets by Segment | [1] | 14,591 | 14,913 | 14,591 | 14,913 | |||||||
Depreciation and Amortization Expense by Segment [Abstract] | ||||||||||||
Depreciation and amortization expense by segment | 604 | 603 | 583 | |||||||||
Capital Expenditures by Segment [Abstract] | ||||||||||||
Capital expenditure by Segment | 422 | 524 | 645 | |||||||||
Other [Member] | ||||||||||||
Sales [Abstract] | ||||||||||||
Sales | 0 | 0 | 54 | |||||||||
Depreciation and Amortization Expense by Segment [Abstract] | ||||||||||||
Depreciation and amortization expense by segment | 7 | 1 | 4 | |||||||||
Capital Expenditures by Segment [Abstract] | ||||||||||||
Capital expenditure by Segment | 3 | 4 | 4 | |||||||||
Corporate Assets [Member] | ||||||||||||
Assets by Segment [Abstract] | ||||||||||||
Assets by Segment | [1] | 1,417 | 1,082 | 1,417 | 1,082 | |||||||
UNITED STATES | ||||||||||||
Sales [Abstract] | ||||||||||||
Sales | 3,720 | 4,118 | 3,999 | |||||||||
Capital Expenditures by Segment [Abstract] | ||||||||||||
Property, Plant and Equipment, Net | 4,178 | 4,228 | 4,178 | 4,228 | 4,203 | |||||||
All Foreign Countries [Member] | ||||||||||||
Sales [Abstract] | ||||||||||||
Sales | 5,553 | 6,033 | 5,550 | |||||||||
Capital Expenditures by Segment [Abstract] | ||||||||||||
Property, Plant and Equipment, Net | $ 1,393 | $ 1,372 | 1,393 | 1,372 | 1,404 | |||||||
Corporate, Non-Segment [Member] | Other Nonoperating Income (Expense) [Member] | ||||||||||||
Operating Earnings (loss) [Abstract] | ||||||||||||
Income (Loss) from Continuing Operations before Interest Expense, Interest Income, Income Taxes, Noncontrolling Interests, Net | (9) | (24) | (16) | |||||||||
Corporate, Non-Segment [Member] | Growth initiatives and businesses not allocated to operating segments | ||||||||||||
Operating Earnings (loss) [Abstract] | ||||||||||||
Income (Loss) from Continuing Operations before Interest Expense, Interest Income, Income Taxes, Noncontrolling Interests, Net | (102) | (114) | (114) | |||||||||
Corporate, Non-Segment [Member] | Pension and other postretirement benefit plans income (expense), net not allocated to operating segments | ||||||||||||
Operating Earnings (loss) [Abstract] | ||||||||||||
Income (Loss) from Continuing Operations before Interest Expense, Interest Income, Income Taxes, Noncontrolling Interests, Net | (97) | (17) | 93 | |||||||||
Corporate, Non-Segment [Member] | Acquisition integration and transaction costs [Member] | ||||||||||||
Operating Earnings (loss) [Abstract] | ||||||||||||
Income (Loss) from Continuing Operations before Interest Expense, Interest Income, Income Taxes, Noncontrolling Interests, Net | $ (49) | $ (6) | $ (5) | |||||||||
[1] | The chief operating decision maker holds operating segment management accountable for accounts receivable, inventory, fixed assets, goodwill, and intangible assets. |
SEGMENT INFORMATION Part 2 (Det
SEGMENT INFORMATION Part 2 (Details) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Additives And Functional Products [Member] | Coatings and Inks Additives Product Line [Member] | |||
Revenue from External Customer [Line Items] | |||
Sales Revenue product line percentage of total segment revenue | 24.00% | 23.00% | 23.00% |
Additives And Functional Products [Member] | Adhesives Resins Product Line Member | |||
Revenue from External Customer [Line Items] | |||
Sales Revenue product line percentage of total segment revenue | 15.00% | 16.00% | 18.00% |
Additives And Functional Products [Member] | Tire Additives Product Line [Member] | |||
Revenue from External Customer [Line Items] | |||
Sales Revenue product line percentage of total segment revenue | 16.00% | 17.00% | 17.00% |
Additives And Functional Products [Member] | Care Chemicals Product LIne [Member] | |||
Revenue from External Customer [Line Items] | |||
Sales Revenue product line percentage of total segment revenue | 18.00% | 17.00% | 17.00% |
Additives And Functional Products [Member] | Specialty Fluids Product Line [Member] | |||
Revenue from External Customer [Line Items] | |||
Sales Revenue product line percentage of total segment revenue | 14.00% | 13.00% | 13.00% |
Additives And Functional Products [Member] | Animal Nutrition and Crop Protection [Member] | |||
Revenue from External Customer [Line Items] | |||
Sales Revenue product line percentage of total segment revenue | 13.00% | 14.00% | 12.00% |
Advanced Materials [Member] | Specialty Plastics Product Line [Member] | |||
Revenue from External Customer [Line Items] | |||
Sales Revenue product line percentage of total segment revenue | 49.00% | 49.00% | 51.00% |
Advanced Materials [Member] | Advanced Interlayers Product Line [Member] | |||
Revenue from External Customer [Line Items] | |||
Sales Revenue product line percentage of total segment revenue | 32.00% | 33.00% | 33.00% |
Advanced Materials [Member] | Performance Films Product Line [Member] | |||
Revenue from External Customer [Line Items] | |||
Sales Revenue product line percentage of total segment revenue | 19.00% | 18.00% | 16.00% |
Chemical Intermediates [Member] | Intermediates product line [Member] | |||
Revenue from External Customer [Line Items] | |||
Sales Revenue product line percentage of total segment revenue | 59.00% | 60.00% | 64.00% |
Chemical Intermediates [Member] | Plasticizers Product Line [Member] | |||
Revenue from External Customer [Line Items] | |||
Sales Revenue product line percentage of total segment revenue | 21.00% | 20.00% | 19.00% |
Chemical Intermediates [Member] | Functional Amines Product Line [Member] | |||
Revenue from External Customer [Line Items] | |||
Sales Revenue product line percentage of total segment revenue | 20.00% | 20.00% | 17.00% |
Fibers [Member] | Acetate Tow Product Line Member | |||
Revenue from External Customer [Line Items] | |||
Sales Revenue product line percentage of total segment revenue | 68.00% | 69.00% | 77.00% |
Fibers [Member] | Acetyl Chemical Products [Member] | |||
Revenue from External Customer [Line Items] | |||
Sales Revenue product line percentage of total segment revenue | 15.00% | 15.00% | 15.00% |
Fibers [Member] | Acetate Yarn [Member] | |||
Revenue from External Customer [Line Items] | |||
Sales Revenue product line percentage of total segment revenue | 12.00% | 10.00% | 8.00% |
Fibers [Member] | Nonwovens [Member] | |||
Revenue from External Customer [Line Items] | |||
Sales Revenue product line percentage of total segment revenue | 5.00% | 6.00% | 0.00% |
Geographic Concentration Risk [Member] | North America [Member] | Additives And Functional Products [Member] | |||
Revenue from External Customer [Line Items] | |||
Sales Revenue product line percentage of total segment revenue | 37.00% | 36.00% | 35.00% |
Geographic Concentration Risk [Member] | North America [Member] | Advanced Materials [Member] | |||
Revenue from External Customer [Line Items] | |||
Sales Revenue product line percentage of total segment revenue | 34.00% | 35.00% | 36.00% |
Geographic Concentration Risk [Member] | North America [Member] | Chemical Intermediates [Member] | |||
Revenue from External Customer [Line Items] | |||
Sales Revenue product line percentage of total segment revenue | 64.00% | 64.00% | 68.00% |
Geographic Concentration Risk [Member] | North America [Member] | Fibers [Member] | |||
Revenue from External Customer [Line Items] | |||
Sales Revenue product line percentage of total segment revenue | 25.00% | 26.00% | 22.00% |
Geographic Concentration Risk [Member] | Asia Pacific [Member] | Additives And Functional Products [Member] | |||
Revenue from External Customer [Line Items] | |||
Sales Revenue product line percentage of total segment revenue | 24.00% | 24.00% | 23.00% |
Geographic Concentration Risk [Member] | Asia Pacific [Member] | Advanced Materials [Member] | |||
Revenue from External Customer [Line Items] | |||
Sales Revenue product line percentage of total segment revenue | 32.00% | 33.00% | 33.00% |
Geographic Concentration Risk [Member] | Asia Pacific [Member] | Chemical Intermediates [Member] | |||
Revenue from External Customer [Line Items] | |||
Sales Revenue product line percentage of total segment revenue | 14.00% | 15.00% | 14.00% |
Geographic Concentration Risk [Member] | Asia Pacific [Member] | Fibers [Member] | |||
Revenue from External Customer [Line Items] | |||
Sales Revenue product line percentage of total segment revenue | 32.00% | 33.00% | 37.00% |
Geographic Concentration Risk [Member] | EMEA [Member] | Additives And Functional Products [Member] | |||
Revenue from External Customer [Line Items] | |||
Sales Revenue product line percentage of total segment revenue | 33.00% | 34.00% | 36.00% |
Geographic Concentration Risk [Member] | EMEA [Member] | Advanced Materials [Member] | |||
Revenue from External Customer [Line Items] | |||
Sales Revenue product line percentage of total segment revenue | 28.00% | 27.00% | 26.00% |
Geographic Concentration Risk [Member] | EMEA [Member] | Chemical Intermediates [Member] | |||
Revenue from External Customer [Line Items] | |||
Sales Revenue product line percentage of total segment revenue | 15.00% | 15.00% | 12.00% |
Geographic Concentration Risk [Member] | EMEA [Member] | Fibers [Member] | |||
Revenue from External Customer [Line Items] | |||
Sales Revenue product line percentage of total segment revenue | 39.00% | 37.00% | 37.00% |
Geographic Concentration Risk [Member] | Latin America [Member] | Additives And Functional Products [Member] | |||
Revenue from External Customer [Line Items] | |||
Sales Revenue product line percentage of total segment revenue | 6.00% | 6.00% | 6.00% |
Geographic Concentration Risk [Member] | Latin America [Member] | Advanced Materials [Member] | |||
Revenue from External Customer [Line Items] | |||
Sales Revenue product line percentage of total segment revenue | 6.00% | 5.00% | 5.00% |
Geographic Concentration Risk [Member] | Latin America [Member] | Chemical Intermediates [Member] | |||
Revenue from External Customer [Line Items] | |||
Sales Revenue product line percentage of total segment revenue | 7.00% | 6.00% | 6.00% |
Geographic Concentration Risk [Member] | Latin America [Member] | Fibers [Member] | |||
Revenue from External Customer [Line Items] | |||
Sales Revenue product line percentage of total segment revenue | 4.00% | 4.00% | 4.00% |
QUARTERLY SALES AND EARNINGS _3
QUARTERLY SALES AND EARNINGS DATA-UNAUDITED QUARTERLY SALES AND EARNINGS DATA-UNAUDITED (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||||||||||||
Quarterly Financial Data [Abstract] | ||||||||||||||||||||||
Sales | $ 2,205 | $ 2,325 | $ 2,363 | $ 2,380 | $ 2,376 | $ 2,547 | $ 2,621 | $ 2,607 | $ 9,273 | $ 10,151 | $ 9,549 | |||||||||||
Gross Profit | 497 | 574 | 589 | 574 | 466 | 728 | 704 | 581 | 2,234 | 2,479 | 2,363 | |||||||||||
Asset impairments and restructuring charges (gains), net | 74 | 2 | 18 | 32 | 39 | 0 | 4 | 2 | 126 | 45 | 8 | |||||||||||
Net earnings attributable to Eastman | $ 26 | $ 266 | $ 258 | $ 209 | $ 34 | $ 412 | $ 344 | $ 290 | $ 759 | $ 1,080 | $ 1,384 | |||||||||||
Earnings Per Share [Abstract] | ||||||||||||||||||||||
Basic earnings per share attributable to Eastman | $ 0.19 | [1] | $ 1.95 | [1] | $ 1.87 | [1] | $ 1.50 | [1] | $ 0.25 | [1] | $ 2.93 | [1] | $ 2.42 | [1] | $ 2.03 | [1] | $ 5.52 | [2] | $ 7.65 | [2] | $ 9.56 | [2] |
Diluted earnings per share attributable to Eastman | $ 0.19 | [1] | $ 1.93 | [1] | $ 1.85 | [1] | $ 1.49 | [1] | $ 0.24 | [1] | $ 2.89 | [1] | $ 2.39 | [1] | $ 2 | [1] | $ 5.48 | [2] | $ 7.56 | [2] | $ 9.47 | [2] |
[1] | Each quarter is calculated as a discrete period; the sum of the four quarters may not equal the calculated full year amount. | |||||||||||||||||||||
[2] | EPS is calculated using whole dollars and shares. |
RESERVE ROLLFORWARDS (Details)
RESERVE ROLLFORWARDS (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | |||||
Deferred Tax Assets, Valuation Allowance | $ 453 | $ 487 | [1] | ||
Movement In Valuation Allowances And Reserves Roll Forward | |||||
Beginning Balance | 1,177 | 1,063 | $ 919 | ||
Charges (Credits) to Cost and Expense | (100) | 132 | 163 | ||
Charged to Other Accounts | (14) | 1 | 11 | ||
Deductions | 16 | 19 | 30 | ||
Ending Balance | 1,047 | 1,177 | 1,063 | ||
SEC Schedule, 12-09, Allowance, Credit Loss [Member] | |||||
Movement In Valuation Allowances And Reserves Roll Forward | |||||
Beginning Balance | 11 | 12 | 10 | ||
Charges (Credits) to Cost and Expense | 0 | 0 | 3 | ||
Charged to Other Accounts | 0 | 0 | 0 | ||
Deductions | 0 | 1 | 1 | ||
Ending Balance | 11 | 11 | 12 | ||
LIFO Inventory [Member] | |||||
Movement In Valuation Allowances And Reserves Roll Forward | |||||
Beginning Balance | 337 | 288 | 264 | ||
Charges (Credits) to Cost and Expense | (89) | 44 | 24 | ||
Charged to Other Accounts | 0 | 5 | 0 | ||
Deductions | 0 | 0 | 0 | ||
Ending Balance | 248 | 337 | 288 | ||
Non-environmental asset retirement obligation Costs [Member] | |||||
Movement In Valuation Allowances And Reserves Roll Forward | |||||
Beginning Balance | 46 | 49 | 46 | ||
Charges (Credits) to Cost and Expense | 2 | (2) | 2 | ||
Charged to Other Accounts | 0 | 0 | 1 | ||
Deductions | 0 | 1 | 0 | ||
Ending Balance | 48 | 46 | 49 | ||
Environmental Contingencies [Member] | |||||
Movement In Valuation Allowances And Reserves Roll Forward | |||||
Beginning Balance | 296 | 304 | 321 | ||
Charges (Credits) to Cost and Expense | 7 | 9 | 8 | ||
Charged to Other Accounts | 0 | 0 | 4 | ||
Deductions | 16 | 17 | 29 | ||
Ending Balance | 287 | 296 | 304 | ||
SEC Schedule, 12-09, Valuation Allowance, Deferred Tax Asset [Member] | |||||
Movement In Valuation Allowances And Reserves Roll Forward | |||||
Beginning Balance | 487 | [2] | 410 | 278 | |
Charges (Credits) to Cost and Expense | (20) | 81 | [2] | 126 | |
Charged to Other Accounts | (14) | (4) | [2] | 6 | |
Deductions | 0 | 0 | [2] | 0 | |
Ending Balance | $ 453 | 487 | [2] | $ 410 | |
Previously Reported [Member] | |||||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | |||||
Deferred Tax Assets, Valuation Allowance | $ 466 | ||||
[1] | Revised from Note 7, "Income Taxes" , to the Company's 2018 Annual Report on Form 10-K, which reported net operating loss carryforwards as $708 million , valuation allowance as $466 million , and investments as $(274) million . | ||||
[2] | Revised from Note 21, "Reserve Rollforwards" , to the Company's 2018 Annual Report on Form 10-K, which reported deferred tax valuation allowance as $466 million . |