Eastman Chemical (EMN) 10-Q 3 Nov 15 2015 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	9 Months Ended
	Sep. 30, 2015	Dec. 31, 2014
Document and Entity Information [Abstract]
Entity Registrant Name	EASTMAN CHEMICAL CO
Entity Central Index Key	915,389
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		$ 12,933,550,862
Entity Common Stock, Shares Outstanding	148,607,527
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	Q3
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2015

UNAUDITED CONSOLIDATED STATEMEN

UNAUDITED CONSOLIDATED STATEMENTS OF EARNINGS, COMPREHENSIVE INCOME AND RETAINED EARNINGS - USD ($) $ in Millions		3 Months Ended		9 Months Ended
		Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015		Sep. 30, 2014
Income Statement [Abstract]
Sales		$ 2,447	$ 2,413	$ 7,423		$ 7,178
Cost of sales		1,752	1,777	5,352		5,290
Gross profit		695	636	2,071		1,888
Selling, general and administrative expenses		178	171	552		511
Research and development expenses		64	56	177		165
Asset impairments and restructuring charges, net		21	71	130		77
Operating earnings		432	338	1,212		1,135
Net interest expense		66	45	198		132
Other (income) charges, net		13	(5)	2		(16)
Earnings from continuing operations before income taxes		353	298	1,012		1,019
Provision for income taxes from continuing operations		95	86	283		281
Earnings from continuing operations		258	212	729		738
Earnings from discontinued operations, net of tax		0	0	0		2
Net earnings		258	212	729		740
Net earnings attributable to noncontrolling interest		2	2	5		5
Net earnings attributable to Eastman		256	210	724		735
Amounts attributable to Eastman stockholders
Earnings from continuing operations, net of tax		256	210	724		733
Earnings from discontinued operations, net of tax		0	0			2
Net earnings attributable to Eastman		$ 256	$ 210	$ 724		$ 735
Basic earnings per share attributable to Eastman
Earnings from continuing operations	[1]	$ 1.73	$ 1.41	$ 4.87		$ 4.89
Earnings from discontinued operations		0	0	0		0.01
Basic earnings per share attributable to Eastman		1.73	1.41	4.87		4.90
Diluted earnings per share attributable to Eastman
Earnings from continuing operations	[1]	1.71	1.39	4.83		4.83
Earnings from discontinued operations		0	0	0		0.02
Diluted earnings per share attributable to Eastman		$ 1.71	$ 1.39	$ 4.83		$ 4.85
Comprehensive Income
Net earnings including noncontrolling interest		$ 258	$ 212	$ 729		$ 740
Other comprehensive income (loss), net of tax
Change in cumulative translation adjustment		(47)	(127)	(183)		(114)
Defined benefit pension and other postretirement benefit plans:
Amortization of unrecognized prior service credits included in net periodic costs	[2]	(4)	(4)	(15)		(12)
Derivatives and hedging:
Unrealized gain (loss) during period	[3]	(66)	36	(27)		42
Reclassification adjustment for (gain) loss included in net income	[3]	34	0	56		(9)
Total other comprehensive income (loss), net of tax		(83)	(95)	(169)		(93)
Comprehensive income including noncontrolling interest		175	117	560		647
Net earnings attributable to noncontrolling interest		2	2	5		5
Comprehensive income attributable to Eastman		173	115	555		642
Retained Earnings
Retained earnings at beginning of period		4,893	4,431	4,545		4,012
Net earnings attributable to Eastman		256	210	724		735
Cash dividends declared		(59)	(53)	(179)	[4]	(159)
Retained earnings at end of period		$ 5,090	$ 4,588	$ 5,090		$ 4,588
[1]	Earnings per share are calculated using whole dollars and shares.
[2]	Included in the calculation of net periodic benefit costs for pension and other postretirement benefit plans. See Note 8, "Retirement Plans".
[3]	For additional information regarding the impact of reclassifications into earnings, refer to Note 7, "Derivatives".
[4]	Includes cash dividends paid and dividends declared, but unpaid.

UNAUDITED CONSOLIDATED STATEME3

UNAUDITED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION - USD ($) $ in Millions		Sep. 30, 2015	Dec. 31, 2014
Current assets
Cash and cash equivalents		$ 309	$ 214
Trade receivables, net		968	936
Miscellaneous receivables		152	264
Inventories		1,484	1,509
Other current assets		269	250
Total current assets		3,182	3,173
Properties
Properties and equipment at cost		11,052	11,026
Less: Accumulated depreciation		6,007	5,939
Net properties		5,045	5,087
Goodwill		4,482	4,486
Intangible assets, net of accumulated amortization		2,718	2,905
Other noncurrent assets		453	421
Total assets	[1]	15,880	16,072
Current liabilities
Payables and other current liabilities		1,549	1,721
Borrowings due within one year		251	301
Total current liabilities		1,800	2,022
Long-term borrowings		7,029	7,248
Deferred income tax liabilities		1,004	946
Post-employment obligations		1,380	1,498
Other long-term liabilities		711	768
Total liabilities		11,924	12,482
Stockholders' equity
Common stock ($0.01 par value – 350,000,000 shares authorized; shares issued – 216,873,620 and 216,256,971 for 2015 and 2014, respectively)		2	2
Additional paid-in capital		1,856	1,817
Retained earnings		5,090	4,545
Accumulated other comprehensive loss		(446)	(277)
Stockholder's Equity before Treasury Stock		6,502	6,087
Less: Treasury stock at cost (68,316,891 shares for 2015 and 67,660,313 shares for 2014)		2,625	2,577
Total Eastman stockholders' equity		3,877	3,510
Noncontrolling interest		79	80
Total equity		3,956	3,590
Total liabilities and stockholders' equity		$ 15,880	$ 16,072
[1]	The chief operating decision maker holds segment management accountable for accounts receivable, inventory, fixed assets, goodwill, and intangible assets.

UNAUDITED CONSOLIDATED STATEME4

UNAUDITED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (Parenthetical) - $ / shares	Sep. 30, 2015	Dec. 31, 2014
Stockholders' equity
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	350,000,000	350,000,000
Common stock, shares issued (in shares)	216,873,620	216,256,971
Treasury stock at cost (in shares)	68,316,891	67,660,313

UNAUDITED CONSOLIDATED STATEME5

UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Operating activities
Net earnings	$ 729	$ 740
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization	429	328
Asset impairment charges	107	50
Gain on sale of assets	0	(5)
Provision for deferred income taxes	29	58
Changes in operating assets and liabilities, net of effect of acquisitions and divestitures:
(Increase) decrease in trade receivables	(54)	(118)
(Increase) decrease in inventories	(23)	(76)
Increase (decrease) in trade payables	(139)	(12)
Pension and other postretirement contributions (in excess of) less than expenses	(147)	(76)
Variable compensation (in excess of) less than expenses	20	(8)
Other items, net	99	68
Net cash provided by operating activities	1,050	949
Investing activities
Additions to properties and equipment	(426)	(406)
Proceeds from sale of assets	4	13
Acquisitions, net of cash acquired	(45)	(325)
Additions to capitalized software	(2)	(2)
Other items, net	2	2
Net cash used in investing activities	(467)	(718)
Financing activities
Net increase (decrease) in commercial paper borrowings	157	(185)
Proceeds from borrowings	250	615
Repayment of borrowings	(675)	(125)
Dividends paid to stockholders	(179)	(159)
Treasury stock purchases	(48)	(410)
Dividends paid to noncontrolling interest	(6)	(9)
Proceeds from stock option exercises and other items, net	20	22
Net cash used in financing activities	(481)	(251)
Effect of exchange rate changes on cash and cash equivalents	(7)	(5)
Net change in cash and cash equivalents	95	(25)
Cash and cash equivalents at beginning of period	214	237
Cash and cash equivalents at end of period	$ 309	$ 212

BASIS OF PRESENTATION

BASIS OF PRESENTATION	9 Months Ended
	Sep. 30, 2015
Accounting Policies [Abstract]
BASIS OF PRESENTATION	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 2014 Annual Report on Form 10-K and should be read in conjunction with the consolidated financial statements in Part II, Item 8 of the Company's 2014 Annual Report on Form 10-K. The December 31, 2014 financial position data included herein was derived from the audited consolidated financial statements included in the 2014 Form 10-K but does not include all disclosures required by accounting principles generally accepted in the United States ("GAAP"). The unaudited consolidated financial statements are prepared in conformity with 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, sales revenue, and expenses of all majority-owned subsidiaries and joint ventures in which a controlling interest is maintained. Eastman accounts for other joint ventures and investments where it exercises significant influence on the equity basis. Intercompany transactions and balances are eliminated in consolidation. Off Balance Sheet Financing Arrangements The Company assumed the rights and obligations under non-recourse factoring facilities as part of the acquisition of Taminco Corporation ("Taminco"). The non-recourse factoring facilities have a combined limit of $177 million (the U.S. Dollar equivalent of the €158 million limit amount as of September 30, 2015 ) and are committed until December 2017. These arrangements include receivables in the United States, Belgium, Germany, and Finland, and are subject to various eligibility requirements. The Company sells the receivables at face value but receives funding (approximately 85 percent ) net of a deposit amount until collections are received from customers for the receivables sold. The total amounts of cumulative receivables sold in third quarter and first nine months 2015 , were approximately $245 million and $780 million , respectively. The total amount of cumulative receivables sold during the year ended December 31, 2014 , since the acquisition of Taminco on December 5, 2014, was $70 million . As part of the program, the Company continues to service the sold receivables at market rates with no servicing assets or liabilities recognized. The amounts of sold receivables outstanding under the non-recourse factoring facilities were $117 million and $105 million at September 30, 2015 and December 31, 2014 , respectively. The fair value of the receivables sold equals the carrying value at the time of the sale, and no gain or loss is recognized. The Company is exposed to a credit loss of up to 10 percent on sold receivables.
Basis of Accounting, Policy [Policy Text Block]	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 2014 Annual Report on Form 10-K and should be read in conjunction with the consolidated financial statements in Part II, Item 8 of the Company's 2014 Annual Report on Form 10-K. The December 31, 2014 financial position data included herein was derived from the audited consolidated financial statements included in the 2014 Form 10-K but does not include all disclosures required by accounting principles generally accepted in the United States ("GAAP"). The unaudited consolidated financial statements are prepared in conformity with 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, sales revenue, and expenses of all majority-owned subsidiaries and joint ventures in which a controlling interest is maintained. Eastman accounts for other joint ventures and investments where it exercises significant influence on the equity basis. Intercompany transactions and balances are eliminated in consolidation
Trade and Other Accounts Receivable, Policy [Policy Text Block]	Off Balance Sheet Financing Arrangements The Company assumed the rights and obligations under non-recourse factoring facilities as part of the acquisition of Taminco Corporation ("Taminco"). The non-recourse factoring facilities have a combined limit of $177 million (the U.S. Dollar equivalent of the €158 million limit amount as of September 30, 2015 ) and are committed until December 2017. These arrangements include receivables in the United States, Belgium, Germany, and Finland, and are subject to various eligibility requirements. The Company sells the receivables at face value but receives funding (approximately 85 percent ) net of a deposit amount until collections are received from customers for the receivables sold. The total amounts of cumulative receivables sold in third quarter and first nine months 2015 , were approximately $245 million and $780 million , respectively. The total amount of cumulative receivables sold during the year ended December 31, 2014 , since the acquisition of Taminco on December 5, 2014, was $70 million . As part of the program, the Company continues to service the sold receivables at market rates with no servicing assets or liabilities recognized. The amounts of sold receivables outstanding under the non-recourse factoring facilities were $117 million and $105 million at September 30, 2015 and December 31, 2014 , respectively. The fair value of the receivables sold equals the carrying value at the time of the sale, and no gain or loss is recognized. The Company is exposed to a credit loss of up to 10 percent on sold receivables.

ACQUISITIONS ACQUISITIONS

ACQUISITIONS ACQUISITIONS	9 Months Ended
	Sep. 30, 2015
Acquisitions [Abstract]
Mergers, Acquisitions and Dispositions Disclosures [Text Block]	ACQUISITIONS Taminco Corporation On December 5, 2014, the Company completed its acquisition of Taminco, a global specialty chemical company. The fair value of total consideration transferred was $2.8 billion , consisting of cash of $1.7 billion , net of cash acquired, and repayment of Taminco's debt of $1.1 billion . Taminco's former specialty amines and crop protection businesses are now operated as part of the Additives & Functional Products ("AFP") segment and its former functional amines business are now operated as part of the Specialty Fluids & Intermediates ("SFI") segment. For the preliminary purchase price allocation see Note 2, "Acquisitions", to the consolidated financial statements in Part II, Item 8 of the Company's 2014 Annual Report on Form 10-K. During third quarter 2015, the Company continued to refine its preliminary purchase price allocation with no adjustments to goodwill. As of September 30, 2015, the purchase price allocation remains preliminary as management completes its assessment of certain items, primarily environmental, legal, and tax. The purchase price allocation will be finalized in fourth quarter 2015. The following table summarizes the preliminary purchase price allocation for the Taminco acquisition. Any subsequent adjustments are not expected to have a material impact on the Company's results of operations. Assets acquired and liabilities assumed (Dollars in millions) December 31, 2014 2015 Net Adjustments to Fair Value September 30, 2015 Current assets $ 266 $ (3 ) $ 263 Properties and equipment 658 (3 ) 655 Intangible assets 1,002 (13 ) 989 Other noncurrent assets 37 1 38 Goodwill 1,509 32 1,541 Current liabilities (161 ) 1 (160 ) Long-term liabilities (546 ) (15 ) (561 ) Total purchase price, net of cash acquired $ 2,765 $ — $ 2,765 Acquired intangible assets are definite-lived assets and consist primarily of customer relationships, developed technologies, and contracts. Intangible Assets acquired (Dollars in millions) Fair Value Weighted-Average Amortization Period (Years) Amortizable intangible assets Customer relationships $ 604 24 Developed technologies 205 17 Contracts 180 5 Total $ 989 Goodwill from the Taminco acquisition has been preliminarily allocated to certain of the Company's reportable segments as set out in the table below. None of the goodwill is deductible for tax purposes. Goodwill Goodwill by Segment (Dollars in millions) Additives & Functional Products $ 918 Specialty Fluids & Intermediates 623 Total $ 1,541 In third quarter and first nine months 2015 , the Company recognized $4 million and $15 million , respectively in integration and transaction costs related to the acquisition. In 2014, the Company recognized $15 million in pre-close transaction and integration costs, and $13 million in pre-close financing costs related to the acquisition. Integration and transaction costs were expensed as incurred and are included in the "Selling, general and administrative expenses" line item and pre-close financing costs are included in the "Other (income) charges, net" and "Net interest expense" line items in the Consolidated Statements of Earnings, Comprehensive Income and Retained Earnings. Commonwealth Laminating & Coating, Inc. On December 11, 2014, the Company acquired Commonwealth Laminating & Coating, Inc. ("Commonwealth") for a total cash purchase price of $438 million . The acquisition was accounted for as a business combination and is reported in the Advanced Materials ("AM") segment. There was no change to the final purchase price allocation from the preliminary allocation in the Company's 2014 Annual Report on Form 10-K, see Note 2, "Acquisitions", to the consolidated financial statements in Part II, Item 8 of the Company's 2014 Annual Report on Form 10-K. The following table summarizes the final purchase price allocation for the Commonwealth acquisition: Assets acquired and liabilities assumed (Dollars in millions) As of December 11, 2014 Current assets $ 51 Machinery and equipment 38 Goodwill 274 Intangible assets 125 Long-term liabilities (50 ) Total purchase price $ 438 Current assets consist primarily of inventory acquired. Machinery and equipment acquired included a manufacturing operation in Martinsville, Virginia. Management valued machinery and equipment using the cost approach supported by published industry sources. Acquired intangible assets included customer relationships and developed technologies in the window film industry. Also acquired was the SunTek ® brand name that is business-to-business in nature. Management valued intangible assets using the relief from royalty and multi-period excess earnings methods, both forms of the income approach supported by observable market data for peer chemical companies. Intangible Assets acquired (Dollars in millions) Fair Value Weighted-Average Amortization Period (Years) Amortizable intangible assets Customer relationships $ 72 14 Developed technologies 41 18 Indefinite-lived intangible asset Brand name 12 Total $ 125 In connection with this acquisition, the Company recognized goodwill equal to the excess of the purchase price over the estimated fair value of net tangible and intangible assets acquired and liabilities assumed. None of the goodwill is deductible for tax purposes. In third quarter and first nine months 2015 , the Company recognized $1 million and $5 million , respectively in integration costs related to the acquisition. In 2014, the Company recognized $7 million in pre-close transaction and integration costs related to the acquisition. Integration and transaction costs were expensed as incurred and are included in the "Selling, general and administrative expenses" line item in the Consolidated Statements of Earnings, Comprehensive Income and Retained Earnings. As required by purchase accounting, acquired inventories were marked to fair value. In first six months 2015 , the remaining portion of these inventories was sold resulting in an increase in cost of sales of $7 million . Beginning in December 2014, the Company's consolidated results of operations included the results of Commonwealth. Based on applicable accounting and reporting guidance, the acquisition is not material to the Company's consolidated financial statements; therefore, pro forma financial information has not been presented.

INVENTORIES

INVENTORIES	9 Months Ended
	Sep. 30, 2015
Inventory Disclosure [Abstract]
INVENTORIES	INVENTORIES September 30, December 31, (Dollars in millions) 2015 2014 At FIFO or average cost (approximates current cost) Finished goods $ 1,116 $ 1,130 Work in process 214 288 Raw materials and supplies 510 553 Total inventories 1,840 1,971 LIFO Reserve (356 ) (462 ) Total inventories $ 1,484 $ 1,509 Inventories valued on the last-in, first-out ("LIFO") method were approximately 55 percent at both September 30, 2015 and December 31, 2014 .

PAYABLES AND OTHER CURRENT LIAB

PAYABLES AND OTHER CURRENT LIABILITIES	9 Months Ended
	Sep. 30, 2015
Payables and Accruals [Abstract]
PAYABLES AND OTHER CURRENT LIABILITIES	PAYABLES AND OTHER CURRENT LIABILITIES September 30, December 31, (Dollars in millions) 2015 2014 Trade creditors $ 685 $ 827 Derivative hedging liability 209 227 Accrued payrolls, vacation, and variable-incentive compensation 180 191 Accrued taxes 97 66 Other 378 410 Total payables and other current liabilities $ 1,549 $ 1,721 "Other" consists primarily of accruals for interest payable, dividends payable, post-employment obligations, payroll deductions and employee benefits, accrued taxes, and the current portion of environmental liabilities.

PROVISION FOR INCOME TAXES

PROVISION FOR INCOME TAXES	9 Months Ended
	Sep. 30, 2015
Income Tax Disclosure [Abstract]
PROVISION FOR INCOME TAXES	PROVISION FOR INCOME TAXES Third Quarter First Nine Months (Dollars in millions) 2015 2014 2015 2014 Provision for income taxes from continuing operations $ 95 $ 86 $ 283 $ 281 Effective tax rate 27 % 29 % 28 % 28 %

BORROWINGS

BORROWINGS	9 Months Ended
	Sep. 30, 2015
Debt Disclosure [Abstract]
BORROWINGS	BORROWINGS September 30, December 31, (Dollars in millions) 2015 2014 Borrowings consisted of: 3% notes due 2015 $ 250 $ 250 2.4% notes due 2017 999 998 6.30% notes due 2018 167 169 5.5% notes due 2019 250 250 2.7% notes due 2020 799 798 4.5% notes due 2021 250 250 3.6% notes due 2022 903 903 7 1/4% debentures due 2024 244 244 7 5/8% debentures due 2024 54 54 3.8% notes due 2025 796 796 7.60% debentures due 2027 222 222 4.8% notes due 2042 497 497 4.65% notes due 2044 877 877 Credit facilities and commercial paper borrowings 967 1,235 Capital leases 5 6 Total borrowings 7,280 7,549 Borrowings due within one year 251 301 Long-term borrowings $ 7,029 $ 7,248 Credit Facility and Commercial Paper Borrowings In connection with the acquisition of Taminco, Eastman entered into a $1.0 billion five-year Term Loan Agreement. As of September 30, 2015 , the Term Loan Agreement balance outstanding was $350 million with an interest rate of 1.44 percent . In third quarter 2015 , $25 million of the Term Loan Agreement balance was repaid using available cash. As of December 31, 2014 , the Term Loan Agreement balance outstanding was $1.0 billion with an interest rate of 1.41 percent . Borrowings under the Term Loan Agreement are subject to interest at varying spreads above quoted market rates. The Company has access to a $1.25 billion revolving credit agreement (the "Credit Facility") that was amended in October 2015 to extend the maturity to October 2020. Borrowings under the Credit Facility are subject to interest at varying spreads above quoted market rates and a commitment fee is paid on the total unused commitment. At September 30, 2015 and December 31, 2014 , the Company had no outstanding borrowings under the Credit Facility. The Credit Facility provides liquidity support for commercial paper borrowings and general corporate purposes. Accordingly, any outstanding commercial paper borrowings reduce capacity for borrowings available under the Credit Facility. Given the expiration date of the Credit Facility, any commercial paper borrowings supported by the Credit Facility are classified as long-term borrowings because the Company has the ability to refinance such borrowings on a long-term basis and intends, at least over the next twelve months, to maintain commercial paper borrowings at current levels. At September 30, 2015 , the Company's commercial paper borrowings were $392 million with a weighted average interest rate of 0.50 percent . At December 31, 2014 , the Company's commercial paper borrowings were $235 million with a weighted average interest rate of 0.47 percent . In July 2015, the Company amended its $250 million accounts receivable securitization agreement (the "A/R Facility") to extend the maturity to April 2018. Borrowings under the A/R Facility are subject to interest rates based on a spread over the lender's borrowing costs, and the Company pays a fee to maintain availability of the A/R Facility. At September 30, 2015 , the Company's borrowings under the A/R Facility were $225 million secured by trade receivables with an interest rate of 0.95 percent . In third quarter 2015 , $ 25 million of the Company's borrowings under the A/R Facility were repaid using available cash. At December 31, 2014 , the Company had no outstanding borrowings under the A/R Facility. During first quarter 2014, $125 million of the available amount under the A/R Facility was borrowed and then repaid during second quarter 2014. The Term Loan Agreement, Credit Facility, and the A/R Facility contain 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. Total available borrowings under the Credit Facility and A/R Facility were $883 million and $1.265 billion as of September 30, 2015 and December 31, 2014 , respectively. The Company would not have violated applicable covenants for these periods if the total available amounts of the facilities had been borrowed. Fair Value of Borrowings The Company has classified its long-term borrowings at September 30, 2015 , and December 31, 2014 , under the fair value hierarchy as defined in the accounting policies in Note 1, "Significant Accounting Policies", to the consolidated financial statements in Part II, Item 8 of the Company's 2014 Annual Report on Form 10-K. The fair value for fixed-rate debt securities is based on current market prices and is classified as Level 1. The fair value for the Company's other borrowings, which include the Term Loan Agreement, A/R Facility, commercial paper, and capital leases equals the carrying value and is classified as Level 2. Fair Value Measurements at September 30, 2015 (Dollars in millions) Recorded Amount Total Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Long-term borrowings $ 7,029 $ 7,146 $ 6,176 $ 970 $ — Fair Value Measurements at December 31, 2014 (Dollars in millions) Recorded Amount Total Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Long-term borrowings $ 7,248 $ 7,557 $ 6,366 $ 1,191 $ —

DERIVATIVES

DERIVATIVES	9 Months Ended
	Sep. 30, 2015
Derivative Instruments and Hedging Activities Disclosure [Abstract]
DERIVATIVES	DERIVATIVES Hedging Programs The Company is exposed to market risks, such as changes in foreign currency exchange rates, commodity prices, and interest rates. To mitigate these market risks and their effects on the cash flows of the underlying transaction, the Company uses various derivative financial instruments when appropriate in accordance with the Company's hedging strategy and policies. Designation is performed on a specific exposure basis to support hedge accounting. The changes in fair value of these hedging instruments are offset in part or in whole by corresponding changes in the anticipated cash flows of the underlying exposures being hedged. The Company does not enter into derivative transactions for speculative purposes. For further information on hedging programs, see Note 10, "Derivatives", to the consolidated financial statements in Part II, Item 8 of the Company's 2014 Annual Report on Form 10-K. Fair Value Hedges Fair value hedges are defined as derivative or non-derivative instruments designated as and used to hedge the exposure to changes in the fair value of an asset or a liability or an identified portion thereof that is attributable to a particular risk. For derivative instruments that are designated and qualify as fair value hedges, 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. In 2014, the Company entered into interest rate swaps to hedge the interest rate risk on the 3.6% notes due 2022. As of September 30, 2015 and December 31, 2014 , the total notional amount of the Company's interest rate swaps was $275 million . Fair Value Measurement of Derivatives Designated as Fair Value Hedging Instruments (Dollars in millions) Fair Value Measurement Derivative Assets Statement of Financial Position Location September 30, 2015 December 31, 2014 Interest rate swap Other noncurrent assets $ 12 $ 5 Derivatives' Fair Value Hedging Relationships Third quarter (Dollars in millions) Consolidated Statement of Earnings Location of Gain/(Loss) Recognized in Income on Derivatives Amount of Gain/ (Loss) Recognized in Income on Derivatives Derivatives in Fair Value Hedging Relationships September 30, 2015 September 30, 2014 Interest rate swaps Net interest expense $ 3 $ 2 Nine Months Ended (Dollars in millions) Consolidated Statement of Earnings Location of Gain/(Loss) Recognized in Income on Derivatives Amount of Gain/ (Loss) Recognized in Income on Derivatives Derivatives in Fair Value Hedging Relationships September 30, 2015 September 30, 2014 Interest rate swaps Net interest expense $ 10 $ 3 Cash Flow Hedges Cash flow hedges are derivative instruments designated as and used to hedge the exposure to variability in expected future cash flows that is attributable to a particular risk. For derivative instruments that are designated and qualify as a cash flow hedge, the effective portion of the gain or loss on the derivative is reported as a component of other comprehensive income, net of income taxes and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. Gains and losses on the derivatives representing either hedge ineffectiveness or hedge components excluded from the assessment of effectiveness are recognized in current earnings. Total notional amounts September 30, 2015 December 31, 2014 Foreign Exchange Forward and Option Contracts (in millions) EUR/USD (in EUR) €696 €810 EUR/USD (in approximate USD equivalent) $795 $1,000 JPY/USD (in JPY) ¥3,000 ¥4,800 JPY/USD (in approximate USD equivalent) $25 $40 Commodity Forward and Collar Contracts Contract ethylene sales (in thousand metric tons) 0 14 Feedstock (in million barrels) 25 33 Feedstock (in thousand metric tons) 8 30 Energy (in million million british thermal units) 28 25 Interest rate swaps for the future issuance of debt (in millions) $500 $500 Fair Value Measurement of Derivatives Designated as Cash Flow Hedging Instruments (Dollars in millions) Fair Value Measurements Significant Other Observable Inputs Derivative Assets Statement of Financial Position Location September 30, 2015 December 31, 2014 Cash Flow Hedges Commodity contracts Other current assets $ — $ 2 Foreign exchange contracts Other current assets 66 61 Foreign exchange contracts Other noncurrent assets 84 71 $ 150 $ 134 (Dollars in millions) Fair Value Measurements Significant Other Observable Inputs Derivative Liabilities Statement of Financial Position Location September 30, 2015 December 31, 2014 Cash Flow Hedges Commodity contracts Payables and other current liabilities $ 177 $ 193 Commodity contracts Other long-term liabilities 250 289 Foreign exchange contracts Payables and other current liabilities 2 10 Forward starting interest rate swap contracts Other long-term liabilities 34 16 $ 463 $ 508 Derivatives' Hedging Relationships Third Quarter (Dollars in millions) Change in amount after tax of gain/(loss) recognized in Other Comprehensive Income on derivatives (effective portion) Location of gain/(loss) reclassified from Accumulated Other Comprehensive Income into income (effective portion) Pre-tax amount of gain/(loss) reclassified from Accumulated Other Comprehensive Income into income (effective portion) Derivatives' Cash Flow Hedging Relationships September 30, September 30, September 30, September 30, Commodity contracts $ (6 ) $ (22 ) Sales $ 1 $ — Cost of Sales (74 ) (1 ) Foreign exchange contracts (11 ) 57 Sales 20 4 Forward starting interest rate swap contracts (15 ) 1 Net interest expense (1 ) (2 ) $ (32 ) $ 36 $ (54 ) $ 1 First Nine Months (Dollars in millions) Change in amount after tax of gain/(loss) recognized in Other Comprehensive Income on derivatives (effective portion) Location of gain/(loss) reclassified from Accumulated Other Comprehensive Income into income (effective portion) Pre-tax amount of gain/(loss) reclassified from Accumulated Other Comprehensive Income into income (effective portion) Derivatives' Cash Flow Hedging Relationships September 30, September 30, September 30, September 30, Commodity contracts $ 21 $ (27 ) Sales $ 4 $ — Cost of sales (152 ) 18 Foreign exchange contracts 16 59 Sales 63 3 Forward starting interest rate swap contracts (8 ) 1 Net interest expense (5 ) (6 ) $ 29 $ 33 $ (90 ) $ 15 Hedging Summary Monetized positions and mark-to-market gains and losses from raw materials and energy, currency, and certain interest rate hedges that were included in accumulated other comprehensive income before taxes totaled losses of $386 million at September 30, 2015 and $8 million at September 30, 2014 . Losses reclassified from Accumulated Other Comprehensive Income increased in 2015 compared to 2014 as a result of a sharp decline in commodity prices, particularly propane, partially offset by increased gains resulting from a weaker Euro and Japanese Yen relative to the U.S. Dollar. If realized, $142 million net losses as of September 30, 2015 will be reclassified into earnings during the next 12 months. Ineffective portions of hedges are immediately recognized in cost of sales or other charges (income), net. The gains or losses on nonqualifying derivatives or derivatives that are not designated as hedges are marked to market and reported in the line item "Other (income) charges, net" of the Unaudited Consolidated Statements of Earnings, and, in all periods presented, represent foreign exchange derivatives denominated in multiple currencies and are transacted and settled in the same quarter. The Company recognized $11 million net losses during third quarter 2015 and $1 million net gains during third quarter 2014 on nonqualifying derivatives. The Company recognized approximately $23 million net losses and $4 million net gains on nonqualifying derivatives during the first nine months of 2015 and 2014, respectively. Fair Value Measurements For additional information on fair value measurement, see Note 1, "Significant Accounting Policies", to the consolidated financial statements in Part II, Item 8 of the Company's 2014 Annual Report on Form 10-K. The following chart shows the gross financial assets and liabilities valued on a recurring basis. (Dollars in millions) Fair Value Measurements at September 30, 2015 Description September 30, 2015 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Derivative Assets $ 162 $ — $ 162 $ — Derivative Liabilities (463 ) — (463 ) — $ (301 ) $ — $ (301 ) $ — (Dollars in millions) Fair Value Measurements at December 31, 2014 Description December 31, 2014 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Derivative Assets $ 139 $ — $ 137 $ 2 Derivative Liabilities (508 ) — (508 ) — $ (369 ) $ — $ (371 ) $ 2 The majority of the Company's derivative assets are classified as Level 2. Level 2 fair value is based on estimates using standard pricing models. These standard pricing models use inputs which are derived from or corroborated by observable market data such as interest rate yield curves and currency spot and forward rates. The fair value of commodity contracts is derived using forward curves supplied by an industry recognized and unrelated third party. In addition, on an ongoing basis, the Company tests a subset of its valuations against valuations received from the transaction's counterparty to validate the accuracy of its standard pricing models. Counterparties to these derivative contracts are highly rated financial institutions which the Company believes carry minimal risk of nonperformance. All of the Company's derivative contracts are subject to master netting arrangements, or similar agreements, which provide for the option to settle contracts on a net basis when they settle on the same day and in the same currency. In addition, these arrangements provide for a net settlement of all contracts with a given counterparty in the event that the arrangement is terminated due to the occurrence of default or a termination event. Management has elected to present the derivative contracts on a gross basis in the Unaudited Consolidated Statements of Financial Position. Had it chosen to present the derivatives contracts on a net basis, it would have a derivative in a net asset position of $160 million and a derivative in a net liability position of $461 million as of September 30, 2015 . The Company does not have any cash collateral due under such agreements.

RETIREMENT PLANS

RETIREMENT PLANS	9 Months Ended
	Sep. 30, 2015
Compensation and Retirement Disclosure [Abstract]
RETIREMENT PLANS	RETIREMENT PLANS Defined Benefit Pension Plans and Other Postretirement Benefit Plans Eastman maintains defined benefit pension plans that provide eligible employees with retirement benefits. In addition, Eastman provides a subsidy for life insurance, health care, and dental benefits to eligible retirees hired prior to January 1, 2007, and a subsidy for health care and dental benefits to retirees' eligible survivors. Costs recognized for these benefits are recorded using estimated amounts, which may change as actual costs derived for the year are determined. For additional information regarding retirement plans, see Note 11, "Retirement Plans", to the consolidated financial statements in Part II, Item 8 of the Company's 2014 Annual Report on Form 10-K. Components of net periodic benefit (credit) cost were as follows: Third Quarter Pension Plans Other Postretirement Benefit Plans 2015 2014 2015 2014 (Dollars in millions) U.S. Non-U.S. U.S. Non-U.S. Components of net periodic benefit (credit) cost: Service cost $ 10 $ 3 $ 11 $ 4 $ 2 $ 2 Interest cost 21 7 24 7 9 11 Expected return on assets (38 ) (9 ) (36 ) (9 ) (1 ) (2 ) Amortization of: Prior service (credit) cost (1 ) — (1 ) — (6 ) (6 ) Net periodic benefit (credit) cost $ (8 ) $ 1 $ (2 ) $ 2 $ 4 $ 5 First Nine Months Pension Plans Other Postretirement Benefit Plans 2015 2014 2015 2014 (Dollars in millions) U.S. Non-U.S. U.S. Non-U.S. Components of net periodic benefit (credit) cost: Service cost $ 29 $ 11 $ 31 $ 11 $ 6 $ 6 Interest cost 65 20 74 23 29 33 Expected return on assets (111 ) (28 ) (107 ) (28 ) (4 ) (5 ) Curtailment gain (1) — (7 ) — — — — Amortization of: Prior service (credit) cost (3 ) — (3 ) — (18 ) (18 ) Mark-to-market pension and other postretirement benefits loss (2) — 2 — — — — Net periodic benefit (credit) cost $ (20 ) $ (2 ) $ (5 ) $ 6 $ 13 $ 16 (1) Gain in the Fibers segment due to the closure of the Workington, UK acetate tow manufacturing facility . (2) Mark-to-market loss due to the interim remeasurement of the Workington, UK pension plan, triggered by the closure of the Workington, UK acetate tow manufacturing facility. First nine months 2015 includes pension curtailment gains related to the remeasurement of the Workington, UK pension plan triggered by the closure of the Workington, UK acetate tow manufacturing facility. The remeasurement of the plan also resulted in a mark-to-market ("MTM") loss which was primarily due to asset returns being lower than expected returns. The Company contributed $90 million and $47 million to its U.S. defined benefit pension plans in first nine months 2015 and 2014 , respectively.

COMMITMENTS

COMMITMENTS	9 Months Ended
	Sep. 30, 2015
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS	COMMITMENTS Purchase Obligations and Lease Commitments The Company had various purchase obligations at September 30, 2015 , totaling $1.6 billion over a period of approximately 30 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 $272 million over a period of approximately 45 years. Of the total lease commitments, approximately 50 percent relate to real property, including office space, storage facilities, and land; approximately 45 percent relate to railcars; and approximately 5 percent relate to machinery and equipment, including computer and communications equipment and production equipment. Guarantees The Company has operating leases with terms that require the Company to guarantee a portion of the residual value of the leased assets upon termination of the lease as well as other guarantees. Disclosures about each group of similar guarantees are provided below. Residual Value Guarantees The Company has operating leases with terms that require the Company to guarantee a portion of the residual value of the leased assets upon termination of the lease. These residual value guarantees at September 30, 2015 , totaled $121 million and consisted primarily of leases for railcars and company aircraft and will expire beginning in 2016. Management's current expectation is that the likelihood of material residual guarantee payments is remote. Other Guarantees Guarantees and claims also arise during the ordinary course of business from relationships with customers, suppliers, joint venture partners, and other parties when the Company undertakes an obligation to guarantee the performance of others, if specified triggering events occur. Non-performance under a contract could trigger an obligation of the Company. The Company's current other guarantees include guarantees relating primarily to intellectual property, environmental matters, and other indemnifications and have arisen through the normal course of business. The ultimate effect on future financial results is not subject to reasonable estimation because considerable uncertainty exists as to the final outcome of these claims, if they were to occur. These other guarantees have terms up to 30 years with maximum potential future payments of $29 million in the aggregate, with none of these guarantees being individually significant to the Company's operating results, financial position, or liquidity. Management's current expectation is that future payment or performance related to non-performance under other guarantees is remote.

ENVIRONMENTAL MATTERS

ENVIRONMENTAL MATTERS	9 Months Ended
	Sep. 30, 2015
Accrual for Environmental Loss Contingencies Disclosure [Abstract]
Environmental Matters	ENVIRONMENTAL MATTERS AND ASSET RETIREMENT OBLIGATIONS 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 ", to the consolidated financial statements in Part II, Item 8 of the Company's 2014 Annual Report on Form 10-K. The Company's total reserve for environmental contingencies was $339 million and $345 million at September 30, 2015 and December 31, 2014 , respectively. At September 30, 2015 and December 31, 2014 , this reserve included $8 million and $10 million , respectively, related to sites previously closed and impaired by Eastman and sites that have been divested by Eastman but for which the Company retains the environmental liability related to these sites. Estimated future environmental expenditures for remediation costs ranged from the minimum or best estimate of $315 million to the maximum of $526 million and from the minimum or best estimate of $324 million to the maximum of $548 million at September 30, 2015 and December 31, 2014 , respectively. The maximum estimated future costs are considered to be reasonably possible and include the minimum or best estimate amounts accrued at both September 30, 2015 and December 31, 2014 . Although the resolution of uncertainties related to these environmental matters may have a material adverse effect on the Company's consolidated results of operations in the period recognized, because of the availability of legal defenses, the Company's preliminary assessment of actions that may be required, and if applicable, the expected sharing of costs, management does not believe that the Company's liability for these environmental matters, individually or in the aggregate, will be material to the Company's consolidated financial position or cash flows. Reserves for environmental remediation that management believes to be probable and estimable are recognized as current and long-term liabilities in the Unaudited Consolidated Statements of Financial Position. These reserves include liabilities expected to be paid within 30 years. The amounts charged to pre-tax earnings for environmental remediation and related charges are included in cost of sales and other charges (income), net, and are summarized below: (Dollars in millions) Environmental Remediation Liabilities Balance at December 31, 2014 $ 324 Changes in estimates recognized in earnings 11 Cash reductions (20 ) Balance at September 30, 2015 $ 315 An asset retirement obligation is an obligation for the retirement of a tangible long-lived asset that is incurred upon the acquisition, construction, development, or normal operation of that long-lived asset. The Company recognizes asset retirement obligations in the period in which they are incurred if a reasonable estimate of fair value can be made. The asset retirement obligation is subsequently adjusted for changes in fair value. The associated estimated asset retirement costs are capitalized as part of the carrying value of the long-lived assets and depreciated over their useful life. Environmental asset retirement obligations consist primarily of closure and post-closure costs. For facilities that have environmental asset retirement obligations, the best estimate accrued to date over the facilities' estimated useful lives for these environmental asset retirement obligation costs was $24 million and $ 21 million at September 30, 2015 and December 31, 2014 , respectively. The Company's total environmental reserve for environmental contingencies, including remediation costs and asset retirement obligations, is recognized in the Unaudited Consolidated Statements of Financial Position as follows: (Dollars in millions) September 30, 2015 December 31, 2014 Environmental contingent liabilities, current $ 35 $ 35 Environmental contingent liabilities, long-term 304 310 Total $ 339 $ 345 The Company also has contractual asset retirement obligations other than for environmental liabilities. Eastman's non-environmental asset retirement obligations are primarily for the future closure of leased manufacturing assets at Pace, Florida and Oulu, Finland acquired from Taminco. These accrued non-environmental asset retirement obligations were $43 million and $ 44 million at September 30, 2015 and December 31, 2014, respectively.

LEGAL MATTERS

LEGAL MATTERS	9 Months Ended
	Sep. 30, 2015
Loss Contingency, Information about Litigation Matters [Abstract]
LEGAL MATTERS	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.

STOCKHOLDERS' EQUITY

STOCKHOLDERS' EQUITY	9 Months Ended
	Sep. 30, 2015
Stockholders' Equity Note [Abstract]
STOCKHOLDERS' EQUITY	STOCKHOLDERS' EQUITY A reconciliation of the changes in stockholders' equity for first nine months 2015 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 Attributed to Eastman $ Noncontrolling Interest $ Total Stockholders' Equity $ Balance at December 31, 2014 2 1,817 4,545 (277 ) (2,577 ) 3,510 80 3,590 Net Earnings — — 724 — — 724 5 729 Cash Dividends Declared (1) ($1.20 per share) — — (179 ) — — (179 ) — (179 ) Other Comprehensive Income — — — (169 ) — (169 ) — (169 ) Share-Based Compensation Expense (2) — 30 — — — 30 — 30 Stock Option Exercises — 7 — — — 7 — 7 Other (3) — 2 — — — 2 — 2 Share Repurchase — — — — (48 ) (48 ) — (48 ) Distributions to Noncontrolling Interest — — — — — — (6 ) (6 ) Balance at September 30, 2015 2 1,856 5,090 (446 ) (2,625 ) 3,877 79 3,956 (1) Includes cash dividends paid and dividends declared, but unpaid. (2) Fair value of share-based awards. (3) Paid in capital includes tax benefits/charges relating to the differences between the amounts deductible for federal income taxes over the amounts charged to income for book value purposes and other items. Equity attributable to noncontrolling interest includes adjustments for currency revaluation. ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX (Dollars in millions) Cumulative Translation Adjustment Benefit Plans Unrecognized Prior Service Credits Unrealized Gains (Losses) on Derivative Instruments Unrealized Losses on Investments Accumulated Other Comprehensive Income (Loss) Balance at December 31, 2013 $ 133 $ 78 $ (39 ) $ (1 ) $ 171 Period change (201 ) (17 ) (230 ) — (448 ) Balance at December 31, 2014 (68 ) 61 (269 ) (1 ) (277 ) Period change (183 ) (15 ) 29 — (169 ) Balance at September 30, 2015 $ (251 ) $ 46 $ (240 ) $ (1 ) $ (446 ) Amounts of other comprehensive income (loss) are presented net of applicable taxes. The Company recognizes deferred income taxes on the cumulative translation adjustment related to branch operations and income from other entities included in the Company's consolidated U.S. tax return. No deferred income taxes are provided on the cumulative translation adjustment of other subsidiaries outside the United States, as such cumulative translation adjustment is considered to be a component of indefinitely invested, unremitted earnings of these foreign subsidiaries. Components of other comprehensive income recognized in the Unaudited Consolidated Statements of Earnings, Comprehensive Income and Retained Earnings are presented below, before tax and net of tax effects: Third Quarter 2015 2014 (Dollars in millions) Before Tax Net of Tax Before Tax Net of Tax Other comprehensive income (loss) Change in cumulative translation adjustment $ (47 ) $ (47 ) $ (127 ) $ (127 ) Defined benefit pension and other postretirement benefit plans: Amortization of unrecognized prior service credits included in net periodic costs (1) (7 ) (4 ) (7 ) (4 ) Derivatives and hedging: (2) Unrealized gain (loss) (107 ) (66 ) 58 36 Reclassification adjustment for (gain) loss included in net income 55 34 — — Change in derivatives and hedging (52 ) (32 ) 58 36 Total other comprehensive income (loss) $ (106 ) $ (83 ) $ (76 ) $ (95 ) First Nine Months 2015 2014 (Dollars in millions) Before Tax Net of Tax Before Tax Net of Tax Other comprehensive income (loss) Change in cumulative translation adjustment $ (183 ) $ (183 ) $ (115 ) $ (114 ) Defined benefit pension and other postretirement benefit plans: Amortization of unrecognized prior service credits included in net periodic costs (1) (21 ) (15 ) (21 ) (12 ) Derivatives and hedging: (2) Unrealized gain (loss) (44 ) (27 ) 67 42 Reclassification adjustment for (gain) loss included in net income 90 56 (14 ) (9 ) Change in derivatives and hedging 46 29 53 33 Total other comprehensive income (loss) $ (158 ) $ (169 ) $ (83 ) $ (93 ) (1) Included in the calculation of net periodic benefit costs for pension and other postretirement benefit plans. See Note 8, "Retirement Plans" . (2) For additional information regarding the impact of reclassifications into earnings, refer to Note 7, "Derivatives" .

EARNINGS AND DIVIDENDS PER SHAR

EARNINGS AND DIVIDENDS PER SHARE	9 Months Ended
	Sep. 30, 2015
Earnings Per Share [Abstract]
EARNINGS AND DIVIDENDS PER SHARE	EARNINGS AND DIVIDENDS PER SHARE The following table sets forth the computation of basic and diluted earnings per share ("EPS") from continuing operations: Third Quarter First Nine Months 2015 2014 2015 2014 (In millions, except per share amounts) Numerator Earnings attributable to Eastman: Earnings from continuing operations, net of tax $ 256 $ 210 $ 724 $ 733 Denominator Weighted average shares used for basic EPS 148.6 148.7 148.6 149.8 Dilutive effect of stock options and other awards 1.2 1.6 1.2 1.7 Weighted average shares used for diluted EPS 149.8 150.3 149.8 151.5 EPS from continuing operations (1) Basic $ 1.73 $ 1.41 $ 4.87 $ 4.89 Diluted $ 1.71 $ 1.39 $ 4.83 $ 4.83 (1) Earnings per share are calculated using whole dollars and shares. In third quarter and first nine months 2015 , common shares underlying options to purchase 773,643 and 264,043 shares, respectively, of common stock were excluded from the shares treated as outstanding for computation of diluted earnings per share because the total market value of option exercises for these awards was less than the total cash proceeds that would be received for these exercises. Third quarter and first nine months 2015 reflect the impact of share repurchases of 221,578 and 656,578 , respectively. In both third quarter and first nine months 2014, common shares underlying options to purchase 210,143 shares of common stock were excluded from the shares treated as outstanding for computation of diluted earnings per share because the total market value of option exercises for these awards was less than the total cash proceeds that would be received for these exercises. Third quarter and first nine months 2014 reflect the impact of share repurchases of 618,896 and 4,945,452 shares, respectively. The Company declared cash dividends of $0.40 and $0.35 per share in third quarter 2015 and 2014 , respectively, and $1.20 and $1.05 per share in first nine months 2015 and 2014, respectively.

ASSETS IMPAIRMENTS AND RESTRUCT

ASSETS IMPAIRMENTS AND RESTRUCTURING CHARGES, NET	9 Months Ended
	Sep. 30, 2015
Restructuring Costs and Asset Impairment Charges [Abstract]
ASSET IMPAIRMENTS AND RESTRUCTURING CHARGES, NET	ASSET IMPAIRMENTS AND RESTRUCTURING CHARGES, NET 2015 In third quarter and first nine months 2015 there were net asset impairments and restructuring charges of $21 million and $130 million , respectively. As a result of the annual impairment testing of indefinite-lived intangible assets, in third quarter and first nine months 2015 the Company recognized intangible asset impairments of $18 million in the AM segment primarily to reduce the carrying value of the V-Kool ® window films products trade name to the estimated fair value. The estimated fair value was determined using an income approach, specifically, the relief from royalty method. The impairment resulted from a decrease in projected revenues since the tradename was acquired from Solutia Inc. ("Solutia") in 2012. The decrease in projected revenues was primarily due to the Asian economic downturn impacting car sales growth in those geographic markets. In first nine months 2015, net asset impairments and restructuring charges included $81 million of asset impairments and $14 million of restructuring charges, including severance, in the Fibers segment due to the closure of the Workington, UK acetate tow manufacturing facility which is expected to be substantially completed in 2015. Additionally, in first nine months 2015, management decided not to continue a growth initiative that was reported in "Other". This resulted in the Company recognizing asset impairments of $8 million and restructuring charges of $4 million . Additionally, during first nine months 2015, net asset impairments and restructuring charges included $4 million of restructuring charges primarily for severance associated with the integration of Taminco. 2014 In third quarter and first nine months 2014 there were net asset impairments and restructuring charges of $71 million and $77 million , respectively. During third quarter and first nine months 2014, net asset impairments of $ 18 million and restructuring charges, including severance, of $ 24 million were recognized in the AFP segment for costs of the closure of a Crystex ® research and development facility in France. As a result of the annual impairment testing of indefinite-lived intangible assets, in third quarter and first nine months 2014 the Company recognized an intangible asset impairment of $ 22 million in the AFP segment to reduce the carrying value of the Crystex ® tradename to the estimated fair value. The impairment resulted from a decrease in projected revenue since the tradename was acquired from Solutia in 2012. In addition, during third quarter and first nine months 2014, a change in estimate of certain costs for the fourth quarter 2012 termination of the operation agreement for the São Jose dos Campos, Brazil site resulted in a restructuring charge of $5 million in addition to previously recognized asset impairments and restructuring charges. During first nine months 2014, the Company recognized gains from the sales of previously impaired assets at the former Photovoltaics production facility in Germany and a former polymers production facility in China of $5 million and $2 million , respectively. In first nine months 2014, charges included $8 million of asset impairments, including intangible assets, and $2 million of restructuring charges in the AM segment primarily due to the closure of a production facility in Taiwan for the Flexvue ® product line. First nine months 2014 also included $ 5 million of restructuring charges for severance associated with the continued integration of the acquired Solutia businesses. Changes in Reserves for Asset Impairments, Restructuring Charges, Net, and Severance Charges The following table summarizes the changes in asset impairments and restructuring charges and gains, the non-cash reductions attributable to asset impairments, and the cash reductions in restructuring reserves for severance costs and site closure costs paid in first nine months 2015 and full year 2014 : (Dollars in millions) Balance at January 1, 2015 Provision/ Adjustments Non-cash Reductions Cash Reductions Balance at September 30, 2015 Non-cash charges $ — $ 107 $ (107 ) $ — $ — Severance costs 13 15 2 (22 ) 8 Site closure and restructuring costs 15 8 2 (13 ) 12 Total $ 28 $ 130 $ (103 ) $ (35 ) $ 20 (Dollars in millions) Balance at January 1, 2014 Provision/ Adjustments Non-cash Reductions Cash Reductions Balance at December 31, 2014 Non-cash charges $ — $ 52 $ (52 ) $ — $ — Severance costs 22 13 — (22 ) 13 Site closure and restructuring costs 14 12 (4 ) (7 ) 15 Total $ 36 $ 77 $ (56 ) $ (29 ) $ 28 Substantially all severance costs remaining are expected to be applied to the reserves within one year.

SHARE-BASED COMPENSATION AWARDS

SHARE-BASED COMPENSATION AWARDS	9 Months Ended
	Sep. 30, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
SHARE-BASED COMPENSATION AWARDS	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 third quarter 2015 and 2014 , $9 million and $6 million , respectively, of compensation expense before tax were recognized in selling, general and administrative expense in the Unaudited Consolidated Statements of Earnings for all share-based awards. The impact on third quarter 2015 and 2014 net earnings of $5 million and $4 million , respectively, is net of deferred tax expense related to share-based award compensation for each period. In first nine months 2015 and 2014, $30 million and $23 million , respectively, of compensation expense before tax were recognized in selling, general and administrative expense in the Unaudited Consolidated Statements of Earnings for all share-based awards. The impact on first nine months 2015 and 2014 net earnings of $18 million and $14 million , respectively, is net of deferred tax expense related to share-based award compensation for each period. For additional information regarding share-based compensation plans and awards, see Note 18, "Share-Based Compensation Plans and Awards", to the consolidated financial statements in Part II, Item 8 of the Company's 2014 Annual Report on Form 10-K.

SUPPLEMENTAL CASH FLOW INFORMAT

SUPPLEMENTAL CASH FLOW INFORMATION	9 Months Ended
	Sep. 30, 2015
Supplemental Cash Flow Information [Abstract]
SUPPLEMENTAL CASH FLOW INFORMATION	SUPPLEMENTAL CASH FLOW INFORMATION Included in the line item "Other items, net" of the "Operating activities" section of the Unaudited Consolidated Statements of Cash Flows are the following changes to Unaudited Consolidated Statement of Financial Position line items: (Dollars in millions) First Nine Months 2015 2014 Other current assets $ 29 $ 23 Other noncurrent assets 43 25 Payables and other current liabilities 92 52 Long-term liabilities and equity (65 ) (32 ) Total $ 99 $ 68 The above changes resulted primarily from accrued taxes, deferred taxes, environmental liabilities, monetized positions from raw material and energy, currency, and certain interest rate hedges, prepaid insurance, miscellaneous deferrals, value-added taxes, and other miscellaneous accruals.

SEGMENT INFORMATION

SEGMENT INFORMATION	9 Months Ended
	Sep. 30, 2015
Segment Reporting [Abstract]
SEGMENT INFORMATION	SEGMENT INFORMATION The Company's products and operations are currently managed and reported in five operating segments: Additives & Functional Products ("AFP"), Adhesives & Plasticizers ("A&P"), Advanced Materials ("AM"), Fibers, and Specialty Fluids & Intermediates ("SFI"). For additional financial and product information concerning each segment, see Note 20, "Segment Information", to the consolidated financial statements in Part II, Item 8 of the Company's 2014 Annual Report on Form 10-K. Third quarter and first nine months 2015 included sales revenue from the acquired Taminco businesses reported in the AFP and SFI segments, and sales revenue from the acquired Commonwealth business reported in the AM segment. Third Quarter (Dollars in millions) 2015 2014 Sales Additives & Functional Products $ 602 $ 458 Adhesives & Plasticizers 305 347 Advanced Materials 624 604 Fibers 320 346 Specialty Fluids & Intermediates 584 650 Total Sales by Segment 2,435 2,405 Other 12 8 Total Sales $ 2,447 $ 2,413 First Nine Months (Dollars in millions) 2015 2014 Sales Additives & Functional Products $ 1,827 $ 1,333 Adhesives & Plasticizers 942 1,050 Advanced Materials 1,832 1,816 Fibers 903 1,086 Specialty Fluids & Intermediates 1,883 1,884 Total Sales by Segment 7,387 7,169 Other 36 9 Total Sales $ 7,423 $ 7,178 Third Quarter (Dollars in millions) 2015 2014 Operating Earnings (Loss) Additives & Functional Products $ 126 $ 37 Adhesives & Plasticizers 74 52 Advanced Materials 98 76 Fibers 102 112 Specialty Fluids & Intermediates 48 90 Total Operating Earnings by Segment 448 367 Other Growth initiatives and businesses not allocated to segments (18 ) (18 ) Pension and other postretirement benefit income (expense), net not allocated to operating segments 11 3 Acquisition integration, transaction, and restructuring costs (9 ) (14 ) Total Operating Earnings $ 432 $ 338 First Nine Months (Dollars in millions) 2015 2014 Operating Earnings (Loss) Additives & Functional Products $ 365 $ 236 Adhesives & Plasticizers 190 155 Advanced Materials 301 217 Fibers 188 352 Specialty Fluids & Intermediates 233 248 Total Operating Earnings by Segment 1,277 1,208 Other Growth initiatives and businesses not allocated to segments (66 ) (46 ) Pension and other postretirement benefit income (expense), net not allocated to operating segments 28 9 Acquisition integration, transaction, and restructuring costs (27 ) (36 ) Total Operating Earnings $ 1,212 $ 1,135 September 30, December 31, (Dollars in millions) 2015 2014 Assets by Segment (1) Additives & Functional Products $ 4,813 $ 4,900 Adhesives & Plasticizers 960 1,011 Advanced Materials 4,249 4,235 Fibers 997 986 Specialty Fluids & Intermediates 3,603 3,710 Total Assets by Segment 14,622 14,842 Corporate Assets 1,258 1,230 Total Assets $ 15,880 $ 16,072 (1) The chief operating decision maker holds segment management accountable for accounts receivable, inventory, fixed assets, goodwill, and intangible assets.

RECENTLY ISSUED ACCOUNTING STAN

RECENTLY ISSUED ACCOUNTING STANDARDS	9 Months Ended
	Sep. 30, 2015
Recently Issued Accounting Standards [Abstract]
Recently Issued Accounting Standards [Text Block]	RECENTLY ISSUED ACCOUNTING STANDARDS In May 2014, the Financial Accounting Standards Board ("FASB") and International Accounting Standards Board jointly issued new principles-based accounting guidance for revenue recognition that will supersede virtually all existing revenue guidance. The core principle of this guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. To achieve the core principle, the guidance establishes the following five steps: 1) identify the contract(s) with a customer, 2) identify the performance obligation in the contract, 3) determine the transaction price, 4) allocate the transaction price to the performance obligations in the contract, and 5) recognize revenue when (or as) the entity satisfies a performance obligation. The guidance also details the accounting treatment for costs to obtain or fulfill a contract. Lastly, disclosure requirements have been enhanced to provide sufficient information to enable users of financial statements to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. In August 2015, the FASB issued new guidance to delay the effective date of the new revenue standard by one year. The deferral results in the new revenue standard being effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. Early application is permitted under the original effective date of fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. The Company is currently evaluating the impact on the Company's financial position or results of operations and related disclosures. In April 2015, the FASB issued new guidance for debt issuance costs as a part of the simplification and productivity initiative. Under this guidance debt issuance costs will be presented as a direct reduction from the carrying amount of the debt liability, consistent with the presentation of debt discounts. The amortization of debt issuance costs will be reported as interest expense. The recognition and measurement guidance for debt issuance costs is not affected by the amendment. In August 2015, the FASB released clarifying guidance for debt issuance costs related to line-of-credit arrangements which may be deferred and for presenting debt issuance costs as an asset and subsequently amortizing the deferred debt issuance costs ratably over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. The new guidance is to be applied on a retrospective basis and reported as a change in an accounting principle. This guidance is effective for annual reporting periods beginning after December 15, 2015, including interim periods within that reporting period. Early adoption is permitted for financial statements that have not been previously issued. The Company has concluded that changes in its accounting required by this new guidance will not materially impact the Company's financial position or results of operations and related disclosures. In April 2015, the FASB issued new guidance for cloud computing arrangement fees, also as a part of the simplification and productivity initiative. The guidance establishes a new requirement to determine if cloud computing arrangements include a software license. If an arrangement is deemed to include a software license then the customer would account for the license as any other purchased software, capitalized and depreciated over the life of the contract. If an arrangement is deemed not to include a license, the agreement would be accounted for as a service contract. This guidance is effective for annual reporting periods beginning after December 15, 2015, including interim periods within that reporting period and early adoption is permitted. The Company has concluded that changes in its accounting required by this new guidance will not materially impact the Company's financial position or results of operations and related disclosures. In July 2015, the FASB issued new guidance for benefit plan accounting. The new guidance allows for reduced disclosures. The guidance is effective for annual reporting periods beginning after December 15, 2015, including interim periods within that reporting period and early adoption is permitted. The changes in accounting required by this standard will only impact the Company's Department of Labor 5500, "Annual Return/Report of Employee Benefit Plan" and will have no impact to the Company's financial position or results of operations and related disclosures. In July 2015, the FASB issued new guidance to simplify the measurement of inventory under the simplification and productivity initiative. The final standard changes the subsequent inventory measurement from lower of cost or market to lower of cost and net realizable value ("NRV"). NRV is defined as the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. The subsequent method of estimating the cost of inventory under GAAP (i.e., LIFO) is not being changed. This guidance is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period and early adoption is permitted. The new guidance is to be applied prospectively as of the beginning of an interim or annual reporting period. The Company has concluded that changes in its accounting required by this new guidance will not materially impact the Company's financial position or results of operations and related disclosures. In September 2015, the FASB issued guidance under the simplification and productivity initiative for business combination accounting. The new guidance requires that an acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. Under this guidance the acquirer recognizes, in the same period's financial statements, the effect on earnings of changes in depreciation, amortization, or other income effects, if any, as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date. New disclosures are required to present separately on the face of the income statement or disclose in the notes the portion of the amount recognized in current-period earnings by line item that would have been recognized in previous reporting periods if the adjustment to the provisional amounts had been recognized as of the acquisition date. This guidance is effective for annual reporting periods beginning after December 15, 2015, including interim periods within that reporting period. At adoption, the new guidance is to be applied prospectively to adjustments to provisional amounts that occur after the effective date with earlier application permitted for financial statements that have not been issued. The Company has elected to early adopt the new guidance beginning in third quarter 2015 for acquisitions in which the initial purchase price allocation is incomplete. At September 30, 2015 , there have been no material changes or effect on earnings for any acquisitions as disclosed in Note 2, Acquisitions .

ACQUISITIONS ACQUISITIONS (Tabl

ACQUISITIONS ACQUISITIONS (Tables)	9 Months Ended
	Sep. 30, 2015
Taminco [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block]	llowing table summarizes the preliminary purchase price allocation for the Taminco acquisition. Any subsequent adjustments are not expected to have a material impact on the Company's results of operations. Assets acquired and liabilities assumed (Dollars in millions) December 31, 2014 2015 Net Adjustments to Fair Value September 30, 2015 Current assets $ 266 $ (3 ) $ 263 Properties and equipment 658 (3 ) 655 Intangible assets 1,002 (13 ) 989 Other noncurrent assets 37 1 38 Goodwill 1,509 32 1,541 Current liabilities (161 ) 1 (160 ) Long-term liabilities (546 ) (15 ) (561 ) Total purchase price, net of cash acquired $ 2,765 $ — $ 2,765 Acqu
Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination [Table Text Block]	Acquired intangible assets are definite-lived assets and consist primarily of customer relationships, developed technologies, and contracts. Intangible Assets acquired (Dollars in millions) Fair Value Weighted-Average Amortization Period (Years) Amortizable intangible assets Customer relationships $ 604 24 Developed technologies 205 17 Contracts 180 5 Total $ 989
Business Combination, Segment Allocation [Table Text Block]	Goodwill from the Taminco acquisition has been preliminarily allocated to certain of the Company's reportable segments as set out in the table below. None of the goodwill is deductible for tax purposes. Goodwill Goodwill by Segment (Dollars in millions) Additives & Functional Products $ 918 Specialty Fluids & Intermediates 623 Total $ 1,541
Commonwealth [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block]	The following table summarizes the final purchase price allocation for the Commonwealth acquisition: Assets acquired and liabilities assumed (Dollars in millions) As of December 11, 2014 Current assets $ 51 Machinery and equipment 38 Goodwill 274 Intangible assets 125 Long-term liabilities (50 ) Total purchase price $ 438
Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination [Table Text Block]	Intangible Assets acquired (Dollars in millions) Fair Value Weighted-Average Amortization Period (Years) Amortizable intangible assets Customer relationships $ 72 14 Developed technologies 41 18 Indefinite-lived intangible asset Brand name 12 Total $ 125

INVENTORIES (Tables)

INVENTORIES (Tables)	9 Months Ended
	Sep. 30, 2015
Inventory Disclosure [Abstract]
Schedule of inventories	September 30, December 31, (Dollars in millions) 2015 2014 At FIFO or average cost (approximates current cost) Finished goods $ 1,116 $ 1,130 Work in process 214 288 Raw materials and supplies 510 553 Total inventories 1,840 1,971 LIFO Reserve (356 ) (462 ) Total inventories $ 1,484 $ 1,509

PAYABLES AND OTHER CURRENT LI26

PAYABLES AND OTHER CURRENT LIABILITIES (Tables)	9 Months Ended
	Sep. 30, 2015
Payables and Accruals [Abstract]
Schedule of payables and other current liabilities	September 30, December 31, (Dollars in millions) 2015 2014 Trade creditors $ 685 $ 827 Derivative hedging liability 209 227 Accrued payrolls, vacation, and variable-incentive compensation 180 191 Accrued taxes 97 66 Other 378 410 Total payables and other current liabilities $ 1,549 $ 1,721

PROVISION FOR INCOME TAXES (Tab

PROVISION FOR INCOME TAXES (Tables)	9 Months Ended
	Sep. 30, 2015
Income Tax Disclosure [Abstract]
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]	Third Quarter First Nine Months (Dollars in millions) 2015 2014 2015 2014 Provision for income taxes from continuing operations $ 95 $ 86 $ 283 $ 281 Effective tax rate 27 % 29 % 28 % 28 %

BORROWINGS (Tables)

BORROWINGS (Tables)	9 Months Ended
	Sep. 30, 2015
Debt Disclosure [Abstract]
Long-term Borrowings	September 30, December 31, (Dollars in millions) 2015 2014 Borrowings consisted of: 3% notes due 2015 $ 250 $ 250 2.4% notes due 2017 999 998 6.30% notes due 2018 167 169 5.5% notes due 2019 250 250 2.7% notes due 2020 799 798 4.5% notes due 2021 250 250 3.6% notes due 2022 903 903 7 1/4% debentures due 2024 244 244 7 5/8% debentures due 2024 54 54 3.8% notes due 2025 796 796 7.60% debentures due 2027 222 222 4.8% notes due 2042 497 497 4.65% notes due 2044 877 877 Credit facilities and commercial paper borrowings 967 1,235 Capital leases 5 6 Total borrowings 7,280 7,549 Borrowings due within one year 251 301 Long-term borrowings $ 7,029 $ 7,248
Fair Value of Borrowings	evel 2. Fair Value Measurements at September 30, 2015 (Dollars in millions) Recorded Amount Total Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Long-term borrowings $ 7,029 $ 7,146 $ 6,176 $ 970 $ — Fair Value Measurements at December 31, 2014 (Dollars in millions) Recorded Amount Total Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Long-term borrowings $ 7,248 $ 7,557 $ 6,366 $ 1,191 $ —

DERIVATIVES (Tables)

DERIVATIVES (Tables)	9 Months Ended
	Sep. 30, 2015
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Schedule of Notional Amounts of Outstanding Derivative Positions [Table Text Block]	Total notional amounts September 30, 2015 December 31, 2014 Foreign Exchange Forward and Option Contracts (in millions) EUR/USD (in EUR) €696 €810 EUR/USD (in approximate USD equivalent) $795 $1,000 JPY/USD (in JPY) ¥3,000 ¥4,800 JPY/USD (in approximate USD equivalent) $25 $40 Commodity Forward and Collar Contracts Contract ethylene sales (in thousand metric tons) 0 14 Feedstock (in million barrels) 25 33 Feedstock (in thousand metric tons) 8 30 Energy (in million million british thermal units) 28 25 Interest rate swaps for the future issuance of debt (in millions) $500 $500
Schedule of Derivative Financial Assets and Liabilities Based on Fair Value on Recurring Basis and Balance Sheet Location	Fair Value Measurement of Derivatives Designated as Fair Value Hedging Instruments (Dollars in millions) Fair Value Measurement Derivative Assets Statement of Financial Position Location September 30, 2015 December 31, 2014 Interest rate swap Other noncurrent assets $ 12 $ 5 Fair Value Measurement of Derivatives Designated as Cash Flow Hedging Instruments (Dollars in millions) Fair Value Measurements Significant Other Observable Inputs Derivative Assets Statement of Financial Position Location September 30, 2015 December 31, 2014 Cash Flow Hedges Commodity contracts Other current assets $ — $ 2 Foreign exchange contracts Other current assets 66 61 Foreign exchange contracts Other noncurrent assets 84 71 $ 150 $ 134 (Dollars in millions) Fair Value Measurements Significant Other Observable Inputs Derivative Liabilities Statement of Financial Position Location September 30, 2015 December 31, 2014 Cash Flow Hedges Commodity contracts Payables and other current liabilities $ 177 $ 193 Commodity contracts Other long-term liabilities 250 289 Foreign exchange contracts Payables and other current liabilities 2 10 Forward starting interest rate swap contracts Other long-term liabilities 34 16 $ 463 $ 508
Derivative Instrument Gain Loss in Statement of Financial Performance	Derivatives' Hedging Relationships Third Quarter (Dollars in millions) Change in amount after tax of gain/(loss) recognized in Other Comprehensive Income on derivatives (effective portion) Location of gain/(loss) reclassified from Accumulated Other Comprehensive Income into income (effective portion) Pre-tax amount of gain/(loss) reclassified from Accumulated Other Comprehensive Income into income (effective portion) Derivatives' Cash Flow Hedging Relationships September 30, September 30, September 30, September 30, Commodity contracts $ (6 ) $ (22 ) Sales $ 1 $ — Cost of Sales (74 ) (1 ) Foreign exchange contracts (11 ) 57 Sales 20 4 Forward starting interest rate swap contracts (15 ) 1 Net interest expense (1 ) (2 ) $ (32 ) $ 36 $ (54 ) $ 1 First Nine Months (Dollars in millions) Change in amount after tax of gain/(loss) recognized in Other Comprehensive Income on derivatives (effective portion) Location of gain/(loss) reclassified from Accumulated Other Comprehensive Income into income (effective portion) Pre-tax amount of gain/(loss) reclassified from Accumulated Other Comprehensive Income into income (effective portion) Derivatives' Cash Flow Hedging Relationships September 30, September 30, September 30, September 30, Commodity contracts $ 21 $ (27 ) Sales $ 4 $ — Cost of sales (152 ) 18 Foreign exchange contracts 16 59 Sales 63 3 Forward starting interest rate swap contracts (8 ) 1 Net interest expense (5 ) (6 ) $ 29 $ 33 $ (90 ) $ 15
Financial assets and liabilities valued on a recurring basis	(Dollars in millions) Fair Value Measurements at September 30, 2015 Description September 30, 2015 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Derivative Assets $ 162 $ — $ 162 $ — Derivative Liabilities (463 ) — (463 ) — $ (301 ) $ — $ (301 ) $ — (Dollars in millions) Fair Value Measurements at December 31, 2014 Description December 31, 2014 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Derivative Assets $ 139 $ — $ 137 $ 2 Derivative Liabilities (508 ) — (508 ) — $ (369 ) $ — $ (371 ) $ 2

RETIREMENT PLANS (Tables)

RETIREMENT PLANS (Tables)	9 Months Ended
	Sep. 30, 2015
Compensation and Retirement Disclosure [Abstract]
Components of net periodic benefit cost	Components of net periodic benefit (credit) cost were as follows: Third Quarter Pension Plans Other Postretirement Benefit Plans 2015 2014 2015 2014 (Dollars in millions) U.S. Non-U.S. U.S. Non-U.S. Components of net periodic benefit (credit) cost: Service cost $ 10 $ 3 $ 11 $ 4 $ 2 $ 2 Interest cost 21 7 24 7 9 11 Expected return on assets (38 ) (9 ) (36 ) (9 ) (1 ) (2 ) Amortization of: Prior service (credit) cost (1 ) — (1 ) — (6 ) (6 ) Net periodic benefit (credit) cost $ (8 ) $ 1 $ (2 ) $ 2 $ 4 $ 5 First Nine Months Pension Plans Other Postretirement Benefit Plans 2015 2014 2015 2014 (Dollars in millions) U.S. Non-U.S. U.S. Non-U.S. Components of net periodic benefit (credit) cost: Service cost $ 29 $ 11 $ 31 $ 11 $ 6 $ 6 Interest cost 65 20 74 23 29 33 Expected return on assets (111 ) (28 ) (107 ) (28 ) (4 ) (5 ) Curtailment gain (1) — (7 ) — — — — Amortization of: Prior service (credit) cost (3 ) — (3 ) — (18 ) (18 ) Mark-to-market pension and other postretirement benefits loss (2) — 2 — — — — Net periodic benefit (credit) cost $ (20 ) $ (2 ) $ (5 ) $ 6 $ 13 $ 16

ENVIRONMENTAL MATTERS (Tables)

ENVIRONMENTAL MATTERS (Tables)	9 Months Ended
	Sep. 30, 2015
Accrual for Environmental Loss Contingencies Disclosure [Abstract]
Schedule of changes to environmental remediation liabilities	The amounts charged to pre-tax earnings for environmental remediation and related charges are included in cost of sales and other charges (income), net, and are summarized below: (Dollars in millions) Environmental Remediation Liabilities Balance at December 31, 2014 $ 324 Changes in estimates recognized in earnings 11 Cash reductions (20 ) Balance at September 30, 2015 $ 315
Schedule of environmental remediation liabilities, current and non-current	An asset retirement obligation is an obligation for the retirement of a tangible long-lived asset that is incurred upon the acquisition, construction, development, or normal operation of that long-lived asset. The Company recognizes asset retirement obligations in the period in which they are incurred if a reasonable estimate of fair value can be made. The asset retirement obligation is subsequently adjusted for changes in fair value. The associated estimated asset retirement costs are capitalized as part of the carrying value of the long-lived assets and depreciated over their useful life. Environmental asset retirement obligations consist primarily of closure and post-closure costs. For facilities that have environmental asset retirement obligations, the best estimate accrued to date over the facilities' estimated useful lives for these environmental asset retirement obligation costs was $24 million and $ 21 million at September 30, 2015 and December 31, 2014 , respectively. The Company's total environmental reserve for environmental contingencies, including remediation costs and asset retirement obligations, is recognized in the Unaudited Consolidated Statements of Financial Position as follows: (Dollars in millions) September 30, 2015 December 31, 2014 Environmental contingent liabilities, current $ 35 $ 35 Environmental contingent liabilities, long-term 304 310 Total $ 339 $ 345 The Company also has contractual asset retirement obligations other than for environmental liabilities. Eastman's non-environmental asset retirement obligations are primarily for the future closure of leased manufacturing assets at Pace, Florida and Oulu, Finland acquired from Taminco. These accrued non-environmental asset retirement obligations were $43 million and $ 44 million at September 30, 2015 and December 31, 2014, respectively.

STOCKHOLDERS' EQUITY (Tables)

STOCKHOLDERS' EQUITY (Tables)	9 Months Ended
	Sep. 30, 2015
Stockholders' Equity Note [Abstract]
Reconciliation of the changes in stockholders' equity	A reconciliation of the changes in stockholders' equity for first nine months 2015 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 Attributed to Eastman $ Noncontrolling Interest $ Total Stockholders' Equity $ Balance at December 31, 2014 2 1,817 4,545 (277 ) (2,577 ) 3,510 80 3,590 Net Earnings — — 724 — — 724 5 729 Cash Dividends Declared (1) ($1.20 per share) — — (179 ) — — (179 ) — (179 ) Other Comprehensive Income — — — (169 ) — (169 ) — (169 ) Share-Based Compensation Expense (2) — 30 — — — 30 — 30 Stock Option Exercises — 7 — — — 7 — 7 Other (3) — 2 — — — 2 — 2 Share Repurchase — — — — (48 ) (48 ) — (48 ) Distributions to Noncontrolling Interest — — — — — — (6 ) (6 ) Balance at September 30, 2015 2 1,856 5,090 (446 ) (2,625 ) 3,877 79 3,956
Accumulated Other Comprehensive Income (Loss)	(Dollars in millions) Cumulative Translation Adjustment Benefit Plans Unrecognized Prior Service Credits Unrealized Gains (Losses) on Derivative Instruments Unrealized Losses on Investments Accumulated Other Comprehensive Income (Loss) Balance at December 31, 2013 $ 133 $ 78 $ (39 ) $ (1 ) $ 171 Period change (201 ) (17 ) (230 ) — (448 ) Balance at December 31, 2014 (68 ) 61 (269 ) (1 ) (277 ) Period change (183 ) (15 ) 29 — (169 ) Balance at September 30, 2015 $ (251 ) $ 46 $ (240 ) $ (1 ) $ (446 )
Schedule of components of comprehensive income (loss) before tax and net of tax effects	Components of other comprehensive income recognized in the Unaudited Consolidated Statements of Earnings, Comprehensive Income and Retained Earnings are presented below, before tax and net of tax effects: Third Quarter 2015 2014 (Dollars in millions) Before Tax Net of Tax Before Tax Net of Tax Other comprehensive income (loss) Change in cumulative translation adjustment $ (47 ) $ (47 ) $ (127 ) $ (127 ) Defined benefit pension and other postretirement benefit plans: Amortization of unrecognized prior service credits included in net periodic costs (1) (7 ) (4 ) (7 ) (4 ) Derivatives and hedging: (2) Unrealized gain (loss) (107 ) (66 ) 58 36 Reclassification adjustment for (gain) loss included in net income 55 34 — — Change in derivatives and hedging (52 ) (32 ) 58 36 Total other comprehensive income (loss) $ (106 ) $ (83 ) $ (76 ) $ (95 ) First Nine Months 2015 2014 (Dollars in millions) Before Tax Net of Tax Before Tax Net of Tax Other comprehensive income (loss) Change in cumulative translation adjustment $ (183 ) $ (183 ) $ (115 ) $ (114 ) Defined benefit pension and other postretirement benefit plans: Amortization of unrecognized prior service credits included in net periodic costs (1) (21 ) (15 ) (21 ) (12 ) Derivatives and hedging: (2) Unrealized gain (loss) (44 ) (27 ) 67 42 Reclassification adjustment for (gain) loss included in net income 90 56 (14 ) (9 ) Change in derivatives and hedging 46 29 53 33 Total other comprehensive income (loss) $ (158 ) $ (169 ) $ (83 ) $ (93 )

EARNINGS AND DIVIDENDS PER SH33

EARNINGS AND DIVIDENDS PER SHARE (Tables)	9 Months Ended
	Sep. 30, 2015
Earnings Per Share [Abstract]
Earnings per share, basic and diluted	The following table sets forth the computation of basic and diluted earnings per share ("EPS") from continuing operations: Third Quarter First Nine Months 2015 2014 2015 2014 (In millions, except per share amounts) Numerator Earnings attributable to Eastman: Earnings from continuing operations, net of tax $ 256 $ 210 $ 724 $ 733 Denominator Weighted average shares used for basic EPS 148.6 148.7 148.6 149.8 Dilutive effect of stock options and other awards 1.2 1.6 1.2 1.7 Weighted average shares used for diluted EPS 149.8 150.3 149.8 151.5 EPS from continuing operations (1) Basic $ 1.73 $ 1.41 $ 4.87 $ 4.89 Diluted $ 1.71 $ 1.39 $ 4.83 $ 4.83

ASSETS IMPAIRMENTS AND RESTRU34

ASSETS IMPAIRMENTS AND RESTRUCTURING CHARGES, NET (Tables)	9 Months Ended
	Sep. 30, 2015
Restructuring Costs and Asset Impairment Charges [Abstract]
Changes to restructuring reserve and related activities	The following table summarizes the changes in asset impairments and restructuring charges and gains, the non-cash reductions attributable to asset impairments, and the cash reductions in restructuring reserves for severance costs and site closure costs paid in first nine months 2015 and full year 2014 : (Dollars in millions) Balance at January 1, 2015 Provision/ Adjustments Non-cash Reductions Cash Reductions Balance at September 30, 2015 Non-cash charges $ — $ 107 $ (107 ) $ — $ — Severance costs 13 15 2 (22 ) 8 Site closure and restructuring costs 15 8 2 (13 ) 12 Total $ 28 $ 130 $ (103 ) $ (35 ) $ 20 (Dollars in millions) Balance at January 1, 2014 Provision/ Adjustments Non-cash Reductions Cash Reductions Balance at December 31, 2014 Non-cash charges $ — $ 52 $ (52 ) $ — $ — Severance costs 22 13 — (22 ) 13 Site closure and restructuring costs 14 12 (4 ) (7 ) 15 Total $ 36 $ 77 $ (56 ) $ (29 ) $ 28

SUPPLEMENTAL CASH FLOW INFORM35

SUPPLEMENTAL CASH FLOW INFORMATION (Tables)	9 Months Ended
	Sep. 30, 2015
Supplemental Cash Flow Information [Abstract]
Schedule of Cash Flow, Supplemental Disclosures	Included in the line item "Other items, net" of the "Operating activities" section of the Unaudited Consolidated Statements of Cash Flows are the following changes to Unaudited Consolidated Statement of Financial Position line items: (Dollars in millions) First Nine Months 2015 2014 Other current assets $ 29 $ 23 Other noncurrent assets 43 25 Payables and other current liabilities 92 52 Long-term liabilities and equity (65 ) (32 ) Total $ 99 $ 68

SEGMENT INFORMATION (Tables)

SEGMENT INFORMATION (Tables)	9 Months Ended
	Sep. 30, 2015
Segment Reporting [Abstract]
Segment Information Disclosure	Third Quarter (Dollars in millions) 2015 2014 Sales Additives & Functional Products $ 602 $ 458 Adhesives & Plasticizers 305 347 Advanced Materials 624 604 Fibers 320 346 Specialty Fluids & Intermediates 584 650 Total Sales by Segment 2,435 2,405 Other 12 8 Total Sales $ 2,447 $ 2,413 First Nine Months (Dollars in millions) 2015 2014 Sales Additives & Functional Products $ 1,827 $ 1,333 Adhesives & Plasticizers 942 1,050 Advanced Materials 1,832 1,816 Fibers 903 1,086 Specialty Fluids & Intermediates 1,883 1,884 Total Sales by Segment 7,387 7,169 Other 36 9 Total Sales $ 7,423 $ 7,178 Third Quarter (Dollars in millions) 2015 2014 Operating Earnings (Loss) Additives & Functional Products $ 126 $ 37 Adhesives & Plasticizers 74 52 Advanced Materials 98 76 Fibers 102 112 Specialty Fluids & Intermediates 48 90 Total Operating Earnings by Segment 448 367 Other Growth initiatives and businesses not allocated to segments (18 ) (18 ) Pension and other postretirement benefit income (expense), net not allocated to operating segments 11 3 Acquisition integration, transaction, and restructuring costs (9 ) (14 ) Total Operating Earnings $ 432 $ 338 First Nine Months (Dollars in millions) 2015 2014 Operating Earnings (Loss) Additives & Functional Products $ 365 $ 236 Adhesives & Plasticizers 190 155 Advanced Materials 301 217 Fibers 188 352 Specialty Fluids & Intermediates 233 248 Total Operating Earnings by Segment 1,277 1,208 Other Growth initiatives and businesses not allocated to segments (66 ) (46 ) Pension and other postretirement benefit income (expense), net not allocated to operating segments 28 9 Acquisition integration, transaction, and restructuring costs (27 ) (36 ) Total Operating Earnings $ 1,212 $ 1,135 September 30, December 31, (Dollars in millions) 2015 2014 Assets by Segment (1) Additives & Functional Products $ 4,813 $ 4,900 Adhesives & Plasticizers 960 1,011 Advanced Materials 4,249 4,235 Fibers 997 986 Specialty Fluids & Intermediates 3,603 3,710 Total Assets by Segment 14,622 14,842 Corporate Assets 1,258 1,230 Total Assets $ 15,880 $ 16,072 (1) The chief operating decision maker holds segment management accountable for accounts receivable, inventory, fixed assets, goodwill, and intangible assets.

BASIS OF PRESENTATION Basis of

BASIS OF PRESENTATION Basis of Presentation (Details) € in Millions, $ in Millions	3 Months Ended	9 Months Ended	12 Months Ended
	Sep. 30, 2015USD ($)	Sep. 30, 2015USD ($)	Dec. 31, 2014USD ($)	Sep. 30, 2015EUR (€)
Accounting Policies [Abstract]
Line of Credit Facility, Capacity Available for Trade Purchases	$ 177	$ 177		€ 158
Percentage Of Sale On Receivables		85.00%
Receivable Sold Under Factoring Arrangement	245	$ 780	$ 70
Cash Drawn From Facility	$ 117	$ 117	$ 105
Concentration Risk, Credit Risk, Financial Instrument, Maximum Exposure, Percent		10.00%

ACQUISITIONS ACQUISITIONS (Deta

ACQUISITIONS ACQUISITIONS (Details) - USD ($) $ in Millions	Dec. 11, 2014	Dec. 05, 2014	Sep. 30, 2015	Jun. 30, 2015	Sep. 30, 2015	Dec. 31, 2014
Assets Acquired and Liabilities Assumed, Net [Abstract]
Goodwill			$ 4,482		$ 4,482	$ 4,486
Taminco [Member]
Acquired Indefinite-lived Intangible Assets [Line Items]
Business Combination, Consideration Transferred		$ 2,800
Payments to Acquire Businesses, Gross		1,700
Repayments of Other Long-term Debt		1,100
Acquisition Transaction, Integration, and Other Costs [Abstract]
Business Acquisition, Transaction Costs						15
Integration Costs			4		15
Acquisition Pre-Close Financing costs						$ 13
Taminco [Member] | Customer Relationships [Member]
Assets Acquired and Liabilities Assumed, Net [Abstract]
Intangible assets		604
Acquisition Transaction, Integration, and Other Costs [Abstract]
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life						24 years
Taminco [Member] | Developed Technology Rights [Member]
Assets Acquired and Liabilities Assumed, Net [Abstract]
Intangible assets		205
Acquisition Transaction, Integration, and Other Costs [Abstract]
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life						17 years
Taminco [Member] | Contracts [Member]
Assets Acquired and Liabilities Assumed, Net [Abstract]
Intangible assets		180
Acquisition Transaction, Integration, and Other Costs [Abstract]
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life						5 years
Taminco [Member] | All Intangible Assets [Member]
Assets Acquired and Liabilities Assumed, Net [Abstract]
Intangible assets		989
Taminco [Member] | Scenario, Previously Reported [Member]
Assets Acquired and Liabilities Assumed, Net [Abstract]
Current assets		266
Properties and equipment		658
Intangible assets		1,002
Other noncurrent assets		37
Goodwill		1,509
Current liabilities		(161)
Long-term liabilities		(546)
Total purchase price, net of cash acquired		2,765
Taminco [Member] | Scenario, Adjustment [Member]
Assets Acquired and Liabilities Assumed, Net [Abstract]
Current assets		(3)
Properties and equipment		(3)
Intangible assets		(13)
Other noncurrent assets		1
Goodwill		32
Current liabilities		1
Long-term liabilities		(15)
Total purchase price, net of cash acquired		0
Taminco [Member] | Scenario, Actual [Member]
Assets Acquired and Liabilities Assumed, Net [Abstract]
Current assets		263
Properties and equipment		655
Intangible assets		989
Other noncurrent assets		38
Goodwill		1,541
Current liabilities		(160)
Long-term liabilities		(561)
Total purchase price, net of cash acquired		2,765
Taminco [Member] | Additives And Functional Products [Member]
Assets Acquired and Liabilities Assumed, Net [Abstract]
Goodwill		918
Taminco [Member] | Specialty Fluids And Intermediates [Member]
Assets Acquired and Liabilities Assumed, Net [Abstract]
Goodwill		623
Taminco [Member] | All Operating Segments [Member]
Assets Acquired and Liabilities Assumed, Net [Abstract]
Goodwill		$ 1,541
Commonwealth [Member]
Acquired Indefinite-lived Intangible Assets [Line Items]
Business Combination, Consideration Transferred	$ 438
Assets Acquired and Liabilities Assumed, Net [Abstract]
Current assets	51
Properties and equipment	38
Intangible assets	125
Goodwill	274
Long-term liabilities	(50)
Total purchase price, net of cash acquired	438
Acquisition Transaction, Integration, and Other Costs [Abstract]
Business Acquisition, Transaction Costs						$ 7
Integration Costs			$ 1		$ 5
Business Combinations, Additional Costs Of Acquired Inventory, Net				$ 7
Commonwealth [Member] | Customer Relationships [Member]
Assets Acquired and Liabilities Assumed, Net [Abstract]
Intangible assets	72
Acquisition Transaction, Integration, and Other Costs [Abstract]
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life						14 years
Commonwealth [Member] | Developed Technology Rights [Member]
Assets Acquired and Liabilities Assumed, Net [Abstract]
Intangible assets	41
Acquisition Transaction, Integration, and Other Costs [Abstract]
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life						18 years
Commonwealth [Member] | Trade Names [Member]
Assets Acquired and Liabilities Assumed, Net [Abstract]
Intangible assets	12
Commonwealth [Member] | All Intangible Assets [Member]
Assets Acquired and Liabilities Assumed, Net [Abstract]
Intangible assets	$ 125

INVENTORIES (Details)

INVENTORIES (Details) - USD ($) $ in Millions	Sep. 30, 2015	Dec. 31, 2014
At FIFO or average cost (approximates current cost) [Abstract]
Finished goods	$ 1,116	$ 1,130
Work in process	214	288
Raw materials and supplies	510	553
Total inventories	1,840	1,971
LIFO Reserve	(356)	(462)
Total inventories	$ 1,484	$ 1,509
Inventories valued on the LIFO method	55.00%	55.00%

PAYABLES AND OTHER CURRENT LI40

PAYABLES AND OTHER CURRENT LIABILITIES (Details) - USD ($) $ in Millions	Sep. 30, 2015	Dec. 31, 2014
Payables and Accruals [Abstract]
Trade creditors	$ 685	$ 827
Derivative hedging liability	209	227
Accrued payrolls, vacation, and variable-incentive compensation	180	191
Accrued taxes	97	66
Environmental contingent liabilities, current portion	35	35
Other	378	410
Total payables and other current liabilities	$ 1,549	$ 1,721

PROVISION FOR INCOME TAXES PROV

PROVISION FOR INCOME TAXES PROVISION FOR INCOME TAXES (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Income Tax Disclosure [Abstract]
Provision for income taxes from continuing operations	$ 95	$ 86	$ 283	$ 281
Effective tax rate	27.00%	29.00%	28.00%	28.00%

BORROWINGS Part 1 (Details) Sch

BORROWINGS Part 1 (Details) Schedule of Long-term Debt Instruments - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2015	Dec. 31, 2014
Debt Instrument [Line Items]
Total Borrowings	$ 7,280	$ 7,549
Borrowings due within one year	251	301
Long-term borrowings	7,029	7,248
3% notes due 2015 [Member]
Debt Instrument [Line Items]
Long-term Debt	$ 250	250
Debt Instrument Maturity Date Year	2,015
Debt Instrument, Interest Rate, Stated Percentage	3.00%
2.4% notes due 2017 [Member]
Debt Instrument [Line Items]
Long-term Debt	$ 999	998
Debt Instrument Maturity Date Year	2,017
Debt Instrument, Interest Rate, Stated Percentage	2.40%
6.30% notes due 2018 [Member]
Debt Instrument [Line Items]
Long-term Debt	$ 167	169
Debt Instrument Maturity Date Year	2,018
Debt Instrument, Interest Rate, Stated Percentage	6.30%
5.5% notes due 2019 [Member]
Debt Instrument [Line Items]
Long-term Debt	$ 250	250
Debt Instrument Maturity Date Year	2,019
Debt Instrument, Interest Rate, Stated Percentage	5.50%
2.7% notes due 2020 [Member]
Debt Instrument [Line Items]
Long-term Debt	$ 799	798
Debt Instrument Maturity Date Year	2,020
Debt Instrument, Interest Rate, Stated Percentage	2.70%
4.5% notes due 2021 [Member]
Debt Instrument [Line Items]
Long-term Debt	$ 250	250
Debt Instrument Maturity Date Year	2,021
Debt Instrument, Interest Rate, Stated Percentage	4.50%
3.6% notes due 2022 [Member]
Debt Instrument [Line Items]
Long-term Debt	$ 903	903
Debt Instrument Maturity Date Year	2,022
Debt Instrument, Interest Rate, Stated Percentage	3.60%
7 1/4% debentures due 2024 [Member]
Debt Instrument [Line Items]
Long-term Debt	$ 244	244
Debt Instrument Maturity Date Year	2,024
Debt Instrument, Interest Rate, Stated Percentage	7.25%
7 5/8% debentures due 2024 [Member]
Debt Instrument [Line Items]
Long-term Debt	$ 54	54
Debt Instrument Maturity Date Year	2,024
Debt Instrument, Interest Rate, Stated Percentage	7.625%
3.8% notes due 2025 [Member]
Debt Instrument [Line Items]
Long-term Debt	$ 796	796
Debt Instrument Maturity Date Year	2,025
Debt Instrument, Interest Rate, Stated Percentage	3.80%
7.60% debentures due 2027 [Member]
Debt Instrument [Line Items]
Long-term Debt	$ 222	222
Debt Instrument Maturity Date Year	2,027
Debt Instrument, Interest Rate, Stated Percentage	7.60%
4.8% notes due 2042 [Member]
Debt Instrument [Line Items]
Long-term Debt	$ 497	497
Debt Instrument Maturity Date Year	2,042
Debt Instrument, Interest Rate, Stated Percentage	4.80%
4.65% notes due 2044 [Member]
Debt Instrument [Line Items]
Long-term Debt	$ 877	877
Debt Instrument Maturity Date Year	2,044
Debt Instrument, Interest Rate, Stated Percentage	4.65%
Credit Facilities and commercial paper [Member]
Debt Instrument [Line Items]
Long-term Debt	$ 967	1,235
Capital Lease Obligations [Member]
Debt Instrument [Line Items]
Long-term Debt	$ 5	$ 6

BORROWINGS Part 2 (Details) Cre

BORROWINGS Part 2 (Details) Credit Facility and Commercial Paper Borrowings - USD ($) $ in Millions	3 Months Ended		9 Months Ended	12 Months Ended
	Sep. 30, 2015	Jun. 30, 2014	Sep. 30, 2015	Dec. 31, 2014
Term Loan Agreement [Member]
Credit Facilities [Abstract]
Debt Instrument, Term			5 years
Credit Facility, Borrowing Capacity	$ 1,000		$ 1,000
Line of Credit Facility, Maximum Month-end Outstanding Amount			$ 350	$ 1,000
Line of Credit Facility, Interest Rate During Period			1.44%	1.41%
Repayments of Lines of Credit				$ 25
Long term commercial paper [Member]
Credit Facilities [Abstract]
Long-term Commercial Paper, Noncurrent	$ 392		$ 392	$ 235
Debt, Weighted Average Interest Rate	0.50%		0.50%	0.47%
A/R Facility [Member]
Credit Facilities [Abstract]
Credit Facility, Borrowing Capacity	$ 250		$ 250
Line of Credit Facility, Interest Rate During Period			0.95%
Line of Credit Facility, Expiration Date			Apr. 30, 2018
Borrowings under the A/R facility	225		$ 225
Repayments of Lines of Credit	25	$ 125
Revolving Credit Facility [Member]
Credit Facilities [Abstract]
Line of Credit Facility, Maximum Month-end Outstanding Amount			$ 0
Line of Credit Facility, Expiration Date			Oct. 31, 2020
Credit and A/R Facility
Credit Facilities [Abstract]
Credit Facility, Borrowing Capacity	883		$ 883	$ 1,265
Revolving Credit Facility [Member]
Credit Facilities [Abstract]
Credit Facility, Borrowing Capacity	$ 1,250		$ 1,250

BORROWINGS Part 3 (Details) Fai

BORROWINGS Part 3 (Details) Fair Value - USD ($) $ in Millions	Sep. 30, 2015	Dec. 31, 2014
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Long-term borrowings	$ 7,029	$ 7,248
Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Long-term Borrowings, Fair Value	7,146	7,557
Fair Value, Inputs, Level 1 [Member] | Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Long-term Borrowings, Fair Value	6,176	6,366
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Long-term Borrowings, Fair Value	970	1,191
Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Long-term Borrowings, Fair Value	$ 0	$ 0

DERIVATIVES Part 1 (Details)

DERIVATIVES Part 1 (Details) T in Thousands, € in Millions, ¥ in Millions, bbl in Millions, MMBTU in Millions, $ in Millions

9 Months Ended

Sep. 30, 2015bbl

Sep. 30, 2015T

Sep. 30, 2015MMBTU

Sep. 30, 2015JPY (¥)

Sep. 30, 2015USD ($)

Sep. 30, 2015EUR (€)

Dec. 31, 2014bbl

Dec. 31, 2014T

Dec. 31, 2014MMBTU

Dec. 31, 2014JPY (¥)

Dec. 31, 2014USD ($)

Dec. 31, 2014EUR (€)

Hedging Programs [Abstract]

Objectives for Using Derivative Instruments

The Company is exposed to market risks, such as changes in foreign currency exchange rates, commodity prices, and interest rates. To mitigate these market risks and their effects on the cash flows of the underlying transaction, the Company uses various derivative financial instruments when appropriate in accordance with the Company's hedging strategy and policies. Designation is performed on a specific exposure basis to support hedge accounting. The changes in fair value of these hedging instruments are offset in part or in whole by corresponding changes in the anticipated cash flows of the underlying exposures being hedged. The Company does not enter into derivative transactions for speculative purposes.

Derivative [Line Items]

Derivative Asset, Fair Value, Gross Asset

$ 150

$ 134

Designated as Hedging Instrument [Member]

Derivative [Line Items]

Cash Flow Hedge Derivative Instrument Liabilities at Fair Value

463

508

Designated as Hedging Instrument [Member] | Fair Value Hedging [Member] | Interest Rate Contract [Member]

Derivative [Line Items]

Derivative, Notional Amount

275

275

Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Commodity Contract [Member] | Raw Materials [Member]

Derivative [Line Items]

Derivative, Nonmonetary Notional Amount

25

8

33

30

Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Commodity Contract [Member] | Energy Related Derivative [Member]

Derivative [Line Items]

Derivative, Nonmonetary Notional Amount | MMBTU

28

25

Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Commodity Contract [Member] | Contract ethylene sales contracts [Member]

Derivative [Line Items]

Derivative, Nonmonetary Notional Amount | T

0

14

Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Foreign Exchange Contract [Member] | Euro Member Countries, Euro

Derivative [Line Items]

Derivative, Notional Amount

795

€ 696

1,000

€ 810

Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Foreign Exchange Contract [Member] | Japan, Yen

Derivative [Line Items]

Derivative, Notional Amount

¥ 3,000

25

¥ 4,800

40

Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Interest Rate Swap [Member]

Derivative [Line Items]

Derivative, Notional Amount

$ 500

$ 500

DERIVATIVES Part 2 (Details)

DERIVATIVES Part 2 (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Derivatives, Fair Value [Line Items]
Derivative Assets	$ 160		$ 160
Derivative Liabilities	461		461
Derivative Assets [Abstract]
Derivative Asset, Fair Value, Gross Asset	150		150		$ 134
Designated as Hedging Instrument [Member]
Derivative Liabilities [Abstract]
Cash Flow Hedge Derivative Instrument Liabilities at Fair Value	463		463		508
Commodity Contract [Member] | Designated as Hedging Instrument [Member] | Other Current Assets [Member]
Derivative Assets [Abstract]
Cash Flow Hedge Derivative Instrument Assets at Fair Value	0		0		2
Commodity Contract [Member] | Designated as Hedging Instrument [Member] | Other Current Liabilities [Member]
Derivative Liabilities [Abstract]
Cash Flow Hedge Derivative Instrument Liabilities at Fair Value	177		177		193
Commodity Contract [Member] | Designated as Hedging Instrument [Member] | Other Noncurrent Liabilities [Member]
Derivative Liabilities [Abstract]
Cash Flow Hedge Derivative Instrument Liabilities at Fair Value	250		250		289
Foreign Exchange Contract [Member] | Designated as Hedging Instrument [Member] | Other Current Assets [Member]
Derivative Assets [Abstract]
Cash Flow Hedge Derivative Instrument Assets at Fair Value	66		66		61
Foreign Exchange Contract [Member] | Designated as Hedging Instrument [Member] | Other Noncurrent Assets [Member]
Derivative Assets [Abstract]
Cash Flow Hedge Derivative Instrument Assets at Fair Value	84		84		71
Foreign Exchange Contract [Member] | Designated as Hedging Instrument [Member] | Other Current Liabilities [Member]
Derivative Liabilities [Abstract]
Cash Flow Hedge Derivative Instrument Liabilities at Fair Value	2		2		10
Interest Rate Contract [Member] | Designated as Hedging Instrument [Member] | Other Noncurrent Assets [Member]
Derivative Assets [Abstract]
Fair Value Hedge Derivative Instrument Assets at Fair Value	12		12		5
Interest Rate Swap [Member] | Designated as Hedging Instrument [Member] | Other Noncurrent Liabilities [Member]
Derivative Liabilities [Abstract]
Cash Flow Hedge Derivative Instrument Liabilities at Fair Value	34		34		16
Fair Value, Measurements, Recurring [Member]
Derivative Assets [Abstract]
Derivative Asset, Fair Value, Gross Asset	162		162		139
Derivative Liabilities [Abstract]
Derivative Liability, Fair Value, Gross Liability	(463)		(463)		(508)
Derivative, Fair Value, Net	(301)		(301)		(369)
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member]
Derivative Assets [Abstract]
Derivative Asset, Fair Value, Gross Asset	0		0		0
Derivative Liabilities [Abstract]
Derivative Liability, Fair Value, Gross Liability	0		0		0
Derivative, Fair Value, Net	0		0		0
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member]
Derivative Assets [Abstract]
Derivative Asset, Fair Value, Gross Asset	162		162		137
Derivative Liabilities [Abstract]
Derivative Liability, Fair Value, Gross Liability	(463)		(463)		(508)
Derivative, Fair Value, Net	(301)		(301)		(371)
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member]
Derivative Assets [Abstract]
Derivative Asset, Fair Value, Gross Asset	0		0		2
Derivative Liabilities [Abstract]
Derivative Liability, Fair Value, Gross Liability	0		0		0
Derivative, Fair Value, Net	0		0		$ 2
Fair Value Hedging [Member] | Interest Expense [Member] | Interest Rate Contract [Member]
Derivatives, Fair Value [Line Items]
Gain (Loss) on Fair Value Hedges Recognized in Earnings	$ 3	$ 2	$ 10	$ 3

DERIVATIVES Part 3 (Details)

DERIVATIVES Part 3 (Details) - USD ($) $ in Millions	3 Months Ended				9 Months Ended				12 Months Ended
	Sep. 30, 2015		Sep. 30, 2014		Sep. 30, 2015		Sep. 30, 2014		Dec. 31, 2014
Derivative Instruments, Gain (Loss) [Line Items]
Objectives for Using Derivative Instruments					The Company is exposed to market risks, such as changes in foreign currency exchange rates, commodity prices, and interest rates. To mitigate these market risks and their effects on the cash flows of the underlying transaction, the Company uses various derivative financial instruments when appropriate in accordance with the Company's hedging strategy and policies. Designation is performed on a specific exposure basis to support hedge accounting. The changes in fair value of these hedging instruments are offset in part or in whole by corresponding changes in the anticipated cash flows of the underlying exposures being hedged. The Company does not enter into derivative transactions for speculative purposes.
Amount After Tax of Gain (Loss) Recognized in Other Comprehensive Income On Derivatives, Effective Portion [Abstract]
Unrealized Gains (Losses) on Derivative Instruments	$ (32)	[1]	$ 36	[1]	$ 29	[1]	$ 33	[1]	$ (230)
Pre-tax Amount of Gain (Loss) reclassified From Accumulated Other Comprehensive Income Into Income (Effective Portion) [Abstract]
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net	(54)		1		(90)		15
Hedging Summary [Abstract]
Monetized positions and mark to market (gain) loss in accumulated other comprehensive income before tax	386		8		386		8
Price Risk Cash Flow Hedge Unrealized (Gain) Loss to be Reclassified During Next 12 Months	142				142
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net	(11)		1		(23)		4
Commodity Contract [Member] | Cash Flow Hedging [Member]
Amount After Tax of Gain (Loss) Recognized in Other Comprehensive Income On Derivatives, Effective Portion [Abstract]
Unrealized Gains (Losses) on Derivative Instruments	(6)		(22)		21		(27)
Commodity Contract [Member] | Cash Flow Hedging [Member] | Cost of Sales [Member]
Pre-tax Amount of Gain (Loss) reclassified From Accumulated Other Comprehensive Income Into Income (Effective Portion) [Abstract]
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net	(74)		(1)		(152)		18
Commodity Contract [Member] | Cash Flow Hedging [Member] | Sales [Member]
Pre-tax Amount of Gain (Loss) reclassified From Accumulated Other Comprehensive Income Into Income (Effective Portion) [Abstract]
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net	1		0		4		0
Foreign Exchange Contract [Member] | Cash Flow Hedging [Member]
Amount After Tax of Gain (Loss) Recognized in Other Comprehensive Income On Derivatives, Effective Portion [Abstract]
Unrealized Gains (Losses) on Derivative Instruments	(11)		57		16		59
Foreign Exchange Contract [Member] | Cash Flow Hedging [Member] | Sales [Member]
Pre-tax Amount of Gain (Loss) reclassified From Accumulated Other Comprehensive Income Into Income (Effective Portion) [Abstract]
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net	20		4		63		3
Forward Starting Interest Rate Swap [Member] | Cash Flow Hedging [Member]
Amount After Tax of Gain (Loss) Recognized in Other Comprehensive Income On Derivatives, Effective Portion [Abstract]
Unrealized Gains (Losses) on Derivative Instruments	(15)		1		(8)		1
Forward Starting Interest Rate Swap [Member] | Cash Flow Hedging [Member] | Net Interest Expense
Pre-tax Amount of Gain (Loss) reclassified From Accumulated Other Comprehensive Income Into Income (Effective Portion) [Abstract]
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net	$ (1)		$ (2)		$ (5)		$ (6)
[1]	For additional information regarding the impact of reclassifications into earnings, refer to Note 7, "Derivatives".

RETIREMENT PLANS (Details)

RETIREMENT PLANS (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items]
Pension Contributions			$ 90	$ 47
United States Pension Plans of US Entity, Defined Benefit [Member]
Components of net periodic benefit cost [Abstract]
Service cost	$ 10	$ 11	29	31
Interest cost	21	24	65	74
Expected return on assets	(38)	(36)	(111)	(107)
Prior service credit	(1)	(1)	(3)	(3)
Curtailment gain			0	0
Mark-to-market pension and other postretirement benefit loss			0	0
Net periodic benefit (credit) cost	(8)	(2)	(20)	(5)
Foreign Pension Plans, Defined Benefit [Member]
Components of net periodic benefit cost [Abstract]
Service cost	3	4	11	11
Interest cost	7	7	20	23
Expected return on assets	(9)	(9)	(28)	(28)
Prior service credit	0	0	0	0
Curtailment gain			(7)	0
Mark-to-market pension and other postretirement benefit loss			2	0
Net periodic benefit (credit) cost	1	2	(2)	6
Post Retirement Welfare Plans [Member]
Components of net periodic benefit cost [Abstract]
Service cost	2	2	6	6
Interest cost	9	11	29	33
Expected return on assets	(1)	(2)	(4)	(5)
Prior service credit	(6)	(6)	(18)	(18)
Curtailment gain			0	0
Mark-to-market pension and other postretirement benefit loss			0	0
Net periodic benefit (credit) cost	$ 4	$ 5	$ 13	$ 16

COMMITMENTS (Details)

COMMITMENTS (Details) $ in Millions	9 Months Ended
	Sep. 30, 2015USD ($)
Commitments and Contingencies Disclosure [Abstract]
Purchase Obligation	$ 1,600
Purchase obligations [Abstract]
Long-term Purchase Commitment, Period	30 years
Lease commitments [Abstract]
Operating Lease Commitments, Cancelable Noncancelable and Month-to-month	$ 272
Lessee Leasing Arrangements, Operating Leases, Term of Contract	45 years
Percentage of Operating Lease Commitments related to real property	50.00%
Percentage of Operating Lease Commitments related to railcars	45.00%
Percentage of Operating Lease Commitments related to machinery and equipment	5.00%
Guarantees [Abstract]
Operating Lease Residual Value Guarantees	$ 121
Term, other guarantees	30
Maximum potential future payment, other guarantees	$ 29

ENVIRONMENTAL MATTERS (Details)

ENVIRONMENTAL MATTERS (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2015	Dec. 31, 2014
Site Contingency [Line Items]
Amount Accrued to Date for Environmental Contingent Liabilities	$ 345	$ 339	$ 345
Portion Of Environmental Reserve Related To Previously Closed, Impaired, And Divested Sites		8	10
Accrual for Environmental Loss Contingencies [Roll Forward]
Beginning of period	345
End of period	339
Accrual for Environmental Loss Contingencies, Balance Sheet Classification [Abstract]
Accrued Environmental Loss Contingencies, Current		35	35
Accrued Environmental Loss Contingencies, Noncurrent		304	310
Amount Accrued to Date for Environmental Contingent Liabilities	345	339	345
Environmental Remediation [Member]
Site Contingency [Line Items]
Amount Accrued to Date for Environmental Contingent Liabilities	324	315	324
Loss Contingency, Range of Possible Loss, Minimum		315	324
Loss Contingency, Range of Possible Loss, Maximum		526	548
Accrual for Environmental Loss Contingencies [Roll Forward]
Beginning of period	324
Accrual for Environmental Loss Contingencies, Increase (Decrease) for Revision in Estimates	11
Cash reductions	(20)
End of period	315
Accrual for Environmental Loss Contingencies, Balance Sheet Classification [Abstract]
Amount Accrued to Date for Environmental Contingent Liabilities	$ 324	315	324
Environmental ARO [Member]
Site Contingency [Line Items]
Best Estimate Accrued to-date For Asset Retirement Obligation		24	21
Non Environmental ARO [Member]
Site Contingency [Line Items]
Best Estimate Accrued to-date For Asset Retirement Obligation		$ 43	$ 44

STOCKHOLDERS' EQUITY STOCKHOLDE

STOCKHOLDERS' EQUITY STOCKHOLDERS' EQUITY Part 1 (Details) - USD ($) $ / shares in Units, $ in Millions		3 Months Ended		9 Months Ended			12 Months Ended
		Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015		Sep. 30, 2014	Dec. 31, 2014
Stockholders' Equity Note [Abstract]
Dividends, Per Share		$ 0.40	$ 0.35	$ 1.20		$ 1.05
Stockholders' Equity Attributable to Parent		$ 3,877		$ 3,877			$ 3,510
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest		3,956		3,956			3,590
Net earnings attributable to Eastman		256	$ 210	724		$ 735
Net earnings attributable to noncontrolling interest		2	2	5		5
Net earnings including noncontrolling interest		258	212	729		740
Cash dividends declared		(59)	(53)	(179)	[1]	(159)
Total other comprehensive income (loss), net of tax		(83)	$ (95)	(169)		$ (93)	(448)
Share-based Compensation Expense	[2]			30
Stock Option Exercises				7
Other	[3]			2
Share Repurchase				(48)
Distributions to Noncontrollling Interest				(6)
Common Stock [Member]
Stockholders' Equity Attributable to Parent		2		2			2
Net earnings attributable to Eastman				0
Cash dividends declared	[1]			0
Total other comprehensive income (loss), net of tax				0
Share-based Compensation Expense	[2]			0
Stock Option Exercises				0
Other	[3]			0
Share Repurchase				0
Distributions to Noncontrollling Interest				0
Additional Paid-in Capital [Member]
Stockholders' Equity Attributable to Parent		1,856		1,856			1,817
Net earnings attributable to Eastman				0
Cash dividends declared	[1]			0
Total other comprehensive income (loss), net of tax				0
Share-based Compensation Expense	[2]			30
Stock Option Exercises				7
Other	[3]			2
Share Repurchase				0
Distributions to Noncontrollling Interest				0
Retained Earnings [Member]
Stockholders' Equity Attributable to Parent		5,090		5,090			4,545
Net earnings attributable to Eastman				724
Cash dividends declared	[1]			(179)
Total other comprehensive income (loss), net of tax				0
Share-based Compensation Expense	[2]			0
Stock Option Exercises				0
Other	[3]			0
Share Repurchase				0
Distributions to Noncontrollling Interest				0
Accumulated Other Comprehensive Income (Loss) [Member]
Stockholders' Equity Attributable to Parent		(446)		(446)			(277)
Net earnings attributable to Eastman				0
Cash dividends declared	[1]			0
Total other comprehensive income (loss), net of tax				(169)
Share-based Compensation Expense	[2]			0
Stock Option Exercises				0
Other	[3]			0
Share Repurchase				0
Distributions to Noncontrollling Interest				0
Treasury Stock [Member]
Stockholders' Equity Attributable to Parent		(2,625)		(2,625)			(2,577)
Net earnings attributable to Eastman				0
Cash dividends declared	[1]			0
Total other comprehensive income (loss), net of tax				0
Share-based Compensation Expense	[2]			0
Stock Option Exercises				0
Other	[3]			0
Share Repurchase				(48)
Distributions to Noncontrollling Interest				0
Parent [Member]
Stockholders' Equity Attributable to Parent		3,877		3,877			3,510
Net earnings attributable to Eastman				724
Cash dividends declared	[1]			(179)
Total other comprehensive income (loss), net of tax				(169)
Share-based Compensation Expense	[2]			30
Stock Option Exercises				7
Other	[3]			2
Share Repurchase				(48)
Distributions to Noncontrollling Interest				0
Noncontrolling Interest [Member]
Stockholders' Equity Attributable to Parent		$ 79		79			$ 80
Net earnings attributable to noncontrolling interest				5
Cash dividends declared	[1]			0
Total other comprehensive income (loss), net of tax				0
Share-based Compensation Expense	[2]			0
Stock Option Exercises				0
Other	[3]			0
Share Repurchase				0
Distributions to Noncontrollling Interest				$ (6)
[1]	Includes cash dividends paid and dividends declared, but unpaid.
[2]	Fair value of share-based awards.
[3]	Paid in capital includes tax benefits/charges relating to the differences between the amounts deductible for federal income taxes over the amounts charged to income for book value purposes and other items. Equity attributable to noncontrolling interest includes adjustments for currency revaluation.

STOCKHOLDERS' EQUITY STOCKHOL52

STOCKHOLDERS' EQUITY STOCKHOLDERS' EQUITY Part 2 AOCI (Details) - USD ($) $ in Millions	3 Months Ended				9 Months Ended				12 Months Ended
	Sep. 30, 2015		Sep. 30, 2014		Sep. 30, 2015		Sep. 30, 2014		Dec. 31, 2014	Dec. 31, 2013
Accumulated Other Comprehensive Income (Loss) [Line Items]
Cumulative Translation Adjustment	$ (251)				$ (251)				$ (68)	$ 133
Change in cumulative translation adjustment	(47)		$ (127)		(183)		$ (114)		(201)
Benefit Plans Unrecognized Prior Service Credits	46				46				61	78
Amortization of unrecognized prior service credits included in net periodic costs	(4)	[1]	(4)	[1]	(15)	[1]	(12)	[1]	(17)
Unrealized Gains (Losses) on Derivative Instruments	(240)				(240)				(269)	(39)
Change in Unrealized Gains (Losses) on Derivative Instruments	(32)	[2]	36	[2]	29	[2]	33	[2]	(230)
Unrealized Losses on Investments	(1)				(1)				(1)	(1)
Change in Unrealized Losses on Investments					0				0
Accumulated Other Comprehensive Income (Loss), Net of Tax	(446)				(446)				(277)	$ 171
Total other comprehensive income (loss), net of tax	$ (83)		$ (95)		$ (169)		$ (93)		$ (448)
[1]	Included in the calculation of net periodic benefit costs for pension and other postretirement benefit plans. See Note 8, "Retirement Plans".
[2]	For additional information regarding the impact of reclassifications into earnings, refer to Note 7, "Derivatives".

STOCKHOLDERS' EQUITY STOCKHOL53

STOCKHOLDERS' EQUITY STOCKHOLDERS' EQUITY Part 3 OCI (Details) - USD ($) $ in Millions		3 Months Ended				9 Months Ended				12 Months Ended
		Sep. 30, 2015		Sep. 30, 2014		Sep. 30, 2015		Sep. 30, 2014		Dec. 31, 2014
Other Comprehensive Income (Loss), Net of Tax [Abstract]
Change in cumulative translation adjustment		$ (47)		$ (127)		$ (183)		$ (114)		$ (201)
Amortization of unrecognized prior service credits included in net periodic costs		(4)	[1]	(4)	[1]	(15)	[1]	(12)	[1]	(17)
Unrealized gain (loss)	[2]	(66)		36		(27)		42
Reclassification adjustment for (gain) loss included in net income	[2]	34		0		56		(9)
Change in derivatives and hedging		(32)	[2]	36	[2]	29	[2]	33	[2]	(230)
Total other comprehensive income (loss), net of tax		(83)		(95)		(169)		(93)		$ (448)
Other Comprehensive Income (Loss), before Tax [Abstract]
Change in cumulative translation adjustment, before tax		(47)		(127)		(183)		(115)
Amortization of unrecognized prior service credits included in net periodic costs, before tax	[1]	(7)		(7)		(21)		(21)
Unrealized gain (loss), before tax	[2]	(107)		58		(44)		67
Reclassification adjustment for (gain) loss included in net income, before tax	[2]	55		0		90		(14)
Change in derivatives and hedging, before tax	[2]	(52)		58		46		53
Total other comprehensive income (loss), before tax		$ (106)		$ (76)		$ (158)		$ (83)
[1]	Included in the calculation of net periodic benefit costs for pension and other postretirement benefit plans. See Note 8, "Retirement Plans".
[2]	For additional information regarding the impact of reclassifications into earnings, refer to Note 7, "Derivatives".

EARNINGS AND DIVIDENDS PER SH54

EARNINGS AND DIVIDENDS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Millions		3 Months Ended		9 Months Ended
		Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Earnings Per Share [Abstract]
Earnings from continuing operations, net of tax		$ 256	$ 210	$ 724	$ 733
Net earnings attributable to Eastman		$ 256	$ 210	$ 724	$ 735
Weighted average shares used for basic EPS (in shares)		148,600,000	148,700,000	148,600,000	149,800,000
Dilutive effect of stock options and other awards		1,200,000	1,600,000	1,200,000	1,700,000
Weighted average shares used for diluted EPS (in shares)		149,800,000	150,300,000	149,800,000	151,500,000
Earnings from continuing operations, basic	[1]	$ 1.73	$ 1.41	$ 4.87	$ 4.89
Earnings from continuing operations, diluted	[1]	$ 1.71	$ 1.39	$ 4.83	$ 4.83
Underlying options excluded from the computation of diluted earnings per share (in shares)		773,643	210,143	264,043	210,143
Shares repurchased (in shares)		221,578	618,896	656,578	4,945,452
Cash dividends declared (per share)		$ 0.40	$ 0.35	$ 1.20	$ 1.05
[1]	Earnings per share are calculated using whole dollars and shares.

ASSETS IMPAIRMENTS AND RESTRU55

ASSETS IMPAIRMENTS AND RESTRUCTURING CHARGES, NET (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Restructuring Cost and Reserve [Line Items]
Restructuring, Settlement and Impairment Provisions	$ 21	$ 71	$ 130	$ 77
Asset Impairment Charges			107	50
Restructuring Charge [Roll Forward]
Balance at Beginning of Period			28	36	$ 36
Provision / Adjustments			130		77
Non-cash Reductions			(103)		(56)
Cash Reductions			(35)		(29)
Balance at End of Period	20		20		28
Parent Company [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring, Settlement and Impairment Provisions	21		130
Non-Cash Charges [Member]
Restructuring Charge [Roll Forward]
Balance at Beginning of Period			0	0	0
Provision / Adjustments			107		52
Non-cash Reductions			(107)		(52)
Cash Reductions			0		0
Balance at End of Period	0		0		0
Employee Severance [Member]
Restructuring Charge [Roll Forward]
Balance at Beginning of Period			13	22	22
Provision / Adjustments			15		13
Non-cash Reductions			2		0
Cash Reductions			(22)		(22)
Balance at End of Period	8		8		13
Facility Closing [Member]
Restructuring Charge [Roll Forward]
Balance at Beginning of Period			15	14	14
Provision / Adjustments			8		12
Non-cash Reductions			2		(4)
Cash Reductions			(13)		(7)
Balance at End of Period	12		12		$ 15
Advanced Materials [Member] | Trademarks and Trade Names [Member]
Restructuring Cost and Reserve [Line Items]
Asset Impairment Charges	$ 18		18
Additives And Functional Products [Member] | Trademarks and Trade Names [Member]
Restructuring Cost and Reserve [Line Items]
Asset Impairment Charges				22
Workington UK Closure [Member] | Fibers [Member] | Facility Closing [Member]
Restructuring Cost and Reserve [Line Items]
Asset Impairment Charges			81
Restructuring Charges			14
Discontinue growth initiative [Member]
Restructuring Cost and Reserve [Line Items]
Asset Impairment Charges			8
Restructuring Charges			4
Tawain closure [Member] | Advanced Materials [Member] | Facility Closing [Member]
Restructuring Cost and Reserve [Line Items]
Asset Impairment Charges				8
Restructuring Charges				2
Taminco [Member] | Employee Severance [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring, Settlement and Impairment Provisions			$ 4
Crystex R&D facility in France [Member] | Additives And Functional Products [Member] | Employee Severance [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring Charges		24		24
Crystex R&D facility in France [Member] | Additives And Functional Products [Member] | Facility Closing [Member]
Restructuring Cost and Reserve [Line Items]
Asset Impairment Charges		18		18
Solutia [Member] | Employee Severance [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring Charges				5
Brazil Site Closure [Member] | Facility Closing [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring Charges		5		5
Crystex Tradename [Member] | Additives And Functional Products [Member] | Trademarks and Trade Names [Member]
Restructuring Cost and Reserve [Line Items]
Asset Impairment Charges		$ 22		22
Germany Site Closure [Member]
Restructuring Cost and Reserve [Line Items]
Gain (Loss) on Disposition of Assets				5
China Site Closure [Member]
Restructuring Cost and Reserve [Line Items]
Gain (Loss) on Disposition of Assets				$ 2

SHARE-BASED COMPENSATION AWAR56

SHARE-BASED COMPENSATION AWARDS (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense before tax	$ 9	$ 6	$ 30	$ 23
Share-based compensation net of deferred tax expense	$ 5	$ 4	$ 18	$ 14

SUPPLEMENTAL CASH FLOW INFORM57

SUPPLEMENTAL CASH FLOW INFORMATION (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Supplemental Cash Flow Information [Abstract]
Other current assets	$ 29	$ 23
Other noncurrent assets	43	25
Payables and other current liabilities	92	52
Long-term liabilities and equity	(65)	(32)
Total	$ 99	$ 68

SEGMENT INFORMATION (Details)

SEGMENT INFORMATION (Details) $ in Millions		3 Months Ended		9 Months Ended
		Sep. 30, 2015USD ($)	Sep. 30, 2014USD ($)	Sep. 30, 2015USD ($)Segment	Sep. 30, 2014USD ($)	Dec. 31, 2014USD ($)
Segment Reporting Information [Line Items]
Number of Operating Segments | Segment				5
Sales [Abstract]
Sales		$ 2,447	$ 2,413	$ 7,423	$ 7,178
Operating Earnings (loss) [Abstract]
Operating Earnings (loss)		432	338	1,212	1,135
Segment Reporting Information, Additional Information [Abstract]
Assets by Segment	[1]	15,880		15,880		$ 16,072
Operating Segments [Member]
Sales [Abstract]
Sales		2,435	2,405	7,387	7,169
Operating Earnings (loss) [Abstract]
Operating Earnings (loss)		448	367	1,277	1,208
Segment Reporting Information, Additional Information [Abstract]
Assets by Segment	[1]	14,622		14,622		14,842
Corporate and Other [Member]
Sales [Abstract]
Sales		12	8	36	9
Segment Reporting Information, Additional Information [Abstract]
Assets by Segment	[1]	1,258		1,258		1,230
Growth Initiatives and Businesses not Allocated to Segments [Member] | Corporate and Other [Member]
Operating Earnings (loss) [Abstract]
Operating Earnings (loss)		(18)	(18)	(66)	(46)
Pension and OPEB Costs Not Allocated to Operating Segments [Member] | Corporate and Other [Member]
Operating Earnings (loss) [Abstract]
Operating Earnings (loss)		11	3	28	9
Transaction, Integration, and Restructuring Costs Related to Solutia Acquisition [Member] | Corporate and Other [Member]
Operating Earnings (loss) [Abstract]
Operating Earnings (loss)		(9)	(14)	(27)	(36)
Additives And Functional Products [Member] | Operating Segments [Member]
Sales [Abstract]
Sales		602	458	1,827	1,333
Operating Earnings (loss) [Abstract]
Operating Earnings (loss)		126	37	365	236
Segment Reporting Information, Additional Information [Abstract]
Assets by Segment	[1]	4,813		4,813		4,900
Adhesives And Plasticizers [Member] | Operating Segments [Member]
Sales [Abstract]
Sales		305	347	942	1,050
Operating Earnings (loss) [Abstract]
Operating Earnings (loss)		74	52	190	155
Segment Reporting Information, Additional Information [Abstract]
Assets by Segment	[1]	960		960		1,011
Advanced Materials [Member] | Operating Segments [Member]
Sales [Abstract]
Sales		624	604	1,832	1,816
Operating Earnings (loss) [Abstract]
Operating Earnings (loss)		98	76	301	217
Segment Reporting Information, Additional Information [Abstract]
Assets by Segment	[1]	4,249		4,249		4,235
Fibers [Member] | Operating Segments [Member]
Sales [Abstract]
Sales		320	346	903	1,086
Operating Earnings (loss) [Abstract]
Operating Earnings (loss)		102	112	188	352
Segment Reporting Information, Additional Information [Abstract]
Assets by Segment	[1]	997		997		986
Specialty Fluids And Intermediates [Member] | Operating Segments [Member]
Sales [Abstract]
Sales		584	650	1,883	1,884
Operating Earnings (loss) [Abstract]
Operating Earnings (loss)		48	$ 90	233	$ 248
Segment Reporting Information, Additional Information [Abstract]
Assets by Segment	[1]	$ 3,603		$ 3,603		$ 3,710
[1]	The chief operating decision maker holds segment management accountable for accounts receivable, inventory, fixed assets, goodwill, and intangible assets.