Eastman Chemical (EMN) 10-Q 3 Aug 16 2016 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	6 Months Ended
	Jun. 30, 2016	Dec. 31, 2015
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		$ 12,041,772,344
Entity Common Stock, Shares Outstanding	147,711,985
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q2
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2016

UNAUDITED CONSOLIDATED STATEMEN

UNAUDITED CONSOLIDATED STATEMENTS OF EARNINGS, COMPREHENSIVE INCOME AND RETAINED EARNINGS - USD ($) $ in Millions		3 Months Ended		6 Months Ended
		Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016		Jun. 30, 2015
Income Statement [Abstract]
Sales		$ 2,297	$ 2,533	$ 4,533		$ 4,976
Cost of sales		1,692	1,813	3,294		3,600
Gross profit		605	720	1,239		1,376
Selling, general and administrative expenses		174	194	357		374
Research and development expenses		55	57	109		113
Asset impairments and restructuring (gains) charges, net		0	0	(2)		109
Operating earnings		376	469	775		780
Net interest expense		63	66	127		132
Early debt extinguishment costs		9	0	9		0
Other income, net		(20)	0	(8)		(11)
Earnings before income taxes		324	403	647		659
Provision for income taxes		67	104	139		188
Net earnings		257	299	508		471
Less: Net earnings attributable to noncontrolling interest		2	2	2		3
Net earnings attributable to Eastman		$ 255	$ 297	$ 506		$ 468
Basic earnings per share attributable to Eastman
Basic earnings per share attributable to Eastman		$ 1.73	$ 2	$ 3.43		$ 3.15
Diluted earnings per share attributable to Eastman
Diluted earnings per share attributable to Eastman		$ 1.71	$ 1.98	$ 3.40		$ 3.12
Comprehensive Income
Net earnings including noncontrolling interest		$ 257	$ 299	$ 508		$ 471
Other comprehensive income (loss), net of tax:
Change in cumulative translation adjustment		(70)	76	36		(136)
Defined benefit pension and other postretirement benefit plans:
Amortization of unrecognized prior service credits included in net periodic costs	[1]	(7)	(7)	(14)		(11)
Derivatives and hedging:
Unrealized gain (loss) during period	[2]	38	(16)	20		39
Reclassification adjustment for losses included in net income, net	[2]	33	25	37		22
Total other comprehensive income (loss), net of tax		(6)	78	79		(86)
Comprehensive income including noncontrolling interest		251	377	587		385
Less: Net earnings attributable to noncontrolling interest		2	2	2		3
Comprehensive income attributable to Eastman		249	375	585		382
Retained Earnings
Retained earnings at beginning of period		5,330	4,656	5,146		4,545
Net earnings attributable to Eastman		255	297	506		468
Cash dividends declared		(68)	(60)	(135)	[3]	(120)
Retained earnings at end of period		$ 5,517	$ 4,893	$ 5,517		$ 4,893
[1]	Included in the calculation of net periodic benefit costs for pension and other postretirement benefit plans. See Note 9, "Retirement Plans".
[2]	For additional information regarding the impact of reclassifications into earnings, refer to Note 8, "Derivative and Non-Derivative Financial Instruments".
[3]	Includes cash dividends paid and dividends declared, but unpaid.

UNAUDITED CONSOLIDATED STATEME3

UNAUDITED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION - USD ($) $ in Millions	Jun. 30, 2016	Dec. 31, 2015
Current assets
Cash and cash equivalents	$ 240	$ 293
Trade receivables, net of allowance for doubtful accounts	951	792
Miscellaneous receivables	226	246
Inventories	1,445	1,479
Other current assets	68	68
Total current assets	2,930	2,878
Properties
Properties and equipment at cost	11,440	11,234
Less: Accumulated depreciation	6,278	6,104
Net properties	5,162	5,130
Goodwill	4,520	4,518
Intangible assets, net of accumulated amortization	2,585	2,650
Other noncurrent assets	385	404
Total assets	15,582	15,580	[1]
Current liabilities
Payables and other current liabilities	1,467	1,625
Borrowings due within one year	722	431
Total current liabilities	2,189	2,056
Long-term borrowings	6,082	6,577
Deferred income tax liabilities	1,014	928
Post-employment obligations	1,276	1,297
Other long-term liabilities	568	701
Total liabilities	11,129	11,559
Stockholders' equity
Common stock ($0.01 par value – 350,000,000 shares authorized; shares issued – 217,431,231 and 216,899,964 for 2016 and 2015, respectively)	2	2
Additional paid-in capital	1,892	1,863
Retained earnings	5,517	5,146
Accumulated other comprehensive loss	(311)	(390)
Stockholder's Equity before Treasury Stock	7,100	6,621
Less: Treasury stock at cost (69,770,044 shares for 2016 and 69,137,973 shares for 2015)	2,725	2,680
Total Eastman stockholders' equity	4,375	3,941
Noncontrolling interest	78	80
Total equity	4,453	4,021
Total liabilities and stockholders' equity	$ 15,582	$ 15,580
[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	Jun. 30, 2016	Dec. 31, 2015
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)	217,431,231	216,899,964
Treasury stock at cost (in shares)	69,770,044	69,137,973

UNAUDITED CONSOLIDATED STATEME5

UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Operating activities
Net earnings	$ 508	$ 471
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization	291	287
Asset impairment charges	0	89
Gain on sale of equity investment	(17)	0
Early debt extinguishment costs	9	0
Provision (benefit) for deferred income taxes	47	(30)
Mark-to-market loss on pension and other postretirement benefits plans	0	2
Changes in operating assets and liabilities, net of effect of acquisitions and divestitures:
Increase in trade receivables	(151)	(103)
Decrease in inventories	41	43
Decrease in trade payables	(76)	(109)
Pension and other postretirement contributions in excess of expenses	(43)	(39)
Variable compensation in excess of expenses	(67)	(24)
Other items, net	(1)	95
Net cash provided by operating activities	541	682
Investing activities
Additions to properties and equipment	(234)	(266)
Proceeds from sale of assets and equity investment	41	4
Acquisitions, net of cash acquired	(22)	0
Other items, net	3	(3)
Net cash used in investing activities	(212)	(265)
Financing activities
Net (decrease) increase in commercial paper borrowings	(208)	157
Proceeds from borrowings	807	250
Repayment of borrowings	(807)	(625)
Dividends paid to stockholders	(136)	(119)
Treasury stock purchases	(45)	(31)
Dividends paid to noncontrolling interest	(4)	(3)
Proceeds from stock option exercises and other items, net	12	12
Net cash used in financing activities	(381)	(359)
Effect of exchange rate changes on cash and cash equivalents	(1)	(4)
Net change in cash and cash equivalents	(53)	54
Cash and cash equivalents at beginning of period	293	214
Cash and cash equivalents at end of period	$ 240	$ 268

BASIS OF PRESENTATION

BASIS OF PRESENTATION	6 Months Ended
	Jun. 30, 2016
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 2015 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 2015 Annual Report on Form 10-K. The December 31, 2015 financial position data included herein was derived from the audited consolidated financial statements included in the 2015 Annual Report on 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. Certain prior period data has been reclassified in the consolidated financial statements and accompanying footnotes to confirm to current period presentation. In April 2015, the Financial Accounting Standards Board ("FASB") issued new guidance for debt issuance costs as a part of the simplification 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. As of March 31, 2016, the new guidance was applied on a retrospective basis which resulted in a reclassification of $31 million from "Other noncurrent assets" to "Long-term borrowings" in the Unaudited Consolidated Statement of Financial Position at December 31, 2015 . See Note 7, "Borrowings" . In January 2016, Eastman changed its organizational and management structure following completion of the integration of recently acquired businesses to better align similar strategies and business models. As a result, beginning first quarter 2016, the Company's products and operations are managed and reported in four operating segments: Additives & Functional Products ("AFP"), Advanced Materials ("AM"), Chemical Intermediates ("CI"), and Fibers. For further information, see Note 3, "Goodwill" and Note 18, " Segment Information ". Off Balance Sheet Financing Arrangements The Company has rights and obligations under non-recourse factoring facilities that have a combined limit of €158 million ( $175 million ) as of June 30, 2016 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 second quarter and first six months 2016 , were approximately $225 million and $460 million , respectively. The total amounts of cumulative receivables sold in second quarter and first six months 2015 , were approximately $240 million and $509 million , respectively. 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 $104 million and $106 million at June 30, 2016 and December 31, 2015 , 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 2015 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 2015 Annual Report on Form 10-K. The December 31, 2015 financial position data included herein was derived from the audited consolidated financial statements included in the 2015 Annual Report on 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. Certain prior period data has been reclassified in the consolidated financial statements and accompanying footnotes to confirm to current period presentation.
Trade and Other Accounts Receivable, Policy [Policy Text Block]	Off Balance Sheet Financing Arrangements The Company has rights and obligations under non-recourse factoring facilities that have a combined limit of €158 million ( $175 million ) as of June 30, 2016 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 second quarter and first six months 2016 , were approximately $225 million and $460 million , respectively. The total amounts of cumulative receivables sold in second quarter and first six months 2015 , were approximately $240 million and $509 million , respectively. 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 $104 million and $106 million at June 30, 2016 and December 31, 2015 , 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.

INVENTORIES

INVENTORIES	6 Months Ended
	Jun. 30, 2016
Inventory Disclosure [Abstract]
INVENTORIES	INVENTORIES June 30, December 31, (Dollars in millions) 2016 2015 At FIFO or average cost (approximates current cost) Finished goods $ 1,038 $ 1,063 Work in process 209 212 Raw materials and supplies 469 500 Total inventories 1,716 1,775 Less: LIFO reserve 271 296 Total inventories $ 1,445 $ 1,479 Inventories valued on the last-in, first-out ("LIFO") method were approximately 60 percent at both June 30, 2016 and December 31, 2015 .

GOODWILL (Notes)

GOODWILL (Notes)	6 Months Ended
	Jun. 30, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill Disclosure [Text Block]	GOODWILL In January 2016, as a result of the changes in Eastman's organizational and management structure, goodwill was reassigned to segments using a relative fair value allocation. In conjunction with the organizational changes and in accordance with GAAP, during first quarter 2016 Eastman performed an impairment assessment and concluded that no indication of an impairment existed. For further information on the organizational changes, see Note 1, "Basis of Presentation" and Note 18, " Segment Information ". Changes to the carrying value of goodwill follow: (Dollars in millions) Additives & Functional Products Adhesives & Plasticizers Advanced Materials Chemical Intermediates Other Segments Total Balance at December 31, 2015 $ 1,865 $ 111 $ 1,293 $ 1,239 $ 10 $ 4,518 Adjustments to net goodwill resulting from reorganization 583 (111 ) — (472 ) — — Currency translation adjustments 1 — (3 ) 4 — 2 Balance at June 30, 2016 $ 2,449 $ — $ 1,290 $ 771 $ 10 $ 4,520 As of June 30, 2016, the reported balance of goodwill included accumulated impairment losses of $23 million , $12 million , and $14 million in the AFP segment, CI segment, and other segments, respectively. As of December 31, 2015, the reported balance of goodwill included accumulated impairment losses of $35 million and $14 million in the Adhesives & Plasticizers segment and other segments, respectively.

EQUITY INVESTMENTS (Notes)

EQUITY INVESTMENTS (Notes)	6 Months Ended
	Jun. 30, 2016
Equity Method Investments and Joint Ventures [Abstract]
Equity Method Investments and Joint Ventures Disclosure [Text Block]	EQUITY INVESTMENTS In June 2016, Eastman sold its 50 percent interest in Primester, a joint venture which manufactures cellulose acetate at the Company's Kingsport site, to an affiliate of the joint venture partner for $35 million . This investment was accounted for under the equity method. Eastman's net investment in the joint venture at the date of sale was $18 million . Such amounts were included in "Other noncurrent assets" in the Unaudited Consolidated Statement of Financial Position and the gain of $17 million was recorded in " Other income, net " in the Unaudited Consolidated Statements of Earnings, Comprehensive Income and Retained Earnings.

PAYABLES AND OTHER CURRENT LIAB

PAYABLES AND OTHER CURRENT LIABILITIES	6 Months Ended
	Jun. 30, 2016
Payables and Accruals [Abstract]
PAYABLES AND OTHER CURRENT LIABILITIES	PAYABLES AND OTHER CURRENT LIABILITIES June 30, December 31, (Dollars in millions) 2016 2015 Trade creditors $ 610 $ 699 Derivative hedging liability 206 218 Accrued payrolls, vacation, and variable-incentive compensation 172 227 Post-employment obligations 96 120 Other 383 361 Total payables and other current liabilities $ 1,467 $ 1,625 "Other" consists primarily of accruals for taxes, interest payable, dividends payable, and the current portion of environmental liabilities.

PROVISION FOR INCOME TAXES

PROVISION FOR INCOME TAXES	6 Months Ended
	Jun. 30, 2016
Income Tax Disclosure [Abstract]
PROVISION FOR INCOME TAXES	PROVISION FOR INCOME TAXES Second Quarter First Six Months (Dollars in millions) 2016 2015 2016 2015 Provision for income taxes $ 67 $ 104 $ 139 $ 188 Effective tax rate 21 % 26 % 22 % 29 % The second quarter and first six months 2016 effective tax rates reflect a benefit from the extension of favorable U.S. federal tax provisions, primarily research and development ("R&D") tax credits and deferral of certain earnings of foreign subsidiaries from U.S. income taxes in fourth quarter of 2015. As a result, the favorable tax provisions will benefit all quarters in 2016, compared to only fourth quarter in 2015. The second quarter and first six months 2016 effective tax rates include a $16 million one-time benefit for the restoration of tax basis for which depreciation deductions were previously limited. The first six months 2016 effective tax rate also reflects a $9 million tax benefit primarily due to adjustments to the tax provision to reflect the finalization of 2014 foreign income tax returns. The second quarter 2015 effective tax rate included a $6 million benefit from the settlement of non-U.S. income tax audits. The first six months 2015 effective tax rate was negatively impacted by an unfavorable foreign rate variance due to increased earnings in higher-tax jurisdictions.

BORROWINGS

BORROWINGS	6 Months Ended
	Jun. 30, 2016
Debt Disclosure [Abstract]
BORROWINGS	BORROWINGS June 30, December 31, (Dollars in millions) 2016 2015 Borrowings consisted of: 2.4% notes due June 2017 $ 499 $ 998 6.30% notes due November 2018 165 166 5.5% notes due November 2019 249 249 2.7% notes due January 2020 795 794 4.5% notes due January 2021 249 249 3.6% notes due August 2022 892 896 1.50% notes due May 2023 604 — 7 1/4% debentures due January 2024 244 244 7 5/8% debentures due June 2024 54 54 3.8% notes due March 2025 793 791 7.60% debentures due February 2027 222 222 4.8% notes due September 2042 492 492 4.65% notes due October 2044 870 869 Credit facilities borrowings 450 550 Commercial paper borrowings 222 430 Capital leases 4 4 Total borrowings 6,804 7,008 Borrowings due within one year 722 431 Long-term borrowings $ 6,082 $ 6,577 On May 26, 2016, the Company sold euro-denominated 1.50% notes due 2023 in the principal amount of €550 million ( $614 million ). Proceeds from the sale of the notes, net of transaction costs, were €544 million ( $607 million ) and were used for the early repayment of $500 million of the 2.4% notes due June 2017 and repayment of other borrowings. Total consideration for the partial redemption of the 2.4% notes due June 2017 was $507 million ( $500 million for the principal amount and $7 million for the early redemption premium) and are reported as financing activities on the Unaudited Consolidated Statements of Cash Flows. The early repayment resulted in a charge of $9 million for early debt extinguishment costs primarily attributable to the early redemption premium and related unamortized costs. The book value of the redeemed debt was $498 million . In conjunction with the euro-denominated public debt offering, the Company contemporaneously designated these borrowings as a non-derivative hedge of a portion of its net investment in one of its euro functional currency denominated subsidiaries. For further information, see Note 8, "Derivative and Non-Derivative Financial Instruments" . Credit Facility and Commercial Paper Borrowings In connection with the 2014 acquisition of Taminco Corporation, Eastman borrowed $1.0 billion under a five-year Term Loan. As of June 30, 2016 , the Term Loan balance outstanding was $250 million with an interest rate of 1.71 percent . In second quarter 2016 , $100 million of the Company's borrowings under the Term Loan were repaid using available cash. As of December 31, 2015 , the Term Loan balance outstanding was $350 million with an interest rate of 1.67 percent . Borrowings under the Term Loan 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 expires 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. 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. Commercial paper borrowings are classified as short-term. At June 30, 2016 and December 31, 2015, the Company had no outstanding borrowings under the Credit Facility. At June 30, 2016 , the Company's commercial paper borrowings were $ 222 million with a weighted average interest rate of 0.81 percent . At December 31, 2015, the Company's commercial paper borrowings were $430 million with a weighted average interest rate of 0.80 percent . The Company has access to a $250 million accounts receivable securitization agreement (the "A/R Facility") that expires 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 June 30, 2016 , the Company's borrowings under the A/R Facility were $200 million supported by trade receivables with an interest rate of 1.27 percent . In second quarter 2016 , $190 million of the available amount under the A/R Facility was repaid and $200 million borrowed. In first quarter 2016 , $10 million of the Company's borrowings under the A/R Facility were repaid using available cash. At December 31, 2015, the Company's borrowings under the A/R Facility were $200 million supported by trade receivables with an interest rate of 1.11 percent . The Credit Facility and the A/R Facility, and the Term Loan, 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 $1,058 million and $842 million as of June 30, 2016 and December 31, 2015, respectively. Changes in available borrowings were due primarily to a decrease in commercial paper borrowings. 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 June 30, 2016 and December 31, 2015 , 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 2015 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 relate to the Term Loan, the A/R Facility, and capital leases, equals the carrying value and is classified as Level 2. Fair Value Measurements at June 30, 2016 (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 $ 6,082 $ 6,569 $ 6,116 $ 453 $ — Fair Value Measurements at December 31, 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 $ 6,577 $ 6,647 $ 6,094 $ 553 $ —

DERIVATIVE AND NON-DERIVATIVE F

DERIVATIVE AND NON-DERIVATIVE FINANCIAL INSTRUMENTS	6 Months Ended
	Jun. 30, 2016
Derivative Instruments and Hedging Activities Disclosure [Abstract]
DERIVATIVES	DERIVATIVE AND NON-DERIVATIVE FINANCIAL INSTRUMENTS 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 transactions and investments in foreign subsidiaries, the Company uses various derivative and non-derivative instruments when appropriate in accordance with the Company's hedging strategy and policies. Designation is performed on a specific exposure basis to support hedge accounting. The Company does not enter into derivative transactions for speculative purposes. For further information on hedging programs, see Note 10, "Derivatives", to the consolidated financial statements in Part II, Item 8 of the Company's 2015 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 second quarter 2016, the Company entered into interest rate swaps to hedge the interest rate risk on the 3.8% notes due 2025. As of June 30, 2016 , the total notional amount of the Company's interest rate swap was $75 million . As of December 31, 2015 , there were no outstanding interest rate swap hedges that were designated as fair value hedges. Fair Value Measurement of Derivatives Designated as Fair Value Hedging Instruments (Dollars in millions) Statement of Financial Position Location Fair Value Measurement Derivative Assets June 30, 2016 December 31, 2015 Interest rate swap Other noncurrent assets $ 2 $ — Derivatives' Fair Value Hedging Relationships Second 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' Fair Value Hedging Relationships 2016 2015 Interest rate swaps Net interest expense $ 3 $ 3 First Six Months (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' Fair Value Hedging Relationships 2016 2015 Interest rate swaps Net interest expense $ 7 $ 7 Cash Flow Hedges Cash flow hedges are derivative instruments designated as and used to hedge the exposure to variability in expected future cash flows that are attributable to a particular risk. 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 (loss), net of tax" ("OCI") located in the Unaudited Consolidated Statements of Earnings, Comprehensive Income and Retained Earnings 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 June 30, 2016 December 31, 2015 Foreign Exchange Forward and Option Contracts (in millions): EUR/USD (in EUR) €498 €618 EUR/USD (in approximate USD equivalent) $552 $689 JPY/USD (in JPY) ¥1,800 ¥2,400 JPY/USD (in approximate USD equivalent) $17 $20 Commodity Forward and Collar Contracts: Feedstock (in million barrels) 16 22 Energy (in million million British thermal units) 30 32 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 June 30, 2016 December 31, 2015 Commodity contracts Other current assets $ 2 $ — Commodity contracts Other noncurrent assets 2 — Foreign exchange contracts Other current assets 49 65 Foreign exchange contracts Other noncurrent assets 55 79 $ 108 $ 144 (Dollars in millions) Fair Value Measurements Significant Other Observable Inputs Derivative Liabilities Statement of Financial Position Location June 30, 2016 December 31, 2015 Commodity contracts Payables and other current liabilities $ 106 $ 194 Commodity contracts Other long-term liabilities 142 242 Forward starting interest rate swap contracts Payables and other current liabilities 78 — Forward starting interest rate swap contracts Other long-term liabilities — 30 $ 326 $ 466 Derivatives' Cash Flow Hedging Relationships Second 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 2016 2015 2016 2015 Commodity contracts $ 79 $ 22 Sales $ — $ 1 Cost of Sales (65 ) (62 ) Foreign exchange contracts 1 (28 ) Sales 15 22 Forward starting interest rate swap contracts (9 ) 15 Net interest expense (2 ) (2 ) $ 71 $ 9 $ (52 ) $ (41 ) First Six 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 2016 2015 2016 2015 Commodity contracts $ 109 $ 27 Sales $ — $ 3 Cost of sales (85 ) (78 ) Foreign exchange contracts (25 ) 27 Sales 30 43 Forward starting interest rate swap contracts (27 ) 7 Net interest expense (4 ) (4 ) $ 57 $ 61 $ (59 ) $ (36 ) Net Investment Hedges Net investment hedges are defined as derivative or non-derivative instruments designated as and used to hedge the foreign currency exposure of the net investment in certain foreign operations. The effective portion of the gain or loss on the net investment hedge is reported as a component of "Change in cumulative translation adjustment" ("CTA") within OCI located in the Unaudited Consolidated Statements of Earnings, Comprehensive Income and Retained Earnings. Gains and losses representing either hedge ineffectiveness or hedge components excluded from the assessment of effectiveness are recognized in current earnings. Contemporaneously with its sale on May 26, 2016 of euro-denominated 1.50% notes due 2023 in the principal amount of €550 million ( $614 million ), the Company designated these borrowings as a non-derivative hedge of a portion of its net investment in one of its euro functional currency denominated subsidiaries to protect the designated net investment against foreign currency fluctuations. As of June 30, 2016, the total notional value of the non-derivative net investment hedge was €544 million ( $604 million ). The designated foreign currency-denominated borrowings are included as part of "Long-term borrowings'" within the Unaudited Consolidated Statements of Financial Position. The following table summarizes the change in the unrealized gain on the net investment hedge instruments recognized as part of the CTA within OCI during second quarter 2016. No portion of the gain was reclassified into income and there was no hedge ineffectiveness with these instruments during second quarter 2016. Second Quarter First Six Months (Dollars in millions) 2016 2015 2016 2015 Change in unrealized gain in other comprehensive income $ 3 $ — $ 3 $ — 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 OCI before taxes totaled losses of $282 million at June 30, 2016 and $333 million at June 30, 2015 . If realized, $65 million net losses as of June 30, 2016 will be reclassified into earnings during the next 12 months. Ineffective portions of raw material and energy hedges are immediately recognized in earnings within "Cost of sales" in the Unaudited Consolidated Statements of Earnings, Comprehensive Income and Retained Earnings. The Company recognized pre-tax losses for ineffectiveness of the commodity hedging portfolio of $2 million and $1 million during the first six months of 2016 and 2015 , respectively. The gains or losses on nonqualifying derivatives or derivatives that are not designated as hedges are marked to market and reported in " Other income, net " in the Unaudited Consolidated Statements of Earnings, Comprehensive Income and Retained 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 $23 million and $1 million net losses on nonqualifying derivatives during second quarter 2016 and 2015 , respectively. The Company recognized $14 million and $12 million net losses on nonqualifying derivatives during the first six months of 2016 and 2015 , 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 2015 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 June 30, 2016 Description June 30, 2016 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Derivative Assets $ 110 $ — $ 110 $ — Derivative Liabilities (326 ) — (326 ) — $ (216 ) $ — $ (216 ) $ — (Dollars in millions) Fair Value Measurements at December 31, 2015 Description December 31, 2015 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Derivative Assets $ 144 $ — $ 144 $ — Derivative Liabilities (466 ) — (466 ) — $ (322 ) $ — $ (322 ) $ — All of the Company's derivative assets and liabilities are currently classified as Level 2. Level 2 fair value is based on estimates using standard pricing models. These standard pricing models use inputs 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 $109 million and a derivative in a net liability position of $325 million as of June 30, 2016 . The Company does not have any cash collateral due under such agreements.

RETIREMENT PLANS

RETIREMENT PLANS	6 Months Ended
	Jun. 30, 2016
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 2015 Annual Report on Form 10-K. Components of net periodic benefit (credit) cost were as follows: Second Quarter Pension Plans Other Postretirement Benefit Plans 2016 2015 2016 2015 (Dollars in millions) U.S. Non-U.S. U.S. Non-U.S. Components of net periodic benefit (credit) cost: Service cost $ 10 $ 3 $ 10 $ 4 $ 1 $ 2 Interest cost 19 6 22 7 7 10 Expected return on assets (34 ) (8 ) (37 ) (10 ) (1 ) (1 ) Curtailment gain (1) — — — (7 ) — — Amortization of: Prior service credit, net (1 ) — (1 ) — (10 ) (6 ) Mark-to-market pension and other postretirement benefits loss (2) — — — 2 — — Net periodic benefit (credit) cost $ (6 ) $ 1 $ (6 ) $ (4 ) $ (3 ) $ 5 First Six Months Pension Plans Other Postretirement Benefit Plans 2016 2015 2016 2015 (Dollars in millions) U.S. Non-U.S. U.S. Non-U.S. Components of net periodic benefit (credit) cost: Service cost $ 20 $ 6 $ 19 $ 8 $ 3 $ 4 Interest cost 37 12 44 13 14 20 Expected return on assets (68 ) (16 ) (73 ) (19 ) (3 ) (3 ) Curtailment gain (1) — — — (7 ) — — Amortization of: Prior service credit, net (2 ) — (2 ) — (20 ) (12 ) Mark-to-market pension and other postretirement benefits loss (2) — — — 2 — — Net periodic benefit (credit) cost $ (13 ) $ 2 $ (12 ) $ (3 ) $ (6 ) $ 9 (1) Gain in the Fibers segment due to the closure of the Workington, UK acetate tow manufacturing site . (2) Mark-to-market loss due to the interim remeasurement of the Workington, UK pension plan, triggered by the closure of the site included in Other in Note 18, "Segment Information" . The Company did not make any contributions to its U.S. defined benefit pension plans in first six months 2016 or 2015 . In first quarter 2016 , the Company changed the approach used to calculate service and interest cost components of net periodic benefit costs for its significant defined benefit pension and other postretirement benefit plans. The Company elected to calculate service and interest costs by applying the specific spot rates along the yield curve to the plans' projected cash flows. The change does not affect the measurement of the total benefit obligation or the annual net periodic benefit cost or credit of the plans because the change in the service and interest costs will be offset in the mark-to-market actuarial gain or loss which typically is recognized in the fourth quarter of each year or in any other quarters in which an interim remeasurement is triggered.

COMMITMENTS

COMMITMENTS	6 Months Ended
	Jun. 30, 2016
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS	COMMITMENTS Purchase Obligations and Lease Commitments The Company had various purchase obligations at June 30, 2016 , totaling $1.5 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 $265 million over a period of approximately 40 years. Of the total lease commitments, approximately 50 percent relate to real property, including office space, storage facilities, and land; approximately 40 percent relate to railcars; and approximately 10 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 totaled $125 million at June 30, 2016 and consist primarily of leases for railcars and the company aircraft mostly expiring in 2016 and 2017. Residual guarantee payments that become probable and estimable are accrued to rent expense over the remaining life of the applicable lease. Management's current expectation is that the likelihood of material residual guarantee payments is remote. 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 approximately $35 million in the aggregate, with none of these guarantees being individually significant to the Company's operating results, financial position, or liquidity. Management's current expectation is that future payment or performance related to non-performance under other guarantees is remote.

ENVIRONMENTAL MATTERS AND ASSET

ENVIRONMENTAL MATTERS AND ASSET RETIREMENT OBLIGATIONS	6 Months Ended
	Jun. 30, 2016
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 post-closure under the federal Resource Conservation and Recovery Act. Reserves for environmental contingencies have been established in accordance with Eastman's policies described in Note 1 , " Significant Accounting Policies ", to the consolidated financial statements in Part II, Item 8 of the Company's 2015 Annual Report on Form 10-K. The Company's total reserve for environmental contingencies was $332 million and $336 million at June 30, 2016 and December 31, 2015 , respectively. At both June 30, 2016 and December 31, 2015 , this reserve included $8 million 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. The Company's total environmental reserve that management believes to be probable and estimable for environmental contingencies, including remediation costs and asset retirement obligations, is included as part of "Payables and other current liabilities" and "Other long-term liabilities" in the Unaudited Consolidated Statements of Financial Position as follows: (Dollars in millions) June 30, 2016 December 31, 2015 Environmental contingent liabilities, current $ 30 $ 35 Environmental contingent liabilities, long-term 302 301 Total $ 332 $ 336 Remediation Estimated future environmental expenditures for remediation costs ranged from the minimum or best estimate of $304 million to the maximum of $512 million and from the minimum or best estimate of $308 million to the maximum of $516 million at June 30, 2016 and December 31, 2015 , respectively. The maximum estimated future costs are considered to be reasonably possible and include the amounts accrued at both June 30, 2016 and December 31, 2015 . 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 include liabilities expected to be paid within 30 years . The amounts charged to pre-tax earnings for environmental remediation and related charges are included within "Cost of sales" in the Unaudited Consolidated Statements of Earnings, Comprehensive Income and Retained Earnings. Changes in the reserves for environmental remediation liabilities during first six months 2016 are summarized below: (Dollars in millions) Environmental Remediation Liabilities Balance at December 31, 2015 $ 308 Changes in estimates recognized in earnings and other 9 Cash reductions (13 ) Balance at June 30, 2016 $ 304 Closure/Post-Closure 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 obligations are discounted to expected present value and subsequently adjusted for changes in fair value. The associated estimated asset retirement costs are capitalized as part of the carrying value of the long-lived assets and depreciated over their useful life. Environmental asset retirement obligations consist primarily of closure and post-closure costs. For sites that have environmental asset retirement obligations, the best estimate accrued to date over the sites' estimated useful lives for these environmental asset retirement obligation costs was $28 million at both June 30, 2016 and December 31, 2015 . Other The Company also has contractual asset retirement obligations not associated with environmental liabilities. Eastman's non-environmental asset retirement obligations are primarily associated with the future closure of leased manufacturing assets at Pace, Florida and Oulu, Finland. These accrued non-environmental asset retirement obligations were $45 million and $46 million as of June 30, 2016 and December 31, 2015 , respectively.

LEGAL MATTERS

LEGAL MATTERS	6 Months Ended
	Jun. 30, 2016
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	6 Months Ended
	Jun. 30, 2016
Stockholders' Equity Note [Abstract]
STOCKHOLDERS' EQUITY	STOCKHOLDERS' EQUITY A reconciliation of the changes in stockholders' equity for first six months 2016 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, 2015 $ 2 $ 1,863 $ 5,146 $ (390 ) $ (2,680 ) $ 3,941 $ 80 $ 4,021 Net Earnings — — 506 — — 506 2 508 Cash Dividends Declared (1) ($0.92 per share) — — (135 ) — — (135 ) — (135 ) Other Comprehensive Income — — — 79 — 79 — 79 Share-Based Compensation Expense (2) — 20 — — — 20 — 20 Stock Option Exercises — 11 — — — 11 — 11 Other (3) — (2 ) — — — (2 ) (1 ) (3 ) Share Repurchase — — — — (45 ) (45 ) — (45 ) Distributions to Noncontrolling Interest — — — — — — (3 ) (3 ) Balance at June 30, 2016 $ 2 $ 1,892 $ 5,517 $ (311 ) $ (2,725 ) $ 4,375 $ 78 $ 4,453 (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, 2014 $ (68 ) $ 61 $ (269 ) $ (1 ) $ (277 ) Period change (216 ) 68 35 — (113 ) Balance at December 31, 2015 (284 ) 129 (234 ) (1 ) (390 ) Period change 36 (14 ) 57 — 79 Balance at June 30, 2016 $ (248 ) $ 115 $ (177 ) $ (1 ) $ (311 ) 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: Second Quarter 2016 2015 (Dollars in millions) Before Tax Net of Tax Before Tax Net of Tax Other comprehensive income (loss) Change in cumulative translation adjustment $ (70 ) $ (70 ) $ 76 $ 76 Defined benefit pension and other postretirement benefit plans: Amortization of unrecognized prior service credits included in net periodic costs (1) (11 ) (7 ) (10 ) (7 ) Derivatives and hedging: (2) Unrealized gain (loss) during period 62 38 (26 ) (16 ) Reclassification adjustment for losses included in net income, net 53 33 40 25 Total other comprehensive income (loss) $ 34 $ (6 ) $ 80 $ 78 First Six Months 2016 2015 (Dollars in millions) Before Tax Net of Tax Before Tax Net of Tax Other comprehensive income (loss) Change in cumulative translation adjustment $ 36 $ 36 $ (136 ) $ (136 ) Defined benefit pension and other postretirement benefit plans: Amortization of unrecognized prior service credits included in net periodic costs (1) (22 ) (14 ) (17 ) (11 ) Derivatives and hedging: (2) Unrealized gain during period 32 20 63 39 Reclassification adjustment for losses included in net income, net 60 37 35 22 Total other comprehensive income (loss) $ 106 $ 79 $ (55 ) $ (86 ) (1) Included in the calculation of net periodic benefit costs for pension and other postretirement benefit plans. See Note 9, "Retirement Plans" . (2) For additional information regarding the impact of reclassifications into earnings, refer to Note 8, "Derivative and Non-Derivative Financial Instruments" .

EARNINGS AND DIVIDENDS PER SHAR

EARNINGS AND DIVIDENDS PER SHARE	6 Months Ended
	Jun. 30, 2016
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"): Second Quarter First Six Months (In millions, except per share amounts) 2016 2015 2016 2015 Numerator Earnings attributable to Eastman: Earnings, net of tax $ 255 $ 297 $ 506 $ 468 Denominator Weighted average shares used for basic EPS 147.8 148.6 147.8 148.6 Dilutive effect of stock options and other awards 1.1 1.2 1.1 1.2 Weighted average shares used for diluted EPS 148.9 149.8 148.9 149.8 EPS (1) Basic $ 1.73 $ 2.00 $ 3.43 $ 3.15 Diluted $ 1.71 $ 1.98 $ 3.40 $ 3.12 (1) Earnings per share are calculated using whole dollars and shares. In second quarter and first six months 2016 , options to purchase 1,056,961 and 1,076,935 shares of common stock, respectively, 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. Second quarter and first six months 2016 reflect the impact of share repurchases of 344,790 and 632,071 , respectively. In second quarter and first six months 2015 , options to purchase 619,418 and 272,143 shares of common stock, respectively, 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. Second quarter and first six months 2015 reflect the impact of share repurchases of 65,000 and 435,000 , respectively. The Company declared cash dividends of $0.46 and $0.40 per share in second quarter 2016 and 2015 , respectively, and $0.92 and $0.80 per share in first six months 2016 and 2015 , respectively.

ASSETS IMPAIRMENTS AND RESTRUCT

ASSETS IMPAIRMENTS AND RESTRUCTURING	6 Months Ended
	Jun. 30, 2016
Restructuring Costs and Asset Impairment Charges [Abstract]
ASSET IMPAIRMENTS AND RESTRUCTURING	ASSET IMPAIRMENTS AND RESTRUCTURING In first six months 2016, there were net asset impairments and restructuring gains of $2 million in the AFP segment for the sale of previously impaired assets at the Crystex ® R&D site in France. In second quarter 2015, net asset impairments and restructuring charges included $7 million of restructuring charges, primarily for dismantlement related to the closure of the Workington, UK acetate tow manufacturing site. The charges were offset by a pension curtailment gain of $7 million as a result of the site closure. In first six 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 site which was substantially completed in 2015. Additionally, in first six 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 . 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 six months 2016 and full year 2015 : (Dollars in millions) Balance at January 1, 2016 Provision/ Adjustments Non-cash Reductions Cash Reductions Balance at June 30, 2016 Non-cash charges $ — $ — $ — $ — $ — Severance costs 55 — — (21 ) 34 Site closure and restructuring costs 11 (2 ) 1 (1 ) 9 Total $ 66 $ (2 ) $ 1 $ (22 ) $ 43 (Dollars in millions) Balance at January 1, 2015 Provision/ Adjustments Non-cash Reductions Cash Reductions Balance at December 31, 2015 Non-cash charges $ — $ 107 $ (107 ) $ — $ — Severance costs 13 67 1 (26 ) 55 Site closure and restructuring costs 15 9 3 (16 ) 11 Total $ 28 $ 183 $ (103 ) $ (42 ) $ 66 Severance payments in first six months 2016 relate primarily to fourth quarter 2015 actions taken to reduce non-operations workforce. Substantially all severance costs remaining are expected to be applied to the reserves within one year.

SHARE-BASED COMPENSATION AWARDS

SHARE-BASED COMPENSATION AWARDS	6 Months Ended
	Jun. 30, 2016
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 second quarter 2016 and 2015 , $7 million and $10 million , respectively, of compensation expense before tax were recognized in "Selling, general and administrative expenses" in the Unaudited Consolidated Statements of Earnings, Comprehensive Income and Retained Earnings for all share-based awards. The impact on second quarter 2016 and 2015 net earnings of $4 million and $6 million , respectively, is net of deferred tax expense related to share-based award compensation for each period. In first six months 2016 and 2015 , $20 million and $21 million , respectively, of compensation expense before tax were recognized in "Selling, general and administrative expenses" in the Unaudited Consolidated Statements of Earnings, Comprehensive Income and Retained Earnings for all share-based awards. The impact on first six months 2016 and 2015 net earnings of $12 million and $13 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 2015 Annual Report on Form 10-K.

SUPPLEMENTAL CASH FLOW INFORMAT

SUPPLEMENTAL CASH FLOW INFORMATION	6 Months Ended
	Jun. 30, 2016
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 Six Months 2016 2015 Other current assets $ (13 ) $ 15 Other noncurrent assets 14 48 Payables and other current liabilities 40 139 Long-term liabilities and equity (42 ) (107 ) Total $ (1 ) $ 95 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	6 Months Ended
	Jun. 30, 2016
Segment Reporting [Abstract]
SEGMENT INFORMATION	SEGMENT INFORMATION As reported in the 2015 Annual Report on Form 10-K, the Company's products and operations were managed and reported in five operating segments: Additives & Functional Products ("AFP"), Adhesives & Plasticizers ("A&P"), Advanced Materials ("AM"), Fibers, and Specialty Fluids & Intermediates ("SFI"). Beginning first quarter 2016, as a result of changes in the Company's organizational structure and management, the Company's products and operations are managed and reported in four operating segments: AFP, AM, Chemical Intermediates ("CI"), and Fibers. The new structure supports the Company's strategy to transform towards a specialty portfolio by better aligning similar businesses in a more streamlined structure. Under the new structure, the adhesives resins product line of the former A&P segment is moved to the AFP segment, the specialty fluids product line of the former SFI segment is moved to the AFP segment, and the plasticizers product line of the former A&P segment is moved to the new CI segment. In addition to the product line changes, there were shifts in products among product lines in different segments. Acetyl and olefin products with animal nutrition and food ingredient applications of the former SFI segment are moved to the AFP segment as part of the care chemicals and animal nutrition product lines. Distribution solvents, ethylene oxide derivatives, and ethyl acetate products are moved from the AFP segment to the new CI segment in the other intermediates product line. Second Quarter (Dollars in millions) 2016 2015 Sales Additives & Functional Products $ 770 $ 830 Advanced Materials 646 647 Chemical Intermediates 633 745 Fibers 234 299 Total Sales by Segment 2,283 2,521 Other 14 12 Total Sales $ 2,297 $ 2,533 First Six Months (Dollars in millions) 2016 2015 Sales Additives & Functional Products $ 1,507 $ 1,634 Advanced Materials 1,235 1,208 Chemical Intermediates 1,253 1,527 Fibers 514 583 Total Sales by Segment 4,509 4,952 Other 24 24 Total Sales $ 4,533 $ 4,976 Second Quarter (Dollars in millions) 2016 2015 Operating Earnings (Loss) Additives & Functional Products $ 168 $ 178 Advanced Materials 132 135 Chemical Intermediates 15 87 Fibers 72 93 Total Operating Earnings by Segment 387 493 Other Growth initiatives and businesses not allocated to segments (24 ) (22 ) Pension and other postretirement benefits income, net not allocated to operating segments 13 8 Acquisition integration, transaction, and restructuring costs — (10 ) Total Operating Earnings $ 376 $ 469 First Six Months (Dollars in millions) 2016 2015 Operating Earnings (Loss) Additives & Functional Products $ 321 $ 335 Advanced Materials 240 203 Chemical Intermediates 82 205 Fibers 158 86 Total Operating Earnings by Segment 801 829 Other Growth initiatives and businesses not allocated to segments (42 ) (48 ) Pension and other postretirement benefit income, net not allocated to operating segments 25 17 Acquisition integration, transaction, and restructuring costs (9 ) (18 ) Total Operating Earnings $ 775 $ 780 June 30, December 31, (Dollars in millions) 2016 2015 Assets by Segment (1) Additives & Functional Products $ 6,394 $ 6,370 Advanced Materials 4,315 4,227 Chemical Intermediates 3,118 2,930 Fibers 765 969 Total Assets by Segment 14,592 14,496 Corporate Assets 990 1,084 Total Assets $ 15,582 $ 15,580 (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	6 Months Ended
	Jun. 30, 2016
Recently Issued Accounting Standards [Abstract]
Recently Issued Accounting Standards [Text Block]	RECENTLY ISSUED ACCOUNTING STANDARDS In May 2014, the 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. In April 2016, the FASB issued clarifying guidance to the 2014 revenue standard in regards to the identification of performance obligations and licensing. In May 2016, the FASB issued narrow-scope improvements and practical expedients to the new revenue standard that includes clarification of the collectability criterion, specification for the measurement of noncash considerations, clarifies a completed contract for transition purposes and clarification in regards to the retrospective application, as well as, policy elections, and practical expedients. The effective date for both amendments is the same as that of the revenue standard stated above. The Company is currently evaluating the impact on the Company's financial position and results of operations and related disclosures. In January 2016, the FASB issued targeted improvements in regards to the recognition and measurement of financial assets and financial liabilities. The changes are as follows: requires equity investments (except equity method and consolidated investments) to be measured at fair value with changes in fair value recognized in net income; simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment, when a qualitative assessment indicates that impairment exists, an entity is required to measure the investment at fair value; eliminates the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet; requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes; requires an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments; and requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset (that is, securities or loans and receivables) on the balance sheet or the accompanying notes to the financial statements. This guidance is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period and early adoption is permitted but limited. The new guidance is to be applied by means of a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption and for equity securities without readily determinable fair values, applied prospectively to equity investments that exist as of the date of adoption. 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 February 2016, the FASB issued guidance on lease accounting. The new guidance establishes two types of leases for lessees: finance or operating. The guidance for lessors is largely unchanged. Under the guidance, a lessee is to recognize a right-of-use asset and lease liability that arises from a lease. A lessee can make a policy election, by asset class, to not recognize lease assets or liabilities for leases with a term of 12 months or less. Both finance and operating leases will have associated right-of-use assets and liabilities initially measured at the present value of the lease payments. Current and noncurrent balance sheet classification will apply. Finance leases will have another reported element for interest associated with the principal lease liability. The component concept from the 2014 revenue recognition standard has been included in the new lease standard which will guide identification of individual assets and non-lease components. As with current GAAP, the guidance does not apply to the following leases: intangible assets to explore for or use minerals, oil, natural gas, and similar nonregenerative resources, biological assets (includes timber), inventory, or assets under construction. This guidance is effective for annual reporting periods beginning after December 15, 2018, including interim periods within that reporting period and early adoption is permitted. The new guidance is to be applied under a modified retrospective approach wherein practical expedients have been allowed that will not require reassessment of current leases at the effective date. The Company is currently evaluating the impact on the Company's financial position and results of operations and related disclosures. In March 2016, the FASB issued guidance for derivatives and hedging given lack of specific guidance and diversity in practice. The guidance clarifies that a change in the counterparty to a derivative instrument does not, in and of itself, require dedesignation of that hedge accounting relationship provided all other hedge accounting criteria continue to be met (specifically points to counterparty credit worthiness). 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, including adoption in an interim period. The new guidance is to be applied under the prospective method or modified retrospective approach. 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 March 2016, the FASB issued guidance for stock compensation as a part of the simplification initiative that covers related tax accounting, cash flow presentation, and forfeitures. The two tax accounting related amendments are as follows: all excess tax benefits and tax deficiencies (including tax benefits of dividends on share-based payment awards) should be recognized within income tax expense or benefit in the income statement, the tax effects of exercised or vested awards should be treated as discrete items in the reporting period in which they occur, an entity also should recognize excess tax benefits regardless of whether the benefit reduces taxes payable in the current period; and the threshold to qualify for equity classification permits withholding up to the maximum statutory tax rates in the applicable jurisdictions. The cash flow presentation items sets forth that excess tax benefits should be classified along with other income tax cash flows as an operating activity and cash paid by an employer when directly withholding shares for tax withholding purposes should be classified as a financing activity. For forfeitures, an entity can make an entity-wide accounting policy election to either estimate the number of awards that are expected to vest (current GAAP) or account for forfeitures when they occur. 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, including adoption in an interim period. The new guidance application is mixed among the various elements that include, retrospective, prospective, and modified retrospective transition methods. The Company is currently evaluating the impact on the Company's financial position and results of operations and related disclosures. In June 2016, the FASB issued guidance relating to credit losses. The amendments require a financial asset (or group of financial assets) measured at amortized cost basis to be presented at the net amount expected to be collected through the use of allowances for credit losses valuation account. The income statement will reflect the measurement of credit losses for newly recognized financial assets, as well as the expected increases or decreases of expected credit losses that have taken place during the period. This guidance is effective for annual reporting periods beginning after December 15, 2019, including interim periods within that reporting period and early adoption is permitted, including adoption in an interim period, beginning after December 15, 2018. The new guidance application is mixed among the various elements that include, modified retrospective and prospective transition methods. The Company is currently evaluating the impact on the Company's financial position and results of operations and related disclosures.

INVENTORIES (Tables)

INVENTORIES (Tables)	6 Months Ended
	Jun. 30, 2016
Inventory Disclosure [Abstract]
Schedule of inventories	June 30, December 31, (Dollars in millions) 2016 2015 At FIFO or average cost (approximates current cost) Finished goods $ 1,038 $ 1,063 Work in process 209 212 Raw materials and supplies 469 500 Total inventories 1,716 1,775 Less: LIFO reserve 271 296 Total inventories $ 1,445 $ 1,479

GOODWILL (Tables)

GOODWILL (Tables)	6 Months Ended
	Jun. 30, 2016
Goodwill [Line Items]
Schedule of Goodwill [Table Text Block]	Changes to the carrying value of goodwill follow: (Dollars in millions) Additives & Functional Products Adhesives & Plasticizers Advanced Materials Chemical Intermediates Other Segments Total Balance at December 31, 2015 $ 1,865 $ 111 $ 1,293 $ 1,239 $ 10 $ 4,518 Adjustments to net goodwill resulting from reorganization 583 (111 ) — (472 ) — — Currency translation adjustments 1 — (3 ) 4 — 2 Balance at June 30, 2016 $ 2,449 $ — $ 1,290 $ 771 $ 10 $ 4,520

PAYABLES AND OTHER CURRENT LI27

PAYABLES AND OTHER CURRENT LIABILITIES (Tables)	6 Months Ended
	Jun. 30, 2016
Payables and Accruals [Abstract]
Schedule of payables and other current liabilities	June 30, December 31, (Dollars in millions) 2016 2015 Trade creditors $ 610 $ 699 Derivative hedging liability 206 218 Accrued payrolls, vacation, and variable-incentive compensation 172 227 Post-employment obligations 96 120 Other 383 361 Total payables and other current liabilities $ 1,467 $ 1,625

PROVISION FOR INCOME TAXES (Tab

PROVISION FOR INCOME TAXES (Tables)	6 Months Ended
	Jun. 30, 2016
Income Tax Disclosure [Abstract]
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]	Second Quarter First Six Months (Dollars in millions) 2016 2015 2016 2015 Provision for income taxes $ 67 $ 104 $ 139 $ 188 Effective tax rate 21 % 26 % 22 % 29 %

BORROWINGS (Tables)

BORROWINGS (Tables)	6 Months Ended
	Jun. 30, 2016
Debt Disclosure [Abstract]
Long-term Borrowings	June 30, December 31, (Dollars in millions) 2016 2015 Borrowings consisted of: 2.4% notes due June 2017 $ 499 $ 998 6.30% notes due November 2018 165 166 5.5% notes due November 2019 249 249 2.7% notes due January 2020 795 794 4.5% notes due January 2021 249 249 3.6% notes due August 2022 892 896 1.50% notes due May 2023 604 — 7 1/4% debentures due January 2024 244 244 7 5/8% debentures due June 2024 54 54 3.8% notes due March 2025 793 791 7.60% debentures due February 2027 222 222 4.8% notes due September 2042 492 492 4.65% notes due October 2044 870 869 Credit facilities borrowings 450 550 Commercial paper borrowings 222 430 Capital leases 4 4 Total borrowings 6,804 7,008 Borrowings due within one year 722 431 Long-term borrowings $ 6,082 $ 6,577
Fair Value of Borrowings	Fair Value Measurements at June 30, 2016 (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 $ 6,082 $ 6,569 $ 6,116 $ 453 $ — Fair Value Measurements at December 31, 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 $ 6,577 $ 6,647 $ 6,094 $ 553 $ —

DERIVATIVE AND NON-DERIVATIVE30

DERIVATIVE AND NON-DERIVATIVE FINANCIAL INSTRUMENTS (Tables)	6 Months Ended
	Jun. 30, 2016
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Schedule of Notional Amounts of Outstanding Derivative Positions [Table Text Block]	June 30, 2016 December 31, 2015 Foreign Exchange Forward and Option Contracts (in millions): EUR/USD (in EUR) €498 €618 EUR/USD (in approximate USD equivalent) $552 $689 JPY/USD (in JPY) ¥1,800 ¥2,400 JPY/USD (in approximate USD equivalent) $17 $20 Commodity Forward and Collar Contracts: Feedstock (in million barrels) 16 22 Energy (in million million British thermal units) 30 32 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) Statement of Financial Position Location Fair Value Measurement Derivative Assets June 30, 2016 December 31, 2015 Interest rate swap Other noncurrent assets $ 2 $ — 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 June 30, 2016 December 31, 2015 Commodity contracts Other current assets $ 2 $ — Commodity contracts Other noncurrent assets 2 — Foreign exchange contracts Other current assets 49 65 Foreign exchange contracts Other noncurrent assets 55 79 $ 108 $ 144 (Dollars in millions) Fair Value Measurements Significant Other Observable Inputs Derivative Liabilities Statement of Financial Position Location June 30, 2016 December 31, 2015 Commodity contracts Payables and other current liabilities $ 106 $ 194 Commodity contracts Other long-term liabilities 142 242 Forward starting interest rate swap contracts Payables and other current liabilities 78 — Forward starting interest rate swap contracts Other long-term liabilities — 30 $ 326 $ 466
Derivative Instrument Gain Loss in Statement of Financial Performance	Derivatives' Fair Value Hedging Relationships Second 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 2016 2015 Interest rate swaps Net interest expense $ 3 $ 3 First Six Months (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 2016 2015 Interest rate swaps Net interest expense $ 7 $ 7 Derivatives' Hedging Relationships Second 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 2016 2015 2016 2015 Commodity contracts $ 79 $ 22 Sales $ — $ 1 Cost of Sales (65 ) (62 ) Foreign exchange contracts 1 (28 ) Sales 15 22 Forward starting interest rate swap contracts (9 ) 15 Net interest expense (2 ) (2 ) $ 71 $ 9 $ (52 ) $ (41 ) First Six 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 2016 2015 2016 2015 Commodity contracts $ 109 $ 27 Sales $ — $ 3 Cost of sales (85 ) (78 ) Foreign exchange contracts (25 ) 27 Sales 30 43 Forward starting interest rate swap contracts (27 ) 7 Net interest expense (4 ) (4 ) $ 57 $ 61 $ (59 ) $ (36 ) The following table summarizes the change in the unrealized gain on the net investment hedge instruments recognized as part of the CTA within OCI during second quarter 2016. No portion of the gain was reclassified into income and there was no hedge ineffectiveness with these instruments during second quarter 2016. Second Quarter First Six Months (Dollars in millions) 2016 2015 2016 2015 Change in unrealized gain in other comprehensive income $ 3 $ — $ 3 $ —
Financial assets and liabilities valued on a recurring basis	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 2015 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 June 30, 2016 Description June 30, 2016 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Derivative Assets $ 110 $ — $ 110 $ — Derivative Liabilities (326 ) — (326 ) — $ (216 ) $ — $ (216 ) $ — (Dollars in millions) Fair Value Measurements at December 31, 2015 Description December 31, 2015 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Derivative Assets $ 144 $ — $ 144 $ — Derivative Liabilities (466 ) — (466 ) — $ (322 ) $ — $ (322 ) $ —

RETIREMENT PLANS (Tables)

RETIREMENT PLANS (Tables)	6 Months Ended
	Jun. 30, 2016
Compensation and Retirement Disclosure [Abstract]
Components of net periodic benefit cost	Components of net periodic benefit (credit) cost were as follows: Second Quarter Pension Plans Other Postretirement Benefit Plans 2016 2015 2016 2015 (Dollars in millions) U.S. Non-U.S. U.S. Non-U.S. Components of net periodic benefit (credit) cost: Service cost $ 10 $ 3 $ 10 $ 4 $ 1 $ 2 Interest cost 19 6 22 7 7 10 Expected return on assets (34 ) (8 ) (37 ) (10 ) (1 ) (1 ) Curtailment gain (1) — — — (7 ) — — Amortization of: Prior service credit, net (1 ) — (1 ) — (10 ) (6 ) Mark-to-market pension and other postretirement benefits loss (2) — — — 2 — — Net periodic benefit (credit) cost $ (6 ) $ 1 $ (6 ) $ (4 ) $ (3 ) $ 5 First Six Months Pension Plans Other Postretirement Benefit Plans 2016 2015 2016 2015 (Dollars in millions) U.S. Non-U.S. U.S. Non-U.S. Components of net periodic benefit (credit) cost: Service cost $ 20 $ 6 $ 19 $ 8 $ 3 $ 4 Interest cost 37 12 44 13 14 20 Expected return on assets (68 ) (16 ) (73 ) (19 ) (3 ) (3 ) Curtailment gain (1) — — — (7 ) — — Amortization of: Prior service credit, net (2 ) — (2 ) — (20 ) (12 ) Mark-to-market pension and other postretirement benefits loss (2) — — — 2 — — Net periodic benefit (credit) cost $ (13 ) $ 2 $ (12 ) $ (3 ) $ (6 ) $ 9

ENVIRONMENTAL MATTERS AND ASS32

ENVIRONMENTAL MATTERS AND ASSET RETIREMENT OBLIGATIONS (Tables)	6 Months Ended
	Jun. 30, 2016
Accrual for Environmental Loss Contingencies Disclosure [Abstract]
Schedule of environmental liabilities, current and non-current	he Company's total environmental reserve that management believes to be probable and estimable for environmental contingencies, including remediation costs and asset retirement obligations, is included as part of "Payables and other current liabilities" and "Other long-term liabilities" in the Unaudited Consolidated Statements of Financial Position as follows: (Dollars in millions) June 30, 2016 December 31, 2015 Environmental contingent liabilities, current $ 30 $ 35 Environmental contingent liabilities, long-term 302 301 Total $ 332 $ 336
Schedule of changes to environmental remediation liabilities	The amounts charged to pre-tax earnings for environmental remediation and related charges are included within "Cost of sales" in the Unaudited Consolidated Statements of Earnings, Comprehensive Income and Retained Earnings. Changes in the reserves for environmental remediation liabilities during first six months 2016 are summarized below: (Dollars in millions) Environmental Remediation Liabilities Balance at December 31, 2015 $ 308 Changes in estimates recognized in earnings and other 9 Cash reductions (13 ) Balance at June 30, 2016 $ 304

STOCKHOLDERS' EQUITY (Tables)

STOCKHOLDERS' EQUITY (Tables)	6 Months Ended
	Jun. 30, 2016
Stockholders' Equity Note [Abstract]
Reconciliation of the changes in stockholders' equity	A reconciliation of the changes in stockholders' equity for first six months 2016 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, 2015 $ 2 $ 1,863 $ 5,146 $ (390 ) $ (2,680 ) $ 3,941 $ 80 $ 4,021 Net Earnings — — 506 — — 506 2 508 Cash Dividends Declared (1) ($0.92 per share) — — (135 ) — — (135 ) — (135 ) Other Comprehensive Income — — — 79 — 79 — 79 Share-Based Compensation Expense (2) — 20 — — — 20 — 20 Stock Option Exercises — 11 — — — 11 — 11 Other (3) — (2 ) — — — (2 ) (1 ) (3 ) Share Repurchase — — — — (45 ) (45 ) — (45 ) Distributions to Noncontrolling Interest — — — — — — (3 ) (3 ) Balance at June 30, 2016 $ 2 $ 1,892 $ 5,517 $ (311 ) $ (2,725 ) $ 4,375 $ 78 $ 4,453
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, 2014 $ (68 ) $ 61 $ (269 ) $ (1 ) $ (277 ) Period change (216 ) 68 35 — (113 ) Balance at December 31, 2015 (284 ) 129 (234 ) (1 ) (390 ) Period change 36 (14 ) 57 — 79 Balance at June 30, 2016 $ (248 ) $ 115 $ (177 ) $ (1 ) $ (311 )
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: Second Quarter 2016 2015 (Dollars in millions) Before Tax Net of Tax Before Tax Net of Tax Other comprehensive income (loss) Change in cumulative translation adjustment $ (70 ) $ (70 ) $ 76 $ 76 Defined benefit pension and other postretirement benefit plans: Amortization of unrecognized prior service credits included in net periodic costs (1) (11 ) (7 ) (10 ) (7 ) Derivatives and hedging: (2) Unrealized gain (loss) during period 62 38 (26 ) (16 ) Reclassification adjustment for losses included in net income, net 53 33 40 25 Total other comprehensive income (loss) $ 34 $ (6 ) $ 80 $ 78 First Six Months 2016 2015 (Dollars in millions) Before Tax Net of Tax Before Tax Net of Tax Other comprehensive income (loss) Change in cumulative translation adjustment $ 36 $ 36 $ (136 ) $ (136 ) Defined benefit pension and other postretirement benefit plans: Amortization of unrecognized prior service credits included in net periodic costs (1) (22 ) (14 ) (17 ) (11 ) Derivatives and hedging: (2) Unrealized gain during period 32 20 63 39 Reclassification adjustment for losses included in net income, net 60 37 35 22 Total other comprehensive income (loss) $ 106 $ 79 $ (55 ) $ (86 )

EARNINGS AND DIVIDENDS PER SH34

EARNINGS AND DIVIDENDS PER SHARE (Tables)	6 Months Ended
	Jun. 30, 2016
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"): Second Quarter First Six Months (In millions, except per share amounts) 2016 2015 2016 2015 Numerator Earnings attributable to Eastman: Earnings, net of tax $ 255 $ 297 $ 506 $ 468 Denominator Weighted average shares used for basic EPS 147.8 148.6 147.8 148.6 Dilutive effect of stock options and other awards 1.1 1.2 1.1 1.2 Weighted average shares used for diluted EPS 148.9 149.8 148.9 149.8 EPS (1) Basic $ 1.73 $ 2.00 $ 3.43 $ 3.15 Diluted $ 1.71 $ 1.98 $ 3.40 $ 3.12

ASSETS IMPAIRMENTS AND RESTRU35

ASSETS IMPAIRMENTS AND RESTRUCTURING (Tables)	6 Months Ended
	Jun. 30, 2016
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 six months 2016 and full year 2015 : (Dollars in millions) Balance at January 1, 2016 Provision/ Adjustments Non-cash Reductions Cash Reductions Balance at June 30, 2016 Non-cash charges $ — $ — $ — $ — $ — Severance costs 55 — — (21 ) 34 Site closure and restructuring costs 11 (2 ) 1 (1 ) 9 Total $ 66 $ (2 ) $ 1 $ (22 ) $ 43 (Dollars in millions) Balance at January 1, 2015 Provision/ Adjustments Non-cash Reductions Cash Reductions Balance at December 31, 2015 Non-cash charges $ — $ 107 $ (107 ) $ — $ — Severance costs 13 67 1 (26 ) 55 Site closure and restructuring costs 15 9 3 (16 ) 11 Total $ 28 $ 183 $ (103 ) $ (42 ) $ 66

SUPPLEMENTAL CASH FLOW INFORM36

SUPPLEMENTAL CASH FLOW INFORMATION (Tables)	6 Months Ended
	Jun. 30, 2016
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 Six Months 2016 2015 Other current assets $ (13 ) $ 15 Other noncurrent assets 14 48 Payables and other current liabilities 40 139 Long-term liabilities and equity (42 ) (107 ) Total $ (1 ) $ 95

SEGMENT INFORMATION (Tables)

SEGMENT INFORMATION (Tables)	6 Months Ended
	Jun. 30, 2016
Segment Reporting [Abstract]
Segment Information Disclosure	Second Quarter (Dollars in millions) 2016 2015 Sales Additives & Functional Products $ 770 $ 830 Advanced Materials 646 647 Chemical Intermediates 633 745 Fibers 234 299 Total Sales by Segment 2,283 2,521 Other 14 12 Total Sales $ 2,297 $ 2,533 First Six Months (Dollars in millions) 2016 2015 Sales Additives & Functional Products $ 1,507 $ 1,634 Advanced Materials 1,235 1,208 Chemical Intermediates 1,253 1,527 Fibers 514 583 Total Sales by Segment 4,509 4,952 Other 24 24 Total Sales $ 4,533 $ 4,976 Second Quarter (Dollars in millions) 2016 2015 Operating Earnings (Loss) Additives & Functional Products $ 168 $ 178 Advanced Materials 132 135 Chemical Intermediates 15 87 Fibers 72 93 Total Operating Earnings by Segment 387 493 Other Growth initiatives and businesses not allocated to segments (24 ) (22 ) Pension and other postretirement benefits income, net not allocated to operating segments 13 8 Acquisition integration, transaction, and restructuring costs — (10 ) Total Operating Earnings $ 376 $ 469 First Six Months (Dollars in millions) 2016 2015 Operating Earnings (Loss) Additives & Functional Products $ 321 $ 335 Advanced Materials 240 203 Chemical Intermediates 82 205 Fibers 158 86 Total Operating Earnings by Segment 801 829 Other Growth initiatives and businesses not allocated to segments (42 ) (48 ) Pension and other postretirement benefit income, net not allocated to operating segments 25 17 Acquisition integration, transaction, and restructuring costs (9 ) (18 ) Total Operating Earnings $ 775 $ 780 June 30, December 31, (Dollars in millions) 2016 2015 Assets by Segment (1) Additives & Functional Products $ 6,394 $ 6,370 Advanced Materials 4,315 4,227 Chemical Intermediates 3,118 2,930 Fibers 765 969 Total Assets by Segment 14,592 14,496 Corporate Assets 990 1,084 Total Assets $ 15,582 $ 15,580 (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		6 Months Ended
	Jun. 30, 2016USD ($)	Jun. 30, 2015USD ($)	Jun. 30, 2016USD ($)	Jun. 30, 2015USD ($)	Jun. 30, 2016EUR (€)	Dec. 31, 2015USD ($)
Accounting Policies [Abstract]
New Accounting Pronouncement or Change in Accounting Principle, Description			$ 31
Line of Credit Facility, Capacity Available for Trade Purchases	$ 175		175		€ 158
Percentage Of Sale On Receivables	85.00%
Receivable Sold Under Factoring Arrangement	$ 225	$ 240	460	$ 509
Cash Drawn From Facility	$ 104		$ 104			$ 106
Concentration Risk, Credit Risk, Financial Instrument, Maximum Exposure, Percent	10.00%

INVENTORIES (Details)

INVENTORIES (Details) - USD ($) $ in Millions	Jun. 30, 2016	Dec. 31, 2015
At FIFO or average cost (approximates current cost) [Abstract]
Finished goods	$ 1,038	$ 1,063
Work in process	209	212
Raw materials and supplies	469	500
Total inventories	1,716	1,775
Less: LIFO Reserve	271	296
Total inventories	$ 1,445	$ 1,479
Inventories valued on the LIFO method	60.00%	60.00%

GOODWILL (Details)

GOODWILL (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2016	Dec. 31, 2015
Goodwill [Line Items]
Goodwill	$ 4,520	$ 4,518
Goodwill, Transfers	0
Goodwill, Translation Adjustments	2
Additives And Functional Products [Member]
Goodwill [Line Items]
Goodwill, Impaired, Accumulated Impairment Loss	23
Goodwill	2,449	1,865
Goodwill, Transfers	583
Goodwill, Translation Adjustments	1
Adhesives And Plasticizers [Member]
Goodwill [Line Items]
Goodwill, Impaired, Accumulated Impairment Loss		35
Goodwill	0	111
Goodwill, Transfers	(111)
Goodwill, Translation Adjustments	0
Advanced Materials [Member]
Goodwill [Line Items]
Goodwill	1,290	1,293
Goodwill, Transfers	0
Goodwill, Translation Adjustments	(3)
Chemical Intermediates [Member]
Goodwill [Line Items]
Goodwill, Impaired, Accumulated Impairment Loss	12
Goodwill	771	1,239
Goodwill, Transfers	(472)
Goodwill, Translation Adjustments	4
Other Segments [Domain]
Goodwill [Line Items]
Goodwill, Impaired, Accumulated Impairment Loss	14	14
Goodwill	10	$ 10
Goodwill, Transfers	0
Goodwill, Translation Adjustments	$ 0

EQUITY INVESTMENTS (Details)

EQUITY INVESTMENTS (Details) - Primester [Member] - USD ($) $ in Millions	3 Months Ended
	Jun. 30, 2016	Jun. 01, 2016
Schedule of Equity Method Investments [Line Items]
Equity Method Investment, Ownership Percentage		50.00%
Proceeds from Sale of Equity Method Investments	$ 35
Equity Method Investments		$ 18
Equity Method Investment, Realized Gain (Loss) on Disposal	$ 17

PAYABLES AND OTHER CURRENT LI42

PAYABLES AND OTHER CURRENT LIABILITIES (Details) - USD ($) $ in Millions	Jun. 30, 2016	Dec. 31, 2015
Payables and Accruals [Abstract]
Trade creditors	$ 610	$ 699
Derivative hedging liability	206	218
Accrued payrolls, vacation, and variable-incentive compensation	172	227
Post-employment obligations	96	120
Other	383	361
Total payables and other current liabilities	$ 1,467	$ 1,625

PROVISION FOR INCOME TAXES PROV

PROVISION FOR INCOME TAXES PROVISION FOR INCOME TAXES (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Income Tax Disclosure [Abstract]
Effective Income Tax Rate Reconciliation, Deduction, Other, Amount	$ 16		$ 16
Effective Income Tax Rate Reconciliation, Prior Year Income Taxes, Amount			9
Provision for income taxes	$ 67	$ 104	$ 139	$ 188
Effective Income Tax Rate Reconciliation, Percent	21.00%	26.00%	22.00%	29.00%
Effective Income Tax Rate Reconciliation, Tax Settlement, Foreign, Amount		$ 6

BORROWINGS Part 1 (Details) Sch

BORROWINGS Part 1 (Details) Schedule of Long-term Debt Instruments € in Millions, $ in Millions	3 Months Ended			6 Months Ended
	Jun. 30, 2016USD ($)	Jun. 30, 2016EUR (€)	Jun. 30, 2015USD ($)	Jun. 30, 2016USD ($)	Jun. 30, 2015USD ($)	May 26, 2016USD ($)	May 26, 2016EUR (€)	Dec. 31, 2015USD ($)
Debt Instrument [Line Items]
Total Borrowings	$ 6,804			$ 6,804				$ 7,008
Borrowings due within one year	722			722				431
Long-term borrowings	6,082			6,082				6,577
Early debt extinguishment costs	9		$ 0	9	$ 0
Booked value of debt extinguished	498
2.4% notes due June 2017 [Member]
Debt Instrument [Line Items]
Debt Instrument, Repurchased Face Amount						$ 500
Long-term Debt	$ 499			$ 499				998
Debt Instrument, Interest Rate, Stated Percentage	2.40%			2.40%
Debt Instrument, Maturity Date	Jun. 30, 2017	Jun. 30, 2017
Repayments of Debt	$ 507
Redemption Premium	7
6.30% notes due November 2018 [Member]
Debt Instrument [Line Items]
Long-term Debt	$ 165			$ 165				166
Debt Instrument, Interest Rate, Stated Percentage	6.30%			6.30%
Debt Instrument, Maturity Date	Nov. 30, 2018	Nov. 30, 2018
5.5% notes due November 2019 [Member]
Debt Instrument [Line Items]
Long-term Debt	$ 249			$ 249				249
Debt Instrument, Interest Rate, Stated Percentage	5.50%			5.50%
Debt Instrument, Maturity Date	Nov. 30, 2019	Nov. 30, 2019
2.7% notes due January 2020 [Member]
Debt Instrument [Line Items]
Long-term Debt	$ 795			$ 795				794
Debt Instrument, Interest Rate, Stated Percentage	2.70%			2.70%
Debt Instrument, Maturity Date	Jan. 31, 2020	Jan. 31, 2020
4.5% notes due January 2021 [Member]
Debt Instrument [Line Items]
Long-term Debt	$ 249			$ 249				249
Debt Instrument, Interest Rate, Stated Percentage	4.50%			4.50%
Debt Instrument, Maturity Date	Jan. 31, 2021	Jan. 31, 2021
3.6% notes due August 2022 [Member]
Debt Instrument [Line Items]
Long-term Debt	$ 892			$ 892				896
Debt Instrument, Interest Rate, Stated Percentage	3.60%			3.60%
Debt Instrument, Maturity Date	Aug. 31, 2022	Aug. 31, 2022
1.5% notes due May 2023 [Member]
Debt Instrument [Line Items]
Debt Instrument, Face Amount						$ 614	€ 550
Proceeds from Issuance of Debt	$ 607	€ 544
Long-term Debt	$ 604			$ 604				0
Debt Instrument, Interest Rate, Stated Percentage	1.50%			1.50%
Debt Instrument, Maturity Date	May 31, 2023	May 31, 2023
7 1/4% debentures due January 2024 [Member]
Debt Instrument [Line Items]
Long-term Debt	$ 244			$ 244				244
Debt Instrument, Interest Rate, Stated Percentage	7.25%			7.25%
Debt Instrument, Maturity Date	Jan. 31, 2024	Jan. 31, 2024
7 5/8% debentures due June 2024 [Member]
Debt Instrument [Line Items]
Long-term Debt	$ 54			$ 54				54
Debt Instrument, Interest Rate, Stated Percentage	7.625%			7.625%
Debt Instrument, Maturity Date	Jun. 30, 2024	Jun. 30, 2024
3.8% notes due March 2025 [Member]
Debt Instrument [Line Items]
Long-term Debt	$ 793			$ 793				791
Debt Instrument, Interest Rate, Stated Percentage	3.80%			3.80%
Debt Instrument, Maturity Date	Mar. 31, 2025	Mar. 31, 2025
7.60% debentures due February 2027 [Member]
Debt Instrument [Line Items]
Long-term Debt	$ 222			$ 222				222
Debt Instrument, Interest Rate, Stated Percentage	7.60%			7.60%
Debt Instrument, Maturity Date	Feb. 28, 2027	Feb. 28, 2027
4.8% notes due September 2042 [Member]
Debt Instrument [Line Items]
Long-term Debt	$ 492			$ 492				492
Debt Instrument, Interest Rate, Stated Percentage	4.80%			4.80%
Debt Instrument, Maturity Date	Sep. 30, 2042	Sep. 30, 2042
4.65% notes due October 2044 [Member]
Debt Instrument [Line Items]
Long-term Debt	$ 870			$ 870				869
Debt Instrument, Interest Rate, Stated Percentage	4.65%			4.65%
Debt Instrument, Maturity Date	Oct. 31, 2044	Oct. 31, 2044
Credit Facility
Debt Instrument [Line Items]
Long-term Debt	$ 450			$ 450				550
Commercial Paper [Member]
Debt Instrument [Line Items]
Commercial Paper	222			222				430
Capital Lease Obligations [Member]
Debt Instrument [Line Items]
Long-term Debt	$ 4			$ 4				$ 4

BORROWINGS Part 2 (Details) Cre

BORROWINGS Part 2 (Details) Credit Facility and Commercial Paper Borrowings - USD ($) $ in Millions	3 Months Ended		12 Months Ended
	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015
Term Loan Agreement [Member]
Credit Facilities [Abstract]
Credit Facility, Borrowing Capacity	$ 1,000
Debt Instrument, Term	5 years
Line of Credit Facility, Maximum Month-end Outstanding Amount	$ 250		$ 350
Line of Credit Facility, Interest Rate During Period	1.71%		1.67%
Repayments of Lines of Credit	$ 100
Revolving Credit Facility [Member]
Credit Facilities [Abstract]
Credit Facility, Borrowing Capacity	1,250
Line of Credit Facility, Maximum Month-end Outstanding Amount	$ 0		$ 0
Line of Credit Facility, Expiration Date	Oct. 31, 2020
A/R Facility [Member]
Credit Facilities [Abstract]
Credit Facility, Borrowing Capacity	$ 250
Line of Credit Facility, Interest Rate During Period	1.27%		1.11%
Line of Credit Facility, Expiration Date	Apr. 30, 2018
Borrowings under the A/R facility	$ 200		$ 200
Repayments of Lines of Credit	190	$ 10
Credit and A/R Facility
Credit Facilities [Abstract]
Credit Facility, Borrowing Capacity	1,058		842
Commercial Paper [Member]
Credit Facilities [Abstract]
Commercial Paper	$ 222		$ 430
Debt, Weighted Average Interest Rate	0.81%		0.80%

BORROWINGS Part 3 (Details) Fai

BORROWINGS Part 3 (Details) Fair Value - USD ($) $ in Millions	Jun. 30, 2016	Dec. 31, 2015
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Long-term borrowings	$ 6,082	$ 6,577
Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Long-term Borrowings, Fair Value	6,569	6,647
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	6,116	6,094
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	453	553
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

DERIVATIVE AND NON-DERIVATIVE47

DERIVATIVE AND NON-DERIVATIVE FINANCIAL INSTRUMENTS Part 1 (Details) € in Millions, ¥ in Millions, bbl in Millions, MMBTU in Millions, $ in Millions	3 Months Ended
	Jun. 30, 2016USD ($)	Jun. 30, 2016EUR (€)	Jun. 30, 2016JPY (¥)bblMMBTU	Jun. 30, 2016USD ($)bblMMBTU	Jun. 30, 2016EUR (€)bblMMBTU	May 26, 2016USD ($)	May 26, 2016EUR (€)	Dec. 31, 2015JPY (¥)bblMMBTU	Dec. 31, 2015USD ($)bblMMBTU	Dec. 31, 2015EUR (€)bblMMBTU
Interest Rate Contract [Member] | Designated as Hedging Instrument [Member] | Fair Value Hedging [Member]
Derivative [Line Items]
Derivative, Notional Amount				$ 75					$ 0
Foreign Exchange Contract [Member] | Euro Member Countries, Euro | Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member]
Derivative [Line Items]
Derivative, Notional Amount				552	€ 498				689	€ 618
Foreign Exchange Contract [Member] | Japan, Yen | Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member]
Derivative [Line Items]
Derivative, Notional Amount			¥ 1,800	$ 17				¥ 2,400	$ 20
Commodity Contract [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member]
Derivative [Line Items]
Derivative, Nonmonetary Notional Amount | bbl			16	16	16			22	22	22
Energy Related Derivative [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member]
Derivative [Line Items]
Derivative, Nonmonetary Notional Amount | MMBTU			30	30	30			32	32	32
Interest Rate Swap [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member]
Derivative [Line Items]
Derivative, Notional Amount				$ 500					$ 500
Notes Due 2023 [Member]
Derivative [Line Items]
Debt Instrument, Face Amount Designated as a Net Investment Hedge						$ 614	€ 550
Notes Due 2023 [Member] | Euro Member Countries, Euro | Designated as Hedging Instrument [Member] | Net Investment Hedging [Member]
Derivative [Line Items]
Debt Instrument, Face Amount Designated as a Net Investment Hedge				$ 614	€ 550
Notional Amount of Nonderivative Instruments	$ 604	€ 544

DERIVATIVE AND NON-DERIVATIVE48

DERIVATIVE AND NON-DERIVATIVE FINANCIAL INSTRUMENTS Part 2 (Details) - USD ($) $ in Millions	Jun. 30, 2016	Dec. 31, 2015
Derivative Assets [Abstract]
Derivative Asset, Net	$ 109
Derivative Liabilities [Abstract]
Derivative Liability, Net	325
Fair Value, Measurements, Recurring [Member]
Derivative Assets [Abstract]
Derivative Asset, Fair Value, Gross Asset	110	$ 144
Derivative Liabilities [Abstract]
Derivative Liability, Fair Value, Gross Liability	(326)	(466)
Derivative, Fair Value, Net	(216)	(322)
Fair Value, Inputs, Level 1 [Member] | Fair Value, Measurements, Recurring [Member]
Derivative Assets [Abstract]
Derivative Asset, Fair Value, Gross Asset	0	0
Derivative Liabilities [Abstract]
Derivative Liability, Fair Value, Gross Liability	0	0
Derivative, Fair Value, Net	0	0
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member]
Derivative Assets [Abstract]
Derivative Asset, Fair Value, Gross Asset	110	144
Derivative Liabilities [Abstract]
Derivative Liability, Fair Value, Gross Liability	(326)	(466)
Derivative, Fair Value, Net	(216)	(322)
Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Recurring [Member]
Derivative Assets [Abstract]
Derivative Asset, Fair Value, Gross Asset	0	0
Derivative Liabilities [Abstract]
Derivative Liability, Fair Value, Gross Liability	0	0
Derivative, Fair Value, Net	0	0
Designated as Hedging Instrument [Member]
Derivative Assets [Abstract]
Derivative Asset, Fair Value, Gross Asset	108	144
Derivative Liabilities [Abstract]
Cash Flow Hedge Derivative Instrument Liabilities at Fair Value	326	466
Commodity Contract [Member] | Designated as Hedging Instrument [Member] | Other Current Assets [Member]
Derivative Assets [Abstract]
Cash Flow Hedge Derivative Instrument Assets at Fair Value	2	0
Commodity Contract [Member] | Designated as Hedging Instrument [Member] | Other Noncurrent Assets [Member]
Derivative Assets [Abstract]
Cash Flow Hedge Derivative Instrument Assets at Fair Value	2	0
Commodity Contract [Member] | Designated as Hedging Instrument [Member] | Other Current Liabilities [Member]
Derivative Liabilities [Abstract]
Cash Flow Hedge Derivative Instrument Liabilities at Fair Value	106	194
Commodity Contract [Member] | Designated as Hedging Instrument [Member] | Other Noncurrent Liabilities [Member]
Derivative Liabilities [Abstract]
Cash Flow Hedge Derivative Instrument Liabilities at Fair Value	142	242
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	49	65
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	55	79
Interest Rate Contract [Member] | Designated as Hedging Instrument [Member] | Other Noncurrent Assets [Member]
Derivative Assets [Abstract]
Fair Value Hedge Assets	2	0
Interest Rate Swap [Member] | Designated as Hedging Instrument [Member] | Other Current Liabilities [Member]
Derivative Liabilities [Abstract]
Cash Flow Hedge Derivative Instrument Liabilities at Fair Value	78	0
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	$ 0	$ 30

DERIVATIVE AND NON-DERIVATIVE49

DERIVATIVE AND NON-DERIVATIVE FINANCIAL INSTRUMENTS Part 3 (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
Hedging Instruments, Gain (Loss) [Line Items]
Change in unrealized gain in other comprehensive income	$ (70)	$ 76	$ 36	$ (136)
Amount After Tax of Gain (Loss) Recognized in Other Comprehensive Income On Derivatives, Effective Portion [Abstract]
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax	71	9	57	61	$ 35
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	(52)	(41)	(59)	(36)
Hedging Summary [Abstract]
Monetized positions and mark to market (gain) loss in accumulated other comprehensive income before tax	282	333	282	333
Price Risk Cash Flow Hedge Unrealized (Gain) Loss to be Reclassified During Next 12 Months	65		65
Loss on Cash Flow Hedge Ineffectiveness			2	1
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net	(23)	(1)	(14)	(12)
Net Investment Hedging [Member]
Hedging Instruments, Gain (Loss) [Line Items]
Amount of Ineffectiveness on Net Investment Hedges	0	0	0	0
Change in unrealized gain in other comprehensive income	3	0	3	0
Interest Rate Contract [Member] | Fair Value Hedging [Member] | Net Interest Expense
Hedging Instruments, Gain (Loss) [Line Items]
Gain (Loss) on Fair Value Hedges Recognized in Earnings	3	3	7	7
Commodity Contract [Member] | Cash Flow Hedging [Member]
Amount After Tax of Gain (Loss) Recognized in Other Comprehensive Income On Derivatives, Effective Portion [Abstract]
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax	79	22	109	27
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	0	1	0	3
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	(65)	(62)	(85)	(78)
Foreign Exchange Contract [Member] | Cash Flow Hedging [Member]
Amount After Tax of Gain (Loss) Recognized in Other Comprehensive Income On Derivatives, Effective Portion [Abstract]
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax	1	(28)	(25)	27
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	15	22	30	43
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]
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax	(9)	15	(27)	7
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	$ (2)	$ (2)	$ (4)	$ (4)

RETIREMENT PLANS (Details)

RETIREMENT PLANS (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items]
Pension Contributions			$ 0	$ 0
Components of net periodic benefit cost [Abstract]
Mark-to market pension and other postretirement benefits loss			0	2
United States Pension Plans of US Entity, Defined Benefit [Member]
Components of net periodic benefit cost [Abstract]
Service cost	$ 10	$ 10	20	19
Interest cost	19	22	37	44
Expected return on assets	(34)	(37)	(68)	(73)
Curtailment gain	0	0	0	0
Prior service credit	(1)	(1)	(2)	(2)
Mark-to market pension and other postretirement benefits loss	0	0	0	0
Net periodic benefit (credit) cost	(6)	(6)	(13)	(12)
Foreign Pension Plans, Defined Benefit [Member]
Components of net periodic benefit cost [Abstract]
Service cost	3	4	6	8
Interest cost	6	7	12	13
Expected return on assets	(8)	(10)	(16)	(19)
Curtailment gain	0	(7)	0	(7)
Prior service credit	0	0	0	0
Mark-to market pension and other postretirement benefits loss	0	2	0	2
Net periodic benefit (credit) cost	1	(4)	2	(3)
Post Retirement Welfare Plans [Member]
Components of net periodic benefit cost [Abstract]
Service cost	1	2	3	4
Interest cost	7	10	14	20
Expected return on assets	(1)	(1)	(3)	(3)
Curtailment gain	0	0	0	0
Prior service credit	(10)	(6)	(20)	(12)
Mark-to market pension and other postretirement benefits loss	0	0	0	0
Net periodic benefit (credit) cost	$ (3)	$ 5	$ (6)	$ 9

COMMITMENTS (Details)

COMMITMENTS (Details) $ in Millions	3 Months Ended
	Jun. 30, 2016USD ($)
Commitments and Contingencies Disclosure [Abstract]
Purchase Obligation	$ 1,500
Purchase obligations [Abstract]
Long-term Purchase Commitment, Period	30 years
Lease commitments [Abstract]
Operating Lease Commitments, Cancelable Noncancelable and Month-to-month	$ 265
Lessee Leasing Arrangements, Operating Leases, Term of Contract	40 years
Percentage of Operating Lease Commitments related to real property	50.00%
Percentage of Operating Lease Commitments related to railcars	40.00%
Percentage of Operating Lease Commitments related to machinery and equipment	10.00%
Guarantees [Abstract]
Operating Lease Residual Value Guarantees	$ 125
Term, other guarantees	30 years
Maximum potential future payment, other guarantees	$ 35

ENVIRONMENTAL MATTERS AND ASS52

ENVIRONMENTAL MATTERS AND ASSET RETIREMENT OBLIGATIONS (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2016	Dec. 31, 2015
Site Contingency [Line Items]
Portion Of Environmental Reserve Related To Previously Closed, Impaired, And Divested Sites	$ 8	$ 8
Accrual for Environmental Loss Contingencies [Roll Forward]
Beginning of period	336
End of period	332
Accrual for Environmental Loss Contingencies, Balance Sheet Classification [Abstract]
Accrued Environmental Loss Contingencies, Current	30	35
Accrued Environmental Loss Contingencies, Noncurrent	302	301
Environmental Remediation [Member]
Accrual for Environmental Loss Contingencies [Roll Forward]
Beginning of period	308
Changes in estimates recognized in earnings and other	9
Cash reductions	(13)
End of period	$ 304
Expected Payment Period of Environmental Contingencies	30 years
Environmental ARO [Member]
Site Contingency [Line Items]
Best Estimate Accrued to-date For Asset Retirement Obligation	$ 28	28
Non Environmental ARO [Member]
Site Contingency [Line Items]
Best Estimate Accrued to-date For Asset Retirement Obligation	45	46
Minimum [Member] | Environmental Remediation [Member]
Site Contingency [Line Items]
Loss Contingency, Estimate of Possible Loss	304	308
Maximum [Member] | Environmental Remediation [Member]
Site Contingency [Line Items]
Loss Contingency, Estimate of Possible Loss	$ 512	$ 516

STOCKHOLDERS' EQUITY STOCKHOLDE

STOCKHOLDERS' EQUITY STOCKHOLDERS' EQUITY Part 1 (Details) - USD ($) $ / shares in Units, $ in Millions		3 Months Ended		6 Months Ended			12 Months Ended
		Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016		Jun. 30, 2015	Dec. 31, 2015
Stockholders' Equity Note [Abstract]
Dividends, Per Share		$ 0.46	$ 0.40	$ 0.92		$ 0.80
Stockholders' Equity Attributable to Parent		$ 4,375		$ 4,375			$ 3,941
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest		4,453		4,453			4,021
Net earnings attributable to Eastman		255	$ 297	506		$ 468
Net earnings attributable to noncontrolling interest		2	2	2		3
Net earnings including noncontrolling interest		257	299	508		471
Cash dividends declared		(68)	(60)	(135)	[1]	(120)
Other Comprehensive Income		(6)	$ 78	79		$ (86)	(113)
Share-based Compensation Expense	[2]			20
Stock Option Exercises				11
Other	[3]			(3)
Share Repurchase				(45)
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders				(3)
Common Stock [Member]
Stockholders' Equity Attributable to Parent		2		2			2
Net earnings attributable to Eastman				0
Cash dividends declared	[1]			0
Other Comprehensive Income				0
Share-based Compensation Expense	[2]			0
Stock Option Exercises				0
Other	[3]			0
Share Repurchase				0
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders				0
Additional Paid-in Capital [Member]
Stockholders' Equity Attributable to Parent		1,892		1,892			1,863
Net earnings attributable to Eastman				0
Cash dividends declared	[1]			0
Other Comprehensive Income				0
Share-based Compensation Expense	[2]			20
Stock Option Exercises				11
Other	[3]			(2)
Share Repurchase				0
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders				0
Retained Earnings [Member]
Stockholders' Equity Attributable to Parent		5,517		5,517			5,146
Net earnings attributable to Eastman				506
Cash dividends declared	[1]			(135)
Other Comprehensive Income				0
Share-based Compensation Expense	[2]			0
Stock Option Exercises				0
Other	[3]			0
Share Repurchase				0
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders				0
Accumulated Other Comprehensive Income (Loss) [Member]
Stockholders' Equity Attributable to Parent		(311)		(311)			(390)
Net earnings attributable to Eastman				0
Cash dividends declared	[1]			0
Other Comprehensive Income				79
Share-based Compensation Expense	[2]			0
Stock Option Exercises				0
Other	[3]			0
Share Repurchase				0
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders				0
Treasury Stock [Member]
Stockholders' Equity Attributable to Parent		(2,725)		(2,725)			(2,680)
Net earnings attributable to Eastman				0
Cash dividends declared	[1]			0
Other Comprehensive Income				0
Share-based Compensation Expense	[2]			0
Stock Option Exercises				0
Other	[3]			0
Share Repurchase				(45)
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders				0
Parent [Member]
Stockholders' Equity Attributable to Parent		4,375		4,375			3,941
Net earnings attributable to Eastman				506
Cash dividends declared	[1]			(135)
Other Comprehensive Income				79
Share-based Compensation Expense	[2]			20
Stock Option Exercises				11
Other	[3]			(2)
Share Repurchase				(45)
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders				0
Noncontrolling Interest [Member]
Stockholders' Equity Attributable to Parent		$ 78		78			$ 80
Net earnings attributable to noncontrolling interest				2
Cash dividends declared	[1]			0
Other Comprehensive Income				0
Share-based Compensation Expense	[2]			0
Stock Option Exercises				0
Other	[3]			(1)
Share Repurchase				0
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders				$ (3)
[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 STOCKHOL54

STOCKHOLDERS' EQUITY STOCKHOLDERS' EQUITY Part 2 AOCI (Details) - USD ($) $ in Millions	3 Months Ended				6 Months Ended				12 Months Ended
	Jun. 30, 2016		Jun. 30, 2015		Jun. 30, 2016		Jun. 30, 2015		Dec. 31, 2015	Dec. 31, 2014
Accumulated Other Comprehensive Income (Loss) [Line Items]
Cumulative Translation Adjustment	$ (248)				$ (248)				$ (284)	$ (68)
Change in cumulative translation adjustment	(70)		$ 76		36		$ (136)		(216)
Benefit Plans Unrecognized Prior Service Credits	115				115				129	61
Amortization of unrecognized prior service credits included in net periodic costs	(7)	[1]	(7)	[1]	(14)	[1]	(11)	[1]	68
Unrealized Gains (Losses) on Derivative Instruments	(177)				(177)				(234)	(269)
Change in Unrealized Gains (Losses) on Derivative Instruments	71		9		57		61		35
Unrealized Losses on Investments	(1)				(1)				(1)	(1)
Change in Unrealized Losses on Investments					0				0
Accumulated Other Comprehensive Income (Loss), Net of Tax	(311)				(311)				(390)	$ (277)
Total other comprehensive income (loss), net of tax	$ (6)		$ 78		$ 79		$ (86)		$ (113)
[1]	Included in the calculation of net periodic benefit costs for pension and other postretirement benefit plans. See Note 9, "Retirement Plans".

STOCKHOLDERS' EQUITY STOCKHOL55

STOCKHOLDERS' EQUITY STOCKHOLDERS' EQUITY Part 3 OCI (Details) - USD ($) $ in Millions		3 Months Ended				6 Months Ended				12 Months Ended
		Jun. 30, 2016		Jun. 30, 2015		Jun. 30, 2016		Jun. 30, 2015		Dec. 31, 2015
Other Comprehensive Income (Loss), Net of Tax [Abstract]
Change in cumulative translation adjustment		$ (70)		$ 76		$ 36		$ (136)		$ (216)
Amortization of unrecognized prior service credits included in net periodic costs		(7)	[1]	(7)	[1]	(14)	[1]	(11)	[1]	68
Unrealized gain (loss)	[2]	38		(16)		20		39
Reclassification adjustment for losses included in net income, net	[2]	33		25		37		22
Total other comprehensive income (loss), net of tax		(6)		78		79		(86)		$ (113)
Other Comprehensive Income (Loss), before Tax [Abstract]
Change in cumulative translation adjustment, before tax		(70)		76		36		(136)
Amortization of unrecognized prior service credits included in net periodic costs, before tax	[1]	(11)		(10)		(22)		(17)
Unrealized gain (loss), before tax	[2]	62		(26)		32		63
Reclassification adjustment for (gain) loss included in net income, before tax	[2]	53		40		60		35
Total other comprehensive income (loss), before tax		$ 34		$ 80		$ 106		$ (55)
[1]	Included in the calculation of net periodic benefit costs for pension and other postretirement benefit plans. See Note 9, "Retirement Plans".
[2]	For additional information regarding the impact of reclassifications into earnings, refer to Note 8, "Derivative and Non-Derivative Financial Instruments".

EARNINGS AND DIVIDENDS PER SH56

EARNINGS AND DIVIDENDS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Millions		3 Months Ended		6 Months Ended
		Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Earnings Per Share [Abstract]
Earnings, net of tax		$ 255	$ 297	$ 506	$ 468
Weighted average shares used for basic EPS (in shares)		147,800,000	148,600,000	147,800,000	148,600,000
Dilutive effect of stock options and other awards		1,100,000	1,200,000	1,100,000	1,200,000
Weighted average shares used for diluted EPS (in shares)		148,900,000	149,800,000	148,900,000	149,800,000
Earnings, basic	[1]	$ 1.73	$ 2	$ 3.43	$ 3.15
Earnings, diluted	[1]	$ 1.71	$ 1.98	$ 3.40	$ 3.12
Underlying options excluded from the computation of diluted earnings per share (in shares)		1,056,961	619,418	1,076,935	272,143
Shares repurchased (in shares)		344,790	65,000	632,071	435,000
Cash dividends declared (per share)		$ 0.46	$ 0.40	$ 0.92	$ 0.80
[1]	Earnings per share are calculated using whole dollars and shares.

ASSETS IMPAIRMENTS AND RESTRU57

ASSETS IMPAIRMENTS AND RESTRUCTURING (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
Restructuring Cost and Reserve [Line Items]
Asset Impairment Charges			$ 0	$ 89
Restructuring, Settlement and Impairment Provisions	$ 0	$ 0	(2)	109
Restructuring Charge [Roll Forward]
Balance at Beginning of Period			66	28	$ 28
Provision / Adjustments			(2)		183
Restructuring Reserve, Accrual Adjustment			1
Non-cash Reductions					(103)
Cash Reductions			(22)		(42)
Balance at End of Period	43		43		66
Non-Cash Charges [Member]
Restructuring Charge [Roll Forward]
Balance at Beginning of Period			0	0	0
Provision / Adjustments			0		107
Non-cash Reductions			0		(107)
Cash Reductions			0		0
Balance at End of Period	0		0		0
Employee Severance [Member]
Restructuring Charge [Roll Forward]
Balance at Beginning of Period			55	13	13
Provision / Adjustments			0		67
Restructuring Reserve, Accrual Adjustment			0		1
Cash Reductions			(21)		(26)
Balance at End of Period	34		34		55
Facility Closing [Member]
Restructuring Charge [Roll Forward]
Balance at Beginning of Period			11	15	15
Provision / Adjustments			(2)		9
Restructuring Reserve, Accrual Adjustment			1		3
Cash Reductions			(1)		(16)
Balance at End of Period	$ 9		9		$ 11
Workington UK Closure [Member] | Fibers [Member] | Facility Closing [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring Charges		7		14
Defined Benefit Plan, Recognized Net Gain (Loss) Due to Settlements and Curtailments		$ 7
Asset Impairment Charges				81
Discontinue growth initiative [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring Charges				4
Asset Impairment Charges				$ 8
Crystex R&D facility in France [Member] | Additives And Functional Products [Member]
Restructuring Cost and Reserve [Line Items]
Gain (Loss) on Disposition of Assets			$ 2

SHARE-BASED COMPENSATION AWAR58

SHARE-BASED COMPENSATION AWARDS (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense before tax	$ 7	$ 10	$ 20	$ 21
Share-based compensation net of deferred tax expense	$ 4	$ 6	$ 12	$ 13

SUPPLEMENTAL CASH FLOW INFORM59

SUPPLEMENTAL CASH FLOW INFORMATION (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Supplemental Cash Flow Information [Abstract]
Other current assets	$ (13)	$ 15
Other noncurrent assets	14	48
Payables and other current liabilities	40	139
Long-term liabilities and equity	(42)	(107)
Total	$ (1)	$ 95

SEGMENT INFORMATION (Details)

SEGMENT INFORMATION (Details) $ in Millions		3 Months Ended		6 Months Ended
		Jun. 30, 2016USD ($)Segment	Jun. 30, 2015USD ($)	Jun. 30, 2016USD ($)	Jun. 30, 2015USD ($)	Dec. 31, 2015USD ($)
Segment Reporting Information [Line Items]
Number of Operating Segments | Segment		4
Sales [Abstract]
Sales		$ 2,297	$ 2,533	$ 4,533	$ 4,976
Operating Earnings (loss) [Abstract]
Operating Income (Loss)		376	469	775	780
Segment Reporting Information, Additional Information [Abstract]
Assets by Segment		15,582		15,582		$ 15,580	[1]
Operating Segments [Member]
Sales [Abstract]
Sales		2,283	2,521	4,509	4,952
Operating Earnings (loss) [Abstract]
Operating Income (Loss)		387	493	801	829
Segment Reporting Information, Additional Information [Abstract]
Assets by Segment	[1]	14,592		14,592		14,496
Corporate, Non-Segment [Member]
Sales [Abstract]
Sales		14	12	24	24
Segment Reporting Information, Additional Information [Abstract]
Assets by Segment	[1]	990		990		1,084
Growth Initiatives and Businesses not Allocated to Segments [Member] | Corporate, Non-Segment [Member]
Operating Earnings (loss) [Abstract]
Operating Income (Loss)		(24)	(22)	(42)	(48)
Pension and OPEB Costs Not Allocated to Operating Segments [Member] | Corporate, Non-Segment [Member]
Operating Earnings (loss) [Abstract]
Operating Income (Loss)		13	8	25	17
Transaction, Integration, and Restructuring Costs Related to Solutia Acquisition [Member] | Corporate, Non-Segment [Member]
Operating Earnings (loss) [Abstract]
Operating Income (Loss)		0	(10)	(9)	(18)
Additives And Functional Products [Member] | Operating Segments [Member]
Sales [Abstract]
Sales		770	830	1,507	1,634
Operating Earnings (loss) [Abstract]
Operating Income (Loss)		168	178	321	335
Segment Reporting Information, Additional Information [Abstract]
Assets by Segment	[1]	6,394		6,394		6,370
Advanced Materials [Member] | Operating Segments [Member]
Sales [Abstract]
Sales		646	647	1,235	1,208
Operating Earnings (loss) [Abstract]
Operating Income (Loss)		132	135	240	203
Segment Reporting Information, Additional Information [Abstract]
Assets by Segment	[1]	4,315		4,315		4,227
Chemical Intermediates [Member] | Operating Segments [Member]
Sales [Abstract]
Sales		633	745	1,253	1,527
Operating Earnings (loss) [Abstract]
Operating Income (Loss)		15	87	82	205
Segment Reporting Information, Additional Information [Abstract]
Assets by Segment	[1]	3,118		3,118		2,930
Fibers [Member] | Operating Segments [Member]
Sales [Abstract]
Sales		234	299	514	583
Operating Earnings (loss) [Abstract]
Operating Income (Loss)		72	$ 93	158	$ 86
Segment Reporting Information, Additional Information [Abstract]
Assets by Segment	[1]	$ 765		$ 765		$ 969
[1]	The chief operating decision maker holds segment management accountable for accounts receivable, inventory, fixed assets, goodwill, and intangible assets.