Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2022 USD ($) shares | |
Entity Information [Line Items] | |
Document Type | 10-K |
Document Annual Report | true |
Document Period End Date | Dec. 31, 2022 |
Document Transition Report | false |
Entity File Number | 1-12626 |
Entity Registrant Name | EASTMAN CHEMICAL CO |
Entity Incorporation, State or Country Code | DE |
Entity Tax Identification Number | 62-1539359 |
Entity Address, Address Line One | 200 South Wilcox Drive |
Entity Address, City or Town | Kingsport |
Entity Address, State or Province | TN |
Entity Address, Postal Zip Code | 37662 |
City Area Code | 423 |
Local Phone Number | 229-2000 |
Entity Well-known Seasoned Issuer | Yes |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Small Business | false |
Entity Emerging Growth Company | false |
ICFR Auditor Attestation Flag | true |
Entity Shell Company | false |
Entity Public Float | $ | $ 10,606,797,152 |
Entity Common Stock, Shares Outstanding (in shares) | shares | 118,796,867 |
Documents Incorporated by Reference | Portions of the registrant's definitive Proxy Statement for the 2023 Annual Meeting of Stockholders, to be filed with the Securities and Exchange Commission, are incorporated by reference in Part III, Items 10 to 14 of this Annual Report on Form 10-K (this "Annual Report") as indicated herein. |
Entity Central Index Key | 0000915389 |
Amendment Flag | false |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Year Focus | 2022 |
Document Fiscal Period Focus | FY |
Auditor Firm ID | 238 |
Auditor Name | PricewaterhouseCoopers LLP |
Auditor Location | Charlotte, North Carolina |
Common Stock [Member] | |
Entity Information [Line Items] | |
Title of 12(b) Security | Common Stock, par value $0.01 per share |
Trading Symbol | EMN |
Security Exchange Name | NYSE |
1.50% notes due May 2023 [Member] | |
Entity Information [Line Items] | |
Title of 12(b) Security | 1.50% Notes Due 2023 |
Trading Symbol | EMN23 |
Security Exchange Name | NYSE |
1.875% notes due November 2026 [Member] | |
Entity Information [Line Items] | |
Title of 12(b) Security | 1.875% Notes Due 2026 |
Trading Symbol | EMN26 |
Security Exchange Name | NYSE |
CONSOLIDATED STATEMENTS OF EARN
CONSOLIDATED STATEMENTS OF EARNINGS, COMPREHENSIVE INCOME AND RETAINED EARNINGS - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Statement [Abstract] | |||
Sales | $ 10,580 | $ 10,476 | $ 8,473 |
Cost of sales | 8,443 | 7,976 | 6,498 |
Gross profit | 2,137 | 2,500 | 1,975 |
Selling, general and administrative expenses | 726 | 795 | 654 |
Research and development expenses | 264 | 254 | 226 |
Asset impairments and restructuring charges, net | 52 | 47 | 227 |
Other components of post-employment (benefit) cost, net | (101) | (412) | 119 |
Other (income) charges, net | (6) | (17) | 8 |
Loss on divested businesses | 43 | 552 | 0 |
Earnings before interest and taxes | 1,159 | 1,281 | 741 |
Net interest expense | 182 | 198 | 210 |
Early debt extinguishment costs | 0 | 1 | 1 |
Earnings before income taxes | 977 | 1,082 | 530 |
Provision for income taxes | 181 | 215 | 41 |
Net earnings | 796 | 867 | 489 |
Less: Net earnings attributable to noncontrolling interest | 3 | 10 | 11 |
Net earnings attributable to Eastman | $ 793 | $ 857 | $ 478 |
Basic earnings per share attributable to Eastman | |||
Basic earnings per share attributable to Eastman | $ 6.42 | $ 6.35 | $ 3.53 |
Diluted earnings per share attributable to Eastman | |||
Diluted earnings per share attributable to Eastman | $ 6.35 | $ 6.25 | $ 3.50 |
Comprehensive Income | |||
Net earnings including noncontrolling interest | $ 796 | $ 867 | $ 489 |
Other comprehensive income (loss), net of tax: | |||
Change in cumulative translation adjustment | 7 | 56 | (29) |
Defined benefit pension and other postretirement benefit plans [Abstract] | |||
Prior service credit arising during the period | 0 | 0 | 9 |
Amortization of unrecognized prior service credits included in net periodic costs | (27) | (28) | (28) |
Derivatives and hedging [Abstract] | |||
Unrealized gain (loss) during period | 53 | 66 | (34) |
Reclassification adjustment for (gains) losses included in net income, net | (56) | (3) | 23 |
Total other comprehensive income (loss), net of tax | (23) | 91 | (59) |
Comprehensive income including noncontrolling interest | 773 | 958 | 430 |
Less: Net earnings attributable to noncontrolling interest | 3 | 10 | 11 |
Comprehensive income attributable to Eastman | 770 | 948 | 419 |
Retained Earnings | |||
Retained earnings at beginning of period | 8,557 | 8,080 | 7,965 |
Net earnings attributable to Eastman | 793 | 857 | 478 |
Cash dividends declared | (377) | (380) | (363) |
Retained earnings at end of period | $ 8,973 | $ 8,557 | $ 8,080 |
CONSOLIDATED STATEMENTS OF FINA
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Current assets | ||
Cash and cash equivalents | $ 493 | $ 459 |
Trade receivables, net of allowance for credit losses | 957 | 1,091 |
Miscellaneous receivables | 320 | 489 |
Inventories | 1,894 | 1,504 |
Other current assets | 114 | 96 |
Assets held for sale | 0 | 1,007 |
Total current assets | 3,778 | 4,646 |
Properties | ||
Properties and equipment at cost | 12,942 | 12,680 |
Less: Accumulated depreciation | 7,782 | 7,684 |
Net properties | 5,160 | 4,996 |
Goodwill | 3,664 | 3,641 |
Intangible assets, net of accumulated amortization | 1,210 | 1,362 |
Other noncurrent assets | 855 | 874 |
Total assets | 14,667 | 15,519 |
Current liabilities | ||
Payables and other current liabilities | 2,125 | 2,133 |
Borrowings due within one year | 1,126 | 747 |
Liabilities held for sale | 0 | 91 |
Total current liabilities | 3,251 | 2,971 |
Long-term borrowings | 4,025 | 4,412 |
Deferred income tax liabilities | 671 | 810 |
Post-employment obligations | 628 | 811 |
Other long-term liabilities | 856 | 727 |
Total liabilities | $ 9,431 | $ 9,731 |
Common stock, shares issued (in shares) | 222,348,557 | 221,809,309 |
Common Stock, Shares Authorized | 350,000,000 | 350,000,000 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Stockholders' equity | ||
Common stock ($0.01 par value per share – 350,000,000 shares authorized; shares issued – 222,348,557 and 221,809,309 for 2022 and 2021, respectively) | $ 2 | $ 2 |
Additional paid-in capital | 2,315 | 2,187 |
Retained earnings | 8,973 | 8,557 |
Accumulated other comprehensive loss | (205) | (182) |
Total stockholders' equity before treasury stock | $ 11,085 | $ 10,564 |
Treasury stock at cost (in shares) | 103,602,488 | 92,892,229 |
Less: Treasury stock at cost (103,602,488 and 92,892,229 shares for 2022 and 2021, respectively) | $ 5,932 | $ 4,860 |
Total Eastman stockholders' equity | 5,153 | 5,704 |
Noncontrolling interest | 83 | 84 |
Total equity | 5,236 | 5,788 |
Total liabilities and stockholders' equity | $ 14,667 | $ 15,519 |
CONSOLIDATED STATEMENTS OF FI_2
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (Parenthetical) - $ / shares | Dec. 31, 2022 | Dec. 31, 2021 |
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) | 222,348,557 | 221,809,309 |
Treasury stock at cost (in shares) | 103,602,488 | 92,892,229 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Operating activities | |||
Net earnings | $ 796 | $ 867 | $ 489 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | |||
Depreciation and amortization | 477 | 538 | 574 |
Mark-to-market pension and other postretirement benefit plans (gain) loss, net | 19 | (267) | 240 |
Asset impairment charges | 0 | 16 | 146 |
Early debt extinguishment costs | 0 | 1 | 1 |
Loss on sale of assets | 15 | 0 | 0 |
Loss on divested businesses | (43) | (552) | 0 |
Provision for (benefit from) deferred income taxes | (136) | (38) | (111) |
Changes in operating assets and liabilities, net of effect of acquisitions and divestitures: | |||
(Increase) decrease in trade receivables | 93 | (281) | (31) |
(Increase) decrease in inventories | (430) | (389) | 291 |
Increase (decrease) in trade payables | 60 | 554 | (100) |
Pension and other postretirement contributions (in excess of) less than expenses | (149) | (185) | (136) |
Variable compensation payments (in excess of) less than expenses | (103) | 162 | 87 |
Other items, net | 290 | 89 | 5 |
Net cash provided by operating activities | 975 | 1,619 | 1,455 |
Investing activities | |||
Additions to properties and equipment | (611) | (555) | (383) |
Proceeds from sale of businesses | 998 | 667 | 0 |
Acquisitions, net of cash acquired | (1) | (114) | (1) |
Additions to capitalized software | (13) | (23) | (13) |
Other items, net | 19 | (4) | 3 |
Net cash provided by (used in) investing activities | 392 | (29) | (394) |
Financing activities | |||
Net increase (decrease) in commercial paper and other borrowings | 326 | (50) | (121) |
Proceeds from borrowings | 500 | 0 | 249 |
Repayment of borrowings | (750) | (300) | (435) |
Dividends paid to stockholders | (381) | (375) | (358) |
Treasury stock purchases | (1,002) | (1,000) | (60) |
Other items, net | (14) | 35 | 21 |
Net cash used in financing activities | (1,321) | (1,690) | (704) |
Effect of exchange rate changes on cash and cash equivalents | (12) | (5) | 3 |
Net change in cash and cash equivalents | 34 | (105) | 360 |
Cash and cash equivalents at beginning of period | 459 | 564 | 204 |
Cash and cash equivalents at end of period | $ 493 | $ 459 | $ 564 |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
SIGNIFICANT ACCOUNTING POLICIES | SIGNIFICANT ACCOUNTING POLICIES Financial Statement Presentation The consolidated financial statements of Eastman Chemical Company ("Eastman" or the "Company") and subsidiaries are prepared in conformity with accounting principles generally accepted ("GAAP") in the United States and of necessity include some amounts that are based upon management estimates and judgments. Future actual results could differ from such current estimates. The consolidated financial statements include assets, liabilities, sales revenue, and expenses of all majority-owned subsidiaries and joint ventures in which a controlling interest is maintained. Eastman accounts for other joint ventures and investments in minority-owned companies where it exercises significant influence on the equity basis. Intercompany transactions and balances are eliminated in consolidation. Certain prior period data has been reclassified in the consolidated financial statements and accompanying footnotes to conform to current period presentation, including sales revenue, earnings before interest and taxes ("EBIT"), assets, depreciation and amortization expense, and capital expenditures related to the divested rubber additives product lines and related assets and technology and the adhesives resins business. See Note 20, "Segment and Regional Sales Information", for more information. Recently Adopted Accounting Standards Accounting Standards Update ("ASU") 2021-05 Leases (Topic 842): Lessors - Certain Leases with Variable Lease Payments : On January 1, 2022, Eastman adopted this update which is a part of the Financial Accounting Standards Board's ("FASB") post-implementation review of this Topic. The update provides that lessors should classify and account for a lease with variable lease payments that do not depend on a reference index or a rate as an operating lease if both: the lease would have been classified as a sales-type lease or a direct financing lease and the lessor would have otherwise recognized a day-one loss. The adoption did not have a significant impact on the Company's financial statements and related disclosures. ASU 2021-10 Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance : On January 1, 2022, Eastman adopted prospectively this amendment which requires business entities that account for transactions with a government by applying a grant or contribution model by analogy (for example, a grant model within International Financial Reporting Standards) to provide annual disclosures about government assistance recorded during the period. The adoption did not have a significant impact on the Company's financial statements and related disclosures. Accounting Standards Issued But Not Adopted as of December 31, 2022 ASU 2021-08 Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers : The FASB issued this update in October 2021, which requires that an entity (acquirer) recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Topic 606 Revenue from Contracts with Customers , as if it had originated the contracts. The update also provides certain practical expedients for acquirers and is applicable to all contract assets and liabilities within the scope of Topic 606. The expedients are as follows: "provides relief for contracts that have been previously modified before the acquisition date" and "relief for situations in which the acquirer does not have the appropriate data or expertise to analyze the historical periods in which the contract was entered into". This guidance is effective for fiscal years beginning after December 15, 2022, including interim periods within those years. Adoption is on a prospective basis to business combinations occurring on or after the initial application. Management does not expect that changes required by the new standard will have a significant impact on the Company's financial statements and related disclosures. ASU 2022-01 Derivatives and Hedging (Topic 815): Fair Value Hedging—Portfolio Layer Method : The FASB issued this update in March 2022. This ASU clarifies the guidance in Accounting Standards Codification ("ASC") 815 on fair value hedge accounting of interest rate risk for portfolios of financial assets. This ASU amends the guidance in ASU 2017-12 (released on August 28, 2017) that, among other things, established the "last-of-layer" method for making the fair value hedge accounting for these portfolios more accessible. ASU 2022-01 renames that method the "portfolio layer" method and addresses feedback from stakeholders regarding its application. This guidance is effective for fiscal years beginning after December 15, 2022, including interim periods within those years. Management does not expect that changes required by the new standard will have a significant impact on the Company's financial statements and related disclosures. ASU 2022-02 Financial Instruments—Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures : The FASB issued this update in March 2022. This ASU updates the requirements for accounting for credit losses under ASC 326, eliminates the accounting guidance on troubled debt restructurings for creditors in ASC 310-40, and enhances creditors' disclosure requirements related to loan refinancings and restructurings for borrowers experiencing financial difficulty. This ASU also amends the guidance on "vintage disclosures" to require disclosure of gross write-offs by year of origination. This guidance is effective for fiscal years beginning after December 15, 2022, including interim periods within those years. Management does not expect that changes required by the new standard will have a significant impact on the Company's financial statements and related disclosures. ASU 2022-03 Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions : The FASB issued this update in June 2022, which states that when measuring the fair value of an asset or a liability, a reporting entity should consider the characteristics of the asset or liability, including restrictions on the sale of the asset or liability, if a market participant also would take those characteristics into account. Key to that determination is the unit of account for the asset or liability being measured at fair value. This guidance is effective for fiscal years beginning after December 15, 2023, and interim periods within those fiscal years, with early adoption permitted. Management does not expect that changes required by the new standard will have a significant impact on the Company's financial statements and related disclosures. ASU 2022-04 Liabilities - Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations : The FASB issued this update in September 2022, which requires the buyer in a supplier finance program to disclose qualitative and quantitative information about the program. Required disclosures include information about the key terms of the program, outstanding confirmed amounts as of the end of the period, a rollforward of such amounts during each annual period, and a description of where in the financial statements outstanding amounts are presented. This guidance is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years, except for the disclosure of rollforward information, which is effective for fiscal years beginning after December 15, 2023, with early adoption permitted. Management is currently evaluating the impact of the changes required by the new standard on the Company's financial statements and related disclosures. ASU 2022-06 Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848 : The FASB issued this update in December 2022, which extends the temporary optional relief in accounting for the impact of reference rate reform under Topic 848 from December 31, 2022 to December 31, 2024. The amendments apply to all entities that have contracts, hedging relationships, and other transactions that reference the London Interbank Offered Rate ("LIBOR") or another reference rate expected to be discontinued because of reference rate reform. This update was effective immediately upon issuance, with no impact on the Company's financial statements and related disclosures. Revenue Recognition Eastman recognizes revenue when performance obligations of the sale are satisfied. Eastman sells to customers through master sales agreements or standalone purchase orders. The majority of the Company's terms of sale have a single performance obligation to transfer products. Accordingly, the Company recognizes revenue when control has been transferred to the customer, generally at the time of shipment of products. Eastman accounts for shipping and handling as activities to fulfill the promise to transfer the good and does not allocate revenue to those activities. All related shipping and handling costs are recognized at the time of shipment. Amounts collected for sales or other similar taxes are presented net of the related tax expense rather than presenting them as additional revenue. The incremental cost of obtaining a sales contract is recognized as a selling expense when incurred given the potential amortization period for such an asset is one year or less. The possible existence of a significant financing component within a sales contract is ignored when the time between cash collection and performance is less than one year. Finally, the Company does not disclose any unfulfilled obligations as customer purchase order commitments have an original expected duration of one year or less and no consideration from customers is excluded from the transaction price. The timing of Eastman's customer billings does not always match the timing of revenue recognition. When the Company is entitled to bill a customer in advance of the recognition of revenue, a contract liability is recognized. When the Company is not entitled to bill a customer until a period after the related recognition of revenue, a contract asset is recognized. Contract assets represent the Company's right to consideration for the exchange of goods under a contract but which are not yet billable to a customer for consignment inventory or pursuant to certain shipping terms. Contract liabilities were $18 million and $14 million as of December 31, 2022 and 2021, respectively, and are included as a part of "Payables and other current liabilities" and "Other long-term liabilities" in the Consolidated Statements of Financial Position. Contract assets were $93 million and $82 million as of December 31, 2022 and 2021, respectively, and are included as a component of "Miscellaneous receivables" in the Consolidated Statements of Financial Position. For additional information, see Note 20, "Segment and Regional Sales Information". Pension and Other Postretirement Benefits Eastman maintains defined benefit pension and other postretirement benefits plans that provide eligible employees with retirement benefits. The estimated amounts of the costs and obligations related to these benefits reflect the Company's assumptions related to discount rates, expected return on plan assets, rate of compensation increase or decrease for employees, and health care cost trends. The estimated cost of providing plan benefits also depends on demographic assumptions including retirements, mortality, turnover, and plan participation. Eastman's pension and other postretirement benefit plans costs consist of two elements: 1) ongoing costs recognized quarterly, which are comprised of service and interest costs, expected returns on plan assets, and amortization of prior service credits; and 2) mark-to-market ("MTM") gains and losses recognized annually, in the fourth quarter of each year, primarily resulting from changes in actuarial assumptions for discount rates and the differences between actual and expected returns on plan assets. Any interim remeasurements triggered by a curtailment, settlement, or significant plan changes are recognized in the quarter in which such remeasurement event occurs. For additional information, see Note 11, "Retirement Plans". Environmental Costs Eastman recognizes environmental remediation costs when it is probable that the Company has incurred a liability at a contaminated site and the amount can be reasonably estimated. When a single amount cannot be reasonably estimated but the cost can be estimated within a range, the Company recognizes the minimum undiscounted amount. This undiscounted amount reflects liabilities expected to be paid within approximately 30 years and the Company's assumptions about remediation requirements at the contaminated site, the nature of the remedy, the outcome of discussions with regulatory agencies and other potentially responsible parties at multi-party sites, and the number and financial viability of other potentially responsible parties. Changes in the estimates on which the accruals are based, unanticipated government enforcement action, or changes in health, safety, environmental, and chemical control regulations and testing requirements could result in higher or lower costs. The Company also establishes reserves for closure and post-closure costs associated with the environmental and other assets it maintains. Environmental assets include but are not limited to waste management units, such as landfills, water treatment facilities, and surface impoundments. When these types of assets are constructed or installed, a loss contingency reserve is established for the anticipated future costs associated with the retirement or closure of the asset based on its expected life and the applicable regulatory closure requirements. The Company recognizes the 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. These future estimated costs are charged to earnings over the estimated useful life of the assets. If the Company changes its estimate of the environmental asset retirement obligation costs or its estimate of the useful lives of these assets, earnings will be impacted in the period the estimate is changed. 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 and charged to "Cost of sales" in the Consolidated Statements of Earnings, Comprehensive Income and Retained Earnings. Environmental costs are capitalized if they extend the life of the related property, increase its capacity, or mitigate the possibility of future contamination. The cost of operating and maintaining environmental control facilities is charged to "Cost of sales" in the Consolidated Statements of Earnings, Comprehensive Income and Retained Earnings, as incurred. For additional information see Note 13, "Environmental Matters and Asset Retirement Obligations". Share-Based Compensation Eastman recognizes compensation expense in "Selling, general and administrative expense" in the Consolidated Statements of Earnings, Comprehensive Income and Retained Earnings for stock options and other share-based compensation awards based upon the grant-date fair value over the substantive vesting period. For additional information, see Note 18, "Share-Based Compensation Plans and Awards". Restructuring of Operations Eastman records restructuring charges for costs incurred in connection with consolidation of operations, exited business or product lines, or shutdowns of specific sites that are expected to be substantially completed within twelve months. These restructuring charges are recorded as incurred, and are associated with site closures, legal and environmental matters, demolition, contract terminations, obsolete inventory, or other costs and charges directly related to the restructuring. The Company records severance charges for employee separations when the separation is probable and reasonably estimable. In the event employees are required to perform future service, the Company records severance charges ratably over the remaining service period of those employees. For additional information, see Note 16, "Asset Impairments and Restructuring Charges, Net". Income Taxes The provision for income taxes has been determined using the asset and liability approach of accounting for income taxes. Under this approach, deferred taxes represent the future tax consequences expected to occur when the reported amounts of assets and liabilities are recovered or paid. The provision for income taxes represents income taxes paid or payable for the current year plus the change in deferred taxes during the year. Deferred taxes result from differences between the financial and tax bases of Eastman's assets and liabilities and are adjusted for changes in tax rates and tax laws when changes are enacted. The recoverability of the Company's deferred tax assets are evaluated each quarter by assessing the likelihood of future profitability and available tax planning strategies that could be implemented to realize the Company's net deferred tax assets. Valuation allowances are recorded to reduce deferred tax assets when it is more likely than not that a tax benefit will not be realized. Provision has been made for income taxes on unremitted earnings of subsidiaries and affiliates, except for subsidiaries in which earnings are deemed to be indefinitely reinvested. The calculation of income tax liabilities involves uncertainties in the application of complex tax laws and regulations, which are subject to legal interpretation and management judgment. Eastman's income tax returns are regularly examined by federal, state and foreign tax authorities, and those audits may result in proposed adjustments. The Company has evaluated these potential issues under the more-likely-than-not standard of the accounting literature. A tax position is recognized if it meets this standard and is measured at the largest amount of benefit that has a greater than 50 percent likelihood of being realized. Such judgments and estimates may change based on audit settlements, court cases and interpretation of tax laws and regulations. The Company accrues interest related to unrecognized income tax positions, which is included as a component of the income tax provision on the balance sheet. The accrued interest related to unrecognized income tax positions and taxes resulting from the global intangible low-tax income are recorded as a component of the income tax provision. For additional information, see Note 8, "Income Taxes". Cash and Cash Equivalents Cash and cash equivalents include cash, time deposits, and readily marketable securities with original maturities of three months or less. Fair Value Measurements Eastman records recurring and non-recurring financial assets and liabilities as well as all non-financial assets and liabilities subject to fair value measurement at the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. These fair value principles prioritize valuation inputs across three broad levels. Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2 inputs are quoted prices for similar assets and liabilities in active markets or inputs that are observable for the asset or liability, either directly or indirectly through market corroboration, for substantially the full term of the financial instrument. Level 3 inputs are unobservable inputs based on the Company's assumptions used to measure assets and liabilities at fair value. An asset or liability's classification within the various levels is determined based on the lowest level input that is significant to the fair value measurement. Accounts Receivable and Allowance for Credit Losses Trade accounts receivable are recorded at the invoiced amount and do not bear interest. Eastman maintains allowances for estimated credit losses, which are developed at a market, country, and region level based on risk of collection as well as current and forecasted economic conditions. The Company calculates the allowance based on an assessment of the risk when the accounts receivable is recognized. Write-offs are recorded at the time a customer receivable is deemed uncollectible. Allowance for credit losses was $15 million and $17 million as of December 31, 2022 and 2021, respectively. The Company does not enter into receivables of a long-term nature, also known as financing receivables, in the normal course of business. Inventories Inventories measured by the last-in, first-out ("LIFO") method are valued at the lower of cost or market and inventories measured by the first-in, first-out ("FIFO") method are valued at the lower of cost or net realizable value. Eastman determines the cost of most raw materials, work in process, and finished goods inventories in the United States and Switzerland by the LIFO method. The cost of all other inventories is determined by the average cost method, which approximates the FIFO method. The Company writes-down its inventories equal to the difference between the carrying value of inventory and the estimated market value or net realizable value based upon assumptions about future demand and market conditions. For additional information, see Note 3, "Inventories". Properties Eastman records properties at cost. Maintenance and repairs are charged to earnings; replacements and betterments are capitalized. When Eastman retires or otherwise disposes of assets, it removes the cost of such assets and related accumulated depreciation from the accounts. The Company records any profit or loss on retirement or other disposition in "Cost of sales" in the Consolidated Statements of Earnings, Comprehensive Income and Retained Earnings. Asset impairments are reflected as increases in accumulated depreciation for properties that have been placed in service. In instances when an asset has not been placed in service and is impaired, the associated costs are removed from the appropriate property accounts. For additional information, see Note 4, "Properties and Accumulated Depreciation". Depreciation and Amortization Depreciation expense is calculated based on historical cost and the estimated useful lives of the assets, generally using the straight-line method. Estimated useful lives for buildings and building equipment generally range from 20 to 50 years. Estimated useful lives generally ranging from 3 to 33 years are applied to machinery and equipment in the following categories: computer software (3 to 5 years); office furniture and fixtures and computer equipment (5 to 10 years); vehicles, railcars, and general machinery and equipment (5 to 20 years); and manufacturing-related improvements (20 to 33 years). Accelerated depreciation is reported when the estimated useful life is shortened and continues to be reported in "Cost of sales" in the Consolidated Statements of Earnings, Comprehensive Income and Retained Earnings. For additional information, see Note 4, "Properties and Accumulated Depreciation". Amortization expense for definite-lived intangible assets is generally determined using a straight-line method over the estimated useful life of the asset. Amortization expense is reported in "Cost of sales" in the Consolidated Statements of Earnings, Comprehensive Income and Retained Earnings. For additional information, see Note 5, "Goodwill and Other Intangible Assets". Impairment of Long-Lived Assets Definite-lived Assets Properties and equipment and definite-lived intangible assets to be held and used by Eastman are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. The review of properties and equipment and the review of definite-lived intangible assets is performed at the asset group level, which is the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities. If the carrying amount is not considered to be recoverable, an analysis of fair value is triggered. An impairment is recognized for the excess of the carrying amount of the asset over the fair value. Goodwill Goodwill is an asset determined as the residual of the purchase price over the fair value of identified assets and liabilities acquired in a business combination. Eastman conducts testing of goodwill for impairment annually in the fourth quarter or more frequently when events and circumstances indicate an impairment may have occurred. The testing of goodwill is performed at the "reporting unit" level which the Company has determined to be its "components". Components are defined as an operating segment or one level below an operating segment, and in order to be a reporting unit, the component must 1) be a "business" as defined by applicable accounting standards (an integrated set of activities and assets that is capable of being conducted and managed for the purpose of providing a return in the form of dividends, lower costs, or other economic benefits directly to the investors or other owners, members, or participants); 2) have discrete financial information available; and 3) be reviewed regularly by Company operating segment management. The Company aggregates certain components into reporting units based on economic similarities. An impairment is recognized when the reporting unit's estimated fair value is less than its carrying value. The Company uses an income approach, specifically a discounted cash flow model, in testing the carrying value of goodwill of each reporting unit for impairment. Indefinite-lived Intangible Assets Eastman conducts testing of indefinite-lived intangible assets annually in the fourth quarter or more frequently when events and circumstances indicate an impairment may have occurred. The carrying value of an indefinite-lived intangible asset is considered to be impaired when the fair value, as established by appraisal or based on discounted future cash flows of certain related products, is less than the respective carrying value. Indefinite-lived intangible assets, consisting primarily of various tradenames, are tested for potential impairment by comparing the estimated fair value to the carrying amount. The Company uses an income approach, specifically the relief from royalty method, to test indefinite-lived intangible assets. The estimated fair value of tradenames is determined based on an assumed royalty rate savings, discounted by the calculated market participant estimated weighted average cost of capital ("WACC") plus a risk premium. For additional information, see Note 5, "Goodwill and Other Intangible Assets". Leases There are two types of leases: financing and operating. Both types of leases have associated right-to-use assets and lease liabilities that are valued at the net present value of the lease payments and recognized on the Consolidated Statements of Financial Position. The discount rate used in the measurement of a right-to-use asset and lease liability is the rate implicit in the lease whenever that rate is readily determinable. If the rate implicit in the lease is not readily determinable, the collateralized incremental borrowing rate is used. The Company elected the accounting policy not to apply the recognition and measurement requirements to short-term leases with a term of 12 months or less and do not include a bargain purchase option. Residual guarantee payments that become probable and estimable are recognized as rent expense over the remaining life of the applicable lease. For lease accounting policies, see Note 12, "Leases and Other Commitments". Investments The consolidated financial statements include the accounts of Eastman and all its subsidiaries and entities or joint ventures in which a controlling interest is maintained. The Company includes its share of earnings and losses of such investments in "Net earnings attributable to Eastman" and "Comprehensive income attributable to Eastman" located in the Consolidated Statements of Earnings, Comprehensive Income and Retained Earnings and in "Total equity" located in the Consolidated Statements of Financial Position. Investments in affiliates over which the Company has significant influence but not a controlling interest are carried under the equity method of accounting. These investments are included in "Other noncurrent assets" in the Consolidated Statements of Financial Position. The Company includes its share of earnings and losses of such investments in "Other (income) charges, net" located in the Consolidated Statements of Earnings, Comprehensive Income and Retained Earnings. For additional information, see Note 6, "Equity Investments". Derivative and Non-Derivative Financial Instruments Eastman uses derivative and non-derivative instruments to manage its exposure to market risks, such as changes in foreign currency exchange rates, commodity prices, and interest rates. The Company does not enter into derivative transactions for speculative purposes. The Company's derivative instruments are recognized as either assets or liabilities on the Consolidated Statements of Financial Position and measured at fair value. Hedge accounting will be discontinued prospectively for all hedges that no longer qualify for hedge accounting treatment. For additional information, see Note 10, "Derivative and Non-Derivative Financial Instruments". Litigation and Contingent Liabilities From time to time, Eastman 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 handled and defended in the ordinary course of business. The Company accrues a contingent loss liability for such matters when it is probable that a liability has been incurred and the amount can be reasonably estimated. When a single amount cannot be reasonably estimated but the cost can be estimated within a range, the Company accrues the minimum amount. The Company expenses legal costs, including those expected to be incurred in connection with a loss contingency, as incurred. Working Capital Management and Off Balance Sheet Arrangements The Company has an off balance sheet, uncommitted accounts receivable factoring program under which entire invoices may be sold, without recourse, to third-party financial institutions. Under these agreements, the Company sells the invoices at face value, less a transaction fee, which substantially equals fair value with no gain or loss recognized, and no credit loss exposure is retained. Available capacity under these agreements, which the Company uses as a routine source of working capital funding, is dependent on the level of accounts receivable eligible to be sold and the financial institutions' willingness to purchase such receivables. In addition, certain agreements also require that the Company continue to service, administer, and collect the sold accounts receivable at market rates. The total amount of receivables sold in 2022 and 2021 were $2.5 billion and $1.2 billion, respectively. The Company works with suppliers to optimize payment terms and conditions on accounts payable to enhance timing of working capital and cash flows. The Company has a voluntary supply chain finance program to provide suppliers with the opportunity to sell receivables due from Eastman to a participating financial institution. Eastman's responsibility is limited to making payments on the terms originally negotiated with suppliers, regardless of whether the suppliers sell their receivables to the financial institution. The range of payment terms Eastman negotiates with suppliers are consistent, regardless of whether a supplier participates in the program. All of Eastman's accounts payable and associated payments are reported consistently in the Company's Consolidated Statements of Financial Position and Consolidated Statements of Cash Flows regardless of whether they are associated with a vendor who participates in the program. |
DIVESTITURES
DIVESTITURES | 12 Months Ended |
Dec. 31, 2022 | |
Divestitures [Abstract] | |
Mergers, Acquisitions and Dispositions Disclosures [Text Block] | DIVESTITURES Rubber Additives Divestiture On November 1, 2021, the Company and certain of its subsidiaries completed the sale of its rubber additives (including Crystexâ„¢ insoluble sulfur and Santoflexâ„¢ antidegradants) and other product lines and related assets and technology of the global tire additives business ("rubber additives") of its Additives & Functional Products ("AFP") segment. The sale did not include the Eastman Imperaâ„¢ and other performance resins product lines of the tire additives business. The Company provided certain business transition and post-closing services to the buyer on agreed terms, which were completed in 2022. The business was not reported as a discontinued operation because the sale did not have a major effect on the Company's operations and financial results. The total estimated consideration, after estimates of contingent consideration and post-closing adjustments and ongoing agreements through October 2027, was $640 million. The additional amount of consideration of up to $75 million is to be paid based on performance of divested rubber additives through December 2023. The divestiture resulted in a $594 million loss (including cumulative translation adjustment liquidation of $23 million and certain costs to sell of $ 7 million The major classes of divested assets and liabilities were as follows: (Dollars in millions) Assets divested Trade receivables, net of allowance for doubtful accounts $ 107 Inventories 94 Other assets 26 Properties, net of accumulated depreciation 298 Goodwill 398 Intangible assets, net of accumulated amortization 381 Assets divested 1,304 Liabilities divested Payables and other liabilities 48 Post-employment obligations 34 Other liabilities 18 Liabilities divested 100 Disposal group, net $ 1,204 Separately, the Company recognized $5 million and $15 million of transaction costs for the divested business in 2022 and 2021, respectively. Transaction costs are expensed as incurred and are included in "Selling, general and administrative expenses" ("SG&A") in the Consolidated Statements of Earnings, Comprehensive Income and Retained Earnings. Adhesives Resins Divestiture On April 1, 2022, the Company and certain of its subsidiaries completed the sale of its adhesives resins business, which included hydrocarbon resins (including Eastman Imperaâ„¢ tire resins), pure monomer resins, polyolefin polymers, rosins and dispersions, and oleochemical and fatty-acid based resins product lines ("adhesives resins"), of its AFP segment. The Company provided certain business transition and post-closing services to the buyer on agreed terms, which were completed in 2022. The business was not reported as a discontinued operation because the sale did not have a major effect on the Company's operations and financial results. Included in the adhesives resins divestiture was the 50 percent interest in a joint venture that has a manufacturing facility in Nanjing, China, which produces Eastotacâ„¢ hydrocarbon tackifying resins for pressure-sensitive adhesives, caulks, and sealants. The total estimated consideration, after estimates of post-closing adjustments, was $957 million. The divestiture resulted in a $1 million loss (including cumulative translation adjustment liquidation of $10 million and certain costs to sell of $ 13 million The major classes of divested assets and liabilities as of the date of the divestiture were as follows: (Dollars in millions) Assets divested Trade receivables, net of allowance for doubtful accounts $ 129 Inventories 163 Other assets 21 Properties, net of accumulated depreciation 303 Goodwill 399 Intangible assets, net of accumulated amortization 14 Assets divested 1,029 Liabilities divested Payables and other liabilities 83 Deferred tax liability 7 Other liabilities 4 Liabilities divested 94 Disposal group, net $ 935 |
INVENTORIES
INVENTORIES | 12 Months Ended |
Dec. 31, 2022 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | INVENTORIES December 31, (Dollars in millions) 2022 2021 Finished goods $ 1,347 $ 1,007 Work in process 297 273 Raw materials and supplies 743 589 Total inventories at FIFO or average cost 2,387 1,869 Less: LIFO reserve 493 365 Total inventories $ 1,894 $ 1,504 Inventories valued on the LIFO method were approximately 50 percent of total inventories at both December 31, 2022 and 2021. |
PROPERTIES AND ACCUMULATED DEPR
PROPERTIES AND ACCUMULATED DEPRECIATION | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
PROPERTIES AND ACCUMULATED DEPRECIATION | PROPERTIES AND ACCUMULATED DEPRECIATION December 31, (Dollars in millions) 2022 2021 Properties Land $ 140 $ 150 Buildings 1,394 1,458 Machinery and equipment 10,543 10,449 Construction in progress 865 623 Properties and equipment at cost $ 12,942 $ 12,680 Less: Accumulated depreciation 7,782 7,684 Net properties $ 5,160 $ 4,996 Depreciation expense was $384 million, $426 million, and $445 million for 2022, 2021, and 2020, respectively. Cumulative construction-period interest of $93 million and $99 million, reduced by accumulated depreciation of $43 million and $45 million, is included in net properties at December 31, 2022 and 2021, respectively. Eastman capitalized $9 million, $5 million, and $4 million of interest in 2022, 2021, and 2020, respectively. |
GOODWILL AND OTHER INTANGIBLE A
GOODWILL AND OTHER INTANGIBLE ASSETS | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND OTHER INTANGIBLE ASSETS | GOODWILL AND OTHER INTANGIBLE ASSETS Below is a summary of the change in goodwill during 2022 and 2021. (Dollars in millions) Advanced Materials Additives & Functional Products Chemical Intermediates Other Total Balance at December 31, 2020 $ 1,292 $ 2,397 $ 766 $ 10 $ 4,465 Divestiture — (398) — — (398) Held for sale (1) — (399) — — (399) Currency translation adjustments (6) (15) (6) — (27) Balance at December 31, 2021 1,286 1,585 760 10 3,641 Acquisitions (2) 15 30 — — 45 Currency translation adjustments (5) (14) (3) — (22) Balance at December 31, 2022 $ 1,296 $ 1,601 $ 757 $ 10 $ 3,664 (1) Held for sale goodwill was divested in 2022. (2) Measurement period adjustments related to prior year acquisitions. The reported balance of goodwill included accumulated impairment losses of $106 million, $12 million, and $14 million in the AFP segment, Chemical Intermediates ("CI") segment, and other segments, respectively, at both December 31, 2022 and 2021. The carrying amounts of intangible assets follow: December 31, 2022 December 31, 2021 (Dollars in millions) Estimated Useful Life in Years Gross Carrying Value Accumulated Amortization Net Carrying Value Gross Carrying Value Accumulated Amortization Net Carrying Value Amortizable intangible assets: Customer relationships 8 - 25 $ 1,134 $ 535 $ 599 $ 1,144 $ 479 $ 665 Technology 7 - 20 505 331 174 581 304 277 Other 16 - 37 110 32 78 87 26 61 Indefinite-lived intangible assets: Tradenames 349 — 349 349 — 349 Other 10 — 10 10 — 10 Total identified intangible assets $ 2,108 $ 898 $ 1,210 $ 2,171 $ 809 $ 1,362 Amortization expense of definite-lived intangible assets was $87 million, $108 million, and $128 million for 2022, 2021, and 2020, respectively. Estimated amortization expense for future periods is $83 million in 2023 and 2024, $76 million in 2025 and 2026, and $67 million in 2027. |
EQUITY INVESTMENTS
EQUITY INVESTMENTS | 12 Months Ended |
Dec. 31, 2022 | |
Equity Method Investments and Joint Ventures [Abstract] | |
EQUITY INVESTMENTS | EQUITY INVESTMENTS Eastman owns a 50 percent or less interest in joint ventures which are accounted for under the equity method. As of December 31, 2022 and 2021, these include a joint venture with a 50 percent interest for the manufacture of compounded cellulose diacetate ("CDA") in Shenzhen, China. CDA is a bio-derived material, which is used in various injection molded applications, including but not limited to ophthalmic frames, tool handles, and other end-use products. The Company owns a 45 percent interest in a joint venture with China National Tobacco Corporation that manufactures acetate tow in Hefei, China. As of December 31, 2022, these joint ventures also include a 40 percent interest in a joint venture that is building a manufacturing facility in Kingsport, Tennessee. The Kingsport facility will produce acetylated wood. As of December 31, 2021, Eastman owned a 50 percent interest in a joint venture that had a manufacturing facility in Nanjing, China. The Nanjing facility produces Eastotac TM hydrocarbon tackifying resins for pressure-sensitive adhesives, caulks, and sealants, which was sold in 2022 as part of the divestiture of the adhesives resins business. For additional information, see Note 2, "Divestitures". At December 31, 2022 and 2021, the Company's total investment in these joint ventures was $111 million and $96 million, respectively, included in "Other noncurrent assets" in the Consolidated Statements of Financial Position. |
PAYABLES AND OTHER CURRENT LIAB
PAYABLES AND OTHER CURRENT LIABILITIES | 12 Months Ended |
Dec. 31, 2022 | |
Payables and Accruals [Abstract] | |
PAYABLES AND OTHER CURRENT LIABILITIES | PAYABLES AND OTHER CURRENT LIABILITIES December 31, (Dollars in millions) 2022 2021 Trade creditors $ 1,319 $ 1,228 Accrued payrolls, vacation, and variable-incentive compensation 164 311 Accrued taxes 157 138 Post-employment obligations 103 70 Dividends payable to stockholders 94 101 Other 288 285 Total payables and other current liabilities $ 2,125 $ 2,133 The "Other" above consists primarily of accruals for the current portion of factoring, operating lease liabilities, interest payable, environmental liabilities, and miscellaneous accruals. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
PROVISION FOR INCOME TAXES | INCOME TAXES Components of earnings before income taxes and the provision for U.S. and other income taxes from operations follow: For years ended December 31, (Dollars in millions) 2022 2021 2020 Earnings before income taxes United States $ 205 $ 645 $ 164 Outside the United States 772 437 366 Total $ 977 $ 1,082 $ 530 Provision for income taxes United States Federal Current $ 179 $ 114 $ 70 Deferred (76) 18 (96) Outside the United States Current 105 115 77 Deferred (10) (42) (14) State and other Current 33 24 5 Deferred (50) (14) (1) Total $ 181 $ 215 $ 41 The following represents the deferred tax (benefit) charge recorded as a component of "Accumulated other comprehensive income (loss)" ("AOCI") in the Consolidated Statements of Financial Position: For years ended December 31, (Dollars in millions) 2022 2021 2020 Defined benefit pension and other postretirement benefit plans $ (7) $ (10) $ (7) Derivatives and hedging (1) 21 (4) Total $ (8) $ 11 $ (11) Total income tax expense (benefit) included in the consolidated financial statements was composed of the following: For years ended December 31, (Dollars in millions) 2022 2021 2020 Earnings before income taxes $ 181 $ 215 $ 41 Other comprehensive income (8) 11 (11) Total $ 173 $ 226 $ 30 Differences between the provision for income taxes and income taxes computed using the U.S. Federal statutory income tax rate follow: For years ended December 31, (Dollars in millions) 2022 2021 2020 Amount computed using the statutory rate $ 205 $ 225 $ 109 State income taxes, net (27) (4) 2 Foreign rate variance (16) (28) (49) Change in reserves for tax contingencies 27 (39) 4 General business credits (44) (21) (39) U.S. tax on foreign earnings, net of credits (17) 2 13 Divestitures 37 89 — Tax law changes and tax loss from outside-U.S. entity reorganizations — (15) — Other 16 6 1 Provision for income taxes $ 181 $ 215 $ 41 Effective income tax rate 19 % 20 % 8 % The 2022 provision for income taxes include a $32 million decrease related to the release of a state valuation allowance and a $37 million increase to reflect the tax implications of the business divestitures, including an increase related to non-deductible losses. The 2021 provision for income taxes includes a $78 million decrease primarily related to previously unrecognized tax positions resulting from finalization of prior years' income tax audits, partially offset by current year increases. Additionally, the 2021 provision for income taxes includes impacts of the divestiture of rubber additives, including an increase related to non-deductible losses partially offset by a decrease from the revaluation of deferred tax liabilities. The 2020 provision for income taxes includes a $27 million decrease as a result of a decrease in previously unrecognized tax positions and a $7 million decrease related to adjustments to certain prior year tax returns. Income tax incentives, in the form of tax holidays, have been granted to the Company in certain jurisdictions to attract investment and encourage industrial development. The expiration of these tax holidays varies by country. The tax holidays are conditional on the Company meeting certain requirements, including employment and investment thresholds; determination of compliance with these conditions may be subject to challenge by tax authorities in those jurisdictions. No individual tax holiday had a material impact to the Company's earnings in 2022, 2021, or 2020. The significant components of deferred tax assets and liabilities follow: December 31, (Dollars in millions) 2022 2021 Deferred tax assets Post-employment obligations $ 150 $ 176 Net operating loss carryforwards 645 637 Tax credit carryforwards 236 212 Environmental contingencies 64 67 Capitalized research and development expenses 139 — Other 239 224 Total deferred tax assets 1,473 1,316 Less: Valuation allowance 258 339 Deferred tax assets less valuation allowance $ 1,215 $ 977 Deferred tax liabilities Property, plant, and equipment $ (849) $ (843) Intangible assets (272) (288) Investments (441) (369) Other (201) (171) Total deferred tax liabilities $ (1,763) $ (1,671) Net deferred tax liabilities $ (548) $ (694) As recorded in the Consolidated Statements of Financial Position: Other noncurrent assets $ 123 $ 116 Deferred income tax liabilities (671) (810) Net deferred tax liabilities $ (548) $ (694) All foreign earnings, with the exception of short-term liquid assets on certain foreign subsidiaries, including basis differences, continue to be considered indefinitely reinvested. As of December 31, 2022, unremitted earnings of subsidiaries outside the U.S. totaled approximately $3.0 billion of which a substantial portion has already been subject to U.S. tax. The Company has not determined the deferred tax liability associated with these unremitted earnings and basis differences, as such determination is not practicable. At December 31, 2022, foreign net operating loss carryforwards totaled $2.4 billion. Of this total, $900 million will expire in 1 to 20 years and $1.5 billion have no expiration date. A valuation allowance of approximately $131 million has been provided against such net operating loss carryforwards and other foreign deferred income tax balances. At December 31, 2022, there were no federal net operating loss carryforwards available to offset future taxable income. At December 31, 2022, foreign tax credit carryforwards of approximately $66 million were available to reduce possible future U.S. income taxes, which expire from 2023 to 2032. As a result of the 2017 Tax Cuts and Jobs Act ("Tax Reform Act"), the Company may no longer be able to utilize certain U.S. foreign tax credit carryforwards. A valuation allowance of $54 million has been established on a portion of deferred tax assets as of December 31, 2022. At December 31, 2022, a partial valuation allowance of $28 million has been provided against state tax credits that the Company may not be able to utilize. A partial valuation allowance of $42 million has been established for the Solutia, Inc. ("Solutia") state net operating loss carryforwards. The valuation allowance will be retained until there is sufficient positive evidence to conclude that it is more likely than not that the deferred tax assets will be realized, or the related statute expires. The Tax Reform Act eliminated the option to deduct research and development ("R&D") expenses in the period incurred and requires R&D expenses to be capitalized and amortized beginning in 2022. Amounts due to and from tax authorities as recorded in the Consolidated Statements of Financial Position: December 31, (Dollars in millions) 2022 2021 Miscellaneous receivables $ 35 $ 173 Payables and other current liabilities $ 95 $ 68 Other long-term liabilities 174 130 Total income taxes payable $ 269 $ 198 A reconciliation of the beginning and ending amounts of unrecognized tax benefits is as follows: (Dollars in millions) 2022 2021 2020 Balance at January 1 $ 200 $ 257 $ 202 Adjustments based on tax positions related to current year 11 6 14 Adjustments based on tax positions related to prior years 24 2 63 Lapse of statute of limitations — (45) (22) Settlements — (20) — Balance at December 31 (1) $ 235 $ 200 $ 257 (1) Approximately $229 million of the unrecognized tax benefits as of December 31, 2022, would, if recognized, impact the Company's effective tax rate. A reconciliation of the beginning and ending amounts of accrued interest related to unrecognized tax positions is as follows: (Dollars in millions) 2022 2021 2020 Balance at January 1 $ 13 $ 13 $ 13 Expense for interest, net of tax 9 9 5 Income for interest, net of tax — (9) (5) Balance at December 31 $ 22 $ 13 $ 13 Accrued penalties related to unrecognized tax positions were immaterial as of December 31, 2022, 2021, and 2020. Eastman files federal income tax returns in the U.S. and income tax returns in various state and foreign jurisdictions. The Company is no longer subject to U.S. federal income tax examinations by tax authorities for years before 2017. With few exceptions, Eastman is no longer subject to foreign, state, and local income tax examinations by tax authorities for years before 2015. Solutia and related subsidiaries are no longer subject to state and local income tax examinations for years before 2002. It is reasonably possible that, as a result of the resolution of federal, state, and foreign examinations and appeals, and the expiration of various statutes of limitation, unrecognized tax benefits could decrease within the next twelve months by up to $55 million. |
BORROWINGS
BORROWINGS | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
BORROWINGS | BORROWINGS December 31, (Dollars in millions) 2022 2021 Borrowings consisted of: 3.6% notes due August 2022 $ — $ 747 1.50% notes due May 2023 (1) 800 850 7 1/4% debentures due January 2024 198 198 7 5/8% debentures due June 2024 43 43 3.80% notes due March 2025 693 698 1.875% notes due November 2026 (1) 530 565 7.60% debentures due February 2027 196 195 4.5% notes due December 2028 495 494 4.8% notes due September 2042 494 494 4.65% notes due October 2044 877 875 2027 Term loan 499 — Commercial paper and short-term borrowings 326 — Total borrowings 5,151 5,159 Less: Borrowings due within one year 1,126 747 Long-term borrowings $ 4,025 $ 4,412 (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. In 2022, the Company repaid the 3.6% notes due August 2022, of which $550 million was repaid in second quarter 2022 primarily from proceeds from the 2027 Term Loan discussed below and $200 million was repaid in third quarter 2022 using available cash. The total consideration for this redemption is reported under financing activities on the Consolidated Statement of Cash Flows. Credit Facility, Term Loan, and Commercial Paper Borrowings The Company has access to a $1.50 billion revolving credit agreement (the "Credit Facility") that was amended and restated in December 2021. The amendments include the addition of sustainability-linked pricing terms and extending the maturity to December 2026, and resulted in a charge of $1 million for early debt extinguishment costs which was attributable to unamortized fees. 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 December 31, 2022 and 2021, the Company had no outstanding borrowings under the Credit Facility. At December 31, 2022, the Company's commercial paper borrowings were $326 million with a weighted average interest rate of 4.85%. At December 31, 2021, the Company had no outstanding commercial paper borrowings. In 2022, the Company borrowed $500 million under a five-year term loan agreement (the "2027 Term Loan"). The 2027 Term Loan had a variable interest rate of 5.55% as of December 31, 2022. Borrowings under the 2027 Term Loan are subject to interest at varying spreads above quoted market rates. The Credit Facility and 2027 Term Loan contain customary covenants, including requirements to maintain certain financial ratios, that determine the events of default, amounts available, and terms of borrowings. The Company was in compliance with all applicable covenants at both December 31, 2022 and 2021. Fair Value of Borrowings Eastman has classified its total borrowings at December 31, 2022 and 2021 under the fair value hierarchy as defined in the accounting policies in Note 1, "Significant Accounting Policies". The fair value for fixed-rate debt securities is based on quoted market prices for the same or similar debt instruments and is classified as Level 2. The fair value for the Company's other borrowings primarily under commercial paper and the 2027 Term Loan equals the carrying value and is classified as Level 2. At December 31, 2022 and 2021, the fair value of total borrowings was $4,888 million and $5,737 million, respectively. The Company had no borrowings classified as Level 1 or Level 3 as of December 31, 2022 and 2021. Subsequent Action |
DERIVATIVE AND NON-DERIVATIVE F
DERIVATIVE AND NON-DERIVATIVE FINANCIAL INSTRUMENTS | 12 Months Ended |
Dec. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities Disclosure [Text Block] | DERIVATIVE AND NON-DERIVATIVE FINANCIAL INSTRUMENTS Overview of Hedging Programs Eastman 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. Cash Flow Hedges Cash flow hedges are derivative instruments designated as and used to hedge the exposure to variability in expected future cash flows that are attributable to a particular risk. 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 change in the hedge instrument is reported as a component of AOCI located in the Consolidated Statements of Financial Position and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. Cash flows from cash flow hedges are classified as operating activities in the Consolidated Statements of Cash Flows. Foreign Currency Exchange Rate Hedging Eastman manufactures and sells its products in a number of countries throughout the world and, as a result, is exposed to changes in foreign currency exchange rates. To manage the volatility relating to these exposures, the Company nets the exposures on a consolidated basis to take advantage of natural offsets. To manage the remaining exposure, the Company enters into currency option and forward cash flow hedges to hedge probable anticipated, but not yet committed, export sales and purchase transactions expected within a rolling three year period and denominated in foreign currencies (principally the euro). Additionally, the Company, from time to time, enters into forward exchange contract cash flow hedges to hedge certain firm commitments denominated in foreign currencies. In fourth quarter 2022, the Company de-designated and monetized certain forward cash flow hedges. The resulting unrealized gain of $27 million was recorded in AOCI and will be recognized in earnings in 2023 through 2025 as the underlying forecasted transactions impact earnings. Commodity Hedging Certain raw material and energy sources used by Eastman, as well as sales of certain commodity products by the Company, are subject to price volatility caused by weather, supply and demand conditions, economic variables and other unpredictable factors. This volatility is primarily related to the market pricing of benzene, ethane, ethylene, natural gas, paraxylene, and propane. In order to mitigate expected fluctuations in market prices, from time to time, the Company enters into option and forward contracts and designates these contracts as cash flow hedges. The Company currently hedges commodity price risks using derivative financial instrument transactions within a rolling three year period. The Company weights its hedge portfolio more heavily in the first year with declining coverage over the remaining periods. Interest Rate Hedging Eastman's policy is to manage interest expense using a mix of fixed and variable rate debt. To manage interest rate risk effectively, the Company, from time to time, enters into cash flow interest rate derivative instruments, primarily forward starting swaps and treasury locks, to hedge the Company's exposure to movements in interest rates prior to anticipated debt offerings. These instruments are designated as cash flow hedges. In 2022, the Company settled the notional amount of $75 million associated with the 2022 forward starting interest rate swap, resulting in a cash gain of $13 million which is included as part of operating activities in the Consolidated Statements of Cash Flows. The recognized gain from cash flow hedges of $1 million is included within "Net interest expense" on the Consolidated Statements of Earnings, Comprehensive Income and Retained Earnings and the unrecognized gain of $12 million from cash flow hedges is included in AOCI on the Consolidated Statements of Financial Position. Fair Value Hedges Fair value hedges are defined as derivative or non-derivative instruments designated as and used to hedge the exposure to changes in the fair value of an asset or a liability or an identified portion thereof that is attributable to a particular risk. The derivative instruments that are designated and qualify as fair value hedges are reported as "Long-term borrowings" on the Consolidated Statements of Financial Position 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 fair value 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 recognized in earnings in the same period or periods during which the hedged transaction affects earnings. Cash flows from fair value hedges are classified as operating activities in the Consolidated Statements of Cash Flows. Interest Rate Hedging Eastman's policy is to manage interest expense using a mix of fixed and variable rate debt. To manage the Company's mix of fixed and variable rate debt effectively, from time to time, the Company enters into interest rate swaps in which the Company agrees to exchange the difference between fixed and variable interest amounts calculated by reference to an agreed upon notional principal amount. These swaps are designated as hedges of the fair value of the underlying debt obligations and the interest rate differential is reflected as an adjustment to interest expense over the life of the swaps. Net Investment Hedges Net investment hedges are defined as derivative or non-derivative instruments designated as and used to hedge the foreign currency exposure of the net investment in certain foreign operations. The net of the change in the hedge instrument and item being hedged for qualifying net investment hedges is reported as a component of the "Cumulative Translation Adjustment" ("CTA") within AOCI located in the Consolidated Statements of Financial Position. Cash flows from the CTA component are classified as operating activities in the Consolidated Statements of Cash Flows. Recognition in earnings of amounts previously recognized in CTA is limited to circumstances such as complete or substantially complete liquidation of the net investment in the hedged foreign operation. In the event of a complete or substantially complete liquidation of the net investment, cash flows from net investment hedges are classified as investing activities in the Consolidated Statements of Cash Flows. For derivative cross-currency interest rate swap net investment hedges, gains and losses representing hedge components excluded from the assessment of effectiveness are recognized in CTA within AOCI and recognized in earnings through the periodic swap interest accruals. The cross-currency interest rate swaps designated as net investment hedges are included as part of "Other long-term liabilities", "Other noncurrent assets", "Payables and other current liabilities", or "Other current assets" within the Consolidated Statements of Financial Position. Cash flows from excluded components are classified as operating activities in the Consolidated Statements of Cash Flows. In 2022, the Company terminated fixed-to-fixed cross-currency swaps designated to hedge a portion of its net investment in a euro functional currency denominated subsidiary against foreign currency fluctuations. The notional amount terminated was €266 million ($320 million) which was scheduled to mature in August 2022. The termination resulted in a $40 million gain recognized in CTA. The related cash flows were classified as investing activities in the Consolidated Statements of Cash Flows. Summary of Financial Position and Financial Performance of Hedging Instruments The following table presents the notional amounts outstanding at December 31, 2022 and 2021 associated with Eastman's hedging programs. Notional Outstanding December 31, 2022 December 31, 2021 Derivatives designated as cash flow hedges: Foreign Exchange Forward and Option Contracts (in millions) EUR/USD (in EUR) €573 €429 Commodity Forward and Collar Contracts Feedstock (in million barrels) — 1 Energy (in million british thermal units) 3 13 Interest rate swaps for the future issuance of debt (in millions) — $75 Derivatives designated as fair value hedges: Fixed-for-floating interest rate swaps (in millions) $75 $75 Derivatives designated as net investment hedges: Cross-currency interest rate swaps (in millions) EUR/USD (in EUR) €587 €853 Non-derivatives designated as net investment hedges: Foreign Currency Net Investment Hedges (in millions) EUR/USD (in EUR) €1,247 €1,246 Fair Value Measurements For additional information on fair value measurement, see Note 1, "Significant Accounting Policies". All the Company's derivative assets and liabilities are currently classified as Level 2. Level 2 fair value is based on estimates using standard pricing models. These standard pricing models use inputs that 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 counterparties to validate the accuracy of its standard pricing models. The Company had no derivatives classified as Level 1 or Level 3 as of December 31, 2022 or December 31, 2021. Counterparties to these derivative contracts are highly rated financial institutions which the Company believes carry minimal risk of nonperformance and the Company diversifies its positions among such counterparties to reduce its exposure to counterparty risk and credit losses. The Company monitors the creditworthiness of its counterparties on an ongoing basis. The Company did not realize a credit loss during the years ended December 31, 2022 or 2021. 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 does not have any cash collateral due under such agreements. The Company presents derivative contracts on a gross basis within the Consolidated Statements of Financial Position. The following table presents the financial assets and liabilities valued on a recurring and gross basis and includes where the financial assets and liabilities are located within the Consolidated Statements of Financial Position as of December 31, 2022 and 2021. The Financial Position and Fair Value Measurements of Hedging Instruments on a Gross Basis (Dollars in millions) Derivative Type Statements of Financial December 31, 2022 December 31, 2021 Derivatives designated as cash flow hedges: Commodity contracts Other current assets $ 3 $ 16 Commodity contracts Other noncurrent assets — 2 Foreign exchange contracts Other current assets — 12 Foreign exchange contracts Other noncurrent assets — 6 Forward starting interest rate swap contracts Other current assets — 5 Derivatives designated as fair value hedges: Fixed-for-floating interest rate swap Other current assets 1 1 Fixed-for-floating interest rate swap Other noncurrent assets — 1 Derivatives designated as net investment hedges: Cross-currency interest rate swaps Other current assets — 20 Cross-currency interest rate swaps Other noncurrent assets 72 35 Total Derivative Assets $ 76 $ 98 Derivatives designated as cash flow hedges: Commodity contracts Payables and other current liabilities $ 3 $ 1 Commodity contracts Other long-term liabilities — 1 Foreign exchange contracts Payables and other current liabilities 8 1 Foreign exchange contracts Other long-term liabilities 4 — Derivatives designated as fair value hedges: Fixed-for-floating interest rate swap Long-term borrowings 5 — Derivatives designated as net investment hedges: Cross-currency interest rate swaps Other long-term liabilities — 5 Total Derivative Liabilities $ 20 $ 8 Total Net Derivative Assets (Liabilities) $ 56 $ 90 In addition to the fair value associated with derivative instruments designated as cash flow hedges, fair value hedges, and net investment hedges noted in the table above, the Company had a carrying value of $1.3 billion and $1.4 billion associated with non-derivative instruments designated as foreign currency net investment hedges as of December 31, 2022 and 2021, respectively. The designated foreign currency-denominated borrowings are included as part of "Long-term borrowings" within the Consolidated Statements of Financial Position. As of December 31, 2022 and 2021, the following amounts were included within the Consolidated Statements of Financial Position related to cumulative basis adjustments for fair value hedges. (Dollars in millions) Carrying amount of the hedged liabilities Cumulative amount of fair value hedging loss adjustment included in the carrying amount of the hedged liability Line item in the Consolidated Statements of Financial Position in which the hedged item is included December 31, 2022 December 31, 2021 December 31, 2022 December 31, 2021 Borrowings due within one year $ — $ 697 $ — $ (2) Long-term borrowings 79 76 5 1 The following table presents the effect of the Company's hedging instruments on Other comprehensive income (loss), net of tax ("OCI") and financial performance for the twelve months ended December 31, 2022, 2021, and 2020: (Dollars in millions) Change in amount of after tax gain/(loss) recognized in OCI on Derivatives Pre-tax amount of gain/(loss) reclassified from AOCI into income December 31, December 31, Hedging Relationships 2022 2021 2020 2022 2021 2020 Derivatives in cash flow hedging relationships: Commodity contracts $ (11) $ 15 $ 17 $ 36 $ 20 $ (31) Foreign exchange contracts (2) 39 (36) 45 (7) 9 Forward starting interest rate and treasury lock swap contracts 10 9 8 (6) (9) (9) Non-derivatives in net investment hedging relationships (pre-tax): Net investment hedges 85 116 (130) — — — Derivatives in net investment hedging relationships (pre-tax): Cross-currency interest rate swaps 63 74 (88) — — — Cross-currency interest rate swaps excluded component (1) (12) 10 — — — The following table presents the effect of fair value and cash flow hedge accounting on the Consolidated Statements of Earnings, Comprehensive Income and Retained Earnings for 2022, 2021, and 2020. Location and Amount of Gain or (Loss) Recognized in Earnings on Fair Value and Cash Flow Hedging Relationships Twelve Months 2022 2021 2020 (Dollars in millions) Sales Cost of Sales Net interest expense Sales Cost of Sales Net interest expense Sales Cost of Sales Net interest expense Total amounts of income and expense line items presented in the Consolidated Statements of Earnings, Comprehensive Income and Retained Earnings in which the effects of fair value or cash flow hedges are recognized $ 10,580 $ 8,443 $ 182 $ 10,476 $ 7,976 $ 198 $ 8,473 $ 6,498 $ 210 The effects of fair value and cash flow hedging: Gain or (loss) on fair value hedging relationships: Interest contracts (fixed-for-floating interest rate swaps): Hedged items 2 2 1 Derivatives designated as hedging instruments (2) (2) (1) Gain or (loss) on cash flow hedging relationships: Interest contracts (forward starting interest rate and treasury lock swap contracts): Amount reclassified from AOCI into earnings (6) (9) (9) Commodity Contracts: Amount reclassified from AOCI into earnings 36 20 (31) Foreign Exchange Contracts: Amount reclassified from AOCI into earnings 45 (7) 9 The Company enters into foreign exchange derivatives denominated in multiple currencies which are transacted and settled in the same quarter. These derivatives are not designated as hedges due to the short-term nature and the gains or losses on these derivatives are marked-to-market in the line item "Other (income) charges, net" of the Consolidated Statements of Earnings, Comprehensive Income and Retained Earnings. The Company recognized a net loss of $11 million in 2022, no gain or loss in 2021, and a net loss of $1 million in 2020 on these derivatives. Pre-tax monetized positions and MTM gains and losses from raw materials and energy, currency, and certain interest rate hedges that were included in AOCI included gains of $134 million at December 31, 2022 and losses of $7 million at December 31, 2021. Gains in AOCI in 2022 compared to losses in 2021 are primarily as a result of an increase in foreign currency exchange rates, particularly the euro. If realized, approximately $10 million in pre-tax gains will be reclassified into earnings during the next 12 months, including foreign exchange contracts prospectively dedesignated and monetized in fourth quarter 2022. |
RETIREMENT PLANS
RETIREMENT PLANS | 12 Months Ended |
Dec. 31, 2022 | |
Retirement Benefits [Abstract] | |
RETIREMENT PLANS | RETIREMENT PLANS As described below, Eastman offers various postretirement benefits to its employees. Defined Contribution Plans Eastman sponsors a defined contribution employee stock ownership plan (the "ESOP"), which is a component of the Eastman Investment Plan and Employee Stock Ownership Plan ("EIP/ESOP"), under Section 401(a) of the Internal Revenue Code. Eastman made a contribution in February 2023 to the EIP/ESOP for substantially all U.S. employees equal to 5 percent of their eligible compensation for the 2022 plan year. Employees may allocate contributions to other investment funds within the EIP from the ESOP at any time without restrictions. Allocated shares in the ESOP totaled 1,871,624; 1,909,362; and 1,997,587 shares as of December 31, 2022, 2021, and 2020, respectively. Dividends on shares held by the EIP/ESOP are charged to retained earnings. All shares held by the EIP/ESOP are treated as outstanding in computing earnings per share ("EPS"). In 2006, the Company amended its EIP/ESOP to provide a Company match of 50 percent of the first 7 percent of an employee's compensation contributed to the plan for employees who are hired on or after January 1, 2007. Employees who are hired on or after January 1, 2007, are also eligible for the contribution to the ESOP as described above. Charges for domestic contributions to the EIP/ESOP were $81 million, $73 million, and $67 million for 2022, 2021, and 2020, respectively. Defined Benefit Pension Plans and Other Postretirement Benefit Plans Pension Plans Eastman maintains defined benefit pension plans that provide eligible employees with retirement benefits. Effective January 1, 2000, the Company's Eastman Retirement Assistance Plan, a U.S. defined benefit pension plan, was amended. Employees' accrued pension benefits earned prior to January 1, 2000 are calculated based on previous plan provisions using the employee's age, years of service, and final average compensation as defined in the plans. The amended plan uses a pension equity formula to calculate an employee's retirement benefits from January 1, 2000 forward. Benefits payable will be the combined pre-2000 and post-1999 benefits. Employees hired on or after January 1, 2007 are not eligible to participate in Eastman's U.S. defined benefit pension plans. Benefits are paid to employees from trust funds. Contributions to the trust funds are made as permitted by laws and regulations. The pension trust funds do not directly own any of the Company's common stock. Pension coverage for employees of Eastman's non-U.S. operations is provided, to the extent deemed appropriate, through separate plans. The Company systematically provides for obligations under such plans by depositing funds with trustees, under insurance policies, or by book reserves. Other Postretirement Benefit Plans Under its other postretirement benefit plans in the U.S., Eastman provides life insurance for eligible retirees hired prior to January 1, 2007. Eastman provided a subsidy for pre-Medicare health care and dental benefits to eligible retirees hired prior to January 1, 2007 that ended on December 31, 2021. Company funding is also provided for eligible Medicare retirees hired prior to January 1, 2007 with a health reimbursement arrangement. A few of the Company's non-U.S. operations have supplemental health benefit plans for certain retirees, the cost of which is not significant to the Company. Below is a summary balance sheet of the change in plan assets during 2022 and 2021, the funded status of the plans and amounts recognized in the Consolidated Statements of Financial Position. Summary of Changes Pension Plans Postretirement Benefit Plans 2022 2021 2022 2021 (Dollars in millions) U.S. Non-U.S. U.S. Non-U.S. Change in projected benefit obligation: Benefit obligation, beginning of year $ 1,892 $ 948 $ 2,050 $ 1,089 $ 665 $ 745 Service cost 25 11 26 19 — — Interest cost 45 14 37 12 14 12 Actuarial gain (328) (264) (49) (68) (127) (40) Curtailment gain — (3) — — — — Settlement (9) — (6) — — — Divestitures — — — (32) — (2) Plan participants' contributions — 1 — 1 2 9 Effect of currency exchange — (77) — (43) — — Federal subsidy on benefits paid — — — — — 1 Benefits paid (154) (28) (166) (30) (45) (60) Benefit obligation, end of year $ 1,471 $ 602 $ 1,892 $ 948 $ 509 $ 665 Change in plan assets: Fair value of plan assets, beginning of year $ 1,877 $ 924 $ 1,798 $ 938 $ 134 $ 144 Actual return on plan assets (312) (250) 247 31 (31) 7 Effect of currency exchange — (76) — (39) — — Company contributions 3 18 4 23 35 40 Reserve for third party contributions — — — — 11 (7) Plan participants' contributions — 1 — 1 2 9 Benefits paid (154) (28) (166) (30) (45) (60) Federal subsidy on benefits paid — — — — — 1 Settlements (9) — (6) — — — Fair value of plan assets, end of year $ 1,405 $ 589 $ 1,877 $ 924 $ 106 $ 134 Funded status at end of year $ (66) $ (13) $ (15) $ (24) $ (403) $ (531) Amounts recognized in the Consolidated Statements of Financial Position consist of: Other noncurrent assets $ — $ 23 $ 41 $ 42 $ 53 $ 62 Current liabilities (13) — (3) — (38) (38) Post-employment obligations (53) (36) (53) (66) (418) (555) Net amount recognized, end of year $ (66) $ (13) $ (15) $ (24) $ (403) $ (531) Accumulated benefit obligation $ 1,417 $ 578 $ 1,803 $ 910 Amounts recognized in accumulated other comprehensive income consist of: Prior service (credit) cost $ — $ (6) $ 1 $ (10) $ (37) $ (68) Actuarial gains in the projected benefit obligations for 2022 were primarily due to higher discount rates partially offset by changes in actuarial assumptions. Actuarial gains in the projected benefit obligations for 2021 were primarily due to higher discount rates. Information for pension plans with projected benefit obligations in excess of plan assets: (Dollars in millions) 2022 2021 U.S. Non-U.S. U.S. Non-U.S. Projected benefit obligation $ 1,471 $ 176 $ 175 $ 288 Fair value of plan assets 1,405 140 119 222 Information for pension plans with accumulated benefit obligations in excess of plan assets: (Dollars in millions) 2022 2021 U.S. Non-U.S. U.S. Non-U.S. Accumulated benefit obligation $ 245 $ 141 $ 161 $ 272 Fair value of plan assets 188 116 119 222 Postretirement benefit plans with accumulated benefit obligations in excess of plan assets are $456 million and $592 million at December 31, 2022 and 2021, respectively. The plans have no assets. Summary of Benefit Costs and Other Amounts Recognized in Other Comprehensive Income Pension Plans Postretirement Benefit Plans 2022 2021 2020 2022 2021 2020 (Dollars in millions) U.S. Non-U.S. U.S. Non-U.S. U.S. Non-U.S. Components of net periodic benefit (credit) cost: Service cost $ 25 $ 11 $ 26 $ 19 $ 25 $ 17 $ — $ — $ — Interest cost 45 14 37 12 57 15 14 12 19 Expected return on plan assets (128) (31) (126) (37) (135) (34) (4) (5) (5) Amortization of: Prior service (credit) cost 1 — — (1) 1 (1) (31) (37) (38) Mark-to-market pension and other postretirement benefits loss (gain), net (1) 112 10 (170) (62) 163 28 (103) (35) 49 Net periodic benefit (credit) cost $ 55 $ 4 $ (233) $ (69) $ 111 $ 25 $ (124) $ (65) $ 25 Other changes in plan assets and benefit obligations recognized in other comprehensive income: Curtailment gain $ — $ (4) $ — $ — $ — $ — $ — $ — $ — Current year prior service credit (cost) — — — — — 12 — — — Amortization of: Prior service (credit) cost 1 — — (1) 1 (1) (31) (37) (38) Total $ 1 $ (4) $ — $ (1) $ 1 $ 11 $ (31) $ (37) $ (38) (1) Includes curtailment triggered by the sale of the adhesives resins business which is included in "Other components of postemployment net" on the Consolidated Statements of Earnings, Comprehensive Income and Retained Earnings. Subsequent to the adhesives resins divestiture, the Company retained pension liabilities of certain plan participants while the status of the participants changed in a Non-U.S. pension plan which triggered a curtailment and an interim mark-to-market ("MTM") remeasurement of the impacted Non-U.S. pension plan's assets and liabilities. A curtailment gain of $7 million, including $3 million reduction in the pension benefit obligation and $4 million of prior service credits recognized immediately, and a MTM gain of $3 million were recognized in 2022. Settlements are triggered in a plan when distributions exceed the sum of service cost and interest cost of the respective plan. Lump sum payments from a U.S. pension plan resulted in a plan settlement in second quarter 2022. The settlement was not material. However, the settlement triggered an interim remeasurement of the impacted U.S. pension plan's assets and liabilities and, as such, the Company recognized a MTM loss of $7 million in 2022. Plan Assumptions The assumptions used to develop the projected benefit obligation for Eastman's significant U.S. and non-U.S. defined benefit pension plans and U.S. postretirement benefit plans are provided in the following tables. Pension Plans Postretirement Benefit Plans 2022 2021 2020 2022 2021 2020 Weighted-average assumptions used to determine benefit obligations for years ended December 31: U.S. Non-U.S. U.S. Non-U.S. U.S. Non-U.S. Discount rate 5.58 % 4.27 % 2.88 % 1.57 % 2.48 % 1.08 % 5.55 % 2.83 % 2.38 % Interest crediting rate 5.48 % N/A 5.50 % N/A 5.50 % N/A N/A N/A N/A Rate of compensation increase 3.00 % 3.04 % 3.00 % 3.00 % 2.75 % 2.94 % N/A N/A N/A Health care cost trend Initial 6.00 % 6.00 % 6.25 % Decreasing to ultimate trend of 5.00 % 5.00 % 5.00 % in year 2030 2026 2026 Weighted-average assumptions used to determine net periodic cost for years ended December 31: U.S. Non-U.S. U.S. Non-U.S. U.S. Non-U.S. Discount rate 2.88 % 1.57 % 2.48 % 1.08 % 3.25 % 1.56 % 2.83 % 2.39 % 3.21 % Discount rate for service cost 2.95 % 1.31 % 2.57 % 1.08 % 3.31 % 1.56 % N/A 1.90 % 2.92 % Discount rate for interest cost 2.46 % 1.57 % 1.79 % 1.08 % 2.83 % 1.56 % 2.35 % 1.74 % 2.80 % Expected return on assets 7.07 % 3.81 % 7.29 % 4.04 % 7.37 % 4.26 % 3.50 % 3.75 % 3.75 % Rate of compensation increase 3.00 % 3.00 % 2.75 % 2.94 % 3.25 % 2.94 % N/A N/A 3.25 % Interest crediting rate 5.50 % N/A 5.50 % N/A 5.52 % N/A N/A N/A N/A Health care cost trend Initial 6.00 % 6.25 % 6.50 % Decreasing to ultimate trend of 5.00 % 5.00 % 5.00 % in year 2026 2026 2026 The Company calculates service and interest cost components of net periodic benefit costs for its significant defined benefit pension and other postretirement benefit plans by applying the specific spot rates along the yield curve to the plans' projected cash flows. The fair value of plan assets for the U.S. pension plans at December 31, 2022 and 2021 was $1.4 billion and $1.9 billion, respectively, while the fair value of plan assets at December 31, 2022 and 2021 for non-U.S. pension plans was $589 million and $924 million, respectively. At December 31, 2022 and 2021, the expected weighted-average long-term rate of return on U.S. pension plan assets was 6.62 percent and 7.07 percent, respectively. The expected weighted-average long-term rate of return on non-U.S. pension plans assets was 3.86 percent and 3.81 percent at December 31, 2022 and 2021, respectively. Plan Assets The following tables reflect the fair value of the defined benefit pension plans assets. (Dollars in millions) Fair Value Measurements at December 31, 2022 Description Total Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs Pension Assets: U.S. Non-U.S. U.S. Non-U.S. U.S. Non-U.S. U.S. Non-U.S. Cash and Cash Equivalents (1) $ 27 $ 46 $ 27 $ 46 $ — $ — $ — $ — Public Equity - United States (2) 4 — 4 — — — — — Other Investments (3) — 45 — — — — — 45 Total Assets at Fair Value $ 31 $ 91 $ 31 $ 46 $ — $ — $ — $ 45 Investments Measured at Net Asset Value (4) 1,374 498 Total Assets $ 1,405 $ 589 (Dollars in millions) Fair Value Measurements at December 31, 2021 Description Total Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs Pension Assets: U.S. Non-U.S. U.S. Non-U.S. U.S. Non-U.S. U.S. Non-U.S. Cash and Cash Equivalents (1) $ 45 $ 37 $ 45 $ 37 $ — $ — $ — $ — Public Equity - United States (2) 3 — 3 — — — — — Other Investments (3) — 59 — — — — — 59 Total Assets at Fair Value $ 48 $ 96 $ 48 $ 37 $ — $ — $ — $ 59 Investments Measured at Net Asset Value (4) 1,829 828 Total Assets $ 1,877 $ 924 (1) Cash and Cash Equivalents: Funds generally invested in actively managed collective trust funds or interest bearing accounts. (2) Public Equity - United States: Common stock equity securities which are primarily valued using a market approach based on the quoted market prices. (3) Other Investments: Primarily consist of insurance contracts which are generally valued using a crediting rate that approximates market returns and investments in underlying securities whose market values are unobservable and determined using pricing models, discounted cash flow methodologies, or similar techniques. (4) Investments Measured at Net Asset Value: The underlying debt, public equity, and public real asset investments in this category are generally held in common trust funds, which are either actively or passively managed investment vehicles, that are valued at the net asset value per unit/share multiplied by the number of units/shares held as of the measurement date. The other alternative investments in this category are valued under the practical expedient method which is based on the most recently reported net asset value provided by the management of each private investment fund, adjusted as appropriate, for any lag between the date of the financial reports and the measurement date. The following tables reflect the fair value of the postretirement benefit plan assets. The postretirement benefit plan is for the voluntary employees' beneficiary association ("VEBA") trust the Company assumed as part of the Solutia acquisition. (Dollars in millions) Fair Value Measurements at Description Total Fair Value Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Postretirement Benefit Plan Assets: Cash and Cash Equivalents (1) $ 5 $ 5 $ — $ — Debt (2) : Fixed Income (U.S.) 62 — 62 — Fixed Income (Non-U.S.) 21 — 21 — Total $ 88 $ 5 $ 83 $ — (Dollars in millions) Fair Value Measurements at Description Total Fair Value Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Postretirement Benefit Plan Assets: Cash and Cash Equivalents (1) $ — $ — $ — $ — Debt (2) : Fixed Income (U.S.) 79 — 79 — Fixed Income (Non-U.S.) 29 — 29 — Total $ 108 $ — $ 108 $ — (1) Cash and Cash Equivalents: Funds generally invested in actively managed collective trust funds or interest bearing accounts. (2) Debt: The fixed income securities are primarily valued upon a market approach, using matrix pricing and considering a security's relationship to other securities for which quoted prices in an active market may be available, or an income approach, converting future cash flows to a single present value amount. Inputs used in developing fair value estimates include reported trades, broker quotes, benchmark yields, and base spreads. The Company valued assets with unobservable inputs (Level 3), primarily insurance contracts, using a crediting rate that approximates market returns and investments in underlying securities whose market values are unobservable and determined using pricing models, discounted cash flow methodologies, or similar techniques. Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Other Investments (1) (Dollars in millions) Non-U.S. Pension Plans Balance at December 31, 2020 $ 68 Unrealized losses (9) Balance at December 31, 2021 59 Unrealized losses (14) Balance at December 31, 2022 $ 45 (1) Primarily consists of insurance contracts. The following table reflects the target allocation for the Company's U.S. and non-U.S. pension and postretirement benefit plans assets for 2023 and the asset allocation at December 31, 2022 and 2021, by asset category. U.S. Pension Plans Non-U.S. Pension Plans Postretirement Benefit Plan 2023 Target Allocation Plan Assets at Plan Assets at 2023 Target Allocation Plan Assets at Plan Assets at 2023 Target Allocation Plan Assets at Plan Assets at Asset category Equity securities 39% 36% 38% 21% 20% 22% —% —% —% Debt securities 38% 39% 43% 60% 62% 59% 100% 100% 100% Real estate 8% 7% 3% 4% 4% 4% —% —% —% Other investments (1) 15% 18% 16% 15% 14% 15% —% —% —% Total 100% 100% 100% 100% 100% 100% 100% 100% 100% (1) U.S. primarily consists of private equity and natural resource and energy related limited partnership investments and public real assets. Non-U.S. primarily consists of annuity contracts and alternative investments. Investment Strategy Eastman's investment strategy for its defined benefit pension plans is to maximize the long-term rate of return on plan assets within an acceptable level of risk in order to meet or exceed the plan's actuarially assumed long-term rate of return and to minimize the cost of providing pension benefits. A periodic asset/liability study is conducted in order to assist in the determination and, if necessary, modification of the appropriate long-term investment policy for the plan. The investment policy establishes a target allocation range for each asset class and the fund is managed within those ranges. The plans use a number of investment approaches including investments in equity, real estate, and fixed income funds in which the underlying securities are marketable in order to achieve this target allocation. The plans also invest in private equity and other funds. Diversification is created through investments across various asset classes, geographies, fund managers, and individual securities. This investment process is designed to provide for a well-diversified portfolio with no significant concentration of risk. The investment process is monitored by an investment committee that includes senior management. Eastman's investment strategy for its VEBA trust is to invest in intermediate-term, well diversified, high quality investment instruments, with a primary objective of capital preservation. The expected rate of return for all plans was determined primarily by modeling the expected long-term rates of return for the categories of investments held by the plans and the targeted allocation percentage against various potential economic scenarios. The Company made no contributions to its U.S. defined benefit pension plans in 2022 or 2021. For 2023 calendar year, there are no minimum required cash contributions for the U.S. defined benefit pension plans under the Employee Retirement Income Security Act of 1974, as amended, and the Internal Revenue Code of 1986, as amended. Benefit payments are made using a combination of plan assets and cash payments. Most of the Company's pension plans have plan assets that predominately cover pension benefit obligations. The estimated future benefit payments, reflecting expected future service, as appropriate, are as follows: Pension Plans Postretirement (Dollars in millions) U.S. Non-U.S. 2023 $ 230 $ 28 $ 47 2024 123 26 47 2025 122 28 47 2026 121 31 46 2027 126 35 45 2028-2032 604 187 208 |
LEASES AND OTHER COMMITMENTS LE
LEASES AND OTHER COMMITMENTS LEASES AND OTHER COMMITMENTS | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Commitments Disclosure [Text Block] | LEASES AND OTHER COMMITMENTS Leases There are two types of leases: financing and operating. Both types of leases have associated right-to-use assets and lease liabilities that are valued at the net present value of the lease payments and recognized on the Consolidated Statements of Financial Position. The discount rate used in the measurement of a right-to-use asset and lease liability is the rate implicit in the lease whenever that rate is readily determinable. If the rate implicit in the lease is not readily determinable, the collateralized incremental borrowing rate is used. The Company elected the accounting policy not to apply the recognition and measurement requirements to short-term leases with a term of 12 months or less and do not include a bargain purchase option. The Company has operating leases, as a lessee, with customary terms that do not include: significant variable lease payments; significant reasonably certain extensions or options required to be included in the lease term; restrictions; or other covenants for real property, rolling stock, and machinery and equipment. Real property leases primarily consist of office space and rolling stock leases primarily for railcars and fleet vehicles. At December 31, 2022 and 2021, right-to-use assets for operating leases totaled $ 211 million 216 million As of December 31, 2022, reconciliation of lease payments and operating lease liabilities is provided below: (Dollars in millions) Operating lease liabilities 2023 $ 58 2024 46 2025 37 2026 26 2027 17 2028 and beyond 38 Total lease payments 222 Less: amounts of lease payments representing interest 20 Present value of future lease payments 202 Less: current obligations under leases 52 Long-term lease obligations $ 150 As of December 31, 2021, reconciliation of lease payments and operating lease liabilities is provided below: (Dollars in millions) Operating lease liabilities 2022 $ 55 2023 44 2024 31 2025 24 2026 18 2027 and beyond 53 Total lease payments 225 Less: amounts of lease payments representing interest 18 Present value of future lease payments 207 Less: current obligations under leases 50 Long-term lease obligations $ 157 The Company has operating leases, primarily leases for railcars, with terms that require the Company to guarantee a portion of the residual value of the leased assets upon termination of the lease that will expire beginning third quarter 2023. 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. Lease costs during the period and other information is provided below: (Dollars in millions) 2022 2021 2020 Lease costs: Operating lease costs $ 67 $ 71 $ 73 Short-term lease costs 45 40 37 Sublease income (13) (4) (4) Total $ 99 $ 107 $ 106 December 31, (Dollars in millions) 2022 2021 Other operating lease information: Cash paid for amounts included in the measurement of lease liabilities $ 67 $ 69 Right-to-use assets obtained in exchange for new lease liabilities $ 69 $ 110 Weighted-average remaining lease term, in years 6 6 Weighted-average discount rate 3.2 % 2.7 % Debt and Other Commitments Eastman's obligations are summarized in the following table. (Dollars in millions) Payments Due for Period Debt Securities Credit Facilities and Other Interest Payable Purchase Obligations Operating Leases Other Liabilities Total 2023 $ 800 $ 326 $ 180 $ 166 $ 58 $ 207 $ 1,737 2024 241 — 162 170 46 80 699 2025 693 — 143 140 37 88 1,101 2026 530 — 131 118 26 86 891 2027 196 499 97 112 17 102 1,023 2028 and beyond 1,866 — 1,091 2,366 38 912 6,273 Total $ 4,326 $ 825 $ 1,804 $ 3,072 $ 222 $ 1,475 $ 11,724 Estimated future payments of debt securities assumes the repayment of principal upon stated maturity, and actual amounts and the timing of such payments may differ materially due to repayment or other changes in the terms of such debt prior to maturity. Eastman had various purchase obligations at December 31, 2022 totaling approximately $3.1 billion over a period of approximately 30 years for materials, supplies, and energy incident to the ordinary conduct of business. Amounts in other liabilities represent the current estimated cash payments required to be made by the Company primarily for pension and other postretirement benefits, accrued compensation benefits, environmental loss contingency estimates, uncertain tax liabilities, and commodity and foreign exchange hedging in the periods indicated. Due to uncertainties in the timing of the effective settlement of tax positions with respect to taxing authorities, management is unable to determine the timing of payments related to uncertain tax liabilities and these amounts are included in the "2028 and beyond" line item. The amount and timing of pension and other postretirement benefit payments included in other liabilities is dependent upon interest rates, health care cost trends, actual returns on plan assets, retirement and attrition rates of employees, continuation or modification of the benefit plans, and other factors. Such factors can significantly impact the amount and timing of any future contributions by the Company. Excess contributions are periodically made by management in order to keep the plans' funded status above 80 percent under the funding provisions of the Pension Protection Act to avoid partial benefit restrictions on accelerated forms of payment. The Company's U.S. defined benefit pension plans are not currently under any benefit restrictions. See Note 11, "Retirement Plans", for more information regarding pension and other postretirement benefit obligations. The resolution of uncertainties related to environmental matters included in other liabilities may have a material adverse effect on the Company's consolidated results of operations in the period recognized, however, 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. See "Environmental Costs" in Note 1, "Significant Accounting Policies", and see Note 13, "Environmental Matters and Asset Retirement Obligations", for more information regarding outstanding environmental matters and asset retirement obligations. |
ENVIRONMENTAL MATTERS
ENVIRONMENTAL MATTERS | 12 Months Ended |
Dec. 31, 2022 | |
Environmental Matters [Abstract] | |
ENVIRONMENTAL MATTERS | ENVIRONMENTAL MATTERS AND ASSET RETIREMENT OBLIGATIONS Certain Eastman manufacturing facilities generate hazardous and nonhazardous wastes, of which the treatment, storage, transportation, and disposal 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 certain 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". The resolution of uncertainties related to environmental matters may have a material adverse effect on the Company's consolidated financial statements and related disclosures in the period recognized. However, because of the availability of legal defenses, the Company's preliminary assessment of actions that may be required, and the extended period of time that the obligations are expected to be satisfied, management does not believe that the Company's liability for these environmental matters, individually or in the aggregate, will have a material adverse effect on the Company's future overall financial statements and related disclosures. Environmental Remediation and Environmental Asset Retirement Obligations The Company's net environmental reserve for environmental contingencies, including remediation costs and asset retirement obligations, is included as part of "Other noncurrent assets", "Payables and other current liabilities", and "Other long-term liabilities" on the Consolidated Statements of Financial Position as follows: (Dollars in millions) December 31, 2022 2021 Environmental contingencies, current $ 10 $ 20 Environmental contingencies, long-term 264 261 Total $ 274 $ 281 Environmental Remediation Estimated future environmental expenditures for undiscounted remediation costs ranged from the best estimate or minimum of $245 million to the maximum of $457 million and from the best estimate or minimum of $253 million to the maximum of $473 million at December 31, 2022 and 2021, respectively. The best estimate or minimum estimated future environmental expenditures are considered to be probable and reasonably estimable and include the amounts recognized at December 31, 2022. Costs of certain remediation projects included in the environmental reserve are subject to a cost-sharing arrangement with Monsanto Company ("Monsanto") under the provisions of the Amended and Restated Settlement Agreement effective February 28, 2008 (the "Effective Date"), into which Solutia entered with Monsanto upon its emergence from bankruptcy (the "Monsanto Settlement Agreement"). Under the provisions of the Monsanto Settlement Agreement, Solutia, which became a wholly-owned subsidiary of Eastman on July 2, 2012, shares responsibility with Monsanto for remediation at certain locations outside of the boundaries of plant sites in Anniston, Alabama and Sauget, Illinois (the "Shared Sites"). Solutia is responsible for the funding of environmental liabilities at the Shared Sites up to a total of $325 million from the Effective Date. If remediation costs for the Shared Sites exceed this amount, such costs will thereafter be shared equally between Solutia and Monsanto. Including payments by Solutia prior to its acquisition by Eastman, $117 million had been paid for costs at the Shared Sites as of December 31, 2022. As of December 31, 2022, an additional $200 million has been recognized for estimated future remediation costs at the Shared Sites, over a period of approximately 30 years. 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 recognized in "Cost of sales" and "Other (income) charges, net" on the Consolidated Statements of Earnings, Comprehensive Income and Retained Earnings. Changes in the reserves for environmental remediation liabilities during full year 2022 and full year 2021 are summarized below: (Dollars in millions) Environmental Remediation Liabilities Balance at December 31, 2020 $ 257 Changes in estimates recognized in earnings and other 9 Cash reductions (13) Balance at December 31, 2021 253 Changes in estimates recognized in earnings and other 6 Cash reductions (14) Balance at December 31, 2022 $ 245 Environmental Asset Retirement Obligations 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. Environmental asset retirement obligations consist of primarily closure and post-closure costs. For sites that have environmental asset retirement obligations, the best estimate recognized to date for these environmental asset retirement obligation costs was $29 million and $28 million at December 31, 2022 and December 31, 2021, respectively. Other Eastman's cash expenditures related to environmental protection and improvement were $300 million, $281 million, and $265 million in 2022, 2021, and 2020, respectively, and include operating costs associated with environmental protection equipment and facilities, engineering costs, and construction costs. The cash expenditures above include environmental capital expenditures of approximately $60 million, $38 million, and $42 million in 2022, 2021, and 2020, respectively. 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 in Pace, Florida and Oulu, Finland. These non-environmental asset retirement obligations were $51 million at both December 31, 2022 and 2021, and are included in "Other long-term liabilities" on the Consolidated Statements of Financial Position. |
LEGAL MATTERS
LEGAL MATTERS | 12 Months Ended |
Dec. 31, 2022 | |
Legal Matters [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | LEGAL MATTERSFrom time to time, Eastman 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 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 position, results of operations, or cash flows. |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 12 Months Ended |
Dec. 31, 2022 | |
Stockholders' Equity Note [Abstract] | |
STOCKHOLDERS' EQUITY | STOCKHOLDERS' EQUITY A reconciliation of the changes in stockholders' equity for 2022, 2021, and 2020 is provided below: (Dollars in millions) Common Stock at Par Value Additional Paid-in Capital Retained Earnings Accumulated Other Comprehensive Income (Loss) Treasury Stock at Cost Total Eastman Stockholders' Equity Noncontrolling Interest Total Equity Balance at December 31, 2019 $ 2 $ 2,105 $ 7,965 $ (214) $ (3,900) $ 5,958 $ 74 $ 6,032 Net Earnings — — 478 — — 478 11 489 Cash Dividends (1) — — (363) — — (363) — (363) Other Comprehensive (Loss) — — — (59) — (59) — (59) Share-Based Compensation Expense (2) — 44 — — — 44 — 44 Stock Option Exercises — 36 — — — 36 — 36 Other (3) — (11) — — — (11) 2 (9) Share Repurchase — — — — (60) (60) — (60) Distributions to noncontrolling interest — — — — — — (2) (2) Balance at December 31, 2020 $ 2 $ 2,174 $ 8,080 $ (273) $ (3,960) $ 6,023 $ 85 $ 6,108 Net Earnings — — 857 — — 857 10 867 Cash Dividends (1) — — (380) — — (380) — (380) Other Comprehensive Income — — — 91 — 91 — 91 Share-Based Compensation Expense (2) — 70 — — — 70 — 70 Stock Option Exercises — 62 — — — 62 — 62 Other (3) — (19) — — — (19) 3 (16) Share Repurchase (4) — (100) — — (900) (1,000) — (1,000) Distributions to noncontrolling interest — — — — — — (14) (14) Balance at December 31, 2021 $ 2 $ 2,187 $ 8,557 $ (182) $ (4,860) $ 5,704 $ 84 $ 5,788 Net Earnings — — 793 — — 793 3 796 Cash Dividends (1) — — (377) — — (377) — (377) Other Comprehensive Income — — — (23) — (23) — (23) Share-Based Compensation Expense (2) — 69 — — — 69 — 69 Stock Option Exercises — 9 — — — 9 — 9 Other (3) — (20) — — — (20) (4) (24) Share Repurchase (5) — 70 — — (1,072) (1,002) — (1,002) Balance at December 31, 2022 $ 2 $ 2,315 $ 8,973 $ (205) $ (5,932) $ 5,153 $ 83 $ 5,236 (1) Cash dividends includes cash dividends paid and dividends declared, but unpaid. (2) Share-based compensation expense is the fair value of share-based awards. (3) Additional paid-in capital includes value of shares withheld for employees' taxes on vesting of share-based compensation awards. (4) Additional paid-capital in 2021 included payment for repurchase of shares under the 2021 ASR which had not yet been delivered. (5) Additional paid-in capital in 2022 included the final settlement of the 2021 ASR and the favorable settlement of the second quarter 2022 accelerated share repurchase program (the "2022 ASR"). Eastman is authorized to issue 400 million shares of all classes of stock, of which 50 million may be preferred stock, par value $0.01 per share, and 350 million may be common stock, par value $0.01 per share. The Company declared dividends per share of $3.07 in 2022, $2.83 in 2021, and $2.67 in 2020. In 1997 the Company established a benefit security trust to provide a degree of financial security for unfunded obligations under certain unfunded plans. A warrant to purchase up to 6 million shares of par value common stock of the Company was contributed to the trust. The warrant, which remains outstanding, is exercisable by the trustee if the Company does not meet certain funding obligations, which obligations would be triggered by certain occurrences, including a change in control or potential change in control, as defined, or failure by the Company to meet its payment obligations under certain covered unfunded plans. Such warrant is excluded from the computation of diluted EPS because the conditions upon which the warrant becomes exercisable have not been met. In February 2018, the Company's Board of Directors authorized the repurchase of up to $2 billion of the Company's outstanding common stock at such times, in such amounts, and on such terms, as determined by management to be in the best interest of the Company and its stockholders (the "2018 authorization"). The Company completed the 2018 authorization in May 2022, acquiring a total of 19,915,370 shares. In December 2021, the Company's Board of Directors authorized the additional repurchase of up to $2.5 billion of the Company's outstanding common stock at such times, in such amounts, and on such terms, as determined by management to be in the best interest of the Company and its stockholders (the "2021 authorization"). As of December 31, 2022, a total of 6,743,883 shares have been repurchased under the 2021 authorization for $635 million. Both dividends and share repurchases are key strategies employed by the Company to return value to its stockholders. In fourth quarter 2021, the Company entered into an accelerated share repurchase program ("2021 ASR") to purchase $500 million of the Company's common stock under the 2018 authorization. In exchange for upfront payment totaling $500 million, the financial institutions committed to deliver shares during the 2021 ASR's purchase period, which was settled in first quarter 2022. The total number of shares ultimately delivered was determined at the end of the applicable purchase period based on the volume-weighted average price of the Company's stock during the term of the 2021 ASR, less a discount. Approximately 80 percent of the expected shares repurchased under the 2021 ASR were delivered in fourth quarter 2021 and the remaining shares were delivered in first quarter 2022. In second quarter 2022, the Company entered into an accelerated share repurchase program ("2022 ASR") to purchase $500 million of the Company's common stock under the Board approved authorizations. In exchange for upfront payment totaling $500 million, the financial institutions committed to deliver shares during the 2022 ASR's purchase period, which was settled in third quarter 2022. The total number of shares ultimately delivered was determined at the end of the applicable purchase period based on the volume-weighted average price of the Company's stock during the term of the 2022 ASR, less a discount. Approximately 80 percent of the expected shares repurchased under the 2022 ASR were delivered in second quarter 2022 and the remaining shares were delivered in third quarter 2022. During 2022, the Company repurchased 10,710,259 shares of common stock for $1,102 million, which included $100 million from the settlement of the 2021 ASR. During 2021 and 2020, the Company repurchased shares of common stock of 8,061,779 and 1,134,052, respectively, for a cost of approximately $900 million and $60 million, respectively. The Company's charitable foundation held 50,798 issued and outstanding shares of the Company's common stock at December 31, 2022, 2021, and 2020 which are included in treasury stock in the Consolidated Statements of Financial Position and excluded from calculations of diluted EPS. The following table sets forth the computation of basic and diluted EPS: For years ended December 31, (In millions, except per share amounts) 2022 2021 2020 Numerator Net earnings attributable to Eastman $ 793 $ 857 $ 478 Denominator Weighted average shares used for basic EPS 123.5 134.9 135.5 Dilutive effect of stock options and other award plans 1.4 2.2 1.0 Weighted average shares used for diluted EPS 124.9 137.1 136.5 EPS (1) Basic $ 6.42 $ 6.35 $ 3.53 Diluted $ 6.35 $ 6.25 $ 3.50 (1) EPS is calculated using whole dollars and shares. Shares underlying stock options excluded from the 2022, 2021, and 2020 calculations of diluted EPS were 1,398,110, 150,781, and 2,424,826, respectively, because the grant price of these options was greater than the average market price of the Company's common stock and the effect of including them in the calculation of diluted EPS would have been antidilutive. Shares of common stock issued, including shares held in treasury, are presented below: For years ended December 31, 2022 2021 2020 Balance at beginning of year 221,809,309 220,641,506 219,638,646 Issued for employee compensation and benefit plans 539,248 1,167,803 1,002,860 Balance at end of year 222,348,557 221,809,309 220,641,506 Accumulated Other Comprehensive Income (Loss) Cumulative Translation Adjustment Benefit Plans Unrecognized Prior Service Credits Unrealized Gains (Losses) on Cash Flow Hedges Unrealized Losses on Investments Accumulated Other Comprehensive Income (Loss) Balance at December 31, 2020 $ (293) $ 87 $ (66) $ (1) $ (273) Period change 56 (28) 63 — 91 Balance at December 31, 2021 (237) 59 (3) (1) (182) Period change 7 (27) (3) — (23) Balance at December 31, 2022 $ (230) $ 32 $ (6) $ (1) $ (205) Amounts of other comprehensive income (loss) are presented net of applicable taxes. Eastman records 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 recognized on the cumulative translation adjustment of other subsidiaries outside the United States, as the cumulative translation adjustment is considered to be a component of indefinitely invested, unremitted earnings of these foreign subsidiaries. Components of total other comprehensive income (loss) recorded in the Consolidated Statements of Earnings, Comprehensive Income and Retained Earnings are presented below, before tax and net of tax effects: For years ended December 31, 2022 2021 2020 (Dollars in millions) Before Tax Net of Tax Before Tax Net of Tax Before Tax Net of Tax Change in cumulative translation adjustment $ 7 $ 7 $ 56 $ 56 $ (29) $ (29) Defined benefit pension and other postretirement benefit plans: Prior service credit arising during the period — — — — 12 9 Amortization of unrecognized prior service credits included in net periodic costs (34) (27) (38) (28) (38) (28) Derivatives and hedging: Unrealized gain (loss) during period 71 53 88 66 (46) (34) Reclassification adjustment for (gains) losses included in net income, net (75) (56) (4) (3) 31 23 Total other comprehensive income (loss) $ (31) $ (23) $ 102 $ 91 $ (70) $ (59) For additional information regarding the impact of reclassifications into earnings, refer to Note 10, "Derivative and Non-Derivative Financial Instruments", and Note 11, "Retirement Plans". |
ASSET IMPAIRMENTS AND RESTRUCTU
ASSET IMPAIRMENTS AND RESTRUCTURING | 12 Months Ended |
Dec. 31, 2022 | |
Restructuring Costs and Asset Impairment Charges [Abstract] | |
ASSET IMPAIRMENTS AND RESTRUCTURING | ASSET IMPAIRMENTS AND RESTRUCTURING CHARGES, NET Components of asset impairments and restructuring charges, net, are presented below: For years ended December 31, (Dollars in millions) 2022 2021 2020 Tangible Asset Impairments CI & AFP - Singapore (1) $ — $ 3 $ — Site optimizations Other - Tire additives (2) — 12 5 AM - Advanced interlayers (3) — 1 — AM - Performance films (4) — — 5 AFP - Animal nutrition (5) — — 3 Discontinuation of growth initiatives (6) — — 8 — 16 21 Loss (Gain) on Sale of Previously Impaired Assets Site optimizations AM - Advanced interlayers (3) 16 — — Other - Tire additives (2) (1) — — AFP - Animal nutrition (5) — (1) — 15 (1) — Intangible Asset Impairments Other - Tradenames (7) — — 123 AFP - Customer relationships (8) — — 2 — — 125 Severance Charges Cost reduction and business improvement actions (9) 22 1 47 CI & AFP - Singapore (1) — — 6 Site optimizations Other - Tire additives (2) — — 3 AM - Advanced interlayers (3) — 1 5 AM - Performance films (4) 1 — 3 AFP - Animal nutrition (5) — — 1 Fibers - Acetate Yarn (10) 7 — — 30 2 65 Other Restructuring Costs Cost reduction and business improvement actions (9) — — 14 Discontinuation of growth initiatives contract termination fees (6) — — 4 CI & AFP - Singapore (1) 3 17 — Site optimizations Other - Tire additives (2) — 6 — AM - Advanced interlayers (3) 2 5 — AM - Performance films (4) — 2 — AFP - Animal nutrition (5) — — (2) Fibers - Acetate Yarn (10) 2 — — 7 30 16 Total $ 52 $ 47 $ 227 (1) Site closure costs of $3 million in 2022 in the CI segment, asset impairment charges in 2021 of $2 million and $1 million in the CI segment and the AFP segment, respectively, and severance charges in 2020 of $5 million and $1 million in the CI segment and the AFP segment, respectively, and site closure costs, including contract termination fees, in 2021 of $14 million and $3 million in the CI segment and the AFP segment, respectively, resulting from closure of the Singapore manufacturing site. (2) Asset impairment charges of $8 million in 2021 for assets associated with divested rubber additives. Gain on sale of previously impaired assets in 2022, asset impairment charges of $4 million, and site closure costs in 2021, from the previously reported closure of a tire additives manufacturing facility in Asia Pacific as part of site optimization. Fixed asset impairment charges and severance charges in 2020 from the closure of a tire additives manufacturing facility in Asia Pacific as part of site optimization. (3) Asset impairment charges, loss on transfer of previously impaired assets to a third party, severance charges, and site closure costs in the Advanced Materials ("AM") segment due to the closure of an advanced interlayers manufacturing facility in North America as part of site optimization. In addition, accelerated depreciation of $4 million and $8 million was recognized in "Cost of sales" in the Consolidated Statements of Earnings, Comprehensive Income and Retained Earnings in 2021 and 2020, respectively, related to the closure of this facility. (4) Severance charges in 2022 for the closure of a performance films research and development facility, fixed asset impairments, severance charges, and site closure costs in 2021 and 2020 from the closure of a performance films manufacturing facility in North America as part of site optimization. (5) Fixed asset impairments, severance charges, and other restructuring gains in 2020 in from the closure of an animal nutrition manufacturing facility in Asia Pacific as part of site optimization, and in 2021 a gain from the sale of the previously impaired assets. (6) Fixed asset impairments and contract termination fees resulting from management's decision to discontinue growth initiatives for polyester based microfibers, including Avra ™ performance fibers, the financial results of which were not allocated to an operating segment and reported in "Other". (7) Intangible asset impairment charges in the now divested tire additives business to reduce the carrying values of the Crystex ™ and Santoflex ™ tradenames to the estimated fair values. The estimated fair values were determined using an income approach, specifically, the relief from royalty method, including some unobservable inputs. The impairments are primarily the result of weakened demand in transportation markets impacted by COVID-19 and increased competitive pricing pressure as a result of global capacity increases. (8) Intangible asset impairment charge for customer relationships. (9) Severance charges in 2022 and severance charges and related costs in 2020 as part of business improvement and cost reduction initiatives which was reported in "Other". (10) Severance charges and site closure costs related to closure of an acetate yarn manufacturing facility in Europe. Reconciliations of the beginning and ending restructuring liability amounts are as follows: (Dollars in millions) Balance at Provision/ Adjustments Non-cash Reductions/ Additions Cash Balance at Severance costs $ 12 $ 31 $ — $ (9) $ 34 Site closure & restructuring costs 5 21 1 (26) 1 Total $ 17 $ 52 $ 1 $ (35) $ 35 (Dollars in millions) Balance at Provision/ Adjustments Non-cash Reductions/ Additions Cash Balance at Non-cash charges $ — $ 16 $ (16) $ — $ — Severance costs 65 2 (1) (54) 12 Site closure & restructuring costs 14 29 (9) (29) 5 Total $ 79 $ 47 $ (26) $ (83) $ 17 (Dollars in millions) Balance at Provision/ Adjustments Non-cash Reductions/ Additions Cash Balance at Non-cash charges $ — $ 145 $ (145) $ — $ — Severance costs 17 65 1 (18) 65 Site closure & restructuring costs 11 17 — (14) 14 Total $ 28 $ 227 $ (144) $ (32) $ 79 Substantially all costs remaining for severance are expected to be applied to the reserves within one year. |
OTHER CHARGES (INCOME), NET
OTHER CHARGES (INCOME), NET | 12 Months Ended |
Dec. 31, 2022 | |
Other Income and Expenses [Abstract] | |
OTHER CHARGES (INCOME), NET | OTHER (INCOME) CHARGES, NET For years ended December 31, (Dollars in millions) 2022 2021 2020 Foreign exchange transaction losses (gains), net (1) $ 16 $ 10 $ 16 (Income) loss from equity investments and other investment (gains) losses, net (19) (16) (15) Other, net (2) (3) (11) 7 Other (income) charges, net $ (6) $ (17) $ 8 (1) Net impact of revaluation of foreign entity assets and liabilities and effects of foreign exchange non-qualifying derivatives. (2) Includes environmental and other costs from previously divested or non-operational sites and product lines and adjustments to contingent considerations. |
SHARE-BASED COMPENSATION PLANS
SHARE-BASED COMPENSATION PLANS AND AWARDS | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
SHARE-BASED COMPENSATION PLANS AND AWARDS | SHARE-BASED COMPENSATION PLANS AND AWARDS 2021 Omnibus Stock Compensation Plan Eastman's 2021 Omnibus Stock Compensation Plan ("2021 Omnibus Plan") was approved by stockholders at the May 6, 2021 Annual Meeting of Stockholders and shall remain in effect until its fifth anniversary. The 2021 Omnibus Plan authorizes the Compensation and Management Development Committee of the Board of Directors to grant awards, designate participants, determine the types and numbers of awards, determine the terms and conditions of awards and determine the form of award settlement. Under the 2021 Omnibus Plan, the aggregate number of shares reserved and available for issuance is 10 million, which consist of shares not previously authorized for issuance under any other plan. The number of shares covered by an award is counted against this share reserve as of the grant date of the award. Shares covered by full value awards (e.g. performance shares and restricted stock awards) are counted against the total number of shares available for issuance or delivery under the plan as 2.5 shares for every one share covered by the award. Any stock distributed pursuant to an award may consist of, in whole or in part, authorized and unissued stock, treasury stock, or stock purchased on the open market. Under the 2021 Omnibus Plan and previous plans, the forms of awards have included restricted stock and restricted stock units, stock options, stock appreciation rights ("SARs"), and performance shares. The 2021 Omnibus Plan is flexible as to the number of specific forms of awards, but provides that stock options and SARs are to be granted at an exercise price not less than 100 percent of the per share fair market value on the date of the grant. Director Stock Compensation Subplan Eastman's 2021 Director Stock Compensation Subplan ("Directors' Subplan"), a component of the 2021 Omnibus Plan, remains in effect until terminated by the Board of Directors or the earlier termination of the 2021 Omnibus Plan. The Directors' Subplan provides for structured awards of restricted shares to non-employee members of the Board of Directors. Restricted shares awarded under the Directors' Subplan are subject to the same terms and conditions of the 2021 Omnibus Plan. The Directors' Subplan does not constitute a separate source of shares for grants of equity awards and all shares awarded are part of the 10 million shares authorized under the 2021 Omnibus Plan. Shares of restricted stock are granted on the first day of a non-employee director's initial term of service and shares of restricted stock are granted each year to each non-employee director on the date of the annual meeting of stockholders. It has been the Company's practice to issue new shares rather than treasury shares for equity awards for compensation plans, including the 2021 Omnibus Plan and the Directors' Subplan, that require settlement by the issuance of common stock and to withhold or accept back shares awarded to cover the related income tax obligations of employee participants. Shares of unrestricted common stock owned by non-employee directors are not eligible to be withheld or acquired to satisfy the withholding obligation related to their income taxes. Shares of unrestricted common stock owned by specified senior management level employees are accepted by the Company to pay the exercise price of stock options in accordance with the terms and conditions of their awards. Compensation Expense For 2022, 2021, and 2020, total share-based compensation expense (before tax) of approximately $69 million, $70 million, and $44 million, respectively, was recognized in "Selling, general and administrative expense" in the Consolidated Statements of Earnings, Comprehensive Income and Retained Earnings for all share-based awards of which approximately $11 million, $9 million, and $7 million, respectively, related to stock options. The compensation expense is recognized over the substantive vesting period, which may be a shorter time period than the stated vesting period for qualifying termination eligible employees as defined in the forms of award notice. Approximately $7 million for 2022, $2 million for 2021, and $1 million for 2020 of stock option compensation expense was recognized each year due to qualifying termination eligibility preceding the requisite vesting period. Stock Option Awards Options have been granted on an annual basis by the Compensation and Management Development Committee of the Board of Directors under the 2021 Omnibus Plan and predecessor plans to employees. Option awards have an exercise price equal to the closing price of the Company's stock on the date of grant. The term of options is 10 years with vesting periods that vary up to three years. Vesting usually occurs ratably over the vesting period or at the end of the vesting period. The Company utilizes the Black Scholes Merton option valuation model which relies on certain assumptions to estimate an option's fair value. The weighted average assumptions used in the determination of fair value for stock options awarded in 2022, 2021, and 2020 are provided in the table below: Assumptions 2022 2021 2020 Expected volatility rate 28.98% 28.99% 21.56% Expected dividend yield 2.57% 3.58% 3.30% Average risk-free interest rate 2.35% 0.95% 0.94% Expected term years 6.4 6.0 5.9 The volatility rate of grants is derived from historical Company common stock price volatility over the same time period as the expected term of each stock option award. The volatility rate is derived by mathematical formula utilizing the weekly high closing stock price data over the expected term. The expected dividend yield is calculated using the Company's average of the last four quarterly dividend yields. The average risk-free interest rate is derived from United States Department of Treasury published interest rates of daily yield curves for the same time period as the expected term. The weighted average expected term reflects the analysis of historical share-based award transactions and includes option swap and reload grants which may have much shorter remaining expected terms than new option grants. A summary of the activity of the Company's stock option awards for 2022, 2021, and 2020 is presented below: 2022 2021 2020 Options Weighted-Average Exercise Price Options Weighted-Average Exercise Price Options Weighted-Average Exercise Price Outstanding at beginning of year 3,168,500 $ 84 3,526,600 $ 79 3,479,300 $ 80 Granted 443,100 113 449,700 109 622,000 62 Exercised (122,700) 74 (807,200) 77 (568,800) 64 Cancelled, forfeited, or expired (9,700) 87 (600) 74 (5,900) 82 Outstanding at end of year 3,479,200 $ 88 3,168,500 $ 84 3,526,600 $ 79 Options exercisable at year-end 2,534,400 2,047,500 2,192,300 Available for grant at end of year 8,355,640 9,866,480 4,046,748 The following table provides the remaining contractual term and weighted average exercise prices of stock options outstanding and exercisable at December 31, 2022: Options Outstanding Options Exercisable Range of Exercise Prices Number Outstanding at Weighted-Average Remaining Contractual Life (Years) Weighted-Average Exercise Price Number Exercisable at Weighted-Average Exercise Price $61-$75 1,037,200 5.2 $ 65 831,800 $ 66 $76-$90 1,099,700 5.3 82 1,018,600 82 $91-$105 535,800 5.2 104 535,800 104 $106-$121 806,500 8.6 114 148,200 109 3,479,200 6.0 $ 88 2,534,400 $ 83 The range of exercise prices of options outstanding at December 31, 2022 is approximately $61 to $121 per share. The aggregate intrinsic value of total options outstanding and total options exercisable at December 31, 2022 is $17 million and $13 million, respectively. Intrinsic value is the amount by which the closing market price of the stock at December 31, 2022 exceeds the exercise price of the option grants. The weighted average remaining contractual life of all exercisable options at December 31, 2022 is 5.1 years. The weighted average fair value of options granted during 2022, 2021, and 2020 was $26.80, $19.81, and $7.92, respectively. The total intrinsic value of options exercised during the years ended December 31, 2022, 2021, and 2020, was $6 million, $31 million, and $14 million, respectively. Cash proceeds received by the Company from option exercises totaled $10 million with a related tax benefit of $1 million, respectively, for 2022, $62 million with a related tax benefit of $5 million, respectively, for 2021, and $36 million with a related tax benefit of $2 million, respectively, for 2020. The total fair value of shares vested during the years ended December 31, 2022, 2021, and 2020 was $8 million, $8 million, and $9 million, respectively. A summary of the changes in the Company's nonvested options during the year ended December 31, 2022 is presented below: Nonvested Options Number of Options Weighted-Average Grant Date Fair Value Nonvested at January 1, 2022 1,121,000 $13.88 Granted 443,100 $26.80 Vested (611,900) $12.99 Cancelled, forfeited, or expired (7,400) $14.90 Nonvested options at December 31, 2022 944,800 $20.50 For nonvested options at December 31, 2022, approximately $3 million in compensation expense will be recognized over the next two years. Other Share-Based Compensation Awards In addition to stock option awards, Eastman has awarded long-term performance share awards, restricted stock awards, and SARs. The long-term performance share awards are based upon actual return on capital compared to a target return on capital and total stockholder return compared to a peer group ranking by total stockholder return over a three year performance period. The awards are valued using a Monte Carlo Simulation based model and vest pro-rata over the three year performance period. The number of long-term performance award target shares granted for the 2022-2024, 2021-2023, and 2020-2022 periods were 288 thousand, 311 thousand, and 423 thousand, respectively. The target shares granted are assumed to be 100 percent. At the end of the three-year performance period, the actual number of shares awarded can range from zero percent to 250 percent of the target shares granted based on the award notice. The number of restricted stock awards granted during 2022, 2021, and 2020 were 160 thousand, 166 thousand, and 227 thousand, respectively. The fair value of a restricted stock award is equal to the closing stock price of the Company's stock on the date of grant and normally vests over a period of three years. The recognized compensation expense before tax for these other share-based awards in the years ended December 31, 2022, 2021, and 2020 was approximately $58 million, $60 million, and $37 million, respectively. The unrecognized compensation expense before tax for these same type awards at December 31, 2022 was approximately $73 million and will be recognized primarily over a period of two years. |
SUPPLEMENTAL CASH FLOW INFORMAT
SUPPLEMENTAL CASH FLOW INFORMATION | 12 Months Ended |
Dec. 31, 2022 | |
Supplemental Cash Flow Information [Abstract] | |
Cash Flow, Supplemental Disclosures [Text Block] | SUPPLEMENTAL CASH FLOW INFORMATION Included in the line item "Other items, net" of the "Operating activities" section of the Consolidated Statements of Cash Flows are specific changes to certain balance sheet accounts as follows: For years ended December 31, (Dollars in millions) 2022 2021 2020 Current assets $ 22 $ (57) $ (1) Other assets 12 (32) (14) Current liabilities 180 109 5 Long-term liabilities and equity 76 69 15 Total $ 290 $ 89 $ 5 The above changes included transactions such as accrued taxes, deferred taxes, environmental liabilities, monetized positions from raw material and energy, currency, and certain interest rate hedges, equity investment dividends, prepaid insurance, miscellaneous deferrals, value-added taxes, and other miscellaneous accruals. Cash flows from derivative financial instruments accounted for as hedges are classified in the same category as the item being hedged. Cash paid for interest and income taxes is as follows: For years ended December 31, (Dollars in millions) 2022 2021 2020 Interest, net of amounts capitalized $ 179 $ 170 $ 191 Income taxes, net of refunds 78 122 179 Non-cash investing activities: Outstanding trade payables related to capital expenditures 64 22 20 |
SEGMENT INFORMATION
SEGMENT INFORMATION | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | SEGMENT AND REGIONAL SALES INFORMATION Eastman's products and operations are managed and reported in four operating segments: Advanced Materials ("AM"), Additives & Functional Products ("AFP"), Chemical Intermediates ("CI"), and Fibers. The economic factors that impact the nature, amount, timing, and uncertainty of revenue and cash flows vary among the Company's business operating segments and the geographical regions in which they operate. To maintain comparability of segment financial statement information, the Company has moved the divested businesses from the AFP segment to "Other" and recast the segment financial information for sales revenue, EBIT, assets, depreciation and amortization expense, and capital expenditures related to the divested rubber additives product lines and related assets and technology and the divested adhesives resins business. Advanced Materials Segment In the AM segment, the Company produces and markets polymers, films, and plastics with differentiated performance properties for value-added end-uses in transportation; durables and electronics; building and construction; medical and pharma; and consumables end-markets. The advanced interlayers product line includes polyvinyl butyral sheet and specialty polyvinyl butyral intermediates. The performance films product line primarily consists of window films and protective films products for aftermarket applied films. The specialty plastics product line consists of two primary products: copolyesters and cellulosic biopolymers. Percentage of Total Segment Sales Product Lines 2022 2021 2020 Advanced Interlayers 29% 29% 29% Performance Films 20% 20% 20% Specialty Plastics 51% 51% 51% Total 100% 100% 100% Percentage of Total Segment Sales Sales by Customer Location 2022 2021 2020 United States and Canada 33% 30% 34% Asia Pacific 35% 38% 33% Europe, Middle East, and Africa 26% 27% 27% Latin America 6% 5% 6% Total 100% 100% 100% Additives & Functional Products Segment In the AFP segment, the Company manufactures materials for products in the transportation; personal care and wellness; food, feed, and agriculture; building and construction; water treatment and energy; consumables; and durables and electronics end-markets. The products manufactured by the Company in the animal nutrition business consist of organic acid-based solutions product lines. The care additives business consists of amine derivative-based building blocks for the production of flocculants, intermediates for surfactants, fumigants, fungicides, and plant growth regulator products. The coatings additives product line can be broadly classified as polymers and additives and solvents and include specialty coalescents, specialty solvents, paint additives, and specialty polymers. In the specialty fluids product line, the Company produces heat transfer and aviation fluids products. Percentage of Total Segment Sales Product Lines 2022 2021 2020 Animal Nutrition 14% 12% 12% Care Additives 34% 32% 34% Coatings Additives 34% 38% 36% Specialty Fluids 18% 18% 18% Total 100% 100% 100% Percentage of Total Segment Sales Sales by Customer Location 2022 2021 2020 United States and Canada 39% 38% 38% Asia Pacific 24% 27% 26% Europe, Middle East, and Africa 31% 29% 30% Latin America 6% 6% 6% Total 100% 100% 100% Chemical Intermediates Segment Eastman leverages large scale and vertical integration from the cellulosic biopolymers and acetyl, olefins, and alkylamines streams to support the Company's specialty operating segments with advantaged cost positions. The CI segment sells excess intermediates beyond the Company's internal specialty needs into end-markets such as industrial chemicals and processing, building and construction, health and wellness, and agrochemicals. The functional amines product lines include methylamines and salts, and higher amines and solvents. In the intermediates product line, the Company produces olefin derivatives, acetyl derivatives, ethylene, and commodity solvents. The plasticizers product line consists of a unique set of primary non-phthalate and phthalate plasticizers and a range of niche non-phthalate plasticizers. Percentage of Total Segment Sales Product Lines 2022 2021 2020 Functional Amines 24% 21% 23% Intermediates 56% 57% 57% Plasticizers 20% 22% 20% Total 100% 100% 100% Percentage of Total Segment Sales Sales by Customer Location 2022 2021 2020 United States and Canada 70% 70% 65% Asia Pacific 7% 8% 13% Europe, Middle East, and Africa 17% 16% 16% Latin America 6% 6% 6% Total 100% 100% 100% Fibers Segment In the Fibers segment, Eastman manufactures and sells acetate tow and triacetin plasticizers for use in filtration media, primarily cigarette filters; cellulosic staple fibers and filament yarn for use in apparel, home furnishings, and industrial fabrics; nonwoven media for use in filtration and friction applications, used primarily in transportation, industrial, and agricultural end-markets; and cellulose acetate flake and acetyl raw materials for other acetate fiber producers. Percentage of Total Segment Sales Product Lines 2022 2021 2020 Acetate Tow 64% 64% 70% Acetate Yarn 14% 14% 9% Acetyl Chemical Products 16% 16% 16% Nonwovens 6% 6% 5% Total 100% 100% 100% Percentage of Total Segment Sales Sales by Customer Location 2022 2021 2020 United States and Canada 25% 25% 26% Asia Pacific 35% 35% 32% Europe, Middle East, and Africa 37% 37% 39% Latin America 3% 3% 3% Total 100% 100% 100% For years ended December 31, (Dollars in millions) 2022 2021 2020 Sales by Segment Advanced Materials $ 3,207 $ 3,027 $ 2,524 Additives & Functional Products 3,165 2,708 2,095 Chemical Intermediates 3,026 2,849 2,090 Fibers 1,022 900 837 Total Sales by Operating Segment 10,420 9,484 7,546 Other (1) 160 992 927 Total Sales $ 10,580 $ 10,476 $ 8,473 (1) "Other" includes sales revenue from the divested rubber additives and adhesives resins businesses. For years ended December 31, (Dollars in millions) 2022 2021 2020 Earnings (Loss) Before Interest and Taxes by Segment Advanced Materials $ 376 $ 519 $ 427 Additives & Functional Products 483 448 382 Chemical Intermediates 409 445 166 Fibers 131 142 180 Total EBIT by Operating Segment 1,399 1,554 1,155 Other (1) Growth initiatives and businesses not allocated to operating segments (196) (49) (32) Pension and other postretirement benefit plans income (expense), net not allocated to operating segments 70 375 (156) Asset impairments and restructuring charges, net (21) (18) (206) Net gain (loss) on divested businesses and related transaction costs (61) (570) — Steam line incident costs, net of insurance proceeds (39) — — Other income (charges), net not allocated to operating segments 7 (11) (20) Total EBIT $ 1,159 $ 1,281 $ 741 (1) "Other" includes EBIT of $6 million in 2022 and loss before interest and taxes of $502 million and $70 million in 2021 and 2020, respectively, from the divested rubber additives and adhesives resins businesses. December 31, (Dollars in millions) 2022 2021 Assets by Segment (1) Advanced Materials $ 4,967 $ 4,661 Additives & Functional Products 4,127 4,188 Chemical Intermediates 2,695 2,703 Fibers 1,046 972 Total Assets by Operating Segment 12,835 12,524 Corporate Assets 1,832 2,995 Total Assets $ 14,667 $ 15,519 (1) Segment assets include accounts receivable, inventory, fixed assets, goodwill, and intangible assets. As disclosed in Note 1, "Significant Accounting Policies", December 31, 2021 Assets by Segment have been recast from Note 20, "Segment and Regional Sales Information", to the Company's 2021 Annual Report on Form 10-K . Prior to the recast, December 31, 2021 assets reported for the AFP segment were revised from $4,643 million to $5,195 million, and assets reported for Corporate and Other Assets were revised from $2,540 million to $1,988 million. Total assets were not impacted by the misclassification. For years ended December 31, (Dollars in millions) 2022 2021 2020 Depreciation and Amortization Expense by Segment Advanced Materials $ 163 $ 177 $ 187 Additives & Functional Products 134 132 125 Chemical Intermediates 112 111 108 Fibers 61 60 56 Total Depreciation and Amortization Expense by Operating Segment 470 480 476 Other (1) 7 58 98 Total Depreciation and Amortization Expense $ 477 $ 538 $ 574 (1) "Other" includes depreciation and amortization expense from the divested rubber additives and adhesives resins businesses. For years ended December 31, (Dollars in millions) 2022 2021 2020 Capital Expenditures by Segment Advanced Materials $ 341 $ 280 $ 140 Additives & Functional Products 98 97 79 Chemical Intermediates 98 124 84 Fibers 43 33 31 Total Capital Expenditures by Operating Segment 580 534 334 Other (1) 31 21 49 Total Capital Expenditures $ 611 $ 555 $ 383 (1) "Other" includes capital expenditures from the divested rubber additives and adhesives resins businesses. Sales are attributed to geographic areas based on customer location and long-lived assets are attributed to geographic areas based on asset location. (Dollars in millions) For years ended December 31, Geographic Information 2022 2021 2020 Sales United States $ 4,738 $ 4,397 $ 3,437 All foreign countries 5,842 6,079 5,036 Total $ 10,580 $ 10,476 $ 8,473 December 31, 2022 2021 2020 Net properties United States $ 4,180 $ 3,847 $ 4,106 All foreign countries 980 1,149 1,443 Total $ 5,160 $ 4,996 $ 5,549 |
RESERVE ROLLFORWARDS
RESERVE ROLLFORWARDS | 12 Months Ended |
Dec. 31, 2022 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
RESERVE ROLLFORWARDS | RESERVE ROLLFORWARDS Valuation and Qualifying Accounts (Dollars in millions) Additions Balance at January 1, Charges (Credits) to Cost and Expense Other Accounts Balance at December 31, 2022 Reserve for: Credit losses $ 17 $ (2) $ — $ — $ 15 LIFO inventory 365 128 — — 493 Non-environmental asset retirement obligations 51 2 (1) 1 51 Environmental contingencies 281 7 — 14 274 Deferred tax valuation allowance 339 (79) (2) — 258 $ 1,053 $ 56 $ (3) $ 15 $ 1,091 (Dollars in millions) Additions Balance at January 1, Charges (Credits) to Cost and Expense Other Accounts (1) Deductions (2) Balance at December 31, 2021 Reserve for: Credit losses $ 14 $ 4 $ (1) $ — $ 17 LIFO inventory 226 159 (30) (10) 365 Non-environmental asset retirement obligations 51 2 (1) 1 51 Environmental contingencies 285 11 — 15 281 Deferred tax valuation allowance 393 (55) 1 — 339 $ 969 $ 121 $ (31) $ 6 $ 1,053 (1) Other accounts in the reserve for LIFO inventory was due to assets held for sale classification resulting from the Company entering into a definitive agreement to sell the adhesives resins business. (2) Deductions in the reserve for LIFO inventory was the result of the divestiture of rubber additives. For additional information, see Note 2, "Divestitures". (Dollars in millions) Additions Balance at January 1, Charges (Credits) to Cost and Expense Other Accounts Balance at December 31, 2020 Reserve for: Credit losses $ 11 $ 4 $ — $ 1 $ 14 LIFO inventory 248 (22) — — 226 Non-environmental asset retirement obligations 48 2 1 — 51 Environmental contingencies 287 8 — 10 285 Deferred tax valuation allowance 453 (61) 1 — 393 $ 1,047 $ (69) $ 2 $ 11 $ 969 |
SIGNIFICANT ACCOUNTING POLICI_2
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Financial Statement Presentation | Financial Statement Presentation The consolidated financial statements of Eastman Chemical Company ("Eastman" or the "Company") and subsidiaries are prepared in conformity with accounting principles generally accepted ("GAAP") in the United States and of necessity include some amounts that are based upon management estimates and judgments. Future actual results could differ from such current estimates. The consolidated financial statements include assets, liabilities, sales revenue, and expenses of all majority-owned subsidiaries and joint ventures in which a controlling interest is maintained. Eastman accounts for other joint ventures and investments in minority-owned companies where it exercises significant influence on the equity basis. Intercompany transactions and balances are eliminated in consolidation. Certain prior period data has been reclassified in the consolidated financial statements and accompanying footnotes to conform to current period presentation, including sales revenue, earnings before interest and taxes ("EBIT"), assets, depreciation and amortization expense, and capital expenditures related to the divested rubber additives product lines and related assets and technology and the adhesives resins business. See Note 20, "Segment and Regional Sales Information", for more information. |
New Accounting Pronouncements | Recently Adopted Accounting Standards Accounting Standards Update ("ASU") 2021-05 Leases (Topic 842): Lessors - Certain Leases with Variable Lease Payments : On January 1, 2022, Eastman adopted this update which is a part of the Financial Accounting Standards Board's ("FASB") post-implementation review of this Topic. The update provides that lessors should classify and account for a lease with variable lease payments that do not depend on a reference index or a rate as an operating lease if both: the lease would have been classified as a sales-type lease or a direct financing lease and the lessor would have otherwise recognized a day-one loss. The adoption did not have a significant impact on the Company's financial statements and related disclosures. ASU 2021-10 Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance : On January 1, 2022, Eastman adopted prospectively this amendment which requires business entities that account for transactions with a government by applying a grant or contribution model by analogy (for example, a grant model within International Financial Reporting Standards) to provide annual disclosures about government assistance recorded during the period. The adoption did not have a significant impact on the Company's financial statements and related disclosures. Accounting Standards Issued But Not Adopted as of December 31, 2022 ASU 2021-08 Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers : The FASB issued this update in October 2021, which requires that an entity (acquirer) recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Topic 606 Revenue from Contracts with Customers , as if it had originated the contracts. The update also provides certain practical expedients for acquirers and is applicable to all contract assets and liabilities within the scope of Topic 606. The expedients are as follows: "provides relief for contracts that have been previously modified before the acquisition date" and "relief for situations in which the acquirer does not have the appropriate data or expertise to analyze the historical periods in which the contract was entered into". This guidance is effective for fiscal years beginning after December 15, 2022, including interim periods within those years. Adoption is on a prospective basis to business combinations occurring on or after the initial application. Management does not expect that changes required by the new standard will have a significant impact on the Company's financial statements and related disclosures. ASU 2022-01 Derivatives and Hedging (Topic 815): Fair Value Hedging—Portfolio Layer Method : The FASB issued this update in March 2022. This ASU clarifies the guidance in Accounting Standards Codification ("ASC") 815 on fair value hedge accounting of interest rate risk for portfolios of financial assets. This ASU amends the guidance in ASU 2017-12 (released on August 28, 2017) that, among other things, established the "last-of-layer" method for making the fair value hedge accounting for these portfolios more accessible. ASU 2022-01 renames that method the "portfolio layer" method and addresses feedback from stakeholders regarding its application. This guidance is effective for fiscal years beginning after December 15, 2022, including interim periods within those years. Management does not expect that changes required by the new standard will have a significant impact on the Company's financial statements and related disclosures. ASU 2022-02 Financial Instruments—Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures : The FASB issued this update in March 2022. This ASU updates the requirements for accounting for credit losses under ASC 326, eliminates the accounting guidance on troubled debt restructurings for creditors in ASC 310-40, and enhances creditors' disclosure requirements related to loan refinancings and restructurings for borrowers experiencing financial difficulty. This ASU also amends the guidance on "vintage disclosures" to require disclosure of gross write-offs by year of origination. This guidance is effective for fiscal years beginning after December 15, 2022, including interim periods within those years. Management does not expect that changes required by the new standard will have a significant impact on the Company's financial statements and related disclosures. ASU 2022-03 Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions : The FASB issued this update in June 2022, which states that when measuring the fair value of an asset or a liability, a reporting entity should consider the characteristics of the asset or liability, including restrictions on the sale of the asset or liability, if a market participant also would take those characteristics into account. Key to that determination is the unit of account for the asset or liability being measured at fair value. This guidance is effective for fiscal years beginning after December 15, 2023, and interim periods within those fiscal years, with early adoption permitted. Management does not expect that changes required by the new standard will have a significant impact on the Company's financial statements and related disclosures. ASU 2022-04 Liabilities - Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations : The FASB issued this update in September 2022, which requires the buyer in a supplier finance program to disclose qualitative and quantitative information about the program. Required disclosures include information about the key terms of the program, outstanding confirmed amounts as of the end of the period, a rollforward of such amounts during each annual period, and a description of where in the financial statements outstanding amounts are presented. This guidance is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years, except for the disclosure of rollforward information, which is effective for fiscal years beginning after December 15, 2023, with early adoption permitted. Management is currently evaluating the impact of the changes required by the new standard on the Company's financial statements and related disclosures. ASU 2022-06 Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848 : The FASB issued this update in December 2022, which extends the temporary optional relief in accounting for the impact of reference rate reform under Topic 848 from December 31, 2022 to December 31, 2024. The amendments apply to all entities that have contracts, hedging relationships, and other transactions that reference the London Interbank Offered Rate ("LIBOR") or another reference rate expected to be discontinued because of reference rate reform. This update was effective immediately upon issuance, with no impact on the Company's financial statements and related disclosures. |
Revenue Recognition and Customer Incentives | Revenue Recognition Eastman recognizes revenue when performance obligations of the sale are satisfied. Eastman sells to customers through master sales agreements or standalone purchase orders. The majority of the Company's terms of sale have a single performance obligation to transfer products. Accordingly, the Company recognizes revenue when control has been transferred to the customer, generally at the time of shipment of products. Eastman accounts for shipping and handling as activities to fulfill the promise to transfer the good and does not allocate revenue to those activities. All related shipping and handling costs are recognized at the time of shipment. Amounts collected for sales or other similar taxes are presented net of the related tax expense rather than presenting them as additional revenue. The incremental cost of obtaining a sales contract is recognized as a selling expense when incurred given the potential amortization period for such an asset is one year or less. The possible existence of a significant financing component within a sales contract is ignored when the time between cash collection and performance is less than one year. Finally, the Company does not disclose any unfulfilled obligations as customer purchase order commitments have an original expected duration of one year or less and no consideration from customers is excluded from the transaction price. The timing of Eastman's customer billings does not always match the timing of revenue recognition. When the Company is entitled to bill a customer in advance of the recognition of revenue, a contract liability is recognized. When the Company is not entitled to bill a customer until a period after the related recognition of revenue, a contract asset is recognized. Contract assets represent the Company's right to consideration for the exchange of goods under a contract but which are not yet billable to a customer for consignment inventory or pursuant to certain shipping terms. Contract liabilities were $18 million and $14 million as of December 31, 2022 and 2021, respectively, and are included as a part of "Payables and other current liabilities" and "Other long-term liabilities" in the Consolidated Statements of Financial Position. Contract assets were $93 million and $82 million as of December 31, 2022 and 2021, respectively, and are included as a component of "Miscellaneous receivables" in the Consolidated Statements of Financial Position. For additional information, see Note 20, "Segment and Regional Sales Information". |
Pension and Other Postretirement Benefits | Pension and Other Postretirement Benefits Eastman maintains defined benefit pension and other postretirement benefits plans that provide eligible employees with retirement benefits. The estimated amounts of the costs and obligations related to these benefits reflect the Company's assumptions related to discount rates, expected return on plan assets, rate of compensation increase or decrease for employees, and health care cost trends. The estimated cost of providing plan benefits also depends on demographic assumptions including retirements, mortality, turnover, and plan participation. Eastman's pension and other postretirement benefit plans costs consist of two elements: 1) ongoing costs recognized quarterly, which are comprised of service and interest costs, expected returns on plan assets, and amortization of prior service credits; and 2) mark-to-market ("MTM") gains and losses recognized annually, in the fourth quarter of each year, primarily resulting from changes in actuarial assumptions for discount rates and the differences between actual and expected returns on plan assets. Any interim remeasurements triggered by a curtailment, settlement, or significant plan changes are recognized in the quarter in which such remeasurement event occurs. For additional information, see Note 11, "Retirement Plans". |
Environmental Costs | Environmental Costs Eastman recognizes environmental remediation costs when it is probable that the Company has incurred a liability at a contaminated site and the amount can be reasonably estimated. When a single amount cannot be reasonably estimated but the cost can be estimated within a range, the Company recognizes the minimum undiscounted amount. This undiscounted amount reflects liabilities expected to be paid within approximately 30 years and the Company's assumptions about remediation requirements at the contaminated site, the nature of the remedy, the outcome of discussions with regulatory agencies and other potentially responsible parties at multi-party sites, and the number and financial viability of other potentially responsible parties. Changes in the estimates on which the accruals are based, unanticipated government enforcement action, or changes in health, safety, environmental, and chemical control regulations and testing requirements could result in higher or lower costs. The Company also establishes reserves for closure and post-closure costs associated with the environmental and other assets it maintains. Environmental assets include but are not limited to waste management units, such as landfills, water treatment facilities, and surface impoundments. When these types of assets are constructed or installed, a loss contingency reserve is established for the anticipated future costs associated with the retirement or closure of the asset based on its expected life and the applicable regulatory closure requirements. The Company recognizes the 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. These future estimated costs are charged to earnings over the estimated useful life of the assets. If the Company changes its estimate of the environmental asset retirement obligation costs or its estimate of the useful lives of these assets, earnings will be impacted in the period the estimate is changed. 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 and charged to "Cost of sales" in the Consolidated Statements of Earnings, Comprehensive Income and Retained Earnings. Environmental costs are capitalized if they extend the life of the related property, increase its capacity, or mitigate the possibility of future contamination. The cost of operating and maintaining environmental control facilities is charged to "Cost of sales" in the Consolidated Statements of Earnings, Comprehensive Income and Retained Earnings, as incurred. For additional information see Note 13, "Environmental Matters and Asset Retirement Obligations". |
Share-based Compensation | Share-Based Compensation Eastman recognizes compensation expense in "Selling, general and administrative expense" in the Consolidated Statements of Earnings, Comprehensive Income and Retained Earnings for stock options and other share-based compensation awards based upon the grant-date fair value over the substantive vesting period. For additional information, see Note 18, "Share-Based Compensation Plans and Awards". |
Restructuring of Operations | Restructuring of Operations Eastman records restructuring charges for costs incurred in connection with consolidation of operations, exited business or product lines, or shutdowns of specific sites that are expected to be substantially completed within twelve months. These restructuring charges are recorded as incurred, and are associated with site closures, legal and environmental matters, demolition, contract terminations, obsolete inventory, or other costs and charges directly related to the restructuring. The Company records severance charges for employee separations when the separation is probable and reasonably estimable. In the event employees are required to perform future service, the Company records severance charges ratably over the remaining service period of those employees. |
Income Taxes | Income Taxes The provision for income taxes has been determined using the asset and liability approach of accounting for income taxes. Under this approach, deferred taxes represent the future tax consequences expected to occur when the reported amounts of assets and liabilities are recovered or paid. The provision for income taxes represents income taxes paid or payable for the current year plus the change in deferred taxes during the year. Deferred taxes result from differences between the financial and tax bases of Eastman's assets and liabilities and are adjusted for changes in tax rates and tax laws when changes are enacted. The recoverability of the Company's deferred tax assets are evaluated each quarter by assessing the likelihood of future profitability and available tax planning strategies that could be implemented to realize the Company's net deferred tax assets. Valuation allowances are recorded to reduce deferred tax assets when it is more likely than not that a tax benefit will not be realized. Provision has been made for income taxes on unremitted earnings of subsidiaries and affiliates, except for subsidiaries in which earnings are deemed to be indefinitely reinvested. The calculation of income tax liabilities involves uncertainties in the application of complex tax laws and regulations, which are subject to legal interpretation and management judgment. Eastman's income tax returns are regularly examined by federal, state and foreign tax authorities, and those audits may result in proposed adjustments. The Company has evaluated these potential issues under the more-likely-than-not standard of the accounting literature. A tax position is recognized if it meets this standard and is measured at the largest amount of benefit that has a greater than 50 percent likelihood of being realized. Such judgments and estimates may change based on audit settlements, court cases and interpretation of tax laws and regulations. The Company accrues interest related to unrecognized income tax positions, which is included as a component of the income tax provision on the balance sheet. The accrued interest related to unrecognized income tax positions and taxes resulting from the global intangible low-tax income are recorded as a component of the income tax provision. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents include cash, time deposits, and readily marketable securities with original maturities of three months or less. |
Fair Value Measurements | Fair Value Measurements Eastman records recurring and non-recurring financial assets and liabilities as well as all non-financial assets and liabilities subject to fair value measurement at the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. These fair value principles prioritize valuation inputs across three broad levels. Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2 inputs are quoted prices for similar assets and liabilities in active markets or inputs that are observable for the asset or liability, either directly or indirectly through market corroboration, for substantially the full term of the financial instrument. Level 3 inputs are unobservable inputs based on the Company's assumptions used to measure assets and liabilities at fair value. An asset or liability's classification within the various levels is determined based on the lowest level input that is significant to the fair value measurement. |
Accounts Receivable and Allowance for Doubtful Accounts | Accounts Receivable and Allowance for Credit Losses Trade accounts receivable are recorded at the invoiced amount and do not bear interest. Eastman maintains allowances for estimated credit losses, which are developed at a market, country, and region level based on risk of collection as well as current and forecasted economic conditions. The Company calculates the allowance based on an assessment of the risk when the accounts receivable is recognized. Write-offs are recorded at the time a customer receivable is deemed uncollectible. Allowance for credit losses was $15 million and $17 million as of December 31, 2022 and 2021, respectively. The Company does not enter into receivables of a long-term nature, also known as financing receivables, in the normal course of business. |
Inventories | Inventories Inventories measured by the last-in, first-out ("LIFO") method are valued at the lower of cost or market and inventories measured by the first-in, first-out ("FIFO") method are valued at the lower of cost or net realizable value. Eastman determines the cost of most raw materials, work in process, and finished goods inventories in the United States and Switzerland by the LIFO method. The cost of all other inventories is determined by the average cost method, which approximates the FIFO method. The Company writes-down its inventories equal to the difference between the carrying value of inventory and the estimated market value or net realizable value based upon assumptions about future demand and market conditions. |
Properties | Properties Eastman records properties at cost. Maintenance and repairs are charged to earnings; replacements and betterments are capitalized. When Eastman retires or otherwise disposes of assets, it removes the cost of such assets and related accumulated depreciation from the accounts. The Company records any profit or loss on retirement or other disposition in "Cost of sales" in the Consolidated Statements of Earnings, Comprehensive Income and Retained Earnings. Asset impairments are reflected as increases in accumulated depreciation for properties that have been placed in service. In instances when an asset has not been placed in service and is impaired, the associated costs are removed from the appropriate property accounts. |
Depreciation and Amortization | Depreciation and Amortization Depreciation expense is calculated based on historical cost and the estimated useful lives of the assets, generally using the straight-line method. Estimated useful lives for buildings and building equipment generally range from 20 to 50 years. Estimated useful lives generally ranging from 3 to 33 years are applied to machinery and equipment in the following categories: computer software (3 to 5 years); office furniture and fixtures and computer equipment (5 to 10 years); vehicles, railcars, and general machinery and equipment (5 to 20 years); and manufacturing-related improvements (20 to 33 years). Accelerated depreciation is reported when the estimated useful life is shortened and continues to be reported in "Cost of sales" in the Consolidated Statements of Earnings, Comprehensive Income and Retained Earnings. For additional information, see Note 4, "Properties and Accumulated Depreciation". Amortization expense for definite-lived intangible assets is generally determined using a straight-line method over the estimated useful life of the asset. Amortization expense is reported in "Cost of sales" in the Consolidated Statements of Earnings, Comprehensive Income and Retained Earnings. |
Impairment of Long Lived Assets | Impairment of Long-Lived Assets Definite-lived Assets Properties and equipment and definite-lived intangible assets to be held and used by Eastman are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. The review of properties and equipment and the review of definite-lived intangible assets is performed at the asset group level, which is the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities. If the carrying amount is not considered to be recoverable, an analysis of fair value is triggered. An impairment is recognized for the excess of the carrying amount of the asset over the fair value. |
Goodwill and Intangible Assets, Policy | Goodwill Goodwill is an asset determined as the residual of the purchase price over the fair value of identified assets and liabilities acquired in a business combination. Eastman conducts testing of goodwill for impairment annually in the fourth quarter or more frequently when events and circumstances indicate an impairment may have occurred. The testing of goodwill is performed at the "reporting unit" level which the Company has determined to be its "components". Components are defined as an operating segment or one level below an operating segment, and in order to be a reporting unit, the component must 1) be a "business" as defined by applicable accounting standards (an integrated set of activities and assets that is capable of being conducted and managed for the purpose of providing a return in the form of dividends, lower costs, or other economic benefits directly to the investors or other owners, members, or participants); 2) have discrete financial information available; and 3) be reviewed regularly by Company operating segment management. The Company aggregates certain components into reporting units based on economic similarities. An impairment is recognized when the reporting unit's estimated fair value is less than its carrying value. The Company uses an income approach, specifically a discounted cash flow model, in testing the carrying value of goodwill of each reporting unit for impairment. Indefinite-lived Intangible Assets Eastman conducts testing of indefinite-lived intangible assets annually in the fourth quarter or more frequently when events and circumstances indicate an impairment may have occurred. The carrying value of an indefinite-lived intangible asset is considered to be impaired when the fair value, as established by appraisal or based on discounted future cash flows of certain related products, is less than the respective carrying value. Indefinite-lived intangible assets, consisting primarily of various tradenames, are tested for potential impairment by comparing the estimated fair value to the carrying amount. The Company uses an income approach, specifically the relief from royalty method, to test indefinite-lived intangible assets. The estimated fair value of tradenames is determined based on an assumed royalty rate savings, discounted by the calculated market participant estimated weighted average cost of capital ("WACC") plus a risk premium. |
Lessee, Leases [Policy Text Block] | Leases There are two types of leases: financing and operating. Both types of leases have associated right-to-use assets and lease liabilities that are valued at the net present value of the lease payments and recognized on the Consolidated Statements of Financial Position. The discount rate used in the measurement of a right-to-use asset and lease liability is the rate implicit in the lease whenever that rate is readily determinable. If the rate implicit in the lease is not readily determinable, the collateralized incremental borrowing rate is used. The Company elected the accounting policy not to apply the recognition and measurement requirements to short-term leases with a term of 12 months or less and do not include a bargain purchase option. Residual guarantee payments that become probable and estimable are recognized as rent expense over the remaining life of the applicable lease. For lease accounting policies, see Note 12, "Leases and Other Commitments". |
Investments | Investments The consolidated financial statements include the accounts of Eastman and all its subsidiaries and entities or joint ventures in which a controlling interest is maintained. The Company includes its share of earnings and losses of such investments in "Net earnings attributable to Eastman" and "Comprehensive income attributable to Eastman" located in the Consolidated Statements of Earnings, Comprehensive Income and Retained Earnings and in "Total equity" located in the Consolidated Statements of Financial Position. Investments in affiliates over which the Company has significant influence but not a controlling interest are carried under the equity method of accounting. These investments are included in "Other noncurrent assets" in the Consolidated Statements of Financial Position. The Company includes its share of earnings and losses of such investments in "Other (income) charges, net" located in the Consolidated Statements of Earnings, Comprehensive Income and Retained Earnings. |
Derivative and Non-Derivative Financial Instruments | Derivative and Non-Derivative Financial Instruments Eastman uses derivative and non-derivative instruments to manage its exposure to market risks, such as changes in foreign currency exchange rates, commodity prices, and interest rates. The Company does not enter into derivative transactions for speculative purposes. The Company's derivative instruments are recognized as either assets or liabilities on the Consolidated Statements of Financial Position and measured at fair value. Hedge accounting will be discontinued prospectively for all hedges that no longer qualify for hedge accounting treatment. For additional information, see Note 10, "Derivative and Non-Derivative Financial Instruments". |
Litigation and Contingent Liabilities | Litigation and Contingent Liabilities From time to time, Eastman 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 handled and defended in the ordinary course of business. The Company accrues a contingent loss liability for such matters when it is probable that a liability has been incurred and the amount can be reasonably estimated. When a single amount cannot be reasonably estimated but the cost can be estimated within a range, the Company accrues the minimum amount. The Company expenses legal costs, including those expected to be incurred in connection with a loss contingency, as incurred. |
Off-Balance-Sheet Credit Exposure, Policy [Policy Text Block] | Working Capital Management and Off Balance Sheet Arrangements The Company has an off balance sheet, uncommitted accounts receivable factoring program under which entire invoices may be sold, without recourse, to third-party financial institutions. Under these agreements, the Company sells the invoices at face value, less a transaction fee, which substantially equals fair value with no gain or loss recognized, and no credit loss exposure is retained. Available capacity under these agreements, which the Company uses as a routine source of working capital funding, is dependent on the level of accounts receivable eligible to be sold and the financial institutions' willingness to purchase such receivables. In addition, certain agreements also require that the Company continue to service, administer, and collect the sold accounts receivable at market rates. The total amount of receivables sold in 2022 and 2021 were $2.5 billion and $1.2 billion, respectively. The Company works with suppliers to optimize payment terms and conditions on accounts payable to enhance timing of working capital and cash flows. The Company has a voluntary supply chain finance program to provide suppliers with the opportunity to sell receivables due from Eastman to a participating financial institution. Eastman's responsibility is limited to making payments on the terms originally negotiated with suppliers, regardless of whether the suppliers sell their receivables to the financial institution. The range of payment terms Eastman negotiates with suppliers are consistent, regardless of whether a supplier participates in the program. All of Eastman's accounts payable and associated payments are reported consistently in the Company's Consolidated Statements of Financial Position and Consolidated Statements of Cash Flows regardless of whether they are associated with a vendor who participates in the program. |
DIVESTITURES (Tables)
DIVESTITURES (Tables) - Disposal Group, Disposed of by Sale, Not Discontinued Operations | 12 Months Ended |
Dec. 31, 2022 | |
Tire Additives Disposal Group | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Disposal Groups, Including Discontinued Operations | The major classes of divested assets and liabilities were as follows: (Dollars in millions) Assets divested Trade receivables, net of allowance for doubtful accounts $ 107 Inventories 94 Other assets 26 Properties, net of accumulated depreciation 298 Goodwill 398 Intangible assets, net of accumulated amortization 381 Assets divested 1,304 Liabilities divested Payables and other liabilities 48 Post-employment obligations 34 Other liabilities 18 Liabilities divested 100 Disposal group, net $ 1,204 |
Adhesives Disposal Group | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Disposal Groups, Including Discontinued Operations | The major classes of divested assets and liabilities as of the date of the divestiture were as follows: (Dollars in millions) Assets divested Trade receivables, net of allowance for doubtful accounts $ 129 Inventories 163 Other assets 21 Properties, net of accumulated depreciation 303 Goodwill 399 Intangible assets, net of accumulated amortization 14 Assets divested 1,029 Liabilities divested Payables and other liabilities 83 Deferred tax liability 7 Other liabilities 4 Liabilities divested 94 Disposal group, net $ 935 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | December 31, (Dollars in millions) 2022 2021 Finished goods $ 1,347 $ 1,007 Work in process 297 273 Raw materials and supplies 743 589 Total inventories at FIFO or average cost 2,387 1,869 Less: LIFO reserve 493 365 Total inventories $ 1,894 $ 1,504 |
PROPERTIES AND ACCUMULATED DE_2
PROPERTIES AND ACCUMULATED DEPRECIATION (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Properties | December 31, (Dollars in millions) 2022 2021 Properties Land $ 140 $ 150 Buildings 1,394 1,458 Machinery and equipment 10,543 10,449 Construction in progress 865 623 Properties and equipment at cost $ 12,942 $ 12,680 Less: Accumulated depreciation 7,782 7,684 Net properties $ 5,160 $ 4,996 |
GOODWILL AND OTHER INTANGIBLE_2
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Changes in Carrying Amount of Goodwill | (Dollars in millions) Advanced Materials Additives & Functional Products Chemical Intermediates Other Total Balance at December 31, 2020 $ 1,292 $ 2,397 $ 766 $ 10 $ 4,465 Divestiture — (398) — — (398) Held for sale (1) — (399) — — (399) Currency translation adjustments (6) (15) (6) — (27) Balance at December 31, 2021 1,286 1,585 760 10 3,641 Acquisitions (2) 15 30 — — 45 Currency translation adjustments (5) (14) (3) — (22) Balance at December 31, 2022 $ 1,296 $ 1,601 $ 757 $ 10 $ 3,664 (1) Held for sale goodwill was divested in 2022. (2) Measurement period adjustments related to prior year acquisitions. |
Schedule of Finite Lived and Indefinite Lived Intangible Assets by Major Class | December 31, 2022 December 31, 2021 (Dollars in millions) Estimated Useful Life in Years Gross Carrying Value Accumulated Amortization Net Carrying Value Gross Carrying Value Accumulated Amortization Net Carrying Value Amortizable intangible assets: Customer relationships 8 - 25 $ 1,134 $ 535 $ 599 $ 1,144 $ 479 $ 665 Technology 7 - 20 505 331 174 581 304 277 Other 16 - 37 110 32 78 87 26 61 Indefinite-lived intangible assets: Tradenames 349 — 349 349 — 349 Other 10 — 10 10 — 10 Total identified intangible assets $ 2,108 $ 898 $ 1,210 $ 2,171 $ 809 $ 1,362 |
PAYABLES AND OTHER CURRENT LI_2
PAYABLES AND OTHER CURRENT LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Payables and Accruals [Abstract] | |
Schedule of Payables and Other Current Liabilities | December 31, (Dollars in millions) 2022 2021 Trade creditors $ 1,319 $ 1,228 Accrued payrolls, vacation, and variable-incentive compensation 164 311 Accrued taxes 157 138 Post-employment obligations 103 70 Dividends payable to stockholders 94 101 Other 288 285 Total payables and other current liabilities $ 2,125 $ 2,133 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Earnings (Loss) from Continuing Operations and Provisions for Income Taxes | Components of earnings before income taxes and the provision for U.S. and other income taxes from operations follow: For years ended December 31, (Dollars in millions) 2022 2021 2020 Earnings before income taxes United States $ 205 $ 645 $ 164 Outside the United States 772 437 366 Total $ 977 $ 1,082 $ 530 Provision for income taxes United States Federal Current $ 179 $ 114 $ 70 Deferred (76) 18 (96) Outside the United States Current 105 115 77 Deferred (10) (42) (14) State and other Current 33 24 5 Deferred (50) (14) (1) Total $ 181 $ 215 $ 41 |
Schedule of Deferred Tax Charge (Benefit) Recorded as a Component of Accumulated Other Comprehensive Loss | The following represents the deferred tax (benefit) charge recorded as a component of "Accumulated other comprehensive income (loss)" ("AOCI") in the Consolidated Statements of Financial Position: For years ended December 31, (Dollars in millions) 2022 2021 2020 Defined benefit pension and other postretirement benefit plans $ (7) $ (10) $ (7) Derivatives and hedging (1) 21 (4) Total $ (8) $ 11 $ (11) |
Schedule of Income Tax Expense (Benefit) Included in Consolidated Financial Statement | Total income tax expense (benefit) included in the consolidated financial statements was composed of the following: For years ended December 31, (Dollars in millions) 2022 2021 2020 Earnings before income taxes $ 181 $ 215 $ 41 Other comprehensive income (8) 11 (11) Total $ 173 $ 226 $ 30 |
Schedule of Reconciliation of Income Taxes on Earnings from Continuing Operations at Federal Statutory Income Tax Rate | Differences between the provision for income taxes and income taxes computed using the U.S. Federal statutory income tax rate follow: For years ended December 31, (Dollars in millions) 2022 2021 2020 Amount computed using the statutory rate $ 205 $ 225 $ 109 State income taxes, net (27) (4) 2 Foreign rate variance (16) (28) (49) Change in reserves for tax contingencies 27 (39) 4 General business credits (44) (21) (39) U.S. tax on foreign earnings, net of credits (17) 2 13 Divestitures 37 89 — Tax law changes and tax loss from outside-U.S. entity reorganizations — (15) — Other 16 6 1 Provision for income taxes $ 181 $ 215 $ 41 Effective income tax rate 19 % 20 % 8 % |
Schedule of Significant Components of Deferred Tax Assets and Liabilities | The significant components of deferred tax assets and liabilities follow: December 31, (Dollars in millions) 2022 2021 Deferred tax assets Post-employment obligations $ 150 $ 176 Net operating loss carryforwards 645 637 Tax credit carryforwards 236 212 Environmental contingencies 64 67 Capitalized research and development expenses 139 — Other 239 224 Total deferred tax assets 1,473 1,316 Less: Valuation allowance 258 339 Deferred tax assets less valuation allowance $ 1,215 $ 977 Deferred tax liabilities Property, plant, and equipment $ (849) $ (843) Intangible assets (272) (288) Investments (441) (369) Other (201) (171) Total deferred tax liabilities $ (1,763) $ (1,671) Net deferred tax liabilities $ (548) $ (694) As recorded in the Consolidated Statements of Financial Position: Other noncurrent assets $ 123 $ 116 Deferred income tax liabilities (671) (810) Net deferred tax liabilities $ (548) $ (694) |
Schedule of Tax Receivables and Payables | Amounts due to and from tax authorities as recorded in the Consolidated Statements of Financial Position: December 31, (Dollars in millions) 2022 2021 Miscellaneous receivables $ 35 $ 173 Payables and other current liabilities $ 95 $ 68 Other long-term liabilities 174 130 Total income taxes payable $ 269 $ 198 |
Schedule of Reconciliation of Beginning and Ending Amounts of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amounts of unrecognized tax benefits is as follows: (Dollars in millions) 2022 2021 2020 Balance at January 1 $ 200 $ 257 $ 202 Adjustments based on tax positions related to current year 11 6 14 Adjustments based on tax positions related to prior years 24 2 63 Lapse of statute of limitations — (45) (22) Settlements — (20) — Balance at December 31 (1) $ 235 $ 200 $ 257 (1) Approximately $229 million of the unrecognized tax benefits as of December 31, 2022, would, if recognized, impact the Company's effective tax rate. A reconciliation of the beginning and ending amounts of accrued interest related to unrecognized tax positions is as follows: (Dollars in millions) 2022 2021 2020 Balance at January 1 $ 13 $ 13 $ 13 Expense for interest, net of tax 9 9 5 Income for interest, net of tax — (9) (5) Balance at December 31 $ 22 $ 13 $ 13 Accrued penalties related to unrecognized tax positions were immaterial as of December 31, 2022, 2021, and 2020. |
BORROWINGS (Tables)
BORROWINGS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Borrowings | December 31, (Dollars in millions) 2022 2021 Borrowings consisted of: 3.6% notes due August 2022 $ — $ 747 1.50% notes due May 2023 (1) 800 850 7 1/4% debentures due January 2024 198 198 7 5/8% debentures due June 2024 43 43 3.80% notes due March 2025 693 698 1.875% notes due November 2026 (1) 530 565 7.60% debentures due February 2027 196 195 4.5% notes due December 2028 495 494 4.8% notes due September 2042 494 494 4.65% notes due October 2044 877 875 2027 Term loan 499 — Commercial paper and short-term borrowings 326 — Total borrowings 5,151 5,159 Less: Borrowings due within one year 1,126 747 Long-term borrowings $ 4,025 $ 4,412 |
DERIVATIVE AND NON-DERIVATIVE_2
DERIVATIVE AND NON-DERIVATIVE FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Notional Amounts of Outstanding Derivative Positions [Table Text Block] | The following table presents the notional amounts outstanding at December 31, 2022 and 2021 associated with Eastman's hedging programs. Notional Outstanding December 31, 2022 December 31, 2021 Derivatives designated as cash flow hedges: Foreign Exchange Forward and Option Contracts (in millions) EUR/USD (in EUR) €573 €429 Commodity Forward and Collar Contracts Feedstock (in million barrels) — 1 Energy (in million british thermal units) 3 13 Interest rate swaps for the future issuance of debt (in millions) — $75 Derivatives designated as fair value hedges: Fixed-for-floating interest rate swaps (in millions) $75 $75 Derivatives designated as net investment hedges: Cross-currency interest rate swaps (in millions) EUR/USD (in EUR) €587 €853 Non-derivatives designated as net investment hedges: Foreign Currency Net Investment Hedges (in millions) EUR/USD (in EUR) €1,247 €1,246 |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | The following table presents the financial assets and liabilities valued on a recurring and gross basis and includes where the financial assets and liabilities are located within the Consolidated Statements of Financial Position as of December 31, 2022 and 2021. The Financial Position and Fair Value Measurements of Hedging Instruments on a Gross Basis (Dollars in millions) Derivative Type Statements of Financial December 31, 2022 December 31, 2021 Derivatives designated as cash flow hedges: Commodity contracts Other current assets $ 3 $ 16 Commodity contracts Other noncurrent assets — 2 Foreign exchange contracts Other current assets — 12 Foreign exchange contracts Other noncurrent assets — 6 Forward starting interest rate swap contracts Other current assets — 5 Derivatives designated as fair value hedges: Fixed-for-floating interest rate swap Other current assets 1 1 Fixed-for-floating interest rate swap Other noncurrent assets — 1 Derivatives designated as net investment hedges: Cross-currency interest rate swaps Other current assets — 20 Cross-currency interest rate swaps Other noncurrent assets 72 35 Total Derivative Assets $ 76 $ 98 Derivatives designated as cash flow hedges: Commodity contracts Payables and other current liabilities $ 3 $ 1 Commodity contracts Other long-term liabilities — 1 Foreign exchange contracts Payables and other current liabilities 8 1 Foreign exchange contracts Other long-term liabilities 4 — Derivatives designated as fair value hedges: Fixed-for-floating interest rate swap Long-term borrowings 5 — Derivatives designated as net investment hedges: Cross-currency interest rate swaps Other long-term liabilities — 5 Total Derivative Liabilities $ 20 $ 8 Total Net Derivative Assets (Liabilities) $ 56 $ 90 |
Cumulative basis adjustments for fair value hedges on balance sheet [Table Text Block] | As of December 31, 2022 and 2021, the following amounts were included within the Consolidated Statements of Financial Position related to cumulative basis adjustments for fair value hedges. (Dollars in millions) Carrying amount of the hedged liabilities Cumulative amount of fair value hedging loss adjustment included in the carrying amount of the hedged liability Line item in the Consolidated Statements of Financial Position in which the hedged item is included December 31, 2022 December 31, 2021 December 31, 2022 December 31, 2021 Borrowings due within one year $ — $ 697 $ — $ (2) Long-term borrowings 79 76 5 1 |
Derivative Instruments, Gain (Loss) [Table Text Block] | The following table presents the effect of the Company's hedging instruments on Other comprehensive income (loss), net of tax ("OCI") and financial performance for the twelve months ended December 31, 2022, 2021, and 2020: (Dollars in millions) Change in amount of after tax gain/(loss) recognized in OCI on Derivatives Pre-tax amount of gain/(loss) reclassified from AOCI into income December 31, December 31, Hedging Relationships 2022 2021 2020 2022 2021 2020 Derivatives in cash flow hedging relationships: Commodity contracts $ (11) $ 15 $ 17 $ 36 $ 20 $ (31) Foreign exchange contracts (2) 39 (36) 45 (7) 9 Forward starting interest rate and treasury lock swap contracts 10 9 8 (6) (9) (9) Non-derivatives in net investment hedging relationships (pre-tax): Net investment hedges 85 116 (130) — — — Derivatives in net investment hedging relationships (pre-tax): Cross-currency interest rate swaps 63 74 (88) — — — Cross-currency interest rate swaps excluded component (1) (12) 10 — — — The following table presents the effect of fair value and cash flow hedge accounting on the Consolidated Statements of Earnings, Comprehensive Income and Retained Earnings for 2022, 2021, and 2020. Location and Amount of Gain or (Loss) Recognized in Earnings on Fair Value and Cash Flow Hedging Relationships Twelve Months 2022 2021 2020 (Dollars in millions) Sales Cost of Sales Net interest expense Sales Cost of Sales Net interest expense Sales Cost of Sales Net interest expense Total amounts of income and expense line items presented in the Consolidated Statements of Earnings, Comprehensive Income and Retained Earnings in which the effects of fair value or cash flow hedges are recognized $ 10,580 $ 8,443 $ 182 $ 10,476 $ 7,976 $ 198 $ 8,473 $ 6,498 $ 210 The effects of fair value and cash flow hedging: Gain or (loss) on fair value hedging relationships: Interest contracts (fixed-for-floating interest rate swaps): Hedged items 2 2 1 Derivatives designated as hedging instruments (2) (2) (1) Gain or (loss) on cash flow hedging relationships: Interest contracts (forward starting interest rate and treasury lock swap contracts): Amount reclassified from AOCI into earnings (6) (9) (9) Commodity Contracts: Amount reclassified from AOCI into earnings 36 20 (31) Foreign Exchange Contracts: Amount reclassified from AOCI into earnings 45 (7) 9 |
RETIREMENT PLANS (Tables)
RETIREMENT PLANS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Retirement Benefits [Abstract] | |
Schedule of Change in Benefit Obligation and Plan Assets, Funded Status and Amounts Recognized in Balance Sheet and Accumulated Other Comprehensive Income (Loss) | Below is a summary balance sheet of the change in plan assets during 2022 and 2021, the funded status of the plans and amounts recognized in the Consolidated Statements of Financial Position. Summary of Changes Pension Plans Postretirement Benefit Plans 2022 2021 2022 2021 (Dollars in millions) U.S. Non-U.S. U.S. Non-U.S. Change in projected benefit obligation: Benefit obligation, beginning of year $ 1,892 $ 948 $ 2,050 $ 1,089 $ 665 $ 745 Service cost 25 11 26 19 — — Interest cost 45 14 37 12 14 12 Actuarial gain (328) (264) (49) (68) (127) (40) Curtailment gain — (3) — — — — Settlement (9) — (6) — — — Divestitures — — — (32) — (2) Plan participants' contributions — 1 — 1 2 9 Effect of currency exchange — (77) — (43) — — Federal subsidy on benefits paid — — — — — 1 Benefits paid (154) (28) (166) (30) (45) (60) Benefit obligation, end of year $ 1,471 $ 602 $ 1,892 $ 948 $ 509 $ 665 Change in plan assets: Fair value of plan assets, beginning of year $ 1,877 $ 924 $ 1,798 $ 938 $ 134 $ 144 Actual return on plan assets (312) (250) 247 31 (31) 7 Effect of currency exchange — (76) — (39) — — Company contributions 3 18 4 23 35 40 Reserve for third party contributions — — — — 11 (7) Plan participants' contributions — 1 — 1 2 9 Benefits paid (154) (28) (166) (30) (45) (60) Federal subsidy on benefits paid — — — — — 1 Settlements (9) — (6) — — — Fair value of plan assets, end of year $ 1,405 $ 589 $ 1,877 $ 924 $ 106 $ 134 Funded status at end of year $ (66) $ (13) $ (15) $ (24) $ (403) $ (531) Amounts recognized in the Consolidated Statements of Financial Position consist of: Other noncurrent assets $ — $ 23 $ 41 $ 42 $ 53 $ 62 Current liabilities (13) — (3) — (38) (38) Post-employment obligations (53) (36) (53) (66) (418) (555) Net amount recognized, end of year $ (66) $ (13) $ (15) $ (24) $ (403) $ (531) Accumulated benefit obligation $ 1,417 $ 578 $ 1,803 $ 910 Amounts recognized in accumulated other comprehensive income consist of: Prior service (credit) cost $ — $ (6) $ 1 $ (10) $ (37) $ (68) |
Defined Benefit Plan, Plan with Projected Benefit Obligation in Excess of Plan Assets [Table Text Block] | Information for pension plans with projected benefit obligations in excess of plan assets: (Dollars in millions) 2022 2021 U.S. Non-U.S. U.S. Non-U.S. Projected benefit obligation $ 1,471 $ 176 $ 175 $ 288 Fair value of plan assets 1,405 140 119 222 |
Defined Benefit Plan, Plan with Accumulated Benefit Obligation in Excess of Plan Assets [Table Text Block] | Information for pension plans with accumulated benefit obligations in excess of plan assets: (Dollars in millions) 2022 2021 U.S. Non-U.S. U.S. Non-U.S. Accumulated benefit obligation $ 245 $ 141 $ 161 $ 272 Fair value of plan assets 188 116 119 222 |
Schedule of Benefit Cost and Amounts Recognized in Other Comprehensive Income | Summary of Benefit Costs and Other Amounts Recognized in Other Comprehensive Income Pension Plans Postretirement Benefit Plans 2022 2021 2020 2022 2021 2020 (Dollars in millions) U.S. Non-U.S. U.S. Non-U.S. U.S. Non-U.S. Components of net periodic benefit (credit) cost: Service cost $ 25 $ 11 $ 26 $ 19 $ 25 $ 17 $ — $ — $ — Interest cost 45 14 37 12 57 15 14 12 19 Expected return on plan assets (128) (31) (126) (37) (135) (34) (4) (5) (5) Amortization of: Prior service (credit) cost 1 — — (1) 1 (1) (31) (37) (38) Mark-to-market pension and other postretirement benefits loss (gain), net (1) 112 10 (170) (62) 163 28 (103) (35) 49 Net periodic benefit (credit) cost $ 55 $ 4 $ (233) $ (69) $ 111 $ 25 $ (124) $ (65) $ 25 Other changes in plan assets and benefit obligations recognized in other comprehensive income: Curtailment gain $ — $ (4) $ — $ — $ — $ — $ — $ — $ — Current year prior service credit (cost) — — — — — 12 — — — Amortization of: Prior service (credit) cost 1 — — (1) 1 (1) (31) (37) (38) Total $ 1 $ (4) $ — $ (1) $ 1 $ 11 $ (31) $ (37) $ (38) |
Schedule of Assumptions Used to Develop the Projected Benefit Obligation | The assumptions used to develop the projected benefit obligation for Eastman's significant U.S. and non-U.S. defined benefit pension plans and U.S. postretirement benefit plans are provided in the following tables. Pension Plans Postretirement Benefit Plans 2022 2021 2020 2022 2021 2020 Weighted-average assumptions used to determine benefit obligations for years ended December 31: U.S. Non-U.S. U.S. Non-U.S. U.S. Non-U.S. Discount rate 5.58 % 4.27 % 2.88 % 1.57 % 2.48 % 1.08 % 5.55 % 2.83 % 2.38 % Interest crediting rate 5.48 % N/A 5.50 % N/A 5.50 % N/A N/A N/A N/A Rate of compensation increase 3.00 % 3.04 % 3.00 % 3.00 % 2.75 % 2.94 % N/A N/A N/A Health care cost trend Initial 6.00 % 6.00 % 6.25 % Decreasing to ultimate trend of 5.00 % 5.00 % 5.00 % in year 2030 2026 2026 Weighted-average assumptions used to determine net periodic cost for years ended December 31: U.S. Non-U.S. U.S. Non-U.S. U.S. Non-U.S. Discount rate 2.88 % 1.57 % 2.48 % 1.08 % 3.25 % 1.56 % 2.83 % 2.39 % 3.21 % Discount rate for service cost 2.95 % 1.31 % 2.57 % 1.08 % 3.31 % 1.56 % N/A 1.90 % 2.92 % Discount rate for interest cost 2.46 % 1.57 % 1.79 % 1.08 % 2.83 % 1.56 % 2.35 % 1.74 % 2.80 % Expected return on assets 7.07 % 3.81 % 7.29 % 4.04 % 7.37 % 4.26 % 3.50 % 3.75 % 3.75 % Rate of compensation increase 3.00 % 3.00 % 2.75 % 2.94 % 3.25 % 2.94 % N/A N/A 3.25 % Interest crediting rate 5.50 % N/A 5.50 % N/A 5.52 % N/A N/A N/A N/A Health care cost trend Initial 6.00 % 6.25 % 6.50 % Decreasing to ultimate trend of 5.00 % 5.00 % 5.00 % in year 2026 2026 2026 |
Schedule of Fair Value Measurements of Pension Plan Assets on a Recurring Basis | The following tables reflect the fair value of the defined benefit pension plans assets. (Dollars in millions) Fair Value Measurements at December 31, 2022 Description Total Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs Pension Assets: U.S. Non-U.S. U.S. Non-U.S. U.S. Non-U.S. U.S. Non-U.S. Cash and Cash Equivalents (1) $ 27 $ 46 $ 27 $ 46 $ — $ — $ — $ — Public Equity - United States (2) 4 — 4 — — — — — Other Investments (3) — 45 — — — — — 45 Total Assets at Fair Value $ 31 $ 91 $ 31 $ 46 $ — $ — $ — $ 45 Investments Measured at Net Asset Value (4) 1,374 498 Total Assets $ 1,405 $ 589 (Dollars in millions) Fair Value Measurements at December 31, 2021 Description Total Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs Pension Assets: U.S. Non-U.S. U.S. Non-U.S. U.S. Non-U.S. U.S. Non-U.S. Cash and Cash Equivalents (1) $ 45 $ 37 $ 45 $ 37 $ — $ — $ — $ — Public Equity - United States (2) 3 — 3 — — — — — Other Investments (3) — 59 — — — — — 59 Total Assets at Fair Value $ 48 $ 96 $ 48 $ 37 $ — $ — $ — $ 59 Investments Measured at Net Asset Value (4) 1,829 828 Total Assets $ 1,877 $ 924 (1) Cash and Cash Equivalents: Funds generally invested in actively managed collective trust funds or interest bearing accounts. (2) Public Equity - United States: Common stock equity securities which are primarily valued using a market approach based on the quoted market prices. (3) Other Investments: Primarily consist of insurance contracts which are generally valued using a crediting rate that approximates market returns and investments in underlying securities whose market values are unobservable and determined using pricing models, discounted cash flow methodologies, or similar techniques. (4) Investments Measured at Net Asset Value: The underlying debt, public equity, and public real asset investments in this category are generally held in common trust funds, which are either actively or passively managed investment vehicles, that are valued at the net asset value per unit/share multiplied by the number of units/shares held as of the measurement date. The other alternative investments in this category are valued under the practical expedient method which is based on the most recently reported net asset value provided by the management of each private investment fund, adjusted as appropriate, for any lag between the date of the financial reports and the measurement date. The following tables reflect the fair value of the postretirement benefit plan assets. The postretirement benefit plan is for the voluntary employees' beneficiary association ("VEBA") trust the Company assumed as part of the Solutia acquisition. (Dollars in millions) Fair Value Measurements at Description Total Fair Value Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Postretirement Benefit Plan Assets: Cash and Cash Equivalents (1) $ 5 $ 5 $ — $ — Debt (2) : Fixed Income (U.S.) 62 — 62 — Fixed Income (Non-U.S.) 21 — 21 — Total $ 88 $ 5 $ 83 $ — (Dollars in millions) Fair Value Measurements at Description Total Fair Value Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Postretirement Benefit Plan Assets: Cash and Cash Equivalents (1) $ — $ — $ — $ — Debt (2) : Fixed Income (U.S.) 79 — 79 — Fixed Income (Non-U.S.) 29 — 29 — Total $ 108 $ — $ 108 $ — (1) Cash and Cash Equivalents: Funds generally invested in actively managed collective trust funds or interest bearing accounts. (2) Debt: The fixed income securities are primarily valued upon a market approach, using matrix pricing and considering a security's relationship to other securities for which quoted prices in an active market may be available, or an income approach, converting future cash flows to a single present value amount. Inputs used in developing fair value estimates include reported trades, broker quotes, benchmark yields, and base spreads. |
Schedule of Pension Plan Assets Classified within Level 3 of the Fair Value Hierarchy | The Company valued assets with unobservable inputs (Level 3), primarily insurance contracts, using a crediting rate that approximates market returns and investments in underlying securities whose market values are unobservable and determined using pricing models, discounted cash flow methodologies, or similar techniques. Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Other Investments (1) (Dollars in millions) Non-U.S. Pension Plans Balance at December 31, 2020 $ 68 Unrealized losses (9) Balance at December 31, 2021 59 Unrealized losses (14) Balance at December 31, 2022 $ 45 (1) Primarily consists of insurance contracts. |
Schedule of US and Non-US Pension Plans Asset Target Allocation by Category | The following table reflects the target allocation for the Company's U.S. and non-U.S. pension and postretirement benefit plans assets for 2023 and the asset allocation at December 31, 2022 and 2021, by asset category. U.S. Pension Plans Non-U.S. Pension Plans Postretirement Benefit Plan 2023 Target Allocation Plan Assets at Plan Assets at 2023 Target Allocation Plan Assets at Plan Assets at 2023 Target Allocation Plan Assets at Plan Assets at Asset category Equity securities 39% 36% 38% 21% 20% 22% —% —% —% Debt securities 38% 39% 43% 60% 62% 59% 100% 100% 100% Real estate 8% 7% 3% 4% 4% 4% —% —% —% Other investments (1) 15% 18% 16% 15% 14% 15% —% —% —% Total 100% 100% 100% 100% 100% 100% 100% 100% 100% (1) U.S. primarily consists of private equity and natural resource and energy related limited partnership investments and public real assets. Non-U.S. primarily consists of annuity contracts and alternative investments. |
Schedule Benefits Expected to be Paid from Pension Plans and Benefits | The estimated future benefit payments, reflecting expected future service, as appropriate, are as follows: Pension Plans Postretirement (Dollars in millions) U.S. Non-U.S. 2023 $ 230 $ 28 $ 47 2024 123 26 47 2025 122 28 47 2026 121 31 46 2027 126 35 45 2028-2032 604 187 208 |
LEASES AND OTHER COMMITMENTS _2
LEASES AND OTHER COMMITMENTS LEASES AND OTHER COMMITMENTS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Lessee, Operating Lease, Liability, Maturity [Table Text Block] | As of December 31, 2022, reconciliation of lease payments and operating lease liabilities is provided below: (Dollars in millions) Operating lease liabilities 2023 $ 58 2024 46 2025 37 2026 26 2027 17 2028 and beyond 38 Total lease payments 222 Less: amounts of lease payments representing interest 20 Present value of future lease payments 202 Less: current obligations under leases 52 Long-term lease obligations $ 150 As of December 31, 2021, reconciliation of lease payments and operating lease liabilities is provided below: (Dollars in millions) Operating lease liabilities 2022 $ 55 2023 44 2024 31 2025 24 2026 18 2027 and beyond 53 Total lease payments 225 Less: amounts of lease payments representing interest 18 Present value of future lease payments 207 Less: current obligations under leases 50 Long-term lease obligations $ 157 |
Lease, Cost [Table Text Block] | (Dollars in millions) 2022 2021 2020 Lease costs: Operating lease costs $ 67 $ 71 $ 73 Short-term lease costs 45 40 37 Sublease income (13) (4) (4) Total $ 99 $ 107 $ 106 December 31, (Dollars in millions) 2022 2021 Other operating lease information: Cash paid for amounts included in the measurement of lease liabilities $ 67 $ 69 Right-to-use assets obtained in exchange for new lease liabilities $ 69 $ 110 Weighted-average remaining lease term, in years 6 6 Weighted-average discount rate 3.2 % 2.7 % |
Other Commitments [Table Text Block] | Eastman's obligations are summarized in the following table. (Dollars in millions) Payments Due for Period Debt Securities Credit Facilities and Other Interest Payable Purchase Obligations Operating Leases Other Liabilities Total 2023 $ 800 $ 326 $ 180 $ 166 $ 58 $ 207 $ 1,737 2024 241 — 162 170 46 80 699 2025 693 — 143 140 37 88 1,101 2026 530 — 131 118 26 86 891 2027 196 499 97 112 17 102 1,023 2028 and beyond 1,866 — 1,091 2,366 38 912 6,273 Total $ 4,326 $ 825 $ 1,804 $ 3,072 $ 222 $ 1,475 $ 11,724 |
ENVIRONMENTAL MATTERS (Tables)
ENVIRONMENTAL MATTERS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Environmental Matters [Abstract] | |
Schedule of Environmental Liabilities, Current and Non-current | (Dollars in millions) December 31, 2022 2021 Environmental contingencies, current $ 10 $ 20 Environmental contingencies, long-term 264 261 Total $ 274 $ 281 |
Schedule of Changes to Environmental Remediation Liabilities | (Dollars in millions) Environmental Remediation Liabilities Balance at December 31, 2020 $ 257 Changes in estimates recognized in earnings and other 9 Cash reductions (13) Balance at December 31, 2021 253 Changes in estimates recognized in earnings and other 6 Cash reductions (14) Balance at December 31, 2022 $ 245 |
STOCKHOLDERS' EQUITY (Tables)
STOCKHOLDERS' EQUITY (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Reconciliation of the Changes in Stockholders' Equity | A reconciliation of the changes in stockholders' equity for 2022, 2021, and 2020 is provided below: (Dollars in millions) Common Stock at Par Value Additional Paid-in Capital Retained Earnings Accumulated Other Comprehensive Income (Loss) Treasury Stock at Cost Total Eastman Stockholders' Equity Noncontrolling Interest Total Equity Balance at December 31, 2019 $ 2 $ 2,105 $ 7,965 $ (214) $ (3,900) $ 5,958 $ 74 $ 6,032 Net Earnings — — 478 — — 478 11 489 Cash Dividends (1) — — (363) — — (363) — (363) Other Comprehensive (Loss) — — — (59) — (59) — (59) Share-Based Compensation Expense (2) — 44 — — — 44 — 44 Stock Option Exercises — 36 — — — 36 — 36 Other (3) — (11) — — — (11) 2 (9) Share Repurchase — — — — (60) (60) — (60) Distributions to noncontrolling interest — — — — — — (2) (2) Balance at December 31, 2020 $ 2 $ 2,174 $ 8,080 $ (273) $ (3,960) $ 6,023 $ 85 $ 6,108 Net Earnings — — 857 — — 857 10 867 Cash Dividends (1) — — (380) — — (380) — (380) Other Comprehensive Income — — — 91 — 91 — 91 Share-Based Compensation Expense (2) — 70 — — — 70 — 70 Stock Option Exercises — 62 — — — 62 — 62 Other (3) — (19) — — — (19) 3 (16) Share Repurchase (4) — (100) — — (900) (1,000) — (1,000) Distributions to noncontrolling interest — — — — — — (14) (14) Balance at December 31, 2021 $ 2 $ 2,187 $ 8,557 $ (182) $ (4,860) $ 5,704 $ 84 $ 5,788 Net Earnings — — 793 — — 793 3 796 Cash Dividends (1) — — (377) — — (377) — (377) Other Comprehensive Income — — — (23) — (23) — (23) Share-Based Compensation Expense (2) — 69 — — — 69 — 69 Stock Option Exercises — 9 — — — 9 — 9 Other (3) — (20) — — — (20) (4) (24) Share Repurchase (5) — 70 — — (1,072) (1,002) — (1,002) Balance at December 31, 2022 $ 2 $ 2,315 $ 8,973 $ (205) $ (5,932) $ 5,153 $ 83 $ 5,236 (1) Cash dividends includes cash dividends paid and dividends declared, but unpaid. (2) Share-based compensation expense is the fair value of share-based awards. (3) Additional paid-in capital includes value of shares withheld for employees' taxes on vesting of share-based compensation awards. (4) Additional paid-capital in 2021 included payment for repurchase of shares under the 2021 ASR which had not yet been delivered. |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | For years ended December 31, (In millions, except per share amounts) 2022 2021 2020 Numerator Net earnings attributable to Eastman $ 793 $ 857 $ 478 Denominator Weighted average shares used for basic EPS 123.5 134.9 135.5 Dilutive effect of stock options and other award plans 1.4 2.2 1.0 Weighted average shares used for diluted EPS 124.9 137.1 136.5 EPS (1) Basic $ 6.42 $ 6.35 $ 3.53 Diluted $ 6.35 $ 6.25 $ 3.50 (1) EPS is calculated using whole dollars and shares. |
Schedule of Shares of Common Stock Issued | For years ended December 31, 2022 2021 2020 Balance at beginning of year 221,809,309 220,641,506 219,638,646 Issued for employee compensation and benefit plans 539,248 1,167,803 1,002,860 Balance at end of year 222,348,557 221,809,309 220,641,506 |
Schedule of Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) Cumulative Translation Adjustment Benefit Plans Unrecognized Prior Service Credits Unrealized Gains (Losses) on Cash Flow Hedges Unrealized Losses on Investments Accumulated Other Comprehensive Income (Loss) Balance at December 31, 2020 $ (293) $ 87 $ (66) $ (1) $ (273) Period change 56 (28) 63 — 91 Balance at December 31, 2021 (237) 59 (3) (1) (182) Period change 7 (27) (3) — (23) Balance at December 31, 2022 $ (230) $ 32 $ (6) $ (1) $ (205) |
Schedule of Components of Comprehensive Income (Loss) Before Tax and Net of Tax Effects | Components of total other comprehensive income (loss) recorded in the Consolidated Statements of Earnings, Comprehensive Income and Retained Earnings are presented below, before tax and net of tax effects: For years ended December 31, 2022 2021 2020 (Dollars in millions) Before Tax Net of Tax Before Tax Net of Tax Before Tax Net of Tax Change in cumulative translation adjustment $ 7 $ 7 $ 56 $ 56 $ (29) $ (29) Defined benefit pension and other postretirement benefit plans: Prior service credit arising during the period — — — — 12 9 Amortization of unrecognized prior service credits included in net periodic costs (34) (27) (38) (28) (38) (28) Derivatives and hedging: Unrealized gain (loss) during period 71 53 88 66 (46) (34) Reclassification adjustment for (gains) losses included in net income, net (75) (56) (4) (3) 31 23 Total other comprehensive income (loss) $ (31) $ (23) $ 102 $ 91 $ (70) $ (59) For additional information regarding the impact of reclassifications into earnings, refer to Note 10, "Derivative and Non-Derivative Financial Instruments", and Note 11, "Retirement Plans". |
ASSET IMPAIRMENTS AND RESTRUC_2
ASSET IMPAIRMENTS AND RESTRUCTURING (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Restructuring Costs and Asset Impairment Charges [Abstract] | |
Schedule of Restructuring and Related Charges | Components of asset impairments and restructuring charges, net, are presented below: For years ended December 31, (Dollars in millions) 2022 2021 2020 Tangible Asset Impairments CI & AFP - Singapore (1) $ — $ 3 $ — Site optimizations Other - Tire additives (2) — 12 5 AM - Advanced interlayers (3) — 1 — AM - Performance films (4) — — 5 AFP - Animal nutrition (5) — — 3 Discontinuation of growth initiatives (6) — — 8 — 16 21 Loss (Gain) on Sale of Previously Impaired Assets Site optimizations AM - Advanced interlayers (3) 16 — — Other - Tire additives (2) (1) — — AFP - Animal nutrition (5) — (1) — 15 (1) — Intangible Asset Impairments Other - Tradenames (7) — — 123 AFP - Customer relationships (8) — — 2 — — 125 Severance Charges Cost reduction and business improvement actions (9) 22 1 47 CI & AFP - Singapore (1) — — 6 Site optimizations Other - Tire additives (2) — — 3 AM - Advanced interlayers (3) — 1 5 AM - Performance films (4) 1 — 3 AFP - Animal nutrition (5) — — 1 Fibers - Acetate Yarn (10) 7 — — 30 2 65 Other Restructuring Costs Cost reduction and business improvement actions (9) — — 14 Discontinuation of growth initiatives contract termination fees (6) — — 4 CI & AFP - Singapore (1) 3 17 — Site optimizations Other - Tire additives (2) — 6 — AM - Advanced interlayers (3) 2 5 — AM - Performance films (4) — 2 — AFP - Animal nutrition (5) — — (2) Fibers - Acetate Yarn (10) 2 — — 7 30 16 Total $ 52 $ 47 $ 227 (1) Site closure costs of $3 million in 2022 in the CI segment, asset impairment charges in 2021 of $2 million and $1 million in the CI segment and the AFP segment, respectively, and severance charges in 2020 of $5 million and $1 million in the CI segment and the AFP segment, respectively, and site closure costs, including contract termination fees, in 2021 of $14 million and $3 million in the CI segment and the AFP segment, respectively, resulting from closure of the Singapore manufacturing site. (2) Asset impairment charges of $8 million in 2021 for assets associated with divested rubber additives. Gain on sale of previously impaired assets in 2022, asset impairment charges of $4 million, and site closure costs in 2021, from the previously reported closure of a tire additives manufacturing facility in Asia Pacific as part of site optimization. Fixed asset impairment charges and severance charges in 2020 from the closure of a tire additives manufacturing facility in Asia Pacific as part of site optimization. (3) Asset impairment charges, loss on transfer of previously impaired assets to a third party, severance charges, and site closure costs in the Advanced Materials ("AM") segment due to the closure of an advanced interlayers manufacturing facility in North America as part of site optimization. In addition, accelerated depreciation of $4 million and $8 million was recognized in "Cost of sales" in the Consolidated Statements of Earnings, Comprehensive Income and Retained Earnings in 2021 and 2020, respectively, related to the closure of this facility. (4) Severance charges in 2022 for the closure of a performance films research and development facility, fixed asset impairments, severance charges, and site closure costs in 2021 and 2020 from the closure of a performance films manufacturing facility in North America as part of site optimization. (5) Fixed asset impairments, severance charges, and other restructuring gains in 2020 in from the closure of an animal nutrition manufacturing facility in Asia Pacific as part of site optimization, and in 2021 a gain from the sale of the previously impaired assets. (6) Fixed asset impairments and contract termination fees resulting from management's decision to discontinue growth initiatives for polyester based microfibers, including Avra ™ performance fibers, the financial results of which were not allocated to an operating segment and reported in "Other". (7) Intangible asset impairment charges in the now divested tire additives business to reduce the carrying values of the Crystex ™ and Santoflex ™ tradenames to the estimated fair values. The estimated fair values were determined using an income approach, specifically, the relief from royalty method, including some unobservable inputs. The impairments are primarily the result of weakened demand in transportation markets impacted by COVID-19 and increased competitive pricing pressure as a result of global capacity increases. (8) Intangible asset impairment charge for customer relationships. (9) Severance charges in 2022 and severance charges and related costs in 2020 as part of business improvement and cost reduction initiatives which was reported in "Other". (10) Severance charges and site closure costs related to closure of an acetate yarn manufacturing facility in Europe. |
Schedule of Changes to Restructuring Reserve and Related Activities | Reconciliations of the beginning and ending restructuring liability amounts are as follows: (Dollars in millions) Balance at Provision/ Adjustments Non-cash Reductions/ Additions Cash Balance at Severance costs $ 12 $ 31 $ — $ (9) $ 34 Site closure & restructuring costs 5 21 1 (26) 1 Total $ 17 $ 52 $ 1 $ (35) $ 35 (Dollars in millions) Balance at Provision/ Adjustments Non-cash Reductions/ Additions Cash Balance at Non-cash charges $ — $ 16 $ (16) $ — $ — Severance costs 65 2 (1) (54) 12 Site closure & restructuring costs 14 29 (9) (29) 5 Total $ 79 $ 47 $ (26) $ (83) $ 17 (Dollars in millions) Balance at Provision/ Adjustments Non-cash Reductions/ Additions Cash Balance at Non-cash charges $ — $ 145 $ (145) $ — $ — Severance costs 17 65 1 (18) 65 Site closure & restructuring costs 11 17 — (14) 14 Total $ 28 $ 227 $ (144) $ (32) $ 79 |
OTHER CHARGES (INCOME), NET (Ta
OTHER CHARGES (INCOME), NET (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Other Income and Expenses [Abstract] | |
Schedule of Other Nonoperating Income (Expense) | For years ended December 31, (Dollars in millions) 2022 2021 2020 Foreign exchange transaction losses (gains), net (1) $ 16 $ 10 $ 16 (Income) loss from equity investments and other investment (gains) losses, net (19) (16) (15) Other, net (2) (3) (11) 7 Other (income) charges, net $ (6) $ (17) $ 8 |
SHARE-BASED COMPENSATION PLAN_2
SHARE-BASED COMPENSATION PLANS AND AWARDS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Assumptions Used in the Determination of Fair Value of Stock Options Awarded | The weighted average assumptions used in the determination of fair value for stock options awarded in 2022, 2021, and 2020 are provided in the table below: Assumptions 2022 2021 2020 Expected volatility rate 28.98% 28.99% 21.56% Expected dividend yield 2.57% 3.58% 3.30% Average risk-free interest rate 2.35% 0.95% 0.94% Expected term years 6.4 6.0 5.9 |
Schedule of Activity of Stock Option Awards | A summary of the activity of the Company's stock option awards for 2022, 2021, and 2020 is presented below: 2022 2021 2020 Options Weighted-Average Exercise Price Options Weighted-Average Exercise Price Options Weighted-Average Exercise Price Outstanding at beginning of year 3,168,500 $ 84 3,526,600 $ 79 3,479,300 $ 80 Granted 443,100 113 449,700 109 622,000 62 Exercised (122,700) 74 (807,200) 77 (568,800) 64 Cancelled, forfeited, or expired (9,700) 87 (600) 74 (5,900) 82 Outstanding at end of year 3,479,200 $ 88 3,168,500 $ 84 3,526,600 $ 79 Options exercisable at year-end 2,534,400 2,047,500 2,192,300 Available for grant at end of year 8,355,640 9,866,480 4,046,748 |
Schedule of Remaining Contractual Term and Weighted Average Exercise Price of Stock Options Outstanding and Exercisable | The following table provides the remaining contractual term and weighted average exercise prices of stock options outstanding and exercisable at December 31, 2022: Options Outstanding Options Exercisable Range of Exercise Prices Number Outstanding at Weighted-Average Remaining Contractual Life (Years) Weighted-Average Exercise Price Number Exercisable at Weighted-Average Exercise Price $61-$75 1,037,200 5.2 $ 65 831,800 $ 66 $76-$90 1,099,700 5.3 82 1,018,600 82 $91-$105 535,800 5.2 104 535,800 104 $106-$121 806,500 8.6 114 148,200 109 3,479,200 6.0 $ 88 2,534,400 $ 83 |
Schedule of Summary of Status of Nonvested Options | A summary of the changes in the Company's nonvested options during the year ended December 31, 2022 is presented below: Nonvested Options Number of Options Weighted-Average Grant Date Fair Value Nonvested at January 1, 2022 1,121,000 $13.88 Granted 443,100 $26.80 Vested (611,900) $12.99 Cancelled, forfeited, or expired (7,400) $14.90 Nonvested options at December 31, 2022 944,800 $20.50 |
SUPPLEMENTAL CASH FLOW INFORM_2
SUPPLEMENTAL CASH FLOW INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Supplemental Cash Flow Information [Abstract] | |
Schedule of Cash Flow Supplemental Disclosures Other Items | Included in the line item "Other items, net" of the "Operating activities" section of the Consolidated Statements of Cash Flows are specific changes to certain balance sheet accounts as follows: For years ended December 31, (Dollars in millions) 2022 2021 2020 Current assets $ 22 $ (57) $ (1) Other assets 12 (32) (14) Current liabilities 180 109 5 Long-term liabilities and equity 76 69 15 Total $ 290 $ 89 $ 5 |
Schedule of Cash Paid for Interest and Income Taxes and Noncash Investing and Financing Activities | For years ended December 31, (Dollars in millions) 2022 2021 2020 Interest, net of amounts capitalized $ 179 $ 170 $ 191 Income taxes, net of refunds 78 122 179 Non-cash investing activities: Outstanding trade payables related to capital expenditures 64 22 20 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Schedule of Segment Information | For years ended December 31, (Dollars in millions) 2022 2021 2020 Sales by Segment Advanced Materials $ 3,207 $ 3,027 $ 2,524 Additives & Functional Products 3,165 2,708 2,095 Chemical Intermediates 3,026 2,849 2,090 Fibers 1,022 900 837 Total Sales by Operating Segment 10,420 9,484 7,546 Other (1) 160 992 927 Total Sales $ 10,580 $ 10,476 $ 8,473 (1) "Other" includes sales revenue from the divested rubber additives and adhesives resins businesses. For years ended December 31, (Dollars in millions) 2022 2021 2020 Earnings (Loss) Before Interest and Taxes by Segment Advanced Materials $ 376 $ 519 $ 427 Additives & Functional Products 483 448 382 Chemical Intermediates 409 445 166 Fibers 131 142 180 Total EBIT by Operating Segment 1,399 1,554 1,155 Other (1) Growth initiatives and businesses not allocated to operating segments (196) (49) (32) Pension and other postretirement benefit plans income (expense), net not allocated to operating segments 70 375 (156) Asset impairments and restructuring charges, net (21) (18) (206) Net gain (loss) on divested businesses and related transaction costs (61) (570) — Steam line incident costs, net of insurance proceeds (39) — — Other income (charges), net not allocated to operating segments 7 (11) (20) Total EBIT $ 1,159 $ 1,281 $ 741 (1) "Other" includes EBIT of $6 million in 2022 and loss before interest and taxes of $502 million and $70 million in 2021 and 2020, respectively, from the divested rubber additives and adhesives resins businesses. December 31, (Dollars in millions) 2022 2021 Assets by Segment (1) Advanced Materials $ 4,967 $ 4,661 Additives & Functional Products 4,127 4,188 Chemical Intermediates 2,695 2,703 Fibers 1,046 972 Total Assets by Operating Segment 12,835 12,524 Corporate Assets 1,832 2,995 Total Assets $ 14,667 $ 15,519 (1) Segment assets include accounts receivable, inventory, fixed assets, goodwill, and intangible assets. As disclosed in Note 1, "Significant Accounting Policies", December 31, 2021 Assets by Segment have been recast from Note 20, "Segment and Regional Sales Information", to the Company's 2021 Annual Report on Form 10-K . Prior to the recast, December 31, 2021 assets reported for the AFP segment were revised from $4,643 million to $5,195 million, and assets reported for Corporate and Other Assets were revised from $2,540 million to $1,988 million. Total assets were not impacted by the misclassification. For years ended December 31, (Dollars in millions) 2022 2021 2020 Depreciation and Amortization Expense by Segment Advanced Materials $ 163 $ 177 $ 187 Additives & Functional Products 134 132 125 Chemical Intermediates 112 111 108 Fibers 61 60 56 Total Depreciation and Amortization Expense by Operating Segment 470 480 476 Other (1) 7 58 98 Total Depreciation and Amortization Expense $ 477 $ 538 $ 574 (1) "Other" includes depreciation and amortization expense from the divested rubber additives and adhesives resins businesses. For years ended December 31, (Dollars in millions) 2022 2021 2020 Capital Expenditures by Segment Advanced Materials $ 341 $ 280 $ 140 Additives & Functional Products 98 97 79 Chemical Intermediates 98 124 84 Fibers 43 33 31 Total Capital Expenditures by Operating Segment 580 534 334 Other (1) 31 21 49 Total Capital Expenditures $ 611 $ 555 $ 383 (1) "Other" includes capital expenditures from the divested rubber additives and adhesives resins businesses. Sales are attributed to geographic areas based on customer location and long-lived assets are attributed to geographic areas based on asset location. (Dollars in millions) For years ended December 31, Geographic Information 2022 2021 2020 Sales United States $ 4,738 $ 4,397 $ 3,437 All foreign countries 5,842 6,079 5,036 Total $ 10,580 $ 10,476 $ 8,473 December 31, 2022 2021 2020 Net properties United States $ 4,180 $ 3,847 $ 4,106 All foreign countries 980 1,149 1,443 Total $ 5,160 $ 4,996 $ 5,549 |
Revenue from External Customers by Products and Services [Table Text Block] | Percentage of Total Segment Sales Product Lines 2022 2021 2020 Advanced Interlayers 29% 29% 29% Performance Films 20% 20% 20% Specialty Plastics 51% 51% 51% Total 100% 100% 100% Percentage of Total Segment Sales Product Lines 2022 2021 2020 Animal Nutrition 14% 12% 12% Care Additives 34% 32% 34% Coatings Additives 34% 38% 36% Specialty Fluids 18% 18% 18% Total 100% 100% 100% Percentage of Total Segment Sales Product Lines 2022 2021 2020 Functional Amines 24% 21% 23% Intermediates 56% 57% 57% Plasticizers 20% 22% 20% Total 100% 100% 100% Percentage of Total Segment Sales Product Lines 2022 2021 2020 Acetate Tow 64% 64% 70% Acetate Yarn 14% 14% 9% Acetyl Chemical Products 16% 16% 16% Nonwovens 6% 6% 5% Total 100% 100% 100% |
Revenue from External Customers by Geographic Areas [Table Text Block] | Percentage of Total Segment Sales Sales by Customer Location 2022 2021 2020 United States and Canada 33% 30% 34% Asia Pacific 35% 38% 33% Europe, Middle East, and Africa 26% 27% 27% Latin America 6% 5% 6% Total 100% 100% 100% Percentage of Total Segment Sales Sales by Customer Location 2022 2021 2020 United States and Canada 39% 38% 38% Asia Pacific 24% 27% 26% Europe, Middle East, and Africa 31% 29% 30% Latin America 6% 6% 6% Total 100% 100% 100% Percentage of Total Segment Sales Sales by Customer Location 2022 2021 2020 United States and Canada 70% 70% 65% Asia Pacific 7% 8% 13% Europe, Middle East, and Africa 17% 16% 16% Latin America 6% 6% 6% Total 100% 100% 100% Percentage of Total Segment Sales Sales by Customer Location 2022 2021 2020 United States and Canada 25% 25% 26% Asia Pacific 35% 35% 32% Europe, Middle East, and Africa 37% 37% 39% Latin America 3% 3% 3% Total 100% 100% 100% |
RESERVE ROLLFORWARDS (Tables)
RESERVE ROLLFORWARDS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule of Valuation and Qualifying Accounts | Valuation and Qualifying Accounts (Dollars in millions) Additions Balance at January 1, Charges (Credits) to Cost and Expense Other Accounts Balance at December 31, 2022 Reserve for: Credit losses $ 17 $ (2) $ — $ — $ 15 LIFO inventory 365 128 — — 493 Non-environmental asset retirement obligations 51 2 (1) 1 51 Environmental contingencies 281 7 — 14 274 Deferred tax valuation allowance 339 (79) (2) — 258 $ 1,053 $ 56 $ (3) $ 15 $ 1,091 (Dollars in millions) Additions Balance at January 1, Charges (Credits) to Cost and Expense Other Accounts (1) Deductions (2) Balance at December 31, 2021 Reserve for: Credit losses $ 14 $ 4 $ (1) $ — $ 17 LIFO inventory 226 159 (30) (10) 365 Non-environmental asset retirement obligations 51 2 (1) 1 51 Environmental contingencies 285 11 — 15 281 Deferred tax valuation allowance 393 (55) 1 — 339 $ 969 $ 121 $ (31) $ 6 $ 1,053 (1) Other accounts in the reserve for LIFO inventory was due to assets held for sale classification resulting from the Company entering into a definitive agreement to sell the adhesives resins business. (2) Deductions in the reserve for LIFO inventory was the result of the divestiture of rubber additives. For additional information, see Note 2, "Divestitures". (Dollars in millions) Additions Balance at January 1, Charges (Credits) to Cost and Expense Other Accounts Balance at December 31, 2020 Reserve for: Credit losses $ 11 $ 4 $ — $ 1 $ 14 LIFO inventory 248 (22) — — 226 Non-environmental asset retirement obligations 48 2 1 — 51 Environmental contingencies 287 8 — 10 285 Deferred tax valuation allowance 453 (61) 1 — 393 $ 1,047 $ (69) $ 2 $ 11 $ 969 |
SIGNIFICANT ACCOUNTING POLICI_3
SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Revenue Recognition [Abstract] | ||
Contract with Customer, Liability | $ 18 | $ 14 |
Contract with Customer, Asset, after Allowance for Credit Loss | $ 93 | 82 |
Environmental Costs [Abstract] | ||
Expected Payment Period of Environmental Contingencies | 30 years | |
Accounts receivable and allowance for doubtful accounts [Abstract] | ||
Allowance for doubtful accounts | $ 15 | 17 |
Working Capital Management and Off Balance Sheet Arrangements [Abstract] | ||
Receivable Sold Under Factoring Arrangement | $ 2,500 | $ 1,200 |
Building And Building Equipment [Member] | ||
Depreciation [Abstract] | ||
Property, Plant and Equipment, Estimated Useful Lives | 20 to 50 years | |
Machinery and Equipment [Member] | ||
Depreciation [Abstract] | ||
Property, Plant and Equipment, Estimated Useful Lives | 3 to 33 years | |
Computer software [Member] | ||
Depreciation [Abstract] | ||
Property, Plant and Equipment, Estimated Useful Lives | 3 to 5 years | |
Office furniture and fixtures and computer equipment [Member] | ||
Depreciation [Abstract] | ||
Property, Plant and Equipment, Estimated Useful Lives | 5 to 10 years | |
Vehicles, railcars, and general machinery and equipment [Member] | ||
Depreciation [Abstract] | ||
Property, Plant and Equipment, Estimated Useful Lives | 5 to 20 years | |
Manufacturing-related improvements [Member] | ||
Depreciation [Abstract] | ||
Property, Plant and Equipment, Estimated Useful Lives | 20 to 33 years |
DIVESTITURES (Details)
DIVESTITURES (Details) - USD ($) $ in Millions | 12 Months Ended | |||||
Dec. 31, 2022 | Nov. 01, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Apr. 01, 2022 | Nov. 01, 2021 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Liabilities held for sale | $ 0 | $ 91 | ||||
Loss on divested businesses | (43) | (552) | $ 0 | |||
Tire Additives Disposal Group | Disposal Group, Disposed of by Sale, Not Discontinued Operations | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Disposal Group, Including Discontinued Operation, Accounts, Notes and Loans Receivable, Net | $ 107 | |||||
Disposal Group, Including Discontinued Operation, Inventory, Current | 94 | |||||
Disposal Group, Including Discontinued Operation, Other Assets, Current | 26 | |||||
Disposal Group, Including Discontinued Operation, Property, Plant and Equipment, Current | 298 | |||||
Disposal Group, Including Discontinued Operation, Goodwill, Current | 398 | |||||
Disposal Group, Including Discontinued Operation, Intangible Assets, Current | 381 | |||||
Disposal Group, Including Discontinued Operation, Assets, Current | 1,304 | |||||
Disposal Group, Including Discontinued Operations, Liabilities, Current, Payables | 48 | |||||
Disposal Group, Including Discontinued Operation, Postretirement Plan Benefit Obligation | 34 | |||||
Disposal Group, Including Discontinued Operations, Liabilities, Current, Other Liabilities | 18 | |||||
Liabilities held for sale | 100 | |||||
Disposal Group Including Discontinued Operation, Assets, Net, Current | 1,204 | |||||
Disposal Group, Including Discontinued Operation, Consideration | 640 | |||||
Disposal Group, Deferred Gain on Disposal | $ 75 | |||||
Loss on divested businesses | (42) | $ (594) | ||||
Disposal Group, Including Discontinued Operation, Foreign Currency Translation Gains (Losses) | $ 23 | |||||
Disposal Group, Not Discontinued Operation, Gain (Loss) on Disposal, Statement of Income or Comprehensive Income [Extensible Enumeration] | Loss on divested businesses | |||||
Disposal Group, Including Discontinued Operations, Transaction Costs | 5 | 15 | ||||
Adhesives Resins Disposal Group | Disposal Group, Disposed of by Sale, Not Discontinued Operations | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Disposal Group, Including Discontinued Operation, Accounts, Notes and Loans Receivable, Net | $ 129 | |||||
Disposal Group, Including Discontinued Operation, Inventory, Current | 163 | |||||
Disposal Group, Including Discontinued Operation, Other Assets, Current | 21 | |||||
Disposal Group, Including Discontinued Operation, Property, Plant and Equipment, Current | 303 | |||||
Disposal Group, Including Discontinued Operation, Goodwill, Current | 399 | |||||
Disposal Group, Including Discontinued Operation, Intangible Assets, Current | 14 | |||||
Disposal Group, Including Discontinued Operation, Assets, Current | 1,029 | |||||
Disposal Group, Including Discontinued Operations, Liabilities, Current, Payables | 83 | |||||
Disposal Group, Including Discontinued Operations, Liabilities, Current, Post Employment Obligations | 7 | |||||
Disposal Group, Including Discontinued Operations, Liabilities, Current, Other Liabilities | 4 | |||||
Liabilities held for sale | 94 | |||||
Disposal Group Including Discontinued Operation, Assets, Net, Current | 935 | |||||
Disposal Group, Including Discontinued Operation, Consideration | $ 957 | |||||
Loss on divested businesses | 1 | |||||
Disposal Group, Including Discontinued Operation, Foreign Currency Translation Gains (Losses) | $ 10 | |||||
Disposal Group, Not Discontinued Operation, Gain (Loss) on Disposal, Statement of Income or Comprehensive Income [Extensible Enumeration] | Loss on divested businesses | |||||
Disposal Group, Including Discontinued Operations, Transaction Costs | $ 13 | $ 3 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
At FIFO or average cost (approximates current cost) [Abstract] | ||
Finished goods | $ 1,347 | $ 1,007 |
Work in process | 297 | 273 |
Raw materials and supplies | 743 | 589 |
Total inventories at FIFO or average cost | 2,387 | 1,869 |
Less: LIFO reserve | 493 | 365 |
Total inventories | $ 1,894 | $ 1,504 |
Inventories valued on the LIFO method (in hundredths) | 50% | 50% |
PROPERTIES AND ACCUMULATED DE_3
PROPERTIES AND ACCUMULATED DEPRECIATION (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Property, Plant and Equipment [Line Items] | |||
Properties and equipment at cost | $ 12,942 | $ 12,680 | |
Less: Accumulated depreciation | 7,782 | 7,684 | |
Net properties | 5,160 | 4,996 | |
Interest capitalized | 9 | 5 | $ 4 |
Property, Plant, and Equipment, Additional Disclosures [Abstract] | |||
Depreciation expense | 384 | 426 | 445 |
Cumulative construction-period interest | 93 | 99 | |
Accumulated depreciation for cumulative construction-period interest | 43 | 45 | |
Interest capitalized | 9 | 5 | $ 4 |
Land [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Properties and equipment at cost | 140 | 150 | |
Buildings and Building Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Properties and equipment at cost | 1,394 | 1,458 | |
Machinery and Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Properties and equipment at cost | 10,543 | 10,449 | |
Construction in Progress [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Properties and equipment at cost | $ 865 | $ 623 |
GOODWILL AND OTHER INTANGIBLE_3
GOODWILL AND OTHER INTANGIBLE ASSETS Part 1 (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Changes in carrying amount of goodwill [Roll Forward] | |||
Beginning Balance | $ 3,641 | $ 4,465 | |
Divestiture | (398) | ||
Held for sale (1) | (399) | ||
Acquisitions (2) | 45 | ||
Currency translation adjustments | (22) | (27) | |
Ending Balance | 3,664 | 3,641 | $ 4,465 |
Impairment of Intangible Assets (Excluding Goodwill) | 0 | 0 | 125 |
Advanced Materials [Member] | |||
Changes in carrying amount of goodwill [Roll Forward] | |||
Beginning Balance | 1,286 | 1,292 | |
Divestiture | 0 | ||
Held for sale (1) | 0 | ||
Acquisitions (2) | 15 | ||
Currency translation adjustments | (5) | (6) | |
Ending Balance | 1,296 | 1,286 | 1,292 |
Additives And Functional Products [Member] | |||
Changes in carrying amount of goodwill [Roll Forward] | |||
Beginning Balance | 1,585 | 2,397 | |
Divestiture | (398) | ||
Held for sale (1) | (399) | ||
Acquisitions (2) | 30 | ||
Currency translation adjustments | (14) | (15) | |
Ending Balance | 1,601 | 1,585 | 2,397 |
Goodwill, Impaired, Accumulated Impairment Loss | 106 | ||
Chemical Intermediates [Member] | |||
Changes in carrying amount of goodwill [Roll Forward] | |||
Beginning Balance | 760 | 766 | |
Divestiture | 0 | ||
Held for sale (1) | 0 | ||
Acquisitions (2) | 0 | ||
Currency translation adjustments | (3) | (6) | |
Ending Balance | 757 | 760 | 766 |
Goodwill, Impaired, Accumulated Impairment Loss | 12 | ||
Other Segments [Member] | |||
Changes in carrying amount of goodwill [Roll Forward] | |||
Beginning Balance | 10 | 10 | |
Divestiture | 0 | ||
Held for sale (1) | 0 | ||
Acquisitions (2) | 0 | ||
Currency translation adjustments | 0 | 0 | |
Ending Balance | 10 | $ 10 | $ 10 |
Goodwill, Impaired, Accumulated Impairment Loss | $ 14 |
GOODWILL AND OTHER INTANGIBLE_4
GOODWILL AND OTHER INTANGIBLE ASSETS Part 2 (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Intangible Assets [Line Items] | |||
Gross Carrying Value | $ 2,108 | $ 2,171 | |
Accumulated Amortization | 898 | 809 | |
Finite-Lived Intangible Assets, Net | 1,210 | 1,362 | |
Amortization expense of definite-lived intangible assets related to continuing operations | 87 | 108 | $ 128 |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |||
Finite-Lived Intangible Asset, Expected Amortization, Year One | 83 | ||
Finite-Lived Intangible Asset, Expected Amortization, Year Two | 83 | ||
Finite-Lived Intangible Asset, Expected Amortization, Year Three | 76 | ||
Finite-Lived Intangible Asset, Expected Amortization, Year Four | 76 | ||
Finite-Lived Intangible Asset, Expected Amortization, Year Five | 67 | ||
Trademarks [Member] | |||
Intangible Assets [Line Items] | |||
Gross Carrying Value | 349 | 349 | |
Finite-Lived Intangible Assets, Net | 349 | 349 | |
Other Intangible Assets [Member] | |||
Intangible Assets [Line Items] | |||
Gross Carrying Value | 10 | 10 | |
Finite-Lived Intangible Assets, Net | 10 | 10 | |
Customer Relationships [Member] | |||
Intangible Assets [Line Items] | |||
Gross Carrying Value | 1,134 | 1,144 | |
Accumulated Amortization | 535 | 479 | |
Finite-Lived Intangible Assets, Net | $ 599 | 665 | |
Customer Relationships [Member] | Minimum [Member] | |||
Intangible Assets [Line Items] | |||
Estimated Useful Life in Years | 8 years | ||
Customer Relationships [Member] | Maximum [Member] | |||
Intangible Assets [Line Items] | |||
Estimated Useful Life in Years | 25 years | ||
Technology [Member] | |||
Intangible Assets [Line Items] | |||
Gross Carrying Value | $ 505 | 581 | |
Accumulated Amortization | 331 | 304 | |
Finite-Lived Intangible Assets, Net | $ 174 | 277 | |
Technology [Member] | Minimum [Member] | |||
Intangible Assets [Line Items] | |||
Estimated Useful Life in Years | 7 years | ||
Technology [Member] | Maximum [Member] | |||
Intangible Assets [Line Items] | |||
Estimated Useful Life in Years | 20 years | ||
Other Intangible Assets [Member] | |||
Intangible Assets [Line Items] | |||
Gross Carrying Value | $ 110 | 87 | |
Accumulated Amortization | 32 | 26 | |
Finite-Lived Intangible Assets, Net | $ 78 | $ 61 | |
Other Intangible Assets [Member] | Minimum [Member] | |||
Intangible Assets [Line Items] | |||
Estimated Useful Life in Years | 16 years | ||
Other Intangible Assets [Member] | Maximum [Member] | |||
Intangible Assets [Line Items] | |||
Estimated Useful Life in Years | 37 years |
EQUITY INVESTMENTS (Details)
EQUITY INVESTMENTS (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Other Joint Ventures [Member] | ||
Investments, Equity Method and Joint Ventures, Schedule of Equity Method Investments [Line Items] | ||
Percentage of equity interest in joint venture (in hudredths) | 50% | |
Equity method investment in joint venture | $ 111 | $ 96 |
Nanjing Joint Venture [Member] | ||
Investments, Equity Method and Joint Ventures, Schedule of Equity Method Investments [Line Items] | ||
Percentage of equity interest in joint venture (in hudredths) | 50% | |
Shenzhen Joint Venture [Member] | ||
Investments, Equity Method and Joint Ventures, Schedule of Equity Method Investments [Line Items] | ||
Percentage of equity interest in joint venture (in hudredths) | 50% | |
Acetate Tow Joint Venture [Member] | ||
Investments, Equity Method and Joint Ventures, Schedule of Equity Method Investments [Line Items] | ||
Percentage of equity interest in joint venture (in hudredths) | 45% | |
Accoya Joint Venture | ||
Investments, Equity Method and Joint Ventures, Schedule of Equity Method Investments [Line Items] | ||
Percentage of equity interest in joint venture (in hudredths) | 40% |
PAYABLES AND OTHER CURRENT LI_3
PAYABLES AND OTHER CURRENT LIABILITIES (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Payables and Accruals [Abstract] | ||
Trade creditors | $ 1,319 | $ 1,228 |
Accrued payrolls, vacation, and variable-incentive compensation | 164 | 311 |
Accrued taxes | 157 | 138 |
Post-employment obligations | 103 | 70 |
Dividends payable to stockholders | 94 | 101 |
Other | 288 | 285 |
Total payables and other current liabilities | $ 2,125 | $ 2,133 |
INCOME TAXES Part 1 (Details)
INCOME TAXES Part 1 (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Earnings from continuing operations before income taxes [Abstract] | |||
United States | $ 205 | $ 645 | $ 164 |
Outside the United States | 772 | 437 | 366 |
Total | 977 | 1,082 | 530 |
United States [Abstract] | |||
Current | 179 | 114 | 70 |
Deferred | (76) | 18 | (96) |
Outside United States [Abstract] | |||
Current | 105 | 115 | 77 |
Deferred | (10) | (42) | (14) |
State and other [Abstract] | |||
Current | 33 | 24 | 5 |
Deferred | (50) | (14) | (1) |
Provision for income taxes | 181 | 215 | 41 |
Deferred tax charge (benefit) recorded in stockholders' equity [Abstract] | |||
Defined benefit pension and other postretirement benefit plans | (7) | (10) | (7) |
Derivatives and hedging | (1) | 21 | (4) |
Other comprehensive income | (8) | 11 | (11) |
Income tax expense (benefit) included in consolidated financial statement [Abstract] | |||
Provision for income taxes | 181 | 215 | 41 |
Other comprehensive income | (8) | 11 | (11) |
Total | 173 | 226 | 30 |
Reconciliation income tax rate [Abstract] | |||
Amount computed using the statutory rate | 205 | 225 | 109 |
State income taxes, net | (27) | (4) | 2 |
Foreign rate variance | (16) | (28) | (49) |
Change in reserves for tax contingencies | 27 | (39) | 4 |
General business credits | (44) | (21) | (39) |
U.S. tax on foreign earnings, net of credits | (17) | 2 | 13 |
Divestitures | (37) | (89) | 0 |
Tax law changes and tax loss from outside-U.S. entity reorganizations | 0 | (15) | 0 |
Other | 16 | 6 | 1 |
Provision for income taxes | $ 181 | $ 215 | $ 41 |
Effective Income Tax Rate Reconciliation, Percent [Abstract] | |||
Effective tax rate for the period (in hundredths) | 19% | 20% | 8% |
Effective Income Tax Rate Reconciliation, Other Reconciling Items, Amount [Abstract] | |||
Effective Income Tax Rate Reconciliation, Changes in State Valuation Allowance | $ 32 | ||
Effective Income Tax Rate Reconciliation, Disposition of Business, Amount | 37 | $ 89 | $ 0 |
Effective Income Tax Rate Reconciliation, Changes in Previously Unrecognized Tax Positions | 78 | 27 | |
Tax benefit from finalization of prior year return | 7 | ||
Deferred tax assets [Abstract] | |||
Post-employment obligations | 150 | 176 | |
Net operating loss carryforwards | 645 | 637 | |
Tax credit carryforwards | 236 | 212 | |
Environmental contingencies | 64 | 67 | |
Capitalized research and development expenses | 139 | 0 | |
Other | 239 | 224 | |
Total deferred tax assets | 1,473 | 1,316 | |
Less: Valuation allowance | 258 | 339 | |
Deferred tax assets less valuation allowance | 1,215 | 977 | |
Deferred tax liabilities [Abstract] | |||
Property, plant, and equipment | (849) | (843) | |
Intangible assets | (272) | (288) | |
Investments | (441) | (369) | |
Other | (201) | (171) | |
Total deferred tax liabilities | (1,763) | (1,671) | |
Net deferred tax liabilities | (548) | (694) | |
As recorded in the Consolidated Statements of Financial Position [Abstract] | |||
Net deferred tax liabilities | (548) | (694) | |
Operating Loss Carryforwards [Line Items] | |||
Undistributed Earnings of Foreign Subsidiaries | 3,000 | ||
Deferred Tax Liabilities, Net | 548 | 694 | |
U.S. tax on foreign earnings, net of credits | (17) | 2 | $ 13 |
Deferred Tax Assets, Net of Valuation Allowance | 1,215 | 977 | |
Due to and from tax authorities [Abstract] | |||
Miscellaneous receivables | 35 | 173 | |
Payables and other current liabilities | 95 | 68 | |
Other long-term liabilities | 174 | 130 | |
Total income taxes payable | 269 | 198 | |
Foreign Country [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Operating Loss Carryforwards | 2,400 | ||
Net operating loss carryforwards with expiration date | $ 900 | ||
Expiring period of net operating loss carryforwards, minimum (in years) | 1 year | ||
Expiring period of net operating loss carryforwards, maximum (in years) | 20 years | ||
Net operating loss carryforwards without expiration date | $ 1,500 | ||
Operating Loss Carryforwards, Valuation Allowance | 131 | ||
Foreign tax credit carryforwards available to reduce possible future domestic income taxes | 66 | ||
Foreign Country [Member] | Solutia [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Tax Credit Carryforward, Valuation Allowance | 54 | ||
United States [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Operating Loss Carryforwards | 0 | ||
Tax Credit Carryforward, Valuation Allowance | 28 | ||
State and Local Jurisdiction [Member] | Solutia [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Operating Loss Carryforwards, Valuation Allowance | 42 | ||
Other Noncurrent Assets [Member] | |||
Deferred tax assets [Abstract] | |||
Deferred tax assets less valuation allowance | 123 | 116 | |
Operating Loss Carryforwards [Line Items] | |||
Deferred Tax Assets, Net of Valuation Allowance | 123 | 116 | |
Other Noncurrent Liabilities [Member] | |||
Deferred tax liabilities [Abstract] | |||
Net deferred tax liabilities | (671) | (810) | |
As recorded in the Consolidated Statements of Financial Position [Abstract] | |||
Net deferred tax liabilities | (671) | (810) | |
Operating Loss Carryforwards [Line Items] | |||
Deferred Tax Liabilities, Net | $ 671 | $ 810 |
INCOME TAXES Part 2 (Details)
INCOME TAXES Part 2 (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Reconciliation of beginning and ending amounts of accrued interest related to unrecognized tax benefits [Roll Forward] | ||||
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | $ 229 | |||
United States [Member] | ||||
Reconciliation of beginning and ending amounts of unrecognized tax benefits [Roll Forward] | ||||
Beginning Balance | 200 | $ 257 | $ 202 | |
Unrecognized Tax Benefits, Increase Resulting from Current Period Tax Positions | 11 | 6 | 14 | |
Unrecognized Tax Benefits, Decrease Resulting from Prior Period Tax Positions | 63 | |||
Unrecognized Tax Benefits, Increase Resulting from Prior Period Tax Positions | 24 | 2 | ||
Lapse of statute of limitations | 0 | (45) | (22) | |
Unrecognized Tax Benefits, Decrease Resulting from Settlements with Taxing Authorities | 0 | (20) | 0 | |
Ending Balance | 235 | 200 | 257 | |
Reconciliation of beginning and ending amounts of accrued interest related to unrecognized tax benefits [Roll Forward] | ||||
Unrecognized Tax Benefits, Interest on Income Taxes Accrued | 22 | 13 | 13 | $ 13 |
Unrecognized Tax Benefits, Interest on Income Taxes Expense | 9 | 9 | 5 | |
Interest income, net of tax associated with expiration of statute of limitations | 0 | $ (9) | $ (5) | |
Maximum [Member] | ||||
Reconciliation of beginning and ending amounts of accrued interest related to unrecognized tax benefits [Roll Forward] | ||||
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | $ 55 |
BORROWINGS Part 1 (Details)
BORROWINGS Part 1 (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Sep. 30, 2022 | Jun. 30, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Debt Instrument [Line Items] | |||||
Early debt extinguishment costs | $ 0 | $ 1 | $ 1 | ||
Total borrowings | 5,151 | 5,159 | |||
Borrowings due within one year | 1,126 | 747 | |||
Long-term borrowings | $ 4,025 | 4,412 | |||
3.5% Notes Due Dec 2021 [Member] | |||||
Debt Instrument [Line Items] | |||||
Stated Interest Rate (in hundredths) | 3.50% | ||||
Maturity Date | 2021 | ||||
3.6% notes due August 2022 [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term Debt | $ 0 | 747 | |||
Stated Interest Rate (in hundredths) | 3.60% | ||||
Maturity Date | 2022 | ||||
Repayments of Debt | $ 200 | $ 550 | |||
1.50% notes due May 2023 [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term Debt | $ 800 | 850 | |||
Stated Interest Rate (in hundredths) | 1.50% | ||||
Maturity Date | 2023 | ||||
7 1/4% debentures due January 2024 [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term Debt | $ 198 | 198 | |||
Stated Interest Rate (in hundredths) | 7.25% | ||||
Maturity Date | 2024 | ||||
7 5/8% debentures due June 2024 [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term Debt | $ 43 | 43 | |||
Stated Interest Rate (in hundredths) | 7.625% | ||||
Maturity Date | 2024 | ||||
3.8% notes due March 2025 [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term Debt | $ 693 | 698 | |||
Stated Interest Rate (in hundredths) | 3.80% | ||||
Maturity Date | 2025 | ||||
1.875% notes due November 2026 [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term Debt | $ 530 | 565 | |||
Stated Interest Rate (in hundredths) | 1.875% | ||||
Maturity Date | 2026 | ||||
7.60% debentures due February 2027 [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term Debt | $ 196 | 195 | |||
Stated Interest Rate (in hundredths) | 7.60% | ||||
Maturity Date | 2027 | ||||
4.5% Notes Due Dec 2028 [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term Debt | $ 495 | 494 | |||
Stated Interest Rate (in hundredths) | 4.50% | ||||
Maturity Date | 2028 | ||||
4.8% notes due September 2042 [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term Debt | $ 494 | 494 | |||
Stated Interest Rate (in hundredths) | 4.80% | ||||
Maturity Date | 2042 | ||||
4.65% notes due October 2044 [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term Debt | $ 877 | 875 | |||
Stated Interest Rate (in hundredths) | 4.65% | ||||
Maturity Date | 2044 | ||||
2027 Term Loan | |||||
Debt Instrument [Line Items] | |||||
Long-term Debt | $ 499 | 0 | |||
Debt, Weighted Average Interest Rate | 5.55% | ||||
Commercial paper and short-term borrowings [Member] | |||||
Debt Instrument [Line Items] | |||||
Borrowings due within one year | $ 326 | $ 0 | |||
Debt, Weighted Average Interest Rate | 4.85% |
BORROWINGS Part 2 (Details)
BORROWINGS Part 2 (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2023 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Credit Facilities [Abstract] | |||||
Borrowings due within one year | $ 747 | $ 1,126 | $ 747 | ||
Early debt extinguishment costs | 0 | 1 | $ 1 | ||
Proceeds from borrowings | 500 | 0 | $ 249 | ||
Subsequent Event | |||||
Credit Facilities [Abstract] | |||||
Proceeds from borrowings | $ 300 | ||||
Revolving Credit Facility [Member] | |||||
Credit Facilities [Abstract] | |||||
Line of Credit Facility, Current Borrowing Capacity | 1,500 | ||||
Line of Credit Facility, Maximum Month-end Outstanding Amount | $ 0 | 0 | |||
Early debt extinguishment costs | (1) | ||||
2027 Term Loan | |||||
Credit Facilities [Abstract] | |||||
Debt, Weighted Average Interest Rate | 5.55% | ||||
Long-term Debt | 0 | $ 499 | 0 | ||
Proceeds from borrowings | $ 500 | ||||
Commercial paper and short-term borrowings [Member] | |||||
Credit Facilities [Abstract] | |||||
Debt, Weighted Average Interest Rate | 4.85% | ||||
Borrowings due within one year | $ 0 | $ 326 | $ 0 |
BORROWINGS BORROWINGS Part 3 (D
BORROWINGS BORROWINGS Part 3 (Details) Fair Value - Fair Value, Recurring [Member] - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Instrument, Fair Value Disclosure | $ 0 | $ 0 |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Instrument, Fair Value Disclosure | 4,888 | 5,737 |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Instrument, Fair Value Disclosure | $ 0 | $ 0 |
DERIVATIVE AND NON-DERIVATIVE_3
DERIVATIVE AND NON-DERIVATIVE FINANCIAL INSTRUMENTS Part 1 (Details) € in Millions, bbl in Millions, MMBTU in Millions, $ in Millions | 12 Months Ended | ||||||
Dec. 31, 2022 USD ($) bbl MMBTU | Dec. 31, 2022 EUR (€) | Dec. 31, 2021 USD ($) MMBTU bbl | Dec. 31, 2021 EUR (€) | Dec. 31, 2022 EUR (€) bbl MMBTU | Jun. 30, 2022 USD ($) | Dec. 31, 2021 EUR (€) MMBTU bbl | |
Derivative [Line Items] | |||||||
Gain on Discontinuation of Cash Flow Hedge Due to Forecasted Transaction Probable of Not Occurring | $ 1 | ||||||
Foreign Exchange Contract [Member] | Designated as Hedging Instrument [Member] | Other Current Assets [Member] | Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | |||||||
Derivative [Line Items] | |||||||
Cash Flow Hedge Derivative Instrument Assets at Fair Value | 0 | $ 12 | |||||
Foreign Exchange Contract [Member] | Cash Flow Hedging [Member] | Designated as Hedging Instrument [Member] | |||||||
Derivative [Line Items] | |||||||
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), before Reclassification and Tax | 27 | ||||||
Commodity Contract [Member] | Designated as Hedging Instrument [Member] | Other Current Assets [Member] | Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | |||||||
Derivative [Line Items] | |||||||
Cash Flow Hedge Derivative Instrument Assets at Fair Value | $ 3 | $ 16 | |||||
Commodity Contract [Member] | Cash Flow Hedging [Member] | Designated as Hedging Instrument [Member] | |||||||
Derivative [Line Items] | |||||||
Derivative, Nonmonetary Notional Amount | bbl | 0 | 1 | 0 | 1 | |||
Energy Related Derivative [Member] | Cash Flow Hedging [Member] | Designated as Hedging Instrument [Member] | |||||||
Derivative [Line Items] | |||||||
Derivative, Nonmonetary Notional Amount | MMBTU | 3 | 13 | 3 | 13 | |||
Interest Rate Contract [Member] | Designated as Hedging Instrument [Member] | Other Current Assets [Member] | Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | |||||||
Derivative [Line Items] | |||||||
Cash Flow Hedge Derivative Instrument Assets at Fair Value | $ 0 | $ 5 | |||||
Interest Rate Contract [Member] | Cash Flow Hedging [Member] | Designated as Hedging Instrument [Member] | |||||||
Derivative [Line Items] | |||||||
Derivative, Notional Amount | 0 | 75 | $ 75 | ||||
Derivative, Cash Received on Hedge | 13 | ||||||
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), before Reclassification and Tax | 12 | ||||||
Interest Rate Contract [Member] | Fair Value Hedging [Member] | Designated as Hedging Instrument [Member] | |||||||
Derivative [Line Items] | |||||||
Derivative, Notional Amount | 75 | 75 | |||||
Notes Due August 2022 | Cross Currency Interest Rate Contract [Member] | Net Investment Hedging [Member] | Designated as Hedging Instrument [Member] | |||||||
Derivative [Line Items] | |||||||
Derivatives used in Net Investment Hedge, Increase (Decrease), Gross of Tax | 40 | ||||||
Euro Member Countries, Euro | Foreign Exchange Contract [Member] | Cash Flow Hedging [Member] | Designated as Hedging Instrument [Member] | |||||||
Derivative [Line Items] | |||||||
Derivative, Notional Amount | € | € 573 | € 429 | |||||
Euro Member Countries, Euro | 1.50% Notes Due 2023 and 1.875% Notes Due 2026 [Member] | Net Investment Hedging [Member] | Designated as Hedging Instrument [Member] | |||||||
Derivative [Line Items] | |||||||
Notional Amount of Nonderivative Instruments | 1,300 | € 1,247 | $ 1,400 | € 1,246 | |||
Euro Member Countries, Euro | Cross Currency Swaps[Member] | Cross Currency Interest Rate Contract [Member] | Net Investment Hedging [Member] | Designated as Hedging Instrument [Member] | |||||||
Derivative [Line Items] | |||||||
Derivative, Notional Amount | € | 587 | € 853 | |||||
Euro Member Countries, Euro | Notes Due August 2022 | Cross Currency Interest Rate Contract [Member] | Net Investment Hedging [Member] | Designated as Hedging Instrument [Member] | |||||||
Derivative [Line Items] | |||||||
Derivative, Notional Amount | € | € 266 | ||||||
United States of America, Dollars | Notes Due August 2022 | Cross Currency Interest Rate Contract [Member] | Net Investment Hedging [Member] | Designated as Hedging Instrument [Member] | |||||||
Derivative [Line Items] | |||||||
Derivative, Notional Amount | $ 320 |
DERIVATIVE AND NON-DERIVATIVE_4
DERIVATIVE AND NON-DERIVATIVE FINANCIAL INSTRUMENTS Part 2 (Details) € in Millions | 12 Months Ended | |||
Dec. 31, 2022 USD ($) | Dec. 31, 2022 EUR (€) | Dec. 31, 2021 USD ($) | Dec. 31, 2021 EUR (€) | |
Fair Value, Inputs, Level 1 [Member] | Fair Value, 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, Recurring [Member] | ||||
Derivative Assets [Abstract] | ||||
Derivative Asset, Fair Value, Gross Asset | 76,000,000 | 98,000,000 | ||
Derivative Liabilities [Abstract] | ||||
Derivative Liability, Fair Value, Gross Liability | (20,000,000) | (8,000,000) | ||
Derivative, Fair Value, Net | 56,000,000 | 90,000,000 | ||
Fair Value, Inputs, Level 2 [Member] | Fair Value, 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 | 3,000,000 | 16,000,000 | ||
Fair Value, Inputs, Level 2 [Member] | Fair Value, 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 | 0 | 2,000,000 | ||
Fair Value, Inputs, Level 2 [Member] | Fair Value, 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 | 3,000,000 | 1,000,000 | ||
Fair Value, Inputs, Level 2 [Member] | Fair Value, 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 | 0 | 1,000,000 | ||
Fair Value, Inputs, Level 2 [Member] | Fair Value, 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 | 0 | 12,000,000 | ||
Fair Value, Inputs, Level 2 [Member] | Fair Value, 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 | 0 | 6,000,000 | ||
Fair Value, Inputs, Level 2 [Member] | Fair Value, 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 | 8,000,000 | 1,000,000 | ||
Fair Value, Inputs, Level 2 [Member] | Fair Value, 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 | 4,000,000 | 0 | ||
Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | Interest Rate Contract [Member] | Designated as Hedging Instrument [Member] | Other Current Assets [Member] | ||||
Derivative Assets [Abstract] | ||||
Fair Value Hedge Assets | 1,000,000 | 1,000,000 | ||
Cash Flow Hedge Derivative Instrument Assets at Fair Value | 0 | 5,000,000 | ||
Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | Interest Rate Contract [Member] | Designated as Hedging Instrument [Member] | Other Noncurrent Assets [Member] | ||||
Derivative Assets [Abstract] | ||||
Fair Value Hedge Assets | 0 | 1,000,000 | ||
Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | Interest Rate Contract [Member] | Designated as Hedging Instrument [Member] | Other Noncurrent Liabilities [Member] | ||||
Derivative Liabilities [Abstract] | ||||
Fair Value Hedge Liabilities | 5,000,000 | 0 | ||
Fair Value, Inputs, Level 3 [Member] | Fair Value, 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] | Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | Cross Currency Interest Rate Contract [Member] | Designated as Hedging Instrument [Member] | Other Current Assets [Member] | ||||
Derivative Assets [Abstract] | ||||
Derivative Instruments in Hedges, Net Investment in Foreign Operations, Assets, Fair Value | 0 | 20,000,000 | ||
Net Investment Hedging [Member] | Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | Cross Currency Interest Rate Contract [Member] | Designated as Hedging Instrument [Member] | Other Noncurrent Assets [Member] | ||||
Derivative Assets [Abstract] | ||||
Derivative Instruments in Hedges, Net Investment in Foreign Operations, Assets, Fair Value | 72,000,000 | 35,000,000 | ||
Net Investment Hedging [Member] | Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | Cross Currency Interest Rate Contract [Member] | Designated as Hedging Instrument [Member] | Other Noncurrent Liabilities [Member] | ||||
Derivative Liabilities [Abstract] | ||||
Derivative Instruments in Hedges, Net Investment in Foreign Operations, Liabilities, Fair Value | 0 | 5,000,000 | ||
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 [Line Items] | ||||
Notional Amount of Nonderivative Instruments | 1,300,000,000 | € 1,247 | 1,400,000,000 | € 1,246 |
Fair Value Hedging [Member] | Interest Rate Contract [Member] | Short-term Debt | ||||
Derivatives, Fair Value [Line Items] | ||||
Hedged Liability, Fair Value Hedge | 0 | 697,000,000 | ||
Hedged Liability, Fair Value Hedge, Cumulative Increase (Decrease) | 0 | (2,000,000) | ||
Fair Value Hedging [Member] | Interest Rate Contract [Member] | Long-term Debt | ||||
Derivatives, Fair Value [Line Items] | ||||
Hedged Liability, Fair Value Hedge | 79,000,000 | 76,000,000 | ||
Hedged Liability, Fair Value Hedge, Cumulative Increase (Decrease) | $ 5,000,000 | $ 1,000,000 |
DERIVATIVE AND NON-DERIVATIVE_5
DERIVATIVE AND NON-DERIVATIVE FINANCIAL INSTRUMENTS Part 3 (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Sales | $ 10,580 | $ 10,476 | $ 8,473 |
Cost of sales | 8,443 | 7,976 | 6,498 |
Interest Income (Expense), Net | (182) | (198) | (210) |
Other Comprehensive Income (Loss), Non-derivatives Qualifying as Hedges, before Tax [Abstract] | |||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, before Tax | 7 | 56 | (29) |
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), after Reclassification and Tax | (3) | 63 | |
Summary of Derivative Instruments [Abstract] | |||
Monetized positions and mark to market net losses in accumulated other comprehensive income before tax | (134) | 7 | |
Price Risk Cash Flow Hedge Unrealized Loss to be Reclassified During Next 12 Months | (10) | ||
Commodity Contract [Member] | Cash Flow Hedging [Member] | |||
Summary of Derivative Instruments [Abstract] | |||
Unrealized Gains (Losses) on Derivative Instruments | (11) | 15 | 17 |
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 Other Comprehensive Income, Effective Portion, Net Total | 36 | 20 | (31) |
Foreign Exchange Contract [Member] | Cash Flow Hedging [Member] | |||
Summary of Derivative Instruments [Abstract] | |||
Unrealized Gains (Losses) on Derivative Instruments | (2) | 39 | (36) |
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 Other Comprehensive Income, Effective Portion, Net Total | 45 | (7) | 9 |
Interest Rate Swap [Member] | Cash Flow Hedging [Member] | |||
Summary of Derivative Instruments [Abstract] | |||
Unrealized Gains (Losses) on Derivative Instruments | 10 | 9 | 8 |
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 Other Comprehensive Income, Effective Portion, Net Total | (6) | (9) | (9) |
Interest Rate Contract [Member] | Fair Value Hedging [Member] | |||
Other Comprehensive Income (Loss), Non-derivatives Qualifying as Hedges, before Tax [Abstract] | |||
Change in Unrealized Gain (Loss) on Hedged Item in Fair Value Hedge | 2 | 2 | 1 |
Interest Rate Contract [Member] | Fair Value Hedging [Member] | Net Interest Expense | |||
Other Comprehensive Income (Loss), Non-derivatives Qualifying as Hedges, before Tax [Abstract] | |||
Gain (Loss) on Fair Value Hedges Recognized in Earnings | (2) | (2) | (1) |
Foreign Exchange [Member] | Net Investment Hedging [Member] | |||
Other Comprehensive Income (Loss), Non-derivatives Qualifying as Hedges, before Tax [Abstract] | |||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, before Tax | 85 | 116 | (130) |
Not Designated as Hedging Instrument [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | (11) | 0 | (1) |
Cross Currency Interest Rate Contract [Member] | Net Investment Hedging [Member] | |||
Other Comprehensive Income (Loss), Non-derivatives Qualifying as Hedges, before Tax [Abstract] | |||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, before Tax | 63 | 74 | (88) |
OCI, Derivative Qualifying as Hedge, Excluded Component | $ (1) | $ (12) | $ 10 |
DERIVATIVE AND NON-DERIVATIVE_6
DERIVATIVE AND NON-DERIVATIVE FINANCIAL INSTRUMENTS Part 4 (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Not Designated as Hedging Instrument [Member] | |||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | $ (11) | $ 0 | $ (1) |
RETIREMENT PLANS (Details)
RETIREMENT PLANS (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Change in projected benefit obligation [Roll Forward] | |||
Actuarial gain | $ (19) | $ 267 | $ (240) |
Other changes in plan assets and benefit obligations recognized in other comprehensive income [Abstract] | |||
Current year prior service credit (cost) | (34) | (38) | (38) |
Stock Option [Member] | |||
Estimated future benefits payments [Abstract] | |||
Tax benefit of options exercised | $ 1 | $ 5 | 2 |
Post Retirement Welfare Plans [Member] | |||
Defined Benefit Plan, Plan Assets, Allocations [Abstract] | |||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 100% | ||
Defined Benefit Plan, Actual Plan Asset Allocations (in hundredths) | 100% | 100% | |
Defined Benefit Plan, Plan with Accumulated Benefit Obligation in Excess of Plan Assets [Abstract] | |||
Projected benefit obligation | $ 456 | $ 592 | |
Change in projected benefit obligation [Roll Forward] | |||
Benefit obligation, beginning of year | 665 | 745 | |
Service cost | 0 | 0 | 0 |
Interest cost | 14 | 12 | 19 |
Actuarial gain | (127) | (40) | |
Curtailment gain | 0 | 0 | |
Settlement | 0 | 0 | |
Divestitures | 0 | (2) | |
Plan participants' contributions | 2 | 9 | |
Effect of currency exchange | 0 | 0 | |
Federal subsidy on benefits paid | 0 | 1 | |
Benefits paid | (45) | (60) | |
Benefit obligation, end of year | 509 | 665 | 745 |
Change in plan assets [Roll Forward] | |||
Fair value of plan assets, beginning of year | 134 | 144 | |
Actual return on plan assets | (31) | 7 | |
Effect of currency exchange | 0 | 0 | |
Company contributions | 35 | 40 | |
Reserve for third party contributions | 11 | (7) | |
Plan participants' contributions | 2 | 9 | |
Benefits paid | (45) | (60) | |
Federal subsidy on benefits paid | 0 | 1 | |
Settlements | 0 | 0 | |
Fair value of plan assets, end of year | 106 | 134 | 144 |
Funded status at end of year | (403) | (531) | |
Amounts recognized in the Consolidated Statements of Financial Position consist of [Abstract] | |||
Other noncurrent asset | 53 | 62 | |
Current liabilities | (38) | (38) | |
Post-employment obligations | (418) | (555) | |
Net amount recognized, end of year | (403) | (531) | |
Defined Benefit Plan, Accumulated Other Comprehensive (Income) Loss, Prior Service Cost (Credit), before Tax | (37) | (68) | |
Components of net periodic benefit cost [Abstract] | |||
Service cost | 0 | 0 | 0 |
Interest cost | 14 | 12 | 19 |
Expected return on plan assets | (4) | (5) | (5) |
Amortization of: [Abstract] | |||
Prior service (credit) cost | (31) | (37) | (38) |
Mark-to-market adjustment | (103) | (35) | 49 |
Net periodic benefit cost | (124) | (65) | 25 |
Other changes in plan assets and benefit obligations recognized in other comprehensive income [Abstract] | |||
Curtailment gain | 0 | 0 | 0 |
Current year prior service credit (cost) | 0 | 0 | 0 |
Amortization of: [Abstract] | |||
Prior service (credit) cost | (31) | (37) | (38) |
Total | $ (31) | $ (37) | $ (38) |
Weighted-average assumptions used to determine benefit obligations for years ended [Abstract] | |||
Discount rate (in hundredths) | 5.55% | 2.83% | 2.38% |
Health care cost trend [Abstract] | |||
Initial (in hundredths) | 6% | 6% | 6.25% |
Decreasing to ultimate trend of (in hundredths) | 5% | 5% | 5% |
Weighted-average assumptions used to determine net periodic cost for years ended [Abstract] | |||
Discount rate ( in hundredths) | 2.83% | 2.39% | 3.21% |
Discount rate for service costs | 1.90% | 2.92% | |
Discount rate for interest costs | 2.35% | 1.74% | 2.80% |
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Expected Long-term Rate of Return on Plan Assets | 3.50% | 3.75% | 3.75% |
Rate of compensation increase (in hundredths) | 3.25% | ||
Health Care Cost Trend [Abstract] | |||
Initial (in hundredths) | 6% | 6.25% | 6.50% |
Decreasing to ultimate trend of (in hundredths) | 5% | 5% | 5% |
Projected Year that reaches ultimate trend rate | 2026 | 2026 | 2026 |
Defined Benefit Plan, Year Health Care Cost Trend Rate Reaches Ultimate Trend Rate | 2030 | 2026 | 2026 |
Estimated future benefits payments [Abstract] | |||
2023 | $ 47 | ||
2024 | 47 | ||
2025 | 47 | ||
2026 | 46 | ||
2027 | 45 | ||
2028-2032 | $ 208 | ||
Post Retirement Welfare Plans [Member] | Private Equity Securities [Member] | |||
Defined Benefit Plan, Plan Assets, Allocations [Abstract] | |||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 0% | ||
Defined Benefit Plan, Actual Plan Asset Allocations (in hundredths) | 0% | 0% | |
Post Retirement Welfare Plans [Member] | Debt Securities [Member] | |||
Defined Benefit Plan, Plan Assets, Allocations [Abstract] | |||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 100% | ||
Defined Benefit Plan, Actual Plan Asset Allocations (in hundredths) | 100% | 100% | |
Post Retirement Welfare Plans [Member] | Real Estate [Member] | |||
Defined Benefit Plan, Plan Assets, Allocations [Abstract] | |||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 0% | ||
Defined Benefit Plan, Actual Plan Asset Allocations (in hundredths) | 0% | 0% | |
Post Retirement Welfare Plans [Member] | Other Investment Companies [Member] | |||
Defined Benefit Plan, Plan Assets, Allocations [Abstract] | |||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 0% | ||
Defined Benefit Plan, Actual Plan Asset Allocations (in hundredths) | 0% | 0% | |
Voluntary employees' beneficiary association (VEBA) trust [Member] | Post Retirement Welfare Plans [Member] | |||
Change in plan assets [Roll Forward] | |||
Fair value of plan assets, beginning of year | $ 108 | ||
Fair value of plan assets, end of year | 88 | $ 108 | |
Voluntary employees' beneficiary association (VEBA) trust [Member] | Post Retirement Welfare Plans [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Change in plan assets [Roll Forward] | |||
Fair value of plan assets, beginning of year | 0 | ||
Fair value of plan assets, end of year | 5 | 0 | |
Voluntary employees' beneficiary association (VEBA) trust [Member] | Post Retirement Welfare Plans [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Change in plan assets [Roll Forward] | |||
Fair value of plan assets, beginning of year | 108 | ||
Fair value of plan assets, end of year | 83 | 108 | |
Voluntary employees' beneficiary association (VEBA) trust [Member] | Post Retirement Welfare Plans [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Change in plan assets [Roll Forward] | |||
Fair value of plan assets, beginning of year | 0 | ||
Fair value of plan assets, end of year | 0 | 0 | |
Voluntary employees' beneficiary association (VEBA) trust [Member] | Post Retirement Welfare Plans [Member] | Cash and Cash Equivalents [Member] | |||
Change in plan assets [Roll Forward] | |||
Fair value of plan assets, beginning of year | 0 | ||
Fair value of plan assets, end of year | 0 | ||
Voluntary employees' beneficiary association (VEBA) trust [Member] | Post Retirement Welfare Plans [Member] | Cash and Cash Equivalents [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Change in plan assets [Roll Forward] | |||
Fair value of plan assets, beginning of year | 0 | ||
Fair value of plan assets, end of year | 0 | ||
Voluntary employees' beneficiary association (VEBA) trust [Member] | Post Retirement Welfare Plans [Member] | Cash and Cash Equivalents [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Change in plan assets [Roll Forward] | |||
Fair value of plan assets, beginning of year | 0 | ||
Fair value of plan assets, end of year | 0 | ||
Voluntary employees' beneficiary association (VEBA) trust [Member] | Post Retirement Welfare Plans [Member] | Cash and Cash Equivalents [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Change in plan assets [Roll Forward] | |||
Fair value of plan assets, beginning of year | 0 | ||
Fair value of plan assets, end of year | 0 | ||
Voluntary employees' beneficiary association (VEBA) trust [Member] | Post Retirement Welfare Plans [Member] | Fixed Income (US) [Member] | Debt Securities [Member] | |||
Change in plan assets [Roll Forward] | |||
Fair value of plan assets, beginning of year | 79 | ||
Fair value of plan assets, end of year | 62 | 79 | |
Voluntary employees' beneficiary association (VEBA) trust [Member] | Post Retirement Welfare Plans [Member] | Fixed Income (US) [Member] | Debt Securities [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Change in plan assets [Roll Forward] | |||
Fair value of plan assets, beginning of year | 0 | ||
Fair value of plan assets, end of year | 0 | 0 | |
Voluntary employees' beneficiary association (VEBA) trust [Member] | Post Retirement Welfare Plans [Member] | Fixed Income (US) [Member] | Debt Securities [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Change in plan assets [Roll Forward] | |||
Fair value of plan assets, beginning of year | 79 | ||
Fair value of plan assets, end of year | 62 | 79 | |
Voluntary employees' beneficiary association (VEBA) trust [Member] | Post Retirement Welfare Plans [Member] | Fixed Income (US) [Member] | Debt Securities [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Change in plan assets [Roll Forward] | |||
Fair value of plan assets, beginning of year | 0 | ||
Fair value of plan assets, end of year | 0 | 0 | |
Voluntary employees' beneficiary association (VEBA) trust [Member] | Post Retirement Welfare Plans [Member] | Fixed Income (US) [Member] | Cash and Cash Equivalents | |||
Change in plan assets [Roll Forward] | |||
Fair value of plan assets, end of year | 5 | ||
Voluntary employees' beneficiary association (VEBA) trust [Member] | Post Retirement Welfare Plans [Member] | Fixed Income (US) [Member] | Cash and Cash Equivalents | Fair Value, Inputs, Level 1 [Member] | |||
Change in plan assets [Roll Forward] | |||
Fair value of plan assets, end of year | 5 | ||
Voluntary employees' beneficiary association (VEBA) trust [Member] | Post Retirement Welfare Plans [Member] | Fixed Income (US) [Member] | Cash and Cash Equivalents | Fair Value, Inputs, Level 2 [Member] | |||
Change in plan assets [Roll Forward] | |||
Fair value of plan assets, end of year | 0 | ||
Voluntary employees' beneficiary association (VEBA) trust [Member] | Post Retirement Welfare Plans [Member] | Fixed Income (US) [Member] | Cash and Cash Equivalents | Fair Value, Inputs, Level 3 [Member] | |||
Change in plan assets [Roll Forward] | |||
Fair value of plan assets, end of year | 0 | ||
Voluntary employees' beneficiary association (VEBA) trust [Member] | Post Retirement Welfare Plans [Member] | Fixed Income (Non-U.S.) [Member] | Debt Securities [Member] | |||
Change in plan assets [Roll Forward] | |||
Fair value of plan assets, beginning of year | 29 | ||
Fair value of plan assets, end of year | 21 | 29 | |
Voluntary employees' beneficiary association (VEBA) trust [Member] | Post Retirement Welfare Plans [Member] | Fixed Income (Non-U.S.) [Member] | Debt Securities [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Change in plan assets [Roll Forward] | |||
Fair value of plan assets, beginning of year | 0 | ||
Fair value of plan assets, end of year | 0 | 0 | |
Voluntary employees' beneficiary association (VEBA) trust [Member] | Post Retirement Welfare Plans [Member] | Fixed Income (Non-U.S.) [Member] | Debt Securities [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Change in plan assets [Roll Forward] | |||
Fair value of plan assets, beginning of year | 29 | ||
Fair value of plan assets, end of year | 21 | 29 | |
Voluntary employees' beneficiary association (VEBA) trust [Member] | Post Retirement Welfare Plans [Member] | Fixed Income (Non-U.S.) [Member] | Debt Securities [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Change in plan assets [Roll Forward] | |||
Fair value of plan assets, beginning of year | 0 | ||
Fair value of plan assets, end of year | $ 0 | $ 0 | |
Employee stock ownership plan which is a component of Eastman Investment Plan EIP/ESOP [Member] | |||
Defined Contribution Investment Plan and Employee Stock Ownership Plan | |||
Anticipated percentage of employer contribution to the plan for all U.S. employees (in hundredths) | 5% | ||
Allocated shares in the ESOP (in shares) | 1,871,624 | 1,909,362 | 1,997,587 |
Percentage of an employee's remuneration that is being matched by the employer (in hundredths) | 7% | ||
Percentage of company match of the first seven percent of employee's compensation contributed to the plan (in hundredths) | 50% | ||
Charges for domestic contributions to the Defined Contribution plans | $ 81 | $ 73 | $ 67 |
Foreign Plan [Member] | |||
Defined Benefit Plan, Pension Plan with Project Benefit Obligation in Excess of Plan Assets [Abstract] | |||
Projected benefit obligation | 176 | 288 | |
Fair value of plan assets | 140 | 222 | |
Defined Benefit Plan, Plan with Accumulated Benefit Obligation in Excess of Plan Assets [Abstract] | |||
Accumulated benefit obligation | 141 | 272 | |
Fair value of plan assets | 116 | 222 | |
Change in plan assets [Roll Forward] | |||
Fair value of plan assets, beginning of year | 924 | ||
Fair value of plan assets, end of year | 589 | 924 | |
Foreign Plan [Member] | Investments measured at net asset value [Member] | |||
Change in plan assets [Roll Forward] | |||
Fair value of plan assets, beginning of year | 828 | ||
Fair value of plan assets, end of year | 498 | 828 | |
Foreign Plan [Member] | Cash and Cash Equivalents [Member] | |||
Change in plan assets [Roll Forward] | |||
Fair value of plan assets, beginning of year | 37 | ||
Fair value of plan assets, end of year | 46 | 37 | |
Foreign Plan [Member] | Cash and Cash Equivalents [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Change in plan assets [Roll Forward] | |||
Fair value of plan assets, beginning of year | 37 | ||
Fair value of plan assets, end of year | 46 | 37 | |
Foreign Plan [Member] | Cash and Cash Equivalents [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Change in plan assets [Roll Forward] | |||
Fair value of plan assets, beginning of year | 0 | ||
Fair value of plan assets, end of year | 0 | 0 | |
Foreign Plan [Member] | Cash and Cash Equivalents [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Change in plan assets [Roll Forward] | |||
Fair value of plan assets, beginning of year | 0 | ||
Fair value of plan assets, end of year | 0 | 0 | |
Foreign Plan [Member] | United States [Member] | Public Equity Funds [Member] | |||
Change in plan assets [Roll Forward] | |||
Fair value of plan assets, beginning of year | 0 | ||
Fair value of plan assets, end of year | 0 | 0 | |
Foreign Plan [Member] | United States [Member] | Public Equity Funds [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Change in plan assets [Roll Forward] | |||
Fair value of plan assets, beginning of year | 0 | ||
Fair value of plan assets, end of year | 0 | 0 | |
Foreign Plan [Member] | United States [Member] | Public Equity Funds [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Change in plan assets [Roll Forward] | |||
Fair value of plan assets, beginning of year | 0 | ||
Fair value of plan assets, end of year | 0 | 0 | |
Foreign Plan [Member] | United States [Member] | Public Equity Funds [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Change in plan assets [Roll Forward] | |||
Fair value of plan assets, beginning of year | 0 | ||
Fair value of plan assets, end of year | 0 | 0 | |
Foreign Plan [Member] | Other Alternative Investments [Member] | |||
Change in plan assets [Roll Forward] | |||
Fair value of plan assets, beginning of year | 59 | ||
Fair value of plan assets, end of year | 45 | 59 | |
Foreign Plan [Member] | Other Alternative Investments [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Change in plan assets [Roll Forward] | |||
Fair value of plan assets, beginning of year | 0 | ||
Fair value of plan assets, end of year | 0 | 0 | |
Foreign Plan [Member] | Other Alternative Investments [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Change in plan assets [Roll Forward] | |||
Fair value of plan assets, beginning of year | 0 | ||
Fair value of plan assets, end of year | 0 | 0 | |
Foreign Plan [Member] | Other Alternative Investments [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Change in plan assets [Roll Forward] | |||
Fair value of plan assets, beginning of year | 59 | ||
Fair value of plan assets, end of year | 45 | 59 | |
Foreign Plan [Member] | Cash and cash equivalents, public equity, and other investments [Member] | |||
Change in plan assets [Roll Forward] | |||
Fair value of plan assets, beginning of year | 96 | ||
Fair value of plan assets, end of year | 91 | 96 | |
Foreign Plan [Member] | Cash and cash equivalents, public equity, and other investments [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Change in plan assets [Roll Forward] | |||
Fair value of plan assets, beginning of year | 37 | ||
Fair value of plan assets, end of year | 46 | 37 | |
Foreign Plan [Member] | Cash and cash equivalents, public equity, and other investments [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Change in plan assets [Roll Forward] | |||
Fair value of plan assets, beginning of year | 0 | ||
Fair value of plan assets, end of year | 0 | 0 | |
Foreign Plan [Member] | Cash and cash equivalents, public equity, and other investments [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Change in plan assets [Roll Forward] | |||
Fair value of plan assets, beginning of year | 59 | ||
Fair value of plan assets, end of year | $ 45 | $ 59 | |
Foreign Plan [Member] | Pension Plan [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Expected Long-Term Rate of Return on Plan Assets | 3.86% | 3.81% | |
Defined Benefit Plan, Plan Assets, Allocations [Abstract] | |||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 100% | ||
Defined Benefit Plan, Actual Plan Asset Allocations (in hundredths) | 100% | 100% | |
Change in projected benefit obligation [Roll Forward] | |||
Benefit obligation, beginning of year | $ 948 | $ 1,089 | |
Service cost | 11 | 19 | 17 |
Interest cost | 14 | 12 | 15 |
Actuarial gain | (264) | (68) | |
Curtailment gain | (3) | 0 | |
Settlement | 0 | 0 | |
Divestitures | 0 | (32) | |
Plan participants' contributions | 1 | 1 | |
Effect of currency exchange | (77) | (43) | |
Federal subsidy on benefits paid | 0 | 0 | |
Benefits paid | (28) | (30) | |
Benefit obligation, end of year | 602 | 948 | 1,089 |
Change in plan assets [Roll Forward] | |||
Fair value of plan assets, beginning of year | 924 | 938 | |
Actual return on plan assets | (250) | 31 | |
Effect of currency exchange | (76) | (39) | |
Company contributions | 18 | 23 | |
Reserve for third party contributions | 0 | 0 | |
Plan participants' contributions | 1 | 1 | |
Benefits paid | (28) | (30) | |
Federal subsidy on benefits paid | 0 | 0 | |
Settlements | 0 | 0 | |
Fair value of plan assets, end of year | 589 | 924 | 938 |
Funded status at end of year | (13) | (24) | |
Amounts recognized in the Consolidated Statements of Financial Position consist of [Abstract] | |||
Other noncurrent asset | 23 | 42 | |
Current liabilities | 0 | 0 | |
Post-employment obligations | (36) | (66) | |
Net amount recognized, end of year | (13) | (24) | |
Accumulated benefit obligation basis for all defined benefit pension plans | 578 | 910 | |
Defined Benefit Plan, Accumulated Other Comprehensive (Income) Loss, Prior Service Cost (Credit), before Tax | (6) | (10) | |
Components of net periodic benefit cost [Abstract] | |||
Service cost | 11 | 19 | 17 |
Interest cost | 14 | 12 | 15 |
Expected return on plan assets | (31) | (37) | (34) |
Amortization of: [Abstract] | |||
Prior service (credit) cost | 0 | (1) | (1) |
Mark-to-market adjustment | 10 | (62) | 28 |
Net periodic benefit cost | 4 | (69) | 25 |
Other changes in plan assets and benefit obligations recognized in other comprehensive income [Abstract] | |||
Curtailment gain | (4) | 0 | 0 |
Current year prior service credit (cost) | 0 | 0 | 12 |
Amortization of: [Abstract] | |||
Prior service (credit) cost | 0 | (1) | (1) |
Total | $ (4) | $ (1) | $ 11 |
Weighted-average assumptions used to determine benefit obligations for years ended [Abstract] | |||
Discount rate (in hundredths) | 4.27% | 1.57% | 1.08% |
Rate of compensation increase (in hundredths) | 3.04% | 3% | 2.94% |
Weighted-average assumptions used to determine net periodic cost for years ended [Abstract] | |||
Discount rate ( in hundredths) | 1.57% | 1.08% | 1.56% |
Discount rate for service costs | 1.31% | 1.08% | 1.56% |
Discount rate for interest costs | 1.57% | 1.08% | 1.56% |
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Expected Long-term Rate of Return on Plan Assets | 3.81% | 4.04% | 4.26% |
Rate of compensation increase (in hundredths) | 3% | 2.94% | 2.94% |
Estimated future benefits payments [Abstract] | |||
2023 | $ 28 | ||
2024 | 26 | ||
2025 | 28 | ||
2026 | 31 | ||
2027 | 35 | ||
2028-2032 | 187 | ||
Foreign Plan [Member] | Pension Plan [Member] | Adhesives Resins Disposal Group | |||
Change in projected benefit obligation [Roll Forward] | |||
Curtailment gain | 7 | ||
Amortization of: [Abstract] | |||
Prior service (credit) cost | (4) | ||
Settlement | 3 | ||
Mark-to-market pension and other postretirement benefits loss (gain), net (1) | 3 | ||
Foreign Plan [Member] | Pension Plan [Member] | Other Investments [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Change in plan assets [Roll Forward] | |||
Fair value of plan assets, beginning of year | 59 | $ 68 | |
Defined benefit plan unrealized gains | (14) | (9) | |
Fair value of plan assets, end of year | $ 45 | $ 59 | $ 68 |
Foreign Plan [Member] | Pension Plan [Member] | Private Equity Securities [Member] | |||
Defined Benefit Plan, Plan Assets, Allocations [Abstract] | |||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 21% | ||
Defined Benefit Plan, Actual Plan Asset Allocations (in hundredths) | 20% | 22% | |
Foreign Plan [Member] | Pension Plan [Member] | Debt Securities [Member] | |||
Defined Benefit Plan, Plan Assets, Allocations [Abstract] | |||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 60% | ||
Defined Benefit Plan, Actual Plan Asset Allocations (in hundredths) | 62% | 59% | |
Foreign Plan [Member] | Pension Plan [Member] | Real Estate [Member] | |||
Defined Benefit Plan, Plan Assets, Allocations [Abstract] | |||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 4% | ||
Defined Benefit Plan, Actual Plan Asset Allocations (in hundredths) | 4% | 4% | |
Foreign Plan [Member] | Pension Plan [Member] | Other Investment Companies [Member] | |||
Defined Benefit Plan, Plan Assets, Allocations [Abstract] | |||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 15% | ||
Defined Benefit Plan, Actual Plan Asset Allocations (in hundredths) | 14% | 15% | |
UNITED STATES | |||
Defined Benefit Plan, Information about Plan Assets [Abstract] | |||
Amount of defined benefit pension plan funded by the company | $ 0 | ||
Defined Benefit Plan, Pension Plan with Project Benefit Obligation in Excess of Plan Assets [Abstract] | |||
Projected benefit obligation | 1,471 | $ 175 | |
Fair value of plan assets | 1,405 | 119 | |
Defined Benefit Plan, Plan with Accumulated Benefit Obligation in Excess of Plan Assets [Abstract] | |||
Accumulated benefit obligation | 245 | 161 | |
Fair value of plan assets | 188 | 119 | |
Change in plan assets [Roll Forward] | |||
Fair value of plan assets, beginning of year | 1,877 | ||
Fair value of plan assets, end of year | 1,405 | 1,877 | |
UNITED STATES | Investments measured at net asset value [Member] | |||
Change in plan assets [Roll Forward] | |||
Fair value of plan assets, beginning of year | 1,829 | ||
Fair value of plan assets, end of year | 1,374 | 1,829 | |
UNITED STATES | Cash and Cash Equivalents [Member] | |||
Change in plan assets [Roll Forward] | |||
Fair value of plan assets, beginning of year | 45 | ||
Fair value of plan assets, end of year | 27 | 45 | |
UNITED STATES | Cash and Cash Equivalents [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Change in plan assets [Roll Forward] | |||
Fair value of plan assets, beginning of year | 45 | ||
Fair value of plan assets, end of year | 27 | 45 | |
UNITED STATES | Cash and Cash Equivalents [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Change in plan assets [Roll Forward] | |||
Fair value of plan assets, beginning of year | 0 | ||
Fair value of plan assets, end of year | 0 | 0 | |
UNITED STATES | Cash and Cash Equivalents [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Change in plan assets [Roll Forward] | |||
Fair value of plan assets, beginning of year | 0 | ||
Fair value of plan assets, end of year | 0 | 0 | |
UNITED STATES | United States [Member] | Public Equity Funds [Member] | |||
Change in plan assets [Roll Forward] | |||
Fair value of plan assets, beginning of year | 3 | ||
Fair value of plan assets, end of year | 4 | 3 | |
UNITED STATES | United States [Member] | Public Equity Funds [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Change in plan assets [Roll Forward] | |||
Fair value of plan assets, beginning of year | 3 | ||
Fair value of plan assets, end of year | 4 | 3 | |
UNITED STATES | United States [Member] | Public Equity Funds [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Change in plan assets [Roll Forward] | |||
Fair value of plan assets, beginning of year | 0 | ||
Fair value of plan assets, end of year | 0 | 0 | |
UNITED STATES | United States [Member] | Public Equity Funds [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Change in plan assets [Roll Forward] | |||
Fair value of plan assets, beginning of year | 0 | ||
Fair value of plan assets, end of year | 0 | 0 | |
UNITED STATES | Other Alternative Investments [Member] | |||
Change in plan assets [Roll Forward] | |||
Fair value of plan assets, beginning of year | 0 | ||
Fair value of plan assets, end of year | 0 | 0 | |
UNITED STATES | Other Alternative Investments [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Change in plan assets [Roll Forward] | |||
Fair value of plan assets, beginning of year | 0 | ||
Fair value of plan assets, end of year | 0 | 0 | |
UNITED STATES | Other Alternative Investments [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Change in plan assets [Roll Forward] | |||
Fair value of plan assets, beginning of year | 0 | ||
Fair value of plan assets, end of year | 0 | 0 | |
UNITED STATES | Other Alternative Investments [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Change in plan assets [Roll Forward] | |||
Fair value of plan assets, beginning of year | 0 | ||
Fair value of plan assets, end of year | 0 | 0 | |
UNITED STATES | Cash and cash equivalents, public equity, and other investments [Member] | |||
Change in plan assets [Roll Forward] | |||
Fair value of plan assets, beginning of year | 48 | ||
Fair value of plan assets, end of year | 31 | 48 | |
UNITED STATES | Cash and cash equivalents, public equity, and other investments [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Change in plan assets [Roll Forward] | |||
Fair value of plan assets, beginning of year | 48 | ||
Fair value of plan assets, end of year | 31 | 48 | |
UNITED STATES | Cash and cash equivalents, public equity, and other investments [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Change in plan assets [Roll Forward] | |||
Fair value of plan assets, beginning of year | 0 | ||
Fair value of plan assets, end of year | 0 | 0 | |
UNITED STATES | Cash and cash equivalents, public equity, and other investments [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Change in plan assets [Roll Forward] | |||
Fair value of plan assets, beginning of year | 0 | ||
Fair value of plan assets, end of year | $ 0 | $ 0 | |
UNITED STATES | Pension Plan [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Expected Long-Term Rate of Return on Plan Assets | 6.62% | 7.07% | |
Defined Benefit Plan, Plan Assets, Allocations [Abstract] | |||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 100% | ||
Defined Benefit Plan, Actual Plan Asset Allocations (in hundredths) | 100% | 100% | |
Change in projected benefit obligation [Roll Forward] | |||
Benefit obligation, beginning of year | $ 1,892 | $ 2,050 | |
Service cost | 25 | 26 | 25 |
Interest cost | 45 | 37 | 57 |
Actuarial gain | (328) | (49) | |
Curtailment gain | 0 | 0 | |
Settlement | 9 | 6 | |
Divestitures | 0 | 0 | |
Plan participants' contributions | 0 | 0 | |
Effect of currency exchange | 0 | 0 | |
Federal subsidy on benefits paid | 0 | 0 | |
Benefits paid | (154) | (166) | |
Benefit obligation, end of year | 1,471 | 1,892 | 2,050 |
Change in plan assets [Roll Forward] | |||
Fair value of plan assets, beginning of year | 1,877 | 1,798 | |
Actual return on plan assets | (312) | 247 | |
Effect of currency exchange | 0 | 0 | |
Company contributions | 3 | 4 | |
Reserve for third party contributions | 0 | 0 | |
Plan participants' contributions | 0 | 0 | |
Benefits paid | (154) | (166) | |
Federal subsidy on benefits paid | 0 | 0 | |
Settlements | (9) | (6) | |
Fair value of plan assets, end of year | 1,405 | 1,877 | 1,798 |
Funded status at end of year | (66) | (15) | |
Amounts recognized in the Consolidated Statements of Financial Position consist of [Abstract] | |||
Other noncurrent asset | 0 | 41 | |
Current liabilities | (13) | (3) | |
Post-employment obligations | (53) | (53) | |
Net amount recognized, end of year | (66) | (15) | |
Accumulated benefit obligation basis for all defined benefit pension plans | 1,417 | 1,803 | |
Defined Benefit Plan, Accumulated Other Comprehensive (Income) Loss, Prior Service Cost (Credit), before Tax | 0 | 1 | |
Components of net periodic benefit cost [Abstract] | |||
Service cost | 25 | 26 | 25 |
Interest cost | 45 | 37 | 57 |
Expected return on plan assets | (128) | (126) | (135) |
Amortization of: [Abstract] | |||
Prior service (credit) cost | 1 | 0 | 1 |
Mark-to-market adjustment | 112 | (170) | 163 |
Net periodic benefit cost | 55 | (233) | 111 |
Other changes in plan assets and benefit obligations recognized in other comprehensive income [Abstract] | |||
Curtailment gain | 0 | 0 | 0 |
Current year prior service credit (cost) | 0 | 0 | 0 |
Amortization of: [Abstract] | |||
Prior service (credit) cost | 1 | 0 | 1 |
Total | 1 | $ 0 | $ 1 |
Mark-to-market pension and other postretirement benefits loss (gain), net (1) | $ (7) | ||
Weighted-average assumptions used to determine benefit obligations for years ended [Abstract] | |||
Discount rate (in hundredths) | 5.58% | 2.88% | 2.48% |
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Weighted-Average Interest Crediting Rate | 5.48% | 5.50% | 5.50% |
Rate of compensation increase (in hundredths) | 3% | 3% | 2.75% |
Weighted-average assumptions used to determine net periodic cost for years ended [Abstract] | |||
Discount rate ( in hundredths) | 2.88% | 2.48% | 3.25% |
Discount rate for service costs | 2.95% | 2.57% | 3.31% |
Discount rate for interest costs | 2.46% | 1.79% | 2.83% |
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Expected Long-term Rate of Return on Plan Assets | 7.07% | 7.29% | 7.37% |
Rate of compensation increase (in hundredths) | 3% | 2.75% | 3.25% |
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Weighted-Average Interest Crediting Rate | 5.50% | 5.50% | 5.52% |
Estimated future benefits payments [Abstract] | |||
2023 | $ 230 | ||
2024 | 123 | ||
2025 | 122 | ||
2026 | 121 | ||
2027 | 126 | ||
2028-2032 | $ 604 | ||
UNITED STATES | Pension Plan [Member] | Private Equity Securities [Member] | |||
Defined Benefit Plan, Plan Assets, Allocations [Abstract] | |||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 39% | ||
Defined Benefit Plan, Actual Plan Asset Allocations (in hundredths) | 36% | 38% | |
UNITED STATES | Pension Plan [Member] | Debt Securities [Member] | |||
Defined Benefit Plan, Plan Assets, Allocations [Abstract] | |||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 38% | ||
Defined Benefit Plan, Actual Plan Asset Allocations (in hundredths) | 39% | 43% | |
UNITED STATES | Pension Plan [Member] | Real Estate [Member] | |||
Defined Benefit Plan, Plan Assets, Allocations [Abstract] | |||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 8% | ||
Defined Benefit Plan, Actual Plan Asset Allocations (in hundredths) | 7% | 3% | |
UNITED STATES | Pension Plan [Member] | Other Investment Companies [Member] | |||
Defined Benefit Plan, Plan Assets, Allocations [Abstract] | |||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 15% | ||
Defined Benefit Plan, Actual Plan Asset Allocations (in hundredths) | 18% | 16% |
LEASES AND OTHER COMMITMENTS _3
LEASES AND OTHER COMMITMENTS Leases (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Leases [Abstract] | |||
Operating Lease, Right-of-Use Asset, Reclassified | $ 3 | $ 3 | |
Lessee, Operating Lease, Liability, to be Paid, Year One | 58 | 55 | |
Lessee, Operating Lease, Liability, Payments, Due Year Two | 46 | 44 | |
Lessee, Operating Lease, Liability, Payments, Due Year Three | 37 | 31 | |
Lessee, Operating Lease, Liability, Payments, Due Year Four | 26 | 24 | |
Lessee, Operating Lease, Liability, Payments, Due Year Five | 17 | 18 | |
Lessee, Operating Lease, Liability, Payments, Due after Year Five | 38 | 53 | |
Lessee, Operating Lease, Liability, Payments, Due | 222 | 225 | |
Lessee, Operating Lease, Liability, Undiscounted Excess Amount | 20 | 18 | |
Operating Lease, Cost | 67 | 71 | $ 73 |
Short-term Lease, Cost | 45 | 40 | 37 |
Sublease Income | (13) | (4) | (4) |
Lease, Cost | 99 | 107 | $ 106 |
Operating Lease, Payments | 67 | 69 | |
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability | $ 69 | $ 110 | |
Operating Lease, Weighted Average Remaining Lease Term | 6 years | 6 years | |
Operating Lease, Weighted Average Discount Rate, Percent | 3.20% | 2.70% | |
Lessor, Lease, Description [Line Items] | |||
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Accounts Payable and Accrued Liabilities, Current | Accounts Payable and Accrued Liabilities, Current | |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Other long-term liabilities | Other long-term liabilities | |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Other Assets, Noncurrent | Other Assets, Noncurrent | |
Operating Lease, Right-of-Use, Prepaid Amount | $ 6 | $ 5 | |
Operating Lease, Payments | 67 | 69 | |
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability | $ 69 | $ 110 | |
Operating Lease, Weighted Average Remaining Lease Term | 6 years | 6 years | |
Operating Lease, Weighted Average Discount Rate, Percent | 3.20% | 2.70% | |
Operating Lease, Right-of-Use Asset, Reclassified | $ 3 | $ 3 | |
Other Noncurrent Liabilities [Member] | |||
Lessor, Lease, Description [Line Items] | |||
Operating Lease, Liability | $ 202 | $ 207 |
LEASES AND OTHER COMMITMENTS Co
LEASES AND OTHER COMMITMENTS Commitments (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Other Commitments [Line Items] | |
2023 | $ 1,737 |
2024 | 699 |
2025 | 1,101 |
2026 | 891 |
2027 | 1,023 |
2028 and beyond | 6,273 |
Other Commitment | $ 11,724 |
Unrecorded Unconditional Purchase Obligation, Term | 30 years |
Guarantor Obligations, Term | 15 years |
Guarantor Obligations, Maximum Exposure, Undiscounted | $ 160 |
Unrecorded Unconditional Purchase Obligation, Purchases | 3,100 |
Debt Securities [Member] | |
Other Commitments [Line Items] | |
2023 | 800 |
2024 | 241 |
2025 | 693 |
2026 | 530 |
2027 | 196 |
2028 and beyond | 1,866 |
Other Commitment | 4,326 |
Revolving Credit Facility [Member] | |
Other Commitments [Line Items] | |
2023 | 326 |
2024 | 0 |
2025 | 0 |
2026 | 0 |
2027 | 499 |
2028 and beyond | 0 |
Other Commitment | 825 |
Interest payable [Member] | |
Other Commitments [Line Items] | |
2023 | 180 |
2024 | 162 |
2025 | 143 |
2026 | 131 |
2027 | 97 |
2028 and beyond | 1,091 |
Other Commitment | 1,804 |
Obligations [Member] | |
Other Commitments [Line Items] | |
2023 | 166 |
2024 | 170 |
2025 | 140 |
2026 | 118 |
2027 | 112 |
2028 and beyond | 2,366 |
Unrecorded Unconditional Purchase Obligation, Purchases | 3,072 |
Operating leases [Member] | |
Other Commitments [Line Items] | |
2023 | 58 |
2024 | 46 |
2025 | 37 |
2026 | 26 |
2027 | 17 |
2028 and beyond | 38 |
Other Commitment | 222 |
Other Liabilities [Member] | |
Other Commitments [Line Items] | |
2023 | 207 |
2024 | 80 |
2025 | 88 |
2026 | 86 |
2027 | 102 |
2028 and beyond | 912 |
Other Commitment | $ 1,475 |
ENVIRONMENTAL MATTERS (Details)
ENVIRONMENTAL MATTERS (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Accrual for Environmental Loss Contingencies [Roll Forward] | |||
Beginning of period | $ 281 | ||
End of period | $ 274 | $ 281 | |
Expected Payment Period of Environmental Contingencies | 30 years | ||
Accrual for Environmental Loss Contingencies [Abstract] | |||
Accrued Environmental Loss Contingencies, Current | $ 10 | 20 | |
Accrued Environmental Loss Contingencies, Noncurrent | 264 | 261 | |
Environmental Costs [Abstract] | |||
Cash expenditures related to environmental protection and improvement | 300 | 281 | $ 265 |
Environmental capital expenditures | 60 | 38 | 42 |
Environmental Remediation [Member] | |||
Accrual for Environmental Loss Contingencies [Roll Forward] | |||
Beginning of period | 253 | 257 | |
Changes in estimates recorded to earnings and other | 6 | 9 | |
Cash reductions | (14) | (13) | |
End of period | 245 | 253 | $ 257 |
Shared Sites [Member] | |||
Site Contingency [Line Items] | |||
Maximum funding required for environmental shared sites | 325 | ||
Amounts paid for Environmental Remediation to Date for Shared Sites | 117 | ||
Loss Contingency, Estimate of Possible Loss | 200 | ||
Environmental ARO [Member] | |||
Accrual for Environmental Loss Contingencies [Roll Forward] | |||
Best Estimate Accrued to-date For Asset Retirement Obligation | 29 | 28 | |
Non Environmental ARO [Member] | |||
Accrual for Environmental Loss Contingencies [Roll Forward] | |||
Best Estimate Accrued to-date For Asset Retirement Obligation | 51 | 51 | |
Minimum [Member] | Environmental Remediation [Member] | |||
Site Contingency [Line Items] | |||
Loss Contingency, Estimate of Possible Loss | 245 | 253 | |
Maximum [Member] | Environmental Remediation [Member] | |||
Site Contingency [Line Items] | |||
Loss Contingency, Estimate of Possible Loss | $ 457 | $ 473 |
STOCKHOLDERS' EQUITY (Details)
STOCKHOLDERS' EQUITY (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||
Dec. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 01, 2021 | Dec. 31, 2019 | Feb. 01, 2018 | |
All Classes Of Equity Shares Authorized For Issue | 400,000,000 | 400,000,000 | |||||
Preferred Stock, Shares Authorized | 50,000,000 | 50,000,000 | |||||
Preferred Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 | |||||
Common Stock, Shares Authorized | 350,000,000 | 350,000,000 | 350,000,000 | ||||
Common Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 | $ 0.01 | ||||
Cash dividends declared (per share) | $ 3.07 | $ 2.83 | $ 2.67 | ||||
Class of Warrant or Right, Outstanding | 6,000,000 | 6,000,000 | |||||
Stock Repurchases | $ (1,002) | $ (1,000) | $ (60) | ||||
Treasury stock held by the Companys charitable foundation in shares | 50,798 | 50,798 | 50,798 | 50,798 | |||
Treasury Stock, Shares, Acquired | 10,710,259 | 8,061,779 | 1,134,052 | ||||
Stockholders' Equity [Roll Forward] | |||||||
Beginning Balance | $ 5,704 | ||||||
Net Earnings | 793 | $ 857 | $ 478 | ||||
Income attributable to noncontrolling interest | 3 | 10 | 11 | ||||
Net earnings including noncontrolling interest | 796 | 867 | 489 | ||||
Cash dividends declared | (377) | (380) | (363) | ||||
Other Comprehensive Income | (23) | 91 | (59) | ||||
Share-Based Compensation Expense | 69 | 70 | 44 | ||||
Stock Option Exercises | 9 | 62 | 36 | ||||
Stockholders' Equity, Other | (24) | (16) | (9) | ||||
Stock Repurchases | (1,002) | (1,000) | (60) | ||||
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders | (14) | (2) | |||||
Ending Balance | $ 5,153 | 5,153 | 5,704 | ||||
Total equity | $ 5,236 | 5,236 | 5,788 | 6,108 | $ 6,032 | ||
Earnings Per Share [Abstract] | |||||||
Net earnings attributable to Eastman | $ 793 | $ 857 | $ 478 | ||||
Shares used for earnings per share calculation, Basic (in shares) | 123,500,000 | 134,900,000 | 135,500,000 | ||||
Weighted Average Number Diluted Shares Outstanding Adjustment | 1,400,000 | 2,200,000 | 1,000,000 | ||||
Shares used for earnings per share calculation, Diluted (in shares) | 124,900,000 | 137,100,000 | 136,500,000 | ||||
Basic earnings per share attributable to Eastman | $ 6.42 | $ 6.35 | $ 3.53 | ||||
Diluted earnings per share attributable to Eastman | $ 6.35 | $ 6.25 | $ 3.50 | ||||
Underlying options excluded from the computation of diluted earnings per share (in shares) | 1,398,110 | 150,781 | 2,424,826 | ||||
Shares of common stock issued [Abstract] | |||||||
Balance, beginning of period (in shares) | 221,809,309 | 220,641,506 | 219,638,646 | ||||
Shares Issued, Shares, Share-based Payment Arrangement, after Forfeiture | 539,248 | 1,167,803 | 1,002,860 | ||||
Balance, ending of period (in shares) | 222,348,557 | 222,348,557 | 221,809,309 | 220,641,506 | |||
Retained earnings | $ 8,973 | $ 8,973 | $ 8,557 | $ 8,080 | $ 7,965 | ||
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss) Arising During Period, before Tax | 0 | 0 | 12 | ||||
Prior service credit arising during the period | 0 | 0 | (9) | ||||
Other Comprehensive Income | (23) | 91 | (59) | ||||
Stock Repurchased During Period, Value | 1,102 | 900 | |||||
Less: Treasury stock at cost (103,602,488 and 92,892,229 shares for 2022 and 2021, respectively) | 5,932 | 5,932 | 4,860 | ||||
Accumulated Other Comprehensive Income Loss Net Of Tax Abstract | |||||||
Accumulated Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Net of Tax | (230) | (230) | (237) | (293) | |||
Unrecognized Prior Service Credits for Benefit Plans | 32 | 32 | 59 | 87 | |||
Unrealized Losses on Investments | (1) | (1) | (1) | (1) | |||
Accumulated other comprehensive loss | (205) | (205) | (182) | (273) | |||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | 7 | 56 | (29) | ||||
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, after Tax | (27) | (28) | |||||
Unrealized Losses on Investments | 0 | 0 | |||||
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | (23) | 91 | |||||
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | 7 | 56 | (29) | ||||
Prior service credit arising during the period | 0 | 0 | (9) | ||||
Amortization of unrecognized prior service credits included in net periodic costs | (27) | (28) | (28) | ||||
AOCI, Cash Flow Hedge, Cumulative Gain (Loss), after Tax | (6) | (6) | (3) | (66) | |||
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), after Reclassification and Tax | (3) | 63 | |||||
Unrealized gain (loss) during period | 53 | 66 | (34) | ||||
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification, after Tax | 56 | 3 | (23) | ||||
Other Comprehensive Income (Loss), before Tax [Abstract] | |||||||
Change in cumulative translation adjustment | 7 | 56 | (29) | ||||
Other Comprehensive (Income) Loss, Defined Benefit Plan, Reclassification Adjustment from AOCI, before Tax | (34) | (38) | (38) | ||||
Unrealized Gain (Loss) on Foreign Currency Derivatives, Net, before Tax | 71 | 88 | (46) | ||||
Reclassification adjustment for loss included in net income | (75) | (4) | 31 | ||||
Total other comprehensive income (loss) | (31) | 102 | (70) | ||||
ASR Date Dec 2021 | |||||||
Stock Repurchase Program, Authorized Amount | 500 | 500 | |||||
Stock Repurchases | (100) | ||||||
Stockholders' Equity [Roll Forward] | |||||||
Stock Repurchases | (100) | ||||||
ASR Date Q2 2022 | |||||||
Stock Repurchase Program, Authorized Amount | 500 | 500 | |||||
Shares of common stock issued [Abstract] | |||||||
Payments for Repurchase of Equity | 500 | ||||||
Common Stock [Member] | |||||||
Stock Repurchases | 0 | 0 | 0 | ||||
Stockholders' Equity [Roll Forward] | |||||||
Beginning Balance | 2 | 2 | 2 | ||||
Net Earnings | 0 | 0 | 0 | ||||
Cash dividends declared | 0 | 0 | 0 | ||||
Other Comprehensive Income | 0 | 0 | 0 | ||||
Share-Based Compensation Expense | 0 | 0 | 0 | ||||
Stock Option Exercises | 0 | 0 | 0 | ||||
Stockholders' Equity, Other | 0 | 0 | 0 | ||||
Stock Repurchases | 0 | 0 | 0 | ||||
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders | 0 | 0 | |||||
Ending Balance | 2 | 2 | 2 | 2 | |||
Earnings Per Share [Abstract] | |||||||
Net earnings attributable to Eastman | 0 | 0 | 0 | ||||
Shares of common stock issued [Abstract] | |||||||
Other Comprehensive Income | 0 | 0 | 0 | ||||
Additional Paid In Capital [Member] | |||||||
Stock Repurchases | 0 | ||||||
Stockholders' Equity [Roll Forward] | |||||||
Beginning Balance | 2,187 | 2,174 | 2,105 | ||||
Net Earnings | 0 | 0 | 0 | ||||
Cash dividends declared | 0 | 0 | 0 | ||||
Other Comprehensive Income | 0 | 0 | 0 | ||||
Share-Based Compensation Expense | 69 | 70 | 44 | ||||
Stock Option Exercises | 9 | 62 | 36 | ||||
Stockholders' Equity, Other | (20) | (19) | (11) | ||||
Accelerated Share Repurchase Program, Adjustment | (70) | 100 | |||||
Stock Repurchases | 0 | ||||||
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders | 0 | 0 | |||||
Ending Balance | 2,315 | 2,315 | 2,187 | 2,174 | |||
Earnings Per Share [Abstract] | |||||||
Net earnings attributable to Eastman | 0 | 0 | 0 | ||||
Shares of common stock issued [Abstract] | |||||||
Other Comprehensive Income | 0 | 0 | 0 | ||||
Retained Earnings [Member] | |||||||
Stock Repurchases | 0 | 0 | 0 | ||||
Stockholders' Equity [Roll Forward] | |||||||
Beginning Balance | 8,557 | 8,080 | 7,965 | ||||
Net Earnings | 793 | 857 | 478 | ||||
Cash dividends declared | (377) | (380) | (363) | ||||
Other Comprehensive Income | 0 | 0 | 0 | ||||
Share-Based Compensation Expense | 0 | 0 | 0 | ||||
Stock Option Exercises | 0 | 0 | 0 | ||||
Stockholders' Equity, Other | 0 | 0 | 0 | ||||
Stock Repurchases | 0 | 0 | 0 | ||||
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders | 0 | 0 | |||||
Ending Balance | 8,973 | 8,973 | 8,557 | 8,080 | |||
Earnings Per Share [Abstract] | |||||||
Net earnings attributable to Eastman | 793 | 857 | 478 | ||||
Shares of common stock issued [Abstract] | |||||||
Other Comprehensive Income | 0 | 0 | 0 | ||||
Accumulated Other Comprehensive Income [Member] | |||||||
Stock Repurchases | 0 | 0 | 0 | ||||
Stockholders' Equity [Roll Forward] | |||||||
Beginning Balance | (182) | (273) | (214) | ||||
Net Earnings | 0 | 0 | 0 | ||||
Cash dividends declared | 0 | 0 | 0 | ||||
Other Comprehensive Income | (23) | 91 | (59) | ||||
Share-Based Compensation Expense | 0 | 0 | 0 | ||||
Stock Option Exercises | 0 | 0 | 0 | ||||
Stockholders' Equity, Other | 0 | 0 | 0 | ||||
Stock Repurchases | 0 | 0 | 0 | ||||
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders | 0 | 0 | |||||
Ending Balance | (205) | (205) | (182) | (273) | |||
Earnings Per Share [Abstract] | |||||||
Net earnings attributable to Eastman | 0 | 0 | 0 | ||||
Shares of common stock issued [Abstract] | |||||||
Other Comprehensive Income | (23) | 91 | (59) | ||||
Treasury Stock [Member] | |||||||
Stock Repurchases | (1,072) | (900) | (60) | ||||
Stockholders' Equity [Roll Forward] | |||||||
Beginning Balance | (4,860) | (3,960) | (3,900) | ||||
Net Earnings | 0 | 0 | 0 | ||||
Cash dividends declared | 0 | 0 | 0 | ||||
Other Comprehensive Income | 0 | 0 | 0 | ||||
Share-Based Compensation Expense | 0 | 0 | 0 | ||||
Stock Option Exercises | 0 | 0 | 0 | ||||
Stockholders' Equity, Other | 0 | 0 | 0 | ||||
Stock Repurchases | (1,072) | (900) | (60) | ||||
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders | 0 | 0 | |||||
Ending Balance | (5,932) | (5,932) | (4,860) | (3,960) | |||
Earnings Per Share [Abstract] | |||||||
Net earnings attributable to Eastman | 0 | 0 | 0 | ||||
Shares of common stock issued [Abstract] | |||||||
Other Comprehensive Income | 0 | 0 | 0 | ||||
Eastman's Stockholders' Equity [Member] | |||||||
Stock Repurchases | (1,002) | (1,000) | (60) | ||||
Stockholders' Equity [Roll Forward] | |||||||
Beginning Balance | 5,704 | 6,023 | 5,958 | ||||
Net Earnings | 793 | 857 | 478 | ||||
Cash dividends declared | (377) | (380) | (363) | ||||
Other Comprehensive Income | (23) | 91 | (59) | ||||
Share-Based Compensation Expense | 69 | 70 | 44 | ||||
Stock Option Exercises | 9 | 62 | 36 | ||||
Stockholders' Equity, Other | (20) | (19) | (11) | ||||
Stock Repurchases | (1,002) | (1,000) | (60) | ||||
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders | 0 | 0 | |||||
Ending Balance | 5,153 | 5,153 | 5,704 | 6,023 | |||
Earnings Per Share [Abstract] | |||||||
Net earnings attributable to Eastman | 793 | 857 | 478 | ||||
Shares of common stock issued [Abstract] | |||||||
Other Comprehensive Income | (23) | 91 | (59) | ||||
Noncontrolling Interest [Member] | |||||||
Stock Repurchases | 0 | 0 | 0 | ||||
Stockholders' Equity [Roll Forward] | |||||||
Beginning Balance | 84 | 85 | 74 | ||||
Income attributable to noncontrolling interest | 3 | 10 | 11 | ||||
Cash dividends declared | 0 | 0 | 0 | ||||
Other Comprehensive Income | 0 | 0 | 0 | ||||
Share-Based Compensation Expense | 0 | 0 | 0 | ||||
Stock Option Exercises | 0 | 0 | 0 | ||||
Stockholders' Equity, Other | (4) | 3 | 2 | ||||
Stock Repurchases | 0 | 0 | 0 | ||||
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders | (14) | (2) | |||||
Ending Balance | 83 | 83 | 84 | 85 | |||
Shares of common stock issued [Abstract] | |||||||
Other Comprehensive Income | $ 0 | $ 0 | $ 0 | ||||
2018 Repurchase Program [Member] | |||||||
Stock Repurchase Program, Authorized Amount | $ 2,000 | ||||||
Treasury Stock, Shares, Acquired | 19,915,370 | ||||||
2021 Repurchase Program | |||||||
Stock Repurchase Program, Authorized Amount | $ 2,500 | ||||||
Treasury Stock, Shares, Acquired | 6,743,883 | ||||||
Shares of common stock issued [Abstract] | |||||||
Less: Treasury stock at cost (103,602,488 and 92,892,229 shares for 2022 and 2021, respectively) | $ 635 | $ 635 |
ASSET IMPAIRMENTS AND RESTRUC_3
ASSET IMPAIRMENTS AND RESTRUCTURING (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Restructuring Cost and Reserve [Line Items] | |||
Asset Impairment Charges | $ 0 | $ 16 | $ 146 |
Impairment of Long-Lived Assets to be Disposed of | 0 | 16 | 21 |
Other Asset Impairment Charges | 15 | (1) | 0 |
Impairment of Intangible Assets (Excluding Goodwill) | 0 | 0 | 125 |
Severance Costs | 30 | 2 | 65 |
Business Exit Costs | 7 | 30 | 16 |
Asset impairments and restructuring charges, net | 52 | 47 | 227 |
Restructuring Charge [Roll Forward] | |||
Balance at Beginning of Period | 17 | 79 | 28 |
Restructuring Reserve, Period Increase (Decrease) | 52 | 47 | 227 |
Restructuring Reserve, Accrual Adjustment | 1 | (26) | (144) |
Cash Reductions | (35) | (83) | (32) |
Balance at End of Period | 35 | 17 | 79 |
Non-Cash Charges [Member] | |||
Restructuring Charge [Roll Forward] | |||
Balance at Beginning of Period | 0 | 0 | 0 |
Restructuring Reserve, Period Increase (Decrease) | 16 | 145 | |
Non-cash Reductions | (16) | (145) | |
Cash Reductions | 0 | 0 | |
Balance at End of Period | 0 | 0 | |
Employee Severance [Member] | |||
Restructuring Charge [Roll Forward] | |||
Balance at Beginning of Period | 12 | 65 | 17 |
Restructuring Reserve, Period Increase (Decrease) | 31 | 2 | 65 |
Restructuring Reserve, Accrual Adjustment | 0 | (1) | 1 |
Cash Reductions | (9) | (54) | (18) |
Balance at End of Period | 34 | 12 | 65 |
Site Closure and Restructuring Costs [Member] | |||
Restructuring Charge [Roll Forward] | |||
Balance at Beginning of Period | 5 | 14 | 11 |
Restructuring Reserve, Period Increase (Decrease) | 21 | 29 | 17 |
Restructuring Reserve, Accrual Adjustment | 1 | (9) | 0 |
Cash Reductions | (26) | (29) | (14) |
Balance at End of Period | 1 | 5 | 14 |
Additives And Functional Products [Member] | Customer-Related Intangible Assets [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Impairment of Intangible Assets (Excluding Goodwill) | 0 | 0 | 2 |
Corporate and Other | Trade Names | |||
Restructuring Cost and Reserve [Line Items] | |||
Impairment of Intangible Assets (Excluding Goodwill) | 0 | 0 | 123 |
Site Closure Tire Additives Asia Pacific Tire Additives [Member] | Corporate and Other | |||
Restructuring Cost and Reserve [Line Items] | |||
Impairment of Long-Lived Assets to be Disposed of | 0 | 12 | 5 |
Severance Costs | 0 | 0 | 3 |
Other Restructuring Costs | 0 | 6 | 0 |
Site Closure Tire Additives Asia Pacific Tire Additives [Member] | Corporate and Other | Non-US | |||
Restructuring Cost and Reserve [Line Items] | |||
Impairment of Long-Lived Assets to be Disposed of | 4 | ||
Site Closure Tire Additives Asia Pacific Tire Additives [Member] | Corporate and Other | North America [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Impairment of Long-Lived Assets to be Disposed of | 8 | ||
Site Closure Performance Films North America 2020 [Member] | Advanced Materials [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Impairment of Long-Lived Assets to be Disposed of | 0 | 0 | 5 |
Severance Costs | 1 | 0 | 3 |
Other Restructuring Costs | 0 | 2 | 0 |
Site Closure Animal Nutrition Asia Pacific [Member] | Additives And Functional Products [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Impairment of Long-Lived Assets to be Disposed of | 0 | 0 | 3 |
Other Asset Impairment Charges | 0 | (1) | 0 |
Severance Costs | 0 | 0 | 1 |
Other Restructuring Costs | 0 | 0 | (2) |
Polyester Based Fibers [Member] | Corporate, Non-Segment [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Impairment of Long-Lived Assets to be Disposed of | 0 | 0 | 8 |
Other Restructuring Costs | 0 | 0 | 4 |
Site Closure Advanced Interlayers North America 2020 [Member] | Advanced Materials [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Impairment of Long-Lived Assets to be Disposed of | 0 | 1 | 0 |
Other Asset Impairment Charges | 16 | 0 | 0 |
Severance Costs | 0 | 1 | 5 |
Other Restructuring Costs | 2 | 5 | 0 |
Restructuring and Related Cost, Accelerated Depreciation | 4 | 8 | |
Site Closure Singapore 2019 [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Asset Impairment Charges | 0 | 3 | 0 |
Severance Costs | 0 | 0 | 6 |
Other Restructuring Costs | 3 | 17 | 0 |
Site Closure Singapore 2019 [Member] | Additives And Functional Products [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Asset Impairment Charges | 1 | ||
Severance Costs | 1 | ||
Other Restructuring Costs | 3 | ||
Site Closure Singapore 2019 [Member] | Chemical Intermediates [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Asset Impairment Charges | 2 | ||
Severance Costs | 5 | ||
Other Restructuring Costs | 3 | 14 | |
Corporate Cost Actions [Member] | Corporate, Non-Segment [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Severance Costs | 22 | 1 | 47 |
Other Restructuring Costs | 0 | 0 | 14 |
Site Closure Tire Additives Asia Pacific | Corporate and Other | |||
Restructuring Cost and Reserve [Line Items] | |||
Other Asset Impairment Charges | (1) | 0 | 0 |
Site Closure Acetate Yarn 2022 | Fibers [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Severance Costs | 7 | 0 | 0 |
Business Exit Costs | $ 2 | $ 0 | $ 0 |
OTHER CHARGES (INCOME), NET (De
OTHER CHARGES (INCOME), NET (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Other Income and Expenses [Abstract] | |||
Foreign exchange transaction losses (gains), net (1) | $ 16 | $ 10 | $ 16 |
(Income) loss from equity investments and other investment (gains) losses, net | (19) | (16) | (15) |
Other, net (2) | (3) | (11) | 7 |
Other (income) charges, net | $ (6) | $ (17) | $ 8 |
SHARE-BASED COMPENSATION PLAN_3
SHARE-BASED COMPENSATION PLANS AND AWARDS Part 1 (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense recognized in selling, general and administrative expense | $ 69 | $ 70 | $ 44 |
Share-based compensation expense, retirement eligibility preceding the requisite vesting period | $ 7 | 2 | 1 |
Summary of activity of stock option awards [Roll Forward] | |||
Number Outstanding at end of period (in shares) | 3,479,200 | ||
Weighted-Average Remaining Contractual Life (in years) | 6 years | ||
Share-based Payment Arrangement, Option, Exercise Price Range, Outstanding, Weighted Average Exercise Price | $ 88 | ||
Number Exercisable at end of period (in shares) | 2,534,400 | ||
Weighted-Average Exercise Price (in dollars per share) | $ 83 | ||
Exercise price of options lower range (in dollars per share) | 61 | ||
Exercise prices of options upper range (in dollars per share) | $ 121 | ||
Exercise Prices of $61-$75 | |||
Summary of activity of stock option awards [Roll Forward] | |||
Number Outstanding at end of period (in shares) | 1,037,200 | ||
Weighted-Average Remaining Contractual Life (in years) | 5 years 2 months 12 days | ||
Share-based Payment Arrangement, Option, Exercise Price Range, Outstanding, Weighted Average Exercise Price | $ 65 | ||
Number Exercisable at end of period (in shares) | 831,800 | ||
Weighted-Average Exercise Price (in dollars per share) | $ 66 | ||
Exercise price of options lower range (in dollars per share) | 61 | ||
Exercise prices of options upper range (in dollars per share) | $ 75 | ||
Exercise Prices of $76-$90 | |||
Summary of activity of stock option awards [Roll Forward] | |||
Number Outstanding at end of period (in shares) | 1,099,700 | ||
Weighted-Average Remaining Contractual Life (in years) | 5 years 3 months 18 days | ||
Share-based Payment Arrangement, Option, Exercise Price Range, Outstanding, Weighted Average Exercise Price | $ 82 | ||
Number Exercisable at end of period (in shares) | 1,018,600 | ||
Weighted-Average Exercise Price (in dollars per share) | $ 82 | ||
Exercise price of options lower range (in dollars per share) | 76 | ||
Exercise prices of options upper range (in dollars per share) | $ 90 | ||
Exercise Prices of $91-$105 | |||
Summary of activity of stock option awards [Roll Forward] | |||
Number Outstanding at end of period (in shares) | 535,800 | ||
Weighted-Average Remaining Contractual Life (in years) | 5 years 2 months 12 days | ||
Share-based Payment Arrangement, Option, Exercise Price Range, Outstanding, Weighted Average Exercise Price | $ 104 | ||
Number Exercisable at end of period (in shares) | 535,800 | ||
Weighted-Average Exercise Price (in dollars per share) | $ 104 | ||
Exercise price of options lower range (in dollars per share) | 91 | ||
Exercise prices of options upper range (in dollars per share) | $ 105 | ||
Exercise Prices of $106-121 | |||
Summary of activity of stock option awards [Roll Forward] | |||
Number Outstanding at end of period (in shares) | 806,500 | ||
Weighted-Average Remaining Contractual Life (in years) | 8 years 7 months 6 days | ||
Share-based Payment Arrangement, Option, Exercise Price Range, Outstanding, Weighted Average Exercise Price | $ 114 | ||
Number Exercisable at end of period (in shares) | 148,200 | ||
Weighted-Average Exercise Price (in dollars per share) | $ 109 | ||
Exercise price of options lower range (in dollars per share) | 106 | ||
Exercise prices of options upper range (in dollars per share) | $ 121 | ||
Omnibus Long-Term Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Plan, term description | Eastman's 2021 Omnibus Stock Compensation Plan ("2021 Omnibus Plan") was approved by stockholders at the May 6, 2021 Annual Meeting of Stockholders and shall remain in effect until its fifth anniversary. | ||
Shares reserved and available for issuance (in shares) | 10,000,000 | ||
Shares covered by full award value per share available for issuance | $ 2.5 | ||
Grant date exercise price, minimum | exercise price not less than 100 percent of the per share fair market value on the date of the grant | ||
Director Compensation Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares reserved and available for issuance (in shares) | 10,000,000 | ||
Term of service for shares of restricted stock to be granted to a non-employee director | Shares of restricted stock are granted on the first day of a non-employee director's initial term of service and shares of restricted stock are granted each year to each non-employee director on the date of the annual meeting of stockholders. | ||
Stock Option [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense recognized in selling, general and administrative expense | $ 11 | $ 9 | $ 7 |
Weighted average assumptions used to determine fair value of stock options awarded [Abstract] | |||
Expected volatility rate (in hundredths) | 28.98% | 28.99% | 21.56% |
Expected dividend yield (in hundredths) | 2.57% | 3.58% | 3.30% |
Average risk-free interest rate (in hundredths) | 2.35% | 0.95% | 0.94% |
Expected term years (in years) | 6 years 4 months 24 days | 6 years | 5 years 10 months 24 days |
Expected dividend yield calculation basis | Company's average of the last four quarterly dividend yields | ||
Summary of activity of stock option awards [Roll Forward] | |||
Outstanding at beginning of period (in shares) | 3,168,500 | 3,526,600 | 3,479,300 |
Granted (in shares) | 443,100 | 449,700 | 622,000 |
Exercised (in shares) | (122,700) | (807,200) | (568,800) |
Cancelled forfeited or expired (in shares) | (9,700) | (600) | (5,900) |
Outstanding at end of period (in shares) | 3,479,200 | 3,168,500 | 3,526,600 |
Options exercisable at period-end (in shares) | 2,534,400 | 2,047,500 | 2,192,300 |
Available for grant at end of period (in shares) | 8,355,640 | 9,866,480 | 4,046,748 |
Outstanding at beginning of period (in dollars per share) | $ 84 | $ 79 | $ 80 |
Granted (in dollars per share) | 113 | 109 | 62 |
Exercised (in dollars per share) | 74 | 77 | 64 |
Cancelled, forfeited, or expired (in dollars per share) | 87 | 74 | 82 |
Outstanding at end of year (in dollars per share) | 88 | 84 | 79 |
Weighted average fair value of options granted (in dollars per share) | $ 26.80 | $ 19.81 | $ 7.92 |
Intrinsic value of options exercised | $ 6 | $ 31 | $ 14 |
Cash proceeds received from option exercises | 10 | 62 | 36 |
Tax benefit of options exercised | 1 | 5 | 2 |
Fair value of shares vested | $ 8 | $ 8 | 9 |
Stock Option [Member] | Director Compensation Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Term life of options (in years) | 10 years | ||
Vesting periods, maximum (in years) | 3 years | ||
Nonvested Options [Member] | |||
Summary of activity of stock option awards [Roll Forward] | |||
Outstanding at beginning of period (in shares) | 1,121,000 | ||
Granted (in shares) | 443,100 | ||
Vested (in shares) | (611,900) | ||
Cancelled forfeited or expired (in shares) | (7,400) | ||
Outstanding at end of period (in shares) | 944,800 | 1,121,000 | |
Outstanding at beginning of period (in dollars per share) | $ 13.88 | ||
Granted (in dollars per share) | 26.80 | ||
Vested (in dollars per share) | 12.99 | ||
Cancelled, forfeited, or expired (in dollars per share) | 14.90 | ||
Outstanding at end of year (in dollars per share) | $ 20.50 | $ 13.88 | |
Unrecognized compensation expense before tax for these same type awards | $ 3 | ||
Amortization life of unrecognized compensation expense before tax for these same type awards (in years) | 2 years | ||
Other Share-Based Compensation Awards [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense recognized in selling, general and administrative expense | $ 58 | $ 60 | $ 37 |
Summary of activity of stock option awards [Roll Forward] | |||
Unrecognized compensation expense before tax for these same type awards | $ 73 | ||
Amortization life of unrecognized compensation expense before tax for these same type awards (in years) | 2 years |
SHARE-BASED COMPENSATION PLAN_4
SHARE-BASED COMPENSATION PLANS AND AWARDS Part 2 (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Remaining contractual term and weighted average exercise prices of stock options [Abstract] | |||
Number Outstanding at end of period (in shares) | 3,479,200 | ||
Weighted-Average Remaining Contractual Life (in years) | 6 years | ||
Weighted-Average Exercise Price (in dollars per share) | $ 88 | ||
Number Exercisable at end of period (in shares) | 2,534,400 | ||
Weighted-Average Exercise Price (in dollars per share) | $ 83 | ||
Exercise price of options lower range (in dollars per share) | 61 | ||
Exercise prices of options upper range (in dollars per share) | $ 121 | ||
Stock Option [Member] | |||
Remaining contractual term and weighted average exercise prices of stock options [Abstract] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Aggregate Intrinsic Value | $ 17 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value | $ 13 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term | 5 years 1 month 6 days | ||
Tax benefit of options exercised | $ 1 | $ 5 | $ 2 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 26.80 | $ 19.81 | $ 7.92 |
Intrinsic value of options exercised | $ 6 | $ 31 | $ 14 |
Cash proceeds received from option exercises | 10 | 62 | 36 |
Fair value of shares vested | $ 8 | $ 8 | $ 9 |
Performance Shares [Member] | Long Term Performance Share Award | |||
Remaining contractual term and weighted average exercise prices of stock options [Abstract] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 288,000 | 311,000 | 423,000 |
Restricted Stock Units (RSUs) [Member] | |||
Remaining contractual term and weighted average exercise prices of stock options [Abstract] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 160,000 | 166,000 | 227,000 |
Nonvested Options [Member] | |||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount | $ 3 | ||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition | 2 years |
SUPPLEMENTAL CASH FLOW INFORM_3
SUPPLEMENTAL CASH FLOW INFORMATION (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Supplemental Cash Flow Information [Abstract] | |||
Current assets | $ 22 | $ (57) | $ (1) |
Other assets | 12 | (32) | (14) |
Current liabilities | 180 | 109 | 5 |
Long-term liabilities and equity | 76 | 69 | 15 |
Other items, net | 290 | 89 | 5 |
Interest Paid, Including Capitalized Interest, Operating and Investing Activities [Abstract] | |||
Interest, net of amounts capitalized | 179 | 170 | 191 |
Income Taxes Paid, Net [Abstract] | |||
Income taxes, net of refunds | 78 | 122 | 179 |
Cash Flow, Noncash Investing and Financing Activities Disclosure [Abstract] | |||
Outstanding trade payables related to capital expenditures | $ 64 | $ 22 | $ 20 |
SEGMENT INFORMATION (Details) P
SEGMENT INFORMATION (Details) Part 1 - Segment | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Segment Reporting [Abstract] | |||
Number of Reportable Segments | 4 | ||
Revenue, Segment Benchmark | Geographic Concentration Risk [Member] | Advanced Materials [Member] | North America [Member] | |||
Revenue from External Customer [Line Items] | |||
Concentration Risk, Percentage | 33% | 30% | 34% |
Revenue, Segment Benchmark | Geographic Concentration Risk [Member] | Advanced Materials [Member] | Asia Pacific [Member] | |||
Revenue from External Customer [Line Items] | |||
Concentration Risk, Percentage | 35% | 38% | 33% |
Revenue, Segment Benchmark | Geographic Concentration Risk [Member] | Advanced Materials [Member] | EMEA [Member] | |||
Revenue from External Customer [Line Items] | |||
Concentration Risk, Percentage | 26% | 27% | 27% |
Revenue, Segment Benchmark | Geographic Concentration Risk [Member] | Advanced Materials [Member] | Latin America [Member] | |||
Revenue from External Customer [Line Items] | |||
Concentration Risk, Percentage | 6% | 5% | 6% |
Revenue, Segment Benchmark | Geographic Concentration Risk [Member] | Additives And Functional Products [Member] | North America [Member] | |||
Revenue from External Customer [Line Items] | |||
Concentration Risk, Percentage | 39% | 38% | 38% |
Revenue, Segment Benchmark | Geographic Concentration Risk [Member] | Additives And Functional Products [Member] | Asia Pacific [Member] | |||
Revenue from External Customer [Line Items] | |||
Concentration Risk, Percentage | 24% | 27% | 26% |
Revenue, Segment Benchmark | Geographic Concentration Risk [Member] | Additives And Functional Products [Member] | EMEA [Member] | |||
Revenue from External Customer [Line Items] | |||
Concentration Risk, Percentage | 31% | 29% | 30% |
Revenue, Segment Benchmark | Geographic Concentration Risk [Member] | Additives And Functional Products [Member] | Latin America [Member] | |||
Revenue from External Customer [Line Items] | |||
Concentration Risk, Percentage | 6% | 6% | 6% |
Revenue, Segment Benchmark | Geographic Concentration Risk [Member] | Chemical Intermediates [Member] | North America [Member] | |||
Revenue from External Customer [Line Items] | |||
Concentration Risk, Percentage | 70% | 70% | 65% |
Revenue, Segment Benchmark | Geographic Concentration Risk [Member] | Chemical Intermediates [Member] | Asia Pacific [Member] | |||
Revenue from External Customer [Line Items] | |||
Concentration Risk, Percentage | 7% | 8% | 13% |
Revenue, Segment Benchmark | Geographic Concentration Risk [Member] | Chemical Intermediates [Member] | EMEA [Member] | |||
Revenue from External Customer [Line Items] | |||
Concentration Risk, Percentage | 17% | 16% | 16% |
Revenue, Segment Benchmark | Geographic Concentration Risk [Member] | Chemical Intermediates [Member] | Latin America [Member] | |||
Revenue from External Customer [Line Items] | |||
Concentration Risk, Percentage | 6% | 6% | 6% |
Revenue, Segment Benchmark | Geographic Concentration Risk [Member] | Fibers [Member] | North America [Member] | |||
Revenue from External Customer [Line Items] | |||
Concentration Risk, Percentage | 25% | 25% | 26% |
Revenue, Segment Benchmark | Geographic Concentration Risk [Member] | Fibers [Member] | Asia Pacific [Member] | |||
Revenue from External Customer [Line Items] | |||
Concentration Risk, Percentage | 35% | 35% | 32% |
Revenue, Segment Benchmark | Geographic Concentration Risk [Member] | Fibers [Member] | EMEA [Member] | |||
Revenue from External Customer [Line Items] | |||
Concentration Risk, Percentage | 37% | 37% | 39% |
Revenue, Segment Benchmark | Geographic Concentration Risk [Member] | Fibers [Member] | Latin America [Member] | |||
Revenue from External Customer [Line Items] | |||
Concentration Risk, Percentage | 3% | 3% | 3% |
Advanced Interlayers Product Line [Member] | Revenue, Segment Benchmark | Product Concentration Risk [Member] | Advanced Materials [Member] | |||
Revenue from External Customer [Line Items] | |||
Concentration Risk, Percentage | 29% | 29% | 29% |
Performance Films Product Line [Member] | Revenue, Segment Benchmark | Product Concentration Risk [Member] | Advanced Materials [Member] | |||
Revenue from External Customer [Line Items] | |||
Concentration Risk, Percentage | 20% | 20% | 20% |
Specialty Plastics Product Line [Member] | Revenue, Segment Benchmark | Product Concentration Risk [Member] | Advanced Materials [Member] | |||
Revenue from External Customer [Line Items] | |||
Concentration Risk, Percentage | 51% | 51% | 51% |
Animal Nutrition [Member] | Revenue, Segment Benchmark | Product Concentration Risk [Member] | Additives And Functional Products [Member] | |||
Revenue from External Customer [Line Items] | |||
Concentration Risk, Percentage | 14% | 12% | 12% |
Care Chemicals Product LIne [Member] | Revenue, Segment Benchmark | Product Concentration Risk [Member] | Additives And Functional Products [Member] | |||
Revenue from External Customer [Line Items] | |||
Concentration Risk, Percentage | 34% | 32% | 34% |
Coatings and Inks Additives Product Line [Member] | Revenue, Segment Benchmark | Product Concentration Risk [Member] | Additives And Functional Products [Member] | |||
Revenue from External Customer [Line Items] | |||
Concentration Risk, Percentage | 34% | 38% | 36% |
Specialty Fluids Product Line [Member] | Revenue, Segment Benchmark | Product Concentration Risk [Member] | Additives And Functional Products [Member] | |||
Revenue from External Customer [Line Items] | |||
Concentration Risk, Percentage | 18% | 18% | 18% |
Functional Amines Product Line [Member] | Revenue, Segment Benchmark | Product Concentration Risk [Member] | Chemical Intermediates [Member] | |||
Revenue from External Customer [Line Items] | |||
Concentration Risk, Percentage | 24% | 21% | 23% |
Intermediates product line [Member] | Revenue, Segment Benchmark | Product Concentration Risk [Member] | Chemical Intermediates [Member] | |||
Revenue from External Customer [Line Items] | |||
Concentration Risk, Percentage | 56% | 57% | 57% |
Plasticizers Product Line [Member] | Revenue, Segment Benchmark | Product Concentration Risk [Member] | Chemical Intermediates [Member] | |||
Revenue from External Customer [Line Items] | |||
Concentration Risk, Percentage | 20% | 22% | 20% |
Acetate Tow Product Line Member | Revenue, Segment Benchmark | Product Concentration Risk [Member] | Fibers [Member] | |||
Revenue from External Customer [Line Items] | |||
Concentration Risk, Percentage | 64% | 64% | 70% |
Acetate Yarn [Member] | Revenue, Segment Benchmark | Product Concentration Risk [Member] | Fibers [Member] | |||
Revenue from External Customer [Line Items] | |||
Concentration Risk, Percentage | 14% | 14% | 9% |
Acetyl Chemical Products [Member] | Revenue, Segment Benchmark | Product Concentration Risk [Member] | Fibers [Member] | |||
Revenue from External Customer [Line Items] | |||
Concentration Risk, Percentage | 16% | 16% | 16% |
Nonwovens [Member] | Revenue, Segment Benchmark | Product Concentration Risk [Member] | Fibers [Member] | |||
Revenue from External Customer [Line Items] | |||
Concentration Risk, Percentage | 6% | 6% | 5% |
SEGMENT INFORMATION (Details)_2
SEGMENT INFORMATION (Details) Part 2 - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Segment Reporting Information [Line Items] | |||
Sales | $ 10,580 | $ 10,476 | $ 8,473 |
Net properties | 5,160 | 4,996 | 5,549 |
Capital Expenditures by Segment | 611 | 555 | 383 |
Depreciation and Amortization Expense by Segment | 477 | 538 | 574 |
Assets by Segment | 14,667 | 15,519 | |
Earnings (Loss) Before Interest and Taxes by Segment | 1,159 | 1,281 | 741 |
Corporate, Non-Segment [Member] | Growth Initiatives [Member] | |||
Segment Reporting Information [Line Items] | |||
Earnings (Loss) Before Interest and Taxes by Segment | (196) | (49) | (32) |
Corporate, Non-Segment [Member] | Pension and other postretirement benefit plans income (expense), net not allocated to operating segments | |||
Segment Reporting Information [Line Items] | |||
Earnings (Loss) Before Interest and Taxes by Segment | 70 | 375 | (156) |
Corporate, Non-Segment [Member] | Asset impairments and restructuring charges, net | |||
Segment Reporting Information [Line Items] | |||
Earnings (Loss) Before Interest and Taxes by Segment | (21) | (18) | (206) |
Corporate, Non-Segment [Member] | Other Nonoperating Income (Expense) [Member] | |||
Segment Reporting Information [Line Items] | |||
Earnings (Loss) Before Interest and Taxes by Segment | 7 | (11) | (20) |
Corporate, Non-Segment [Member] | Divested businesses | |||
Segment Reporting Information [Line Items] | |||
Earnings (Loss) Before Interest and Taxes by Segment | 6 | (502) | (70) |
Corporate, Non-Segment [Member] | Transaction costs and Gain/Loss on Business | |||
Segment Reporting Information [Line Items] | |||
Earnings (Loss) Before Interest and Taxes by Segment | (61) | (570) | 0 |
Corporate, Non-Segment [Member] | Steam Line Incident | |||
Segment Reporting Information [Line Items] | |||
Earnings (Loss) Before Interest and Taxes by Segment | (39) | 0 | 0 |
Advanced Materials [Member] | |||
Segment Reporting Information [Line Items] | |||
Sales | 3,207 | 3,027 | 2,524 |
Capital Expenditures by Segment | 341 | 280 | 140 |
Depreciation and Amortization Expense by Segment | 163 | 177 | 187 |
Assets by Segment | 4,967 | 4,661 | |
Earnings (Loss) Before Interest and Taxes by Segment | 376 | 519 | 427 |
Additives And Functional Products [Member] | |||
Segment Reporting Information [Line Items] | |||
Sales | 3,165 | 2,708 | 2,095 |
Capital Expenditures by Segment | 98 | 97 | 79 |
Depreciation and Amortization Expense by Segment | 134 | 132 | 125 |
Assets by Segment | 4,127 | 4,188 | |
Earnings (Loss) Before Interest and Taxes by Segment | 483 | 448 | 382 |
Additives And Functional Products [Member] | Previously Reported [Member] | |||
Segment Reporting Information [Line Items] | |||
Assets by Segment | 4,643 | ||
Additives And Functional Products [Member] | Prior Period Revised | |||
Segment Reporting Information [Line Items] | |||
Assets by Segment | 5,195 | ||
Chemical Intermediates [Member] | |||
Segment Reporting Information [Line Items] | |||
Sales | 3,026 | 2,849 | 2,090 |
Capital Expenditures by Segment | 98 | 124 | 84 |
Depreciation and Amortization Expense by Segment | 112 | 111 | 108 |
Assets by Segment | 2,695 | 2,703 | |
Earnings (Loss) Before Interest and Taxes by Segment | 409 | 445 | 166 |
Fibers [Member] | |||
Segment Reporting Information [Line Items] | |||
Sales | 1,022 | 900 | 837 |
Capital Expenditures by Segment | 43 | 33 | 31 |
Depreciation and Amortization Expense by Segment | 61 | 60 | 56 |
Assets by Segment | 1,046 | 972 | |
Earnings (Loss) Before Interest and Taxes by Segment | 131 | 142 | 180 |
All Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Sales | 10,420 | 9,484 | 7,546 |
Capital Expenditures by Segment | 580 | 534 | 334 |
Depreciation and Amortization Expense by Segment | 470 | 480 | 476 |
Assets by Segment | 12,835 | 12,524 | |
Earnings (Loss) Before Interest and Taxes by Segment | 1,399 | 1,554 | 1,155 |
Other Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Sales | 160 | 992 | 927 |
Capital Expenditures by Segment | 31 | 21 | 49 |
Depreciation and Amortization Expense by Segment | 7 | 58 | 98 |
Corporate and Other | Previously Reported [Member] | |||
Segment Reporting Information [Line Items] | |||
Assets by Segment | 2,540 | ||
Corporate and Other | Prior Period Revised | |||
Segment Reporting Information [Line Items] | |||
Assets by Segment | 1,988 | ||
Corporate Assets [Member] | |||
Segment Reporting Information [Line Items] | |||
Assets by Segment | 1,832 | 2,995 | |
UNITED STATES | |||
Segment Reporting Information [Line Items] | |||
Sales | 4,738 | 4,397 | 3,437 |
Net properties | 4,180 | 3,847 | 4,106 |
All Foreign Countries [Member] | |||
Segment Reporting Information [Line Items] | |||
Sales | 5,842 | 6,079 | 5,036 |
Net properties | $ 980 | $ 1,149 | $ 1,443 |
RESERVE ROLLFORWARDS (Details)
RESERVE ROLLFORWARDS (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Movement In Valuation Allowances And Reserves Roll Forward | |||
Beginning Balance | $ 1,053 | $ 969 | $ 1,047 |
Charges (Credits) to Cost and Expense | 56 | 121 | (69) |
Charged to Other Accounts | (3) | (31) | 2 |
Deductions | 15 | 6 | 11 |
Ending Balance | 1,091 | 1,053 | 969 |
SEC Schedule, 12-09, Allowance, Credit Loss [Member] | |||
Movement In Valuation Allowances And Reserves Roll Forward | |||
Beginning Balance | 17 | 14 | 11 |
Charges (Credits) to Cost and Expense | (2) | 4 | 4 |
Charged to Other Accounts | 0 | (1) | 0 |
Deductions | 0 | 0 | 1 |
Ending Balance | 15 | 17 | 14 |
LIFO Inventory [Member] | |||
Movement In Valuation Allowances And Reserves Roll Forward | |||
Beginning Balance | 365 | 226 | 248 |
Charges (Credits) to Cost and Expense | 128 | 159 | (22) |
Charged to Other Accounts | 0 | (30) | 0 |
Deductions | 0 | (10) | 0 |
Ending Balance | 493 | 365 | 226 |
Non-environmental asset retirement obligation Costs [Member] | |||
Movement In Valuation Allowances And Reserves Roll Forward | |||
Beginning Balance | 51 | 51 | 48 |
Charges (Credits) to Cost and Expense | 2 | 2 | 2 |
Charged to Other Accounts | (1) | (1) | 1 |
Deductions | 1 | 1 | 0 |
Ending Balance | 51 | 51 | 51 |
Environmental Contingencies [Member] | |||
Movement In Valuation Allowances And Reserves Roll Forward | |||
Beginning Balance | 281 | 285 | 287 |
Charges (Credits) to Cost and Expense | 7 | 11 | 8 |
Charged to Other Accounts | 0 | 0 | 0 |
Deductions | 14 | 15 | 10 |
Ending Balance | 274 | 281 | 285 |
SEC Schedule, 12-09, Valuation Allowance, Deferred Tax Asset [Member] | |||
Movement In Valuation Allowances And Reserves Roll Forward | |||
Beginning Balance | 339 | 393 | 453 |
Charges (Credits) to Cost and Expense | (79) | (55) | (61) |
Charged to Other Accounts | (2) | 1 | 1 |
Deductions | 0 | 0 | 0 |
Ending Balance | $ 258 | $ 339 | $ 393 |