Eastman Chemical (EMN) 10-K/A 24 Feb 10 2009 FY Annual report (amended) Financial data

CONSOLIDATED STATEMENTS OF EARN

CONSOLIDATED STATEMENTS OF EARNINGS, COMPREHENSIVE INCOME AND RETAINED EARNINGS (USD $)
In Millions, except Per Share data	12 Months Ended Dec. 31, 2009	12 Months Ended Dec. 31, 2008	12 Months Ended Dec. 31, 2007
CONSOLIDATED STATEMENTS OF EARNINGS, COMPREHENSIVE INCOME and RETAINED EARNINGS
Sales	$5,047	$6,726	$6,830
Cost of sales	3,994	5,600	5,638
Gross profit	1,053	1,126	1,192
Selling, general and administrative expenses	399	419	420
Research and development expenses	137	158	156
Asset impairments and restructuring charges, net	200	46	112
Other operating income, net	0	(16)	0
Operating earnings	317	519	504
Net interest expense	78	70	62
Other charges (income), net	13	20	(28)
Earnings from continuing operations before income taxes	226	429	470
Provision for income taxes from continuing operations	90	101	149
Earnings from continuing operations	136	328	321
Loss from discontinued operations, net of tax	0	0	(10)
Gain (loss) from disposal of discontinued operations, net of tax	0	18	(11)
Net earnings	136	346	300
Basic earnings per share
Earnings from continuing operations	1.88	4.36	3.89
Earnings (loss) from discontinued operations	$0	0.23	-0.26
Basic earnings per share	1.88	4.59	3.63
Diluted earnings per share
Earnings from continuing operations	1.85	4.31	3.84
Earnings (loss) from discontinued operations	$0	0.24	-0.26
Diluted earnings per share	1.85	4.31	3.84
Comprehensive Income
Net Earnings	136	346	300
Other comprehensive income (loss), net of tax
Change in cumulative translation adjustment	17	(97)	36
Change in unrecognized gains (losses) and prior service credits for benefit plans	(74)	(232)	106
Change in unrealized gains on derivative instruments	7	23	3
Change in unrealized gains (losses) on investments	0	(1)	1
Total other comprehensive income (loss), net of tax	(50)	(307)	146
Comprehensive income	86	39	446
Retained Earnings
Retained earnings at beginning of period	2,563	2,349	2,186
Net Earnings	136	346	300
Cash dividends declared	(128)	(132)	(145)
Effect of adoption of accounting for uncertain income tax positions	0	0	8
Retained Earnings at End of Period	$2,571	$2,563	$2,349

CONSOLIDATED STATEMENTS OF FINA

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (USD $)
In Millions	Dec. 31, 2009	Dec. 31, 2008
Current Assets
Cash and cash equivalents	$793	$387
Trade receivables, net	277	275
Miscellaneous receivables	102	79
Inventories	531	637
Other current assets	32	45
Total current assets	1,735	1,423
Properties
Properties and equipment at cost	8,525	8,527
Less: Accumulated depreciation	5,415	5,329
Net properties	3,110	3,198
Goodwill	315	325
Other noncurrent assets	355	335
Total assets	5,515	5,281
Current liabilities
Payables and other current liabilities	800	819
Borrowings due within one year	0	13
Total current liabilities	800	832
Long-term borrowings	1,604	1,442
Deferred income tax liabilities	258	106
Post-employment obligations	1,221	1,246
Other long-term liabilities	119	102
Total liabilities	4,002	3,728
Stockholders' equity
Common stock	1	1
Additional paid-in capital	661	638
Retained earnings	2,571	2,563
Accumulated other comprehensive loss	(385)	(335)
Treasury stock	1,335	1,314
Total stockholders' equity	1,513	1,553
Total liabilities and stockholders' equity	$5,515	$5,281

Paranthetical Data To The Conso

Paranthetical Data To The Consolidated Statements Of Financial Position (USD $)
	Dec. 31, 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	94,775,064	94,495,860
Treasury Stock, Shares	22,389,696	22,031,357

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)
In Millions	12 Months Ended Dec. 31, 2009	12 Months Ended Dec. 31, 2008	12 Months Ended Dec. 31, 2007
Cash flows from operating activities
Net Earnings	$136	$346	$300
Adjustments to reconcile net earnings to net cash provided by (used in) operating activities:
Depreciation and amortization	274	267	327
Asset impairments charges	179	1	138
Gains on sale of assets	0	(14)	(8)
Provision (benefit) for deferred income taxes	185	(71)	(9)
Changes in operating assets and liabilities, net of effect of acquisitions and divestitures:
(Increase) decrease in trade receivables	2	261	(28)
(Increase) decrease in inventories	100	(95)	66
Increase (decrease) in trade payables	16	(211)	48
Increase (decrease) in liabilities for employee benefits and incentive pay	(141)	7	(55)
Other items, net	7	162	(47)
Net cash provided by operating activities	758	653	732
Cash flows from investing activities
Additions to properties and equipment	(310)	(634)	(518)
Proceeds from sale of assets and investments	30	337	202
Acquisitions of and investments in joint ventures	(68)	(38)	(40)
Additions to capitalized software	(8)	(10)	(11)
Other items, net	(13)	(31)	32
Net cash used in investing activities	(369)	(376)	(335)
Cash flows from financing activities
Net increase (decrease) in commercial paper, credit facility, and other borrowings	3	(7)	(5)
Proceeds from borrowings	248	0	0
Repayment of borrowings	(101)	(175)	(17)
Dividends paid to stockholders	(128)	(135)	(147)
Treasury stock purchases	(21)	(501)	(382)
Proceeds from stock option exercises and other items	17	39	103
Net cash provided by (used in) financing activities	18	(779)	(448)
Effect of exchange rate changes on cash and cash equivalents	(1)	1	0
Net change in cash and cash equivalents	406	(501)	(51)
Cash and cash equivalents at beginning of period	387	888	939
Cash and cash equivalents at end of period	$793	$387	$888

STATEMENT OF STOCKHOLDERS' EQUI

STATEMENT OF STOCKHOLDERS' EQUITY (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 at Dec. 31, 2006	$1		$448		$2,186		($174)		($432)		$2,029
Net Earnings	0		0		300		0		0		300
Effect of adoption of accounting for uncertain income tax positions	0		0		8		0		0		8
Cash dividends declared	0	[1]	0	[1]	(145)	[1]	0	[1]	0	[1]	(145)
Other Comprehensive Income (Loss)	0		0		0		146		0		146
Share-based Compensation Costs	0	[2]	18	[2]	0	[2]	0	[2]	0	[2]	18	[2]
Stock Option Exercises, Value	0		91		0		0		0		91
Other Items	0	[3]	16	[3]	0	[3]	0	[3]	1	[3]	17	[3]
Stock Repurchases	0		0		0		0		(382)		(382)
Stockholders Equity at Dec. 31, 2007	1		573		2,349		(28)		(813)		2,082
Net Earnings	0		0		346		0		0		346
Cash dividends declared	0	[1]	0	[1]	(132)	[1]	0	[1]	0	[1]	(132)
Other Comprehensive Income (Loss)	0		0		0		(307)		0		(307)
Share-based Compensation Costs	0	[2]	25	[2]	0	[2]	0	[2]	0	[2]	25
Stock Option Exercises, Value	0		35		0		0		0		35
Other Items	0	[3]	5	[3]	0	[3]	0	[3]	0	[3]	5
Stock Repurchases	0		0		0		0		(501)		(501)
Stockholders Equity at Dec. 31, 2008	1		638		2,563		(335)		(1,314)		1,553
Net Earnings	0		0		136		0		0		136
Cash dividends declared	0	[1]	0	[1]	(128)	[1]	0	[1]	0	[1]	(128)
Other Comprehensive Income (Loss)	0		0		0		(50)		0		(50)
Share-based Compensation Costs	0	[2]	19	[2]	0	[2]	0	[2]	0	[2]	19
Stock Option Exercises, Value	0		7		0		0		0		7
Other Items	0	[3]	(3)	[3]	0	[3]	0	[3]	0	[3]	(3)
Stock Repurchases	0		0		0		0		(21)		(21)
Stockholders Equity at Dec. 31, 2009	$1		$661		$2,571		($385)		($1,335)		$1,513
[1](1) Includes cash dividends paid and dividends declared, but unpaid. Also, includes the redemption of the outstanding preferred stock purchase rights.
[2](2) Includes the fair value of equity share-based awards recognized for share-based compensation.
[3](3) Includes 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 and other items.

Note 1. Significant Accounting

Note 1. Significant Accounting Policies
	12 Months Ended Dec. 31, 2009 USD / shares
Notes To Financial Statements [Abstract]
Significant Accounting Policies	1. SIGNIFICANT ACCOUNTING POLICIES Financial Statement Presentation The consolidated financial statements of Eastman Chemical Company and subsidiaries ("Eastman" or the "Company") are prepared in conformity with accounting principles generally accepted 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.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 December 31, 2009, the date of the financial statements, through February 24, 2010, 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. Cash and Cash Equivalents Cash and cash equivalents include cash, time deposits, and readily marketable securities with maturities of three months or less at the purchase date. Fair Value Measurements On January 1, 2008, the Company began recording financial assets and liabilities subject to recurring 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.On January 1, 2009 the Company began recording non-recurring financial as well as all non-financial assets and liabilities subject to fair value measurement under the same principles.These fair value principles prioritize valuation inputs across three broad levels.Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities.Level 2 inputs are quoted prices for similar assets and liabilities in active markets or inputs that are observable for the asset or liability, either directly or indirectly through market corroboration, for substantially the full term of the financial instrument.Level 3 inputs are unobservable inputs based on the Company's assumptions used to measure assets and liabilities at fair value.An asset or liability's classification within the various levels is determined based on the lowest level input that is significant to the fair value measurement. Accounts Receivable and Allowance for Doubtful Accounts Trade accounts receivable are recorded at the invoiced amount and do not bear interest.The Company maintains allowances for doubtful accounts for estimated losses resulting from the inability of its customers to make required payments.The allowances are based on the number of days an individual receivable is delinquent and management's regular assessment of the financial condition of the Company's

Note 2. Asset Impairments and R

Note 2. Asset Impairments and Restructuring Charges, Net
	12 Months Ended Dec. 31, 2009 USD / shares
Notes To Financial Statements [Abstract]
Asset Impairments and Restructuring Charges Net	2. ASSET IMPAIRMENTS AND RESTRUCTURING CHARGES, NET Asset impairment and restructuring charges totaled $200 million during 2009, consisting primarily of $179 million in asset impairments related to the discontinuance of the Beaumont, Texas industrial gasification project and $23 million, net, for severance resulting from a reduction in force.Restructuring charges totaled $46 million during 2008.Impairments and restructuring charges totaled $112 million during 2007. The following table summarizes the 2009, 2008, and 2007 charges by segment: (Dollars in millions) 2009 2008 2007 CASPI: Severance charges $ 5 $ -- $ (1 ) Site closure and restructuring costs (2 ) -- -- Fibers: Severance charges 4 -- -- PCI: Severance charges 6 8 (1 ) Site closure and restructuring costs -- 14 -- Performance Polymers: Fixed asset impairments -- -- 118 Severance charges 4 2 (5 ) Site closure and restructuring costs -- 22 -- Specialty Plastics: Fixed asset impairments -- -- 2 Severance charges 4 -- (2 ) Site closure and restructuring costs -- -- 1 Other: Fixed asset impairments 133 -- -- Intangible asset and goodwill impairments 46 -- 2 Site closure and restructuring costs -- -- (2 ) Total Eastman Chemical Company Fixed asset impairments $ 133 $ -- $ 120 Intangible asset and goodwill impairments 46 -- 2 Severance charges 23 10 (9 ) Site closure and restructuring costs (2 ) 36 (1 ) Total Eastman Chemical Company $ 200 $ 46 $ 112 2009 The Company announced during fourth quarter 2009, its decision to discontinue the Beaumont, Texas industrial gasification project due to a number of factors, including high capital costs, the current and projected reduced spread between natural gas and oil and petroleum coke prices, and continued uncertainty regarding U.S. energy and environmental public policy.As a result of this decision the Company recorded an asset impairment of $179 million in fourth quarter 2009, reducing the projects book value to $56 million for assets the Company expects to recover.For the purpose of calculating an impairment, the fair value of these assets was determined using Level 2 and Level 3 inputs as defined in the fair value hierarchy.Of the $56 million, $8 million related to certain environmental credits classified as a Level 2, using observable prices for similar assets, and $48 million related to land and tangible assets is classified as a Level 3, based on various inputs, including real estate appraisals and unobservable market information for similar assets based on managements experience, includi

Note 3. Inventories

Note 3. Inventories
	12 Months Ended Dec. 31, 2009 USD / shares
Notes To Financial Statements [Abstract]
Inventories	3. INVENTORIES December 31, (Dollars in millions) 2009 2008 At FIFO or average cost (approximates current cost) Finished goods $ 547 $ 634 Work in process 168 200 Raw materials and supplies 262 328 Total inventories 977 1,162 LIFO Reserve (446 ) (525 ) Total inventories $ 531 $ 637 Inventories valued on the LIFO method were approximately 75 percent of total inventories for 2009 and 2008, respectively.

Note 4. Properties and Accumula

Note 4. Properties and Accumulated Depreciation
	12 Months Ended Dec. 31, 2009 USD / shares
Notes To Financial Statements [Abstract]
Properties And Accumulated Depreciation	4. PROPERTIES AND ACCUMULATED DEPRECIATION December 31, (Dollars in millions) 2009 2008 Properties Land $ 78 $ 79 Buildings and building equipment 849 803 Machinery and equipment 7,456 7,190 Construction in progress 142 455 Properties and equipment at cost $ 8,525 $ 8,527 Less:Accumulated depreciation 5,415 5,329 Net properties $ 3,110 $ 3,198 Cumulative construction-period interest of $208 million and $204 million, reduced by accumulated depreciation of $127 million and $130 million, is included in net properties at December 31, 2009 and 2008, respectively.During fourth quarter 2009, the Company recognized asset impairments of $133 million related to the Beaumont, Texas industrial gasification project.For additional information see Note 2, "Asset Impairments and Restructuring Charges, Net". Interest capitalized during 2009, 2008, and 2007 was $14 million, $12 million, and $10 million, respectively. Depreciation expense related to continuing operations was $262 million, $256 million, and $313 million for 2009, 2008, and 2007, respectively.Depreciation expense for the year ended December 31, 2008 included $9 million of accelerated depreciation costs related to restructuring decisions in association with cracking units in Longview, Texas, and higher cost PET polymer intermediates assets in Columbia, South Carolina.The accelerated depreciation at Longview, Texas and the transformation at Columbia, South Carolina were completed in 2008.The Company shut down the first of three cracking units as part of the stage phase-out of its three oldest cracking units in Longview, Texas in fourth quarter 2007.Shutdown timing for the remaining two units will depend on feedstock and olefin market conditions.

Note 5. Goodwill and Other Inta

Note 5. Goodwill and Other Intangible Assets
	12 Months Ended Dec. 31, 2009 USD / shares
Notes To Financial Statements [Abstract]
Goodwill And Other Intangible Assets	5. GOODWILL AND OTHER INTANGIBLE ASSETS Changes in the carrying amount of goodwill follow: (Dollars in millions) CASPI Segment Other Segments Total Reported balance at December 31, 2007 $ 310 $ 6 $ 316 Additions -- 10 10 Currency translation adjustments (1 ) -- (1 ) Reported balance at December 31, 2008 $ 309 $ 16 $ 325 Impairment -- (10 ) (10 ) Reported balance at December 31, 2009 $ 309 $ 6 $ 315 Goodwill and indefinite-lived intangibles primarily consist of goodwill in the Coatings, Adhesives, Specialty Polymers and Inks ("CASPI") segment.The Company also had recorded goodwill and other intangibles associated with the Beaumont, Texas industrial gasification project.In fourth quarter 2009, the Company announced the discontinuance of the Beaumont, Texas industrial gasification project, which resulted in an impairment of the Beaumont industrial gasification project goodwill and other intangible assets. Included in the reported balance for goodwill are accumulated impairment losses of $44 million at December 31, 2009 and $34 million at December 31, 2008 and 2007. Intangible assets include developed technology, customer lists, patents and patent licenses, and trademarks with a net book value of $43 million in 2009 and $79 million in 2008.Other intangible assets are included in other noncurrent assets on the balance sheet.

Note 6. Equity Investments

Note 6. Equity Investments
	12 Months Ended Dec. 31, 2009 USD / shares
Notes To Financial Statements [Abstract]
Equity Investments	6. EQUITY INVESTMENTS Eastman has a 50 percent interest in and serves as the operating partner in Primester, a joint venture which manufactures cellulose acetate at Eastman's Kingsport, Tennessee plant.This investment is accounted for under the equity method. Eastman's net investment in the joint venture at December 31, 2009 and 2008 was approximately $36 million and $39 million, respectively, which was comprised of the recognized portion of the venture's accumulated deficits, long-term amounts owed to Primester, and a line of credit from Eastman to Primester. Such amounts are included in other noncurrent assets. Eastman owns a 50 percent interest in Nanjing Yangzi Eastman Chemical Ltd. ("Nanjing"), a company which manufactures EastotacTM hydrocarbon tackifying resins for the adhesives market.This joint venture is accounted for under the equity method and is included in other noncurrent assets.At December 31, 2009 and 2008, the Company's investment in Nanjing was approximately $6 million and $5 million, respectively.

Note 7. Payables and Other Curr

Note 7. Payables and Other Current Liabilities
	12 Months Ended Dec. 31, 2009 USD / shares
Notes To Financial Statements [Abstract]
Payable and Other Current Liabilities	7. PAYABLES AND OTHER CURRENT LIABILITIES December 31, (Dollars in millions) 2009 2008 Trade creditors $ 427 $ 390 Accrued payrolls, vacation, and variable-incentive compensation 125 129 Accrued taxes 33 41 Post-employment obligations 61 60 Interest payable 32 30 Bank overdrafts 6 4 Other 116 165 Total payables and other current liabilities $ 800 $ 819 The current portion of post-employment obligations is an estimate of current year payments in excess of plan assets.

Note 8. Borrowings

Note 8. Borrowings
	12 Months Ended Dec. 31, 2009 USD / shares
Notes To Financial Statements [Abstract]
Borrowings	8. BORROWINGS December 31, (Dollars in millions) 2009 2008 Borrowings consisted of: 7% notes due 2012 $ 152 $ 154 6.30% notes due 2018 205 207 5.5% notes due 2019 250 -- 7 1/4% debentures due 2024 497 497 7 5/8% debentures due 2024 200 200 7.60% debentures due 2027 298 298 Credit facility borrowings -- 84 Other 2 15 Total borrowings 1,604 1,455 Borrowings due within one year -- (13 ) Long-term borrowings $ 1,604 $ 1,442 At December 31, 2009, the Company had a $700 million revolving credit facility (the "Credit Facility") in two tranches, with $125 million expiring in 2012 and $575 million expiring in 2013.Borrowings under the Credit Facility are subject to interest at varying spreads above quoted market rates and a facility fee is paid on the total commitment.In addition, the Credit Facility contains a number of customary covenants and events of default, including the maintenance of certain financial ratios.The Company was in compliance with all such covenants for all periods presented.At December 31, 2009, the Company had no outstanding borrowings under the Credit Facility.At December 31, 2008, the Company had both the Credit Facility and a 60 million euro credit facility, with borrowings totaling $84 million at an effective interest rate of 3.74 percent. On November 2, 2009, the Company issued notes in the principal amount of $250 million due 2019 and bearing interest at 5.50% per annum.Proceeds from the sale of notes, net of approximately $2 million in transaction fees, were $248 million. At December 31, 2009 the Company had no outstanding interest rate swaps.In December 2008, outstanding interest rate swaps were settled with an unrecognized gain of $36 million which will be amortized into interest expense over the remaining term of the respective bonds resulting in effective interest rates of 5.22 percent for the 7% notes due in 2012 and 4.14 percent for the 6.30% notes due in 2018.

Note 9. Fair Value of Financial

Note 9. Fair Value of Financial Instruments
	12 Months Ended Dec. 31, 2009 USD / shares
Notes To Financial Statements [Abstract]
Fair Value Financial Instruments	9. FAIR VALUE OF FINANCIAL INSTRUMENTS Fair Value of Borrowings The fair value for fixed-rate borrowings is based on current interest rates for comparable securities.The Company's floating-rate borrowings approximate fair value. December 31, 2009 December 31, 2008 (Dollars in millions) Recorded Amount Fair Value Recorded Amount Fair Value Long-term borrowings $ 1,604 $ 1,656 $ 1,442 $ 1,369 Fair Value Measurements For additional information on fair value measurement,see Note 1, "Significant Accounting Policies". The following chart shows the financial assets and liabilities valued on a recurring basis. (Dollars in millions) Fair Value Measurements at December 31, 2009 Description December 31, 2009 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Derivative Assets $ 52 $ -- $ 52 $ -- Derivative Liabilities (21 ) -- (21 ) -- $ 31 $ -- $ 31 $ -- (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. Fair Value Hedges Fair value hedges are defined by accounting principles generally accepted in the U.S. ("GAAP") 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.For derivative instruments that are designated and qualify as a fair value hedge, the gain or loss on the derivative as well as the offsetting loss or gain on the hedged item attributable to the hedged risk are recognized in current earnings. As of December 31, 2009, the Company had no active fair value hedges. Cash Flow Hedges Cash flow hedges are defined by GAAP as derivative instruments designated as and used to hedge the exposure to variability in expected future cash

Note 10. Retirement Plans

Note 10. Retirement Plans
	12 Months Ended Dec. 31, 2009 USD / shares
Notes To Financial Statements [Abstract]
Retirement Plans	10. RETIREMENT PLANS Eastman maintains defined benefit pension plans that provide eligible employees with retirement benefits.Prior to 2000, benefits were calculated using a defined benefit formula based on age, years of service, and the employee's final average compensation as defined in the plans.Effective January 1, 2000, the Company's U.S. defined benefit pension plan, the Eastman Retirement Assistance 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 defined benefit pension plan uses a pension equity formula based on age, years of service, and final average compensation 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 the U.S. defined benefit pension plans. Benefits are paid to employees from trust funds.Contributions to the plan are made as permitted by laws and regulations.The pension trust fund does 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. Below is a summary balance sheet of the change in plan assets during 2009 and 2008, the funded status of the plans, amounts recognized in the Consolidated Statements of Financial Position, and a summary of amounts recognized in accumulated other comprehensive income. The assumptions used to develop the projected benefit obligation for the Company's significant U.S. and non-U.S. defined benefit pension plans are also provided in the following tables. Summary Balance Sheet (Dollars in millions) 2009 2008 Change in projected benefit obligation: Benefit obligation, beginning of year $ 1,423 $ 1,470 Service cost 42 46 Interest cost 87 88 Actuarial loss 72 -- Plan amendments and other -- (22 ) Effect of currency exchange 17 (53 ) Benefits paid (133 ) (106 ) Benefit obligation, end of year $ 1,508 $ 1,423 Change in plan assets: Fair value of plan assets, beginning of year $ 930 $ 1,346 Actual return on plan assets 76 (290 ) Effect of currency exchange 14 (41 ) Company contributions 200 21 Benefits paid (133 ) (106 ) Fair value of plan assets, end of year $ 1,087 $ 930 Funded Status at end of year $ (421 ) $ (493 ) Amounts recognized in the Consolidated Statements of Financial Position consist of: Current liability $ (4 ) $ (3 ) Noncurrent liability (417 ) (490 ) N

Note 11. Commitments

Note 11. Commitments
	12 Months Ended Dec. 31, 2009 USD / shares
Notes To Financial Statements [Abstract]
Commitments Disclosure	11. COMMITMENTS Purchase Obligations and Lease Commitments At December 31, 2009, the Company had various purchase obligations totaling approximately $1.1 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 $104 million over a period of several years.Of the total lease commitments, approximately 15 percent relate to machinery and equipment, including computer and communications equipment and production equipment; approximately 45 percent relate to real property, including office space, storage facilities and land; and approximately 40 percent relate to railcars.Rental expense, net of sublease income, was approximately $35 million, $44 million, and $56 million in 2009, 2008, and 2007, respectively. The obligations described above are summarized in the following table: (Dollars in millions) Payments Due For Period Notes and Debentures Credit Facility Borrowings and Other Interest Payable Purchase Obligations Operating Leases Total 2010 $ -- $ -- $ 111 $ 257 $ 25 $ 393 2011 2 -- 111 248 25 386 2012 152 -- 106 242 17 517 2013 -- -- 99 227 12 338 2014 -- -- 99 33 10 142 2015 and beyond 1,450 -- 889 85 15 2,439 Total $ 1,604 $ -- $ 1,415 $ 1,092 $ 104 $ 4,215 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 December 31, 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 $228 million and $339 million in 2009 and 2008, respectively.The securitization program was fully drawn at December 31, 2009 and renewed in July 2009. In first quarter 2010, the Company will adopt new accounting guidance on the transfer of financial assets.Outstanding accounts receivable that were previously treated as sold and removed from the balance sheet will be included in trade receivables, net on the balance sheet.Going forward, any amounts outstanding under the accou

Note 12. Environmental Matters

Note 12. Environmental Matters
	12 Months Ended Dec. 31, 2009 USD / shares
Notes To Financial Statements [Abstract]
Environmental Matters	12. 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 will 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."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 total reserve for environmental contingencies was $42 million and $41 million at December 31, 2009 and 2008, respectively. Estimated future environmental expenditures for remediation costs range from the minimum or best estimate of $10 million to the maximum of $20 million at December 31, 2009.The best estimate accrued to date over the facilities' estimated useful lives for asset retirement obligation costs is $32 million at December 31, 2009. For additional information, refer to Note 25, "Reserve Rollforwards."

Note 13. Legal Matters

Note 13. Legal Matters
	12 Months Ended Dec. 31, 2009 USD / shares
Notes To Financial Statements [Abstract]
Legal Matters	13. LEGAL MATTERS General 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.

Note 14. Stockholders' Equity

Note 14. Stockholders' Equity
	1/1/2009 - 12/31/2009 USD / shares
Notes To Financial Statements [Abstract]
Stockholders' Equity	14. STOCKHOLDERS' EQUITY A reconciliation of the changes in stockholders' equity for 2007, 2008, and 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, 2006 1 448 2,186 (174 ) (432 ) 2,029 Net Earnings -- -- 300 -- -- 300 Effect of adoption of accounting for uncertain income tax positions -- -- 8 -- -- 8 Cash Dividends Declared (1) -- -- (145 ) -- -- (145 ) Other Comprehensive Income -- -- -- 146 -- 146 Share-based Compensation Costs (2) -- 18 -- -- -- 18 Stock Option Exercises -- 91 -- -- -- 91 Other (3) -- 16 -- -- 1 17 Stock Repurchases -- -- -- -- (382 ) (382 ) Balance at December 31, 2007 1 573 2,349 (28 ) (813 ) 2,082 Net Earnings -- -- 346 -- -- 346 Cash Dividends Declared (1) -- -- (132 ) -- -- (132 ) Other Comprehensive Loss -- -- -- (307 ) -- (307 ) Share-based Compensation Costs (2) -- 25 -- -- -- 25 Stock Option Exercises -- 35 -- -- -- 35 Other (3) -- 5 -- -- -- 5 Stock Repurchases -- -- -- -- (501 ) (501 ) Balance at December 31, 2008 1 638 2,563 (335 ) (1,314 ) 1,553 Net Earnings -- -- 136 -- -- 136 Cash Dividends Declared (1) -- -- (128 ) -- -- (128 ) Other Comprehensive Loss -- -- -- (50 ) -- (50 ) Share-based Compensation Costs(2) -- 19 -- -- -- 19 Stock Option Exercises -- 7 -- -- -- 7 Other (3) -- (3 ) -- -- -- (3 ) Stock Repurchases -- -- -- -- (21 ) (21 ) Balance at December 31, 2009 1 661 2,571 (385 ) (1,335 ) 1,513 (1) Includes cash dividends paid and dividends declared, but unpaid.Also, includes the redemption of the outstanding preferred stock purchase rights. (2) Includes the fair value of equity share-based awards recognized for share-based compensation. (3) Includes 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 and other items. The Company is authorized to issue 400 million sha

Note 15. Share Based Compensati

Note 15. Share Based Compensation Plans and Awards
	12 Months Ended Dec. 31, 2009 USD / shares
Notes To Financial Statements [Abstract]
Share Based Compensation Awards	15. SHARE-BASED COMPENSATION PLANS AND AWARDS 2007 Omnibus Long-Term Compensation Plan Eastman's 2007 Omnibus Long-Term Compensation Plan ("2007 Omnibus Plan") was approved by stockholders at the May 3, 2007 Annual Meeting of Stockholders and shall remain in effect until its fifth anniversary.The 2007 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 2007 Omnibus Plan, the aggregate number of shares reserved and available for issuance is 4.1 million.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 2007 Omnibus Plan and previous plans, the form of awards have included:restricted stock and restricted stock units, stock options, stock appreciation rights ("SARs"), and performance shares.The 2007 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. 2008 Director Long-Term Compensation Subplan Eastman's 2008 Director Long-Term Compensation Subplan ("2008 Directors' Subplan"), a component of the 2007 Omnibus Plan, remains in effect until terminated by the Board of Directors or the earlier termination of the 2007 Omnibus Plan.The 2008 Directors' Subplan provides for structured awards of restricted shares to non-employee members of the Board of Directors.Restricted shares awarded under the 2008 Directors' Subplan are subject to the same terms and conditions of the 2007 Omnibus Plan.The 2008 Directors' Subplan does not constitute a separate source of shares for grant of equity awards and all shares awarded are part of the 4.1 million shares authorized by the 2007 Omnibus Plan.Shares of restricted stock are granted upon 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. The Company is authorized by the Board of Directors under the 2007 Omnibus Plan and 2008 Directors' Subplan to provide grants to employees and non-employee members of the Board of Directors.It has been the Company's practice to issue new shares rather than treasury shares for equity awards that require payment by the issuance of common stock and to withhold or accept back shares awarded to cover the income taxes of employee participants.Shares of non-employee directors are not withheld or acquired for the withholding of their income taxes.Shares of unrestricted common stock owned by specified senior management level employees are accepted by the Company to pay for the exercise price of stock options in accordance with the terms and conditions of their awards. For 2009, 2008, and 2007, total share-based compensation expense (before tax) of approximately $20 million, $21 milli

Note 16. Divestitures

Note 16. Divestitures
	12 Months Ended Dec. 31, 2009 USD / shares
Notes To Financial Statements [Abstract]
Divestitures	16. DIVESTITURES Certain Businesses and Product Lines and Related Assets in the Performance Polymers Segment On November 30, 2007, the Company sold its PET polymers production facilities in Mexico and Argentina and the related businesses for net proceeds of approximately $160 million and an earn-out provision based on certain future sales amounts.The Company continued to produce certain intermediates products for the buyer under supply agreements through 2008.In addition, the Company indemnified the buyer against certain liabilities primarily related to taxes, legal matters, environmental matters, and other representations and warranties.The results related to the Mexico and Argentina facilities are not presented as discontinued operations due to continuing involvement of the Company's Performance Polymers segment in the region including certain intermediates products sales to the divested sites.During 2007, the Company recorded asset impairments and restructuring charges of approximately $115 million related to the Mexico and Argentina PET sites.

Note 17. Discontinued Operation

Note 17. Discontinued Operations
	12 Months Ended Dec. 31, 2007 USD / shares
Notes To Financial Statements [Abstract]
Discontinued Operations	17. DISCONTINUED OPERATIONS In first quarter 2008, the Company sold its 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.During first quarter 2007, the Company recorded asset impairments and restructuring charges of $21 million for its PET polymers manufacturing facility in Spain, which it sold in second quarter 2007.Net proceeds from the sale of the Spain site were approximately $40 million.In addition, the Company indemnified the buyer against certain liabilities primarily related to taxes, legal matters, environmental matters, and other representations and warranties. The manufacturing facilities in the Netherlands, United Kingdom, and Spain, and related businesses represent the Company's European PET business and qualify as a component of an entity under GAAP 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 all periods 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 are 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: For years ended December 31, (Dollars in millions) 2009 2008 2007 Sales $ -- $ 169 $ 542 Earnings (loss) before income taxes -- 6 (9 ) Loss from discontinued operations, net of tax -- -- (10 ) Gain (loss) on disposal, net of tax -- 18 (11 )

Note 18. Other Operating Income

Note 18. Other Operating Income, Net
	12 Months Ended Dec. 31, 2009 USD / shares
Notes To Financial Statements [Abstract]
Other Operating Income, Net	18. OTHER OPERATING INCOME, NET (Dollars in millions) 2009 2008 2007 Other operating income, net $ -- $ (16 ) $ -- Other operating income, net for 2008 reflected a gain of $16 million from the sale of certain mineral rights at an operating manufacturing site.

Note 19. Other Charges

Note 19. Other Charges (Income), Net
	12 Months Ended Dec. 31, 2009 USD / shares
Notes To Financial Statements [Abstract]
Other Charges (Income), Net	19. OTHER CHARGES (INCOME), NET (Dollars in millions) 2009 2008 2007 Foreign exchange transactions losses (gains) $ 5 $ 17 $ (11 ) Investments losses (gains) 5 6 (12 ) Other, net 3 (3 ) (5 ) Other charges (income), net $ 13 $ 20 $ (28 ) Included in other charges (income), net are gains or losses on foreign exchange transactions, results from equity investments, gains or losses on business venture investments, other non-operating income or charges related to HDC, gains from the sale of non-operating assets, certain litigation costs, fees on securitized receivables, other non-operating income, and other miscellaneous items. Investment losses (gains) for 2009, 2008, and 2007 included gains of $4 million in each year resulting from a favorable decision in 2006 of the U.S. Department of the Army to reimburse post-employment benefits being provided to retirees of HDC, a wholly owned subsidiary.This gain reflected a portion of the unrecognized gain resulting from the reimbursement decision that will be amortized into earnings over future periods.

Note 20. Income Taxes

Note 20. Income Taxes
	12 Months Ended Dec. 31, 2009 USD / shares
Notes To Financial Statements [Abstract]
Provision for Income Taxes	20. INCOME TAXES Components of earnings (loss) before income taxes and the provision (benefit) for U.S. and other income taxes from continuing operations follow: (Dollars in millions) 2009 2008 2007 Earnings (loss) from continuing operations before income taxes United States $ 165 $ 355 $ 489 Outside the United States 61 74 (19 ) Total $ 226 $ 429 $ 470 Provision (benefit) for income taxes on earnings from continuing operations United States Current $ (101 ) $ 88 $ 173 Deferred 165 7 (24 ) Outside the United States Current 17 16 (30 ) Deferred 1 (1 ) 21 State and other Current (12 ) 2 10 Deferred 20 (11 ) (1 ) Total $ 90 $ 101 $ 149 The following represents the deferred tax charge (benefit) recorded as a component of accumulated other comprehensive income (loss) in stockholders' equity. (Dollars in millions) 2009 2008 2007 Unrecognized gains (losses) and prior service credits for benefit plans $ (47 ) $ (142 ) $ 56 Cumulative translation adjustment 2 16 5 Unrealized gains (losses) on cash flow hedges 4 14 3 Total $ (41 ) $ (112 ) $ 64 Total income tax expense (benefit) included in the consolidated financial statements was composed of the following: (Dollars in millions) 2009 2008 2007 Continuing operations $ 90 $ 101 $ 149 Discontinued operations -- (12 ) (3 ) Other comprehensive income (41 ) (112 ) 64 Total $ 49 $ (23 ) $ 210 Differences between the provision for income taxes on earnings from continuing operations and income taxes computed using the U.S. federal statutory income tax rate follow: (Dollars in millions) 2009 2008 2007 Amount computed using the statutory rate $ 79 $ 150 $ 165 State income taxes, net 5 (6 ) 8 Foreign rate variance (2 ) (4 ) (3 ) Domestic manufacturing deduction 5 (7 ) (11 ) ESOP dividend payout (1 ) (1 ) (1 ) Capital loss benefits -- (12 ) (3 ) Change in reserves for tax contingencies (5 ) (8 ) (2 ) General business credits 7 (16 ) (5 ) Other 2 5 1 Provision for income taxes $ 90 $ 101 $ 149 The 2009 effective tax rate reflects a $11 million tax charge associated with the recapture of gasification investment tax credits and a $7 million tax charge associated with a change in accounting method for tax purposes to accelerate timing of deductions for manufacturing repairs expense and a $5 million tax benefit from the reversal of tax reserves due to the expiration of the relevant statute of limitations. The 2

Note 21. Supplemental Cash Flow

Note 21. Supplemental Cash Flow Information
	12 Months Ended Dec. 31, 2009 USD / shares
Notes To Financial Statements [Abstract]
Supplemental Cash Flow Information	21. SUPPLEMENTAL CASH FLOW INFORMATION Included in the line item "Other items, net" of the "Cash flows from operating activities" section of the Consolidated Statements of Cash Flows are specific changes to certain balance sheet accounts as follows: (Dollars in millions) 2009 2008 2007 Current assets $ (2 ) $ 113 $ (29 ) Other assets 27 18 10 Current liabilities (23 ) 10 (33 ) Long-term liabilities and equity 5 21 5 Total $ 7 $ 162 $ (47 ) The above changes included transactions such as monetized positions from raw material and energy, currency, and certain interest rate hedges, prepaid insurance, miscellaneous deferrals, accrued taxes, and value-added taxes.The 2008 changes in current assets were primarily related to the monetization of interest rate, commodity, and foreign exchange hedges during 2008.Monetizations in 2009 and 2007 were significantly less than in 2008. Derivative financial instruments treated as hedges and related gains and losses are included in cash flows from operating activities. Non-cash portion of losses from the Company's equity investments was $5 million and $9 million for 2009 and 2008, respectively.Non-cash portions of earnings from the Company's equity investments in 2007 were $3 million. (Dollars in millions) 2009 2008 2007 Cash paid for interest and income taxes is as follows: Interest, net of amounts capitalized $ 82 $ 96 $ 108 Income taxes paid (refunded) (71 ) 150 173

Note 22. Segment Information

Note 22. Segment Information
	12 Months Ended Dec. 31, 2009 USD / shares
Notes To Financial Statements [Abstract]
Segment Information	22. SEGMENT INFORMATION The Company's products and operations are managed and reported in five reportable operating segments, consisting of the CASPI segment, the Fibers segment, the PCI segment, the Performance Polymers segment, and the Specialty Plastics segment. The CASPI segment manufactures raw materials, additives, and specialty polymers, primarily for the paints and coatings, inks, and adhesives markets.The CASPI segment's products consist of liquid vehicles, coatings additives, and hydrocarbon resins and rosins and rosin esters.Liquid vehicles, such as ester, ketone and alcohol solvents, maintain the binders in liquid form for ease of application.Coatings additives, such as cellulosic polymers, TexanolTM ester alcohol and chlorinated polyolefins, enhance the rheological, film formation and adhesion properties of paints, coatings, and inks.Hydrocarbon resins and rosins and rosin esters are used in adhesive, ink, and polymers compounding applications.Additional products are developed in response to, or in anticipation of, new applications where the Company believes significant value can be achieved. The Fibers segment manufactures EstronTM acetate tow and EstrobondTM triacetin plasticizers which are used primarily in cigarette filters; EstronTM and ChromspunTM acetate yarns for use in apparel, home furnishings and industrial fabrics; acetate flake for use by other acetate tow producers; and acetyl chemicals. The PCI segment manufactures diversified products that are used in a variety of markets and industrial and consumer applications, including chemicals for agricultural intermediates, fibers, food and beverage ingredients, photographic chemicals, pharmaceutical intermediates, polymer compounding, and chemical manufacturing intermediates.As part of the sale of the Performance Polymers segment's polyethylene business, the Company has agreed to supply ethylene to the buyer.These sales of ethylene, previously used internally as a raw material, are reported in the PCI segment. The Performance Polymers segment manufactures and supplies PET intermediates and polymers for use primarily in beverage and food packaging, including carbonated soft drinks, water, juices, sports drinks, beer, and food containers that are suitable for both conventional and microwave oven use.Other end-uses for PET packaging include bottles for non-food items such as household cleaners and clear, disposable clamshell trays such as those used in delis and salad bars.In 2007, the Company's PET manufacturing facility based on IntegRexTM technology became fully operational and produces ParaStarTM, the next generation PET resins.During fourth quarter 2007, the Company sold its Mexico and Argentina PET manufacturing sites. The Specialty Plastics segment's key products include engineering and specialty polymers, specialty film and sheet products, and packaging film and fiber products.Included in these are highly specialized copolyesters and cellulosic plastics that possess unique performance properties for value-added end uses such as appliances, store fixtures and displays, building and construction, electronic packaging, medical packaging, pers

Note 23. Quarterly Sales and Ea

Note 23. Quarterly Sales and Earnings Data
	12 Months Ended Dec. 31, 2009 USD / shares
Notes To Financial Statements [Abstract]
Quarterly Sales And Earnings Data: Unaudited	23. QUARTERLY SALES AND EARNINGS DATA UNAUDITED (Dollars in millions, except per share amounts) First Quarter Second Quarter Third Quarter Fourth Quarter 2009 Sales $ 1,129 $ 1,253 $ 1,337 $ 1,328 Gross profit 179 260 328 286 Asset impairment and restructuring charges, net 26 (3 ) -- 177 Earnings (loss) from continuing operations 2 65 101 (32 ) Net earnings (loss) 2 65 101 (32 ) Earnings (loss) from continuing operations per share (1) Basic $ 0.03 $ 0.89 $ 1.40 $ (0.44 ) Diluted $ 0.03 $ 0.89 $ 1.38 $ (0.44 ) Net earnings (loss) per share (1) Basic $ 0.03 $ 0.89 $ 1.40 $ (0.44 ) Diluted $ 0.03 $ 0.89 $ 1.38 $ (0.44 ) (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 2008 Sales $ 1,727 $ 1,834 $ 1,819 $ 1,346 Gross profit 337 321 322 146 Asset impairment and restructuring charges, net 17 3 2 24 Other operating income -- -- -- (16 ) Earnings (loss) from continuing operations 115 115 100 (2 ) Gain from disposal of discontinued operations, net of tax 18 -- -- -- Net earnings (loss) 133 115 100 (2 ) Earnings (loss) from continuing operations per share (1) Basic $ 1.47 $ 1.51 $ 1.35 $ (0.03 ) Diluted $ 1.46 $ 1.48 $ 1.33 $ (0.03 ) Earnings from discontinued operations per share (1)(2) Basic $ 0.23 $ -- $ -- $ -- Diluted $ 0.22 $ -- $ -- $ -- Net earnings (loss) per share (1) Basic $ 1.70 $ 1.51 $ 1.35 $ (0.03 ) Diluted $ 1.68 $ 1.48 $ 1.33 $ (0.03 ) (1) Each quarter is calculated as a discrete period; the sum of the four quarters may not equal the calculated full year amount. (2) In first quarter 2008, the Company sold its PET polymers and PTA production facilities in the Netherlands and its PET production facility in the United Kingdom and related businesses.

Note 24. Recently Issued Accoun

Note 24. Recently Issued Accounting Standards
	12 Months Ended Dec. 31, 2009 USD / shares
Notes To Financial Statements [Abstract]
Description of New Accounting Pronouncements Not yet Adopted	24. RECENTLY ISSUED ACCOUNTING STANDARDS In June 2009, the Financial Accounting Standards Board ("FASB") issued new guidance related to the transfers of financial assets.The new guidance 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 transferor's continuing involvement in transferred financial assets.This statement is effective for all Company financial asset transfers occurring on or after January 1, 2010.The Company has concluded that this new guidance will impact the Company's consolidated financial position and cash flows upon adoption in first quarter 2010.Prior to adoption of the new accounting guidance, the transfer of accounts receivable under the accounts receivable securitization program was accounted for as a sale which resulted in increased cash from operations at inception of the program in 1999. The program has been consistently utilized every year since 2000 and, therefore, has had no impact on cash from operations since that time. Going forward, any future transfers of accounts receivable will be treated as secured borrowings in the Statements of Financial Position.These secured borrowings will be reflected as cash from financing activities in the Statements of Cash Flows.The adoption of the new guidance, regardless of whether the Company continues to transfer accounts receivable subsequent to December 31, 2009, will result in an increase in accounts receivable of $200 million in the Statements of Financial Position and a corresponding decrease in cash flows from operations in the Statements of Cash Flows for the quarter ending March 31, 2010. In June 2009, the FASB issued new guidance on the consolidation of variable interest entities.The new guidance addresses improvements to 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 for all variable interest entities the Company is involved with on or after January 1, 2010.The Company has concluded that this new guidance will not have a materialimpact on the Company's consolidated financial position, liquidity, or results of operations upon adoption.

Note 25. Reserve Rollforwards

Note 25. Reserve Rollforwards
	12 Months Ended Dec. 31, 2009 USD / shares
Notes To Financial Statements [Abstract]
Reserve Rollforwards	25. RESERVE ROLLFORWARDS Valuation and Qualifying Accounts Additions Balance at January 1, 2007 Charged to Cost and Expense Charged to Other Accounts Deductions Balance at December 31, 2007 Reserve for: Doubtful accounts and returns $ 15 $ (1 ) $ -- $ 8 $ 6 LIFO Inventory 464 46 -- -- 510 Environmental contingencies 47 3 -- 8 42 Deferred tax valuation allowance 130 8 8 -- 146 $ 656 $ 56 $ 8 $ 16 $ 704 Balance at January 1, 2008 Charged to Cost and Expense Charged to Other Accounts Deductions Balance at December 31, 2008 Reserve for: Doubtful accounts and returns $ 6 $ 6 $ -- $ 4 $ 8 LIFO Inventory 510 15 -- -- 525 Environmental contingencies 42 5 -- 6 41 Deferred tax valuation allowance 146 (10 ) (5 ) -- 131 $ 704 $ 16 $ (5 ) $ 10 $ 705 Balance at January 1, 2009 Charged to Cost and Expense Charged to Other Accounts Deductions Balance at December 31, 2009 Reserve for: Doubtful accounts and returns $ 8 $ 3 $ -- $ 1 $ 10 LIFO Inventory 525 (79 ) -- -- 446 Environmental contingencies 41 3 -- 2 42 Deferred tax valuation allowance 131 (45 ) 2 -- 88 $ 705 $ (118 ) $ 2 $ 3 $ 586

Document Information

Document Information
	12 Months Ended Dec. 31, 2009 USD / shares
Document Information [Text Block]
Document Type	10-K
Document Period End Date	2009-12-31
Amendment Flag	false

Entity Information

Entity Information (USD $)
	12 Months Ended Dec. 31, 2009
Entity [Text Block]
Entity Registrant Name	EASTMAN CHEMICAL CO
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	$2,728,058,714
Entity Common Stock, Shares Outstanding	72,468,042