Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2020USD ($)shares | |
Entity Information [Line Items] | |
Document Type | 10-K |
Document Annual Report | true |
Document Period End Date | Dec. 31, 2020 |
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 |
ICFR Auditor Attestation Flag | true |
Entity Shell Company | false |
Entity Public Float | $ | $ 9,408,918,961 |
Entity Common Stock, Shares Outstanding (in shares) | shares | 135,861,854 |
Documents Incorporated by Reference | Portions of the registrant's definitive Proxy Statement for the 2021 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 | 2020 |
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, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Income Statement [Abstract] | ||||
Sales | $ 8,473 | $ 9,273 | $ 10,151 | |
Cost of sales | 6,498 | 7,039 | 7,672 | |
Gross profit | 1,975 | 2,234 | 2,479 | |
Selling, general and administrative expenses | 654 | 691 | 721 | |
Research and development expenses | 226 | 234 | 235 | |
Asset impairments and restructuring charges, net | 227 | 126 | 45 | |
Other components of post-employment (benefit) cost, net | 119 | 60 | (21) | |
Other (income) charges, net | 8 | 3 | (53) | |
Earnings before interest and taxes | 741 | 1,120 | 1,552 | |
Net interest expense | 210 | 218 | 235 | |
Early debt extinguishment costs | 1 | 0 | 7 | |
Earnings before income taxes | 530 | 902 | 1,310 | |
Provision for income taxes | 41 | 140 | 226 | |
Net earnings | 489 | 762 | 1,084 | |
Less: Net earnings attributable to noncontrolling interest | 11 | 3 | 4 | |
Net earnings attributable to Eastman | $ 478 | $ 759 | $ 1,080 | |
Basic earnings per share attributable to Eastman | ||||
Basic earnings per share attributable to Eastman | [1] | $ 3.53 | $ 5.52 | $ 7.65 |
Diluted earnings per share attributable to Eastman | ||||
Diluted earnings per share attributable to Eastman | [1] | $ 3.50 | $ 5.48 | $ 7.56 |
Comprehensive Income | ||||
Net earnings including noncontrolling interest | $ 489 | $ 762 | $ 1,084 | |
Other comprehensive income (loss), net of tax: | ||||
Change in cumulative translation adjustment | (29) | 45 | (13) | |
Defined benefit pension and other postretirement benefit plans [Abstract] | ||||
Prior service credit arising during the period | 9 | 0 | 0 | |
Amortization of unrecognized prior service credits included in net periodic costs | (28) | (29) | (30) | |
Derivatives and hedging [Abstract] | ||||
Unrealized gain (loss) during period | (34) | (20) | 22 | |
Reclassification adjustment for (gains) losses included in net income, net | 23 | 15 | (15) | |
Total other comprehensive income (loss), net of tax | (59) | 11 | (36) | |
Comprehensive income including noncontrolling interest | 430 | 773 | 1,048 | |
Less: Net earnings attributable to noncontrolling interest | 11 | 3 | 4 | |
Comprehensive income attributable to Eastman | 419 | 770 | 1,044 | |
Retained Earnings | ||||
Retained earnings at beginning of period | 7,965 | 7,573 | 6,802 | |
Net earnings attributable to Eastman | 478 | 759 | 1,080 | |
Cash dividends declared | [2] | (363) | (347) | (325) |
Retained earnings at end of period | 8,080 | 7,965 | 7,573 | |
Cumulative Effect, Period of Adoption, Adjustment [Member] | ||||
Retained Earnings | ||||
Retained earnings at beginning of period | (20) | 16 | ||
Retained earnings at end of period | $ 0 | $ (20) | $ 16 | |
[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, 2020 | Dec. 31, 2019 | |
Current assets | |||
Cash and cash equivalents | $ 564 | $ 204 | |
Trade receivables, net of allowance for credit losses | 1,033 | 980 | |
Miscellaneous receivables | 482 | 395 | |
Inventories | 1,379 | 1,662 | |
Other current assets | 83 | 80 | |
Total current assets | 3,541 | 3,321 | |
Properties | |||
Properties and equipment at cost | 13,531 | 13,081 | |
Less: Accumulated depreciation | 7,982 | 7,510 | |
Net properties | 5,549 | 5,571 | |
Goodwill | 4,465 | 4,431 | |
Intangible assets, net of accumulated amortization | 1,792 | 2,011 | |
Other noncurrent assets | 736 | 674 | |
Total assets | [1] | 16,083 | 16,008 |
Current liabilities | |||
Payables and other current liabilities | 1,689 | 1,618 | |
Borrowings due within one year | 349 | 171 | |
Total current liabilities | 2,038 | 1,789 | |
Long-term borrowings | 5,269 | 5,611 | |
Deferred Income Tax Liabilities, Net | 848 | 915 | |
Post-employment obligations | 1,143 | 1,016 | |
Other long-term liabilities | 677 | 645 | |
Total liabilities | 9,975 | 9,976 | |
Stockholders' equity | |||
Common stock ($0.01 par value per share – 350,000,000 shares authorized; shares issued – 220,641,506 and 219,638,646 for 2020 and 2019, respectively) | 2 | 2 | |
Additional paid-in capital | 2,174 | 2,105 | |
Retained earnings | 8,080 | 7,965 | |
Accumulated other comprehensive loss | (273) | (214) | |
Total stockholders' equity before treasury stock | 9,983 | 9,858 | |
Less: Treasury stock at cost (84,830,450 shares for 2020 and 83,696,398 shares for 2019) | 3,960 | 3,900 | |
Total Eastman stockholders' equity | 6,023 | 5,958 | |
Noncontrolling interest | 85 | 74 | |
Total equity | 6,108 | 6,032 | |
Total liabilities and stockholders' equity | $ 16,083 | $ 16,008 | |
[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, 2020 | Dec. 31, 2019 |
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) | 220,641,506 | 219,638,646 |
Treasury stock at cost (in shares) | 84,830,450 | 83,696,398 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Operating activities | |||
Net earnings | $ 489 | $ 762 | $ 1,084 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | |||
Depreciation and amortization | 574 | 611 | 604 |
Mark-to-market pension and other postretirement benefit plans (gain) loss, net | 240 | 143 | 99 |
Asset impairment charges | 146 | 72 | 39 |
Early debt extinguishment costs | 1 | 0 | 7 |
Gain from sale of assets | 0 | 0 | (4) |
Gain from property insurance | 0 | 0 | (65) |
Provision for (benefit from) deferred income taxes | (111) | 23 | (51) |
Changes in operating assets and liabilities, net of effect of acquisitions and divestitures: | |||
(Increase) decrease in trade receivables | (31) | 170 | 16 |
(Increase) decrease in inventories | 291 | (80) | (224) |
Increase (decrease) in trade payables | (100) | (27) | 90 |
Pension and other postretirement contributions (in excess of) less than expenses | (136) | (119) | (152) |
Variable compensation (in excess of) less than expenses | 87 | 38 | 55 |
Other items, net | 5 | (89) | 45 |
Net cash provided by operating activities | 1,455 | 1,504 | 1,543 |
Investing activities | |||
Additions to properties and equipment | (383) | (425) | (528) |
Proceeds from property insurance | 0 | 0 | 65 |
Proceeds from sale of assets and businesses | 0 | 0 | 5 |
Acquisitions, net of cash acquired | (1) | (48) | (3) |
Other items, net | (10) | (7) | (2) |
Net cash used in investing activities | (394) | (480) | (463) |
Financing activities | |||
Net increase (decrease) in commercial paper and other borrowings | (121) | (70) | (146) |
Proceeds from borrowings | 249 | 460 | 1,604 |
Repayment of borrowings | (435) | (760) | (1,774) |
Dividends paid to stockholders | (358) | (343) | (318) |
Treasury stock purchases | (60) | (325) | (400) |
Other items, net | 21 | (5) | (6) |
Net cash used in financing activities | (704) | (1,043) | (1,040) |
Effect of exchange rate changes on cash and cash equivalents | 3 | (3) | (5) |
Net change in cash and cash equivalents | 360 | (22) | 35 |
Cash and cash equivalents at beginning of period | 204 | 226 | 191 |
Cash and cash equivalents at end of period | $ 564 | $ 204 | $ 226 |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2020 | |
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") 2016-13 Financial Instruments - Credit Losses: On January 1, 2020, Eastman adopted this standard, and related releases, under the various required transition methods. 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. The adoption of this standard did not result in a material impact on 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: On January 1, 2020, Eastman adopted this standard that is a part of the Financial Accounting Standards Board's ("FASB") 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. The adoption under the various required transition methods did not impact the Company's related disclosures. ASU 2018-14 Retirement Benefits - Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans: In fourth quarter 2020, Eastman adopted this standard which applied the disclosures changes on a retrospective basis to all periods presented. 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 resulting from changes in the benefit obligation for the period and weighted-average interest crediting rates for cash balance plans. The adoption of the disclosure changes did not materially impact the Company's related disclosures. Please see Note 10, "Retirement Plans", for these disclosure changes. ASU 2018-18 Collaborative Arrangements - Clarifying the Interaction between Topic 808 (Collaborative Arrangements) and Topic 606 (Revenue from Contracts with Customers): On January 1, 2020, Eastman adopted this standard, retrospectively to the date of the initial application of Topic 606 on January 1, 2017, that provides 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. The adoption of this standard did not impact the Company's financial statements and related disclosures. ASU 2019-01 Leases - Codification Improvements: On January 1, 2020, Eastman adopted this standard which was applied as of the adoption date and under the same transition methodology of ASU 2016-02 Lease previously adopted on January 1, 2019. The FASB issued this update in response to stakeholder inquiries regarding the new leasing standard. The adoption of this standard did not impact the Company's financial statements and related disclosures. ASU 2020-04 Reference Rate Reform (Topic 848) - Facilitation of the Effects of Reference Rate Reform on Financial Reporting: Eastman adopted this standard when issued and effective on March 12, 2020. The FASB issued this update to provide optional guidance for a limited period of time to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform (the global financial markets transition in contracts, hedging relationships, and other transactions away from referencing the London Interbank Offered Rate (LIBOR) and other interbank offered rates and toward new reference rates) on financial reporting. As reference reform has not impacted Eastman as of the issuance and effective date, the adoption of this standard did not impact the Company's financial statements and related disclosures. Accounting Standards Issued But Not Adopted as of December 31, 2020 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. Adoption methods vary based on the specific items impacted. Management does not expect that changes required by the new standard will materially impact the Company's financial statements and related disclosures. ASU 2020-01 Investments - Equity Securities (Topic 321), Investments - Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815) - Clarifying the Interactions between Topic 321, Topic 323, and Topic 815: In January 2020, the FASB issued a clarification that an entity should consider observable transactions that require the application or discontinuance of the equity method of accounting for the purposes of applying the measurement alternative and clarification that certain forward contracts and purchased options to purchase securities that, upon settlement, would be accounted for under the equity method of accounting. This standard is effective for fiscal years beginning after December 15, 2020, and interim periods within those fiscal years. The update is to be applied prospectively. Management does not expect that changes required by the new standard will materially impact 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 $18 million and $4 million as of December 31, 2020 or December 31, 2019, respectively, and are included as a part of "Payables and other current liabilities" and "Other long-term liabilities" in the Consolidated Statements of Financial Position. Contract assets were $62 million and $65 million as of December 31, 2020 and December 31, 2019, 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 and other postretirement benefits plans that provide eligible employees with retirement benefits. 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 associated estimated asset retirement costs are capitalized as part of the carrying value of the long-lived assets and depreciated over their useful life and charged to "Cost of sales" in the Consolidated Statements of Earnings, Comprehensive Income and Retained Earnings. 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 "Cost of sales" in the Consolidated Statements of Earnings, Comprehensive Income and Retained Earnings, as incurred. For additional information see Note 12, "Environmental Matters and Asset Retirement Obligations". Share-Based Compensation Eastman recognizes compensation expense in "Selling, general and administrative expense" in the Consolidated Statements of Earnings, Comprehensive Income and Retained Earnings 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 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 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. The recoverability of our deferred tax assets are evaluated each quarter by assessing the likelihood of future profitability and available tax planning strategies that could be implemented to realize our net deferred tax assets. 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 calculation of income tax liabilities involves uncertainties in the application of complex tax laws and regulations, which are subject to legal interpretation and management judgment. Eastman's income tax returns are regularly examined by federal, state and foreign tax authorities, and those audits may result in proposed adjustments. The Company has evaluated these potential issues under the more-likely-than-not standard of the accounting literature. A tax position is recognized if it meets this standard and is measured at the largest amount of benefit that has a greater than 50 percent likelihood of being realized. Such judgments and estimates may change based on audit settlements, court cases and interpretation of tax laws and regulations. The Company accrues interest related to unrecognized income tax positions, which is included as a component of the income tax provision on the balance sheet. The Company recognizes income tax positions that meet the more likely than not threshold. The accrued interest related to unrecognized income tax positions and taxes resulting from the global intangible low-tax income ("GILTI") are recorded as a component of the income tax provision. For additional information, see Note 7, "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 Credit Losses Trade accounts receivable are recorded at the invoiced amount and do not bear interest. Eastman maintains allowances for estimated credit losses, which are developed at a market, country, and region level based on risk of collection as well as current and forecasted economic conditions. The Company calculates the allowance based on an assessment of the risk when the accounts receivable is recognized. Write-offs are recorded at the time a customer receivable is deemed uncollectible. Allowance for credit losses was $14 million and $11 million as of December 31, 2020 and December 31, 2019, respectively. 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 the lower of 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 in "Cost of sales" in the Consolidated Statements of Earnings, Comprehensive Income and Retained 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" in the Consolidated Statements of Earnings, Comprehensive Income and Retained Earnings. 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" in the Consolidated Statements of Earnings, Comprehensive Income and Retained Earnings. 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. Goodwill Goodwill is an asset determined as the residual of the purchase price over the fair value of identified assets and liabilities acquired in a business combination. 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, including some unobservable inputs, and applies a discounted cash flow model in testing the carrying value of goodwill for each reporting unit. 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 estimated weighted average cost of capital ("WACC") plus a risk premium. For additional information, see Note 4, "Goodwill and Other Intangible Assets". Leases There are two types of leases: finance and operating. Both types of leases have associated right-to-use assets and lease liabilities that are valued at the present value of the lease payments and recognized on the Consolidated Statements of Financial Position. 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. The Company elected the accounting policy not to apply the recognition and measurement requirements to short-term leases with a term of 12 months or less and do not include a bargain purchase option. Residual guarantee payments that become probable and estimable are recognized as rent expense over the remaining life of the applicable lease. For lease accounting policies, 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. For additional information, see Note 5, "Equity Investments". 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. The Company's derivative instruments are recognized as either assets or liabilities on the Consolidated Statements of Financial Position and measured at fair value. Hedge accounting will be discontinued prospectively for all hedges that no longer qualify for hedge accounting treatment. For additional information, see Note 9, "Derivative and Non-Derivative Financial Instruments". Litigation and Contingent Liabilities 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. 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 has an off balance sheet, uncommitted accounts receivable factoring program 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 routine 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 2020 and 2019 were $1.5 billion and $0.9 billion, respectively. 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 sell 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. |
INVENTORIES
INVENTORIES | 12 Months Ended |
Dec. 31, 2020 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | INVENTORIES December 31, (Dollars in millions) 2020 2019 Finished goods $ 891 $ 1,114 Work in process 203 220 Raw materials and supplies 511 576 Total inventories at FIFO or average cost 1,605 1,910 Less: LIFO reserve 226 248 Total inventories $ 1,379 $ 1,662 Inventories valued on the LIFO method were approximately 50 percent of total inventories at both December 31, 2020 and December 31, 2019. In 2020, a $13 million LIFO decrement was recognized due to inventory reduction actions, resulting in an increase to "Cost of sales" in the Consolidated Statements of Earnings, Comprehensive Income and Retained Earnings and a decrease to "Inventories" in the Consolidated Statements of Financial Position. |
PROPERTIES AND ACCUMULATED DEPR
PROPERTIES AND ACCUMULATED DEPRECIATION | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
PROPERTIES AND ACCUMULATED DEPRECIATION | PROPERTIES AND ACCUMULATED DEPRECIATION December 31, (Dollars in millions) 2020 2019 Properties Land $ 163 $ 158 Buildings 1,824 1,450 Machinery and equipment 11,494 11,117 Construction in progress 50 356 Properties and equipment at cost $ 13,531 $ 13,081 Less: Accumulated depreciation 7,982 7,510 Net properties $ 5,549 $ 5,571 Depreciation expense was $445 million, $450 million, and $437 million for 2020, 2019, and 2018, respectively. Cumulative construction-period interest of $100 million and $98 million, reduced by accumulated depreciation of $41 million and $38 million, is included in net properties at December 31, 2020 and 2019, respectively. Eastman capitalized $4 million of interest in 2020, 2019, and 2018. |
GOODWILL AND OTHER INTANGIBLE A
GOODWILL AND OTHER INTANGIBLE ASSETS | 12 Months Ended |
Dec. 31, 2020 | |
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, 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 Currency translation adjustments 20 10 4 — 34 Balance at December 31, 2020 $ 2,397 $ 1,292 $ 766 $ 10 $ 4,465 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 2020 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 WACC, and a projected long-term growth rate. As a result of the annual goodwill impairment testing performed during fourth quarter 2020, fair values were determined to substantially exceed the carrying values for each reporting unit tested with the exception of tire additives (part of the Additives & Functional Products ("AFP") segment). In fourth quarter 2019, as a result of the annual impairment test of goodwill, the Company recognized goodwill impairments of $45 million in the crop protection reporting unit. The impairment was primarily due to the impact of 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 crop protection reporting unit's goodwill after the reduction for impairment was $190 million as of December 31, 2019. In first quarter 2020, the crop protection reporting unit combined with the care chemicals reporting unit as a result of business management realignment. As of December 31, 2020 and 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. The carrying amounts of intangible assets follow: December 31, 2020 December 31, 2019 (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 $ 1,589 $ 571 $ 1,018 $ 1,566 $ 494 $ 1,072 Technology 7 - 20 687 392 295 677 343 334 Tradenames 25 44 2 42 — — — Other 18 - 37 86 23 63 88 22 66 Indefinite-lived intangible assets: Tradenames 364 — 364 529 — 529 Other 10 — 10 10 — 10 Total identified intangible assets $ 2,780 $ 988 $ 1,792 $ 2,870 $ 859 $ 2,011 In second quarter 2020, outside of the annual impairment testing process, the Company reviewed the indefinite-lived intangible assets associated with the tire additives reporting unit for impairment. As a result of the review, the Company recognized intangible asset impairments of $123 million in second quarter 2020 in the tire additives reporting unit to reduce the carrying value of the Crystex ™ and Santoflex ™ tradenames to the estimated fair value. The impairments are primarily the result of weakened demand in transportation end markets impacted by the COVID-19 coronavirus global pandemic ("COVID-19") and increased competitive pricing pressure as a result of global capacity increases. Amortization began in third quarter 2020 for the remaining value of the Crystex ™ tradename of $42 million. Additional declines in the market conditions or forecasted revenue could result in additional impairment of indefinite-lived intangible assets. Amortization expense of definite-lived intangible assets was $128 million, $160 million, and $164 million for 2020, 2019, and 2018, respectively. Estimated amortization expense for future periods is $125 million in 2021, $115 million in each year for 2022 through 2024, and $110 million for 2025. The Company will continue to monitor both goodwill and indefinite-lived intangible assets for any indication of events which might require additional testing before the next annual impairment test and could result in material impairment charges. |
EQUITY INVESTMENTS
EQUITY INVESTMENTS | 12 Months Ended |
Dec. 31, 2020 | |
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 ™ |
PAYABLES AND OTHER CURRENT LIAB
PAYABLES AND OTHER CURRENT LIABILITIES | 12 Months Ended |
Dec. 31, 2020 | |
Payables and Accruals [Abstract] | |
PAYABLES AND OTHER CURRENT LIABILITIES | PAYABLES AND OTHER CURRENT LIABILITIES December 31, (Dollars in millions) 2020 2019 Trade creditors $ 799 $ 890 Accrued payrolls, vacation, and variable-incentive compensation 228 176 Accrued taxes 178 89 Post-employment obligations 138 93 Dividends payable to shareholders 94 90 Other 252 280 Total payables and other current liabilities $ 1,689 $ 1,618 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, 2020 | |
Income Tax Disclosure [Abstract] | |
PROVISION FOR INCOME TAXES | INCOME TAXES Components of earnings before income taxes and the provision for U.S. and other income taxes from operations follow: For years ended December 31, (Dollars in millions) 2020 2019 2018 Earnings before income taxes United States $ 164 $ 454 $ 718 Outside the United States 366 448 592 Total $ 530 $ 902 $ 1,310 Provision for income taxes United States Federal Current $ 70 $ 55 $ 161 Deferred (96) 19 (11) Outside the United States Current 77 62 86 Deferred (14) (32) (22) State and other Current 5 — 30 Deferred (1) 36 (18) Total $ 41 $ 140 $ 226 The following represents the deferred tax (benefit) charge recorded as a component of "Accumulated other comprehensive income (loss)" ("AOCI") in the Consolidated Statements of Financial Position: For years ended December 31, (Dollars in millions) 2020 2019 2018 Defined benefit pension and other postretirement benefit plans $ (7) $ (10) $ (10) Derivatives and hedging (4) (2) 3 Total $ (11) $ (12) $ (7) Total income tax expense (benefit) included in the consolidated financial statements was composed of the following: For years ended December 31, (Dollars in millions) 2020 2019 2018 Earnings before income taxes $ 41 $ 140 $ 226 Other comprehensive income (11) (12) (7) Total $ 30 $ 128 $ 219 Differences between the provision for income taxes and income taxes computed using the U.S. Federal statutory income tax rate follow: For years ended December 31, (Dollars in millions) 2020 2019 2018 Amount computed using the statutory rate $ 109 $ 189 $ 274 State income taxes, net 2 36 6 Foreign rate variance (49) (68) (52) Change in reserves for tax contingencies 4 36 21 General business credits (39) (52) (60) U.S. tax on foreign earnings 13 (17) 10 Foreign tax credits — — (12) Tax law changes and tax loss from outside-U.S. entity reorganizations — 7 20 Other 1 9 19 Provision for income taxes $ 41 $ 140 $ 226 Effective income tax rate 8 % 16 % 17 % The 2020 effective tax rate includes a $27 million decrease to the provision for income taxes as a result of a decrease in previously unrecognized tax positions and a $7 million decrease to the provision for income taxes related to adjustments to certain prior year tax returns. 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 2017 Tax Cuts and Jobs Act (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. Income tax incentives, in the form of tax holidays, have been granted to the Company in certain jurisdictions to attract investment and encourage industrial development. The expiration of these tax holidays varies by country. The tax holidays are conditional on the Company meeting certain requirements, including employment and investment thresholds; determination of compliance with these conditions may be subject to challenge by tax authorities in those jurisdictions. No individual tax holiday had a material impact to the Company’s earnings in 2020, 2019, or 2018. The significant components of deferred tax assets and liabilities follow: December 31, (Dollars in millions) 2020 2019 Deferred tax assets Post-employment obligations $ 280 $ 247 Net operating loss carryforwards 619 606 Tax credit carryforwards 216 239 Environmental contingencies 68 68 Unrealized derivative loss 22 18 Other 213 173 Total deferred tax assets 1,418 1,351 Less: Valuation allowance 393 453 Deferred tax assets less valuation allowance $ 1,025 $ 898 Deferred tax liabilities Property, plant, and equipment $ (893) $ (895) Intangible assets (388) (439) Investments (305) (235) Other (175) (178) Total deferred tax liabilities $ (1,761) $ (1,747) Net deferred tax liabilities $ (736) $ (849) As recorded in the Consolidated Statements of Financial Position: Other noncurrent assets $ 112 $ 66 Deferred income tax liabilities (848) (915) Net deferred tax liabilities $ (736) $ (849) All foreign earnings, with the exception of short-term liquid assets on certain foreign subsidiaries, including basis differences, continue to be considered indefinitely reinvested. As of December 31, 2020, unremitted earnings of subsidiaries outside the U.S. totaled approximately $2.7 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 $29 million at December 31, 2020 has been provided against the deferred tax asset resulting from these operating loss carryforwards. At December 31, 2020, foreign net operating loss carryforwards totaled $2.2 billion. Of this total, $700 million will expire in 1 to 20 years and $1.5 billion have no expiration date. A valuation allowance of approximately $217 million has been provided against such net operating loss carryforwards. At December 31, 2020, federal net operating loss carryforwards of $3 million were available to offset future taxable income, which expire from 2028 to 2030. At December 31, 2020, foreign tax credit carryforwards of approximately $56 million were available to reduce possible future U.S. income taxes and which expire from 2021 to 2030. 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 $24 million has been established on a portion of deferred tax assets as of December 31, 2020. At December 31, 2020, 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) 2020 2019 Miscellaneous receivables $ 311 $ 211 Payables and other current liabilities $ 147 $ 36 Other long-term liabilities 83 139 Total income taxes payable $ 230 $ 175 A reconciliation of the beginning and ending amounts of unrecognized tax benefits is as follows: (Dollars in millions) 2020 2019 2018 Balance at January 1 $ 202 $ 182 $ 142 Adjustments based on tax positions related to current year 14 25 9 Adjustments based on tax positions related to prior years 63 (3) 35 Lapse of statute of limitations (22) (2) (4) Balance at December 31 (1) $ 257 $ 202 $ 182 (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) 2020 2019 2018 Balance at January 1 $ 13 $ 10 $ 6 Expense for interest, net of tax 5 5 4 Income for interest, net of tax (5) (2) — Balance at December 31 $ 13 $ 13 $ 10 Accrued penalties related to unrecognized tax positions were immaterial as of December 31, 2020, 2019, and 2018. Eastman files federal income tax returns in the U.S. and income tax returns in various state and foreign jurisdictions. The Company is no longer subject to U.S. Federal income tax examinations by tax authorities for years before 2012 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 2012. 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 2012. 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 $120 million. |
BORROWINGS
BORROWINGS | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
BORROWINGS | BORROWINGS December 31, (Dollars in millions) 2020 2019 Borrowings consisted of: 4.5% notes due January 2021 $ — $ 185 3.5% notes due December 2021 299 298 3.6% notes due August 2022 744 741 1.50% notes due May 2023 (1) 919 840 7 1/4% debentures due January 2024 198 198 7 5/8% debentures due June 2024 43 43 3.8% notes due March 2025 701 695 1.875% notes due November 2026 (1) 609 556 7.60% debentures due February 2027 195 195 4.5% notes due December 2028 493 493 4.8% notes due September 2042 493 493 4.65% notes due October 2044 874 874 Commercial paper and short-term borrowings 50 171 Total borrowings 5,618 5,782 Borrowings due within one year 349 171 Long-term borrowings $ 5,269 $ 5,611 (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 2020, the Company repaid the 4.5% notes due January 2021 ($185 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 Statement of Cash Flows. 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. Loan Agreement, Credit Facility, and Commercial Paper Borrowings In second quarter 2020, the Company borrowed $250 million under a new 364-Day Term Loan Credit Agreement (the "Term Loan") as a precautionary measure due to increased financial market volatility, particularly in the availability and terms of commercial paper, resulting from COVID-19. In third quarter 2020, the Term Loan was repaid using available cash. The early repayment resulted in a charge of $1 million for early debt extinguishment costs which was primarily attributable to related unamortized issuance costs. 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. In first quarter 2020, the Company borrowed a total of $400 million under the Credit Facility. In second quarter 2020, the Company repaid a total of $400 million using available cash. At December 31, 2020 and December 31, 2019, the Company had no outstanding borrowings under the Credit Facility. At December 31, 2020, the Company's commercial paper borrowings were $50 million with a weighted average interest rate of 0.25 percent. At December 31, 2019, the Company's commercial paper borrowings were $170 million with a weighted average interest rate of 2.03 percent. The Credit Facility contains customary covenants, including requirements to maintain certain financial ratios, that determine the events of default, amounts available, and terms of borrowings. In second quarter 2020, the Company amended the Credit Facility and the Term Loan maximum debt covenants to reflect the higher cash balance to enhance liquidity due to, and the expected negative impact on operating results of, COVID-19 and added a new restrictive covenant prohibiting stock repurchases until June 30, 2021 in the event certain financial ratios are exceeded. The Company was in compliance with all applicable covenants at both December 31, 2020 and December 31, 2019. The Company did not renew the $250 million accounts receivable securitization agreement (the "A/R Facility") which expired April 2020. Eastman Chemical Financial Corporation ("ECFC"), a subsidiary of the Company, had an agreement to sell interests in trade receivables under the A/R Facility to a third party purchaser. Third party creditors of ECFC had 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 were subject to interest rates based on a spread over the lender's borrowing costs and ECFC paid a fee to maintain availability of the A/R Facility. In first quarter 2020, the Company borrowed a total of $350 million, in two tranches, under the A/R Facility and repaid a total of $350 million using available cash. At December 31, 2019, the Company had no borrowings outstanding under the A/R Facility. Fair Value of Borrowings Eastman has classified its total borrowings at December 31, 2020 and 2019 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, 2020 and 2019 , the fair value of total borrowings was $6.449 billion and $6.275 billion, respectively. The Company had no borrowings classified as Level 1 or Level 3 as of December 31, 2020 and 2019 . |
DERIVATIVE AND NON-DERIVATIVE F
DERIVATIVE AND NON-DERIVATIVE FINANCIAL INSTRUMENTS | 12 Months Ended |
Dec. 31, 2020 | |
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. In first, second, and third quarters 2020, Eastman entered into forward-starting interest rate swaps with a notional amount of $25 million in each period to mitigate the risk of variability in interest rates for an expected long-term debt issuance by August 2022. These swaps were designated as cash flow hedges and will be settled upon debt issuance. The total outstanding forward starting swaps as of December 31, 2020 was $75 million. 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 reported as "Long-term borrowings" on the Consolidated Statements of Financial Position 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 "Cumulative Translation Adjustment" ("CTA") within AOCI located in the Consolidated Statements of Financial Position. Cash flows from the CTA component are classified as operating activities in the Consolidated Statement of Cash Flows. Recognition in earnings of amounts previously recognized in CTA is limited to circumstances such as complete or substantially complete liquidation of the net investment in the hedged foreign operation. In the event of a complete or substantially complete liquidation of the net investment, cash flows from net investment hedges are classified as investing activities in the 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 September 2020, the Company terminated fixed-to-fixed cross-currency swaps designated to hedge a portion of its net investment in a euro functional currency denominated subsidiary against foreign currency fluctuations. The notional amount terminated was €150 million ($180 million) which was scheduled to mature in January 2021. The termination resulted in a $3 million gain recognized in CTA. The related cash flows were classified as investing activities in the Consolidated Statements of Cash Flows. In September 2020, the Company 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 €152 million ($180 million) maturing December 2028. Summary of Financial Position and Financial Performance of Hedging Instruments The following table presents the notional amounts outstanding at December 31, 2020 and 2019 associated with Eastman's hedging programs. Notional Outstanding December 31, 2020 December 31, 2019 Derivatives designated as cash flow hedges: Foreign Exchange Forward and Option Contracts (in millions) EUR/USD (in EUR) €521 €630 Commodity Forward and Collar Contracts Feedstock (in million barrels) — 1 Energy (in million british thermal units) 17 27 Interest rate swaps for the future issuance of debt (in millions) 75 — 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) €853 €851 Non-derivatives designated as net investment hedges: Foreign Currency Net Investment Hedges (in millions) EUR/USD (in EUR) €1,245 €1,243 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. The Company had no derivatives classified as Level 1 or Level 3 as of December 31, 2020 or December 31, 2019. 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, 2020 or 2019 . 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, 2020 and 2019. The Financial Position and Fair Value Measurements of Hedging Instruments on a Gross Basis (Dollars in millions) Derivative Type Statements of Financial December 31, 2020 December 31, 2019 Derivatives designated as cash flow hedges: Commodity contracts Other current assets $ 1 $ — Foreign exchange contracts Other current assets — 13 Foreign exchange contracts Other noncurrent assets — 2 Forward starting interest rate swap contracts Other noncurrent assets 1 — Derivatives designated as fair value hedges: Fixed-for-floating interest rate swap Other current assets 1 1 Fixed-for-floating interest rate swap Other noncurrent assets 4 — Derivatives designated as net investment hedges: Cross-currency interest rate swaps Other noncurrent assets 40 68 Total Derivative Assets $ 47 $ 84 Derivatives designated as cash flow hedges: Commodity contracts Payables and other current liabilities $ 6 $ 26 Commodity contracts Other long-term liabilities — 2 Foreign exchange contracts Payables and other current liabilities 21 1 Foreign exchange contracts Other long-term liabilities 14 2 Derivatives designated as fair value hedges: Fixed-for-floating interest rate swap Long-term borrowings — 1 Derivatives designated as net investment hedges: Cross-currency interest rate swaps Other long-term liabilities 51 — Total Derivative Liabilities $ 92 $ 32 Total Net Derivative Assets (Liabilities) $ (45) $ 52 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 $1.5 billion and $1.4 billion associated with non-derivative instruments designated as foreign currency net investment hedges as of December 31, 2020 and December 31, 2019, respectively. 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, 2020 and 2019, 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, 2020 December 31, 2019 December 31, 2020 December 31, 2019 Long-term borrowings (1) $ 772 $ 763 $ (1) $ (7) (1) The cumulative amount of fair value hedging loss adjustment remaining for hedged liabilities for which hedge accounting has been discontinued was $5 million and $7 million at December 31, 2020 and December 31, 2019 , respectively. 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, 2020 and 2019: (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 2020 2019 2020 2019 Derivatives in cash flow hedging relationships: Commodity contracts $ 17 $ (2) $ (31) $ (40) Foreign exchange contracts (36) (5) 9 26 Forward starting interest rate and treasury lock swap contracts 8 4 (9) (6) Non-derivatives in net investment hedging relationships (pre-tax): Net investment hedges (130) 26 — — Derivatives in net investment hedging relationships (pre-tax): Cross-currency interest rate swaps (88) 19 — — Cross-currency interest rate swaps excluded component 10 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 2020 and 2019. Location and Amount of Gain or (Loss) Recognized in Earnings on Fair Value and Cash Flow Hedging Relationships Twelve Months 2020 2019 (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 $ 8,473 $ 6,498 $ 210 $ 9,273 $ 7,039 $ 218 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 1 Derivatives designated as hedging instruments (1) (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 (9) (6) Commodity Contracts: Amount reclassified from AOCI into earnings (31) (40) Foreign Exchange Contracts: Amount reclassified from AOCI into earnings 9 26 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 net losses of $1 million and $2 million in 2020 and 2019, 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 $270 million at December 31, 2020 and losses of $50 million at December 31, 2019. Losses in AOCI increased in 2020 compared to 2019 primarily as a result of an increase in foreign currency exchange rates, particularly the euro. If realized, approximately $35 million in pre-tax losses will be reclassified into earnings during the next 12 months. |
RETIREMENT PLANS
RETIREMENT PLANS | 12 Months Ended |
Dec. 31, 2020 | |
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 2021 to the EIP/ESOP for substantially all U.S. employees equal to 5 percent of their eligible compensation for the 2020 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 1,997,587; 2,076,203; and 2,119,614 shares as of December 31, 2020, 2019, and 2018, 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 $67 million, $68 million, and $67 million for 2020, 2019, and 2018, 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 2020 and 2019, the funded status of the plans and amounts recognized in the Consolidated Statements of Financial Position. Summary of Changes Pension Plans Postretirement Benefit Plans 2020 2019 2020 2019 (Dollars in millions) U.S. Non-U.S. U.S. Non-U.S. Change in projected benefit obligation: Benefit obligation, beginning of year $ 2,067 $ 972 $ 1,959 $ 840 $ 716 $ 672 Service cost 25 17 27 14 — — Interest cost 57 15 76 20 19 25 Actuarial loss 203 66 200 113 57 71 Settlement (122) (6) — — — — Plan amendments and other — (12) — — — — Plan participants' contributions — 1 — 1 10 10 Effect of currency exchange — 61 — 11 — 1 Federal subsidy on benefits paid — — — — 1 — Benefits paid (180) (25) (195) (27) (58) (63) Benefit obligation, end of year $ 2,050 $ 1,089 $ 2,067 $ 972 $ 745 $ 716 Change in plan assets: Fair value of plan assets, beginning of year $ 1,919 $ 820 $ 1,820 $ 713 $ 139 $ 135 Actual return on plan assets 175 72 289 102 18 27 Effect of currency exchange — 54 — 9 — — Company contributions 6 22 5 22 39 42 Reserve for third party contributions — — — — (5) (12) Plan participants' contributions — 1 — 1 10 10 Benefits paid (180) (25) (195) (27) (58) (63) Federal subsidy on benefits paid — — — — 1 — Settlements (122) (6) — — — — Fair value of plan assets, end of year $ 1,798 $ 938 $ 1,919 $ 820 $ 144 $ 139 Funded status at end of year $ (252) $ (151) $ (148) $ (152) $ (601) $ (577) Amounts recognized in the Consolidated Statements of Financial Position consist of: Other noncurrent assets $ — $ 1 $ 13 $ — $ 57 $ 50 Current liabilities (3) (1) (3) (1) (46) (47) Post-employment obligations (249) (151) (158) (151) (612) (580) Net amount recognized, end of year $ (252) $ (151) $ (148) $ (152) $ (601) $ (577) Accumulated benefit obligation $ 1,979 $ 1,036 $ 2,005 $ 919 Amounts recognized in accumulated other comprehensive income consist of: Prior service (credit) cost $ 1 $ (11) $ 2 $ — $ (105) $ (143) Actuarial losses in the projected benefit obligations for both years were primarily due to lower discount rates. In fourth quarter 2020, the Company settled approximately $110 million of one of the U.S. defined benefit pension plans' obligation to an insurer through the purchase of a nonparticipating group annuity contract. In addition, there were settlements for several pension plans where lump sum payments exceeded the sum of the service and interest cost components of net periodic benefit cost of the respective plan for the year. In 2020, the Company had a plan amendment that changed benefits provided by a Netherlands defined benefit pension plan which resulted in a remeasurement of the plan's obligation. The remeasurement resulted in a pre-tax reduction in the projected benefit obligation of $12 million which will be amortized as a prior service from accumulated other comprehensive income over approximately 13 years. Information for pension plans with projected benefit obligations in excess of plan assets: (Dollars in millions) 2020 2019 U.S. Non-U.S. U.S. Non-U.S. Projected benefit obligation $ 2,050 $ 769 $ 1,673 $ 972 Fair value of plan assets 1,798 617 1,512 820 Information for pension plans with accumulated benefit obligations in excess of plan assets: (Dollars in millions) 2020 2019 U.S. Non-U.S. U.S. Non-U.S. Projected benefit obligation $ 2,050 $ 718 $ 1,673 $ 651 Accumulated benefit obligation 1,979 693 1,611 625 Fair value of plan assets 1,798 574 1,512 513 Postretirement benefit plans with accumulated benefit obligations in excess of plan assets are $658 million and $627 million at December 31, 2020 and 2019, respectively. The plans have no assets. Summary of Benefit Costs and Other Amounts Recognized in Other Comprehensive Income Pension Plans Postretirement Benefit Plans 2020 2019 2018 2020 2019 2018 (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 $ 25 $ 17 $ 27 $ 14 $ 35 $ 14 $ — $ — $ — Interest cost 57 15 76 20 67 20 19 25 22 Expected return on plan assets (135) (34) (128) (32) (147) (37) (5) (5) (5) Amortization of: Prior service (credit) cost 1 (1) — — (1) 1 (38) (39) (40) Mark-to-market pension and other postretirement benefits (gain) loss, net 163 28 39 43 89 36 49 61 (26) Net periodic benefit (credit) cost $ 111 $ 25 $ 14 $ 45 $ 43 $ 34 $ 25 $ 42 $ (49) Other changes in plan assets and benefit obligations recognized in other comprehensive income: Current year prior service credit (cost) $ — $ 12 $ — $ — $ — $ — $ — $ — $ — Amortization of: Prior service (credit) cost 1 (1) — — (1) 1 (38) (39) (40) Total $ 1 $ 11 $ — $ — $ (1) $ 1 $ (38) $ (39) $ (40) 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 2020 2019 2018 2020 2019 2018 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 2.48 % 1.08 % 3.25 % 1.56 % 4.29 % 2.35 % 2.38 % 3.21 % 4.26 % Interest crediting rate 5.50 % N/A 5.52 % N/A 5.54 % N/A N/A N/A N/A Rate of compensation increase 2.75 % 2.94 % 3.25 % 2.94 % 3.25 % 2.94 % N/A 3.25 % 3.25 % Health care cost trend Initial 6.25 % 6.50 % 6.50 % Decreasing to ultimate trend of 5.00 % 5.00 % 5.00 % in year 2026 2026 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 3.25 % 1.56 % 4.29 % 2.35 % 3.57 % 2.25 % 3.21 % 4.26 % 3.54 % Discount rate for service cost 3.31 % 1.56 % 4.32 % 2.35 % 3.64 % 2.25 % 2.92 % 4.05 % 3.28 % Discount rate for interest cost 2.83 % 1.56 % 3.96 % 2.35 % 3.18 % 2.25 % 2.80 % 3.93 % 3.14 % Expected return on assets 7.37 % 4.26 % 7.43 % 4.49 % 7.48 % 4.83 % 3.75 % 3.75 % 3.75 % Rate of compensation increase 3.25 % 2.94 % 3.25 % 2.94 % 3.25 % 2.95 % 3.25 % 3.25 % 3.25 % Interest crediting rate 5.52 % N/A 5.54 % N/A 5.55 % N/A N/A N/A N/A 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 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. The fair value of plan assets for the U.S. pension plans at December 31, 2020 and 2019 was $1.8 billion and $1.9 billion, respectively, while the fair value of plan assets at December 31, 2020 and 2019 for non-U.S. pension plans was $938 million and $820 million, respectively. At December 31, 2020 and 2019, the expected weighted-average long-term rate of return on U.S. pension plan assets was 7.29 percent and 7.37 percent, respectively. The expected weighted-average long-term rate of return on non-U.S. pension plans assets was 4.04 percent and 4.26 percent at December 31, 2020 and 2019, 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, 2020 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 and Cash Equivalents (1) $ 47 $ 103 $ 47 $ 103 $ — $ — $ — $ — Public Equity - United States (2) 1 — 1 — — — — — Other Investments (3) — 68 — — — — — 68 Total Assets at Fair Value $ 48 $ 171 $ 48 $ 103 $ — $ — $ — $ 68 Investments Measured at Net Asset Value (4) 1,750 767 Total Assets $ 1,798 $ 938 (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 Pension Assets: U.S. Non-U.S. U.S. Non-U.S. U.S. Non-U.S. U.S. Non-U.S. Cash and 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 (1) Cash and 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, public equity, and public real asset 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 Description Total Fair Value Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Postretirement Benefit Plan Assets: Cash and Cash Equivalents (1) $ 1 $ 1 $ — $ — Debt (2) : Fixed Income (U.S.) 89 — 89 — Fixed Income (Non-U.S.) 25 — 25 — Total $ 115 $ 1 $ 114 $ — (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: Debt (2) : Fixed Income (U.S.) $ 85 $ — $ 85 $ — Fixed Income (Non-U.S.) 26 — 26 — Total $ 111 $ — $ 111 $ — (1) Cash and Cash Equivalents: Funds generally invested in actively managed collective trust funds or interest bearing accounts. (2) 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. 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, 2018 $ 51 Unrealized gains 5 Purchases, issuances, sales, and settlements 1 Balance at December 31, 2019 57 Unrealized gains 9 Purchases, issuances, sales, and settlements 2 Balance at December 31, 2020 $ 68 (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 2021 and the asset allocation at December 31, 2020 and 2019, by asset category. U.S. Pension Plans Non-U.S. Pension Plans Postretirement Benefit Plan 2021 Target Allocation Plan Assets at Plan Assets at 2021 Target Allocation Plan Assets at Plan Assets at 2021 Target Allocation Plan Assets at Plan Assets at Asset category Equity securities 41% 39% 50% 24% 20% 21% —% —% —% Debt securities 39% 43% 37% 59% 57% 53% 100% 100% 100% Real estate 2% 2% 2% 5% 6% 8% —% —% —% Other investments (1) 18% 16% 11% 12% 17% 18% —% —% —% 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 and public real assets. 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 2020 or 2019. For 2021 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 (Dollars in millions) U.S. Non-U.S. 2021 $ 151 $ 33 $ 56 2022 147 34 53 2023 143 38 48 2024 135 39 47 2025 142 39 47 2026-2030 639 242 221 |
LEASES AND OTHER COMMITMENTS LE
LEASES AND OTHER COMMITMENTS LEASES AND OTHER COMMITMENTS | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Commitments Disclosure [Text Block] | LEASES AND OTHER COMMITMENTS Leases 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, 2020 and December 31, 2019, operating right-to-use assets of $176 million and $197 million, respectively, are included as a part of "Other noncurrent assets" in the Consolidated Statements of Financial Position and includes $9 million and $8 million, respectively, 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, 2020, maturities of operating lease liabilities is provided below: (Dollars in millions) Operating lease liabilities 2021 $ 60 2022 44 2023 31 2024 18 2025 12 2026 and beyond 28 Total lease payments 193 Less: amounts of lease payments representing interest 14 Present value of future lease payments 179 Less: current obligations under leases 56 Long-term lease obligations $ 123 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 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 second quarter 2021. 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: (Dollars in millions) 2020 2019 Lease costs: Operating lease costs $ 73 $ 70 Short-term lease costs 37 40 Sublease income (4) (2) Total $ 106 $ 108 Other operating lease information: Cash paid for amounts included in the measurement of lease liabilities $ 72 $ 72 Right-to-use assets obtained in exchange for new lease liabilities $ 55 $ 54 Weighted-average remaining lease term, in years 5 5 Weighted-average discount rate 3.6 % 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 2021 $ 299 $ 50 $ 172 $ 187 $ 60 $ 274 $ 1,042 2022 744 — 174 174 44 95 1,231 2023 919 — 157 137 31 91 1,335 2024 241 — 137 140 18 99 635 2025 701 — 119 112 12 87 1,031 2026 and beyond 2,664 — 1,291 2,432 28 1,191 7,606 Total $ 5,568 $ 50 $ 2,050 $ 3,182 $ 193 $ 1,837 $ 12,880 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, 2020 totaling approximately $3.2 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 estimates, 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 "2026 and beyond" line item. The amount and timing of pension and other postretirement benefit payments included in other liabilities is dependent upon interest rates, health care cost trends, actual returns on plan assets, retirement and attrition rates of employees, continuation or modification of the benefit plans, and other factors. Such factors can significantly impact the amount and timing of any future contributions by the Company. Excess contributions are periodically made by management in order to keep the plans' funded status above 80 percent under the funding provisions of the Pension Protection Act to avoid partial benefit restrictions on accelerated forms of payment. The Company's U.S. defined benefit pension plans are not currently under any benefit restrictions. See Note 10, "Retirement Plans", for more information regarding pension and other postretirement benefit obligations. The resolution of uncertainties related to environmental matters included in other liabilities 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, if applicable, the expected sharing of costs, management does not believe that the Company's liability for these environmental matters, individually or in the aggregate, will be material to the Company's consolidated financial position, results of operations, or cash flows. See Note 1, "Significant Accounting Policies", for environmental costs, and see Note 12, "Environmental Matters and Asset Retirement Obligations", for more information regarding outstanding environmental matters and asset retirement obligations. 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 $25 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, 2020 | |
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 $285 million and $287 million at December 31, 2020 and December 31, 2019, respectively. Environmental Remediation and Environmental Asset Retirement Obligations The Company's total environmental reserve for environmental contingencies, including remediation costs and asset retirement obligations, is included as part of "Other noncurrent assets", "Payables and other current liabilities" and "Other long-term liabilities" in the Consolidated Statements of Financial Position as follows: (Dollars in millions) December 31, 2020 2019 Environmental contingencies, current $ 15 $ 20 Environmental contingencies, long-term 270 267 Total $ 285 $ 287 Environmental Remediation Estimated future environmental expenditures for undiscounted remediation costs ranged from the best estimate or minimum of $257 million to the maximum of $501 million and from the best estimate or minimum of $260 million to the maximum of $487 million at December 31, 2020 and December 31, 2019, 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, 2020 and December 31, 2019 . 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, $104 million had been paid for costs at the Shared Sites as of December 31, 2020 . As of December 31, 2020 , an additional $200 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 contingencies for twelve months ended 2020 are summarized below: (Dollars in millions) Environmental Remediation Liabilities Balance at December 31, 2018 $ 271 Changes in estimates recognized in earnings and other 4 Cash reductions (15) Balance at December 31, 2019 260 Changes in estimates recognized in earnings and other 7 Cash reductions (10) Balance at December 31, 2020 $ 257 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. 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 $28 million and $27 million at December 31, 2020 and December 31, 2019, respectively. Other Eastman's cash expenditures related to environmental protection and improvement were $265 million, $244 million, and $274 million in 2020, 2019, and 2018, 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 $42 million, $27 million, and $44 million in 2020, 2019, and 2018, 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 $51 million and $48 million at December 31, 2020 and December 31, 2019, 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, 2020 | |
Legal Matters [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | LEGAL MATTERSFrom 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 legal 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 2020, 2019, and 2018 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, 2017 $ 2 $ 1,983 $ 6,802 $ (209) $ (3,175) $ 5,403 $ 77 $ 5,480 Cumulative Effect of Adoption of New Accounting Standards (1) — — 16 — — 16 — 16 Net Earnings — — 1,080 — — 1,080 4 1,084 Cash Dividends (2) — — (325) — — (325) — (325) Other Comprehensive (Loss) — — — (36) — (36) — (36) Share-Based Compensation Expense (3) — 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 Net Earnings — — 478 — — 478 11 489 Cash Dividends (1) — — (363) — — (363) — (363) Other Comprehensive Income — — — (59) — (59) — (59) Share-Based Compensation Expense (2) — 44 — — — 44 — 44 Stock Option Exercises — 36 — — — 36 — 36 Other (4) — (11) — — — (11) 2 (9) Share Repurchase — — — — (60) (60) — (60) Distributions to noncontrolling interest — — — — — — (2) (2) Balance at December 31, 2020 $ 2 $ 2,174 $ 8,080 $ (273) $ (3,960) $ 6,023 $ 85 $ 6,108 (1) 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. (2) Cash dividends includes cash dividends paid and dividends declared, but unpaid. (3) Share-based compensation expense is the fair value of share-based awards (4) Additional paid-in capital includes value of shares withheld for employees' taxes on vesting of share-based compensation awards. (5) On January 1, 2019, Eastman adopted ASU 2018-02 Income Statement - Reporting Comprehensive Income resulting in the reclassification of $20 million of stranded tax expense from AOCI to retained earnings. 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 $2.67 in 2020, $2.52 in 2019, and $2.30 in 2018. 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 2020, 2019, and 2018 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, 2020, a total of 7,887,216 shares have been repurchased under this authorization for a total of $633 million. During 2020, 2019, and 2018, the Company repurchased shares of common stock of 1,134,052, 4,282,409, and 3,959,878, respectively, for a cost of approximately $60 million, $325 million, and $400 million, respectively. The Company's charitable foundation held 50,798 issued and outstanding shares of the Company's common stock at December 31, 2020, 2019, and 2018 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) 2020 2019 2018 Numerator Net earnings attributable to Eastman $ 478 $ 759 $ 1,080 Denominator Weighted average shares used for basic EPS 135.5 137.4 141.2 Dilutive effect of stock options and other award plans 1.0 1.1 1.7 Weighted average shares used for diluted EPS 136.5 138.5 142.9 EPS (1) Basic $ 3.53 $ 5.52 $ 7.65 Diluted $ 3.50 $ 5.48 $ 7.56 (1) EPS is calculated using whole dollars and shares. Shares underlying stock options excluded from the 2020, 2019, and 2018 calculations of diluted EPS were 2,424,826, 2,183,875, and 619,706, 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, 2020 2019 2018 Balance at beginning of year 219,638,646 219,140,523 218,369,992 Issued for employee compensation and benefit plans 1,002,860 498,123 770,531 Balance at end of year 220,641,506 219,638,646 219,140,523 Accumulated Other Comprehensive Income (Loss) 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, 2018 $ (309) $ 106 $ (41) $ (1) $ (245) Period change (1) 45 — (14) — 31 Balance at December 31, 2019 (264) 106 (55) (1) (214) Period change (29) (19) (11) — (59) Balance at December 31, 2020 $ (293) $ 87 $ (66) $ (1) $ (273) (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, 2020 2019 2018 (Dollars in millions) Before Tax Net of Tax Before Tax Net of Tax Before Tax Net of Tax Change in cumulative translation adjustment $ (29) $ (29) $ 45 $ 45 $ (13) $ (13) Defined benefit pension and other postretirement benefit plans: Prior service credit arising during the period 12 9 — — — — Amortization of unrecognized prior service credits included in net periodic costs (38) (28) (39) (29) (40) (30) Derivatives and hedging: Unrealized gain (loss) during period (46) (34) (27) (20) 30 22 Reclassification adjustment for (gains) losses included in net income, net 31 23 20 15 (20) (15) Total other comprehensive income (loss) $ (70) $ (59) $ (1) $ 11 $ (43) $ (36) 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, 2020 | |
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) 2020 2019 2018 Fixed Asset Impairments CI & AFP - Singapore (1) $ — $ 27 $ — Site optimizations AFP - Tire additives (2) 5 — — AM - Performance films (3) 5 — — AFP - Animal nutrition (4) 3 — — Discontinuation of growth initiatives (5) 8 — — 21 27 — Intangible Asset Impairments AFP - Tradenames (6) 123 — — AFP - Customer relationships (7) 2 — — AFP - Goodwill (8) — 45 38 AM - Customer relationships (7) — — 1 125 45 39 Severance Charges Business improvement and cost reduction actions (9) 47 45 6 CI & AFP - Singapore (1) 6 — — Site optimizations AM - Advanced interlayers (10) 5 — — AFP - Tire additives (2) 3 — — AM - Performance films (3) 3 — — AFP - Animal nutrition (4) 1 — — 65 45 6 Other Restructuring Costs Cost reduction initiatives (9) 14 5 — Discontinuation of growth initiatives contract termination fees (5) 4 — — AFP - Animal nutrition (4) (2) — — AFP - Discontinued capital project (11) — 4 — 16 9 — Total $ 227 $ 126 $ 45 (1) Asset impairment charges of $22 million and $5 million in the CI segment and the AFP segment, respectively, and severance charges of $5 million and $1 million in the CI segment and the AFP segment, respectively, resulting from the previously disclosed plan to discontinue production of certain products at the Singapore manufacturing site. Total asset impairments and restructuring charges for this action are expected to be up to $50 million continuing through 2021. (2) Fixed asset impairments and severance in the AFP segment from the closure of a tire additives manufacturing facility in Asia Pacific as part of ongoing site optimization . (3) Fixed asset impairments and severance in the Advanced Materials ("AM") segment from the closure of a performance films manufacturing facility in North America as part of ongoing site optimization. (4) Fixed asset impairments, severance, and other restructuring gains in the AFP segment from the closure of an animal nutrition manufacturing facility in Asia Pacific as part of ongoing site optimization. (5) Fixed asset impairments and contract termination fees resulting from management's decision to discontinue growth initiatives for polyester based microfibers, including Avra ™ performance fibers, the financial results of which were not allocated to an operating segment and reported in "Other". (6) Intangible asset impairment charges in the AFP segment tire additives business to reduce the carrying values of the Crystex ™ and Santoflex ™ tradenames to the estimated fair values. The estimated fair values were determined using an income approach, specifically, the relief from royalty method, including some unobservable inputs. The impairments are primarily the result of weakened demand in transportation markets impacted by COVID-19 and increased competitive pricing pressure as a result of global capacity increases. (7) Intangible asset impairment charge for customer relationships. (8) Goodwill impairment charge in the crop protection reporting unit resulting from the annual impairment test. In first quarter 2020 the crop protection reporting unit combined with the care chemicals reporting unit as a result of business management realignment. (9) Severance and related costs as part of business improvement and cost reduction initiatives which were reported in "Other". (10) Severance in the AM segment due to the closure of an advanced interlayers manufacturing facility in North America as part of ongoing site optimization. In addition, accelerated depreciation of $8 million was recognized in "Cost of sales" in the Consolidated Statements of Earnings, Comprehensive Income and Retained Earnings in 2020 related to the closure of this facility. Management expects total charges of up to $30 million, mostly in "Cost of sales" and in "Asset impairments and restructuring charges, net" in the Consolidated Statements of Earnings, Comprehensive Income and Retained Earnings, continuing through 2021 for the closure of this facility. (11) Additional restructuring charge related to a capital project in the AFP segment that was discontinued in 2016. Reconciliations of the beginning and ending restructuring liability amounts are as follows: (Dollars in millions) Balance at Provision/ Adjustments Non-cash Reductions/ Additions Cash Balance at Non-cash charges $ — $ 145 $ (145) $ — $ — Severance costs 17 65 1 (18) 65 Site closure & restructuring costs 11 17 — (14) 14 Total $ 28 $ 227 $ (144) $ (32) $ 79 (Dollars in millions) Balance at Provision/ Adjustments Non-cash Reductions/ Additions Cash Balance at 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 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, 2020 | |
Other Income and Expenses [Abstract] | |
OTHER CHARGES (INCOME), NET | OTHER (INCOME) CHARGES, NET For years ended December 31, (Dollars in millions) 2020 2019 2018 Foreign exchange transaction losses (gains), net (1) $ 16 $ 9 $ 12 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 (15) (10) (17) Coal gasification incident property insurance — — (65) Other, net 7 4 4 Other (income) charges, net $ 8 $ 3 $ (53) |
SHARE-BASED COMPENSATION PLANS
SHARE-BASED COMPENSATION PLANS AND AWARDS | 12 Months Ended |
Dec. 31, 2020 | |
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 2020, 2019, and 2018, total share-based compensation expense (before tax) of approximately $44 million, $59 million, and $64 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 $7 million, $9 million, and $9 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 $1 million for 2020, $3 million for 2019, and $3 million for 2018 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 2020, 2019, and 2018 are provided in the table below: Assumptions 2020 2019 2018 Expected volatility rate 21.56% 19.80% 19.03% Expected dividend yield 3.30% 2.51% 2.48% Average risk-free interest rate 0.94% 2.44% 2.61% Expected term years 5.9 5.7 5.1 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 2020, 2019, and 2018 is presented below: 2020 2019 2018 Options Weighted-Average Exercise Price Options Weighted-Average Exercise Price Options Weighted-Average Exercise Price Outstanding at beginning of year 3,479,300 $ 80 2,905,600 $ 79 2,614,100 $ 70 Granted 622,000 62 786,000 81 619,700 104 Exercised (568,800) 64 (135,700) 67 (323,000) 55 Cancelled, forfeited, or expired (5,900) 82 (76,600) 88 (5,200) 78 Outstanding at end of year 3,526,600 $ 79 3,479,300 $ 80 2,905,600 $ 79 Options exercisable at year-end 2,192,300 2,077,600 1,606,800 Available for grant at end of year 4,046,748 6,085,857 8,174,614 The following table provides the remaining contractual term and weighted average exercise prices of stock options outstanding and exercisable at December 31, 2020: Options Outstanding Options Exercisable Range of Exercise Prices Number Outstanding at Weighted-Average Remaining Contractual Life (Years) Weighted-Average Exercise Price Number Exercisable at Weighted-Average Exercise Price $38-$64 658,900 8.8 $ 61 21,300 $ 44 $65-$74 829,900 6.2 70 781,900 70 $75-$89 1,440,800 6.7 82 991,100 82 $90-$104 597,000 7.2 104 398,000 104 3,526,600 7.1 $ 79 2,192,300 $ 81 The range of exercise prices of options outstanding at December 31, 2020 is approximately $38 to $104 per share. The aggregate intrinsic value of total options outstanding and total options exercisable at December 31, 2020 is $77 million and $43 million, respectively. Intrinsic value is the amount by which the closing market price of the stock at December 31, 2020 exceeds the exercise price of the option grants. The weighted average remaining contractual life of all exercisable options at December 31, 2020 is 5.7 years. The weighted average fair value of options granted during 2020, 2019, and 2018 was $7.92, $13.12, and $15.90, respectively. The total intrinsic value of options exercised during the years ended December 31, 2020, 2019, and 2018, was $14 million, $2 million, and $15 million, respectively. Cash proceeds received by the Company from option exercises totaled $36 million and the related tax benefit was $2 million, respectively, for 2020, $9 million and de minimis, respectively, for 2019, and $18 million and $3 million, respectively, for 2018. The total fair value of shares vested during the years ended December 31, 2020, 2019, and 2018 was $9 million, $8 million, and $7 million, respectively. A summary of the changes in the Company's nonvested options during the year ended December 31, 2020 is presented below: Nonvested Options Number of Options Weighted-Average Grant Date Fair Value Nonvested at January 1, 2020 1,401,700 $13.68 Granted 622,000 $7.92 Vested (689,400) $13.47 Nonvested options at December 31, 2020 1,334,300 $11.11 For nonvested options at December 31, 2020, approximately $2 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 2020-2022, 2019-2021, and 2018-2020 periods were 423 thousand, 412 thousand, and 310 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 2020, 2019, and 2018 were 227 thousand 189 thousand, and 160 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, 2020, 2019, and 2018 was approximately $37 million, $50 million, and $55 million, respectively. The unrecognized compensation expense before tax for these same type awards at December 31, 2020 was approximately $45 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, 2020 | |
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) 2020 2019 2018 Current assets $ (1) $ (5) $ (47) Other assets (14) 15 43 Current liabilities 5 (82) (38) Long-term liabilities and equity 15 (17) 87 Total $ 5 $ (89) $ 45 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, equity investment dividends, 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) 2020 2019 2018 Interest, net of amounts capitalized $ 191 $ 235 $ 239 Income taxes 179 217 202 Non-cash investing activities: Outstanding trade payables related to capital expenditures 20 22 18 |
SEGMENT INFORMATION
SEGMENT INFORMATION | 12 Months Ended |
Dec. 31, 2020 | |
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 materials 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 adhesives resins product line consists of hydrocarbon and rosin resins, The animal nutrition business consists of organic acid-based solutions product lines. In 2020 the crop protection business combined with the care chemicals business as a result of business management realignment. The care chemicals business consists of amine derivative-based building blocks for the production of flocculants, intermediates for surfactants, fumigants, fungicides, and plant growth regulator products. 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. In the specialty fluids product line, the Company produces heat transfer and aviation fluids products. The tire additives product line includes insoluble sulfur rubber additives, antidegradant rubber additives, and performance resins. Percentage of Total Segment Sales Product Lines 2020 2019 2018 Adhesives Resins 16% 15% 16% Animal Nutrition 8% 9% 10% Care Chemicals 24% 22% 21% Coatings and Inks Additives 25% 24% 23% Specialty Fluids 13% 14% 13% Tire Additives 14% 16% 17% Total 100% 100% 100% Percentage of Total Segment Sales Sales by Customer Location 2020 2019 2018 United States and Canada 38% 37% 36% Asia Pacific 24% 24% 24% Europe, Middle East, and Africa 32% 33% 34% 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 advanced interlayers product line includes polyvinyl butyral sheet and specialty polyvinyl butyral intermediates. The performance films product line primarily consists of window films and protective films products for aftermarket applied films. The specialty plastics product line consists of two primary products: copolyesters and cellulose esters. Percentage of Total Segment Sales Product Lines 2020 2019 2018 Advanced Interlayers 29% 32% 33% Performance Films 20% 19% 18% Specialty Plastics 51% 49% 49% Total 100% 100% 100% Percentage of Total Segment Sales Sales by Customer Location 2020 2019 2018 United States and Canada 34% 34% 35% Asia Pacific 33% 32% 33% Europe, Middle East, and Africa 27% 28% 27% Latin America 6% 6% 5% Total 100% 100% 100% Chemical Intermediates Segment Eastman 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. The functional amines product lines include methylamines and salts, and higher amines and solvents. 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. Percentage of Total Segment Sales Product Lines 2020 2019 2018 Functional Amines 23% 20% 20% Intermediates 57% 59% 60% Plasticizers 20% 21% 20% Total 100% 100% 100% Percentage of Total Segment Sales Sales by Customer Location 2020 2019 2018 United States and Canada 65% 64% 64% Asia Pacific 13% 14% 15% Europe, Middle East, and Africa 16% 15% 15% Latin America 6% 7% 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 acetate yarn product line consists of natural (undyed) acetate and polyester yarn for use in apparel, home furnishings, and industrial fabrics. The acetyl chemicals product line consists of triacetin, cellulose acetate flake, and acetyl raw materials for other acetate fiber producers. The nonwovens product line consists primarily of the nonwovens innovation products. Percentage of Total Segment Sales Product Lines 2020 2019 2018 Acetate Tow 70% 68% 69% Acetate Yarn 9% 12% 10% Acetyl Chemical Products 16% 15% 15% Nonwovens 5% 5% 6% Total 100% 100% 100% Percentage of Total Segment Sales Sales by Customer Location 2020 2019 2018 United States and Canada 26% 25% 26% Asia Pacific 32% 32% 33% Europe, Middle East, and Africa 39% 39% 37% Latin America 3% 4% 4% Total 100% 100% 100% For years ended December 31, (Dollars in millions) 2020 2019 2018 Sales by Segment Additives & Functional Products $ 3,022 $ 3,273 $ 3,647 Advanced Materials 2,524 2,688 2,755 Chemical Intermediates 2,090 2,443 2,831 Fibers 837 869 918 Total Sales $ 8,473 $ 9,273 $ 10,151 For years ended December 31, (Dollars in millions) 2020 2019 2018 Earnings Before Interest and Taxes by Segment Additives & Functional Products $ 312 $ 496 $ 639 Advanced Materials 427 517 509 Chemical Intermediates 166 170 308 Fibers 180 194 257 Total EBIT by Operating Segment 1,085 1,377 1,713 Other Growth initiatives and businesses not allocated to operating segments (95) (102) (114) Pension and other postretirement benefit plans income (expense), net not allocated to operating segments (156) (97) (17) Asset impairments and restructuring charges, net (73) (49) (6) Other income (charges), net not allocated to operating segments (20) (9) (24) Total EBIT $ 741 $ 1,120 $ 1,552 December 31, (Dollars in millions) 2020 2019 Assets by Segment (1) Additives & Functional Products $ 6,238 $ 6,387 Advanced Materials 4,345 4,415 Chemical Intermediates 2,614 2,775 Fibers 978 1,014 Total Assets by Operating Segment 14,175 14,591 Corporate Assets 1,908 1,417 Total Assets $ 16,083 $ 16,008 (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) 2020 2019 2018 Depreciation and Amortization Expense by Segment Additives & Functional Products $ 220 $ 218 $ 219 Advanced Materials 187 172 169 Chemical Intermediates 108 150 151 Fibers 56 64 64 Total Depreciation and Amortization Expense by Operating Segment 571 604 603 Other 3 7 1 Total Depreciation and Amortization Expense $ 574 $ 611 $ 604 For years ended December 31, (Dollars in millions) 2020 2019 2018 Capital Expenditures by Segment Additives & Functional Products $ 126 $ 152 $ 150 Advanced Materials 140 130 187 Chemical Intermediates 84 98 137 Fibers 31 42 50 Total Capital Expenditures by Operating Segment 381 422 524 Other 2 3 4 Total Capital Expenditures $ 383 $ 425 $ 528 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 2020 2019 2018 Sales United States $ 3,437 $ 3,720 $ 4,118 All foreign countries 5,036 5,553 6,033 Total $ 8,473 $ 9,273 $ 10,151 December 31, 2020 2019 2018 Net properties United States $ 4,106 $ 4,178 $ 4,228 All foreign countries 1,443 1,393 1,372 Total $ 5,549 $ 5,571 $ 5,600 |
QUARTERLY SALES AND EARNINGS DA
QUARTERLY SALES AND EARNINGS DATA-UNAUDITED | 12 Months Ended |
Dec. 31, 2020 | |
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 2020 Sales $ 2,241 $ 1,924 $ 2,122 $ 2,186 Gross profit 577 371 501 526 Asset impairments and restructuring charges, net 14 141 60 12 Net earnings attributable to Eastman $ 258 $ 27 $ 161 $ 32 Net earnings per share attributable to Eastman (1) Basic $ 1.90 $ 0.20 $ 1.19 $ 0.23 Diluted $ 1.89 $ 0.20 $ 1.18 $ 0.23 (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 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. |
RESERVE ROLLFORWARDS
RESERVE ROLLFORWARDS | 12 Months Ended |
Dec. 31, 2020 | |
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, Charges (Credits) to Cost and Expense Other Accounts Balance at December 31, 2020 Reserve for: Credit losses $ 11 $ 4 $ — $ 1 $ 14 LIFO inventory 248 (22) — — 226 Non-environmental asset retirement obligations 48 2 1 — 51 Environmental contingencies 287 8 — 10 285 Deferred tax valuation allowance 453 (61) 1 — 393 $ 1,047 $ (69) $ 2 $ 11 $ 969 (Dollars in millions) Additions Balance at January 1, Charges (Credits) to Cost and Expense Other Accounts Balance at December 31, 2019 Reserve for: Credit losses $ 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: Credit losses $ 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 410 81 (4) — 487 $ 1,063 $ 132 $ 1 $ 19 $ 1,177 |
SIGNIFICANT ACCOUNTING POLICI_2
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Financial Statement Presentation | Financial Statement PresentationThe 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") 2016-13 Financial Instruments - Credit Losses: On January 1, 2020, Eastman adopted this standard, and related releases, under the various required transition methods. 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. The adoption of this standard did not result in a material impact on 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: On January 1, 2020, Eastman adopted this standard that is a part of the Financial Accounting Standards Board's ("FASB") 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. The adoption under the various required transition methods did not impact the Company's related disclosures. ASU 2018-14 Retirement Benefits - Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans: In fourth quarter 2020, Eastman adopted this standard which applied the disclosures changes on a retrospective basis to all periods presented. 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 resulting from changes in the benefit obligation for the period and weighted-average interest crediting rates for cash balance plans. The adoption of the disclosure changes did not materially impact the Company's related disclosures. Please see Note 10, "Retirement Plans", for these disclosure changes. ASU 2018-18 Collaborative Arrangements - Clarifying the Interaction between Topic 808 (Collaborative Arrangements) and Topic 606 (Revenue from Contracts with Customers): On January 1, 2020, Eastman adopted this standard, retrospectively to the date of the initial application of Topic 606 on January 1, 2017, that provides 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. The adoption of this standard did not impact the Company's financial statements and related disclosures. ASU 2019-01 Leases - Codification Improvements: On January 1, 2020, Eastman adopted this standard which was applied as of the adoption date and under the same transition methodology of ASU 2016-02 Lease previously adopted on January 1, 2019. The FASB issued this update in response to stakeholder inquiries regarding the new leasing standard. The adoption of this standard did not impact the Company's financial statements and related disclosures. ASU 2020-04 Reference Rate Reform (Topic 848) - Facilitation of the Effects of Reference Rate Reform on Financial Reporting: Eastman adopted this standard when issued and effective on March 12, 2020. The FASB issued this update to provide optional guidance for a limited period of time to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform (the global financial markets transition in contracts, hedging relationships, and other transactions away from referencing the London Interbank Offered Rate (LIBOR) and other interbank offered rates and toward new reference rates) on financial reporting. As reference reform has not impacted Eastman as of the issuance and effective date, the adoption of this standard did not impact the Company's financial statements and related disclosures. Accounting Standards Issued But Not Adopted as of December 31, 2020 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. Adoption methods vary based on the specific items impacted. Management does not expect that changes required by the new standard will materially impact the Company's financial statements and related disclosures. ASU 2020-01 Investments - Equity Securities (Topic 321), Investments - Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815) - Clarifying the Interactions between Topic 321, Topic 323, and Topic 815: In January 2020, the FASB issued a clarification that an entity should consider observable transactions that require the application or discontinuance of the equity method of accounting for the purposes of applying the measurement alternative and clarification that certain forward contracts and purchased options to purchase securities that, upon settlement, would be accounted for under the equity method of accounting. This standard is effective for fiscal years beginning after December 15, 2020, and interim periods within those fiscal years. The update is to be applied prospectively. Management does not expect that changes required by the new standard will materially impact 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 $18 million and $4 million as of December 31, 2020 or December 31, 2019, respectively, and are included as a part of "Payables and other current liabilities" and "Other long-term liabilities" in the Consolidated Statements of Financial Position. Contract assets were $62 million and $65 million as of December 31, 2020 and December 31, 2019, 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 and other postretirement benefits plans that provide eligible employees with retirement benefits. 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 associated estimated asset retirement costs are capitalized as part of the carrying value of the long-lived assets and depreciated over their useful life and charged to "Cost of sales" in the Consolidated Statements of Earnings, Comprehensive Income and Retained Earnings. 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 "Cost of sales" in the Consolidated Statements of Earnings, Comprehensive Income and Retained Earnings, 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 "Selling, general and administrative expense" in the Consolidated Statements of Earnings, Comprehensive Income and Retained Earnings 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 OperationsEastman 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 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 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. The recoverability of our deferred tax assets are evaluated each quarter by assessing the likelihood of future profitability and available tax planning strategies that could be implemented to realize our net deferred tax assets. 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 calculation of income tax liabilities involves uncertainties in the application of complex tax laws and regulations, which are subject to legal interpretation and management judgment. Eastman's income tax returns are regularly examined by federal, state and foreign tax authorities, and those audits may result in proposed adjustments. The Company has evaluated these potential issues under the more-likely-than-not standard of the accounting literature. A tax position is recognized if it meets this standard and is measured at the largest amount of benefit that has a greater than 50 percent likelihood of being realized. Such judgments and estimates may change based on audit settlements, court cases and interpretation of tax laws and regulations. The Company accrues interest related to unrecognized income tax positions, which is included as a component of the income tax provision on the balance sheet. The Company recognizes income tax positions that meet the more likely than not threshold. The accrued interest related to unrecognized income tax positions and taxes resulting from the global intangible low-tax income ("GILTI") are recorded as a component of the income tax provision. |
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 Credit Losses Trade accounts receivable are recorded at the invoiced amount and do not bear interest. Eastman maintains allowances for estimated credit losses, which are developed at a market, country, and region level based on risk of collection as well as current and forecasted economic conditions. The Company calculates the allowance based on an assessment of the risk when the accounts receivable is recognized. Write-offs are recorded at the time a customer receivable is deemed uncollectible. Allowance for credit losses was $14 million and $11 million as of December 31, 2020 and December 31, 2019, respectively. 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 the lower of 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 | PropertiesEastman 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 in "Cost of sales" in the Consolidated Statements of Earnings, Comprehensive Income and Retained 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 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" in the Consolidated Statements of Earnings, Comprehensive Income and Retained Earnings. 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" in the Consolidated Statements of Earnings, Comprehensive Income and Retained Earnings. |
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. |
Goodwill and Intangible Assets, Policy | Goodwill Goodwill is an asset determined as the residual of the purchase price over the fair value of identified assets and liabilities acquired in a business combination. 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, including some unobservable inputs, and applies a discounted cash flow model in testing the carrying value of goodwill for each reporting unit. 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 estimated weighted average cost of capital ("WACC") plus a risk premium. |
Lessee, Leases [Policy Text Block] | Leases There are two types of leases: finance and operating. Both types of leases have associated right-to-use assets and lease liabilities that are valued at the present value of the lease payments and recognized on the Consolidated Statements of Financial Position. 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. The Company elected the accounting policy not to apply the recognition and measurement requirements to short-term leases with a term of 12 months or less and do not include a bargain purchase option. Residual guarantee payments that become probable and estimable are recognized as rent expense over the remaining life of the applicable lease. For lease accounting policies, 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. |
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. The Company's derivative instruments are recognized as either assets or liabilities on the Consolidated Statements of Financial Position and measured at fair value. Hedge accounting will be discontinued prospectively for all hedges that no longer qualify for hedge accounting treatment. For additional information, see Note 9, "Derivative and Non-Derivative Financial Instruments". |
Litigation and Contingent Liabilities | Litigation and Contingent Liabilities 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. 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 has an off balance sheet, uncommitted accounts receivable factoring program 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 routine 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 2020 and 2019 were $1.5 billion and $0.9 billion, respectively. 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 sell 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. |
INVENTORIES (Tables)
INVENTORIES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | December 31, (Dollars in millions) 2020 2019 Finished goods $ 891 $ 1,114 Work in process 203 220 Raw materials and supplies 511 576 Total inventories at FIFO or average cost 1,605 1,910 Less: LIFO reserve 226 248 Total inventories $ 1,379 $ 1,662 |
PROPERTIES AND ACCUMULATED DE_2
PROPERTIES AND ACCUMULATED DEPRECIATION (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Properties | December 31, (Dollars in millions) 2020 2019 Properties Land $ 163 $ 158 Buildings 1,824 1,450 Machinery and equipment 11,494 11,117 Construction in progress 50 356 Properties and equipment at cost $ 13,531 $ 13,081 Less: Accumulated depreciation 7,982 7,510 Net properties $ 5,549 $ 5,571 |
GOODWILL AND OTHER INTANGIBLE_2
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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, 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 Currency translation adjustments 20 10 4 — 34 Balance at December 31, 2020 $ 2,397 $ 1,292 $ 766 $ 10 $ 4,465 |
Schedule of Finite Lived and Indefinite Lived Intangible Assets by Major Class | December 31, 2020 December 31, 2019 (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 $ 1,589 $ 571 $ 1,018 $ 1,566 $ 494 $ 1,072 Technology 7 - 20 687 392 295 677 343 334 Tradenames 25 44 2 42 — — — Other 18 - 37 86 23 63 88 22 66 Indefinite-lived intangible assets: Tradenames 364 — 364 529 — 529 Other 10 — 10 10 — 10 Total identified intangible assets $ 2,780 $ 988 $ 1,792 $ 2,870 $ 859 $ 2,011 |
PAYABLES AND OTHER CURRENT LI_2
PAYABLES AND OTHER CURRENT LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Payables and Accruals [Abstract] | |
Schedule of Payables and Other Current Liabilities | December 31, (Dollars in millions) 2020 2019 Trade creditors $ 799 $ 890 Accrued payrolls, vacation, and variable-incentive compensation 228 176 Accrued taxes 178 89 Post-employment obligations 138 93 Dividends payable to shareholders 94 90 Other 252 280 Total payables and other current liabilities $ 1,689 $ 1,618 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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 U.S. and other income taxes from operations follow: For years ended December 31, (Dollars in millions) 2020 2019 2018 Earnings before income taxes United States $ 164 $ 454 $ 718 Outside the United States 366 448 592 Total $ 530 $ 902 $ 1,310 Provision for income taxes United States Federal Current $ 70 $ 55 $ 161 Deferred (96) 19 (11) Outside the United States Current 77 62 86 Deferred (14) (32) (22) State and other Current 5 — 30 Deferred (1) 36 (18) Total $ 41 $ 140 $ 226 |
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 "Accumulated other comprehensive income (loss)" ("AOCI") in the Consolidated Statements of Financial Position: For years ended December 31, (Dollars in millions) 2020 2019 2018 Defined benefit pension and other postretirement benefit plans $ (7) $ (10) $ (10) Derivatives and hedging (4) (2) 3 Total $ (11) $ (12) $ (7) |
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) 2020 2019 2018 Earnings before income taxes $ 41 $ 140 $ 226 Other comprehensive income (11) (12) (7) Total $ 30 $ 128 $ 219 |
Schedule of Reconciliation of Income Taxes on Earnings from Continuing Operations at Federal Statutory Income Tax Rate | Differences between the provision for income taxes and income taxes computed using the U.S. Federal statutory income tax rate follow: For years ended December 31, (Dollars in millions) 2020 2019 2018 Amount computed using the statutory rate $ 109 $ 189 $ 274 State income taxes, net 2 36 6 Foreign rate variance (49) (68) (52) Change in reserves for tax contingencies 4 36 21 General business credits (39) (52) (60) U.S. tax on foreign earnings 13 (17) 10 Foreign tax credits — — (12) Tax law changes and tax loss from outside-U.S. entity reorganizations — 7 20 Other 1 9 19 Provision for income taxes $ 41 $ 140 $ 226 Effective income tax rate 8 % 16 % 17 % |
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) 2020 2019 Deferred tax assets Post-employment obligations $ 280 $ 247 Net operating loss carryforwards 619 606 Tax credit carryforwards 216 239 Environmental contingencies 68 68 Unrealized derivative loss 22 18 Other 213 173 Total deferred tax assets 1,418 1,351 Less: Valuation allowance 393 453 Deferred tax assets less valuation allowance $ 1,025 $ 898 Deferred tax liabilities Property, plant, and equipment $ (893) $ (895) Intangible assets (388) (439) Investments (305) (235) Other (175) (178) Total deferred tax liabilities $ (1,761) $ (1,747) Net deferred tax liabilities $ (736) $ (849) As recorded in the Consolidated Statements of Financial Position: Other noncurrent assets $ 112 $ 66 Deferred income tax liabilities (848) (915) Net deferred tax liabilities $ (736) $ (849) |
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) 2020 2019 Miscellaneous receivables $ 311 $ 211 Payables and other current liabilities $ 147 $ 36 Other long-term liabilities 83 139 Total income taxes payable $ 230 $ 175 |
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) 2020 2019 2018 Balance at January 1 $ 202 $ 182 $ 142 Adjustments based on tax positions related to current year 14 25 9 Adjustments based on tax positions related to prior years 63 (3) 35 Lapse of statute of limitations (22) (2) (4) Balance at December 31 (1) $ 257 $ 202 $ 182 (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) 2020 2019 2018 Balance at January 1 $ 13 $ 10 $ 6 Expense for interest, net of tax 5 5 4 Income for interest, net of tax (5) (2) — Balance at December 31 $ 13 $ 13 $ 10 Accrued penalties related to unrecognized tax positions were immaterial as of December 31, 2020, 2019, and 2018. |
BORROWINGS (Tables)
BORROWINGS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Borrowings | December 31, (Dollars in millions) 2020 2019 Borrowings consisted of: 4.5% notes due January 2021 $ — $ 185 3.5% notes due December 2021 299 298 3.6% notes due August 2022 744 741 1.50% notes due May 2023 (1) 919 840 7 1/4% debentures due January 2024 198 198 7 5/8% debentures due June 2024 43 43 3.8% notes due March 2025 701 695 1.875% notes due November 2026 (1) 609 556 7.60% debentures due February 2027 195 195 4.5% notes due December 2028 493 493 4.8% notes due September 2042 493 493 4.65% notes due October 2044 874 874 Commercial paper and short-term borrowings 50 171 Total borrowings 5,618 5,782 Borrowings due within one year 349 171 Long-term borrowings $ 5,269 $ 5,611 |
Schedule of Fair Value of Borrowings | Fair Value of Borrowings Eastman has classified its total borrowings at December 31, 2020 and 2019 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, 2020 and 2019 , the fair value of total borrowings was $6.449 billion and $6.275 billion, respectively. The Company had no borrowings classified as Level 1 or Level 3 as of December 31, 2020 and 2019 . |
DERIVATIVE AND NON-DERIVATIVE_2
DERIVATIVE AND NON-DERIVATIVE FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Cumulative basis adjustments for fair value hedges on balance sheet [Table Text Block] | As of December 31, 2020 and 2019, 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, 2020 December 31, 2019 December 31, 2020 December 31, 2019 Long-term borrowings (1) $ 772 $ 763 $ (1) $ (7) (1) The cumulative amount of fair value hedging loss adjustment remaining for hedged liabilities for which hedge accounting has been discontinued was $5 million and $7 million at December 31, 2020 and December 31, 2019 , respectively. |
Schedule of Notional Amounts of Outstanding Derivative Positions [Table Text Block] | The following table presents the notional amounts outstanding at December 31, 2020 and 2019 associated with Eastman's hedging programs. Notional Outstanding December 31, 2020 December 31, 2019 Derivatives designated as cash flow hedges: Foreign Exchange Forward and Option Contracts (in millions) EUR/USD (in EUR) €521 €630 Commodity Forward and Collar Contracts Feedstock (in million barrels) — 1 Energy (in million british thermal units) 17 27 Interest rate swaps for the future issuance of debt (in millions) 75 — 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) €853 €851 Non-derivatives designated as net investment hedges: Foreign Currency Net Investment Hedges (in millions) EUR/USD (in EUR) €1,245 €1,243 |
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, 2020 and 2019. The Financial Position and Fair Value Measurements of Hedging Instruments on a Gross Basis (Dollars in millions) Derivative Type Statements of Financial December 31, 2020 December 31, 2019 Derivatives designated as cash flow hedges: Commodity contracts Other current assets $ 1 $ — Foreign exchange contracts Other current assets — 13 Foreign exchange contracts Other noncurrent assets — 2 Forward starting interest rate swap contracts Other noncurrent assets 1 — Derivatives designated as fair value hedges: Fixed-for-floating interest rate swap Other current assets 1 1 Fixed-for-floating interest rate swap Other noncurrent assets 4 — Derivatives designated as net investment hedges: Cross-currency interest rate swaps Other noncurrent assets 40 68 Total Derivative Assets $ 47 $ 84 Derivatives designated as cash flow hedges: Commodity contracts Payables and other current liabilities $ 6 $ 26 Commodity contracts Other long-term liabilities — 2 Foreign exchange contracts Payables and other current liabilities 21 1 Foreign exchange contracts Other long-term liabilities 14 2 Derivatives designated as fair value hedges: Fixed-for-floating interest rate swap Long-term borrowings — 1 Derivatives designated as net investment hedges: Cross-currency interest rate swaps Other long-term liabilities 51 — Total Derivative Liabilities $ 92 $ 32 Total Net Derivative Assets (Liabilities) $ (45) $ 52 |
Schedule of Derivative Instrument Gain Loss in Statement of Financial Performance | 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, 2020 and 2019: (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 2020 2019 2020 2019 Derivatives in cash flow hedging relationships: Commodity contracts $ 17 $ (2) $ (31) $ (40) Foreign exchange contracts (36) (5) 9 26 Forward starting interest rate and treasury lock swap contracts 8 4 (9) (6) Non-derivatives in net investment hedging relationships (pre-tax): Net investment hedges (130) 26 — — Derivatives in net investment hedging relationships (pre-tax): Cross-currency interest rate swaps (88) 19 — — Cross-currency interest rate swaps excluded component 10 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 2020 and 2019. Location and Amount of Gain or (Loss) Recognized in Earnings on Fair Value and Cash Flow Hedging Relationships Twelve Months 2020 2019 (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 $ 8,473 $ 6,498 $ 210 $ 9,273 $ 7,039 $ 218 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 1 Derivatives designated as hedging instruments (1) (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 (9) (6) Commodity Contracts: Amount reclassified from AOCI into earnings (31) (40) Foreign Exchange Contracts: Amount reclassified from AOCI into earnings 9 26 |
RETIREMENT PLANS (Tables)
RETIREMENT PLANS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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 2020 and 2019, the funded status of the plans and amounts recognized in the Consolidated Statements of Financial Position. Summary of Changes Pension Plans Postretirement Benefit Plans 2020 2019 2020 2019 (Dollars in millions) U.S. Non-U.S. U.S. Non-U.S. Change in projected benefit obligation: Benefit obligation, beginning of year $ 2,067 $ 972 $ 1,959 $ 840 $ 716 $ 672 Service cost 25 17 27 14 — — Interest cost 57 15 76 20 19 25 Actuarial loss 203 66 200 113 57 71 Settlement (122) (6) — — — — Plan amendments and other — (12) — — — — Plan participants' contributions — 1 — 1 10 10 Effect of currency exchange — 61 — 11 — 1 Federal subsidy on benefits paid — — — — 1 — Benefits paid (180) (25) (195) (27) (58) (63) Benefit obligation, end of year $ 2,050 $ 1,089 $ 2,067 $ 972 $ 745 $ 716 Change in plan assets: Fair value of plan assets, beginning of year $ 1,919 $ 820 $ 1,820 $ 713 $ 139 $ 135 Actual return on plan assets 175 72 289 102 18 27 Effect of currency exchange — 54 — 9 — — Company contributions 6 22 5 22 39 42 Reserve for third party contributions — — — — (5) (12) Plan participants' contributions — 1 — 1 10 10 Benefits paid (180) (25) (195) (27) (58) (63) Federal subsidy on benefits paid — — — — 1 — Settlements (122) (6) — — — — Fair value of plan assets, end of year $ 1,798 $ 938 $ 1,919 $ 820 $ 144 $ 139 Funded status at end of year $ (252) $ (151) $ (148) $ (152) $ (601) $ (577) Amounts recognized in the Consolidated Statements of Financial Position consist of: Other noncurrent assets $ — $ 1 $ 13 $ — $ 57 $ 50 Current liabilities (3) (1) (3) (1) (46) (47) Post-employment obligations (249) (151) (158) (151) (612) (580) Net amount recognized, end of year $ (252) $ (151) $ (148) $ (152) $ (601) $ (577) Accumulated benefit obligation $ 1,979 $ 1,036 $ 2,005 $ 919 Amounts recognized in accumulated other comprehensive income consist of: Prior service (credit) cost $ 1 $ (11) $ 2 $ — $ (105) $ (143) |
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) 2020 2019 U.S. Non-U.S. U.S. Non-U.S. Projected benefit obligation $ 2,050 $ 769 $ 1,673 $ 972 Fair value of plan assets 1,798 617 1,512 820 |
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) 2020 2019 U.S. Non-U.S. U.S. Non-U.S. Projected benefit obligation $ 2,050 $ 718 $ 1,673 $ 651 Accumulated benefit obligation 1,979 693 1,611 625 Fair value of plan assets 1,798 574 1,512 513 |
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 2020 2019 2018 2020 2019 2018 (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 $ 25 $ 17 $ 27 $ 14 $ 35 $ 14 $ — $ — $ — Interest cost 57 15 76 20 67 20 19 25 22 Expected return on plan assets (135) (34) (128) (32) (147) (37) (5) (5) (5) Amortization of: Prior service (credit) cost 1 (1) — — (1) 1 (38) (39) (40) Mark-to-market pension and other postretirement benefits (gain) loss, net 163 28 39 43 89 36 49 61 (26) Net periodic benefit (credit) cost $ 111 $ 25 $ 14 $ 45 $ 43 $ 34 $ 25 $ 42 $ (49) Other changes in plan assets and benefit obligations recognized in other comprehensive income: Current year prior service credit (cost) $ — $ 12 $ — $ — $ — $ — $ — $ — $ — Amortization of: Prior service (credit) cost 1 (1) — — (1) 1 (38) (39) (40) Total $ 1 $ 11 $ — $ — $ (1) $ 1 $ (38) $ (39) $ (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 2020 2019 2018 2020 2019 2018 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 2.48 % 1.08 % 3.25 % 1.56 % 4.29 % 2.35 % 2.38 % 3.21 % 4.26 % Interest crediting rate 5.50 % N/A 5.52 % N/A 5.54 % N/A N/A N/A N/A Rate of compensation increase 2.75 % 2.94 % 3.25 % 2.94 % 3.25 % 2.94 % N/A 3.25 % 3.25 % Health care cost trend Initial 6.25 % 6.50 % 6.50 % Decreasing to ultimate trend of 5.00 % 5.00 % 5.00 % in year 2026 2026 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 3.25 % 1.56 % 4.29 % 2.35 % 3.57 % 2.25 % 3.21 % 4.26 % 3.54 % Discount rate for service cost 3.31 % 1.56 % 4.32 % 2.35 % 3.64 % 2.25 % 2.92 % 4.05 % 3.28 % Discount rate for interest cost 2.83 % 1.56 % 3.96 % 2.35 % 3.18 % 2.25 % 2.80 % 3.93 % 3.14 % Expected return on assets 7.37 % 4.26 % 7.43 % 4.49 % 7.48 % 4.83 % 3.75 % 3.75 % 3.75 % Rate of compensation increase 3.25 % 2.94 % 3.25 % 2.94 % 3.25 % 2.95 % 3.25 % 3.25 % 3.25 % Interest crediting rate 5.52 % N/A 5.54 % N/A 5.55 % N/A N/A N/A N/A 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 |
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, 2020 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 and Cash Equivalents (1) $ 47 $ 103 $ 47 $ 103 $ — $ — $ — $ — Public Equity - United States (2) 1 — 1 — — — — — Other Investments (3) — 68 — — — — — 68 Total Assets at Fair Value $ 48 $ 171 $ 48 $ 103 $ — $ — $ — $ 68 Investments Measured at Net Asset Value (4) 1,750 767 Total Assets $ 1,798 $ 938 (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 Pension Assets: U.S. Non-U.S. U.S. Non-U.S. U.S. Non-U.S. U.S. Non-U.S. Cash and 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 (1) Cash and 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, public equity, and public real asset 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 Description Total Fair Value Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Postretirement Benefit Plan Assets: Cash and Cash Equivalents (1) $ 1 $ 1 $ — $ — Debt (2) : Fixed Income (U.S.) 89 — 89 — Fixed Income (Non-U.S.) 25 — 25 — Total $ 115 $ 1 $ 114 $ — (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: Debt (2) : Fixed Income (U.S.) $ 85 $ — $ 85 $ — Fixed Income (Non-U.S.) 26 — 26 — Total $ 111 $ — $ 111 $ — (1) Cash and Cash Equivalents: Funds generally invested in actively managed collective trust funds or interest bearing accounts. (2) 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. |
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, 2018 $ 51 Unrealized gains 5 Purchases, issuances, sales, and settlements 1 Balance at December 31, 2019 57 Unrealized gains 9 Purchases, issuances, sales, and settlements 2 Balance at December 31, 2020 $ 68 (1) Primarily consists of insurance contracts. |
Schedule of US and Non-US Pension Plans Asset Target Allocation by Category | The following table reflects the target allocation for the Company's U.S. and non-U.S. pension and postretirement benefit plans assets for 2021 and the asset allocation at December 31, 2020 and 2019, by asset category. U.S. Pension Plans Non-U.S. Pension Plans Postretirement Benefit Plan 2021 Target Allocation Plan Assets at Plan Assets at 2021 Target Allocation Plan Assets at Plan Assets at 2021 Target Allocation Plan Assets at Plan Assets at Asset category Equity securities 41% 39% 50% 24% 20% 21% —% —% —% Debt securities 39% 43% 37% 59% 57% 53% 100% 100% 100% Real estate 2% 2% 2% 5% 6% 8% —% —% —% Other investments (1) 18% 16% 11% 12% 17% 18% —% —% —% 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 and public real assets. 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 (Dollars in millions) U.S. Non-U.S. 2021 $ 151 $ 33 $ 56 2022 147 34 53 2023 143 38 48 2024 135 39 47 2025 142 39 47 2026-2030 639 242 221 |
LEASES AND OTHER COMMITMENTS _2
LEASES AND OTHER COMMITMENTS LEASES AND OTHER COMMITMENTS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Lessee, Operating Lease, Liability, Maturity [Table Text Block] | As of December 31, 2020, maturities of operating lease liabilities is provided below: (Dollars in millions) Operating lease liabilities 2021 $ 60 2022 44 2023 31 2024 18 2025 12 2026 and beyond 28 Total lease payments 193 Less: amounts of lease payments representing interest 14 Present value of future lease payments 179 Less: current obligations under leases 56 Long-term lease obligations $ 123 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 |
Lease, Cost [Table Text Block] | (Dollars in millions) 2020 2019 Lease costs: Operating lease costs $ 73 $ 70 Short-term lease costs 37 40 Sublease income (4) (2) Total $ 106 $ 108 Other operating lease information: Cash paid for amounts included in the measurement of lease liabilities $ 72 $ 72 Right-to-use assets obtained in exchange for new lease liabilities $ 55 $ 54 Weighted-average remaining lease term, in years 5 5 Weighted-average discount rate 3.6 % 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 2021 $ 299 $ 50 $ 172 $ 187 $ 60 $ 274 $ 1,042 2022 744 — 174 174 44 95 1,231 2023 919 — 157 137 31 91 1,335 2024 241 — 137 140 18 99 635 2025 701 — 119 112 12 87 1,031 2026 and beyond 2,664 — 1,291 2,432 28 1,191 7,606 Total $ 5,568 $ 50 $ 2,050 $ 3,182 $ 193 $ 1,837 $ 12,880 |
ENVIRONMENTAL MATTERS (Tables)
ENVIRONMENTAL MATTERS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Environmental Matters [Abstract] | |
Schedule of Environmental Liabilities, Current and Non-current | (Dollars in millions) December 31, 2020 2019 Environmental contingencies, current $ 15 $ 20 Environmental contingencies, long-term 270 267 Total $ 285 $ 287 |
Schedule of Changes to Environmental Remediation Liabilities | (Dollars in millions) Environmental Remediation Liabilities Balance at December 31, 2018 $ 271 Changes in estimates recognized in earnings and other 4 Cash reductions (15) Balance at December 31, 2019 260 Changes in estimates recognized in earnings and other 7 Cash reductions (10) Balance at December 31, 2020 $ 257 |
STOCKHOLDERS' EQUITY (Tables)
STOCKHOLDERS' EQUITY (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Reconciliation of the Changes in Stockholders' Equity | A reconciliation of the changes in stockholders' equity for 2020, 2019, and 2018 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, 2017 $ 2 $ 1,983 $ 6,802 $ (209) $ (3,175) $ 5,403 $ 77 $ 5,480 Cumulative Effect of Adoption of New Accounting Standards (1) — — 16 — — 16 — 16 Net Earnings — — 1,080 — — 1,080 4 1,084 Cash Dividends (2) — — (325) — — (325) — (325) Other Comprehensive (Loss) — — — (36) — (36) — (36) Share-Based Compensation Expense (3) — 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 Net Earnings — — 478 — — 478 11 489 Cash Dividends (1) — — (363) — — (363) — (363) Other Comprehensive Income — — — (59) — (59) — (59) Share-Based Compensation Expense (2) — 44 — — — 44 — 44 Stock Option Exercises — 36 — — — 36 — 36 Other (4) — (11) — — — (11) 2 (9) Share Repurchase — — — — (60) (60) — (60) Distributions to noncontrolling interest — — — — — — (2) (2) Balance at December 31, 2020 $ 2 $ 2,174 $ 8,080 $ (273) $ (3,960) $ 6,023 $ 85 $ 6,108 (1) 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. (2) Cash dividends includes cash dividends paid and dividends declared, but unpaid. (3) Share-based compensation expense is the fair value of share-based awards (4) Additional paid-in capital includes value of shares withheld for employees' taxes on vesting of share-based compensation awards. (5) On January 1, 2019, Eastman adopted ASU 2018-02 Income Statement - Reporting Comprehensive Income |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | For years ended December 31, (In millions, except per share amounts) 2020 2019 2018 Numerator Net earnings attributable to Eastman $ 478 $ 759 $ 1,080 Denominator Weighted average shares used for basic EPS 135.5 137.4 141.2 Dilutive effect of stock options and other award plans 1.0 1.1 1.7 Weighted average shares used for diluted EPS 136.5 138.5 142.9 EPS (1) Basic $ 3.53 $ 5.52 $ 7.65 Diluted $ 3.50 $ 5.48 $ 7.56 (1) EPS is calculated using whole dollars and shares. |
Schedule of Shares of Common Stock Issued | For years ended December 31, 2020 2019 2018 Balance at beginning of year 219,638,646 219,140,523 218,369,992 Issued for employee compensation and benefit plans 1,002,860 498,123 770,531 Balance at end of year 220,641,506 219,638,646 219,140,523 |
Schedule of Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) 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, 2018 $ (309) $ 106 $ (41) $ (1) $ (245) Period change (1) 45 — (14) — 31 Balance at December 31, 2019 (264) 106 (55) (1) (214) Period change (29) (19) (11) — (59) Balance at December 31, 2020 $ (293) $ 87 $ (66) $ (1) $ (273) |
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, 2020 2019 2018 (Dollars in millions) Before Tax Net of Tax Before Tax Net of Tax Before Tax Net of Tax Change in cumulative translation adjustment $ (29) $ (29) $ 45 $ 45 $ (13) $ (13) Defined benefit pension and other postretirement benefit plans: Prior service credit arising during the period 12 9 — — — — Amortization of unrecognized prior service credits included in net periodic costs (38) (28) (39) (29) (40) (30) Derivatives and hedging: Unrealized gain (loss) during period (46) (34) (27) (20) 30 22 Reclassification adjustment for (gains) losses included in net income, net 31 23 20 15 (20) (15) Total other comprehensive income (loss) $ (70) $ (59) $ (1) $ 11 $ (43) $ (36) 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, 2020 | |
Restructuring Costs and Asset Impairment Charges [Abstract] | |
Schedule of Restructuring and Related Charges | Components of asset impairments and restructuring charges, net, are presented below: For years ended December 31, (Dollars in millions) 2020 2019 2018 Fixed Asset Impairments CI & AFP - Singapore (1) $ — $ 27 $ — Site optimizations AFP - Tire additives (2) 5 — — AM - Performance films (3) 5 — — AFP - Animal nutrition (4) 3 — — Discontinuation of growth initiatives (5) 8 — — 21 27 — Intangible Asset Impairments AFP - Tradenames (6) 123 — — AFP - Customer relationships (7) 2 — — AFP - Goodwill (8) — 45 38 AM - Customer relationships (7) — — 1 125 45 39 Severance Charges Business improvement and cost reduction actions (9) 47 45 6 CI & AFP - Singapore (1) 6 — — Site optimizations AM - Advanced interlayers (10) 5 — — AFP - Tire additives (2) 3 — — AM - Performance films (3) 3 — — AFP - Animal nutrition (4) 1 — — 65 45 6 Other Restructuring Costs Cost reduction initiatives (9) 14 5 — Discontinuation of growth initiatives contract termination fees (5) 4 — — AFP - Animal nutrition (4) (2) — — AFP - Discontinued capital project (11) — 4 — 16 9 — Total $ 227 $ 126 $ 45 (1) Asset impairment charges of $22 million and $5 million in the CI segment and the AFP segment, respectively, and severance charges of $5 million and $1 million in the CI segment and the AFP segment, respectively, resulting from the previously disclosed plan to discontinue production of certain products at the Singapore manufacturing site. Total asset impairments and restructuring charges for this action are expected to be up to $50 million continuing through 2021. (2) Fixed asset impairments and severance in the AFP segment from the closure of a tire additives manufacturing facility in Asia Pacific as part of ongoing site optimization . (3) Fixed asset impairments and severance in the Advanced Materials ("AM") segment from the closure of a performance films manufacturing facility in North America as part of ongoing site optimization. (4) Fixed asset impairments, severance, and other restructuring gains in the AFP segment from the closure of an animal nutrition manufacturing facility in Asia Pacific as part of ongoing site optimization. (5) Fixed asset impairments and contract termination fees resulting from management's decision to discontinue growth initiatives for polyester based microfibers, including Avra ™ performance fibers, the financial results of which were not allocated to an operating segment and reported in "Other". (6) Intangible asset impairment charges in the AFP segment tire additives business to reduce the carrying values of the Crystex ™ and Santoflex ™ tradenames to the estimated fair values. The estimated fair values were determined using an income approach, specifically, the relief from royalty method, including some unobservable inputs. The impairments are primarily the result of weakened demand in transportation markets impacted by COVID-19 and increased competitive pricing pressure as a result of global capacity increases. (7) Intangible asset impairment charge for customer relationships. (8) Goodwill impairment charge in the crop protection reporting unit resulting from the annual impairment test. In first quarter 2020 the crop protection reporting unit combined with the care chemicals reporting unit as a result of business management realignment. (9) Severance and related costs as part of business improvement and cost reduction initiatives which were reported in "Other". (10) Severance in the AM segment due to the closure of an advanced interlayers manufacturing facility in North America as part of ongoing site optimization. In addition, accelerated depreciation of $8 million was recognized in "Cost of sales" in the Consolidated Statements of Earnings, Comprehensive Income and Retained Earnings in 2020 related to the closure of this facility. Management expects total charges of up to $30 million, mostly in "Cost of sales" and in "Asset impairments and restructuring charges, net" in the Consolidated Statements of Earnings, Comprehensive Income and Retained Earnings, continuing through 2021 for the closure of this facility. (11) Additional restructuring charge related to a capital project in the AFP segment that was discontinued in 2016. |
Schedule of Changes to Restructuring Reserve and Related Activities | (Dollars in millions) Balance at Provision/ Adjustments Non-cash Reductions/ Additions Cash Balance at Non-cash charges $ — $ 145 $ (145) $ — $ — Severance costs 17 65 1 (18) 65 Site closure & restructuring costs 11 17 — (14) 14 Total $ 28 $ 227 $ (144) $ (32) $ 79 (Dollars in millions) Balance at Provision/ Adjustments Non-cash Reductions/ Additions Cash Balance at 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 |
OTHER CHARGES (INCOME), NET (Ta
OTHER CHARGES (INCOME), NET (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Other Income and Expenses [Abstract] | |
Schedule of Other Nonoperating Income (Expense) | For years ended December 31, (Dollars in millions) 2020 2019 2018 Foreign exchange transaction losses (gains), net (1) $ 16 $ 9 $ 12 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 (15) (10) (17) Coal gasification incident property insurance — — (65) Other, net 7 4 4 Other (income) charges, net $ 8 $ 3 $ (53) |
SHARE-BASED COMPENSATION PLAN_2
SHARE-BASED COMPENSATION PLANS AND AWARDS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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 2020, 2019, and 2018 are provided in the table below: Assumptions 2020 2019 2018 Expected volatility rate 21.56% 19.80% 19.03% Expected dividend yield 3.30% 2.51% 2.48% Average risk-free interest rate 0.94% 2.44% 2.61% Expected term years 5.9 5.7 5.1 |
Schedule of Activity of Stock Option Awards | A summary of the activity of the Company's stock option awards for 2020, 2019, and 2018 is presented below: 2020 2019 2018 Options Weighted-Average Exercise Price Options Weighted-Average Exercise Price Options Weighted-Average Exercise Price Outstanding at beginning of year 3,479,300 $ 80 2,905,600 $ 79 2,614,100 $ 70 Granted 622,000 62 786,000 81 619,700 104 Exercised (568,800) 64 (135,700) 67 (323,000) 55 Cancelled, forfeited, or expired (5,900) 82 (76,600) 88 (5,200) 78 Outstanding at end of year 3,526,600 $ 79 3,479,300 $ 80 2,905,600 $ 79 Options exercisable at year-end 2,192,300 2,077,600 1,606,800 Available for grant at end of year 4,046,748 6,085,857 8,174,614 |
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, 2020: Options Outstanding Options Exercisable Range of Exercise Prices Number Outstanding at Weighted-Average Remaining Contractual Life (Years) Weighted-Average Exercise Price Number Exercisable at Weighted-Average Exercise Price $38-$64 658,900 8.8 $ 61 21,300 $ 44 $65-$74 829,900 6.2 70 781,900 70 $75-$89 1,440,800 6.7 82 991,100 82 $90-$104 597,000 7.2 104 398,000 104 3,526,600 7.1 $ 79 2,192,300 $ 81 |
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, 2020 is presented below: Nonvested Options Number of Options Weighted-Average Grant Date Fair Value Nonvested at January 1, 2020 1,401,700 $13.68 Granted 622,000 $7.92 Vested (689,400) $13.47 Nonvested options at December 31, 2020 1,334,300 $11.11 |
SUPPLEMENTAL CASH FLOW INFORM_2
SUPPLEMENTAL CASH FLOW INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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) 2020 2019 2018 Current assets $ (1) $ (5) $ (47) Other assets (14) 15 43 Current liabilities 5 (82) (38) Long-term liabilities and equity 15 (17) 87 Total $ 5 $ (89) $ 45 |
Schedule of Cash Paid for Interest and Income Taxes and Noncash Investing and Financing Activities | For years ended December 31, (Dollars in millions) 2020 2019 2018 Interest, net of amounts capitalized $ 191 $ 235 $ 239 Income taxes 179 217 202 Non-cash investing activities: Outstanding trade payables related to capital expenditures 20 22 18 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Schedule of Segment Information | For years ended December 31, (Dollars in millions) 2020 2019 2018 Sales by Segment Additives & Functional Products $ 3,022 $ 3,273 $ 3,647 Advanced Materials 2,524 2,688 2,755 Chemical Intermediates 2,090 2,443 2,831 Fibers 837 869 918 Total Sales $ 8,473 $ 9,273 $ 10,151 For years ended December 31, (Dollars in millions) 2020 2019 2018 Earnings Before Interest and Taxes by Segment Additives & Functional Products $ 312 $ 496 $ 639 Advanced Materials 427 517 509 Chemical Intermediates 166 170 308 Fibers 180 194 257 Total EBIT by Operating Segment 1,085 1,377 1,713 Other Growth initiatives and businesses not allocated to operating segments (95) (102) (114) Pension and other postretirement benefit plans income (expense), net not allocated to operating segments (156) (97) (17) Asset impairments and restructuring charges, net (73) (49) (6) Other income (charges), net not allocated to operating segments (20) (9) (24) Total EBIT $ 741 $ 1,120 $ 1,552 December 31, (Dollars in millions) 2020 2019 Assets by Segment (1) Additives & Functional Products $ 6,238 $ 6,387 Advanced Materials 4,345 4,415 Chemical Intermediates 2,614 2,775 Fibers 978 1,014 Total Assets by Operating Segment 14,175 14,591 Corporate Assets 1,908 1,417 Total Assets $ 16,083 $ 16,008 (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) 2020 2019 2018 Depreciation and Amortization Expense by Segment Additives & Functional Products $ 220 $ 218 $ 219 Advanced Materials 187 172 169 Chemical Intermediates 108 150 151 Fibers 56 64 64 Total Depreciation and Amortization Expense by Operating Segment 571 604 603 Other 3 7 1 Total Depreciation and Amortization Expense $ 574 $ 611 $ 604 For years ended December 31, (Dollars in millions) 2020 2019 2018 Capital Expenditures by Segment Additives & Functional Products $ 126 $ 152 $ 150 Advanced Materials 140 130 187 Chemical Intermediates 84 98 137 Fibers 31 42 50 Total Capital Expenditures by Operating Segment 381 422 524 Other 2 3 4 Total Capital Expenditures $ 383 $ 425 $ 528 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 2020 2019 2018 Sales United States $ 3,437 $ 3,720 $ 4,118 All foreign countries 5,036 5,553 6,033 Total $ 8,473 $ 9,273 $ 10,151 December 31, 2020 2019 2018 Net properties United States $ 4,106 $ 4,178 $ 4,228 All foreign countries 1,443 1,393 1,372 Total $ 5,549 $ 5,571 $ 5,600 |
Revenue from External Customers by Products and Services [Table Text Block] | Percentage of Total Segment Sales AFP Product Lines 2020 2019 2018 Adhesives Resins 16% 15% 16% Animal Nutrition 8% 9% 10% Care Chemicals 24% 22% 21% Coatings and Inks Additives 25% 24% 23% Specialty Fluids 13% 14% 13% Tire Additives 14% 16% 17% Total 100% 100% 100% Percentage of Total Segment Sales AM Product Lines 2020 2019 2018 Advanced Interlayers 29% 32% 33% Performance Films 20% 19% 18% Specialty Plastics 51% 49% 49% Total 100% 100% 100% Percentage of Total Segment Sales CI Product Lines 2020 2019 2018 Functional Amines 23% 20% 20% Intermediates 57% 59% 60% Plasticizers 20% 21% 20% Total 100% 100% 100% Percentage of Total Segment Sales Fibers Product Lines 2020 2019 2018 Acetate Tow 70% 68% 69% Acetate Yarn 9% 12% 10% Acetyl Chemical Products 16% 15% 15% Nonwovens 5% 5% 6% Total 100% 100% 100% |
Revenue from External Customers by Geographic Areas [Table Text Block] | Percentage of Total Segment Sales AFP Sales by Customer Location 2020 2019 2018 United States and Canada 38% 37% 36% Asia Pacific 24% 24% 24% Europe, Middle East, and Africa 32% 33% 34% Latin America 6% 6% 6% Total 100% 100% 100% Percentage of Total Segment Sales AM Sales by Customer Location 2020 2019 2018 United States and Canada 34% 34% 35% Asia Pacific 33% 32% 33% Europe, Middle East, and Africa 27% 28% 27% Latin America 6% 6% 5% Total 100% 100% 100% Percentage of Total Segment Sales CI Sales by Customer Location 2020 2019 2018 United States and Canada 65% 64% 64% Asia Pacific 13% 14% 15% Europe, Middle East, and Africa 16% 15% 15% Latin America 6% 7% 6% Total 100% 100% 100% Percentage of Total Segment Sales Fibers Sales by Customer Location 2020 2019 2018 United States and Canada 26% 25% 26% Asia Pacific 32% 32% 33% Europe, Middle East, and Africa 39% 39% 37% Latin America 3% 4% 4% Total 100% 100% 100% |
QUARTERLY SALES AND EARNINGS _2
QUARTERLY SALES AND EARNINGS DATA-UNAUDITED (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Quarterly Financial Data [Abstract] | |
Schedule of Quarterly Financial Information | (Dollars in millions, except per share amounts) First Quarter Second Quarter Third Quarter Fourth Quarter 2020 Sales $ 2,241 $ 1,924 $ 2,122 $ 2,186 Gross profit 577 371 501 526 Asset impairments and restructuring charges, net 14 141 60 12 Net earnings attributable to Eastman $ 258 $ 27 $ 161 $ 32 Net earnings per share attributable to Eastman (1) Basic $ 1.90 $ 0.20 $ 1.19 $ 0.23 Diluted $ 1.89 $ 0.20 $ 1.18 $ 0.23 (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 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. |
RESERVE ROLLFORWARDS (Tables)
RESERVE ROLLFORWARDS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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, Charges (Credits) to Cost and Expense Other Accounts Balance at December 31, 2020 Reserve for: Credit losses $ 11 $ 4 $ — $ 1 $ 14 LIFO inventory 248 (22) — — 226 Non-environmental asset retirement obligations 48 2 1 — 51 Environmental contingencies 287 8 — 10 285 Deferred tax valuation allowance 453 (61) 1 — 393 $ 1,047 $ (69) $ 2 $ 11 $ 969 (Dollars in millions) Additions Balance at January 1, Charges (Credits) to Cost and Expense Other Accounts Balance at December 31, 2019 Reserve for: Credit losses $ 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: Credit losses $ 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 410 81 (4) — 487 $ 1,063 $ 132 $ 1 $ 19 $ 1,177 |
SIGNIFICANT ACCOUNTING POLICI_3
SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Retained earnings | $ 8,080 | $ 7,965 | $ 7,573 | $ 6,802 | |
Revenue Recognition [Abstract] | |||||
Contract with Customer, Liability | 18 | 4 | |||
Contract with Customer, Asset, after Allowance for Credit Loss | $ 62 | 65 | |||
Environmental Costs [Abstract] | |||||
Expected Payment Period of Environmental Contingencies | 30 years | ||||
Accounts receivable and allowance for doubtful accounts [Abstract] | |||||
Allowance for doubtful accounts | $ 14 | 11 | |||
Working Capital Management and Off Balance Sheet Arrangements [Abstract] | |||||
Receivable Sold Under Factoring Arrangement | $ 1,500 | $ 900 | |||
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 2014-09 [Member] | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Retained earnings | $ 53 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
At FIFO or average cost (approximates current cost) [Abstract] | ||
Finished goods | $ 891 | $ 1,114 |
Work in process | 203 | 220 |
Raw materials and supplies | 511 | 576 |
Total inventories at FIFO or average cost | 1,605 | 1,910 |
Less: LIFO reserve | 226 | 248 |
Total inventories | $ 1,379 | $ 1,662 |
Inventories valued on the LIFO method (in hundredths) | 50.00% | 50.00% |
Effect of LIFO Inventory Liquidation on Income | $ 13 |
PROPERTIES AND ACCUMULATED DE_3
PROPERTIES AND ACCUMULATED DEPRECIATION (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Property, Plant and Equipment [Line Items] | |||
Properties and equipment at cost | $ 13,531 | $ 13,081 | |
Less: Accumulated depreciation | 7,982 | 7,510 | |
Net properties | 5,549 | 5,571 | |
Property, Plant, and Equipment, Additional Disclosures [Abstract] | |||
Depreciation expense | 445 | 450 | $ 437 |
Cumulative construction-period interest | 100 | 98 | |
Accumulated depreciation for cumulative construction-period interest | 41 | 38 | |
Interest capitalized | 4 | 4 | $ 4 |
Land [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Properties and equipment at cost | 163 | 158 | |
Buildings and Building Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Properties and equipment at cost | 1,824 | 1,450 | |
Machinery and Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Properties and equipment at cost | 11,494 | 11,117 | |
Construction in Progress [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Properties and equipment at cost | $ 50 | $ 356 |
GOODWILL AND OTHER INTANGIBLE_3
GOODWILL AND OTHER INTANGIBLE ASSETS Part 1 (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Changes in carrying amount of goodwill [Roll Forward] | |||
Beginning Balance | $ 4,431 | $ 4,467 | |
Acquisitions | 15 | ||
Impairments recognized | (45) | ||
Currency translation adjustments | 34 | (6) | |
Ending Balance | 4,465 | 4,431 | $ 4,467 |
Additives And Functional Products [Member] | |||
Changes in carrying amount of goodwill [Roll Forward] | |||
Beginning Balance | 2,377 | 2,410 | |
Acquisitions | 15 | ||
Impairments recognized | 0 | (45) | (38) |
Currency translation adjustments | 20 | (3) | |
Ending Balance | 2,397 | 2,377 | 2,410 |
Goodwill, Impaired, Accumulated Impairment Loss | 106 | ||
Advanced Materials [Member] | |||
Changes in carrying amount of goodwill [Roll Forward] | |||
Beginning Balance | 1,282 | 1,283 | |
Acquisitions | 0 | ||
Impairments recognized | 0 | ||
Currency translation adjustments | 10 | (1) | |
Ending Balance | 1,292 | 1,282 | 1,283 |
Chemical Intermediates [Member] | |||
Changes in carrying amount of goodwill [Roll Forward] | |||
Beginning Balance | 762 | 764 | |
Acquisitions | 0 | ||
Impairments recognized | 0 | ||
Currency translation adjustments | 4 | (2) | |
Ending Balance | 766 | 762 | 764 |
Goodwill, Impaired, Accumulated Impairment Loss | 12 | ||
Other Segments [Member] | |||
Changes in carrying amount of goodwill [Roll Forward] | |||
Beginning Balance | 10 | 10 | |
Acquisitions | 0 | ||
Impairments recognized | 0 | ||
Currency translation adjustments | 0 | 0 | |
Ending Balance | 10 | 10 | $ 10 |
Goodwill, Impaired, Accumulated Impairment Loss | 14 | ||
Crop Protection [Member] | Additives And Functional Products [Member] | |||
Changes in carrying amount of goodwill [Roll Forward] | |||
Beginning Balance | $ 190 | ||
Ending Balance | 190 | ||
Goodwill, Impairment Loss, Net of Tax | $ 45 |
GOODWILL AND OTHER INTANGIBLE_4
GOODWILL AND OTHER INTANGIBLE ASSETS Part 2 (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Intangible Assets [Line Items] | |||
Gross Carrying Value | $ 2,780 | $ 2,870 | |
Accumulated Amortization | 988 | 859 | |
Finite-Lived Intangible Assets, Net | 1,792 | 2,011 | |
Amortization expense of definite-lived intangible assets related to continuing operations | 128 | 160 | $ 164 |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |||
2021 | 125 | ||
2022 | 115 | ||
2023 | 115 | ||
2024 | 115 | ||
2025 | 110 | ||
Trademarks [Member] | |||
Intangible Assets [Line Items] | |||
Gross Carrying Value | 364 | 529 | |
Finite-Lived Intangible Assets, Net | 364 | 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 | 1,589 | 1,566 | |
Accumulated Amortization | 571 | 494 | |
Finite-Lived Intangible Assets, Net | $ 1,018 | 1,072 | |
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 | $ 687 | 677 | |
Accumulated Amortization | 392 | 343 | |
Finite-Lived Intangible Assets, Net | $ 295 | 334 | |
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 | ||
Trade Names | |||
Intangible Assets [Line Items] | |||
Estimated Useful Life in Years | 25 years | ||
Gross Carrying Value | $ 44 | 0 | |
Accumulated Amortization | 2 | 0 | |
Finite-Lived Intangible Assets, Net | 42 | 0 | |
Other Intangible Assets [Member] | |||
Intangible Assets [Line Items] | |||
Gross Carrying Value | 86 | 88 | |
Accumulated Amortization | 23 | 22 | |
Finite-Lived Intangible Assets, Net | $ 63 | $ 66 | |
Other Intangible Assets [Member] | Minimum [Member] | |||
Intangible Assets [Line Items] | |||
Estimated Useful Life in Years | 18 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, 2020 | Dec. 31, 2019 |
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 | $ 111 | $ 106 |
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, 2020 | Dec. 31, 2019 |
Payables and Accruals [Abstract] | ||
Trade creditors | $ 799 | $ 890 |
Accrued payrolls, vacation, and variable-incentive compensation | 228 | 176 |
Accrued taxes | 178 | 89 |
Post-employment obligations | 138 | 93 |
Dividends payable to shareholders | 94 | 90 |
Other | 252 | 280 |
Total payables and other current liabilities | $ 1,689 | $ 1,618 |
INCOME TAXES Part 1 (Details)
INCOME TAXES Part 1 (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Earnings from continuing operations before income taxes [Abstract] | |||
United States | $ 164 | $ 454 | $ 718 |
Outside the United States | 366 | 448 | 592 |
Total | 530 | 902 | 1,310 |
United States [Abstract] | |||
Current | 70 | 55 | 161 |
Deferred | (96) | 19 | (11) |
Outside United States [Abstract] | |||
Current | 77 | 62 | 86 |
Deferred | (14) | (32) | (22) |
State and other [Abstract] | |||
Current | 5 | 0 | 30 |
Deferred | (1) | 36 | (18) |
Provision for income taxes | 41 | 140 | 226 |
Deferred tax charge (benefit) recorded in stockholders' equity [Abstract] | |||
Defined benefit pension and other postretirement benefit plans | (7) | (10) | (10) |
Derivatives and hedging | (4) | (2) | 3 |
Other comprehensive income | (11) | (12) | (7) |
Income tax expense (benefit) included in consolidated financial statement [Abstract] | |||
Provision for income taxes | 41 | 140 | 226 |
Other comprehensive income | (11) | (12) | (7) |
Total | 30 | 128 | 219 |
Reconciliation income tax rate [Abstract] | |||
Amount computed using the statutory rate | 109 | 189 | 274 |
State income taxes, net | 2 | 36 | 6 |
Foreign rate variance | (49) | (68) | (52) |
Change in reserves for tax contingencies | 4 | 36 | 21 |
General business credits | (39) | (52) | (60) |
U.S. tax on foreign earnings | 13 | (17) | 10 |
Foreign tax credits | 0 | 0 | (12) |
Tax law changes and tax loss from outside-U.S. entity reorganizations | 0 | 7 | 20 |
Other | 1 | 9 | 19 |
Provision for income taxes | 41 | $ 140 | $ 226 |
Effective Income Tax Rate Reconciliation, Changes in Previously Unrecognized Tax Positions | $ 27 | ||
Effective Income Tax Rate Reconciliation, Percent [Abstract] | |||
Effective tax rate for the period (in hundredths) | 8.00% | 16.00% | 17.00% |
Effective Income Tax Rate Reconciliation, Other Reconciling Items, Amount [Abstract] | |||
Effective Income Tax Rate Reconciliation, Changes in Previously Unrecognized Tax Positions | $ 27 | ||
Tax benefit from finalization of prior year return | (7) | ||
Tax law changes and tax loss from outside-U.S. entity reorganizations | 0 | $ 7 | $ 20 |
Deferred tax assets [Abstract] | |||
Post-employment obligations | 280 | 247 | |
Net operating loss carryforwards | 619 | 606 | |
Tax credit carryforwards | 216 | 239 | |
Environmental contingencies | 68 | 68 | |
Unrealized derivative loss | 22 | 18 | |
Other | 213 | 173 | |
Total deferred tax assets | 1,418 | 1,351 | |
Less: Valuation allowance | 393 | 453 | |
Deferred tax assets less valuation allowance | 1,025 | 898 | |
Deferred tax liabilities [Abstract] | |||
Property, plant, and equipment | (893) | (895) | |
Intangible assets | (388) | (439) | |
Investments | (305) | (235) | |
Other | (175) | (178) | |
Total deferred tax liabilities | (1,761) | (1,747) | |
Net deferred tax liabilities | (736) | (849) | |
As recorded in the Consolidated Statements of Financial Position [Abstract] | |||
Net deferred tax liabilities | $ (736) | (849) | |
Operating Loss Carryforwards [Line Items] | |||
Document Period End Date | Dec. 31, 2020 | ||
Undistributed Earnings of Foreign Subsidiaries | $ 2,700 | ||
Change in reserves for tax contingencies | 4 | 36 | 21 |
Effective Income Tax Rate Reconciliation, Prior Year Income Taxes, Amount | 7 | ||
Deferred Tax Liabilities, Net | 736 | 849 | |
U.S. tax on foreign earnings | 13 | (17) | $ 10 |
Deferred Tax Assets, Net of Valuation Allowance | 1,025 | 898 | |
Accounting Changes and Error Corrections [Abstract] | |||
Net operating loss carryforwards | 619 | 606 | |
Deferred Tax Assets, Valuation Allowance | 393 | 453 | |
Deferred Tax Liabilities, Investments | 305 | 235 | |
Due to and from tax authorities [Abstract] | |||
Miscellaneous receivables | 311 | 211 | |
Payables and other current liabilities | 147 | 36 | |
Other long-term liabilities | 83 | 139 | |
Total income taxes payable | 230 | 175 | |
Foreign Country [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Operating Loss Carryforwards, Valuation Allowance | 217 | ||
Operating Loss Carryforwards | 2,200 | ||
Net operating loss carryforwards with expiration date | $ 700 | ||
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 | $ 1,500 | ||
Foreign tax credit carryforwards available to reduce possible future domestic income taxes | 56 | ||
Foreign Country [Member] | Solutia [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Tax Credit Carryforward, Valuation Allowance | 24 | ||
United States [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Operating Loss Carryforwards, Valuation Allowance | 29 | ||
Operating Loss Carryforwards | 3 | ||
Tax Credit Carryforward, Valuation Allowance | 72 | ||
State and Local Jurisdiction [Member] | Solutia [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Operating Loss Carryforwards, Valuation Allowance | 47 | ||
Other Noncurrent Assets [Member] | |||
Deferred tax assets [Abstract] | |||
Deferred tax assets less valuation allowance | 112 | 66 | |
Operating Loss Carryforwards [Line Items] | |||
Deferred Tax Assets, Net of Valuation Allowance | 112 | 66 | |
Other Noncurrent Liabilities [Member] | |||
Deferred tax liabilities [Abstract] | |||
Net deferred tax liabilities | (848) | (915) | |
As recorded in the Consolidated Statements of Financial Position [Abstract] | |||
Net deferred tax liabilities | (848) | (915) | |
Operating Loss Carryforwards [Line Items] | |||
Deferred Tax Liabilities, Net | $ 848 | $ 915 |
INCOME TAXES Part 2 (Details)
INCOME TAXES Part 2 (Details) - USD ($) $ in Millions | 12 Months Ended | ||||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||||
United States [Member] | |||||||
Reconciliation of beginning and ending amounts of unrecognized tax benefits [Roll Forward] | |||||||
Beginning Balance | $ 202 | [1] | $ 182 | [1] | $ 142 | ||
Unrecognized Tax Benefits, Increase Resulting from Current Period Tax Positions | 14 | 25 | 9 | ||||
Unrecognized Tax Benefits, Decrease Resulting from Prior Period Tax Positions | (3) | ||||||
Unrecognized Tax Benefits, Increase Resulting from Prior Period Tax Positions | 63 | 35 | |||||
Lapse of statute of limitations | (22) | (2) | (4) | ||||
Ending Balance | [1] | 257 | 202 | 182 | |||
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 | 13 | 10 | $ 6 | |||
Unrecognized Tax Benefits, Interest on Income Taxes Expense | 5 | 5 | 4 | ||||
Interest income, net of tax associated with expiration of statute of limitations | (5) | $ (2) | $ 0 | ||||
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 | $ 120 | ||||||
[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 | 3 Months Ended | 12 Months Ended | ||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Debt Instrument [Line Items] | ||||||
Early debt extinguishment costs | $ 1 | $ 0 | $ 7 | |||
Total borrowings | $ 5,618 | $ 5,782 | 5,618 | 5,782 | ||
Borrowings due within one year | 349 | 171 | 349 | 171 | ||
Long-term borrowings | $ 5,269 | 5,611 | $ 5,269 | 5,611 | ||
2.7% notes due January 2020 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Stated Interest Rate (in hundredths) | 2.70% | 2.70% | ||||
Maturity Date | 2020 | |||||
Extinguishment of Debt, Amount | 250 | |||||
4.5% debentures due January 2021 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Long-term Debt | $ 0 | 185 | $ 0 | 185 | ||
Stated Interest Rate (in hundredths) | 4.50% | 4.50% | ||||
Maturity Date | 2021 | |||||
Extinguishment of Debt, Amount | $ 185 | |||||
3.5% Notes Due Dec 2021 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Long-term Debt | $ 299 | 298 | $ 299 | 298 | ||
Stated Interest Rate (in hundredths) | 3.50% | 3.50% | ||||
Maturity Date | 2021 | |||||
3.6% notes due August 2022 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Long-term Debt | $ 744 | 741 | $ 744 | 741 | ||
Stated Interest Rate (in hundredths) | 3.60% | 3.60% | ||||
Maturity Date | 2022 | |||||
1.50% notes due May 2023 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Long-term Debt | [1] | $ 919 | 840 | $ 919 | 840 | |
Stated Interest Rate (in hundredths) | 1.50% | 1.50% | ||||
Maturity Date | 2023 | |||||
7 1/4% debentures due January 2024 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Long-term Debt | $ 198 | 198 | $ 198 | 198 | ||
Stated Interest Rate (in hundredths) | 7.25% | 7.25% | ||||
Maturity Date | 2024 | |||||
7 5/8% debentures due June 2024 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Long-term Debt | $ 43 | 43 | $ 43 | 43 | ||
Stated Interest Rate (in hundredths) | 7.625% | 7.625% | ||||
Maturity Date | 2024 | |||||
3.8% notes due March 2025 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Long-term Debt | $ 701 | 695 | $ 701 | 695 | ||
Stated Interest Rate (in hundredths) | 3.80% | 3.80% | ||||
Maturity Date | 2025 | |||||
1.875% notes due November 2026 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Long-term Debt | [1] | $ 609 | 556 | $ 609 | 556 | |
Stated Interest Rate (in hundredths) | 1.875% | 1.875% | ||||
Maturity Date | 2026 | |||||
7.60% debentures due February 2027 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Long-term Debt | $ 195 | 195 | $ 195 | 195 | ||
Stated Interest Rate (in hundredths) | 7.60% | 7.60% | ||||
Maturity Date | 2027 | |||||
4.5% Notes Due Dec 2028 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Long-term Debt | $ 493 | 493 | $ 493 | 493 | ||
Stated Interest Rate (in hundredths) | 4.50% | 4.50% | ||||
Maturity Date | 2028 | |||||
4.8% notes due September 2042 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Long-term Debt | $ 493 | 493 | $ 493 | 493 | ||
Stated Interest Rate (in hundredths) | 4.80% | 4.80% | ||||
Maturity Date | 2042 | |||||
4.65% notes due October 2044 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Long-term Debt | $ 874 | 874 | $ 874 | 874 | ||
Stated Interest Rate (in hundredths) | 4.65% | 4.65% | ||||
Maturity Date | 2044 | |||||
Commercial paper and short-term borrowings [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Borrowings due within one year | $ 50 | $ 171 | $ 50 | $ 171 | ||
[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) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||
Dec. 31, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Credit Facilities [Abstract] | |||||||
Borrowings due within one year | $ 349 | $ 171 | $ 349 | $ 171 | |||
Early debt extinguishment costs | 1 | 0 | $ 7 | ||||
Revolving Credit Facility [Member] | |||||||
Credit Facilities [Abstract] | |||||||
Line of Credit Facility, Current Borrowing Capacity | $ 1,500 | 1,500 | |||||
Line of Credit Facility, Maximum Month-end Outstanding Amount | $ 400 | $ 0 | $ 0 | ||||
Line of Credit Facility, Expiration Date | Oct. 31, 2023 | ||||||
Repayments of Lines of Credit | $ 400 | ||||||
Commercial Paper [Member] | |||||||
Credit Facilities [Abstract] | |||||||
Debt, Weighted Average Interest Rate | 0.25% | 2.03% | 0.25% | 2.03% | |||
Commercial Paper Borrowings | $ 50 | $ 170 | $ 50 | $ 170 | |||
Accounts Receivable Facility | |||||||
Credit Facilities [Abstract] | |||||||
Line of Credit Facility, Expiration Date | Apr. 30, 2020 | ||||||
Repayments of Lines of Credit | 350 | ||||||
Line of Credit Facility, Increase (Decrease), Net | $ 250 | ||||||
Proceeds from Lines of Credit | $ 350 | ||||||
364-Day Term Loan [Member] | |||||||
Credit Facilities [Abstract] | |||||||
Borrowings due within one year | 250 | 250 | |||||
Early debt extinguishment costs | $ 1 | ||||||
2.7% notes due January 2020 [Member] | |||||||
Credit Facilities [Abstract] | |||||||
Extinguishment of Debt, Amount | 250 | ||||||
4.5% debentures due January 2021 [Member] | |||||||
Credit Facilities [Abstract] | |||||||
Long-term Debt | 0 | $ 185 | $ 0 | $ 185 | |||
Extinguishment of Debt, Amount | $ 185 |
BORROWINGS BORROWINGS Part 3 (D
BORROWINGS BORROWINGS Part 3 (Details) Fair Value - Fair Value, Recurring [Member] - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
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 | 6,449 | 6,275 |
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 | 3 Months Ended | 12 Months Ended | ||||||||
Sep. 30, 2020USD ($) | Dec. 31, 2020USD ($)MMBTUbbl | Dec. 31, 2020EUR (€) | Dec. 31, 2019USD ($)bblMMBTU | Dec. 31, 2019EUR (€) | Dec. 31, 2020EUR (€)MMBTUbbl | Sep. 30, 2020EUR (€) | Jun. 30, 2020USD ($) | Mar. 31, 2020USD ($) | Dec. 31, 2019EUR (€)bblMMBTU | |
Foreign Exchange Contract [Member] | Euro Member Countries, Euro | Cash Flow Hedging [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Derivative, Notional Amount | € | € 521 | € 630 | ||||||||
Commodity Contract [Member] | Cash Flow Hedging [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Derivative, Nonmonetary Notional Amount | bbl | 0 | 1 | 0 | 1 | ||||||
Energy Related Derivative [Member] | Cash Flow Hedging [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Derivative, Nonmonetary Notional Amount | MMBTU | 17 | 27 | 17 | 27 | ||||||
Interest Rate Contract [Member] | Cash Flow Hedging [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Derivative, Notional Amount | $ 75 | |||||||||
Interest Rate Contract [Member] | Fair Value Hedging [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Derivative, Notional Amount | 75 | $ 75 | ||||||||
Cross Currency Swaps[Member] | Cross Currency Interest Rate Contract [Member] | Euro Member Countries, Euro | Net Investment Hedging [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Derivative, Notional Amount | € | € 853 | € 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 | € | € 150 | |||||||||
Gain (Loss) on Derivative Used in Net Investment Hedge, after Tax | $ 3 | |||||||||
Notes Due January 2021 [Member] | Cross Currency Interest Rate Contract [Member] | United States of America, Dollars | Net Investment Hedging [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Principal amount | 180 | |||||||||
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 | $ 1,500 | € 1,245 | $ 1,400 | € 1,243 | ||||||
4.5% Notes Due Dec 2028 [Member] | Cross Currency Interest Rate Contract [Member] | Euro Member Countries, Euro | Net Investment Hedging [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Principal amount | € | € 152 | |||||||||
4.5% Notes Due Dec 2028 [Member] | Cross Currency Interest Rate Contract [Member] | United States of America, Dollars | Net Investment Hedging [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Principal amount | 180 | |||||||||
Expected Debt Issuance Aug 2022 | Interest Rate Contract [Member] | Cash Flow Hedging [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Derivative, Notional Amount | $ 25 | $ 25 | $ 25 |
DERIVATIVE AND NON-DERIVATIVE_4
DERIVATIVE AND NON-DERIVATIVE FINANCIAL INSTRUMENTS Part 2 (Details) € in Millions | 12 Months Ended | ||||
Dec. 31, 2020USD ($) | Dec. 31, 2020EUR (€) | Dec. 31, 2019USD ($) | Dec. 31, 2019EUR (€) | ||
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 | 47,000,000 | 84,000,000 | |||
Derivative Liabilities [Abstract] | |||||
Derivative Liability, Fair Value, Gross Liability | (92,000,000) | (32,000,000) | |||
Derivative, Fair Value, Net | (45,000,000) | 52,000,000 | |||
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 | 1,000,000 | 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 | 6,000,000 | 26,000,000 | |||
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 | 0 | 2,000,000 | |||
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 | 0 | 13,000,000 | |||
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 | 0 | 2,000,000 | |||
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 | 21,000,000 | 1,000,000 | |||
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 | 14,000,000 | 2,000,000 | |||
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 Assets [Member] | |||||
Derivative Assets [Abstract] | |||||
Fair Value Hedge Assets | 4,000,000 | 0 | |||
Derivative Assets, Cash Flow Hedge, Fair Value | 1,000,000 | 0 | |||
Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | Interest Rate Contract [Member] | Designated as Hedging Instrument [Member] | Other Noncurrent Liabilities [Member] | |||||
Derivative Liabilities [Abstract] | |||||
Fair Value Hedge Liabilities | 0 | 1,000,000 | |||
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) | (5,000,000) | (7,000,000) | |||
Hedged Liability, Fair Value Hedge | [1] | 772,000,000 | 763,000,000 | ||
Hedged Liability, Fair Value Hedge, Cumulative Increase (Decrease) | [1] | (1,000,000) | (7,000,000) | ||
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 | 40,000,000 | 68,000,000 | |||
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 Liabilities [Member] | |||||
Derivative Liabilities [Abstract] | |||||
Derivative Instruments in Hedges, Net Investment in Foreign Operations, Liabilities, Fair Value | 51,000,000 | 0 | |||
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 | $ 1,500,000,000 | € 1,245 | $ 1,400,000,000 | € 1,243 | |
[1] | The cumulative amount of fair value hedging loss adjustment remaining for hedged liabilities for which hedge accounting has been discontinued was $5 million and $7 million at December 31, 2020 and December 31, 2019 , respectively. |
DERIVATIVE AND NON-DERIVATIVE_5
DERIVATIVE AND NON-DERIVATIVE FINANCIAL INSTRUMENTS Part 3 (Details) € in Millions | 3 Months Ended | 12 Months Ended | ||||||||||||
Dec. 31, 2020USD ($) | Sep. 30, 2020USD ($) | Jun. 30, 2020USD ($) | Mar. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2020EUR (€) | Dec. 31, 2019USD ($) | Dec. 31, 2019EUR (€) | Dec. 31, 2018USD ($) | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||||||||
Sales | $ 2,186,000,000 | $ 2,122,000,000 | $ 1,924,000,000 | $ 2,241,000,000 | $ 2,205,000,000 | $ 2,325,000,000 | $ 2,363,000,000 | $ 2,380,000,000 | $ 8,473,000,000 | $ 9,273,000,000 | $ 10,151,000,000 | |||
Cost of sales | 6,498,000,000 | 7,039,000,000 | 7,672,000,000 | |||||||||||
Interest Income (Expense), Net | (210,000,000) | (218,000,000) | (235,000,000) | |||||||||||
ASU 2017-12 Transition [Abstract] | ||||||||||||||
Unrealized Gains (Losses) on Derivative Instruments | (11,000,000) | (14,000,000) | [1] | |||||||||||
Other Comprehensive Income (Loss), Non-derivatives Qualifying as Hedges, before Tax [Abstract] | ||||||||||||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, before Tax | (29,000,000) | 45,000,000 | (13,000,000) | |||||||||||
Summary of Derivative Instruments [Abstract] | ||||||||||||||
Monetized positions and mark to market net losses in accumulated other comprehensive income before tax | (270,000,000) | $ (50,000,000) | (270,000,000) | (50,000,000) | ||||||||||
Price Risk Cash Flow Hedge Unrealized Loss to be Reclassified During Next 12 Months | $ 35,000,000 | 35,000,000 | ||||||||||||
Early debt extinguishment costs | 1,000,000 | 0 | $ 7,000,000 | |||||||||||
Commodity Contract [Member] | Cash Flow Hedging [Member] | ||||||||||||||
ASU 2017-12 Transition [Abstract] | ||||||||||||||
Unrealized Gains (Losses) on Derivative Instruments | 17,000,000 | (2,000,000) | ||||||||||||
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 | (31,000,000) | (40,000,000) | ||||||||||||
Foreign Exchange Contract [Member] | Cash Flow Hedging [Member] | ||||||||||||||
ASU 2017-12 Transition [Abstract] | ||||||||||||||
Unrealized Gains (Losses) on Derivative Instruments | (36,000,000) | (5,000,000) | ||||||||||||
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 | 9,000,000 | 26,000,000 | ||||||||||||
Interest Rate Swap [Member] | Cash Flow Hedging [Member] | ||||||||||||||
ASU 2017-12 Transition [Abstract] | ||||||||||||||
Unrealized Gains (Losses) on Derivative Instruments | 8,000,000 | 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 | (9,000,000) | (6,000,000) | ||||||||||||
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 | 1,000,000 | ||||||||||||
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) | (1,000,000) | ||||||||||||
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 | (130,000,000) | 26,000,000 | ||||||||||||
Not Designated as Hedging Instrument [Member] | ||||||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||||||||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | (1,000,000) | (2,000,000) | ||||||||||||
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 | (88,000,000) | 19,000,000 | ||||||||||||
Summary of Derivative Instruments [Abstract] | ||||||||||||||
OCI, Derivative Qualifying as Hedge, Excluded Component | 10,000,000 | 23,000,000 | ||||||||||||
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 | $ 1,500,000,000 | € 1,245 | $ 1,400,000,000 | € 1,243 | ||||||||||
[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 $9 million reclassification of stranded tax benefit from AOCI to retained earnings. See Note 1, "Significant Accounting Policies", for additional information. |
RETIREMENT PLANS (Details)
RETIREMENT PLANS (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |||
Change in projected benefit obligation [Roll Forward] | |||||
Actuarial loss | $ (240) | $ (143) | $ (99) | ||
Amortization of: [Abstract] | |||||
Prior service (credit) cost | $ (12) | $ 0 | 0 | ||
Post Retirement Welfare Plans [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% | |||
Defined Benefit Plan, Plan with Accumulated Benefit Obligation in Excess of Plan Assets [Abstract] | |||||
Projected benefit obligation | $ 658 | $ 627 | |||
Change in projected benefit obligation [Roll Forward] | |||||
Benefit obligation, beginning of year | 716 | 672 | |||
Service cost | 0 | 0 | 0 | ||
Interest cost | 19 | 25 | 22 | ||
Actuarial loss | 57 | 71 | |||
Defined Benefit Plan, Benefit Obligation, (Increase) Decrease for Settlement | 0 | 0 | |||
Defined Benefit Plan, Benefit Obligation, Increase (Decrease) for Plan Amendment | 0 | 0 | |||
Plan participants' contributions | 10 | 10 | |||
Effect of currency exchange | 0 | 1 | |||
Defined Benefit Plan, Benefit Obligation, Prescription Drug Subsidy Receipt | 1 | 0 | |||
Benefits paid | (58) | (63) | |||
Benefit obligation, end of year | 745 | 716 | 672 | ||
Change in plan assets [Roll Forward] | |||||
Fair value of plan assets, beginning of year | 139 | 135 | |||
Actual return on plan assets | 18 | 27 | |||
Effect of currency exchange | 0 | 0 | |||
Company contributions | 39 | 42 | |||
Reserve for third party contributions | (5) | (12) | |||
Plan participants' contributions | 10 | 10 | |||
Benefits paid | (58) | (63) | |||
Defined Benefit Plan, Plan Assets, Prescription Drug Subsidy Receipt | 1 | 0 | |||
Defined Benefit Plan, Plan Assets, Payment for Settlement | 0 | 0 | |||
Fair value of plan assets, end of year | 144 | 139 | 135 | ||
Funded status at end of year | (601) | (577) | |||
Amounts recognized in the Consolidated Statements of Financial Position consist of [Abstract] | |||||
Other noncurrent asset | 57 | 50 | |||
Current liabilities | (46) | (47) | |||
Post-employment obligations | (612) | (580) | |||
Net amount recognized, end of year | (601) | (577) | |||
Defined Benefit Plan, Accumulated Other Comprehensive (Income) Loss, Prior Service Cost (Credit), before Tax | (105) | (143) | |||
Components of net periodic benefit cost [Abstract] | |||||
Service cost | 0 | 0 | 0 | ||
Interest cost | 19 | 25 | 22 | ||
Expected return on plan assets | (5) | (5) | (5) | ||
Amortization of: [Abstract] | |||||
Prior service (credit) cost | (38) | (39) | (40) | ||
Mark-to-market adjustment | 49 | 61 | (26) | ||
Net periodic benefit cost | 25 | 42 | (49) | ||
Other changes in plan assets and benefit obligations recognized in other comprehensive income [Abstract] | |||||
Current year prior service credit (cost) | 0 | 0 | 0 | ||
Amortization of: [Abstract] | |||||
Prior service (credit) cost | (38) | (39) | (40) | ||
Total | $ (38) | $ (39) | $ (40) | ||
Weighted-average assumptions used to determine benefit obligations for years ended [Abstract] | |||||
Discount rate (in hundredths) | 2.38% | 3.21% | 4.26% | ||
Rate of compensation increase (in hundredths) | 3.25% | 3.25% | |||
Health care cost trend [Abstract] | |||||
Initial (in hundredths) | 6.25% | 6.50% | 6.50% | ||
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) | 3.21% | 4.26% | 3.54% | ||
Discount rate for service costs | 2.92% | 4.05% | 3.28% | ||
Discount rate for interest costs | 2.80% | 3.93% | 3.14% | ||
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% | 6.50% | 6.75% | ||
Decreasing to ultimate trend of (in hundredths) | 5.00% | 5.00% | 5.00% | ||
Projected Year that reaches ultimate trend rate | 2026 | 2025 | 2025 | ||
Defined Benefit Plan, Year Health Care Cost Trend Rate Reaches Ultimate Trend Rate | 2026 | 2026 | 2025 | ||
Estimated future benefits payments [Abstract] | |||||
2021 | $ 56 | ||||
2022 | 53 | ||||
2023 | 48 | ||||
2024 | 47 | ||||
2025 | 47 | ||||
2026-2030 | $ 221 | ||||
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 | $ 111 | ||||
Fair value of plan assets, end of year | 115 | $ 111 | |||
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 | 0 | ||||
Fair value of plan assets, end of year | 1 | 0 | |||
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 | 111 | ||||
Fair value of plan assets, end of year | 114 | 111 | |||
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] | Fixed Income (US) [Member] | Debt Securities [Member] | |||||
Change in plan assets [Roll Forward] | |||||
Fair value of plan assets, beginning of year | [2] | 85 | |||
Fair value of plan assets, end of year | [2] | 89 | 85 | ||
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 | [2] | 0 | |||
Fair value of plan assets, end of year | [2] | 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 | [2] | 85 | |||
Fair value of plan assets, end of year | [2] | 89 | 85 | ||
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 | [2] | 0 | |||
Fair value of plan assets, end of year | [2] | 0 | 0 | ||
Voluntary employees' beneficiary association (VEBA) trust [Member] | Post Retirement Welfare Plans [Member] | Fixed Income (US) [Member] | Cash and Cash Equivalents | |||||
Change in plan assets [Roll Forward] | |||||
Fair value of plan assets, end of year | 1 | ||||
Voluntary employees' beneficiary association (VEBA) trust [Member] | Post Retirement Welfare Plans [Member] | Fixed Income (US) [Member] | Cash and Cash Equivalents | Fair Value, Inputs, Level 1 [Member] | |||||
Change in plan assets [Roll Forward] | |||||
Fair value of plan assets, end of year | 1 | ||||
Voluntary employees' beneficiary association (VEBA) trust [Member] | Post Retirement Welfare Plans [Member] | Fixed Income (US) [Member] | Cash and Cash Equivalents | Fair Value, Inputs, Level 2 [Member] | |||||
Change in plan assets [Roll Forward] | |||||
Fair value of plan assets, end of year | 0 | ||||
Voluntary employees' beneficiary association (VEBA) trust [Member] | Post Retirement Welfare Plans [Member] | Fixed Income (US) [Member] | Cash and Cash Equivalents | Fair Value, Inputs, Level 3 [Member] | |||||
Change in plan assets [Roll Forward] | |||||
Fair value of plan assets, end of year | 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 | [2] | 26 | |||
Fair value of plan assets, end of year | [2] | 25 | 26 | ||
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 | [2] | 0 | |||
Fair value of plan assets, end of year | [2] | 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 | [2] | 26 | |||
Fair value of plan assets, end of year | [2] | 25 | 26 | ||
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 | [2] | 0 | |||
Fair value of plan assets, end of year | [2] | $ 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) | 1,997,587 | 2,076,203 | 2,119,614 | ||
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 | $ 67 | $ 68 | $ 67 | ||
Foreign Plan [Member] | |||||
Defined Benefit Plan, Pension Plan with Project Benefit Obligation in Excess of Plan Assets [Abstract] | |||||
Projected benefit obligation | 769 | 972 | |||
Fair value of plan assets | 617 | 820 | |||
Defined Benefit Plan, Plan with Accumulated Benefit Obligation in Excess of Plan Assets [Abstract] | |||||
Projected benefit obligation | 718 | 651 | |||
Accumulated benefit obligation | 693 | 625 | |||
Fair value of plan assets | 574 | 513 | |||
Change in plan assets [Roll Forward] | |||||
Fair value of plan assets, beginning of year | 820 | ||||
Fair value of plan assets, end of year | 938 | 820 | |||
Foreign Plan [Member] | Investments measured at net asset value [Member] | |||||
Change in plan assets [Roll Forward] | |||||
Fair value of plan assets, beginning of year | [3] | 691 | |||
Fair value of plan assets, end of year | [3] | 767 | 691 | ||
Foreign Plan [Member] | Cash and Cash Equivalents [Member] | |||||
Change in plan assets [Roll Forward] | |||||
Fair value of plan assets, beginning of year | [4] | 72 | |||
Fair value of plan assets, end of year | [4] | 103 | 72 | ||
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 | [4] | 72 | |||
Fair value of plan assets, end of year | [4] | 103 | 72 | ||
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 | [4] | 0 | |||
Fair value of plan assets, end of year | [4] | 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 | [4] | 0 | |||
Fair value of plan assets, end of year | [4] | 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] | 57 | |||
Fair value of plan assets, end of year | [6] | 68 | 57 | ||
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] | 57 | |||
Fair value of plan assets, end of year | [6] | 68 | 57 | ||
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 | 129 | ||||
Fair value of plan assets, end of year | 171 | 129 | |||
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 | 72 | ||||
Fair value of plan assets, end of year | 103 | 72 | |||
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 | 57 | ||||
Fair value of plan assets, end of year | $ 68 | $ 57 | |||
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 | 4.04% | 4.26% | |||
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 | $ 972 | $ 840 | |||
Service cost | 17 | 14 | 14 | ||
Interest cost | 15 | 20 | 20 | ||
Actuarial loss | 66 | 113 | |||
Defined Benefit Plan, Benefit Obligation, (Increase) Decrease for Settlement | 6 | 0 | |||
Defined Benefit Plan, Benefit Obligation, Increase (Decrease) for Plan Amendment | 12 | 0 | |||
Plan participants' contributions | 1 | 1 | |||
Effect of currency exchange | 61 | 11 | |||
Defined Benefit Plan, Benefit Obligation, Prescription Drug Subsidy Receipt | 0 | 0 | |||
Benefits paid | (25) | (27) | |||
Benefit obligation, end of year | 1,089 | 972 | 840 | ||
Change in plan assets [Roll Forward] | |||||
Fair value of plan assets, beginning of year | 820 | 713 | |||
Actual return on plan assets | 72 | 102 | |||
Effect of currency exchange | 54 | 9 | |||
Company contributions | 22 | 22 | |||
Reserve for third party contributions | 0 | 0 | |||
Plan participants' contributions | 1 | 1 | |||
Benefits paid | (25) | (27) | |||
Defined Benefit Plan, Plan Assets, Prescription Drug Subsidy Receipt | 0 | 0 | |||
Defined Benefit Plan, Plan Assets, Payment for Settlement | (6) | 0 | |||
Fair value of plan assets, end of year | 938 | 820 | 713 | ||
Funded status at end of year | (151) | (152) | |||
Amounts recognized in the Consolidated Statements of Financial Position consist of [Abstract] | |||||
Other noncurrent asset | 1 | 0 | |||
Current liabilities | (1) | (1) | |||
Post-employment obligations | (151) | (151) | |||
Net amount recognized, end of year | (151) | (152) | |||
Accumulated benefit obligation basis for all defined benefit pension plans | 1,036 | 919 | |||
Defined Benefit Plan, Accumulated Other Comprehensive (Income) Loss, Prior Service Cost (Credit), before Tax | (11) | 0 | |||
Components of net periodic benefit cost [Abstract] | |||||
Service cost | 17 | 14 | 14 | ||
Interest cost | 15 | 20 | 20 | ||
Expected return on plan assets | (34) | (32) | (37) | ||
Amortization of: [Abstract] | |||||
Prior service (credit) cost | (1) | 0 | 1 | ||
Mark-to-market adjustment | 28 | 43 | 36 | ||
Net periodic benefit cost | 25 | 45 | 34 | ||
Other changes in plan assets and benefit obligations recognized in other comprehensive income [Abstract] | |||||
Current year prior service credit (cost) | 12 | 0 | 0 | ||
Amortization of: [Abstract] | |||||
Prior service (credit) cost | (1) | 0 | 1 | ||
Total | $ 11 | $ 0 | $ 1 | ||
Weighted-average assumptions used to determine benefit obligations for years ended [Abstract] | |||||
Discount rate (in hundredths) | 1.08% | 1.56% | 2.35% | ||
Rate of compensation increase (in hundredths) | 2.94% | 2.94% | 2.94% | ||
Weighted-average assumptions used to determine net periodic cost for years ended [Abstract] | |||||
Discount rate ( in hundredths) | 1.56% | 2.35% | 2.25% | ||
Discount rate for service costs | 1.56% | 2.35% | 2.25% | ||
Discount rate for interest costs | 1.56% | 2.35% | 2.25% | ||
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Expected Long-term Rate of Return on Plan Assets | 4.26% | 4.49% | 4.83% | ||
Rate of compensation increase (in hundredths) | 2.94% | 2.94% | 2.95% | ||
Estimated future benefits payments [Abstract] | |||||
2021 | $ 33 | ||||
2022 | 34 | ||||
2023 | 38 | ||||
2024 | 39 | ||||
2025 | 39 | ||||
2026-2030 | 242 | ||||
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] | 57 | $ 51 | ||
Defined benefit plan unrealized gains | [7] | 9 | 5 | ||
Defined Benefit Plan, Plan Assets Level 3 Reconciliation, Increase (Decrease) for Purchase, Sale, and Settlement | 2 | [7] | 1 | ||
Fair value of plan assets, end of year | [7] | $ 68 | $ 57 | $ 51 | |
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) | 20.00% | 21.00% | |||
Foreign Plan [Member] | Pension Plan [Member] | Debt Securities [Member] | |||||
Defined Benefit Plan, Plan Assets, Allocations [Abstract] | |||||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 59.00% | ||||
Defined Benefit Plan, Actual Plan Asset Allocations (in hundredths) | 57.00% | 53.00% | |||
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) | 6.00% | 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] | 12.00% | |||
Defined Benefit Plan, Actual Plan Asset Allocations (in hundredths) | [1] | 17.00% | 18.00% | ||
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 | 2,050 | $ 1,673 | |||
Fair value of plan assets | 1,798 | 1,512 | |||
Defined Benefit Plan, Plan with Accumulated Benefit Obligation in Excess of Plan Assets [Abstract] | |||||
Projected benefit obligation | 2,050 | 1,673 | |||
Accumulated benefit obligation | 1,979 | 1,611 | |||
Fair value of plan assets | 1,798 | 1,512 | |||
Change in plan assets [Roll Forward] | |||||
Fair value of plan assets, beginning of year | 1,919 | ||||
Fair value of plan assets, end of year | 1,798 | 1,919 | |||
UNITED STATES | Investments measured at net asset value [Member] | |||||
Change in plan assets [Roll Forward] | |||||
Fair value of plan assets, beginning of year | [3] | 1,883 | |||
Fair value of plan assets, end of year | [3] | 1,750 | 1,883 | ||
UNITED STATES | Cash and Cash Equivalents [Member] | |||||
Change in plan assets [Roll Forward] | |||||
Fair value of plan assets, beginning of year | [4] | 35 | |||
Fair value of plan assets, end of year | [4] | 47 | 35 | ||
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 | [4] | 35 | |||
Fair value of plan assets, end of year | [4] | 47 | 35 | ||
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 | [4] | 0 | |||
Fair value of plan assets, end of year | [4] | 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 | [4] | 0 | |||
Fair value of plan assets, end of year | [4] | 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] | 1 | |||
Fair value of plan assets, end of year | [5] | 1 | 1 | ||
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] | 1 | |||
Fair value of plan assets, end of year | [5] | 1 | 1 | ||
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 | 36 | ||||
Fair value of plan assets, end of year | 48 | 36 | |||
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 | 36 | ||||
Fair value of plan assets, end of year | 48 | 36 | |||
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 | 7.29% | 7.37% | |||
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 | $ 2,067 | $ 1,959 | |||
Service cost | 25 | 27 | 35 | ||
Interest cost | 57 | 76 | 67 | ||
Actuarial loss | 203 | 200 | |||
Defined Benefit Plan, Benefit Obligation, (Increase) Decrease for Settlement | 122 | 0 | |||
Defined Benefit Plan, Benefit Obligation, Increase (Decrease) for Plan Amendment | 0 | 0 | |||
Plan participants' contributions | 0 | 0 | |||
Effect of currency exchange | 0 | 0 | |||
Defined Benefit Plan, Benefit Obligation, Prescription Drug Subsidy Receipt | 0 | 0 | |||
Benefits paid | (180) | (195) | |||
Benefit obligation, end of year | 2,050 | 2,067 | 1,959 | ||
Change in plan assets [Roll Forward] | |||||
Fair value of plan assets, beginning of year | 1,919 | 1,820 | |||
Actual return on plan assets | 175 | 289 | |||
Effect of currency exchange | 0 | 0 | |||
Company contributions | 6 | 5 | |||
Reserve for third party contributions | 0 | 0 | |||
Plan participants' contributions | 0 | 0 | |||
Benefits paid | (180) | (195) | |||
Defined Benefit Plan, Plan Assets, Prescription Drug Subsidy Receipt | 0 | 0 | |||
Defined Benefit Plan, Plan Assets, Payment for Settlement | (122) | 0 | |||
Fair value of plan assets, end of year | 1,798 | 1,919 | 1,820 | ||
Funded status at end of year | (252) | (148) | |||
Amounts recognized in the Consolidated Statements of Financial Position consist of [Abstract] | |||||
Other noncurrent asset | 0 | 13 | |||
Current liabilities | (3) | (3) | |||
Post-employment obligations | (249) | (158) | |||
Net amount recognized, end of year | (252) | (148) | |||
Accumulated benefit obligation basis for all defined benefit pension plans | 1,979 | 2,005 | |||
Defined Benefit Plan, Accumulated Other Comprehensive (Income) Loss, Prior Service Cost (Credit), before Tax | 1 | 2 | |||
Components of net periodic benefit cost [Abstract] | |||||
Service cost | 25 | 27 | 35 | ||
Interest cost | 57 | 76 | 67 | ||
Expected return on plan assets | (135) | (128) | (147) | ||
Amortization of: [Abstract] | |||||
Prior service (credit) cost | 1 | 0 | (1) | ||
Mark-to-market adjustment | 163 | 39 | 89 | ||
Net periodic benefit cost | 111 | 14 | 43 | ||
Other changes in plan assets and benefit obligations recognized in other comprehensive income [Abstract] | |||||
Current year prior service credit (cost) | 0 | 0 | 0 | ||
Amortization of: [Abstract] | |||||
Prior service (credit) cost | 1 | 0 | (1) | ||
Total | $ 1 | $ 0 | $ (1) | ||
Weighted-average assumptions used to determine benefit obligations for years ended [Abstract] | |||||
Discount rate (in hundredths) | 2.48% | 3.25% | 4.29% | ||
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Weighted-Average Interest Crediting Rate | 5.50% | 5.52% | 5.54% | ||
Rate of compensation increase (in hundredths) | 2.75% | 3.25% | 3.25% | ||
Weighted-average assumptions used to determine net periodic cost for years ended [Abstract] | |||||
Discount rate ( in hundredths) | 3.25% | 4.29% | 3.57% | ||
Discount rate for service costs | 3.31% | 4.32% | 3.64% | ||
Discount rate for interest costs | 2.83% | 3.96% | 3.18% | ||
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Expected Long-term Rate of Return on Plan Assets | 7.37% | 7.43% | 7.48% | ||
Rate of compensation increase (in hundredths) | 3.25% | 3.25% | 3.25% | ||
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Weighted-Average Interest Crediting Rate | 5.52% | 5.54% | 5.55% | ||
Estimated future benefits payments [Abstract] | |||||
2021 | $ 151 | ||||
2022 | 147 | ||||
2023 | 143 | ||||
2024 | 135 | ||||
2025 | 142 | ||||
2026-2030 | $ 639 | ||||
UNITED STATES | Pension Plan [Member] | Private Equity Securities [Member] | |||||
Defined Benefit Plan, Plan Assets, Allocations [Abstract] | |||||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 41.00% | ||||
Defined Benefit Plan, Actual Plan Asset Allocations (in hundredths) | 39.00% | 50.00% | |||
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) | 43.00% | 37.00% | |||
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] | 18.00% | |||
Defined Benefit Plan, Actual Plan Asset Allocations (in hundredths) | [1] | 16.00% | 11.00% | ||
UNITED STATES | Retirement Plan Name, Other | Pension Plan [Member] | |||||
Change in projected benefit obligation [Roll Forward] | |||||
Defined Benefit Plan, Benefit Obligation, (Increase) Decrease for Settlement | $ 110 | ||||
NETHERLANDS | Pension Plan [Member] | |||||
Change in projected benefit obligation [Roll Forward] | |||||
Defined Benefit Plan, Benefit Obligation, Increase (Decrease) for Plan Amendment | $ 12 | ||||
Estimated future benefits payments [Abstract] | |||||
Defined Benefit Plan, Plan Amendments, Period of Amortization | 13 years | ||||
[1] | U.S. primarily consists of private equity and natural resource and energy related limited partnership investments and public real assets. Non-U.S. primarily consists of annuity contracts and alternative investments. | ||||
[2] | 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. | ||||
[3] | Investments Measured at Net Asset Value: The underlying debt, public equity, and public real asset 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. | ||||
[4] | Cash and Cash Equivalents: Funds generally invested in actively managed collective trust funds or interest bearing accounts. | ||||
[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) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Leases [Abstract] | ||
Operating Lease, Right-of-Use Asset | $ 176 | $ 197 |
Operating Lease, Right-of-Use Asset, Reclassified | 9 | 8 |
Lessee, Operating Lease, Liability, to be Paid, Year One | 60 | 62 |
Lessee, Operating Lease, Liability, Payments, Due Year Two | 44 | 49 |
Lessee, Operating Lease, Liability, Payments, Due Year Three | 31 | 38 |
Lessee, Operating Lease, Liability, Payments, Due Year Four | 18 | 25 |
Lessee, Operating Lease, Liability, Payments, Due Year Five | 12 | 14 |
Lessee, Operating Lease, Liability, Payments, Due after Year Five | 28 | 30 |
Lessee, Operating Lease, Liability, Payments, Due | 193 | 218 |
Lessee, Operating Lease, Liability, Undiscounted Excess Amount | 14 | 22 |
Operating Lease, Cost | 73 | 70 |
Short-term Lease, Cost | 37 | 40 |
Sublease Income | (4) | (2) |
Lease, Cost | 106 | 108 |
Operating Lease, Payments | 72 | 72 |
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability | $ 55 | $ 54 |
Operating Lease, Weighted Average Remaining Lease Term | 5 years | 5 years |
Operating Lease, Weighted Average Discount Rate, Percent | 3.60% | 4.00% |
Other Noncurrent Liabilities [Member] | ||
Lessor, Lease, Description [Line Items] | ||
Operating Lease, Liability | $ 179 | $ 196 |
Operating Lease, Liability, Noncurrent | 123 | 141 |
Other Current Liabilities [Member] | ||
Lessor, Lease, Description [Line Items] | ||
Operating Lease, Liability, Current | $ 56 | $ 55 |
LEASES AND OTHER COMMITMENTS Co
LEASES AND OTHER COMMITMENTS Commitments (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Other Commitments [Line Items] | |
2021 | $ 1,042 |
2022 | 1,231 |
2023 | 1,335 |
2024 | 635 |
2025 | 1,031 |
2026 and beyond | 7,606 |
Other Commitment | $ 12,880 |
Unrecorded Unconditional Purchase Obligation, Term | 30 years |
Guarantor Obligations, Term | 30 years |
Guarantor Obligations, Maximum Exposure, Undiscounted | $ 25 |
Unrecorded Unconditional Purchase Obligation, Purchases | 3,200 |
Debt Securities [Member] | |
Other Commitments [Line Items] | |
2021 | 299 |
2022 | 744 |
2023 | 919 |
2024 | 241 |
2025 | 701 |
2026 and beyond | 2,664 |
Other Commitment | 5,568 |
Revolving Credit Facility [Member] | |
Other Commitments [Line Items] | |
2021 | 50 |
2022 | 0 |
2023 | 0 |
2024 | 0 |
2025 | 0 |
2026 and beyond | 0 |
Other Commitment | 50 |
Interest payable [Member] | |
Other Commitments [Line Items] | |
2021 | 172 |
2022 | 174 |
2023 | 157 |
2024 | 137 |
2025 | 119 |
2026 and beyond | 1,291 |
Other Commitment | 2,050 |
Obligations [Member] | |
Other Commitments [Line Items] | |
2021 | 187 |
2022 | 174 |
2023 | 137 |
2024 | 140 |
2025 | 112 |
2026 and beyond | 2,432 |
Unrecorded Unconditional Purchase Obligation, Purchases | 3,182 |
Operating leases [Member] | |
Other Commitments [Line Items] | |
2021 | 60 |
2022 | 44 |
2023 | 31 |
2024 | 18 |
2025 | 12 |
2026 and beyond | 28 |
Other Commitment | 193 |
Other Liabilities [Member] | |
Other Commitments [Line Items] | |
2021 | 274 |
2022 | 95 |
2023 | 91 |
2024 | 99 |
2025 | 87 |
2026 and beyond | 1,191 |
Other Commitment | $ 1,837 |
ENVIRONMENTAL MATTERS (Details)
ENVIRONMENTAL MATTERS (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Accrual for Environmental Loss Contingencies [Roll Forward] | |||
Beginning of period | $ 287 | ||
End of period | $ 285 | $ 287 | |
Expected Payment Period of Environmental Contingencies | 30 years | ||
Accrual for Environmental Loss Contingencies [Abstract] | |||
Accrued Environmental Loss Contingencies, Current | $ 15 | 20 | |
Accrued Environmental Loss Contingencies, Noncurrent | 270 | 267 | |
Environmental Costs [Abstract] | |||
Cash expenditures related to environmental protection and improvement | 265 | 244 | $ 274 |
Environmental capital expenditures | 42 | 27 | 44 |
Environmental Remediation [Member] | |||
Accrual for Environmental Loss Contingencies [Roll Forward] | |||
Beginning of period | 260 | 271 | |
Changes in estimates recorded to earnings and other | 7 | 4 | |
Cash reductions | (10) | (15) | |
End of period | $ 257 | 260 | $ 271 |
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 | 104 | ||
Loss Contingency, Estimate of Possible Loss | 200 | ||
Environmental ARO [Member] | |||
Site Contingency [Line Items] | |||
Best Estimate Accrued to-date For Asset Retirement Obligation | 28 | 27 | |
Non Environmental ARO [Member] | |||
Site Contingency [Line Items] | |||
Best Estimate Accrued to-date For Asset Retirement Obligation | 51 | 48 | |
Minimum [Member] | Environmental Remediation [Member] | |||
Site Contingency [Line Items] | |||
Loss Contingency, Estimate of Possible Loss | 257 | 260 | |
Maximum [Member] | Environmental Remediation [Member] | |||
Site Contingency [Line Items] | |||
Loss Contingency, Estimate of Possible Loss | $ 501 | $ 487 |
STOCKHOLDERS' EQUITY (Details)
STOCKHOLDERS' EQUITY (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Jan. 01, 2019 | Feb. 01, 2018 | Jan. 01, 2018 | Dec. 31, 2017 | 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) | $ 2.67 | $ 2.52 | $ 2.30 | |||||||||||||||||||||||||||
Class of Warrant or Right, Outstanding | 6,000,000 | 6,000,000 | ||||||||||||||||||||||||||||
Stock Repurchases | $ (60) | $ (325) | $ (400) | |||||||||||||||||||||||||||
Treasury stock held by the Companys charitable foundation in shares | 50,798 | 50,798 | 50,798 | 50,798 | 50,798 | |||||||||||||||||||||||||
Treasury Stock, Shares, Acquired | 1,134,052 | 4,282,409 | 3,959,878 | |||||||||||||||||||||||||||
Stockholders' Equity [Roll Forward] | ||||||||||||||||||||||||||||||
Beginning Balance | $ 5,958 | $ 5,958 | ||||||||||||||||||||||||||||
Net Earnings | $ 32 | $ 161 | $ 27 | 258 | $ 26 | $ 266 | $ 258 | $ 209 | 478 | $ 759 | $ 1,080 | |||||||||||||||||||
Income attributable to noncontrolling interest | 11 | 3 | 4 | |||||||||||||||||||||||||||
Net earnings including noncontrolling interest | 489 | 762 | 1,084 | |||||||||||||||||||||||||||
Cash dividends declared | [1] | (363) | (347) | (325) | ||||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | (59) | 11 | (36) | |||||||||||||||||||||||||||
Share-Based Compensation Expense | [2] | 44 | 59 | 64 | ||||||||||||||||||||||||||
Stock Option Exercises | 36 | 9 | 18 | |||||||||||||||||||||||||||
Stockholders' Equity, Other | (9) | (11) | (18) | |||||||||||||||||||||||||||
Stock Repurchases | (60) | (325) | (400) | |||||||||||||||||||||||||||
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders | (2) | (4) | (5) | |||||||||||||||||||||||||||
Ending Balance | 6,023 | 5,958 | 6,023 | 5,958 | ||||||||||||||||||||||||||
Total equity | 6,108 | 6,032 | 6,108 | 6,032 | 5,878 | $ 5,480 | ||||||||||||||||||||||||
Earnings Per Share, Basic and Diluted [Abstract] | ||||||||||||||||||||||||||||||
Net earnings attributable to Eastman | $ 32 | $ 161 | $ 27 | $ 258 | $ 26 | $ 266 | $ 258 | $ 209 | $ 478 | $ 759 | $ 1,080 | |||||||||||||||||||
Shares used for earnings per share calculation, Basic (in shares) | 135,500,000 | 137,400,000 | 141,200,000 | |||||||||||||||||||||||||||
Weighted Average Number Diluted Shares Outstanding Adjustment | 1,000,000 | 1,100,000 | 1,700,000 | |||||||||||||||||||||||||||
Shares used for earnings per share calculation, Diluted (in shares) | 136,500,000 | 138,500,000 | 142,900,000 | |||||||||||||||||||||||||||
Basic earnings per share attributable to Eastman | $ 0.23 | [3] | $ 1.19 | [3] | $ 0.20 | [3] | $ 1.90 | [3] | $ 0.19 | [3] | $ 1.95 | [3] | $ 1.87 | [3] | $ 1.50 | [3] | $ 3.53 | [4] | $ 5.52 | [4] | $ 7.65 | [4] | ||||||||
Diluted earnings per share attributable to Eastman | $ 0.23 | [3] | $ 1.18 | [3] | $ 0.20 | [3] | $ 1.89 | [3] | $ 0.19 | [3] | $ 1.93 | [3] | $ 1.85 | [3] | $ 1.49 | [3] | $ 3.50 | [4] | $ 5.48 | [4] | $ 7.56 | [4] | ||||||||
Underlying options excluded from the computation of diluted earnings per share (in shares) | 2,424,826 | 2,183,875 | 619,706 | |||||||||||||||||||||||||||
Shares of common stock issued [Abstract] | ||||||||||||||||||||||||||||||
Balance, beginning of period (in shares) | 219,638,646 | 219,140,523 | 219,638,646 | 219,140,523 | 218,369,992 | |||||||||||||||||||||||||
Shares Issued, Shares, Share-based Payment Arrangement, after Forfeiture | 1,002,860 | 498,123 | 770,531 | |||||||||||||||||||||||||||
Balance, ending of period (in shares) | 220,641,506 | 219,638,646 | 220,641,506 | 219,638,646 | 219,140,523 | |||||||||||||||||||||||||
Retained earnings | $ 8,080 | $ 7,965 | $ 8,080 | $ 7,965 | $ 7,573 | $ 6,802 | ||||||||||||||||||||||||
Amortization of unrecognized prior service credits included in net periodic costs | 12 | 0 | 0 | |||||||||||||||||||||||||||
Accumulated Other Comprehensive Income Loss Net Of Tax Abstract | ||||||||||||||||||||||||||||||
Cumulative Translation Adjustment | (293) | (264) | (293) | (264) | (309) | |||||||||||||||||||||||||
Unrecognized Prior Service Credits for Benefit Plans | 87 | 106 | 87 | 106 | 106 | |||||||||||||||||||||||||
Unrealized Gains (Losses) on Derivative Instruments | (66) | (55) | (66) | (55) | (41) | |||||||||||||||||||||||||
Unrealized Losses on Investments | (1) | (1) | (1) | (1) | (1) | |||||||||||||||||||||||||
Accumulated other comprehensive loss | (273) | (214) | (273) | (214) | (245) | |||||||||||||||||||||||||
Cumulative Translation Adjustment | (29) | 45 | (13) | |||||||||||||||||||||||||||
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, after Tax | (19) | 0 | [5] | |||||||||||||||||||||||||||
Unrealized Gains (Losses) on Derivative Instruments | (11) | (14) | [5] | |||||||||||||||||||||||||||
Unrealized Losses on Investments | 0 | 0 | ||||||||||||||||||||||||||||
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | 31 | |||||||||||||||||||||||||||||
Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||||||||||||||||||||||||||||
Cumulative Translation Adjustment | (29) | 45 | (13) | |||||||||||||||||||||||||||
Prior service credit arising during the period | (9) | 0 | 0 | |||||||||||||||||||||||||||
Amortization of unrecognized prior service credits included in net periodic costs | (28) | (29) | (30) | |||||||||||||||||||||||||||
Unrealized gain (loss) during period | (34) | (20) | 22 | |||||||||||||||||||||||||||
Reclassification adjustment for losses included in net income, net | 23 | 15 | (15) | |||||||||||||||||||||||||||
Unrealized Gains (Losses) on Derivative Instruments | (11) | (14) | [5] | |||||||||||||||||||||||||||
Other Comprehensive Income (Loss), before Tax [Abstract] | ||||||||||||||||||||||||||||||
Change in cumulative translation adjustment | (29) | 45 | (13) | |||||||||||||||||||||||||||
Amortization of unrecognized prior service credits included in net periodic costs | 12 | 0 | 0 | |||||||||||||||||||||||||||
Other Comprehensive (Income) Loss, Defined Benefit Plan, Reclassification Adjustment from AOCI, before Tax | (38) | (39) | (40) | |||||||||||||||||||||||||||
Unrealized gain (loss) | (46) | (27) | 30 | |||||||||||||||||||||||||||
Reclassification adjustment for loss included in net income | 31 | 20 | (20) | |||||||||||||||||||||||||||
Total other comprehensive income (loss) | (70) | (1) | (43) | |||||||||||||||||||||||||||
Cumulative Effect, Period of Adoption, Adjustment [Member] | ||||||||||||||||||||||||||||||
Shares of common stock issued [Abstract] | ||||||||||||||||||||||||||||||
Retained earnings | 0 | (20) | 0 | (20) | 16 | $ 0 | [6] | $ 16 | [7] | |||||||||||||||||||||
Common Stock [Member] | ||||||||||||||||||||||||||||||
Stock Repurchases | 0 | 0 | 0 | |||||||||||||||||||||||||||
Stockholders' Equity [Roll Forward] | ||||||||||||||||||||||||||||||
Beginning Balance | $ 2 | $ 2 | 2 | 2 | 2 | |||||||||||||||||||||||||
Net Earnings | 0 | 0 | 0 | |||||||||||||||||||||||||||
Cash dividends declared | [1] | 0 | 0 | 0 | ||||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | 0 | 0 | 0 | |||||||||||||||||||||||||||
Share-Based Compensation Expense | [2] | 0 | 0 | 0 | ||||||||||||||||||||||||||
Stock Option Exercises | 0 | 0 | 0 | |||||||||||||||||||||||||||
Stockholders' Equity, Other | [8] | 0 | 0 | 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 | |||||||||||||||||||||||||||
Common Stock [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | ||||||||||||||||||||||||||||||
Shares of common stock issued [Abstract] | ||||||||||||||||||||||||||||||
Retained earnings | 0 | [6] | 0 | [7] | ||||||||||||||||||||||||||
Additional Paid In Capital [Member] | ||||||||||||||||||||||||||||||
Stock Repurchases | 0 | 0 | 0 | |||||||||||||||||||||||||||
Stockholders' Equity [Roll Forward] | ||||||||||||||||||||||||||||||
Beginning Balance | 2,105 | 2,048 | 2,105 | 2,048 | 1,983 | |||||||||||||||||||||||||
Net Earnings | 0 | 0 | 0 | |||||||||||||||||||||||||||
Cash dividends declared | [1] | 0 | 0 | 0 | ||||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | 0 | 0 | 0 | |||||||||||||||||||||||||||
Share-Based Compensation Expense | [2] | 44 | 59 | 64 | ||||||||||||||||||||||||||
Stock Option Exercises | 36 | 9 | 18 | |||||||||||||||||||||||||||
Stockholders' Equity, Other | [8] | (11) | (11) | (17) | ||||||||||||||||||||||||||
Stock Repurchases | 0 | 0 | 0 | |||||||||||||||||||||||||||
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders | 0 | 0 | 0 | |||||||||||||||||||||||||||
Ending Balance | 2,174 | 2,105 | 2,174 | 2,105 | 2,048 | |||||||||||||||||||||||||
Earnings Per Share, Basic and Diluted [Abstract] | ||||||||||||||||||||||||||||||
Net earnings attributable to Eastman | 0 | 0 | 0 | |||||||||||||||||||||||||||
Additional Paid In Capital [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | ||||||||||||||||||||||||||||||
Shares of common stock issued [Abstract] | ||||||||||||||||||||||||||||||
Retained earnings | 0 | [6] | 0 | [7] | ||||||||||||||||||||||||||
Retained Earnings [Member] | ||||||||||||||||||||||||||||||
Stock Repurchases | 0 | 0 | 0 | |||||||||||||||||||||||||||
Stockholders' Equity [Roll Forward] | ||||||||||||||||||||||||||||||
Beginning Balance | 7,965 | 7,573 | 7,965 | 7,573 | 6,802 | |||||||||||||||||||||||||
Net Earnings | 478 | 759 | 1,080 | |||||||||||||||||||||||||||
Cash dividends declared | [1] | (363) | (347) | (325) | ||||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | 0 | 0 | 0 | |||||||||||||||||||||||||||
Share-Based Compensation Expense | [2] | 0 | 0 | 0 | ||||||||||||||||||||||||||
Stock Option Exercises | 0 | 0 | 0 | |||||||||||||||||||||||||||
Stockholders' Equity, Other | [8] | 0 | 0 | 0 | ||||||||||||||||||||||||||
Stock Repurchases | 0 | 0 | 0 | |||||||||||||||||||||||||||
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders | 0 | 0 | 0 | |||||||||||||||||||||||||||
Ending Balance | 8,080 | 7,965 | 8,080 | 7,965 | 7,573 | |||||||||||||||||||||||||
Earnings Per Share, Basic and Diluted [Abstract] | ||||||||||||||||||||||||||||||
Net earnings attributable to Eastman | 478 | 759 | 1,080 | |||||||||||||||||||||||||||
Retained Earnings [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | ||||||||||||||||||||||||||||||
Shares of common stock issued [Abstract] | ||||||||||||||||||||||||||||||
Retained earnings | (20) | [6] | 16 | [7] | ||||||||||||||||||||||||||
Accumulated Other Comprehensive Income [Member] | ||||||||||||||||||||||||||||||
Stock Repurchases | 0 | 0 | 0 | |||||||||||||||||||||||||||
Stockholders' Equity [Roll Forward] | ||||||||||||||||||||||||||||||
Beginning Balance | (214) | (245) | (214) | (245) | (209) | |||||||||||||||||||||||||
Net Earnings | 0 | 0 | 0 | |||||||||||||||||||||||||||
Cash dividends declared | [1] | 0 | 0 | 0 | ||||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | (59) | 11 | (36) | |||||||||||||||||||||||||||
Share-Based Compensation Expense | [2] | 0 | 0 | 0 | ||||||||||||||||||||||||||
Stock Option Exercises | 0 | 0 | 0 | |||||||||||||||||||||||||||
Stockholders' Equity, Other | [8] | 0 | 0 | 0 | ||||||||||||||||||||||||||
Stock Repurchases | 0 | 0 | 0 | |||||||||||||||||||||||||||
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders | 0 | 0 | 0 | |||||||||||||||||||||||||||
Ending Balance | (273) | (214) | (273) | (214) | (245) | |||||||||||||||||||||||||
Earnings Per Share, Basic and Diluted [Abstract] | ||||||||||||||||||||||||||||||
Net earnings attributable to Eastman | 0 | 0 | 0 | |||||||||||||||||||||||||||
Accumulated Other Comprehensive Income [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | ||||||||||||||||||||||||||||||
Shares of common stock issued [Abstract] | ||||||||||||||||||||||||||||||
Retained earnings | 20 | [6] | 0 | [7] | ||||||||||||||||||||||||||
Treasury Stock [Member] | ||||||||||||||||||||||||||||||
Stock Repurchases | (60) | (325) | (400) | |||||||||||||||||||||||||||
Stockholders' Equity [Roll Forward] | ||||||||||||||||||||||||||||||
Beginning Balance | (3,900) | (3,575) | (3,900) | (3,575) | (3,175) | |||||||||||||||||||||||||
Net Earnings | 0 | 0 | 0 | |||||||||||||||||||||||||||
Cash dividends declared | [1] | 0 | 0 | 0 | ||||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | 0 | 0 | 0 | |||||||||||||||||||||||||||
Share-Based Compensation Expense | [2] | 0 | 0 | 0 | ||||||||||||||||||||||||||
Stock Option Exercises | 0 | 0 | 0 | |||||||||||||||||||||||||||
Stockholders' Equity, Other | [8] | 0 | 0 | 0 | ||||||||||||||||||||||||||
Stock Repurchases | (60) | (325) | (400) | |||||||||||||||||||||||||||
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders | 0 | 0 | 0 | |||||||||||||||||||||||||||
Ending Balance | (3,960) | (3,900) | (3,960) | (3,900) | (3,575) | |||||||||||||||||||||||||
Earnings Per Share, Basic and Diluted [Abstract] | ||||||||||||||||||||||||||||||
Net earnings attributable to Eastman | 0 | 0 | 0 | |||||||||||||||||||||||||||
Treasury Stock [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | ||||||||||||||||||||||||||||||
Shares of common stock issued [Abstract] | ||||||||||||||||||||||||||||||
Retained earnings | 0 | [6] | 0 | [7] | ||||||||||||||||||||||||||
Eastman's Stockholders' Equity [Member] | ||||||||||||||||||||||||||||||
Stock Repurchases | (60) | (325) | (400) | |||||||||||||||||||||||||||
Stockholders' Equity [Roll Forward] | ||||||||||||||||||||||||||||||
Beginning Balance | 5,958 | 5,803 | 5,958 | 5,803 | 5,403 | |||||||||||||||||||||||||
Net Earnings | 478 | 759 | 1,080 | |||||||||||||||||||||||||||
Cash dividends declared | [1] | (363) | (347) | (325) | ||||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | (59) | 11 | (36) | |||||||||||||||||||||||||||
Share-Based Compensation Expense | [2] | 44 | 59 | 64 | ||||||||||||||||||||||||||
Stock Option Exercises | 36 | 9 | 18 | |||||||||||||||||||||||||||
Stockholders' Equity, Other | [8] | (11) | (11) | (17) | ||||||||||||||||||||||||||
Stock Repurchases | (60) | (325) | (400) | |||||||||||||||||||||||||||
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders | 0 | 0 | 0 | |||||||||||||||||||||||||||
Ending Balance | 6,023 | 5,958 | 6,023 | 5,958 | 5,803 | |||||||||||||||||||||||||
Earnings Per Share, Basic and Diluted [Abstract] | ||||||||||||||||||||||||||||||
Net earnings attributable to Eastman | 478 | 759 | 1,080 | |||||||||||||||||||||||||||
Eastman's Stockholders' Equity [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | ||||||||||||||||||||||||||||||
Shares of common stock issued [Abstract] | ||||||||||||||||||||||||||||||
Retained earnings | 0 | [6] | 16 | [7] | ||||||||||||||||||||||||||
Noncontrolling Interest [Member] | ||||||||||||||||||||||||||||||
Stock Repurchases | 0 | 0 | 0 | |||||||||||||||||||||||||||
Stockholders' Equity [Roll Forward] | ||||||||||||||||||||||||||||||
Beginning Balance | $ 74 | $ 75 | 74 | 75 | 77 | |||||||||||||||||||||||||
Income attributable to noncontrolling interest | 11 | 3 | 4 | |||||||||||||||||||||||||||
Cash dividends declared | [1] | 0 | 0 | 0 | ||||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | 0 | 0 | 0 | |||||||||||||||||||||||||||
Share-Based Compensation Expense | [2] | 0 | 0 | 0 | ||||||||||||||||||||||||||
Stock Option Exercises | 0 | 0 | 0 | |||||||||||||||||||||||||||
Stockholders' Equity, Other | 2 | 0 | (1) | |||||||||||||||||||||||||||
Stock Repurchases | 0 | 0 | 0 | |||||||||||||||||||||||||||
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders | (2) | (4) | (5) | |||||||||||||||||||||||||||
Ending Balance | $ 85 | $ 74 | $ 85 | $ 74 | $ 75 | |||||||||||||||||||||||||
Noncontrolling Interest [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | ||||||||||||||||||||||||||||||
Shares of common stock issued [Abstract] | ||||||||||||||||||||||||||||||
Retained earnings | 0 | [6] | 0 | [7] | ||||||||||||||||||||||||||
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 | 7,887,216 | 7,887,216 | ||||||||||||||||||||||||||||
Stock Repurchase Program, Amount Repurchased to Date | $ 633 | $ 633 | ||||||||||||||||||||||||||||
Accounting Standards Update 2014-09 [Member] | ||||||||||||||||||||||||||||||
Shares of common stock issued [Abstract] | ||||||||||||||||||||||||||||||
Retained earnings | 53 | |||||||||||||||||||||||||||||
Accounting Standards Update 2017-12 [Member] | ||||||||||||||||||||||||||||||
Shares of common stock issued [Abstract] | ||||||||||||||||||||||||||||||
Retained earnings | 2 | |||||||||||||||||||||||||||||
Accounting Standards Update 2018-02 [Member] | Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member] | ||||||||||||||||||||||||||||||
Shares of common stock issued [Abstract] | ||||||||||||||||||||||||||||||
Retained earnings | 29 | |||||||||||||||||||||||||||||
Accounting Standards Update 2018-02 [Member] | Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent [Member] | ||||||||||||||||||||||||||||||
Shares of common stock issued [Abstract] | ||||||||||||||||||||||||||||||
Retained earnings | $ (9) | |||||||||||||||||||||||||||||
Accounting Standards Update 2016-16 [Member] | ||||||||||||||||||||||||||||||
Shares of common stock issued [Abstract] | ||||||||||||||||||||||||||||||
Retained earnings | $ 39 | |||||||||||||||||||||||||||||
[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] | Each quarter is calculated as a discrete period; the sum of the four quarters may not equal the calculated full year amount. | |||||||||||||||||||||||||||||
[4] | EPS is calculated using whole dollars and shares. | |||||||||||||||||||||||||||||
[5] | 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. | |||||||||||||||||||||||||||||
[6] | On January 1, 2019, Eastman adopted ASU 2018-02 Income Statement - Reporting Comprehensive Income | |||||||||||||||||||||||||||||
[7] | 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 $39 million. | |||||||||||||||||||||||||||||
[8] | Additional paid-in capital includes value of shares withheld for employees' taxes on vesting of share-based compensation awards. |
ASSET IMPAIRMENTS AND RESTRUC_3
ASSET IMPAIRMENTS AND RESTRUCTURING (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Restructuring Cost and Reserve [Line Items] | |||||||||||
Asset Impairment Charges | $ 146 | $ 72 | $ 39 | ||||||||
Impairment of Long-Lived Assets to be Disposed of | 21 | 27 | 0 | ||||||||
Impairment of Intangible Assets (Excluding Goodwill) | 125 | 45 | 39 | ||||||||
Goodwill, Impairment Loss | 45 | ||||||||||
Severance Costs | 65 | 45 | 6 | ||||||||
Business Exit Costs | 16 | 9 | 0 | ||||||||
Asset impairments and restructuring charges, net | $ 12 | $ 60 | $ 141 | $ 14 | $ 74 | $ 2 | $ 18 | $ 32 | 227 | 126 | 45 |
Restructuring Charge [Roll Forward] | |||||||||||
Balance at Beginning of Period | 28 | 14 | 28 | 14 | 29 | ||||||
Restructuring Costs and Asset Impairment Charges | 227 | 126 | 45 | ||||||||
Non-cash Reductions | (144) | (71) | (38) | ||||||||
Cash Reductions | (32) | (41) | (22) | ||||||||
Balance at End of Period | 79 | 28 | 79 | 28 | 14 | ||||||
Non-Cash Charges [Member] | |||||||||||
Restructuring Charge [Roll Forward] | |||||||||||
Balance at Beginning of Period | 0 | 0 | 0 | 0 | 0 | ||||||
Restructuring Reserve, Period Increase (Decrease) | 145 | 72 | 39 | ||||||||
Non-cash Reductions | (145) | (72) | (39) | ||||||||
Cash Reductions | 0 | 0 | 0 | ||||||||
Balance at End of Period | 0 | 0 | 0 | 0 | 0 | ||||||
Employee Severance [Member] | |||||||||||
Restructuring Charge [Roll Forward] | |||||||||||
Balance at Beginning of Period | 17 | 6 | 17 | 6 | 19 | ||||||
Restructuring Reserve, Period Increase (Decrease) | 65 | 45 | 6 | ||||||||
Restructuring Reserve, Accrual Adjustment | 1 | 0 | 1 | ||||||||
Cash Reductions | (18) | (34) | (20) | ||||||||
Balance at End of Period | 65 | 17 | 65 | 17 | 6 | ||||||
Site Closure and Restructuring Costs [Member] | |||||||||||
Restructuring Charge [Roll Forward] | |||||||||||
Balance at Beginning of Period | $ 11 | $ 8 | 11 | 8 | 10 | ||||||
Restructuring Reserve, Period Increase (Decrease) | 17 | 9 | 0 | ||||||||
Restructuring Reserve, Accrual Adjustment | 0 | 1 | 0 | ||||||||
Cash Reductions | (14) | (7) | (2) | ||||||||
Balance at End of Period | 14 | $ 11 | 14 | 11 | 8 | ||||||
Additives And Functional Products [Member] | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Goodwill, Impairment Loss | 0 | 45 | 38 | ||||||||
Additives And Functional Products [Member] | Trade Names | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Impairment of Intangible Assets (Excluding Goodwill) | 123 | 0 | 0 | ||||||||
Additives And Functional Products [Member] | Customer-Related Intangible Assets [Member] | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Impairment of Intangible Assets (Excluding Goodwill) | 2 | 0 | 0 | ||||||||
Advanced Materials [Member] | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Goodwill, Impairment Loss | 0 | ||||||||||
Advanced Materials [Member] | Customer-Related Intangible Assets [Member] | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Impairment of Intangible Assets (Excluding Goodwill) | 0 | 0 | 1 | ||||||||
Chemical Intermediates [Member] | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Goodwill, Impairment Loss | 0 | ||||||||||
Capital Project AFP [Member] | Additives And Functional Products [Member] | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Other Restructuring Costs | 0 | 4 | 0 | ||||||||
Site Closure Tire Additives Asia Pacific Tire Additives [Member] | Additives And Functional Products [Member] | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Impairment of Long-Lived Assets to be Disposed of | 5 | 0 | 0 | ||||||||
Severance Costs | 3 | 0 | 0 | ||||||||
Site Closure Performance Films North America 2020 [Member] | Advanced Materials [Member] | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Impairment of Long-Lived Assets to be Disposed of | 5 | 0 | 0 | ||||||||
Severance Costs | 3 | 0 | 0 | ||||||||
Site Closure Animal Nutrition Asia Pacific [Member] | Additives And Functional Products [Member] | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Impairment of Long-Lived Assets to be Disposed of | 3 | 0 | 0 | ||||||||
Severance Costs | 1 | 0 | 0 | ||||||||
Other Restructuring Costs | (2) | 0 | 0 | ||||||||
Polyester Based Fibers [Member] | Corporate, Non-Segment [Member] | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Impairment of Long-Lived Assets to be Disposed of | 8 | 0 | 0 | ||||||||
Other Restructuring Costs | 4 | 0 | 0 | ||||||||
Site Closure Advanced Interlayers North America 2020 [Member] | Advanced Materials [Member] | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Severance Costs | 5 | 0 | 0 | ||||||||
Restructuring and Related Cost, Expected Cost | 30 | 30 | |||||||||
Restructuring and Related Cost, Accelerated Depreciation | 8 | ||||||||||
Site Closure Singapore 2019 [Member] | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Asset Impairment Charges | 0 | 27 | 0 | ||||||||
Severance Costs | 6 | 0 | 0 | ||||||||
Restructuring and Related Cost, Expected Cost | $ 50 | 50 | |||||||||
Site Closure Singapore 2019 [Member] | Additives And Functional Products [Member] | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Asset Impairment Charges | 5 | ||||||||||
Severance Costs | 1 | ||||||||||
Site Closure Singapore 2019 [Member] | Chemical Intermediates [Member] | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Asset Impairment Charges | 22 | ||||||||||
Severance Costs | 5 | ||||||||||
Corporate Cost Actions [Member] | Corporate, Non-Segment [Member] | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Severance Costs | 47 | 45 | 6 | ||||||||
Other Restructuring Costs | $ 14 | $ 5 | $ 0 |
OTHER CHARGES (INCOME), NET (De
OTHER CHARGES (INCOME), NET (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Other Income and Expenses [Abstract] | ||||
Foreign exchange transaction losses (gains), net (1) | [1] | $ 16 | $ 9 | $ 12 |
Currency transaction costs resulting from tax law changes and outside-U.S. entity reorganizations | 0 | 0 | 13 | |
(Income) loss from equity investments and other investment (gains) losses, net | (15) | (10) | (17) | |
Gain from property insurance | 0 | 0 | (65) | |
Other, net | 7 | 4 | 4 | |
Other (income) charges, net | $ 8 | $ 3 | $ (53) | |
[1] | Net impact of revaluation of foreign entity assets and liabilities and effects of foreign exchange non-qualifying derivatives. |
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, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense recognized in selling, general and administrative expense | $ 44 | $ 59 | $ 64 |
Share-based compensation expense, retirement eligibility preceding the requisite vesting period | $ 1 | 3 | 3 |
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 | $ 7 | $ 9 | $ 9 |
Weighted average assumptions used to determine fair value of stock options awarded [Abstract] | |||
Expected volatility rate (in hundredths) | 21.56% | 19.80% | 19.03% |
Expected dividend yield (in hundredths) | 3.30% | 2.51% | 2.48% |
Average risk-free interest rate (in hundredths) | 0.94% | 2.44% | 2.61% |
Expected term years (in years) | 5 years 10 months 24 days | 5 years 8 months 12 days | 5 years 1 month 6 days |
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) | 3,479,300 | 2,905,600 | 2,614,100 |
Granted (in shares) | 622,000 | 786,000 | 619,700 |
Exercised (in shares) | (568,800) | (135,700) | (323,000) |
Cancelled forfeited or expired (in shares) | (5,900) | (76,600) | (5,200) |
Outstanding at end of period (in shares) | 3,526,600 | 3,479,300 | 2,905,600 |
Options exercisable at period-end (in shares) | 2,192,300 | 2,077,600 | 1,606,800 |
Available for grant at end of period (in shares) | 4,046,748 | 6,085,857 | 8,174,614 |
Outstanding at beginning of period (in dollars per share) | $ 80 | $ 79 | $ 70 |
Granted (in dollars per share) | 62 | 81 | 104 |
Exercised (in dollars per share) | 64 | 67 | 55 |
Cancelled, forfeited, or expired (in dollars per share) | 82 | 88 | 78 |
Outstanding at end of year (in dollars per share) | 79 | 80 | 79 |
Weighted average fair value of options granted (in dollars per share) | $ 7.92 | $ 13.12 | $ 15.90 |
Intrinsic value of options exercised | $ 14 | $ 2 | $ 15 |
Cash proceeds received from option exercises | 36 | 9 | 18 |
Tax benefit of options exercised | 2 | 3 | |
Fair value of shares vested | $ 9 | $ 8 | 7 |
Stock Option [Member] | Director Compensation Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Term life of options (in years) | 10 years | ||
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) | 1,401,700 | ||
Granted (in shares) | 622,000 | ||
Vested (in shares) | (689,400) | ||
Outstanding at end of period (in shares) | 1,334,300 | 1,401,700 | |
Outstanding at beginning of period (in dollars per share) | $ 13.68 | ||
Granted (in dollars per share) | 7.92 | ||
Vested (in dollars per share) | 13.47 | ||
Outstanding at end of year (in dollars per share) | $ 11.11 | $ 13.68 | |
Unrecognized compensation expense before tax for these same type awards | $ 2 | ||
Amortization life of unrecognized compensation expense before tax for these same type awards (in years) | 2 years | ||
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 | $ 37 | $ 50 | $ 55 |
Summary of activity of stock option awards [Roll Forward] | |||
Unrecognized compensation expense before tax for these same type awards | $ 45 | ||
Amortization life of unrecognized compensation expense before tax for these same type awards (in years) | 2 years |
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, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Remaining contractual term and weighted average exercise prices of stock options [Abstract] | |||
Number Outstanding at end of period (in shares) | 3,526,600 | ||
Weighted-Average Remaining Contractual Life (in years) | 7 years 1 month 6 days | ||
Weighted-Average Exercise Price (in dollars per share) | $ 79 | ||
Number Exercisable at end of period (in shares) | 2,192,300 | ||
Weighted-Average Exercise Price (in dollars per share) | $ 81 | ||
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-$64 [Member] | |||
Remaining contractual term and weighted average exercise prices of stock options [Abstract] | |||
Number Outstanding at end of period (in shares) | 658,900 | ||
Weighted-Average Remaining Contractual Life (in years) | 8 years 9 months 18 days | ||
Weighted-Average Exercise Price (in dollars per share) | $ 61 | ||
Number Exercisable at end of period (in shares) | 21,300 | ||
Weighted-Average Exercise Price (in dollars per share) | $ 44 | ||
Exercise price of options lower range (in dollars per share) | 38 | ||
Exercise prices of options upper range (in dollars per share) | $ 64 | ||
Prices of $65-$74 [Member] | |||
Remaining contractual term and weighted average exercise prices of stock options [Abstract] | |||
Number Outstanding at end of period (in shares) | 829,900 | ||
Weighted-Average Remaining Contractual Life (in years) | 6 years 2 months 12 days | ||
Weighted-Average Exercise Price (in dollars per share) | $ 70 | ||
Number Exercisable at end of period (in shares) | 781,900 | ||
Weighted-Average Exercise Price (in dollars per share) | $ 70 | ||
Exercise price of options lower range (in dollars per share) | 65 | ||
Exercise prices of options upper range (in dollars per share) | $ 74 | ||
Prices of $75-$89 [Member] | |||
Remaining contractual term and weighted average exercise prices of stock options [Abstract] | |||
Number Outstanding at end of period (in shares) | 1,440,800 | ||
Weighted-Average Remaining Contractual Life (in years) | 6 years 8 months 12 days | ||
Weighted-Average Exercise Price (in dollars per share) | $ 82 | ||
Number Exercisable at end of period (in shares) | 991,100 | ||
Weighted-Average Exercise Price (in dollars per share) | $ 82 | ||
Exercise price of options lower range (in dollars per share) | 75 | ||
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) | 7 years 2 months 12 days | ||
Weighted-Average Exercise Price (in dollars per share) | $ 104 | ||
Number Exercisable at end of period (in shares) | 398,000 | ||
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 | $ 77 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value | $ 43 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term | 5 years 8 months 12 days | ||
Tax benefit of options exercised | $ 2 | $ 3 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 7.92 | $ 13.12 | $ 15.90 |
Intrinsic value of options exercised | $ 14 | $ 2 | $ 15 |
Cash proceeds received from option exercises | 36 | 9 | 18 |
Fair value of shares vested | $ 9 | $ 8 | $ 7 |
Performance Shares [Member] | Long term performance shares award 2019-2021 cycle [Member] | |||
Remaining contractual term and weighted average exercise prices of stock options [Abstract] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 412,000 | ||
Performance Shares [Member] | Long term performance shares award 2020-2022 cycle [Member] | |||
Remaining contractual term and weighted average exercise prices of stock options [Abstract] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 423,000 | ||
Performance Shares [Member] | Long term performance shares award 2018-2020 cycle [Member] | |||
Remaining contractual term and weighted average exercise prices of stock options [Abstract] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 310,000 | ||
Restricted Stock Units (RSUs) [Member] | |||
Remaining contractual term and weighted average exercise prices of stock options [Abstract] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 227,000 | 189,000 | 160,000 |
Nonvested Options [Member] | |||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount | $ 2 | ||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition | 2 years |
SUPPLEMENTAL CASH FLOW INFORM_3
SUPPLEMENTAL CASH FLOW INFORMATION (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Supplemental Cash Flow Information [Abstract] | |||
Current assets | $ (1) | $ (5) | $ (47) |
Other assets | (14) | 15 | 43 |
Current liabilities | 5 | (82) | (38) |
Long-term liabilities and equity | 15 | (17) | 87 |
Other items, net | 5 | (89) | 45 |
Interest Paid, Including Capitalized Interest, Operating and Investing Activities [Abstract] | |||
Interest, net of amounts capitalized | 191 | 235 | 239 |
Income Taxes Paid, Net [Abstract] | |||
Income taxes | 179 | 217 | 202 |
Cash Flow, Noncash Investing and Financing Activities Disclosure [Abstract] | |||
Outstanding trade payables related to capital expenditures | $ 20 | $ 22 | $ 18 |
SEGMENT INFORMATION Part 1 (Det
SEGMENT INFORMATION Part 1 (Details) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2020USD ($) | Sep. 30, 2020USD ($) | Jun. 30, 2020USD ($) | Mar. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2020USD ($)Segment | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | ||
Segment Reporting Information [Line Items] | ||||||||||||
Number of Reportable Segments | Segment | 4 | |||||||||||
Sales [Abstract] | ||||||||||||
Sales | $ 2,186 | $ 2,122 | $ 1,924 | $ 2,241 | $ 2,205 | $ 2,325 | $ 2,363 | $ 2,380 | $ 8,473 | $ 9,273 | $ 10,151 | |
Operating Earnings (loss) [Abstract] | ||||||||||||
Income (Loss) from Continuing Operations before Interest Expense, Interest Income, Income Taxes, Noncontrolling Interests, Net | 741 | 1,120 | 1,552 | |||||||||
Assets by Segment [Abstract] | ||||||||||||
Assets by Segment | [1] | 16,083 | 16,008 | 16,083 | 16,008 | |||||||
Depreciation and Amortization Expense by Segment [Abstract] | ||||||||||||
Depreciation and amortization expense by segment | 574 | 611 | 604 | |||||||||
Capital Expenditures by Segment [Abstract] | ||||||||||||
Capital expenditure by Segment | 383 | 425 | 528 | |||||||||
Property, Plant and Equipment, Net | 5,549 | 5,571 | 5,549 | 5,571 | 5,600 | |||||||
Additives And Functional Products [Member] | ||||||||||||
Sales [Abstract] | ||||||||||||
Sales | 3,022 | 3,273 | 3,647 | |||||||||
Operating Earnings (loss) [Abstract] | ||||||||||||
Income (Loss) from Continuing Operations before Interest Expense, Interest Income, Income Taxes, Noncontrolling Interests, Net | 312 | 496 | 639 | |||||||||
Assets by Segment [Abstract] | ||||||||||||
Assets by Segment | [1] | 6,238 | 6,387 | 6,238 | 6,387 | |||||||
Depreciation and Amortization Expense by Segment [Abstract] | ||||||||||||
Depreciation and amortization expense by segment | 220 | 218 | 219 | |||||||||
Capital Expenditures by Segment [Abstract] | ||||||||||||
Capital expenditure by Segment | 126 | 152 | 150 | |||||||||
Advanced Materials [Member] | ||||||||||||
Sales [Abstract] | ||||||||||||
Sales | 2,524 | 2,688 | 2,755 | |||||||||
Operating Earnings (loss) [Abstract] | ||||||||||||
Income (Loss) from Continuing Operations before Interest Expense, Interest Income, Income Taxes, Noncontrolling Interests, Net | 427 | 517 | 509 | |||||||||
Assets by Segment [Abstract] | ||||||||||||
Assets by Segment | [1] | 4,345 | 4,415 | 4,345 | 4,415 | |||||||
Depreciation and Amortization Expense by Segment [Abstract] | ||||||||||||
Depreciation and amortization expense by segment | 187 | 172 | 169 | |||||||||
Capital Expenditures by Segment [Abstract] | ||||||||||||
Capital expenditure by Segment | 140 | 130 | 187 | |||||||||
Chemical Intermediates [Member] | ||||||||||||
Sales [Abstract] | ||||||||||||
Sales | 2,090 | 2,443 | 2,831 | |||||||||
Operating Earnings (loss) [Abstract] | ||||||||||||
Income (Loss) from Continuing Operations before Interest Expense, Interest Income, Income Taxes, Noncontrolling Interests, Net | 166 | 170 | 308 | |||||||||
Assets by Segment [Abstract] | ||||||||||||
Assets by Segment | [1] | 2,614 | 2,775 | 2,614 | 2,775 | |||||||
Depreciation and Amortization Expense by Segment [Abstract] | ||||||||||||
Depreciation and amortization expense by segment | 108 | 150 | 151 | |||||||||
Capital Expenditures by Segment [Abstract] | ||||||||||||
Capital expenditure by Segment | 84 | 98 | 137 | |||||||||
Fibers [Member] | ||||||||||||
Sales [Abstract] | ||||||||||||
Sales | 837 | 869 | 918 | |||||||||
Operating Earnings (loss) [Abstract] | ||||||||||||
Income (Loss) from Continuing Operations before Interest Expense, Interest Income, Income Taxes, Noncontrolling Interests, Net | 180 | 194 | 257 | |||||||||
Assets by Segment [Abstract] | ||||||||||||
Assets by Segment | [1] | 978 | 1,014 | 978 | 1,014 | |||||||
Depreciation and Amortization Expense by Segment [Abstract] | ||||||||||||
Depreciation and amortization expense by segment | 56 | 64 | 64 | |||||||||
Capital Expenditures by Segment [Abstract] | ||||||||||||
Capital expenditure by Segment | 31 | 42 | 50 | |||||||||
All Operating Segments [Member] | ||||||||||||
Operating Earnings (loss) [Abstract] | ||||||||||||
Income (Loss) from Continuing Operations before Interest Expense, Interest Income, Income Taxes, Noncontrolling Interests, Net | 1,085 | 1,377 | 1,713 | |||||||||
Assets by Segment [Abstract] | ||||||||||||
Assets by Segment | [1] | 14,175 | 14,591 | 14,175 | 14,591 | |||||||
Depreciation and Amortization Expense by Segment [Abstract] | ||||||||||||
Depreciation and amortization expense by segment | 571 | 604 | 603 | |||||||||
Capital Expenditures by Segment [Abstract] | ||||||||||||
Capital expenditure by Segment | 381 | 422 | 524 | |||||||||
Other [Member] | ||||||||||||
Depreciation and Amortization Expense by Segment [Abstract] | ||||||||||||
Depreciation and amortization expense by segment | 3 | 7 | 1 | |||||||||
Capital Expenditures by Segment [Abstract] | ||||||||||||
Capital expenditure by Segment | 2 | 3 | 4 | |||||||||
Corporate Assets [Member] | ||||||||||||
Assets by Segment [Abstract] | ||||||||||||
Assets by Segment | [1] | 1,908 | 1,417 | 1,908 | 1,417 | |||||||
UNITED STATES | ||||||||||||
Sales [Abstract] | ||||||||||||
Sales | 3,437 | 3,720 | 4,118 | |||||||||
Capital Expenditures by Segment [Abstract] | ||||||||||||
Property, Plant and Equipment, Net | 4,106 | 4,178 | 4,106 | 4,178 | 4,228 | |||||||
All Foreign Countries [Member] | ||||||||||||
Sales [Abstract] | ||||||||||||
Sales | 5,036 | 5,553 | 6,033 | |||||||||
Capital Expenditures by Segment [Abstract] | ||||||||||||
Property, Plant and Equipment, Net | $ 1,443 | $ 1,393 | 1,443 | 1,393 | 1,372 | |||||||
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 | (20) | (9) | (24) | |||||||||
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 | (95) | (102) | (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 | (156) | (97) | (17) | |||||||||
Corporate, Non-Segment [Member] | Asset impairments and restructuring charges, net | ||||||||||||
Operating Earnings (loss) [Abstract] | ||||||||||||
Income (Loss) from Continuing Operations before Interest Expense, Interest Income, Income Taxes, Noncontrolling Interests, Net | $ (73) | $ (49) | $ (6) | |||||||||
[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, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
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 | 25.00% | 24.00% | 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 | 16.00% | 15.00% | 16.00% |
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 | 14.00% | 16.00% | 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 | 24.00% | 22.00% | 21.00% |
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 | 13.00% | 14.00% | 13.00% |
Additives And Functional Products [Member] | Animal Nutrition [Member] | |||
Revenue from External Customer [Line Items] | |||
Sales Revenue product line percentage of total segment revenue | 8.00% | 9.00% | 10.00% |
Advanced Materials [Member] | Specialty Plastics Product Line [Member] | |||
Revenue from External Customer [Line Items] | |||
Sales Revenue product line percentage of total segment revenue | 51.00% | 49.00% | 49.00% |
Advanced Materials [Member] | Advanced Interlayers Product Line [Member] | |||
Revenue from External Customer [Line Items] | |||
Sales Revenue product line percentage of total segment revenue | 29.00% | 32.00% | 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 | 20.00% | 19.00% | 18.00% |
Chemical Intermediates [Member] | Intermediates product line [Member] | |||
Revenue from External Customer [Line Items] | |||
Sales Revenue product line percentage of total segment revenue | 57.00% | 59.00% | 60.00% |
Chemical Intermediates [Member] | Plasticizers Product Line [Member] | |||
Revenue from External Customer [Line Items] | |||
Sales Revenue product line percentage of total segment revenue | 20.00% | 21.00% | 20.00% |
Chemical Intermediates [Member] | Functional Amines Product Line [Member] | |||
Revenue from External Customer [Line Items] | |||
Sales Revenue product line percentage of total segment revenue | 23.00% | 20.00% | 20.00% |
Fibers [Member] | Acetate Tow Product Line Member | |||
Revenue from External Customer [Line Items] | |||
Sales Revenue product line percentage of total segment revenue | 70.00% | 68.00% | 69.00% |
Fibers [Member] | Acetyl Chemical Products [Member] | |||
Revenue from External Customer [Line Items] | |||
Sales Revenue product line percentage of total segment revenue | 16.00% | 15.00% | 15.00% |
Fibers [Member] | Acetate Yarn [Member] | |||
Revenue from External Customer [Line Items] | |||
Sales Revenue product line percentage of total segment revenue | 9.00% | 12.00% | 10.00% |
Fibers [Member] | Nonwovens [Member] | |||
Revenue from External Customer [Line Items] | |||
Sales Revenue product line percentage of total segment revenue | 5.00% | 5.00% | 6.00% |
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 | 38.00% | 37.00% | 36.00% |
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% | 34.00% | 35.00% |
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 | 65.00% | 64.00% | 64.00% |
Geographic Concentration Risk [Member] | North America [Member] | Fibers [Member] | |||
Revenue from External Customer [Line Items] | |||
Sales Revenue product line percentage of total segment revenue | 26.00% | 25.00% | 26.00% |
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% | 24.00% |
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 | 33.00% | 32.00% | 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 | 13.00% | 14.00% | 15.00% |
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% | 32.00% | 33.00% |
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 | 32.00% | 33.00% | 34.00% |
Geographic Concentration Risk [Member] | EMEA [Member] | Advanced Materials [Member] | |||
Revenue from External Customer [Line Items] | |||
Sales Revenue product line percentage of total segment revenue | 27.00% | 28.00% | 27.00% |
Geographic Concentration Risk [Member] | EMEA [Member] | Chemical Intermediates [Member] | |||
Revenue from External Customer [Line Items] | |||
Sales Revenue product line percentage of total segment revenue | 16.00% | 15.00% | 15.00% |
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% | 39.00% | 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% | 6.00% | 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 | 6.00% | 7.00% | 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 | 3.00% | 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, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||||||||||||
Quarterly Financial Data [Abstract] | ||||||||||||||||||||||
Sales | $ 2,186 | $ 2,122 | $ 1,924 | $ 2,241 | $ 2,205 | $ 2,325 | $ 2,363 | $ 2,380 | $ 8,473 | $ 9,273 | $ 10,151 | |||||||||||
Gross Profit | 526 | 501 | 371 | 577 | 497 | 574 | 589 | 574 | 1,975 | 2,234 | 2,479 | |||||||||||
Asset impairments and restructuring charges (gains), net | 12 | 60 | 141 | 14 | 74 | 2 | 18 | 32 | 227 | 126 | 45 | |||||||||||
Net earnings attributable to Eastman | $ 32 | $ 161 | $ 27 | $ 258 | $ 26 | $ 266 | $ 258 | $ 209 | $ 478 | $ 759 | $ 1,080 | |||||||||||
Earnings Per Share [Abstract] | ||||||||||||||||||||||
Basic earnings per share attributable to Eastman | $ 0.23 | [1] | $ 1.19 | [1] | $ 0.20 | [1] | $ 1.90 | [1] | $ 0.19 | [1] | $ 1.95 | [1] | $ 1.87 | [1] | $ 1.50 | [1] | $ 3.53 | [2] | $ 5.52 | [2] | $ 7.65 | [2] |
Diluted earnings per share attributable to Eastman | $ 0.23 | [1] | $ 1.18 | [1] | $ 0.20 | [1] | $ 1.89 | [1] | $ 0.19 | [1] | $ 1.93 | [1] | $ 1.85 | [1] | $ 1.49 | [1] | $ 3.50 | [2] | $ 5.48 | [2] | $ 7.56 | [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, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Movement In Valuation Allowances And Reserves Roll Forward | |||
Beginning Balance | $ 1,047 | $ 1,177 | $ 1,063 |
Charges (Credits) to Cost and Expense | (69) | (100) | 132 |
Charged to Other Accounts | 2 | (14) | 1 |
Deductions | 11 | 16 | 19 |
Ending Balance | 969 | 1,047 | 1,177 |
SEC Schedule, 12-09, Allowance, Credit Loss [Member] | |||
Movement In Valuation Allowances And Reserves Roll Forward | |||
Beginning Balance | 11 | 11 | 12 |
Charges (Credits) to Cost and Expense | 4 | 0 | 0 |
Charged to Other Accounts | 0 | 0 | 0 |
Deductions | 1 | 0 | 1 |
Ending Balance | 14 | 11 | 11 |
LIFO Inventory [Member] | |||
Movement In Valuation Allowances And Reserves Roll Forward | |||
Beginning Balance | 248 | 337 | 288 |
Charges (Credits) to Cost and Expense | (22) | (89) | 44 |
Charged to Other Accounts | 0 | 0 | 5 |
Deductions | 0 | 0 | 0 |
Ending Balance | 226 | 248 | 337 |
Non-environmental asset retirement obligation Costs [Member] | |||
Movement In Valuation Allowances And Reserves Roll Forward | |||
Beginning Balance | 48 | 46 | 49 |
Charges (Credits) to Cost and Expense | 2 | 2 | (2) |
Charged to Other Accounts | 1 | 0 | 0 |
Deductions | 0 | 0 | 1 |
Ending Balance | 51 | 48 | 46 |
Environmental Contingencies [Member] | |||
Movement In Valuation Allowances And Reserves Roll Forward | |||
Beginning Balance | 287 | 296 | 304 |
Charges (Credits) to Cost and Expense | 8 | 7 | 9 |
Charged to Other Accounts | 0 | 0 | 0 |
Deductions | 10 | 16 | 17 |
Ending Balance | 285 | 287 | 296 |
SEC Schedule, 12-09, Valuation Allowance, Deferred Tax Asset [Member] | |||
Movement In Valuation Allowances And Reserves Roll Forward | |||
Beginning Balance | 453 | 487 | 410 |
Charges (Credits) to Cost and Expense | (61) | (20) | 81 |
Charged to Other Accounts | 1 | (14) | (4) |
Deductions | 0 | 0 | 0 |
Ending Balance | $ 393 | $ 453 | $ 487 |