Eastman Chemical (EMN) 10-Q 30 Jul 09 2009 Q2 Quarterly report Financial data

1000 - UNAUDITED CONSOLIDATED S

1000 - UNAUDITED CONSOLIDATED STATEMENTS OF EARNINGS, COMPREHENSIVE INCOME AND RETAINED EARNINGS (USD $)
In Millions, except Per Share data	3 Months Ended Jun. 30, 2009	3 Months Ended Jun. 30, 2008	6 Months Ended Jun. 30, 2009		6 Months Ended Jun. 30, 2008
UNAUDITED CONSOLIDATED STATEMENTS OF EARNINGS, COMPREHENSIVE INCOME AND RETAINED EARNINGS
Sales	$1,253	$1,834	$2,382		$3,561
Cost of sales	993	1,513	1,943		2,903
Gross profit	260	321	439		658
Selling, general and administrative expenses	98	107	192		217
Research and development expenses	34	39	68		81
Asset impairments and restructuring charges, net	(3)	3	23		20
Operating earnings	131	172	156		340
Net interest expense	20	18	39		34
Other charges (income), net	5	1	9		0
Earnings from continuing operations before income taxes	106	153	108		306
Provision for income taxes from continuing operations	41	38	41		76
Earnings from continuing operations	65	115	67		230
Earnings from disposal of discontinued operations, net of tax	0	0	0		18
Net Earnings	65	115	67		248
Basic earnings per share
Earnings from Continuing Operations, Per Basic Share	0.89	1.51	0.92		2.98
Earnings from discontinued operations, Per Basic Share	$0	$0	$0		0.23
Basic Earnings Per Share	0.89	1.51	0.92		3.21
Diluted earnings per share
Earnings from Continuing Operations, Per Diluted Share	0.89	1.48	0.91		2.94
Earnings from discontinued operations, Per Diluted Share	$0	$0	$0		0.22
Diluted Earnings Per Share	0.89	1.48	0.91		3.16
Comprehensive Income
Net Earnings	65	115	67		248
Other Comprehensive Income (Loss), Net of Tax [Abstract]
Change in Cummulative Translation Adjustment, Net of Tax	25	(4)	15		(41)
Change in pension plans, net of tax	(2)	0	(2)		8
Change in unrealized gains (losses) on derivative instruments, net of tax	(8)	29	1		3
Total other comprehensive income (loss)	15	25	14		(30)
Comprehensive Income	80	140	81		218
Retained Earnings
Retained Earnings at Beginning of Period	2,533	2,448	2,563		2,349
Net Earnings	65	115	67		248
Cash dividends declared	(32)	(34)	(64)	[1]	(68)
Retained Earnings at End of Period	$2,566	$2,529	$2,566		$2,529
[1]Includes cash dividends declared, but unpaid.

2000 - CONSOLIDATED STATEMENTS

2000 - CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (USD $)
In Millions	Jun. 30, 2009	Dec. 31, 2008
Current Assets
Cash and cash equivalents	$450	$387
Trade receivables, net	328	275
Miscellaneous Receivables	155	79
Inventories	443	637
Other Current Assets	29	45
Total current assets	1,405	1,423
Properties
Properties and Equipment at Cost	8,573	8,527
Less: Accumulated Depreciation	5,301	5,329
Net properties and equipment	3,272	3,198
Goodwill	325	325
Other noncurrent assets	354	335
Total assets	5,356	5,281
Current liabilities
Payables and other current liabilities	706	819
Borrowings due within one year	11	13
Total current liabilities	717	832
Long-term borrowings	1,440	1,442
Deferred income tax liabilities	248	106
Post-employment obligations	1,262	1,246
Other long-term liabilities	114	102
Total liabilities	3,781	3,728
Stockholders' equity
Common Stock, Value, Issued	1	1
Additional Paid in Capital	643	638
Retained Earnings	2,566	2,563
Accumulated Other Comprehensive Loss	(321)	(335)
Less: Treasury stock at cost	1,314	1,314
Total stockholders' equity	1,575	1,553
Total liabilities and stockholders' equity	$5,356	$5,281

2050 - Paranthetical Data To Th

2050 - Paranthetical Data To The Consolidated Statements Of Financial Position (USD $)
	Jun. 30, 2009	Dec. 31, 2008
Stockholders' equity
Common Stock, Par or Stated Value Per Share	0.01	0.01
Common Stock, Shares Authorized	350,000,000	350,000,000
Common Stock, Shares, Issued	94,617,895	94,495,860
Treasury Stock, Shares	22,034,991	22,031,357

3000 - UNAUDITED CONSOLIDATED S

3000 - UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)
In Millions	6 Months Ended Jun. 30, 2009	6 Months Ended Jun. 30, 2008
Cash flows from operating activities
Net Earnings	$67	$248
Adjustments to reconcile net earnings to net cash provided by (used in) operating activities:
Depreciation and amortization	134	132
Asset impairments charges	0	1
Gains on sale of assets	0	(13)
Provision (Benefit) for Deferred Income Taxes	140	(59)
Changes in operating assets and liabilities, net of effect of acquisitions and divestitures:
(Increase) Decrease in Trade Receivables	(52)	(88)
(Increase) decrease in inventories	191	(115)
Increase (decrease) in trade payables	(55)	10
Increase (Decrease) in Liabilities for Employee Benefits and Incentive Pay	(22)	(29)
Other Items, Net	(66)	(8)
Net cash provided by operating activities	337	79
Cash flows from investing activities
Additions to Properties and Equipment	(204)	(278)
Proceeds from Sale of Assets	25	329
Acquisitions of Joint Ventures	0	(32)
Investments in Joint Ventures	0	(6)
Additions to Capitalized Software	(4)	(6)
Other Items, Net	(43)	(1)
Net cash provided by (used in) investing activities	(226)	6
Cash flows from financing activities
Net increase in commercial paper, credit facility and other borrowings	9	63
Repayments of Borrowings	(2)	(175)
Dividends Paid to Stockholders	(64)	(69)
Treasury Stock Purchases	0	(270)
Proceeds from Stock Option Exercises and Other Items	9	39
Net cash used in financing activities	(48)	(412)
Effect of Exchange Rate on Cash and Cash Equivalents	0	1
Net change in cash and cash equivalents	63	(326)
Cash and cash equivalents at beginning of period	387	888
Cash and Cash Equivalents at End of Period	$450	$562

4000 - STATEMENTOFSTOCKHOLDERSE

4000 - STATEMENTOFSTOCKHOLDERSEQUITY (USD $)
In Millions	Common Stock [Member]		Additional Paid-in Capital [Member]		Retained Earnings [Member]		Accumulated Other Comprehensive Income [Member]		Treasury Stock [Member]		Total
Stockholders' Equity Attributable to Parent, Beginning Balance at Dec. 31, 2008	$1		$638		$2,563		($335)		($1,314)		$1,553
Net Earnings	0		0		67		0		0		67
Cash dividends declared	0	[1]	0	[1]	(64)	[1]	0	[1]	0	[1]	(64)	[1]
Other Comprehensive Income (Loss), Net of Tax	0		0		0		14		0		14
Share-based Compensation Expense, Value	0	[2]	7	[2]	0	[2]	0	[2]	0	[2]	7	[2]
Other Items	0	[3]	(2)	[3]	0	[3]	0	[3]	0	[3]	(2)	[3]
Stockholders' Equity Attributable to Parent, Ending Balance at Jun. 30, 2009	$1		$643		$2,566		($321)		($1,314)		$1,575
[1]Includes cash dividends declared, but unpaid.
[2]The fair value of equity share-based awards recognized under SFAS No. 123 Revised December 2004, "Share-Based Payment".
[3]The tax benefits relating to the difference between the amounts deductible for federal income taxes over the amounts charged to income for book value purposes have been credited to paid-in capital.

6000 - BASIS OF PRESENTATION

6000 - BASIS OF PRESENTATION
	6 Months Ended Jun. 30, 2009 USD / shares
BASIS OF PRESENTATION
Basis of Accounting [Text Block]	1. BASIS OF PRESENTATION The accompanying unaudited consolidated financial statements have been prepared by Eastman Chemical Company (the "Company" or "Eastman") in accordance and consistent with the accounting policies stated in the Company's 2008 Annual Report on Form 10-K and should be read in conjunction with the consolidated financial statements in Part II, Item8 of the Company's 2008 Annual Report on Form 10-K.The unaudited consolidated financial statements are prepared in conformity with generally accepted accounting principles ("GAAP") and, of necessity, include some amounts that are based upon management estimates and judgments.Future actual results could differ from such current estimates.The unaudited consolidated financial statements include assets, liabilities, revenues, and expenses of all majority-owned subsidiaries and joint ventures.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. The Company has evaluated the period from June 30, 2009, the date of the financial statements, through July 30, 2009, the date of the issuance and filing of the financial statements, and has determined that no material subsequent events have occurred that would affect the information presented in these financial statements or require additional disclosure.

6010 - DISCONTINUED OPERATIONS

6010 - DISCONTINUED OPERATIONS
	6 Months Ended Jun. 30, 2009 USD / shares
DISCONTINUED OPERATIONS
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block]	2. DISCONTINUED OPERATIONS In first quarter 2008, the Company sold its polyethylene terephthalate ("PET") polymers and purified terephthalic acid ("PTA") production facilities in the Netherlands and its PET production facility in the United Kingdom and related businesses for approximately $329 million.The Company recognized a gain of $18 million, net of tax, related to the sale of these businesses which includes the recognition of deferred currency translation adjustments of approximately $40 million, net of tax.In addition, the Company indemnified the buyer against certain liabilities primarily related to taxes, legal matters, environmental matters, and other representations and warranties. The sale of the manufacturing facilities in the Netherlands and United Kingdom, and related businesses completed the Company's exit from the European PET business and qualified as a component of an entity under Statement of Financial Accounting Standards ("SFAS") No. 144, "Accounting for the Impairment or Disposal of Long-Lived Assets," and accordingly their results are presented as discontinued operations and are not included in the results from continuing operations for the effected period presented in the Company's unaudited consolidated financial statements. In fourth quarter 2007, the Company sold its PET polymers production facilities in Mexico and Argentina and the related businesses.The results related to the Mexico and Argentina facilities were not presented as discontinued operations due to continuing involvement of the Company's Performance Polymers segment in the region including contract polymer intermediates sales under a transition supply agreement to the divested sites through 2008. Operating results of the discontinued operations which were formerly included in the Performance Polymers segment are summarized below: First Six Months (Dollars in millions) 2008 Sales $ 169 Earnings before income taxes 2 Gain on disposal, net of tax 18

6020 - INVENTORIES

6020 - INVENTORIES
	6 Months Ended Jun. 30, 2009 USD / shares
INVENTORIES
Inventory Disclosure [Text Block]	3. INVENTORIES June 30, December 31, (Dollars in millions) 2009 2008 At FIFO or average cost (approximates current cost) Finished goods $ 510 $ 634 Work in process 155 200 Raw materials and supplies 263 328 Total inventories 928 1,162 LIFO Reserve (485) (525) Total inventories $ 443 $ 637 Inventories valued on the LIFO method were approximately 70 percent as of June 30, 2009 and 75 percent as of December 31, 2008 of total inventories.

6030 - PAYABLES AND OTHER CURRE

6030 - PAYABLES AND OTHER CURRENT LIABILITIES
	6 Months Ended Jun. 30, 2009 USD / shares
PAYABLES AND OTHER CURRENT LIABILITIES
Accounts Payable and Accrued Liabilities Disclosure [Text Block]	4. PAYABLES AND OTHER CURRENT LIABILITIES June 30, December 31, (Dollars in millions) 2009 2008 Trade creditors $ 339 $ 390 Accrued payrolls, vacation, and variable-incentive compensation 81 129 Accrued taxes 25 41 Post-employment obligations 63 60 Interest payable 30 30 Bank overdrafts 12 4 Other 156 165 Total payables and other current liabilities $ 706 $ 819 The current portion of post-employment obligations is an estimate of current year payments in excess of plan assets.

6040 - PROVISION FOR INCOME TAX

6040 - PROVISION FOR INCOME TAXES
	6 Months Ended Jun. 30, 2009 USD / shares
PROVISION FOR INCOME TAXES
Income Tax Disclosure [Text Block]	5. PROVISION FOR INCOME TAXES Second Quarter First Six Months (Dollars in millions) 2009 2008 2009 2008 Provision for income taxes $ 41 $ 38 $ 41 $ 76 Effective tax rate 39 % 25 % 38 % 25 % Second quarter and first six months 2009 effective tax rates reflect a $7 million tax charge associated with a change in accounting method for tax purposes to accelerate timing of deductions for manufacturing repairs expense.Second quarter and first six months 2008 effective tax rates reflect an estimated benefit resulting from a gasification investment tax credit, an $8 million benefit from the reversal of a U.S. capital loss valuation allowance associated with the sale of businesses, and a $6 million benefit from the settlement of a non-U.S. income tax audit.Excluding discrete items, second quarter and first six months 2009 and 2008 effective tax rates reflect the Company's expected full year tax rate on reported earnings from continuing operations before income tax, of approximately 33 and 30 percent, respectively. The Company or one of its subsidiaries files tax returns in the U.S. federal jurisdiction, and various states and foreign jurisdictions.With few exceptions, the Company is no longer subject to U.S. federal, state and local, or non-U.S. income tax examinations by tax authorities for years before 2003.It is reasonably possible that within the next 12 months the Company will recognize approximately $3 million of unrecognized tax benefits as a result of the expiration of the relevant statute of limitations.

6050 - BORROWINGS

6050 - BORROWINGS
	6 Months Ended Jun. 30, 2009 USD / shares
BORROWINGS
Debt Disclosure [Text Block]	6. BORROWINGS June 30, December 31, (Dollars in millions) 2009 2008 Borrowings consisted of: 7% notes due 2012 $ 153 $ 154 6.30% notes due 2018 206 207 7 1/4% debentures due 2024 497 497 7 5/8% debentures due 2024 200 200 7.60% debentures due 2027 298 298 Credit facilities borrowings 84 84 Other 13 15 Total borrowings 1,451 1,455 Borrowings due within one year (11) (13) Long-term borrowings $ 1,440 $ 1,442 At June 30, 2009, the Company had credit facilities with various U.S. and foreign banks totaling approximately $800 million.These credit facilities consist of a $700 million revolving credit facility (the "Credit Facility"), as well as a 60 million euro credit facility ("Euro Facility").The Credit Facility has two tranches,with $125 million expiring in 2012 and $575 million expiring in 2013.The Euro Facility expires in 2012.Borrowings under these credit facilities are subject to interest at varying spreads above quoted market rates.The Credit Facility requires a facility fee on the total commitment.In addition, these credit facilities contain a number of customary covenants and events of default, including the maintenance of certain financial ratios.The Company was incompliance with all such covenants for all periods presented.At June 30, 2009, the Company's credit facility borrowings totaled $84 million at an effective interest rate of 1.29 percent.At December 31, 2008, the Company's credit facility borrowings totaled $84 million at an effective interest rate of 3.74 percent. The Credit Facility provides liquidity support for commercial paper borrowings and general corporate purposes.Accordingly, any outstanding commercial paper borrowings reduce borrowings available under the Credit Facility.Given the expiration dates of the Credit Facility, any commercial paper borrowings supported bythe Credit Facility are classified as long-term borrowings because the Company has the ability and intent to refinance such borrowings on a long-term basis.

6060 - ASSET IMPAIRMENTS AND RE

6060 - ASSET IMPAIRMENTS AND RESTRUCTURING CHARGES, NET
	6 Months Ended Jun. 30, 2009 USD / shares
ASSET IMPAIRMENTS AND RESTRUCTURING CHARGES, NET
Restructuring and Related Activities Disclosure [Text Block]	7. ASSET IMPAIRMENTS AND RESTRUCTURING CHARGES, NET In second quarter 2009, there was a $3 million reduction of the first quarter 2009 restructuring charge resulting in a net $23 million charge in first six months 2009.The charges, primarily for severance, resulted from a reduction in force. In second quarter and first six months 2008, asset impairments and restructuring charges, net totaled $3 million and $20 million, respectively, primarily for severance, pension charges, and site closure costs in the Performance Chemicals and Intermediates ("PCI") segment resulting from the decision to close a previously impaired site in the United Kingdom. Changes in Reserves for Asset Impairments, Restructuring Charges, and Severance Charges The following table summarizes the beginning reserves, charges to and changes in estimates to the reserves as described above, and the cash and non-cash reductions to the reserves attributable to asset impairments and the cash payments for severance and site closure costs for full year 2008 and first six months 2009: (Dollars in millions) Balance at January 1, 2008 Provision/ Adjustments Non-cash Reductions Cash Reductions Balance at December 31, 2008 Non-cash charges $ -- $ 2 $ (2) $ -- $ -- Severance costs 7 10 -- (12) 5 Site closure and otherrestructuring costs 11 34 -- (20) 25 Total $ 18 $ 46 $ (2) $ (32) $ 30 Balance at January 1, 2009 Provision/ Adjustments Non-cash Reductions Cash Reductions Balance at June 30,2009 Non-cash charges $ -- $ -- $ -- $ -- $ -- Severance costs 5 24 -- (8) 21 Site closure and otherrestructuring costs 25 (1) -- (1) 23 Total $ 30 $ 23 $ -- $ (9) $ 44 A majority of the remaining severance and site closure costs is expected to be applied to the reserves within one year.

6070 - RETIREMENT PLANS

6070 - RETIREMENT PLANS
	6 Months Ended Jun. 30, 2009 USD / shares
RETIREMENT PLANS
Pension and Other Postretirement Benefits Disclosure [Text Block]	8. RETIREMENT PLANS DEFINED BENEFIT PENSION PLANS Eastman maintains defined benefit pension plans that provide eligible employees hired prior to January 1, 2007, with retirement benefits.Costs recognized for these benefits are recorded using estimated amounts, which may change as actual costs derived for the year are determined. Below is a summary of the components of net periodic benefit cost recognized for Eastman's significant defined benefit pension plans: Summary of Components of Net Periodic Benefit Costs Second Quarter First Six Months (Dollars in millions) 2009 2008 2009 2008 Service cost $ 10 $ 11 $ 21 $ 23 Interest cost 22 23 43 44 Expected return on assets (25) (27) (49) (53) Curtailment charge -- -- -- 9 Amortization of: Prior service credit (4) (4) (8) (7) Actuarial loss 10 8 17 14 Net periodic benefit cost $ 13 $ 11 $ 24 $ 30 The curtailment charge in 2008 was primarily related to the decision to close a previously impaired site in the United Kingdom. POSTRETIREMENT WELFARE PLANS Eastman provides a subsidy toward life insurance, health care, and dental benefits for eligible retirees hired prior to January 1, 2007, and a subsidy toward health care benefits for retirees' eligible survivors.In general, Eastman provides those benefits to retirees eligible under the Company's U.S. plans.Similar benefits are also made available to retirees of Holston Defense Corporation, a wholly-owned subsidiary of the Company that, prior to January 1, 1999, operated a government-owned ammunitions plant. Employees hired on or after January 1, 2007 will have access to postretirement health care benefits only; Eastman will not provide a subsidy toward the premium cost of postretirement benefits for those employees. 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. Costs recognized for benefits for eligible retirees hired prior to January 1, 2007 are recorded using estimated amounts, which may change as actual costs derived for the year are determined.Below is a summary of the components of net periodic benefit cost recognized for the Company's U.S. plans: Summary of Components of Net Periodic Benefit Costs Second Quarter First Six Months (Dollars in millions) 2009 2008 2009 2008 Service cost $ 2 $ 1 $ 4 $ 3 Interest cost 11 11 22 22 Expected return on assets -- (1) (1) (2) Amortization of: Prior service credit (6) (5) (12) (11) Actuarial loss 3 3 6 5 Net periodic benefit cost $ 10 $ 9 $ 19 $ 17

6080 - ENVIRONMENTAL MATTERS

6080 - ENVIRONMENTAL MATTERS
	6 Months Ended Jun. 30, 2009 USD / shares
ENVIRONMENTAL MATTERS
Environmental Matters [Text Block]	9. ENVIRONMENTAL MATTERS Certain Eastman manufacturing sites 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 such cleanup costs.In addition, the Company could be required to incur costs for environmental remediation and closure and postclosure under the federal Resource Conservation and Recovery Act.Reserves for environmental contingencies have been established in accordance with Eastman's policies described in Note 1, "Significant Accounting Policies", to the consolidated financial statements in Part II, Item 8 of the Company's 2008 Annual Report on Form 10-K.Because of expected sharing of costs, the availability of legal defenses, and the Company's preliminary assessment of actions that may be required, 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.The Company's reserve for environmental contingencies was $41 million at both June 30, 2009 and December 31, 2008, representing the minimum or best estimate for remediation costs and the best estimate accrued to date over the facilities' estimated useful lives for asset retirement obligation costs.Estimated future environmental expenditures for remediation costs range from the minimum or best estimate of $11 million to the maximum of $23 million at June 30, 2009, and $11 million to the maximum of $21 million at December 31, 2008.

6090 - COMMITMENTS DISCLOSURE

6090 - COMMITMENTS DISCLOSURE
	6 Months Ended Jun. 30, 2009 USD / shares
COMMITMENTS DISCLOSURE
Commitments Disclosure	10. COMMITMENTS Purchasing Obligations and Lease Commitments At June 30, 2009, the Company had various purchase obligations totaling approximately $1.4 billion over a period of approximately 15 years for materials, supplies, and energy incident to the ordinary conduct of business.The Company also had various lease commitments for property and equipment under cancelable, noncancelable, and month-to-month operating leases totaling $107 million over a period of several years.Of the total lease commitments, approximately 17 percent relate to machinery and equipment, including computer and communications equipment and production equipment; approximately 40 percent relate to real property, including office space, storage facilities and land; and approximately 43 percent relate to vehicles, primarily railcars. Accounts Receivable Securitization Program In 1999, the Company entered into an agreement that allows the Company to sell certain trade receivables on a non-recourse basis to a consolidated special purpose entity which in turn may sell interests in those receivables to a third party purchaser which generally funds its purchases via the issuance of commercial paper backed by the receivables interests.The annually renewable agreement permits the sale of undivided interests in domestic trade accounts receivable.The assets of the special purpose entity are not available to satisfy the Company's general obligations.Receivables sold to the third party totaled $200 million at June 30, 2009 and December 31, 2008.Undivided interests in designated receivable pools were sold to the purchaser with recourse limited to the purchased interest in the receivable pools.Average monthly proceeds from collections reinvested in the continuous sale program were approximately $218 million and $341 million in second quarter 2009 and 2008, respectively, and $214 million and $335 million in first six months 2009 and 2008, respectively.The securitization program was fully drawn at June 30, 2009 and renewed in July 2009. Guarantees Financial Accounting Standards Board ("FASB") Interpretation No. 45, "Guarantor's Accounting and Disclosure Requirements for Guarantees, Including Indirect Guarantees of Indebtedness of Others", clarifies the requirements of SFAS No.5, "Accounting for Contingencies", relating to the guarantor's accounting for, and disclosure of, the issuance of certain types of guarantees.If certain operating leases are terminated by the Company, it guarantees a portion of the residual value loss, if any, incurred by the lessors in disposing of the related assets.Under these operating leases, the residual value guarantees at June 30, 2009totaled $160 million and consisted of leases for railcars and aircraft.Leases with guarantee amounts totaling $2 million, $11million, and $147 million will expire in 2009, 2011, and 2012 and beyond, respectively.The Company believes, based on current facts and circumstances, that the likelihood of a material payment pursuant to such guarantees is remote. Variable Interest Entities The Company has evaluated its material contractual relationships and has concluded that the entities involved in these relationshi

6100 - FAIR VALUE OF FINANCIAL

6100 - FAIR VALUE OF FINANCIAL INSTRUMENTS
	6 Months Ended Jun. 30, 2009 USD / shares
FAIR VALUE OF FINANCIAL INSTRUMENTS
Derivative Instruments and Hedging Activities Disclosure [Text Block]	11. FAIR VALUE OF FINANCIAL INSTRUMENTS Fair Value Measurements The Company adopted SFAS No. 157, "Fair Value Measurements," ("SFAS No. 157") on January 1, 2008.The standard establishes a valuation hierarchy for disclosure of the inputs to the valuation used to measure fair value of certain assets and liabilities.This hierarchy prioritizes the inputs into 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.A financial asset or liability's classification within the hierarchy is determined based on the lowest level input that is significant to the fair value measurement. The following chart shows the financial instruments valued on a recurring basis. (Dollars in millions) Fair Value Measurements at June 30, 2009 Description June 30, 2009 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Derivative Assets $ 16 $ -- $ 16 $ -- Derivative Liabilities (4) -- (4) -- $ 12 $ -- $ 12 $ -- (Dollars in millions) Fair Value Measurements at December 31, 2008 Description December 31, 2008 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Derivative Assets $ 16 $ -- $ 16 $ -- Derivative Liabilities (14) -- (14) -- $ 2 $ -- $ 2 $ -- Hedging Programs The Company is exposed to market risk, such as changes in currency exchange rates, raw material and energy costs, and interest rates.The Company uses various derivative financial instruments pursuant to the Company's hedging policies to mitigate these market risk factors and their effect on the cash flows of the underlying transactions.Designation is performed on a specific exposure basis to support hedge accounting.The changes in fair value of these hedging instruments are offset in part or in whole by corresponding changes in the cash flows of the underlying exposures being hedged.The Company does not hold or issue derivative financial instruments for trading purposes.For further information, see Note 10, "Fair Value of Financial Instruments", to the consolidated financial statements in Part II, Item 8 of the Company's2008 Annual Report on Form 10-K. Fair Value Hedges Fair value hedges are defined by SFAS No. 133, "Accounting for Derivative Instruments and Hedging Activities" ("SFAS No. 133") 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 porti

6110 - STOCKHOLDERS' EQUITY

6110 - STOCKHOLDERS' EQUITY
	1/1/2009 - 6/30/2009 USD / shares
STOCKHOLDERS' EQUITY
Stockholders' Equity Note Disclosure [Text Block]	12. STOCKHOLDERS' EQUITY A reconciliation of the changes in stockholders' equity in first six months 2009 is provided below: (Dollars in millions) Common Stock at Par Value $ Paid-in Capital $ Retained Earnings $ Accumulated Other Comprehensive Income (Loss) $ Treasury Stock at Cost $ Total Stockholders' Equity $ Balance at December 31, 2008 1 638 2,563 (335) (1,314) 1,553 Net Earnings -- -- 67 -- -- 67 Cash Dividends Declared (1) -- -- (64) -- -- (64) Other Comprehensive Income -- -- -- 14 -- 14 Stock-Based Compensation Expense (2) -- 7 -- -- -- 7 Other (3) -- (2) -- -- -- (2) Balance at June 30, 2009 1 643 2,566 (321) (1,314) 1,575 (1)Includes cash dividends declared, but unpaid. (2)The fair value of equity share-based awards recognized under SFAS No. 123 Revised December 2004, "Share-Based Payment". (3)The tax benefits relating to the difference between the amounts deductible for federal income taxes over the amounts charged to income for book value purposes have been credited to paid-in capital. ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX (Dollars in millions) Cumulative Translation Adjustment $ Pension Plans $ Unrealized Gains (Losses) on Derivative Instruments $ Unrealized Losses on Investments $ Accumulated Other Comprehensive Income (Loss) $ Balance at December 31, 2007 157 (182) (3) -- (28) Period change (97) (232) 23 (1) (307) Balance at December 31, 2008 60 (414) 20 (1) (335) Period change 15 (2) 1 -- 14 Balance at June 30, 2009 75 (416) 21 (1) (321) Amounts of other comprehensive income (loss) are presented net of applicable taxes.The Company records deferred income taxes on the cumulative translation adjustment related to branch operations and other entities included in the Company's consolidated U.S. tax return.No deferred income taxes are provided on the cumulative translation adjustment of subsidiaries outside the United States, as such cumulative translation adjustment is considered to be a component of permanently invested, unremitted earnings of these foreign subsidiaries.

6120 - EARNINGS AND DIVIDENDS P

6120 - EARNINGS AND DIVIDENDS PER SHARE
	6 Months Ended Jun. 30, 2009 USD / shares
EARNINGS AND DIVIDENDS PER SHARE
Earnings and Dividends Per Share	13. EARNINGS AND DIVIDENDS PER SHARE Second Quarter First Six Months 2009 2008 2009 2008 Shares used for earnings per share calculation (in millions): Basic 72.5 76.1 72.5 77.1 Diluted 73.1 77.4 73.0 78.3 In second quarter and first six months 2009, common shares underlying options to purchase 3,745,729 shares of common stock and 4,031,829 shares of common stock, respectively, were excluded from the computation of diluted earnings per share because the total market value of option exercises for these awards was less than the total proceeds that would be received for these awards.There were no repurchases in first six months 2009. In second quarter and first six months 2008, common shares underlying options to purchase 171,500 shares of common stock and 237,050 shares of common stock, respectively, were excluded from the computation of diluted earnings per share because the total market value of option exercises for these awards was less than the total proceeds that would be received for these awards.Second quarter and first six months 2008 reflect the impact of share repurchases of 0.4 million and 4.2 million shares, respectively. The Company declared cash dividends of $0.44 per share in second quarter 2009 and 2008 and $0.88 per share in first six months 2009 and 2008.

BASED COMPENSATION AWARDS

BASED COMPENSATION AWARDS
	6 Months Ended Jun. 30, 2009 USD / shares
SHARE-BASED COMPENSATION AWARDS
Disclosure of Compensation Related Costs, Share-based Payments [Text Block]	14. SHARE-BASED COMPENSATION AWARDS The Company utilizes share-based awards under employee and non-employee director compensation programs.These share-based awards may include restricted and unrestricted stock, restricted stock units, stock options, and performance shares.In both second quarter 2009 and 2008, approximately $5 million of compensation expense before tax were recognized in selling, general and administrative expense in the earnings statement for all share-based awards.The impact on second quarter 2009 and 2008 net earnings of $2 million and $3 million, respectively, is net of deferred tax expense related to share-based award compensation. In first six months 2009 and 2008, $9 million and $13 million, respectively, of compensation expense before tax were recognized in selling, general and administrative expense in the earnings statement for all share-based awards.The impact on first six months 2009 and 2008 net earnings of $5 million and $8 million, respectively, is net of deferred tax expense related to share-based award compensation. Additional information regarding share-based compensation plans and awards may be found in Note 16, "Share-Based Compensation Plans and Awards", to the consolidated financial statements in Part II, Item 8 of the Company's 2008 Annual Report on Form 10-K.

6140 - SEGMENT INFORMATION

6140 - SEGMENT INFORMATION
	6 Months Ended Jun. 30, 2009 USD / shares
SEGMENT INFORMATION
Segment Reporting Disclosure [Text Block]	15. SEGMENT INFORMATION The Company's products and operations are managed and reported in five reportable operating segments, consisting of the Coatings, Adhesives, Specialty Polymers, and Inks ("CASPI") segment, the Fibers segment, the PCI segment, the Performance Polymers segment, and the Specialty Plastics ("SP") segment.For additional information concerning the Company's segments' businesses and products, see Note 23, "Segment Information", to the consolidated financial statements in Part II, Item 8 of the Company's 2008 Annual Report on Form 10-K. Research and development and other expenses not identifiable to an operating segment are not included in segment operating results for either of the periods presented and are shown in the tables below as "other" operating losses. Second Quarter (Dollars in millions) 2009 2008 Sales by Segment CASPI $ 302 $ 414 Fibers 263 260 PCI 302 618 Performance Polymers 199 289 SP 187 253 Total Sales $ 1,253 $ 1,834 First Six Months (Dollars in millions) 2009 2008 Sales by Segment CASPI $ 552 $ 803 Fibers 522 514 PCI 588 1,174 Performance Polymers 376 593 SP 344 477 Total Sales $ 2,382 $ 3,561 Second Quarter (Dollars in millions) 2009 2008 Operating Earnings (Loss) CASPI (1)(2) $ 50 $ 53 Fibers 74 62 PCI (3) 5 54 Performance Polymers (4) 3 2 SP (1) 8 13 Total Operating Earnings by Segment 140 184 Other (9) (12) Total Operating Earnings $ 131 $ 172 (1) Second quarter 2009 includes a positive adjustment to first quarter 2009 restructuring charge of ($2) million and ($1) million in the CASPI and SP segments, respectively. (2) Second quarter 2008 includes $2 million in gains for an adjustment to a reserve for asset impairments and restructuring charges, net for the first quarter 2008 divestiture of certain product lines. (3) Second quarter 2008 includes $3 million of asset impairments and restructuring charges, net primarily related to severance and pension costs from the decision to close a previously impaired site in the United Kingdom and $1 million in accelerated depreciation costs resulting from the previously reported shutdown of cracking units at the Company's Longview, Texas facility. (4) Second quarter 2008 includes $2 million of asset impairments and restructuring charges, net related to restructuring at the South Carolina facility using IntegRexTM technology and $2 million of accelerated depreciation costs resulting from restructuring actions associated with certain assets in Columbia, South Carolina. First Six Months (Dollars in millions) 2009 2008 Operating Earnings (Loss) CASPI (1)(2) $ 64 $ 112 Fibers (1) 143 130 PCI (1)(3) 2 98 Performance Polymers (1)(4) (22) (4) SP (1) (10) 30 Total Operating Earnings by Segment 177 366 Other (21) (26) Total Oper

6150 - LEGAL MATTERS

6150 - LEGAL MATTERS
	6 Months Ended Jun. 30, 2009 USD / shares
LEGAL MATTERS
Commitments and Contingencies Disclosure [Text Block]	16. LEGAL MATTERS From time to time, the Company 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 being handled and defended in the ordinary course of business.While the Company is unable to predict the outcome of these matters, it does not believe, based upon currently available facts, that the ultimate resolution of any such pending matters will have a material adverse effect on its overall financial condition, results of operations or cash flows.However, adverse developments could negatively impact earnings or cash flows in a particular future period.

6160 - RECENTLY ISSUED ACCOUNTI

6160 - RECENTLY ISSUED ACCOUNTING STANDARDS
	6 Months Ended Jun. 30, 2009 USD / shares
RECENTLY ISSUED ACCOUNTING STANDARDS
Description of New Accounting Pronouncements Not yet Adopted [Text Block]	17. RECENTLY ISSUED ACCOUNTING STANDARDS In June 2009, the FASB issued SFAS No. 166, "Accounting for Transfers of Financial Assets, an amendment of FASB Statement No. 140" ("SFAS No. 166").This statement addresses the relevance, representational faithfulness, and comparability of the information that a reporting entity provides in its financial reports about a transfer of financial assets; the effects of a transfer on its financial position, financial performance, and cash flows; and a transferors continuing involvement in transferred financial assets.This statement is effective as of the beginning of each reporting entitys first annual reporting period that begins after November 15, 2009, for interim periods within that first annual reporting period, and for interim and annual reporting periods thereafter.The Company is currently evaluating the effect SFAS No. 166 will have on its consolidated financial position, liquidity, or results of operations. In June 2009, the FASB issued SFAS No. 167, "Amendments to FASB Interpretation No. 46(R)" ("SFAS No. 167").This statement amends certain requirements of FASB Interpretation No. 46 (revised December 2003), "Consolidation of Variable Interest Entities", to improve financial reporting by enterprises involved with variable interest entities and to provide more relevant and reliable information to users of financial statements.This statement is effective as of the beginning of each reporting entitys first annual reporting period that begins after November 15, 2009, for interim periods within that first annual reporting period, and for interim and annual reporting periods thereafter.The Company is currently evaluating the effect SFAS No. 167 will have on its consolidated financial position, liquidity, or results of operations.

Document Information

Document Information
	6 Months Ended Jun. 30, 2009 USD / shares
Document Information [Line Items]
Document Type	10-Q
Document Period End Date	2009-06-30
Amendment Flag	false
Amendment Description	none

Entity Information

Entity Information (USD $)
	6 Months Ended Jun. 30, 2009	Jun. 30, 2008
Entity Information [Line Items]
Entity Registrant Name	Eastman Chemical Company
Entity Central Index Key	0000915389
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Public Float		$4,959,686,328
Entity Common Stock, Shares Outstanding	72,665,578

Uncategorized Items

Uncategorized Items
	1/1/2009 - 6/30/2009
Entity [Text Block]	Eastman Chemical Company