Eastman Chemical (EMN) 10-Q 2 Nov 17 2017 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	9 Months Ended
	Sep. 30, 2017	Dec. 31, 2016
Document and Entity Information [Abstract]
Entity Registrant Name	EASTMAN CHEMICAL CO
Entity Central Index Key	915,389
Document Type	10-Q
Document Period End Date	Sep. 30, 2017
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding	143,734,399
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q3
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Public Float		$ 9,903,245,691

UNAUDITED CONSOLIDATED STATEMEN

UNAUDITED CONSOLIDATED STATEMENTS OF EARNINGS, COMPREHENSIVE INCOME AND RETAINED EARNINGS - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017		Sep. 30, 2016
Income Statement [Abstract]
Sales	$ 2,465	$ 2,287	$ 7,187		$ 6,820
Cost of sales	1,774	1,666	5,220		4,960
Gross profit	691	621	1,967		1,860
Selling, general and administrative expenses	175	181	525		538
Research and development expenses	56	54	165		163
Asset impairments and restructuring charges, net	0	30	0		28
Operating earnings	460	356	1,277		1,131
Net interest expense	61	64	182		191
Early debt extinguishment costs	0	0	0		9
Other (income) charges, net	(4)	3	(8)		(5)
Earnings before income taxes	403	289	1,103		936
Provision for income taxes	79	56	206		195
Net earnings	324	233	897		741
Less: Net earnings attributable to noncontrolling interest	1	1	4		3
Net earnings attributable to Eastman	$ 323	$ 232	$ 893		$ 738
Basic earnings per share attributable to Eastman
Basic earnings per share attributable to Eastman	$ 2.24	$ 1.57	$ 6.15		$ 5
Diluted earnings per share attributable to Eastman
Diluted earnings per share attributable to Eastman	$ 2.22	$ 1.56	$ 6.10		$ 4.96
Comprehensive Income
Net earnings including noncontrolling interest	$ 324	$ 233	$ 897		$ 741
Other comprehensive income (loss), net of tax:
Change in cumulative translation adjustment	17	(42)	60		(6)
Defined benefit pension and other postretirement benefit plans:
Amortization of unrecognized prior service credits included in net periodic costs	(7)	(7)	(20)		(21)
Derivatives and hedging:
Unrealized gain (loss) during period	31	(7)	(8)		13
Reclassification adjustment for losses included in net income, net	7	19	11		56
Total other comprehensive income (loss), net of tax	48	(37)	43		42
Comprehensive income including noncontrolling interest	372	196	940		783
Less: Net earnings attributable to noncontrolling interest	1	1	4		3
Comprehensive income attributable to Eastman	371	195	936		780
Retained Earnings
Retained earnings at beginning of period	6,142	5,517	5,721		5,146
Net earnings attributable to Eastman	323	232	893		738
Cash dividends declared	(74)	(69)	(223)	[1]	(204)
Retained earnings at end of period	$ 6,391	$ 5,680	$ 6,391		$ 5,680
[1]	Cash dividends declared includes cash dividends paid and dividends declared, but unpaid.

UNAUDITED CONSOLIDATED STATEME3

UNAUDITED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION - USD ($) $ in Millions		Sep. 30, 2017	Dec. 31, 2016
Current assets
Cash and cash equivalents		$ 195	$ 181
Trade receivables, net of allowance for doubtful accounts		1,047	812
Miscellaneous receivables		378	399
Inventories		1,576	1,404
Other current assets		49	70
Total current assets		3,245	2,866
Properties
Properties and equipment at cost		12,145	11,699
Less: Accumulated depreciation		6,660	6,423
Net properties		5,485	5,276
Goodwill		4,520	4,461
Intangible assets, net of accumulated amortization		2,404	2,469
Other noncurrent assets		370	385
Total assets	[1]	16,024	15,457
Current liabilities
Payables and other current liabilities		1,402	1,512
Borrowings due within one year		369	283
Total current liabilities		1,771	1,795
Long-term borrowings		6,325	6,311
Deferred income tax liabilities		1,349	1,206
Post-employment obligations		989	1,018
Other long-term liabilities		491	519
Total liabilities		10,925	10,849
Stockholders' equity
Common stock ($0.01 par value – 350,000,000 shares authorized; shares issued – 218,313,858 and 217,707,600 for 2017 and 2016, respectively)		2	2
Additional paid-in capital		1,968	1,915
Retained earnings		6,391	5,721
Accumulated other comprehensive income (loss)		(238)	(281)
Stockholder's Equity before Treasury Stock		8,123	7,357
Less: Treasury stock at cost (74,630,257 shares for 2017 and 71,269,474 shares for 2016)		3,100	2,825
Total Eastman stockholders' equity		5,023	4,532
Noncontrolling interest		76	76
Total equity		5,099	4,608
Total liabilities and stockholders' equity		$ 16,024	$ 15,457
[1]	Segment assets include accounts receivable, inventory, fixed assets, goodwill, and intangible assets. Segment asset balances for shared fixed assets within the CI and Fibers segments as of December 31, 2016 have been reclassified to conform to current period allocation methodology.

UNAUDITED CONSOLIDATED STATEME4

UNAUDITED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (Parenthetical) - $ / shares	Sep. 30, 2017	Dec. 31, 2016
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)	218,313,858	217,707,600
Treasury stock at cost (in shares)	74,630,257	71,269,474

UNAUDITED CONSOLIDATED STATEME5

UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Operating activities
Net earnings	$ 897	$ 741
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization	440	436
Mark-to-market loss on pension and other postretirement benefit plans	0	30
Early debt extinguishment costs	0	9
Gains from sale of businesses	(3)	(17)
Provision for deferred income taxes	70	89
Changes in operating assets and liabilities, net of effect of acquisitions and divestitures:
(Increase) decrease in trade receivables	(188)	(105)
(Increase) decrease in inventories	(143)	12
Increase (decrease) in trade payables	(20)	(66)
Pension and other postretirement contributions (in excess of) less than expenses	(81)	(134)
Variable compensation (in excess of) less than expenses	18	(19)
Other items, net	21	19
Net cash provided by operating activities	1,011	995
Investing activities
Additions to properties and equipment	(438)	(375)
Proceeds from sale of businesses and assets	14	41
Acquisitions, net of cash acquired	(4)	(26)
Other items, net	(2)	1
Net cash used in investing activities	(430)	(359)
Financing activities
Net increase (decrease) in commercial paper and other borrowings	71	(255)
Proceeds from borrowings	600	807
Repayment of borrowings	(750)	(957)
Dividends paid to stockholders	(223)	(204)
Treasury stock purchases	(275)	(120)
Dividends paid to noncontrolling interest	(5)	(8)
Proceeds from stock option exercises and other items, net	14	16
Net cash used in financing activities	(568)	(721)
Effect of exchange rate changes on cash and cash equivalents	1	(1)
Net change in cash and cash equivalents	14	(86)
Cash and cash equivalents at beginning of period	181	293
Cash and cash equivalents at end of period	$ 195	$ 207

BASIS OF PRESENTATION

BASIS OF PRESENTATION	9 Months Ended
	Sep. 30, 2017
Accounting Policies [Abstract]
BASIS OF PRESENTATION	BASIS OF PRESENTATION The accompanying unaudited consolidated financial statements have been prepared by Eastman Chemical Company ("Eastman" or the "Company") in accordance and consistent with the accounting policies stated in the Company's 2016 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 2016 Annual Report on Form 10-K. The December 31, 2016 financial position data included herein was derived from the audited consolidated financial statements included in the 2016 Annual Report on Form 10-K but does not include all disclosures required by accounting principles generally accepted in the United States ("GAAP"). In the opinion of management, the unaudited consolidated financial statements include all normal recurring adjustments necessary for fair statement of the interim financial information in conformity with GAAP. These statements contain 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 conform to current period presentation.

INVENTORIES

INVENTORIES	9 Months Ended
	Sep. 30, 2017
Inventory Disclosure [Abstract]
INVENTORIES	INVENTORIES September 30, December 31, (Dollars in millions) 2017 2016 Finished goods $ 1,120 $ 997 Work in process 216 198 Raw materials and supplies 501 473 Total inventories at FIFO or average cost 1,837 1,668 Less: LIFO reserve 261 264 Total inventories $ 1,576 $ 1,404 Inventories valued on the last-in, first-out ("LIFO") method were approximately 60 percent of total inventories at both September 30, 2017 and December 31, 2016 .

PAYABLES AND OTHER CURRENT LIAB

PAYABLES AND OTHER CURRENT LIABILITIES	9 Months Ended
	Sep. 30, 2017
Payables and Accruals [Abstract]
PAYABLES AND OTHER CURRENT LIABILITIES	PAYABLES AND OTHER CURRENT LIABILITIES September 30, December 31, (Dollars in millions) 2017 2016 Trade creditors $ 689 $ 704 Accrued payrolls, vacation, and variable-incentive compensation 183 196 Accrued taxes 106 106 Post-employment obligations 83 110 Other 341 396 Total payables and other current liabilities $ 1,402 $ 1,512 The "Other" above consists primarily of accruals for dividends payable, interest payable, derivative hedging liabilities, the current portion of environmental liabilities, and miscellaneous accruals.

PROVISION FOR INCOME TAXES

PROVISION FOR INCOME TAXES	9 Months Ended
	Sep. 30, 2017
Income Tax Disclosure [Abstract]
PROVISION FOR INCOME TAXES	PROVISION FOR INCOME TAXES Third Quarter First Nine Months (Dollars in millions) 2017 2016 2017 2016 $ % $ % $ % $ % Provision for income taxes and tax rate $ 79 20 % $ 56 20 % $ 206 19 % $ 195 21 % The first nine months 2017 effective tax rate includes a $22 million tax benefit to reflect finalization of prior years' income tax returns and a $22 million tax benefit due to planned amendments to prior years' income tax returns. The third quarter and first nine 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. The third quarter and first nine months 2016 effective tax rates include a tax benefit of $16 million related to foreign tax credits as a result of the amendment of prior year income tax returns. The first nine months 2016 effective tax rate includes a $16 million one-time benefit for the restoration of tax basis for which depreciation deductions were previously limited and a $9 million tax benefit primarily due to adjustments to the tax provision to reflect the finalization of 2014 foreign income tax returns.

BORROWINGS

BORROWINGS	9 Months Ended
	Sep. 30, 2017
Debt Disclosure [Abstract]
BORROWINGS	BORROWINGS September 30, December 31, (Dollars in millions) 2017 2016 Borrowings consisted of: 5.5% notes due November 2019 $ 249 $ 249 2.7% notes due January 2020 797 796 4.5% notes due January 2021 184 184 3.6% notes due August 2022 739 741 1.50% notes due May 2023 (1) 881 786 7 1/4% debentures due January 2024 197 197 7 5/8% debentures due June 2024 43 43 3.8% notes due March 2025 691 689 1.875% notes due November 2026 (1) 583 519 7.60% debentures due February 2027 195 195 4.8% notes due September 2042 493 493 4.65% notes due October 2044 871 870 Credit facilities borrowings 399 549 Commercial paper borrowings 366 280 Capital leases and other 6 3 Total borrowings 6,694 6,594 Borrowings due within one year 369 283 Long-term borrowings $ 6,325 $ 6,311 (1) The carrying value of the euro-denominated 1.50% notes due May 2023 and 1.875% notes due November 2026 will fluctuate with changes in the euro exchange rate. The carrying value of these euro-denominated borrowings have been designated as non-derivative net investment hedges of a portion of the Company's net investments in euro functional-currency denominated subsidiaries to offset foreign currency fluctuations. During the nine months ended September 30, 2017 , pre-tax losses of $158 million were recognized in "Other comprehensive income (loss)" ("OCI") for revaluation of these notes. Credit Facility and Commercial Paper Borrowings In December 2014, Eastman borrowed $1 billion under a five-year term loan ("2019 Term Loan"). As of September 30, 2017 , the 2019 Term Loan agreement balance outstanding was $20 million with an interest rate of 2.49 percent . In third quarter 2017 , $230 million of the Company's borrowings under the 2019 Term Loan agreement were repaid using available cash. As of December 31, 2016 , the 2019 Term Loan agreement balance outstanding was $250 million with an interest rate of 2.02 percent . In December 2016, the Company borrowed $300 million under a second five-year term loan ("2021 Term Loan"). As of September 30, 2017 , the 2021 Term Loan agreement balance outstanding was $279 million with an interest rate of 2.49 percent . In third quarter 2017 , $20 million of the Company's borrowings under the 2021 Term Loan agreement were repaid using available cash. As of December 31, 2016 , the 2021 Term Loan agreement balance outstanding was $299 million with an interest rate of 1.95 percent . Borrowings under the 2019 Term Loan and 2021 Term Loan agreements 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 2021. Borrowings under the Credit Facility are subject to interest at varying spreads above quoted market rates and a commitment fee is paid on the total unused commitment. The Credit Facility provides available liquidity for general corporate purposes and supports commercial paper borrowings. Commercial paper borrowings are classified as short-term. At September 30, 2017 and December 31, 2016 , the Company had no outstanding borrowings under the Credit Facility. At September 30, 2017 , the Company's commercial paper borrowings were $366 million with a weighted average interest rate of 1.44 percent . At December 31, 2016, the Company's commercial paper borrowings were $280 million with a weighted average interest rate of 1.12 percent . The Company has access to a $250 million accounts receivable securitization agreement (the "A/R Facility") that expires April 2019. Eastman Chemical Financial Corporation ("ECFC"), a subsidiary of the Company, has an agreement to sell interests in trade receivables under the A/R Facility to a third party purchaser. Third party creditors of ECFC have first priority claims on the assets of ECFC before those assets would be available to satisfy the Company's general obligations. Borrowings under the A/R Facility are subject to interest rates based on a spread over the lender's borrowing costs, and ECFC pays a fee to maintain availability of the A/R Facility. At September 30, 2017 , the Company's borrowings under the A/R Facility were $100 million supported by trade receivables with an interest rate of 2.07 percent . At December 31, 2016 , the Company had no borrowings under the A/R Facility. The Credit and A/R Facilities and other borrowing arrangements contain customary covenants and events of default, some of which require the Company to maintain certain financial ratios that determine the amounts available and terms of borrowings. The Company was in compliance with all covenants at both September 30, 2017 and December 31, 2016 . Fair Value of Borrowings The Company has classified its long-term borrowings at September 30, 2017 and December 31, 2016 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 2016 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 under the Term Loans and the A/R Facility equals the carrying value and is classified as Level 2. The Company had no borrowings classified as Level 3 as of September 30, 2017 and December 31, 2016 . Fair Value Measurements at September 30, 2017 (Dollars in millions) Reported Amount Total Fair Value Quoted Prices in Active Markets for Identical Liabilities (Level 1) Significant Other Observable Inputs (Level 2) Long-term borrowings $ 6,325 $ 6,735 $ 6,333 $ 402 Fair Value Measurements at December 31, 2016 (Dollars in millions) Reported Amount December 31, 2016 Total Fair Value Quoted Prices in Active Markets for Identical Liabilities (Level 1) Significant Other Observable Inputs (Level 2) Long-term borrowings $ 6,311 $ 6,586 $ 6,036 $ 550

DERIVATIVE AND NON-DERIVATIVE F

DERIVATIVE AND NON-DERIVATIVE FINANCIAL INSTRUMENTS	9 Months Ended
	Sep. 30, 2017
Derivative Instruments and Hedging Activities Disclosure [Abstract]
DERIVATIVES	DERIVATIVE AND NON-DERIVATIVE FINANCIAL INSTRUMENTS Overview of 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 financial instruments, when appropriate, in accordance with the Company's hedging strategy and policies. Designation is performed on a specific exposure basis to support hedge accounting. The Company does not enter into derivative transactions for speculative purposes. For further information on hedging programs, see Note 10, "Derivative and Non-Derivative Financial Instruments" , to the consolidated financial statements in Part II, Item 8 of the Company's 2016 Annual Report on Form 10-K. Cash Flow Hedges Cash flow hedges are derivative instruments designated and used to hedge the exposure to variability in expected future cash flows that are attributable to a particular risk. The derivative instruments that are designated and qualify as a cash flow hedge are reported on the balance sheet at fair value and the changes in fair value of these hedging instruments are offset in part or in whole by corresponding changes in the anticipated cash flows of the underlying exposures being hedged. The net of the change in the hedge instrument and item being hedged for qualifying cash flow hedges is reported as a component of "Accumulated other comprehensive income (loss)" ("AOCI") located in the Unaudited Consolidated Statements of Financial Position 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. Fair Value Hedges Fair value hedges are defined as derivative or non-derivative instruments designated and used to hedge the exposure to changes in the fair value of an asset or a liability or an identified portion thereof that is attributable to a particular risk. The derivative instruments that are designated and qualify as fair value hedges are reported on the balance sheet at fair value and the changes in fair value of these hedging instruments are offset in part or in whole by corresponding changes in the anticipated cash flows of the underlying exposures being hedged. The net of the change in the hedge instrument and item being hedged for qualifying fair value hedges is reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. Gains and losses on the derivatives representing hedge ineffectiveness are recognized in current earnings. In second quarter 2016, the Company entered into a fixed-to-floating interest rate swap on a portion of the 3.8% notes due March 2025 to manage the Company's mix of fixed and variable rate debt. Net Investment Hedges Net investment hedges are defined as derivative or non-derivative instruments designated and used to hedge the foreign currency exposure of net investments in certain foreign operations. The net of the change in the hedge instrument and item being hedged for qualifying net investment hedges is reported as a component of "Change in cumulative translation adjustment" within AOCI 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. The foreign currency-denominated borrowings designated as net investment hedges are included as part of "Long-term borrowings'" within the Unaudited Consolidated Statements of Financial Position. The Company designated the euro-denominated 1.50% notes due May 2023 in the principal amounts of €200 million ( $213 million ) in fourth quarter 2016 and €550 million ( $614 million ) in second quarter 2016 and the euro-denominated 1.875% notes due November 2026 in the principal amount of €500 million ( $534 million ) in fourth quarter 2016 as non-derivative net investment hedges of a portion of the Company's net investments in euro functional currency-denominated subsidiaries to offset foreign currency fluctuations. Summary of Financial Position and Financial Performance of Hedging Instruments The following table shows the notional amounts outstanding at September 30, 2017 and December 31, 2016 associated with the Company's hedging programs. Notional Outstanding September 30, 2017 December 31, 2016 Derivatives designated as cash flow hedges: Foreign Exchange Forward and Option Contracts (in millions) EUR/USD (in EUR) €396 €378 EUR/USD (in approximate USD equivalent) $468 $398 JPY/USD (in JPY) ¥450 ¥1,800 JPY/USD (in approximate USD equivalent) $4 $15 Commodity Forward and Collar Contracts Feedstock (in million barrels) 9 11 Energy (in million million british thermal units) 21 23 Derivatives designated as fair value hedges: Fixed-for-floating interest rate swaps (in millions) $75 $75 Non-derivatives designated as net investment hedges: Foreign Currency Net Investment Hedges (in millions) EUR/USD (in EUR) €1,240 €1,238 Fair Value Measurements All the Company's derivative assets and liabilities are currently classified as Level 2 with fair values 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. The Company diversifies its positions among such counterparties to reduce its exposure to counterparty risk and credit losses and monitors the creditworthiness of its counterparties on an on-going basis. The Company had no credit losses during third quarter and first nine months 2017 and 2016 . For additional fair value measurement information, see Note 1, "Significant Accounting Policies" , and Note 10, "Derivative and Non-Derivative Financial Instruments" , to the consolidated financial statements in Part II, Item 8 of the Company's 2016 Annual Report on Form 10-K. The following table shows the financial assets and liabilities valued on a gross basis as of September 30, 2017 and December 31, 2016 . Additionally, the table below indicates where the derivatives are reported on the Unaudited Consolidated Statements of Financial Position. During the periods presented, there were no transfers between fair value hierarchy levels. The Financial Position and Fair Value Measurements of Hedging Instruments on a Gross Basis (Dollars in millions) Derivative Type Statements of Financial Position Classification September 30, 2017 Level 2 December 31, 2016 Level 2 Derivatives designated as cash flow hedges: Commodity contracts Other current assets $ 9 $ 5 Commodity contracts Other noncurrent assets 1 2 Foreign exchange contracts Other current assets 27 49 Foreign exchange contracts Other noncurrent assets 8 47 Derivatives designated as fair value hedges: Fixed-for-floating interest rate swap Other current assets — 1 Total Derivative Assets $ 45 $ 104 Derivatives designated as cash flow hedges: Commodity contracts Payables and other current liabilities $ 38 $ 62 Commodity contracts Other long-term liabilities 28 69 Foreign exchange contracts Payables and other current liabilities 4 — Foreign exchange contracts Other long-term liabilities 2 — Derivatives designated as fair value hedges: Fixed-for-floating interest rate swap Long-term borrowings 3 4 Total Derivative Liabilities $ 75 $ 135 Total Net Derivative Liabilities $ 30 $ 31 In addition to the fair value associated with derivative instruments designated as cash flow hedges and fair value hedges noted in the table above, the Company had a carrying value of $1.5 billion and $1.3 billion associated with non-derivative instruments designated as foreign currency net investment hedges at September 30, 2017 and December 31, 2016 , respectively. The designated foreign currency-denominated borrowings are included in the "Long-term borrowings" line item of the Unaudited Consolidated Statements of Financial Position. All the Company's derivative contracts are subject to master netting arrangements, or similar agreements, which provide for the option to settle contracts on a net basis when they settle on the same day and in the same currency. In addition, these arrangements provide for a net settlement of all contracts with a given counterparty in the event that the arrangement is terminated due to the occurrence of default or a termination event. The Company has elected to present the derivative contracts on a gross basis in the Unaudited Consolidated Statements of Financial Position. If the Company presented the derivatives contracts on a net basis, there would be no material difference in asset and liability positions. The Company does not have any cash collateral due under such agreements. The tables below present the effect of hedging instruments on OCI and the financial performance for third quarter and first nine months 2017 and 2016 : (Dollars in millions) Change in amount of after tax gain/(loss) recognized in OCI on derivatives (effective portion) Pre-tax amount of gain/(loss) reclassified from AOCI into income (effective portion) Additional pre-tax gain/(loss) recognized in earnings (effective portion) Third Quarter Third Quarter Third Quarter Hedging Relationships 2017 2016 2017 2016 2017 2016 Income Statement Classification Derivatives in cash flow hedging relationships: Commodity contracts $ 49 $ 23 $ (15 ) $ (46 ) $ — $ — Cost of sales Foreign exchange contracts (12 ) (13 ) 6 15 — — Sales Forward starting interest rate and treasury lock swap contracts — 2 (2 ) (1 ) — — Net interest expense Derivatives in fair value hedging relationships: Fixed-for-floating interest rate swaps — — — — 1 2 Net interest expense Non-derivatives in net investment hedging relationships: Net investment hedges (pre-tax) (49 ) (3 ) — — — — N/A Derivatives not designated as hedges: (1) Foreign Exchange Contracts — — — — (2 ) — Other (income) charges, net First Nine Months First Nine Months First Nine Months Hedging Relationships 2017 2016 2017 2016 2017 2016 Income Statement Classification Derivatives in cash flow hedging relationships: Commodity contracts $ 42 $ 132 $ (42 ) $ (131 ) $ — $ — Cost of sales Foreign exchange contracts (42 ) (38 ) 28 45 — — Sales Forward starting interest rate and treasury lock swap contracts 2 (25 ) (4 ) (5 ) — — Net interest expense Derivatives in fair value hedging relationships: Fixed-for-floating interest rate swaps — — — — 3 9 Net interest expense Non-derivatives in net investment hedging relationships: Net investment hedges (pre-tax) (158 ) — — — — — N/A Derivatives not designated as hedges: (1) Foreign Exchange Contracts — — — — 2 (14 ) Other (income) charges, net (1) The gains or losses on derivatives that are not designated as hedges are marked-to-market and represent foreign exchange derivatives denominated in multiple currencies and are transacted and settled in the same quarter. Pre-tax monetized positions and mark-to-market gains and losses from raw materials and energy, currency, and certain interest rate hedges that were included in AOCI included losses of $210 million at September 30, 2017 and losses of $57 million at December 31, 2016 . Losses in AOCI increased September 30, 2017 compared to December 31, 2016 primarily as a result of an increase in foreign currency exchange rates, particularly the euro, partially offset by an increase in commodity prices, particularly propane. If realized, approximately $5 million in pre-tax losses, as of September 30, 2017 , would be reclassified into earnings during the next 12 months. The Company had no material ineffectiveness from the hedging programs during third quarter and first nine months 2017 and 2016 .

RETIREMENT PLANS

RETIREMENT PLANS	9 Months Ended
	Sep. 30, 2017
Retirement Benefits [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 life insurance for eligible retirees hired prior to January 1, 2007. Eastman provides a subsidy for pre-Medicare health care and dental benefits to eligible retirees hired prior to January 1, 2007 that will end on December 31, 2021. Company funding is also provided for eligible Medicare retirees hired prior to January 1, 2007 with a health reimbursement arrangement. Costs recognized for these benefits are 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 2016 Annual Report on Form 10-K. Components of net periodic benefit (credit) cost were as follows: Third Quarter Pension Plans Other Postretirement Benefit Plans 2017 2016 2017 2016 (Dollars in millions) U.S. Non-U.S. U.S. Non-U.S. Service cost $ 10 $ 3 $ 9 $ 3 $ — $ 2 Interest cost 16 5 18 5 6 7 Expected return on assets (35 ) (8 ) (34 ) (7 ) (1 ) (1 ) Amortization of: Prior service credit, net (1 ) — (1 ) — (10 ) (11 ) Mark-to-market pension and other postretirement benefits loss — — — 30 — — Net periodic benefit (credit) cost $ (10 ) $ — $ (8 ) $ 31 $ (5 ) $ (3 ) First Nine Months Pension Plans Other Postretirement Benefit Plans 2017 2016 2017 2016 (Dollars in millions) U.S. Non-U.S. U.S. Non-U.S. Service cost $ 28 $ 10 $ 29 $ 9 $ 2 $ 5 Interest cost 49 14 55 17 18 21 Expected return on assets (105 ) (25 ) (102 ) (23 ) (4 ) (4 ) Amortization of: Prior service credit, net (3 ) — (3 ) — (30 ) (31 ) Mark-to-market pension and other postretirement benefits loss — — — 30 — — Net periodic benefit (credit) cost $ (31 ) $ (1 ) $ (21 ) $ 33 $ (14 ) $ (9 ) The Company contributed $50 million to its U.S. defined benefit pension plans in first nine months 2016. In third quarter 2016, the Company announced a change to a UK defined benefit pension plan, which triggered an interim remeasurement of the plan obligation resulting in a mark-to-market ("MTM") loss of $30 million . The MTM loss was primarily due to a lower discount rate at the third quarter 2016 remeasurement date compared to December 31, 2015. The lower discount rate was reflective of changes in global market conditions and interest rates on high-grade corporate bonds.

COMMITMENTS

COMMITMENTS	9 Months Ended
	Sep. 30, 2017
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS	COMMITMENTS AND OFF BALANCE SHEET ARRANGEMENTS Purchase Obligations and Lease Commitments The Company had various purchase obligations at September 30, 2017 , totaling approximately $2.9 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 $287 million over a period of approximately 40 years . Of the total lease commitments, approximately 45 percent relate to real property, including office space, storage facilities, and land; approximately 40 percent relate to railcars; and approximately 15 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 $71 million at September 30, 2017 and consist primarily of leases for railcars that will expire beginning in third quarter 2018. Residual guarantee payments that become probable and estimable are recognized as 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 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. Other Off Balance Sheet Arrangements The Company has rights and obligations under non-recourse factoring facilities that have a combined limit of €150 million ( $177 million ) as of September 30, 2017 . These facilities are committed until December 2017 and will automatically renew for a period of one year unless terminated during the notice period. These arrangements include receivables in the United States, Belgium, and Finland, and are subject to various eligibility requirements. The Company sells the receivables at face value but receives funding (approximately 85 percent ) net of a deposit amount until collections are received from customers for the receivables sold. The total amounts of cumulative receivables sold in third quarter and first nine months 2017 , were approximately $225 million and $725 million , respectively. The total amounts of cumulative receivables sold in third quarter and first nine months 2016 , were approximately $220 million and $680 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 $116 million and $99 million at September 30, 2017 and December 31, 2016 , 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.

ENVIRONMENTAL MATTERS AND ASSET

ENVIRONMENTAL MATTERS AND ASSET RETIREMENT OBLIGATIONS	9 Months Ended
	Sep. 30, 2017
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 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 2016 Annual Report on Form 10-K. 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, results of operations, or cash flows. The Company's total reserve for environmental contingencies was $315 million and $321 million at September 30, 2017 and December 31, 2016 , respectively. At both September 30, 2017 and December 31, 2016 , 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 recognized 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) September 30, 2017 December 31, 2016 Environmental contingent liabilities, current $ 30 $ 30 Environmental contingent liabilities, long-term 285 291 Total $ 315 $ 321 Remediation Estimated future environmental expenditures for undiscounted remediation costs ranged from the best estimate or minimum of $289 million to the maximum of $495 million at September 30, 2017 and from the best estimate or minimum of $295 million to the maximum of $503 million at December 31, 2016 . The estimated future costs are considered to be reasonably possible and include the amounts recognized at both September 30, 2017 and December 31, 2016 . Reserves for environmental remediation include liabilities expected to be paid within approximately 30 years . The amounts charged to pre-tax earnings for environmental remediation and related charges are included within "Cost of sales" in the Unaudited Consolidated Statements of Earnings, Comprehensive Income and Retained Earnings. Changes in the reserves for environmental remediation liabilities during first nine months 2017 are summarized below: (Dollars in millions) Environmental Remediation Liabilities Balance at December 31, 2016 $ 295 Changes in estimates recognized in earnings and other 6 Cash reductions (12 ) Balance at September 30, 2017 $ 289 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 recognized to date over the sites' estimated useful lives for these environmental asset retirement obligation costs was $26 million at both September 30, 2017 and December 31, 2016 . Other The Company has contractual asset retirement obligations not associated with environmental liabilities. Eastman's non-environmental asset retirement obligations are primarily associated with the future closure of leased manufacturing assets at Pace, Florida and Oulu, Finland. These recognized non-environmental asset retirement obligations were $48 million and $46 million at September 30, 2017 and December 31, 2016 , respectively.

LEGAL MATTERS

LEGAL MATTERS	9 Months Ended
	Sep. 30, 2017
Loss Contingency, Information about Litigation Matters [Abstract]
LEGAL MATTERS	LEGAL MATTERS From time to time, the Company and its operations are parties to, or targets of, lawsuits, claims, investigations and proceedings, including product liability, personal injury, asbestos, patent and intellectual property, commercial, contract, environmental, antitrust, health and safety, and employment matters, which are being handled and defended in the ordinary course of business. While the Company is unable to predict the outcome of these matters, it does not believe, based upon currently available facts, that the ultimate resolution of any such pending matters will have a material adverse effect on its overall financial condition, results of operations, or cash flows.

STOCKHOLDERS' EQUITY

STOCKHOLDERS' EQUITY	9 Months Ended
	Sep. 30, 2017
Stockholders' Equity Note [Abstract]
STOCKHOLDERS' EQUITY	STOCKHOLDERS' EQUITY A reconciliation of the changes in stockholders' equity for first nine months 2017 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, 2016 $ 2 $ 1,915 $ 5,721 $ (281 ) $ (2,825 ) $ 4,532 $ 76 $ 4,608 Net Earnings — — 893 — — 893 4 897 Cash Dividends Declared (1) ($1.53 per share) — — (223 ) — — (223 ) — (223 ) Other Comprehensive Income — — — 43 — 43 — 43 Share-Based Compensation Expense (2) — 40 — — — 40 — 40 Stock Option Exercises — 19 — — — 19 — 19 Other — (6 ) — — — (6 ) — (6 ) Share Repurchases — — — — (275 ) (275 ) — (275 ) Distributions to Noncontrolling Interest — — — — — — (4 ) (4 ) Balance at September 30, 2017 $ 2 $ 1,968 $ 6,391 $ (238 ) $ (3,100 ) $ 5,023 $ 76 $ 5,099 (1) Cash dividends declared includes cash dividends paid and dividends declared, but unpaid. (2) Share-based compensation expense is the fair value of share-based awards. 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, 2015 $ (284 ) $ 129 $ (234 ) $ (1 ) $ (390 ) Period change (97 ) 34 172 — 109 Balance at December 31, 2016 (381 ) 163 (62 ) (1 ) (281 ) Period change 60 (20 ) 3 — 43 Balance at September 30, 2017 $ (321 ) $ 143 $ (59 ) $ (1 ) $ (238 ) Amounts of other comprehensive income (loss) are presented net of applicable taxes. The Company recognizes deferred income taxes on the cumulative translation adjustment related to branch operations and income from other entities included in the Company's consolidated U.S. tax return. No deferred income taxes are provided on the cumulative translation adjustment of other subsidiaries outside the United States, as such cumulative translation adjustment is considered to be a component of indefinitely invested, unremitted earnings of these foreign subsidiaries. Components of other comprehensive income recognized in the Unaudited Consolidated Statements of Earnings, Comprehensive Income and Retained Earnings are presented below, before tax and net of tax effects: Third Quarter 2017 2016 (Dollars in millions) Before Tax Net of Tax Before Tax Net of Tax Other comprehensive income (loss) Change in cumulative translation adjustment $ 17 $ 17 $ (42 ) $ (42 ) Defined benefit pension and other postretirement benefit plans: Amortization of unrecognized prior service credits included in net periodic costs (11 ) (7 ) (12 ) (7 ) Derivatives and hedging: Unrealized gain (loss) during period 49 31 (11 ) (7 ) Reclassification adjustment for losses included in net income, net 10 7 30 19 Total other comprehensive income (loss) $ 65 $ 48 $ (35 ) $ (37 ) First Nine Months 2017 2016 (Dollars in millions) Before Tax Net of Tax Before Tax Net of Tax Other comprehensive income (loss) Change in cumulative translation adjustment $ 60 $ 60 $ (6 ) $ (6 ) Defined benefit pension and other postretirement benefit plans: Amortization of unrecognized prior service credits included in net periodic costs (33 ) (20 ) (34 ) (21 ) Derivatives and hedging: Unrealized gain (loss) during period (13 ) (8 ) 21 13 Reclassification adjustment for losses included in net income, net 17 11 90 56 Total other comprehensive income (loss) $ 31 $ 43 $ 71 $ 42

EARNINGS AND DIVIDENDS PER SHAR

EARNINGS AND DIVIDENDS PER SHARE	9 Months Ended
	Sep. 30, 2017
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"): Third Quarter First Nine Months (In millions, except per share amounts) 2017 2016 2017 2016 Numerator Earnings attributable to Eastman, net of tax $ 323 $ 232 $ 893 $ 738 Denominator Weighted average shares used for basic EPS 144.3 147.2 145.2 147.6 Dilutive effect of stock options and other awards 1.2 1.0 1.3 1.0 Weighted average shares used for diluted EPS 145.5 148.2 146.5 148.6 (Calculated using whole dollars and shares) EPS Basic $ 2.24 $ 1.57 $ 6.15 $ 5.00 Diluted $ 2.22 $ 1.56 $ 6.10 $ 4.96 In third quarter and first nine months 2017 , options to purchase 727,111 and 781,011 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. Third quarter and first nine months 2017 reflect the impact of share repurchases of 1,184,107 and 3,360,783 , respectively. In third quarter and first nine months 2016 , options to purchase 1,437,767 and 1,076,143 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. Third quarter and first nine months 2016 reflect the impact of share repurchases of 1,128,869 and 1,760,940 , respectively. The Company declared cash dividends of $0.51 and $0.46 per share in third quarter 2017 and 2016 , respectively, and $1.53 and $1.38 per share in first nine months 2017 and 2016 , respectively.

ASSETS IMPAIRMENTS AND RESTRUCT

ASSETS IMPAIRMENTS AND RESTRUCTURING	9 Months Ended
	Sep. 30, 2017
Restructuring Costs and Asset Impairment Charges [Abstract]
ASSET IMPAIRMENTS AND RESTRUCTURING	ASSET IMPAIRMENTS AND RESTRUCTURING CHARGES, NET Third Quarter First Nine Months (Dollars in millions) 2017 2016 2017 2016 Severance $ — $ 30 $ — $ 30 Gain on sale of assets — — — (2 ) Total $ — $ 30 $ — $ 28 As part of the Company's previously announced plan to reduce costs primarily in 2017, the Company recognized restructuring charges of $30 million for severance in third quarter 2016. In first nine months 2016, there was a gain of $2 million in the Additives & Functional Products segment for the sale of previously impaired assets at the Crystex ® insoluble sulfur R&D site in France. Changes in Reserves The following table summarizes the changes in asset impairments and restructuring charges and gains, the non-cash reductions attributable to asset impairments, and the cash reductions in restructuring reserves for severance costs and site closure costs paid in first nine months 2017 and full year 2016 : (Dollars in millions) Balance at January 1, 2017 Provision/ Adjustments Non-cash Reductions/ Cash Reductions Balance at September 30, 2017 Severance costs $ 42 $ — $ 1 $ (26 ) $ 17 Site closure and restructuring costs 13 — 1 (5 ) 9 Total $ 55 $ — $ 2 $ (31 ) $ 26 (Dollars in millions) Balance at January 1, 2016 Provision/ Adjustments Non-cash Reductions/ Additions Cash Reductions Balance at December 31, 2016 Non-cash charges $ — $ 12 $ (12 ) $ — $ — Severance costs 55 32 — (45 ) 42 Site closure and restructuring costs 11 1 4 (3 ) 13 Total $ 66 $ 45 $ (8 ) $ (48 ) $ 55 Substantially all severance costs remaining are expected to be applied to the reserves within one year.

SHARE-BASED COMPENSATION AWARDS

SHARE-BASED COMPENSATION AWARDS	9 Months Ended
	Sep. 30, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
SHARE-BASED COMPENSATION AWARDS	SHARE-BASED COMPENSATION AWARDS The Company utilizes share-based awards under employee and non-employee director compensation programs. These share-based awards may include restricted and unrestricted stock, restricted stock units, stock options, and performance shares. In third quarter 2017 and 2016 , $13 million and $7 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 third quarter 2017 and 2016 net earnings of $8 million and $5 million , respectively, is net of deferred tax expense related to share-based award compensation for each period. In first nine months 2017 and 2016 , $40 million and $27 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 nine months 2017 and 2016 net earnings of $25 million and $17 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 2016 Annual Report on Form 10-K.

SUPPLEMENTAL CASH FLOW INFORMAT

SUPPLEMENTAL CASH FLOW INFORMATION	9 Months Ended
	Sep. 30, 2017
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 Statements of Financial Position: (Dollars in millions) First Nine Months 2017 2016 Other current assets $ 25 $ (25 ) Other noncurrent assets 7 27 Payables and other current liabilities 2 50 Long-term liabilities and equity (13 ) (33 ) Total $ 21 $ 19 The above changes resulted primarily from accrued taxes, deferred taxes, environmental liabilities, monetized positions from raw material and energy, currency, and certain interest rate hedges, prepaid insurance, miscellaneous deferrals, value-added taxes, and other miscellaneous accruals.

SEGMENT INFORMATION

SEGMENT INFORMATION	9 Months Ended
	Sep. 30, 2017
Segment Reporting [Abstract]
SEGMENT INFORMATION	SEGMENT INFORMATION The Company's products and operations are managed and reported in four operating segments: Additives & Functional Products ("AFP"), Advanced Materials ("AM"), Chemical Intermediates ("CI"), and Fibers. For additional financial and product information for each segment, see Part 1, Item 1, Business - Business Segments and Part II, Item 8, Note 20, "Segment Information" , in the Company's 2016 Annual Report on Form 10-K. Third Quarter First Nine Months (Dollars in millions) 2017 2016 2017 2016 Sales Additives & Functional Products $ 886 $ 752 $ 2,489 $ 2,259 Advanced Materials 646 638 1,937 1,873 Chemical Intermediates 696 638 2,069 1,891 Fibers 224 248 652 762 Total Sales by Segment 2,452 2,276 7,147 6,785 Other 13 11 40 35 Total Sales $ 2,465 $ 2,287 $ 7,187 $ 6,820 Third Quarter First Nine Months (Dollars in millions) 2017 2016 2017 2016 Operating Earnings (Loss) Additives & Functional Products $ 186 $ 160 $ 497 $ 481 Advanced Materials 141 141 399 381 Chemical Intermediates 81 39 246 121 Fibers 66 79 173 237 Total Operating Earnings by Segment 474 419 1,315 1,220 Other Growth initiatives and businesses not allocated to segments (32 ) (17 ) (92 ) (59 ) Pension and other postretirement benefits income, net not allocated to operating segments 18 (16 ) 54 9 Restructuring and acquisition integration and transaction costs — (30 ) — (39 ) Total Operating Earnings $ 460 $ 356 $ 1,277 $ 1,131 September 30, December 31, (Dollars in millions) 2017 2016 Assets by Segment (1) Additives & Functional Products $ 6,535 $ 6,255 Advanced Materials 4,437 4,247 Chemical Intermediates 3,039 2,927 Fibers 947 920 Total Assets by Segment 14,958 14,349 Corporate Assets 1,066 1,108 Total Assets $ 16,024 $ 15,457 (1) Segment assets include accounts receivable, inventory, fixed assets, goodwill, and intangible assets. Segment asset balances for shared fixed assets within the CI and Fibers segments as of December 31, 2016 have been reclassified to conform to current period allocation methodology.

RECENTLY ISSUED ACCOUNTING STAN

RECENTLY ISSUED ACCOUNTING STANDARDS	9 Months Ended
	Sep. 30, 2017
Recently Issued Accounting Standards [Abstract]
Recently Issued Accounting Standards [Text Block]	RECENTLY ISSUED ACCOUNTING STANDARDS In May 2014, the Financial Accounting Standards Board ("FASB") and International Accounting Standards Board jointly issued new principles-based accounting guidance for revenue recognition that provides a five-step process to the principles-based guidance. 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 regard 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 include clarification of the collectability criterion, specification for the measurement of noncash considerations, clarification of a completed contract for transition purposes and clarification in regards to the retrospective application, as well as, policy elections, and other practical expedients. In December 2016, the FASB issued additional corrections and improvements that affect various narrow aspects of the guidance. The effective date for all amendments is the same as that of the revenue standard stated above. Management does not expect that changes in its accounting required by this new guidance will materially impact the Company's financial statements and related disclosures. The company plans to adopt the standard under the modified-retrospective approach when effective on January 1, 2018. In February 2016, the FASB issued guidance on lease accounting. The new guidance establishes two types of leases for lessees: finance and operating. Both finance and operating leases will have associated right-of-use assets and liabilities initially measured at the present value of the lease payments. 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. Management is currently evaluating the impact on the Company's financial statements and related disclosures. In June 2016, the FASB issued guidance relating to credit losses. The amendments require a financial asset (including trade receivables) to be presented at the net amount expected to be collected through the use of allowances for credit losses valuation account. The income statement will reflect the measurement of credit losses for newly recognized financial assets, as well as the expected increases or decreases of expected credit losses that have taken place during the period. 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. Management is currently evaluating the impact on the Company's financial statements and related disclosures. In October 2016, the FASB issued guidance as a part of its simplification initiative in regards to income tax of intra-entity asset transfers. The release requires an entity to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. Consequently, the amendments eliminate the exception for an intra-entity transfer of an asset other than inventory that prohibited recognizing current and deferred income tax consequences for an intra-entity asset transfer until the asset or assets have been sold to an outside party. This guidance is effective for annual reporting periods beginning after December 15, 2017, including interim periods within those annual reporting periods and early adoption is permitted as of the beginning of an annual reporting period for which financial statements (interim or annual) have not been issued or made available for issuance. The new guidance is to be applied on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. Management is currently evaluating the impact on the Company's financial statements and related disclosures. In January 2017, the FASB issued guidance clarifying the definition of a business that provides a two-step analysis in the determination of whether an acquisition or derecognition is a business or an asset. The update removes the evaluation of whether a market participant could replace any missing elements and provides a framework to assist entities in evaluating whether both an input and a substantive process are present. This guidance is effective for annual reporting periods beginning after December 15, 2017, including interim periods within those annual reporting periods and early adoption is permitted for transactions that meet specified criteria. This guidance is to be applied on a prospective basis for transactions that occur after the effective date. In January 2017, the FASB issued guidance as a part of its simplification initiative that bases the impairment of goodwill on any difference for which the carrying value is greater than the fair value of the reporting unit. This guidance is effective for annual reporting periods, or interim period testing performed, beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment testing performed after January 1, 2017. This guidance is to be applied on a prospective basis for goodwill testing that occur after the effective date. In February 2017, the FASB issued guidance that clarifies the scope of nonfinancial asset derecognition and the accounting for partial sales of nonfinancial assets. This guidance is effective at the same time as the amendments in the revenue recognition standard stated above, for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017, and must be applied in conjunction with that standard. Adoption can be applied either on a retrospective or modified retrospective approach. Management is currently evaluating the impact on the Company's financial statements and related disclosures. In March 2017, the FASB issued guidance to improve the presentation of net periodic pension and postretirement benefit costs that will require the reporting of the service cost component in the same line item or items as other compensation costs arising from services rendered by the pertinent employees during the period. The other components of net benefit cost (interest cost, expected return on plan assets, curtailment gains or losses, amortization of prior service costs or credits, and mark-to-market gains or losses) are to be presented in the income statement separately from the service cost component and outside the subtotal of income from operations, if presented. In addition, the new requirement prescribes only the service cost component to be eligible for capitalization. This guidance is effective for annual reporting periods beginning after December 15, 2017, including interim periods within those annual reporting periods, and early adoption is permitted as of the beginning of an annual period for which financial statements (interim or annual) have not been issued or made available for issuance. The new guidance is to be applied retrospectively for income statement effect and prospectively for balance sheet effects. Management is currently evaluating the impact on the Company's financial statements and related disclosures. In May 2017, the FASB issued guidance to clarify when changes to the terms or conditions of a share-based payment award would require an entity to apply modification accounting. This guidance is effective for annual reporting periods, and interim periods within those annual periods, beginning after December 15, 2017. Early adoption is permitted, including adoption in any interim period, for reporting periods for which financial statements have not yet been issued. The new guidance is to be applied prospectively to an award modified on or after the adoption date. In August 2017, the FASB issued guidance to simplify the application of the current hedge accounting guidance and improve the financial reporting of hedging relationships to better portray the economic results of an entity's risk management activities in the financial statements. This guidance is effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption is permitted in any interim period after issuance of the guidance. Income statement impacts are to be adopted on a retrospective basis as of the beginning of the fiscal year of adoption. The amended presentation and disclosure guidance is required only prospectively. Management is currently evaluating the impact on the Company's financial statements and related disclosures.

SUBSEQUENT EVENT (Notes)

SUBSEQUENT EVENT (Notes)	9 Months Ended
	Sep. 30, 2017
Subsequent Event [Line Items]
Subsequent Events [Text Block]	SUBSEQUENT EVENT As previously reported, on October 4, 2017 an explosion in the Kingsport site's coal gasification area disrupted manufacturing operations, especially for the Fibers and CI segments which are significant internal users of cellulose and acetyl stream intermediates. There were no serious injuries and no impact to human health or the environment, and all manufacturing operations have resumed except for coal gasification. As repairs are being made, the Company is implementing alternate processes to maintain operations of downstream derivative facilities of coal gasification. The coal gasification area is expected to be operable by the end of fourth quarter 2017. While the Company continues to assess the financial impact of the incident, the net impact is expected to reduce operating earnings by between $50 and $100 million. Costs in fourth quarter 2017 related to the incident are expected to be approximately $100 million , partially offset by insurance recovery expected in the first half of 2018.

INVENTORIES (Tables)

INVENTORIES (Tables)	9 Months Ended
	Sep. 30, 2017
Inventory Disclosure [Abstract]
Schedule of inventories	September 30, December 31, (Dollars in millions) 2017 2016 Finished goods $ 1,120 $ 997 Work in process 216 198 Raw materials and supplies 501 473 Total inventories at FIFO or average cost 1,837 1,668 Less: LIFO reserve 261 264 Total inventories $ 1,576 $ 1,404

PAYABLES AND OTHER CURRENT LI25

PAYABLES AND OTHER CURRENT LIABILITIES (Tables)	9 Months Ended
	Sep. 30, 2017
Payables and Accruals [Abstract]
Schedule of payables and other current liabilities	September 30, December 31, (Dollars in millions) 2017 2016 Trade creditors $ 689 $ 704 Accrued payrolls, vacation, and variable-incentive compensation 183 196 Accrued taxes 106 106 Post-employment obligations 83 110 Other 341 396 Total payables and other current liabilities $ 1,402 $ 1,512

PROVISION FOR INCOME TAXES (Tab

PROVISION FOR INCOME TAXES (Tables)	9 Months Ended
	Sep. 30, 2017
Income Tax Disclosure [Abstract]
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]	Third Quarter First Nine Months (Dollars in millions) 2017 2016 2017 2016 $ % $ % $ % $ % Provision for income taxes and tax rate $ 79 20 % $ 56 20 % $ 206 19 % $ 195 21 %

BORROWINGS (Tables)

BORROWINGS (Tables)	9 Months Ended
	Sep. 30, 2017
Debt Disclosure [Abstract]
Long-term Borrowings	September 30, December 31, (Dollars in millions) 2017 2016 Borrowings consisted of: 5.5% notes due November 2019 $ 249 $ 249 2.7% notes due January 2020 797 796 4.5% notes due January 2021 184 184 3.6% notes due August 2022 739 741 1.50% notes due May 2023 (1) 881 786 7 1/4% debentures due January 2024 197 197 7 5/8% debentures due June 2024 43 43 3.8% notes due March 2025 691 689 1.875% notes due November 2026 (1) 583 519 7.60% debentures due February 2027 195 195 4.8% notes due September 2042 493 493 4.65% notes due October 2044 871 870 Credit facilities borrowings 399 549 Commercial paper borrowings 366 280 Capital leases and other 6 3 Total borrowings 6,694 6,594 Borrowings due within one year 369 283 Long-term borrowings $ 6,325 $ 6,311 (1) The carrying value of the euro-denominated 1.50% notes due May 2023 and 1.875% notes due November 2026 will fluctuate with changes in the euro exchange rate. The carrying value of these euro-denominated borrowings have been designated as non-derivative net investment hedges of a portion of the Company's net investments in euro functional-currency denominated subsidiaries to offset foreign currency fluctuations. During the nine months ended September 30, 2017 , pre-tax losses of $158 million were recognized in "Other comprehensive income (loss)" ("OCI") for revaluation of these notes.
Fair Value of Borrowings	Fair Value Measurements at September 30, 2017 (Dollars in millions) Reported Amount Total Fair Value Quoted Prices in Active Markets for Identical Liabilities (Level 1) Significant Other Observable Inputs (Level 2) Long-term borrowings $ 6,325 $ 6,735 $ 6,333 $ 402 Fair Value Measurements at December 31, 2016 (Dollars in millions) Reported Amount December 31, 2016 Total Fair Value Quoted Prices in Active Markets for Identical Liabilities (Level 1) Significant Other Observable Inputs (Level 2) Long-term borrowings $ 6,311 $ 6,586 $ 6,036 $ 550

DERIVATIVE AND NON-DERIVATIVE28

DERIVATIVE AND NON-DERIVATIVE FINANCIAL INSTRUMENTS (Tables)	9 Months Ended
	Sep. 30, 2017
Derivative Instruments, Gain (Loss) [Line Items]
Schedule of Notional Amounts of Outstanding Derivative Positions [Table Text Block]	The following table shows the notional amounts outstanding at September 30, 2017 and December 31, 2016 associated with the Company's hedging programs. Notional Outstanding September 30, 2017 December 31, 2016 Derivatives designated as cash flow hedges: Foreign Exchange Forward and Option Contracts (in millions) EUR/USD (in EUR) €396 €378 EUR/USD (in approximate USD equivalent) $468 $398 JPY/USD (in JPY) ¥450 ¥1,800 JPY/USD (in approximate USD equivalent) $4 $15 Commodity Forward and Collar Contracts Feedstock (in million barrels) 9 11 Energy (in million million british thermal units) 21 23 Derivatives designated as fair value hedges: Fixed-for-floating interest rate swaps (in millions) $75 $75 Non-derivatives designated as net investment hedges: Foreign Currency Net Investment Hedges (in millions) EUR/USD (in EUR) €1,240 €1,238
Derivative Instrument Gain Loss in Statement of Financial Performance	The tables below present the effect of hedging instruments on OCI and the financial performance for third quarter and first nine months 2017 and 2016 : (Dollars in millions) Change in amount of after tax gain/(loss) recognized in OCI on derivatives (effective portion) Pre-tax amount of gain/(loss) reclassified from AOCI into income (effective portion) Additional pre-tax gain/(loss) recognized in earnings (effective portion) Third Quarter Third Quarter Third Quarter Hedging Relationships 2017 2016 2017 2016 2017 2016 Income Statement Classification Derivatives in cash flow hedging relationships: Commodity contracts $ 49 $ 23 $ (15 ) $ (46 ) $ — $ — Cost of sales Foreign exchange contracts (12 ) (13 ) 6 15 — — Sales Forward starting interest rate and treasury lock swap contracts — 2 (2 ) (1 ) — — Net interest expense Derivatives in fair value hedging relationships: Fixed-for-floating interest rate swaps — — — — 1 2 Net interest expense Non-derivatives in net investment hedging relationships: Net investment hedges (pre-tax) (49 ) (3 ) — — — — N/A Derivatives not designated as hedges: (1) Foreign Exchange Contracts — — — — (2 ) — Other (income) charges, net First Nine Months First Nine Months First Nine Months Hedging Relationships 2017 2016 2017 2016 2017 2016 Income Statement Classification Derivatives in cash flow hedging relationships: Commodity contracts $ 42 $ 132 $ (42 ) $ (131 ) $ — $ — Cost of sales Foreign exchange contracts (42 ) (38 ) 28 45 — — Sales Forward starting interest rate and treasury lock swap contracts 2 (25 ) (4 ) (5 ) — — Net interest expense Derivatives in fair value hedging relationships: Fixed-for-floating interest rate swaps — — — — 3 9 Net interest expense Non-derivatives in net investment hedging relationships: Net investment hedges (pre-tax) (158 ) — — — — — N/A Derivatives not designated as hedges: (1) Foreign Exchange Contracts — — — — 2 (14 ) Other (income) charges, net (1) The gains or losses on derivatives that are not designated as hedges are marked-to-market and represent foreign exchange derivatives denominated in multiple currencies and are transacted and settled in the same quarter.
Financial assets and liabilities valued on a recurring basis	The following table shows the financial assets and liabilities valued on a gross basis as of September 30, 2017 and December 31, 2016 . Additionally, the table below indicates where the derivatives are reported on the Unaudited Consolidated Statements of Financial Position. During the periods presented, there were no transfers between fair value hierarchy levels. The Financial Position and Fair Value Measurements of Hedging Instruments on a Gross Basis (Dollars in millions) Derivative Type Statements of Financial Position Classification September 30, 2017 Level 2 December 31, 2016 Level 2 Derivatives designated as cash flow hedges: Commodity contracts Other current assets $ 9 $ 5 Commodity contracts Other noncurrent assets 1 2 Foreign exchange contracts Other current assets 27 49 Foreign exchange contracts Other noncurrent assets 8 47 Derivatives designated as fair value hedges: Fixed-for-floating interest rate swap Other current assets — 1 Total Derivative Assets $ 45 $ 104 Derivatives designated as cash flow hedges: Commodity contracts Payables and other current liabilities $ 38 $ 62 Commodity contracts Other long-term liabilities 28 69 Foreign exchange contracts Payables and other current liabilities 4 — Foreign exchange contracts Other long-term liabilities 2 — Derivatives designated as fair value hedges: Fixed-for-floating interest rate swap Long-term borrowings 3 4 Total Derivative Liabilities $ 75 $ 135 Total Net Derivative Liabilities $ 30 $ 31

RETIREMENT PLANS (Tables)

RETIREMENT PLANS (Tables)	9 Months Ended
	Sep. 30, 2017
Retirement Benefits [Abstract]
Components of net periodic benefit cost	Components of net periodic benefit (credit) cost were as follows: Third Quarter Pension Plans Other Postretirement Benefit Plans 2017 2016 2017 2016 (Dollars in millions) U.S. Non-U.S. U.S. Non-U.S. Service cost $ 10 $ 3 $ 9 $ 3 $ — $ 2 Interest cost 16 5 18 5 6 7 Expected return on assets (35 ) (8 ) (34 ) (7 ) (1 ) (1 ) Amortization of: Prior service credit, net (1 ) — (1 ) — (10 ) (11 ) Mark-to-market pension and other postretirement benefits loss — — — 30 — — Net periodic benefit (credit) cost $ (10 ) $ — $ (8 ) $ 31 $ (5 ) $ (3 ) First Nine Months Pension Plans Other Postretirement Benefit Plans 2017 2016 2017 2016 (Dollars in millions) U.S. Non-U.S. U.S. Non-U.S. Service cost $ 28 $ 10 $ 29 $ 9 $ 2 $ 5 Interest cost 49 14 55 17 18 21 Expected return on assets (105 ) (25 ) (102 ) (23 ) (4 ) (4 ) Amortization of: Prior service credit, net (3 ) — (3 ) — (30 ) (31 ) Mark-to-market pension and other postretirement benefits loss — — — 30 — — Net periodic benefit (credit) cost $ (31 ) $ (1 ) $ (21 ) $ 33 $ (14 ) $ (9 )

ENVIRONMENTAL MATTERS AND ASS30

ENVIRONMENTAL MATTERS AND ASSET RETIREMENT OBLIGATIONS (Tables)	9 Months Ended
	Sep. 30, 2017
Accrual for Environmental Loss Contingencies Disclosure [Abstract]
Schedule of environmental liabilities, current and non-current	(Dollars in millions) September 30, 2017 December 31, 2016 Environmental contingent liabilities, current $ 30 $ 30 Environmental contingent liabilities, long-term 285 291 Total $ 315 $ 321
Schedule of changes to environmental remediation liabilities	(Dollars in millions) Environmental Remediation Liabilities Balance at December 31, 2016 $ 295 Changes in estimates recognized in earnings and other 6 Cash reductions (12 ) Balance at September 30, 2017 $ 289

STOCKHOLDERS' EQUITY (Tables)

STOCKHOLDERS' EQUITY (Tables)	9 Months Ended
	Sep. 30, 2017
Stockholders' Equity Note [Abstract]
Reconciliation of the changes in stockholders' equity	A reconciliation of the changes in stockholders' equity for first nine months 2017 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, 2016 $ 2 $ 1,915 $ 5,721 $ (281 ) $ (2,825 ) $ 4,532 $ 76 $ 4,608 Net Earnings — — 893 — — 893 4 897 Cash Dividends Declared (1) ($1.53 per share) — — (223 ) — — (223 ) — (223 ) Other Comprehensive Income — — — 43 — 43 — 43 Share-Based Compensation Expense (2) — 40 — — — 40 — 40 Stock Option Exercises — 19 — — — 19 — 19 Other — (6 ) — — — (6 ) — (6 ) Share Repurchases — — — — (275 ) (275 ) — (275 ) Distributions to Noncontrolling Interest — — — — — — (4 ) (4 ) Balance at September 30, 2017 $ 2 $ 1,968 $ 6,391 $ (238 ) $ (3,100 ) $ 5,023 $ 76 $ 5,099 (1) Cash dividends declared includes cash dividends paid and dividends declared, but unpaid. (2) Share-based compensation expense is the fair value of share-based awards.
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, 2015 $ (284 ) $ 129 $ (234 ) $ (1 ) $ (390 ) Period change (97 ) 34 172 — 109 Balance at December 31, 2016 (381 ) 163 (62 ) (1 ) (281 ) Period change 60 (20 ) 3 — 43 Balance at September 30, 2017 $ (321 ) $ 143 $ (59 ) $ (1 ) $ (238 )
Schedule of components of comprehensive income (loss) before tax and net of tax effects	Components of other comprehensive income recognized in the Unaudited Consolidated Statements of Earnings, Comprehensive Income and Retained Earnings are presented below, before tax and net of tax effects: Third Quarter 2017 2016 (Dollars in millions) Before Tax Net of Tax Before Tax Net of Tax Other comprehensive income (loss) Change in cumulative translation adjustment $ 17 $ 17 $ (42 ) $ (42 ) Defined benefit pension and other postretirement benefit plans: Amortization of unrecognized prior service credits included in net periodic costs (11 ) (7 ) (12 ) (7 ) Derivatives and hedging: Unrealized gain (loss) during period 49 31 (11 ) (7 ) Reclassification adjustment for losses included in net income, net 10 7 30 19 Total other comprehensive income (loss) $ 65 $ 48 $ (35 ) $ (37 ) First Nine Months 2017 2016 (Dollars in millions) Before Tax Net of Tax Before Tax Net of Tax Other comprehensive income (loss) Change in cumulative translation adjustment $ 60 $ 60 $ (6 ) $ (6 ) Defined benefit pension and other postretirement benefit plans: Amortization of unrecognized prior service credits included in net periodic costs (33 ) (20 ) (34 ) (21 ) Derivatives and hedging: Unrealized gain (loss) during period (13 ) (8 ) 21 13 Reclassification adjustment for losses included in net income, net 17 11 90 56 Total other comprehensive income (loss) $ 31 $ 43 $ 71 $ 42

EARNINGS AND DIVIDENDS PER SH32

EARNINGS AND DIVIDENDS PER SHARE (Tables)	9 Months Ended
	Sep. 30, 2017
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"): Third Quarter First Nine Months (In millions, except per share amounts) 2017 2016 2017 2016 Numerator Earnings attributable to Eastman, net of tax $ 323 $ 232 $ 893 $ 738 Denominator Weighted average shares used for basic EPS 144.3 147.2 145.2 147.6 Dilutive effect of stock options and other awards 1.2 1.0 1.3 1.0 Weighted average shares used for diluted EPS 145.5 148.2 146.5 148.6 (Calculated using whole dollars and shares) EPS Basic $ 2.24 $ 1.57 $ 6.15 $ 5.00 Diluted $ 2.22 $ 1.56 $ 6.10 $ 4.96

ASSETS IMPAIRMENTS AND RESTRU33

ASSETS IMPAIRMENTS AND RESTRUCTURING (Tables)	9 Months Ended
	Sep. 30, 2017
Restructuring Costs and Asset Impairment Charges [Abstract]
Restructuring and Related Costs [Table Text Block]	Third Quarter First Nine Months (Dollars in millions) 2017 2016 2017 2016 Severance $ — $ 30 $ — $ 30 Gain on sale of assets — — — (2 ) Total $ — $ 30 $ — $ 28
Schedule of Restructuring Reserve by Type of Cost [Table Text Block]	The following table summarizes the changes in asset impairments and restructuring charges and gains, the non-cash reductions attributable to asset impairments, and the cash reductions in restructuring reserves for severance costs and site closure costs paid in first nine months 2017 and full year 2016 : (Dollars in millions) Balance at January 1, 2017 Provision/ Adjustments Non-cash Reductions/ Cash Reductions Balance at September 30, 2017 Severance costs $ 42 $ — $ 1 $ (26 ) $ 17 Site closure and restructuring costs 13 — 1 (5 ) 9 Total $ 55 $ — $ 2 $ (31 ) $ 26 (Dollars in millions) Balance at January 1, 2016 Provision/ Adjustments Non-cash Reductions/ Additions Cash Reductions Balance at December 31, 2016 Non-cash charges $ — $ 12 $ (12 ) $ — $ — Severance costs 55 32 — (45 ) 42 Site closure and restructuring costs 11 1 4 (3 ) 13 Total $ 66 $ 45 $ (8 ) $ (48 ) $ 55

SUPPLEMENTAL CASH FLOW INFORM34

SUPPLEMENTAL CASH FLOW INFORMATION (Tables)	9 Months Ended
	Sep. 30, 2017
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 Statements of Financial Position: (Dollars in millions) First Nine Months 2017 2016 Other current assets $ 25 $ (25 ) Other noncurrent assets 7 27 Payables and other current liabilities 2 50 Long-term liabilities and equity (13 ) (33 ) Total $ 21 $ 19

SEGMENT INFORMATION (Tables)

SEGMENT INFORMATION (Tables)	9 Months Ended
	Sep. 30, 2017
Segment Reporting [Abstract]
Segment Information Disclosure	Third Quarter First Nine Months (Dollars in millions) 2017 2016 2017 2016 Sales Additives & Functional Products $ 886 $ 752 $ 2,489 $ 2,259 Advanced Materials 646 638 1,937 1,873 Chemical Intermediates 696 638 2,069 1,891 Fibers 224 248 652 762 Total Sales by Segment 2,452 2,276 7,147 6,785 Other 13 11 40 35 Total Sales $ 2,465 $ 2,287 $ 7,187 $ 6,820 Third Quarter First Nine Months (Dollars in millions) 2017 2016 2017 2016 Operating Earnings (Loss) Additives & Functional Products $ 186 $ 160 $ 497 $ 481 Advanced Materials 141 141 399 381 Chemical Intermediates 81 39 246 121 Fibers 66 79 173 237 Total Operating Earnings by Segment 474 419 1,315 1,220 Other Growth initiatives and businesses not allocated to segments (32 ) (17 ) (92 ) (59 ) Pension and other postretirement benefits income, net not allocated to operating segments 18 (16 ) 54 9 Restructuring and acquisition integration and transaction costs — (30 ) — (39 ) Total Operating Earnings $ 460 $ 356 $ 1,277 $ 1,131 September 30, December 31, (Dollars in millions) 2017 2016 Assets by Segment (1) Additives & Functional Products $ 6,535 $ 6,255 Advanced Materials 4,437 4,247 Chemical Intermediates 3,039 2,927 Fibers 947 920 Total Assets by Segment 14,958 14,349 Corporate Assets 1,066 1,108 Total Assets $ 16,024 $ 15,457 (1) Segment assets include accounts receivable, inventory, fixed assets, goodwill, and intangible assets. Segment asset balances for shared fixed assets within the CI and Fibers segments as of December 31, 2016 have been reclassified to conform to current period allocation methodology.

INVENTORIES (Details)

INVENTORIES (Details) - USD ($) $ in Millions	Sep. 30, 2017	Dec. 31, 2016
At FIFO or average cost (approximates current cost) [Abstract]
Finished goods	$ 1,120	$ 997
Work in process	216	198
Raw materials and supplies	501	473
Total inventories	1,837	1,668
Less: LIFO Reserve	261	264
Total inventories	$ 1,576	$ 1,404
Inventories valued on the LIFO method	60.00%	60.00%

PAYABLES AND OTHER CURRENT LI37

PAYABLES AND OTHER CURRENT LIABILITIES (Details) - USD ($) $ in Millions	Sep. 30, 2017	Dec. 31, 2016
Payables and Accruals [Abstract]
Trade creditors	$ 689	$ 704
Accrued payrolls, vacation, and variable-incentive compensation	183	196
Accrued taxes	106	106
Post-employment obligations	83	110
Other	341	396
Total payables and other current liabilities	$ 1,402	$ 1,512

PROVISION FOR INCOME TAXES PROV

PROVISION FOR INCOME TAXES PROVISION FOR INCOME TAXES (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Income Tax Examination [Line Items]
Provision for income taxes	$ 79	$ 56	$ 206	$ 195
Effective Income Tax Rate Reconciliation, Percent	20.00%	20.00%	19.00%	21.00%
Discrete items impacting effective tax rate	$ 0
Finalization of prior years' income tax returns			$ 22	$ 9
Planned amendments to prior years' income tax returns			$ 22
Foreign tax credits		$ 16		16
Restoration of tax basis for which depreciation deductions were previously limited				$ 16

BORROWINGS Part 1 (Details) Sch

BORROWINGS Part 1 (Details) Schedule of Long-term Debt Instruments - USD ($) $ in Millions		3 Months Ended		9 Months Ended
		Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Debt Instrument [Line Items]
Change in cumulative translation adjustment, before tax		$ 17	$ (42)	$ 60	$ (6)
Total Borrowings		6,694		6,694		$ 6,594
Borrowings due within one year		369		369		283
Long-term borrowings		6,325		6,325		6,311
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
2.7% notes due January 2020 [Member]
Debt Instrument [Line Items]
Long-term Debt		$ 797		$ 797		796
Debt Instrument, Interest Rate, Stated Percentage		2.70%		2.70%
Debt Instrument, Maturity Date				Jan. 31, 2020
4.5% notes due January 2021 [Member]
Debt Instrument [Line Items]
Long-term Debt		$ 184		$ 184		184
Debt Instrument, Interest Rate, Stated Percentage		4.50%		4.50%
Debt Instrument, Maturity Date				Jan. 31, 2021
3.6% notes due August 2022 [Member]
Debt Instrument [Line Items]
Long-term Debt		$ 739		$ 739		741
Debt Instrument, Interest Rate, Stated Percentage		3.60%		3.60%
Debt Instrument, Maturity Date				Aug. 31, 2022
1.5% notes due May 2023 [Member]
Debt Instrument [Line Items]
Long-term Debt	[1]	$ 881		$ 881		786
Debt Instrument, Interest Rate, Stated Percentage		1.50%		1.50%
Debt Instrument, Maturity Date				May 31, 2023
7 1/4% debentures due January 2024 [Member]
Debt Instrument [Line Items]
Long-term Debt		$ 197		$ 197		197
Debt Instrument, Interest Rate, Stated Percentage		7.25%		7.25%
Debt Instrument, Maturity Date				Jan. 31, 2024
7 5/8% debentures due June 2024 [Member]
Debt Instrument [Line Items]
Long-term Debt		$ 43		$ 43		43
Debt Instrument, Interest Rate, Stated Percentage		7.625%		7.625%
Debt Instrument, Maturity Date				Jun. 30, 2024
3.8% notes due March 2025 [Member]
Debt Instrument [Line Items]
Long-term Debt		$ 691		$ 691		689
Debt Instrument, Interest Rate, Stated Percentage		3.80%		3.80%
Debt Instrument, Maturity Date				Mar. 31, 2025
1.875% notes due 2026 [Member]
Debt Instrument [Line Items]
Long-term Debt	[1]	$ 583		$ 583		519
Debt Instrument, Interest Rate, Stated Percentage		1.875%		1.875%
Debt Instrument, Maturity Date				Nov. 30, 2026
7.60% debentures due February 2027 [Member]
Debt Instrument [Line Items]
Long-term Debt		$ 195		$ 195		195
Debt Instrument, Interest Rate, Stated Percentage		7.60%		7.60%
Debt Instrument, Maturity Date				Feb. 28, 2027
4.8% notes due September 2042 [Member]
Debt Instrument [Line Items]
Long-term Debt		$ 493		$ 493		493
Debt Instrument, Interest Rate, Stated Percentage		4.80%		4.80%
Debt Instrument, Maturity Date				Sep. 30, 2042
4.65% notes due October 2044 [Member]
Debt Instrument [Line Items]
Long-term Debt		$ 871		$ 871		870
Debt Instrument, Interest Rate, Stated Percentage		4.65%		4.65%
Debt Instrument, Maturity Date				Oct. 31, 2044
Credit Facility
Debt Instrument [Line Items]
Long-term Debt		$ 399		$ 399		549
Commercial Paper [Member]
Debt Instrument [Line Items]
Commercial Paper		366		366		280
Capital Lease Obligations [Member]
Debt Instrument [Line Items]
Long-term Debt		6		6		$ 3
Foreign Exchange [Member] | Net Investment Hedging [Member]
Debt Instrument [Line Items]
Change in cumulative translation adjustment, before tax		$ (49)	$ (3)	$ (158)	$ 0
[1]	The carrying value of the euro-denominated 1.50% notes due May 2023 and 1.875% notes due November 2026 will fluctuate with changes in the euro exchange rate. The carrying value of these euro-denominated borrowings have been designated as non-derivative net investment hedges of a portion of the Company's net investments in euro functional-currency denominated subsidiaries to offset foreign currency fluctuations. During the nine months ended September 30, 2017, pre-tax losses of $158 million were recognized in "Other comprehensive income (loss)" ("OCI") for revaluation of these notes.

BORROWINGS Part 2 (Details) Cre

BORROWINGS Part 2 (Details) Credit Facility and Commercial Paper Borrowings - USD ($) $ in Millions	Dec. 05, 2014	Sep. 30, 2017	Sep. 30, 2017	Dec. 31, 2016
2019 Term Loan [Member]
Credit Facilities [Abstract]
Credit Facility, Borrowing Capacity	$ 1,000
Debt Instrument, Term	5 years
Line of Credit Facility, Maximum Month-end Outstanding Amount			$ 20	$ 250
Line of Credit Facility, Interest Rate During Period			2.49%	2.02%
Repayments of Lines of Credit		$ 230
2021 Term Loan [Member]
Credit Facilities [Abstract]
Credit Facility, Borrowing Capacity				$ 300
Debt Instrument, Term				5 years
Line of Credit Facility, Maximum Month-end Outstanding Amount			$ 279	$ 299
Line of Credit Facility, Interest Rate During Period			2.49%	1.95%
Repayments of Lines of Credit		20
Revolving Credit Facility [Member]
Credit Facilities [Abstract]
Credit Facility, Borrowing Capacity		1,250	$ 1,250
Line of Credit Facility, Maximum Month-end Outstanding Amount			$ 0	$ 0
Line of Credit Facility, Expiration Date			Oct. 31, 2021
A/R Facility [Member]
Credit Facilities [Abstract]
Credit Facility, Borrowing Capacity		250	$ 250
Line of Credit Facility, Maximum Month-end Outstanding Amount			$ 100	0
Line of Credit Facility, Interest Rate During Period			2.07%
Line of Credit Facility, Expiration Date			Apr. 30, 2019
Commercial Paper [Member]
Credit Facilities [Abstract]
Commercial Paper		$ 366	$ 366	$ 280
Debt, Weighted Average Interest Rate		1.44%	1.44%	1.12%

BORROWINGS Part 3 (Details) Fai

BORROWINGS Part 3 (Details) Fair Value - USD ($) $ in Millions	Sep. 30, 2017	Dec. 31, 2016
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Long-term borrowings	$ 6,325	$ 6,311
Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Long-term Borrowings, Fair Value	6,735	6,586
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	6,333	6,036
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	402	550
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-DERIVATIVE42

DERIVATIVE AND NON-DERIVATIVE FINANCIAL INSTRUMENTS Part 1 (Details) - Designated as Hedging Instrument [Member] € in Millions, ¥ in Millions, bbl in Millions, MMBTU in Millions, $ in Millions	9 Months Ended		12 Months Ended
	Sep. 30, 2017USD ($)	Sep. 30, 2017EUR (€)	Dec. 31, 2016USD ($)	Dec. 31, 2016EUR (€)	Sep. 30, 2017JPY (¥)bblMMBTU	Sep. 30, 2017USD ($)bblMMBTU	Sep. 30, 2017EUR (€)bblMMBTU	Dec. 31, 2016JPY (¥)bblMMBTU	Dec. 31, 2016USD ($)bblMMBTU	Dec. 31, 2016EUR (€)bblMMBTU	Nov. 21, 2016USD ($)	Nov. 21, 2016EUR (€)	May 26, 2016USD ($)	May 26, 2016EUR (€)
Foreign Exchange Contract [Member] | Euro Member Countries, Euro | Cash Flow Hedging [Member]
Derivative [Line Items]
Derivative, Notional Amount						$ 468	€ 396		$ 398	€ 378
Foreign Exchange Contract [Member] | Japan, Yen | Cash Flow Hedging [Member]
Derivative [Line Items]
Derivative, Notional Amount					¥ 450	$ 4		¥ 1,800	$ 15
Commodity Contract [Member] | Cash Flow Hedging [Member]
Derivative [Line Items]
Derivative, Nonmonetary Notional Amount | bbl					9	9	9	11	11	11
Energy Related Derivative [Member] | Cash Flow Hedging [Member]
Derivative [Line Items]
Derivative, Nonmonetary Notional Amount | MMBTU					21	21	21	23	23	23
Interest Rate Contract [Member] | Fair Value Hedging [Member]
Derivative [Line Items]
Derivative, Notional Amount | $						$ 75			$ 75
1.5% notes due May 2023 [Member] | Euro Member Countries, Euro | Net Investment Hedging [Member]
Derivative [Line Items]
Debt Instrument, Face Amount											$ 213	€ 200	$ 614	€ 550
1.875% notes due 2026 [Member] | Euro Member Countries, Euro | Net Investment Hedging [Member]
Derivative [Line Items]
Debt Instrument, Face Amount											$ 534	€ 500
1.50% Notes Due 2023 and 1.875% Notes Due 2026 [Member] | Euro Member Countries, Euro | Net Investment Hedging [Member]
Derivative [Line Items]
Notional Amount of Nonderivative Instruments	$ 1,500	€ 1,240	$ 1,300	€ 1,238

DERIVATIVE AND NON-DERIVATIVE43

DERIVATIVE AND NON-DERIVATIVE FINANCIAL INSTRUMENTS Part 2 (Details) € in Millions	9 Months Ended		12 Months Ended
	Sep. 30, 2017USD ($)	Sep. 30, 2017EUR (€)	Dec. 31, 2016USD ($)	Dec. 31, 2016EUR (€)
Derivative Liabilities [Abstract]
Fair Value Level Transfers	$ 0		$ 0
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	45,000,000		104,000,000
Derivative Liabilities [Abstract]
Derivative Liability, Fair Value, Gross Liability	75,000,000		135,000,000
Derivative, Fair Value, Net	30,000,000		31,000,000
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Commodity Contract [Member] | Designated as Hedging Instrument [Member] | Other Current Assets [Member]
Derivative Assets [Abstract]
Cash Flow Hedge Derivative Instrument Assets at Fair Value	9,000,000		5,000,000
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Commodity Contract [Member] | Designated as Hedging Instrument [Member] | Other Noncurrent Assets [Member]
Derivative Assets [Abstract]
Cash Flow Hedge Derivative Instrument Assets at Fair Value	1,000,000		2,000,000
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Commodity Contract [Member] | Designated as Hedging Instrument [Member] | Other Current Liabilities [Member]
Derivative Liabilities [Abstract]
Cash Flow Hedge Derivative Instrument Liabilities at Fair Value	38,000,000		62,000,000
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Commodity Contract [Member] | Designated as Hedging Instrument [Member] | Other Noncurrent Liabilities [Member]
Derivative Liabilities [Abstract]
Cash Flow Hedge Derivative Instrument Liabilities at Fair Value	28,000,000		69,000,000
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | 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	27,000,000		49,000,000
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | 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	8,000,000		47,000,000
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Foreign Exchange Contract [Member] | Designated as Hedging Instrument [Member] | Other Current Liabilities [Member]
Derivative Assets [Abstract]
Cash Flow Hedge Derivative Instrument Assets at Fair Value	4,000,000		0
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Foreign Exchange Contract [Member] | Designated as Hedging Instrument [Member] | Other Noncurrent Liabilities [Member]
Derivative Assets [Abstract]
Cash Flow Hedge Derivative Instrument Assets at Fair Value	2,000,000		0
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Interest Rate Contract [Member] | Designated as Hedging Instrument [Member] | Other Current Assets [Member]
Derivative Assets [Abstract]
Fair Value Hedge Assets	0		1,000,000
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Interest Rate Contract [Member] | Designated as Hedging Instrument [Member] | Long-term Debt [Member]
Derivative Liabilities [Abstract]
Fair Value Hedge Liabilities	3,000,000		4,000,000
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
Net Investment Hedging [Member] | Euro Member Countries, Euro | 1.50% Notes Due 2023 and 1.875% Notes Due 2026 [Member] | Designated as Hedging Instrument [Member]
Non-Derivatives, Carrying Value [Abstract]
Notional Amount of Nonderivative Instruments	$ 1,500,000,000	€ 1,240	$ 1,300,000,000	€ 1,238

DERIVATIVE AND NON-DERIVATIVE44

DERIVATIVE AND NON-DERIVATIVE FINANCIAL INSTRUMENTS Part 3 (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
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			$ 3		$ 172
Other Comprehensive Income (Loss), Non-derivatives Qualifying as Hedges, before Tax [Abstract]
Change in cumulative translation adjustment, before tax	$ 17	$ (42)	60	$ (6)
Summary of Derivative Instruments [Abstract]
Monetized positions and mark to market in accumulated other comprehensive income before tax	210		210		$ 57
Price Risk Cash Flow Hedge Unrealized Loss to be Reclassified During Next 12 Months	5		5
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	49	23	42	132
Other Comprehensive Income (Loss), Non-derivatives Qualifying as Hedges, before Tax [Abstract]
Loss on Cash Flow Hedge Ineffectiveness			0	0
Commodity Contract [Member] | Cash Flow Hedging [Member] | Cost of Sales [Member]
Pre-tax Amount of Gain (Loss) reclassified From Accumulated Other Comprehensive Income Into Income (Effective Portion) [Abstract]
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net	(15)	(46)	(42)	(131)
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	(12)	(13)	(42)	(38)
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	6	15	28	45
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	0	2	2	(25)
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)	(1)	(4)	(5)
Interest Rate Contract [Member] | Fair Value Hedging [Member] | Net Interest Expense
Derivative Instruments, Gain (Loss) [Line Items]
Gain (Loss) on Fair Value Hedges Recognized in Earnings	1	2	3	9
Foreign Exchange [Member] | Net Investment Hedging [Member]
Other Comprehensive Income (Loss), Non-derivatives Qualifying as Hedges, before Tax [Abstract]
Change in cumulative translation adjustment, before tax	(49)	(3)	(158)	0
Not Designated as Hedging Instrument [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net	$ (2)	$ 0	$ 2	$ (14)

RETIREMENT PLANS (Details)

RETIREMENT PLANS (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items]
Defined Benefit Plan, Plan Assets, Contributions by Employer				$ 50
Components of net periodic benefit cost [Abstract]
Defined Benefit Plan, Benefit Obligation, Actuarial Gain (Loss)			$ 0	30
Other Postretirement Benefits Plan [Member]
Components of net periodic benefit cost [Abstract]
Service cost	$ 0	$ 2	2	5
Interest cost	6	7	18	21
Expected return on assets	(1)	(1)	(4)	(4)
Prior service credit, net	(10)	(11)	(30)	(31)
Defined Benefit Plan, Benefit Obligation, Actuarial Gain (Loss)	0	0	0	0
Net periodic benefit (credit) cost	(5)	(3)	(14)	(9)
Foreign Plan [Member] | Pension Plan [Member]
Components of net periodic benefit cost [Abstract]
Service cost	3	3	10	9
Interest cost	5	5	14	17
Expected return on assets	(8)	(7)	(25)	(23)
Prior service credit, net	0	0	0	0
Defined Benefit Plan, Benefit Obligation, Actuarial Gain (Loss)	0	30	0	30
Net periodic benefit (credit) cost	0	31	(1)	33
Domestic Plan [Member] | Pension Plan [Member]
Components of net periodic benefit cost [Abstract]
Service cost	10	9	28	29
Interest cost	16	18	49	55
Expected return on assets	(35)	(34)	(105)	(102)
Prior service credit, net	(1)	(1)	(3)	(3)
Defined Benefit Plan, Benefit Obligation, Actuarial Gain (Loss)	0	0	0	0
Net periodic benefit (credit) cost	(10)	$ (8)	$ (31)	$ (21)
UK Defined Benefit Pension [Member] | Pension Plan [Member]
Components of net periodic benefit cost [Abstract]
Defined Benefit Plan, Benefit Obligation, Actuarial Gain (Loss)	$ 30

COMMITMENTS (Details)

COMMITMENTS (Details) € in Millions, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017USD ($)	Sep. 30, 2016USD ($)	Sep. 30, 2017USD ($)	Sep. 30, 2016USD ($)	Sep. 30, 2017EUR (€)	Dec. 31, 2016USD ($)
Other Commitments [Line Items]
Unrecorded Unconditional Purchase Obligation, Purchases			$ 2,900
Unrecorded Unconditional Purchase Obligation, Term			30 years
Leases, Operating [Abstract]
Operating Lease Commitments, Cancelable Noncancelable and Month-to-month	$ 287		$ 287
Lessee, Operating Lease, Term of Contract			40 years
Guarantees [Abstract]
Operating Lease Residual Value Guarantees	71		$ 71
Term, other guarantees			30 years
Maximum potential future payment, other guarantees	35		$ 35
Transfers and Servicing of Financial Assets [Abstract]
Transfers of Financial Assets Accounted for as Sale, Initial Fair Value of Assets Obtained as Proceeds	177		$ 177		€ 150
Percent of funding for sold receivables net of deposit			85.00%
Receivable Sold Under Factoring Arrangement	225	$ 220	$ 725	$ 680
Continuing Involvement with Derecognized Transferred Financial Assets, Amount Outstanding	$ 116		$ 116			$ 99
Servicing Assets and Servicing Liabilities at Fair Value, Assumptions Used to Estimate Fair Value, Expected Credit Losses			10.00%
Real Property [Member]
Leases, Operating [Abstract]
Percent of total lease commitments	45.00%		45.00%		45.00%
Railcars [Member]
Leases, Operating [Abstract]
Percent of total lease commitments	40.00%		40.00%		40.00%
Machinery and Equipment [Member]
Leases, Operating [Abstract]
Percent of total lease commitments	15.00%		15.00%		15.00%

ENVIRONMENTAL MATTERS AND ASS47

ENVIRONMENTAL MATTERS AND ASSET RETIREMENT OBLIGATIONS (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2017	Dec. 31, 2016
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	321
End of period	315
Accrual for Environmental Loss Contingencies, Balance Sheet Classification [Abstract]
Accrued Environmental Loss Contingencies, Current	30	30
Accrued Environmental Loss Contingencies, Noncurrent	285	291
Environmental Remediation [Member]
Accrual for Environmental Loss Contingencies [Roll Forward]
Beginning of period	295
Changes in estimates recognized in earnings and other	6
Cash reductions	(12)
End of period	$ 289
Expected Payment Period of Environmental Contingencies	approximately 30 years
Environmental Remediation [Member] | Minimum [Member]
Site Contingency [Line Items]
Loss Contingency, Estimate of Possible Loss	$ 289	295
Environmental Remediation [Member] | Maximum [Member]
Site Contingency [Line Items]
Loss Contingency, Estimate of Possible Loss	495	503
Environmental ARO [Member]
Site Contingency [Line Items]
Best Estimate Accrued to-date For Asset Retirement Obligation	26	26
Non Environmental ARO [Member]
Site Contingency [Line Items]
Best Estimate Accrued to-date For Asset Retirement Obligation	$ 48	$ 46

STOCKHOLDERS' EQUITY STOCKHOLDE

STOCKHOLDERS' EQUITY STOCKHOLDERS' EQUITY Part 1 (Details) - USD ($) $ / shares in Units, $ in Millions		3 Months Ended		9 Months Ended			12 Months Ended
		Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017		Sep. 30, 2016	Dec. 31, 2016
Stockholders' Equity Note [Abstract]
Dividends, Per Share		$ 0.51	$ 0.46	$ 1.53		$ 1.38
Stockholders' Equity Attributable to Parent		$ 5,023		$ 5,023			$ 4,532
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest		5,099		5,099			4,608
Net earnings attributable to Eastman		323	$ 232	893		$ 738
Net earnings attributable to noncontrolling interest		1	1	4		3
Net earnings including noncontrolling interest		324	233	897		741
Cash dividends declared		(74)	(69)	(223)	[1]	(204)
Other Comprehensive Income		48	$ (37)	43		$ 42	109
Share-based Compensation Expense	[2]			40
Stock Option Exercises				19
Other				(6)
Share Repurchases				(275)
Distributions to Noncontrolling Interest				(4)
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				0
Share Repurchases				0
Distributions to Noncontrolling Interest				0
Additional Paid-in Capital [Member]
Stockholders' Equity Attributable to Parent		1,968		1,968			1,915
Net earnings attributable to Eastman				0
Cash dividends declared	[1]			0
Other Comprehensive Income				0
Share-based Compensation Expense	[2]			40
Stock Option Exercises				19
Other				(6)
Share Repurchases				0
Distributions to Noncontrolling Interest				0
Retained Earnings [Member]
Stockholders' Equity Attributable to Parent		6,391		6,391			5,721
Net earnings attributable to Eastman				893
Cash dividends declared	[1]			(223)
Other Comprehensive Income				0
Share-based Compensation Expense	[2]			0
Stock Option Exercises				0
Other				0
Share Repurchases				0
Distributions to Noncontrolling Interest				0
Accumulated Other Comprehensive Income (Loss) [Member]
Stockholders' Equity Attributable to Parent		(238)		(238)			(281)
Net earnings attributable to Eastman				0
Cash dividends declared	[1]			0
Other Comprehensive Income				43
Share-based Compensation Expense	[2]			0
Stock Option Exercises				0
Other				0
Share Repurchases				0
Distributions to Noncontrolling Interest				0
Treasury Stock [Member]
Stockholders' Equity Attributable to Parent		(3,100)		(3,100)			(2,825)
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				0
Share Repurchases				(275)
Distributions to Noncontrolling Interest				0
Parent [Member]
Stockholders' Equity Attributable to Parent		5,023		5,023			4,532
Net earnings attributable to Eastman				893
Cash dividends declared	[1]			(223)
Other Comprehensive Income				43
Share-based Compensation Expense	[2]			40
Stock Option Exercises				19
Other				(6)
Share Repurchases				(275)
Distributions to Noncontrolling Interest				0
Noncontrolling Interest [Member]
Stockholders' Equity Attributable to Parent		$ 76		76			$ 76
Net earnings attributable to noncontrolling interest				4
Cash dividends declared	[1]			0
Other Comprehensive Income				0
Share-based Compensation Expense	[2]			0
Stock Option Exercises				0
Other				0
Share Repurchases				0
Distributions to Noncontrolling Interest				$ (4)
[1]	Cash dividends declared includes cash dividends paid and dividends declared, but unpaid.
[2]	Share-based compensation expense is the fair value of share-based awards.

STOCKHOLDERS' EQUITY STOCKHOL49

STOCKHOLDERS' EQUITY STOCKHOLDERS' EQUITY Part 2 AOCI (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016	Dec. 31, 2015
Accumulated Other Comprehensive Income (Loss) [Line Items]
Cumulative Translation Adjustment	$ (321)		$ (321)		$ (381)	$ (284)
Change in cumulative translation adjustment	17	$ (42)	60	$ (6)	(97)
Benefit Plans Unrecognized Prior Service Credits	143		143		163	129
Change in Benefit Plans Unrecognized Prior Service Credits			(20)		34
Unrealized Gains (Losses) on Derivative Instruments	(59)		(59)		(62)	(234)
Change in Unrealized Gains (Losses) on Derivative Instruments			3		172
Unrealized Losses on Investments	(1)		(1)		(1)	(1)
Change in Unrealized Losses on Investments			0		0
Accumulated Other Comprehensive Income (Loss), Net of Tax	(238)		(238)		(281)	$ (390)
Total other comprehensive income (loss), net of tax	$ 48	$ (37)	$ 43	$ 42	$ 109

STOCKHOLDERS' EQUITY STOCKHOL50

STOCKHOLDERS' EQUITY STOCKHOLDERS' EQUITY Part 3 OCI (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Other Comprehensive Income (Loss), before Tax [Abstract]
Change in cumulative translation adjustment, before tax	$ 17	$ (42)	$ 60	$ (6)
Amortization of unrecognized prior service credits included in net periodic costs, before tax	(11)	(12)	(33)	(34)
Unrealized gain (loss), before tax	49	(11)	(13)	21
Reclassification adjustment for (gain) loss included in net income, before tax	10	30	17	90
Total other comprehensive income (loss), before tax	65	(35)	31	71
Change in cumulative translation adjustment	17	(42)	60	(6)	$ (97)
Amortization of unrecognized prior service credits included in net periodic costs	(7)	(7)	(20)	(21)
Unrealized gain (loss)	31	(7)	(8)	13
Reclassification adjustment for losses included in net income, net	7	19	11	56
Total other comprehensive income (loss), net of tax	$ 48	$ (37)	$ 43	$ 42	$ 109

EARNINGS AND DIVIDENDS PER SH51

EARNINGS AND DIVIDENDS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Earnings Per Share [Abstract]
Earnings attributable to Eastman, net of tax	$ 323	$ 232	$ 893	$ 738
Weighted average shares used for basic EPS (in shares)	144,300,000	147,200,000	145,200,000	147,600,000
Dilutive effect of stock options and other awards	1,200,000	1,000,000	1,300,000	1,000,000
Weighted average shares used for diluted EPS (in shares)	145,500,000	148,200,000	146,500,000	148,600,000
Earnings per share, basic	$ 2.24	$ 1.57	$ 6.15	$ 5
Earnings per share, diluted	$ 2.22	$ 1.56	$ 6.10	$ 4.96
Underlying options excluded from the computation of diluted earnings per share (in shares)	727,111	1,437,767	781,011	1,076,143
Shares repurchased (in shares)	1,184,107	1,128,869	3,360,783	1,760,940
Cash dividends declared (per share)	$ 0.51	$ 0.46	$ 1.53	$ 1.38

ASSETS IMPAIRMENTS AND RESTRU52

ASSETS IMPAIRMENTS AND RESTRUCTURING (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Restructuring Cost and Reserve [Line Items]
Severance	$ 0	$ 30	$ 0	$ 30
Gain on sale of assets	0	0	0	(2)
Total	0	$ 30	0	28
Restructuring Charge [Roll Forward]
Balance at Beginning of Period			55	66	$ 66
Provision / Adjustments			0		45
Restructuring Reserve, Accrual Adjustment			2
Non-cash Reductions					(8)
Cash Reductions			(31)		(48)
Balance at End of Period	26		26		55
Facility Closing [Member]
Restructuring Charge [Roll Forward]
Balance at Beginning of Period			13	11	11
Provision / Adjustments			0		1
Restructuring Reserve, Accrual Adjustment			1		4
Cash Reductions			(5)		(3)
Balance at End of Period	9		9		13
Employee Severance [Member]
Restructuring Charge [Roll Forward]
Balance at Beginning of Period			42	55	55
Provision / Adjustments			0		32
Restructuring Reserve, Accrual Adjustment			1		0
Cash Reductions			(26)		(45)
Balance at End of Period	$ 17		17		42
Non-Cash Charges [Member]
Restructuring Charge [Roll Forward]
Balance at Beginning of Period			$ 0	0	0
Provision / Adjustments					12
Non-cash Reductions					(12)
Cash Reductions					0
Balance at End of Period					$ 0
Crystex R&D facility in France [Member] | Additives And Functional Products [Member]
Restructuring Charge [Roll Forward]
Gain on sale of assets				$ 2

SHARE-BASED COMPENSATION AWAR53

SHARE-BASED COMPENSATION AWARDS (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense before tax	$ 13	$ 7	$ 40	$ 27
Share-based compensation net of deferred tax expense	$ 8	$ 5	$ 25	$ 17

SUPPLEMENTAL CASH FLOW INFORM54

SUPPLEMENTAL CASH FLOW INFORMATION (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Supplemental Cash Flow Information [Abstract]
Other current assets	$ 25	$ (25)
Other noncurrent assets	7	27
Payables and other current liabilities	2	50
Long-term liabilities and equity	(13)	(33)
Total	$ 21	$ 19

SEGMENT INFORMATION (Details)

SEGMENT INFORMATION (Details) $ in Millions		3 Months Ended		9 Months Ended
		Sep. 30, 2017USD ($)	Sep. 30, 2016USD ($)	Sep. 30, 2017USD ($)Segment	Sep. 30, 2016USD ($)	Dec. 31, 2016USD ($)
Segment Reporting Information [Line Items]
Number of Operating Segments | Segment				4
Sales [Abstract]
Sales		$ 2,465	$ 2,287	$ 7,187	$ 6,820
Operating Earnings (loss) [Abstract]
Operating Income (Loss)		460	356	1,277	1,131
Segment Reporting Information, Additional Information [Abstract]
Assets by Segment	[1]	16,024		16,024		$ 15,457
Operating Segments [Member]
Sales [Abstract]
Sales		2,452	2,276	7,147	6,785
Operating Earnings (loss) [Abstract]
Operating Income (Loss)		474	419	1,315	1,220
Segment Reporting Information, Additional Information [Abstract]
Assets by Segment	[1]	14,958		14,958		14,349
Corporate, Non-Segment [Member]
Sales [Abstract]
Sales		13	11	40	35
Segment Reporting Information, Additional Information [Abstract]
Assets by Segment	[1]	1,066		1,066		1,108
Growth Initiatives and Businesses not Allocated to Segments [Member] | Corporate, Non-Segment [Member]
Operating Earnings (loss) [Abstract]
Operating Income (Loss)		(32)	(17)	(92)	(59)
Pension and OPEB Costs Not Allocated to Operating Segments [Member] | Corporate, Non-Segment [Member]
Operating Earnings (loss) [Abstract]
Operating Income (Loss)		18	(16)	54	9
Restructuring and acquisition integration and transaction costs [Member] | Corporate, Non-Segment [Member]
Operating Earnings (loss) [Abstract]
Operating Income (Loss)		0	(30)	0	(39)
Additives And Functional Products [Member] | Operating Segments [Member]
Sales [Abstract]
Sales		886	752	2,489	2,259
Operating Earnings (loss) [Abstract]
Operating Income (Loss)		186	160	497	481
Segment Reporting Information, Additional Information [Abstract]
Assets by Segment	[1]	6,535		6,535		6,255
Advanced Materials [Member] | Operating Segments [Member]
Sales [Abstract]
Sales		646	638	1,937	1,873
Operating Earnings (loss) [Abstract]
Operating Income (Loss)		141	141	399	381
Segment Reporting Information, Additional Information [Abstract]
Assets by Segment	[1]	4,437		4,437		4,247
Chemical Intermediates [Member] | Operating Segments [Member]
Sales [Abstract]
Sales		696	638	2,069	1,891
Operating Earnings (loss) [Abstract]
Operating Income (Loss)		81	39	246	121
Segment Reporting Information, Additional Information [Abstract]
Assets by Segment	[1]	3,039		3,039		2,927
Fibers [Member] | Operating Segments [Member]
Sales [Abstract]
Sales		224	248	652	762
Operating Earnings (loss) [Abstract]
Operating Income (Loss)		66	$ 79	173	$ 237
Segment Reporting Information, Additional Information [Abstract]
Assets by Segment	[1]	$ 947		$ 947		$ 920
[1]	Segment assets include accounts receivable, inventory, fixed assets, goodwill, and intangible assets. Segment asset balances for shared fixed assets within the CI and Fibers segments as of December 31, 2016 have been reclassified to conform to current period allocation methodology.

SUBSEQUENT EVENT (Details)

SUBSEQUENT EVENT (Details) - Subsequent Event [Member] - USD ($) $ in Millions	Oct. 04, 2017	Dec. 31, 2017
Subsequent Event [Line Items]
Subsequent Event, Date	Oct. 4, 2017
Effect on Future Earnings, Amount		$ 100
Minimum [Member]
Subsequent Event [Line Items]
Effect on Future Earnings, Amount	$ 50
Maximum [Member]
Subsequent Event [Line Items]
Effect on Future Earnings, Amount	$ 100