Cover Page
Cover Page | 3 Months Ended |
Mar. 31, 2023 shares | |
Entity Information [Line Items] | |
Document Type | 10-Q |
Document Quarterly Report | true |
Document Period End Date | Mar. 31, 2023 |
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 Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Small Business | false |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Entity Common Stock, Shares Outstanding | 119,151,802 |
Entity Central Index Key | 0000915389 |
Amendment Flag | false |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Year Focus | 2023 |
Document Fiscal Period Focus | Q1 |
Common Stock [Member] | |
Entity Information [Line Items] | |
Title of 12(b) Security | Common Stock, par value $0.01 per share |
Trading Symbol | EMN |
Security Exchange Name | NYSE |
1.5% notes due May 2023 [Member] | |
Entity Information [Line Items] | |
Title of 12(b) Security | 1.50% Notes Due 2023 |
Trading Symbol | EMN23 |
Security Exchange Name | NYSE |
1.875% notes due November 2026 [Member] | |
Entity Information [Line Items] | |
Title of 12(b) Security | 1.875% Notes Due 2026 |
Trading Symbol | EMN26 |
Security Exchange Name | NYSE |
UNAUDITED CONSOLIDATED STATEMEN
UNAUDITED CONSOLIDATED STATEMENTS OF EARNINGS, COMPREHENSIVE INCOME AND RETAINED EARNINGS - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Income Statement [Abstract] | ||
Sales | $ 2,412 | $ 2,714 |
Cost of sales | 1,883 | 2,164 |
Gross profit | 529 | 550 |
Selling, general and administrative expenses | 191 | 196 |
Research and development expenses | 62 | 65 |
Asset impairments and restructuring charges, net | 22 | 2 |
Other components of post-employment (benefit) cost, net | (3) | (31) |
Other (income) charges, net | 11 | (12) |
Gain on divested business | 0 | (3) |
Earnings before interest and taxes | 246 | 333 |
Net interest expense | 52 | 46 |
Earnings before income taxes | 194 | 287 |
Provision for income taxes | 60 | 51 |
Net earnings | 134 | 236 |
Less: Net earnings attributable to noncontrolling interest | 0 | 1 |
Net earnings attributable to Eastman | $ 134 | $ 235 |
Earnings Per Share, Basic [Abstract] | ||
Basic earnings per share attributable to Eastman | $ 1.13 | $ 1.82 |
Diluted earnings per share attributable to Eastman | ||
Diluted earnings per share attributable to Eastman | $ 1.12 | $ 1.80 |
Comprehensive Income | ||
Net earnings including noncontrolling interest | $ 134 | $ 236 |
Other comprehensive income (loss), net of tax: | ||
Change in cumulative translation adjustment | (1) | 7 |
Defined benefit pension and other postretirement benefit plans: | ||
Amortization of unrecognized prior service credits | (5) | (6) |
Derivatives and hedging: | ||
Unrealized gain (loss) during period | (7) | 40 |
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification, after Tax | (2) | (4) |
Other Comprehensive Income (Loss) | (15) | 37 |
Comprehensive income including noncontrolling interest | 119 | 273 |
Less: Net earnings attributable to noncontrolling interest | 0 | 1 |
Comprehensive income attributable to Eastman | 119 | 272 |
Retained Earnings | ||
Retained earnings at beginning of period | 8,973 | 8,557 |
Net earnings attributable to Eastman | 134 | 235 |
Cash dividends declared | (94) | (98) |
Retained earnings at end of period | $ 9,013 | $ 8,694 |
UNAUDITED CONSOLIDATED STATEM_2
UNAUDITED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Current assets | ||
Cash and cash equivalents | $ 599 | $ 493 |
Trade receivables, net of allowance for credit losses | 1,051 | 957 |
Miscellaneous receivables | 286 | 320 |
Inventories | 1,944 | 1,894 |
Other current assets | 93 | 114 |
Total current assets | 3,973 | 3,778 |
Properties | ||
Properties and equipment at cost | 13,153 | 12,942 |
Less: Accumulated depreciation | 7,895 | 7,782 |
Net properties | 5,258 | 5,160 |
Goodwill | 3,703 | 3,664 |
Intangible assets, net of accumulated amortization | 1,203 | 1,210 |
Other noncurrent assets | 846 | 855 |
Total assets | 14,983 | 14,667 |
Current liabilities | ||
Payables and other current liabilities | 1,957 | 2,125 |
Borrowings due within one year | 1,014 | 1,126 |
Total current liabilities | 2,971 | 3,251 |
Long-term borrowings | 4,636 | 4,025 |
Deferred income tax liabilities | 662 | 671 |
Post-employment obligations | 629 | 628 |
Other long-term liabilities | 823 | 856 |
Total liabilities | $ 9,721 | $ 9,431 |
Common stock, shares issued (in shares) | 222,703,492 | 222,348,557 |
Common stock, par value (in dollars per share) | $ 0.01 | |
Stockholders' equity | ||
Common stock ($0.01 par value – 350,000,000 shares authorized; shares issued – 222,703,492 and 222,348,557 for 2023 and 2022, respectively) | $ 2 | $ 2 |
Additional paid-in capital | 2,325 | 2,315 |
Retained earnings | 9,013 | 8,973 |
Accumulated other comprehensive income (loss) | (220) | (205) |
Stockholder's Equity before Treasury Stock | 11,120 | 11,085 |
Less: Treasury stock at cost (103,602,488 and 103,602,488 shares for 2023 and 2022, respectively) | 5,932 | 5,932 |
Total Eastman stockholders' equity | 5,188 | 5,153 |
Noncontrolling interest | 74 | 83 |
Total equity | 5,262 | 5,236 |
Total liabilities and stockholders' equity | $ 14,983 | $ 14,667 |
Treasury stock at cost (in shares) | 103,602,488 | 103,602,488 |
Common stock, shares authorized (in shares) | 350,000,000 |
UNAUDITED CONSOLIDATED STATEM_3
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Operating activities | ||
Net earnings | $ 134 | $ 236 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | ||
Depreciation and amortization | 141 | 121 |
Gain on divested business | 0 | (3) |
Benefit from deferred income taxes | (7) | (24) |
Changes in operating assets and liabilities, net of effect of acquisitions and divestitures: | ||
(Increase) decrease in trade receivables | (91) | (127) |
(Increase) decrease in inventories | (44) | (184) |
Increase (decrease) in trade payables | (132) | 152 |
Pension and other postretirement contributions (in excess of) less than expenses | (19) | (43) |
Variable compensation payments (in excess of) less than expenses | (16) | (168) |
Other items, net | 32 | 57 |
Net cash (used in) provided by operating activities | (2) | 17 |
Investing activities | ||
Additions to properties and equipment | (174) | (112) |
Proceeds from sale of businesses | 16 | 0 |
Acquisition, net of cash acquired | (73) | 0 |
Additions to capitalized software | (2) | (3) |
Other items, net | (19) | (2) |
Net cash used in investing activities | (252) | (117) |
Financing activities | ||
Net increase (decrease) in commercial paper and other borrowings | (326) | 236 |
Proceeds from borrowings | 796 | 0 |
Dividends paid to stockholders | (94) | (98) |
Proceeds from stock option exercises and other items, net | (19) | (9) |
Net cash provided by financing activities | 357 | 129 |
Effect of exchange rate changes on cash and cash equivalents | 3 | (1) |
Net change in cash and cash equivalents | 106 | 28 |
Cash and cash equivalents at beginning of period | 493 | 459 |
Cash and cash equivalents at end of period | $ 599 | $ 487 |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES (Notes) | 3 Months Ended |
Mar. 31, 2023 | |
Significant Accounting Policies [Abstract] | |
Organization, Consolidation, Basis of Presentation, Business Description and Accounting Policies [Text Block] | SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared by Eastman Chemical Company ("Eastman" or the "Company") in accordance and consistent with the accounting policies stated in the Company's 2022 Annual Report on Form 10-K , and should be read in conjunction with the consolidated financial statements in Part II, Item 8 of that report, with the exception of recently adopted accounting standards noted below. The December 31, 2022 financial position data included herein was derived from the consolidated financial statements included in the 2022 Annual Report on Form 10-K but does not include all disclosures required by accounting principles generally accepted in the United States ("GAAP"). In the opinion of management, the unaudited consolidated financial statements include all normal recurring adjustments necessary for the fair statement of the interim financial information in conformity with GAAP. These statements contain some amounts that are based upon management estimates and judgments. Future actual results could differ from such current estimates. The unaudited consolidated financial statements include assets, liabilities, revenues, and expenses of business ventures in which Eastman has a controlling interest. Eastman accounts for other joint ventures and investments where it exercises significant influence on the equity basis. Intercompany transactions and balances are eliminated in consolidation. Certain prior period data has been reclassified in the unaudited consolidated financial statements and accompanying footnotes to conform to current period presentation, including sales revenue, earnings before interest and taxes ("EBIT"), and goodwill related to the product moves announced in first quarter 2023. See Note 3, "Goodwill", and Note 14, "Segment Information", for more information. Recently Adopted Accounting Standards Accounting Standards Update ("ASU") 2021-08 Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers : On January 1, 2023, Eastman adopted prospectively this update, 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 adoption did not 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 : On January 1, 2023, Eastman adopted this update which 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. The adoption did not 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 : On January 1, 2023, Eastman adopted this update which amends 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. The adoption did not 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 : On January 1, 2023, Eastman adopted this update 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. The adoption did not have a significant impact on the Company's financial position, results of operations, or cash flows. The required disclosures are included as part of "Working Capital Management and Off Balance Sheet Arrangements" disclosure below. Accounting Standards Issued But Not Adopted as of March 31, 2023 ASU 2022-03 Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions : The Financial Accounting Standards Board ("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. 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 the carrying value and 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 amounts sold under the program in first quarter 2023 and 2022 were $677 million and $502 million, respectively. The Company works with suppliers to optimize payment terms and conditions on accounts payable to enhance timing of working capital and cash flows. Under a supplier finance program, the Company's suppliers may voluntarily 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. No fees are paid by Eastman for the supplier finance platform or services fees. Eastman or the financial institution may terminate the program at any time with immediate effect upon 90 days' notice. Confirmed obligations in the supplier finance program of $87 million and $100 million at March 31, 2023 and December 31, 2022, respectively, are included in "Payables and other current liabilities" on the Unaudited Consolidated Statements of Financial Position. |
INVENTORIES
INVENTORIES | 3 Months Ended |
Mar. 31, 2023 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | INVENTORIES March 31, December 31, (Dollars in millions) 2023 2022 Finished goods $ 1,437 $ 1,347 Work in process 291 297 Raw materials and supplies 709 743 Total inventories at FIFO or average cost 2,437 2,387 Less: LIFO reserve 493 493 Total inventories $ 1,944 $ 1,894 |
GOODWILL
GOODWILL | 3 Months Ended |
Mar. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill Disclosure | GOODWILLAs a result of product moves between the Additives & Functional Products ("AFP") segment and the Chemical Intermediates ("CI") segment that occurred in first quarter 2023, goodwill was reassigned to segments using a relative fair value allocation. In conjunction with the product moves and as required by GAAP, during first quarter 2023 Eastman performed an impairment assessment and concluded that no indication of an impairment existed. For further information on the product moves, see Note 1, "Significant Accounting Policies", and Note 14, "Segment Information". Changes to the carrying value of goodwill follow: (Dollars in millions) Advanced Materials Additives & Functional Products Chemical Intermediates Other Total Balance at December 31, 2022 $ 1,296 $ 1,601 $ 757 $ 10 $ 3,664 Adjustments to net goodwill resulting from reorganization — 569 (569) — — Acquisition 37 — — — 37 Currency translation adjustments (3) 3 2 — 2 Balance at March 31, 2023 $ 1,330 $ 2,173 $ 190 $ 10 $ 3,703 The reported balance of goodwill included accumulated impairment losses of $106 million, $12 million, and $14 million in the AFP segment, the CI segment, and other segment, respectively, at both March 31, 2023 and December 31, 2022. |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Mar. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
PROVISION FOR INCOME TAXES | INCOME TAXES First Quarter (Dollars in millions) 2023 2022 $ % $ % Provision for income taxes and tax rate $ 60 31 % $ 51 18 % First quarter 2023 provision for income taxes includes a $23 million increase from adjustments to state valuation allowance recognized as a result of recently issued state guidance related to 2017 Tax Cuts and Jobs Act (the "Tax Reform Act"). First quarter 2022 provision for income taxes included adjustments from finalization of prior years' income tax returns. At March 31, 2023 and December 31, 2022, Eastman had $237 million and $235 million, respectively, in unrecognized tax benefits. At March 31, 2023, it is expected that, as a result of the resolution of federal, state, and foreign examinations and appeals, and the expiration of various statutes of limitation, the total amounts of unrecognized tax benefits could decrease by up to $55 million within the next 12 months. |
BORROWINGS
BORROWINGS | 3 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
BORROWINGS | BORROWINGS March 31, December 31, (Dollars in millions) 2023 2022 Borrowings consisted of: 1.50% notes due May 2023 (1) $ 816 $ 800 7.25% debentures due January 2024 198 198 7.625% debentures due June 2024 43 43 3.80% notes due March 2025 694 693 1.875% notes due November 2026 (1) 542 530 7.60% debentures due February 2027 196 196 4.5% notes due December 2028 495 495 5.75% notes due March 2033 (2) 496 — 4.8% notes due September 2042 494 494 4.65% notes due October 2044 877 877 2024 Term Loan 300 — 2027 Term Loan 499 499 Commercial paper and short-term borrowings — 326 Total borrowings 5,650 5,151 Less: Borrowings due within one year 1,014 1,126 Long-term borrowings $ 4,636 $ 4,025 (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 to U.S. dollar 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. (2) Net proceeds from the bond issuance will be used to finance or refinance existing and future eligible green investment initiatives which contribute to Eastman's environmental sustainability strategy (a green bond). In March 2023, the Company issued $500 million aggregate principal amount of 5.75% notes due March 2033 in a registered public offering (the "2023 Notes"). Net proceeds from the 2023 Notes will be allocated to eligible projects to advance Eastman's sustainability goals of mitigating climate change, mainstreaming circular economy, and caring for society. Proceeds from the sale of the notes, net of original issue discounts, and issuance costs were $496 million. Credit Facility, Term Loans, and Commercial Paper Borrowings In first quarter 2023, the Company borrowed $300 million under a delayed draw two-year term loan (the "2024 Term Loan"), which was executed in fourth quarter 2022 . As of March 31, 2023, the 2024 Term Loan balance outstanding was $300 million with a variable interest rate of 6.07%. In 2022, the Company borrowed $500 million under a five-year term loan agreement (the "2027 Term Loan"). The 2027 Term Loan balance outstanding was $499 million at both March 31, 2023 and December 31, 2022, with variable interest rates of 5.92% and 5.55%, respectively. Borrowings under the 2024 Term Loan and 2027 Term Loan are subject to interest at varying spreads above quoted market rates. The Company has access to a $1.50 billion revolving credit agreement (the "Credit Facility") expiring December 2026 that was amended in March 2023. The amendment replaced the London Interbank Offered Rate-based ("LIBOR") reference interest rate option with a reference interest rate option based upon Term Secured Overnight Financing Rate ("SOFR") (as defined in the Credit Facility). All other material terms of the Credit Facility remain unchanged. 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 includes sustainability-linked pricing terms, provides available liquidity for general corporate purposes, and supports commercial paper borrowings. Commercial paper borrowings are classified as short-term. At March 31, 2023 and December 31, 2022, the Company had no outstanding borrowings under the Credit Facility. At March 31, 2023, the Company had no outstanding commercial paper borrowings. At December 31, 2022, the Company's commercial paper borrowings were $326 million with a weighted average interest rate of 4.85%. The Credit Facility, the 2024 Term Loan, and the 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 March 31, 2023 and December 31, 2022. Fair Value of Borrowings Eastman has classified its total borrowings at March 31, 2023 and December 31, 2022 under the fair value hierarchy as defined in the accounting policies in Note 1, "Significant Accounting Policies", to the consolidated financial statements in Part II, Item 8 of the Company's 2022 Annual Report on Form 10-K . 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, under the Term Loans and commercial paper, equals the carrying value and is classified as Level 2. At March 31, 2023 and December 31, 2022, the fair values of total borrowings were $5.5 billion and $4.9 billion, respectively. The Company had no borrowings classified as Level 1 and Level 3 as of March 31, 2023 and December 31, 2022. |
DERIVATIVE AND NON-DERIVATIVE F
DERIVATIVE AND NON-DERIVATIVE FINANCIAL INSTRUMENTS | 3 Months Ended |
Mar. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVES | 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. For further information on hedging programs, see Note 10, "Derivative and Non-Derivative Financial Instruments", to the consolidated financial statements in Part II, Item 8 of the Company's 2022 Annual Report on Form 10-K . 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 "Accumulated other comprehensive income (loss)" ("AOCI") on the Unaudited 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 Unaudited Consolidated Statements of Cash Flows. 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 Unaudited 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 Unaudited Consolidated Statements of Cash Flows. 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 investments in certain foreign operations. The net of the change in the hedge instrument and item being hedged for qualifying net investment hedges is reported as a component of the "Cumulative Translation Adjustment" ("CTA") within AOCI on the Unaudited Consolidated Statements of Financial Position. Cash flows from the CTA component are classified as operating activities in the Unaudited 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 Unaudited 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" on the Unaudited Consolidated Statements of Financial Position. Cash flows from excluded components are classified as operating activities in the Unaudited Consolidated Statements of Cash Flows. In February 2023, Eastman entered into fixed-to-fixed cross-currency swaps and designated these swaps to hedge a portion of its net investment in a euro functional currency denominated subsidiary against foreign currency fluctuations. These contracts involve the exchange of fixed U.S. dollars with fixed euro interest payments periodically over the life of the contracts and an exchange of the notional amounts at maturity. The fixed-to-fixed cross-currency swap includes €283 million ($300 million) maturing March 2033. In February 2023, the Company also entered into a fixed-to-fixed cross-currency swap and designated the swap to hedge a portion of its net investment in a Japanese yen functional currency denominated subsidiary against foreign currency fluctuations. This contract involves the exchange of fixed U.S. dollars with fixed Japanese yen interest payments over the life of the contract and an exchange of the notional amounts at maturity. The fixed-to-fixed cross-currency swaps include ¥6.7 billion ($50 million) maturing March 2025. Summary of Financial Position and Financial Performance of Hedging Ins truments The following table presents the notional amounts outstanding at March 31, 2023 and December 31, 2022 associated with Eastman's hedging programs. Notional Outstanding March 31, 2023 December 31, 2022 Derivatives designated as cash flow hedges: Foreign Exchange Forward and Option Contracts (in millions) EUR/USD (in EUR) €515 €573 Commodity Forward and Collar Contracts Energy (in million british thermal units) 8 3 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) €870 €587 JPY/USD (in JPY) ¥6,723 — Non-derivatives designated as net investment hedges: Foreign Currency Net Investment Hedges (in millions) EUR/USD (in EUR) €1,247 €1,247 Fair Value Measurements 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 compares a subset of its valuations against valuations received from counterparties to validate the accuracy of its standard pricing models. The Company had no derivatives classified as Level 3 as of March 31, 2023 and December 31, 2022. 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 recognize a credit loss during first quarter 2023 or 2022. 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 has elected to present derivative contracts on a gross basis on the Unaudited 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 on the Unaudited Consolidated Statements of Financial Position as of March 31, 2023 and December 31, 2022. The Financial Position and Fair Value Measurements of Hedging Instruments on a Gross Basis (Dollars in millions) Derivative Type Statements of Financial Level 2 March 31, 2023 December 31, 2022 Derivatives designated as cash flow hedges: Commodity contracts Other current assets $ — $ 3 Derivatives designated as fair value hedges: Fixed-for-floating interest rate swap Other current assets — 1 Derivatives designated as net investment hedges: Cross-currency interest rate swaps Other noncurrent assets 64 72 Total Derivative Assets $ 64 $ 76 Derivatives designated as cash flow hedges: Commodity contracts Payables and other current liabilities $ 2 $ 3 Foreign exchange contracts Payables and other current liabilities 10 8 Foreign exchange contracts Other long-term liabilities 4 4 Derivatives designated as fair value hedges: Fixed-for-floating interest rate swap Long-term borrowings 4 5 Derivatives designated as net investment hedges: Cross-currency interest rate swaps Other long-term liabilities 8 — Total Derivative Liabilities $ 28 $ 20 Total Net Derivative Assets (Liabilities) $ 36 $ 56 In addition to the fair value associated with derivative instruments designated as cash flow hedges, fair value hedges, and net investment hedges, the Company had non-derivative instruments designated as foreign currency net investment hedges with a carrying value of $1.4 billion at March 31, 2023 and $1.3 billion at December 31, 2022. The designated foreign currency-denominated borrowings are included as part of "Borrowings due within one year" and "Long-term borrowings" on the Unaudited Consolidated Statements of Financial Position. For additional fair value measurement information, see Note 1, "Significant Accounting Policies", and Note 10, "Derivative and Non-Derivative Financial Instruments", to the consolidated financial statements in Part II, Item 8 of the Company's 2022 Annual Report on Form 10-K . As of March 31, 2023 and December 31, 2022, the following amounts were included on the Unaudited 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 on the Unaudited Consolidated Statements of Financial Position in which the hedged item is included March 31, 2023 December 31, 2022 March 31, 2023 December 31, 2022 Long-term borrowings $ 71 $ 70 $ (4) $ (5) 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 first quarter 2023 and 2022. Change in amount of after tax gain (loss) recognized in OCI on derivatives Pre-tax amount of gain (loss) reclassified from AOCI into earnings (Dollars in millions) First Quarter First Quarter Hedging Relationships 2023 2022 2023 2022 Derivatives in cash flow hedging relationships: Commodity contracts $ (3) $ 24 $ (1) $ 3 Foreign exchange contracts (7) 6 5 5 Forward starting interest rate and treasury lock swap contracts 1 5 (1) (2) Non-derivatives in net investment hedging relationships (pre-tax): Net investment hedges (27) 61 — — Derivatives in net investment hedging relationships (pre-tax): Cross-currency interest rate swaps (17) 23 — — Cross-currency interest rate swaps excluded component 1 (10) — — The following table presents the effect of fair value and cash flow hedge accounting in the Unaudited Consolidated Statements of Earnings, Comprehensive Income and Retained Earnings for first quarter 2023 and 2022. Location and Amount of Gain or (Loss) Recognized in Earnings from Fair Value and Cash Flow Hedging Relationships First Quarter 2023 2022 (Dollars in millions) 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 Unaudited Consolidated Statements of Earnings, Comprehensive Income and Retained Earnings in which the effects of fair value or cash flow hedges are recognized $ 2,412 $ 1,883 $ 52 $ 2,714 $ 2,164 $ 46 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 1 1 Derivatives designated as hedging instruments (1) (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 (1) (2) Commodity Contracts: Amount reclassified from AOCI into earnings (1) 3 Foreign Exchange Contracts: Amount reclassified from AOCI into earnings 5 5 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 line item "Other (income) charges, net" in the Unaudited Consolidated Statements of Earnings, Comprehensive Income and Retained Earnings. As a result of these derivatives, the Company recognized a net loss of $5 million during first quarter 2023, and did not recognize a gain or loss during first quarter 2022. Pre-tax monetized positions and mark-to-market gains and losses from raw materials and energy, currency, and certain interest rate hedges that were included in AOCI included net gains of $79 million and $134 million at March 31, 2023 and December 31, 2022, respectively. Gains in AOCI decreased between December 31, 2022 and March 31, 2023 primarily as a result of an increase in euro to U.S. dollar exchange rates. If recognized, approximately $1 million in pre-tax losses, as of March 31, 2023, would 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 | 3 Months Ended |
Mar. 31, 2023 | |
Retirement Benefits [Abstract] | |
RETIREMENT PLANS | RETIREMENT PLANS Defined Benefit Pension Plans and Other Postretirement Benefit Plans Eastman maintains defined benefit pension plans that provide eligible employees with retirement benefits. In addition, Eastman provides life insurance for eligible retirees hired prior to January 1, 2007. Company funding is provided for eligible Medicare retirees hired prior to January 1, 2007 with a health reimbursement arrangement. Costs recognized for these benefits are estimated amounts, which may change as actual costs for the year are determined. For additional information regarding retirement plans, see Note 11, "Retirement Plans", to the consolidated financial statements in Part II, Item 8 of the Company's 2022 Annual Report on Form 10-K . Components of net periodic benefit (credit) cost were as follows: First Quarter Pension Plans Other Postretirement Benefit Plans 2023 2022 2023 2022 (Dollars in millions) U.S. Non-U.S. U.S. Non-U.S. Service cost $ 6 $ 2 $ 6 $ 4 $ — $ — Interest cost 19 7 11 4 7 4 Expected return on assets (22) (6) (32) (9) (1) (1) Amortization of: Prior service credit, net — — — — (7) (8) Net periodic benefit (credit) cost $ 3 $ 3 $ (15) $ (1) $ (1) $ (5) 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. Remainder of 2023 $ 100 $ 21 $ 35 2024 135 26 47 2025 134 28 47 2026 131 31 46 2027 136 35 45 2028-2032 644 187 208 |
ENVIRONMENTAL MATTERS AND ASSET
ENVIRONMENTAL MATTERS AND ASSET RETIREMENT OBLIGATIONS | 3 Months Ended |
Mar. 31, 2023 | |
Accrual for Environmental Loss Contingencies Disclosure [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", to the consolidated financial statements in Part II, Item 8 of the Company's 2022 Annual Report on Form 10-K . The resolution of uncertainties related to environmental matters 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 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 position, results of operations, or cash flows. 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 Unaudited Consolidated Statements of Financial Position as follows: (Dollars in millions) March 31, 2023 December 31, 2022 Environmental contingencies, current $ 15 $ 10 Environmental contingencies, long-term 260 264 Total $ 275 $ 274 Environmental Remediation Estimated future environmental expenditures for undiscounted remediation costs ranged from the best estimate or minimum of $243 million to the maximum of $455 million and from the best estimate or minimum of $245 million to the maximum of $457 million at March 31, 2023 and December 31, 2022, respectively. The best estimate or minimum estimated future environmental expenditures are considered to be probable and reasonably estimable. 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" in the Unaudited Consolidated Statements of Earnings, Comprehensive Income and Retained Earnings. Changes in the reserves for environmental remediation liabilities during first three months 2023 and full year 2022 are summarized below: (Dollars in millions) Environmental Remediation Liabilities Balance at December 31, 2021 $ 253 Changes in estimates recognized in earnings and other 6 Cash reductions (14) Balance at December 31, 2022 245 Changes in estimates recognized in earnings and other 1 Cash reductions (3) Balance at March 31, 2023 $ 243 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 primarily consist of 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 were $32 million and $29 million at March 31, 2023 and December 31, 2022, respectively. Non-Environmental Asset Retirement Obligations 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 $52 million and $51 million at March 31, 2023 and December 31, 2022, respectively, and are included in "Other long-term liabilities" on the Unaudited Consolidated Statements of Financial Position. |
LEGAL MATTERS
LEGAL MATTERS | 3 Months Ended |
Mar. 31, 2023 | |
Loss Contingency, Information about Litigation Matters [Abstract] | |
LEGAL MATTERS | 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 | 3 Months Ended |
Mar. 31, 2023 | |
Stockholders' Equity Note [Abstract] | |
STOCKHOLDERS' EQUITY | STOCKHOLDERS' EQUITY Reconciliations of the changes in stockholders' equity for first quarter 2023 and 2022 are provided below: (Dollars in millions, except per share amount) 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, 2022 $ 2 $ 2,315 $ 8,973 $ (205) $ (5,932) $ 5,153 $ 83 $ 5,236 Net Earnings — — 134 — — 134 — 134 Cash Dividends Declared (1) ($0.79 per share) — — (94) — — (94) — (94) Other Comprehensive Income (Loss) — — — (15) — (15) — (15) Share-Based Compensation Expense (2) — 22 — — — 22 — 22 Stock Option Exercises — 2 — — — 2 — 2 Other (3) — (14) — — — (14) 3 (11) Distributions to noncontrolling interest — — — — — — (12) (12) Balance at March 31, 2023 $ 2 $ 2,325 $ 9,013 $ (220) $ (5,932) $ 5,188 $ 74 $ 5,262 (Dollars in millions, except per share amount) 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, 2021 $ 2 $ 2,187 $ 8,557 $ (182) $ (4,860) $ 5,704 $ 84 $ 5,788 Net Earnings — — 235 — — 235 1 236 Cash Dividends Declared (1) ($0.76 per share) — — (98) — — (98) — (98) Other Comprehensive Income (Loss) — — — 37 — 37 — 37 Share-Based Compensation Expense (2) — 25 — — — 25 — 25 Stock Option Exercises — 8 — — — 8 — 8 Other (3) — (18) — — — (18) (1) (19) Share Repurchase (4) — 60 — — (60) — — — Balance at March 31, 2022 $ 2 $ 2,262 $ 8,694 $ (145) $ (4,920) $ 5,893 $ 84 $ 5,977 (1) Cash dividends declared consists of cash dividends paid and dividends declared but unpaid. (2) Share-based compensation expense is based on 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) Treasury shares delivered pursuant to final settlement of the December 2021 accelerated share repurchase program ("2021 ASR") accounted for as a reduction of Additional paid-in capital prior to settlement. Accumulated Other Comprehensive Income (Loss), Net of Tax (Dollars in millions) Cumulative Translation Adjustment Benefit Plans Unrecognized Prior Service Credits Unrealized Gains (Losses) on Derivative Instruments Unrealized Losses on Investments Accumulated Other Comprehensive Income (Loss) Balance at December 31, 2021 $ (237) $ 59 $ (3) $ (1) $ (182) Period change 7 (27) (3) — (23) Balance at December 31, 2022 (230) 32 (6) (1) (205) Period change (1) (5) (9) — (15) Balance at March 31, 2023 $ (231) $ 27 $ (15) $ (1) $ (220) Amounts of other comprehensive income (loss) are presented net of applicable taxes. Eastman recognizes deferred income taxes on the CTA 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 CTA of other subsidiaries outside the United States because the CTA is considered to be a component of indefinitely invested, unremitted earnings of these foreign subsidiaries. Components of other comprehensive income recognized in the Unaudited Consolidated Statements of Earnings, Comprehensive Income and Retained Earnings are presented below, before tax and net of tax effects: First Quarter 2023 2022 (Dollars in millions) Before Tax Net of Tax Before Tax Net of Tax Other comprehensive income (loss) Change in cumulative translation adjustment $ (1) $ (1) $ 7 $ 7 Defined benefit pension and other postretirement benefit plans: Amortization of unrecognized prior service credits (7) (5) (8) (6) Derivatives and hedging: Unrealized gain (loss) during period (9) (7) 53 40 Reclassification adjustment for (gains) losses included in net income, net (3) (2) (5) (4) Total other comprehensive income (loss) $ (20) $ (15) $ 47 $ 37 |
EARNINGS AND DIVIDENDS PER SHAR
EARNINGS AND DIVIDENDS PER SHARE | 3 Months Ended |
Mar. 31, 2023 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | EARNINGS AND DIVIDENDS PER SHARE The following table sets forth the computation of basic and diluted earnings per share ("EPS") which are calculated using the treasury stock method: First Quarter (In millions, except per share amounts) 2023 2022 Numerator Earnings attributable to Eastman, net of tax $ 134 $ 235 Denominator Weighted average shares used for basic EPS 118.9 129.0 Dilutive effect of stock options and other awards 0.8 1.7 Weighted average shares used for diluted EPS 119.7 130.7 (Calculated using whole dollars and shares) EPS Basic $ 1.13 $ 1.82 Diluted $ 1.12 $ 1.80 Shares underlying stock options of 1,879,459 and 507,692 for first quarter 2023 and 2022, respectively, were excluded from calculations of diluted EPS because the grant date exercise 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. The Company did not repurchase shares in first quarter 2023. First quarter 2022 reflects 548,035 shares delivered as part of the accelerated share repurchase program the Company entered into in fourth quarter 2021 (the "2021 ASR"). The Company declared cash dividends of $0.79 and $0.76 per share for first quarter 2023 and 2022, respectively. |
ASSETS IMPAIRMENTS AND RESTRUCT
ASSETS IMPAIRMENTS AND RESTRUCTURING | 3 Months Ended |
Mar. 31, 2023 | |
Restructuring Costs and Asset Impairment Charges [Abstract] | |
ASSET IMPAIRMENTS AND RESTRUCTURING | ASSET IMPAIRMENTS AND RESTRUCTURING CHARGES, NET (Dollars in millions) First Quarter 2023 2022 Severance charges (1) $ 16 $ — Site closure and other restructuring charges (2) (3) 6 2 Total $ 22 $ 2 (1) Severance charges as part of fourth quarter 2022 cost reduction initiatives reported in "Other". (2) First quarter 2023 site closure costs are for the closure of an acetate yarn manufacturing facility in Europe in the Fibers segment. In addition, accelerated depreciation of $23 million was recognized in "Cost of sales" in the Unaudited Consolidated Statements of Earnings, Comprehensive Income and Retained Earnings in first quarter 2023 related to the closure of this facility. (3) First quarter 2022 site closure costs of $1 million in the CI segment for the previously reported closure of a Singapore manufacturing site, and $1 million in the AM segment for the closure of an advanced interlayers manufacturing facility in North America. Changes in Reserves The following table summarizes the changes in asset impairments and restructuring reserves in first three months 2023 and full year 2022: (Dollars in millions) Balance at January 1, 2023 Provision/ Adjustments Non-cash Reductions/ Cash Reductions Balance at March 31, 2023 Severance costs $ 34 $ 16 $ — $ (20) $ 30 Other restructuring costs 18 6 — (22) 2 Total $ 52 $ 22 $ — $ (42) $ 32 (Dollars in millions) Balance at January 1, 2022 Provision/ Adjustments Non-cash Reductions/ Cash Reductions Balance at December 31, 2022 Severance costs $ 12 $ 31 $ — $ (9) $ 34 Other restructuring costs 5 21 1 (9) 18 Total $ 17 $ 52 $ 1 $ (18) $ 52 Substantially all severance costs remaining are expected to be applied to the reserves within one year. |
SHARE BASED COMPENSATION AWARDS
SHARE BASED COMPENSATION AWARDS | 3 Months Ended |
Mar. 31, 2023 | |
SHARE BASED COMPENSATION AWARDS [Abstract] | |
Share-based Payment Arrangement [Text Block] | SHARE-BASED COMPENSATION AWARDSThe Company utilizes share-based awards under employee and non-employee director compensation programs. These share-based awards have included restricted and unrestricted stock, restricted stock units, stock options, and long-term performance shares. In first quarter 2023 and 2022, $22 million and $25 million, respectively, of compensation expense before tax were recognized in "Selling, general and administrative expenses" ("SG&A") in the Unaudited Consolidated Statements of Earnings, Comprehensive Income and Retained Earnings for all share-based awards of which $7 million and $8 million, respectively, was for 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 award notices. For first quarter 2023 and 2022, $6 million and $7 million, respectively, of stock option compensation expense was recognized due to qualifying termination eligibility preceding the requisite service period. The impact on first quarter 2023 and 2022 net earnings of $16 million and $19 million, respectively, is net of deferred tax expense related to share-based award compensation for each period. Stock Option Grants In first quarter 2023 and 2022, the number of stock options granted under the 2021 Omnibus Stock Compensation Plan was approximately 399 thousand and 362 thousand, respectively. Options 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 assumptions used in the determination of fair value for stock options granted in first quarter 2023 and 2022 are provided in the table below: First Quarter Assumptions 2023 2022 Expected volatility rate 30.55% 28.69% Expected dividend yield 3.31% 2.46% Average risk-free interest rate 4.13% 1.93% Expected term years 6.4 6.4 The grant date exercise price and fair value of options granted during first quarter 2023 were $83.84 and $21.67, respectively, and first quarter 2022 were $120.80 and $28.07, respectively. For options unvested at March 31, 2023, $4 million in compensation expense will be recognized over the next three years. Other Share-Based Compensation Awards In addition to stock option grants, the Company has awarded long-term performance shares, restricted stock and restricted stock units, and stock appreciation rights. 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 and pay out in unrestricted shares of common stock at the end of the performance period. The awards are valued using a Monte Carlo Simulation based model and vest pro-ratably over the three year performance period. The number of long-term performance share target awards during first quarter 2023 and 2022 for the 2023-2025 and 2022-2024 periods was approximately 407 thousand and 288 thousand, respectively. The target shares awarded are assumed to vest at 100 percent of the established target. At the end of the three-year performance period, the actual number of shares awarded can range from zero to 250 percent of the target shares based on the award notice. The number of restricted stock unit awards, which pay out in unrestricted shares of common stock at the end of the vesting and performance (if any) period, during first quarter 2023 and 2022 were approximately 108 thousand and 71 thousand, respectively. The fair value of a restricted stock unit award is equal to the closing stock price of the Company's stock on the award date and normally vests over a period of three years. In first quarter 2023 and 2022, $15 million and $17 million, respectively, was recognized as compensation expense before tax for these other share-based awards and was included in the total compensation expense noted above for all share-based awards. The unrecognized compensation expense before tax for these same type awards at March 31, 2023 was approximately $117 million and will be recognized primarily over a period of three years. For additional information regarding share-based compensation plans and awards, see Note 18, "Share-Based Compensation Plans and Awards", to the consolidated financial statements in Part II, Item 8 of the Company's 2022 Annual Report on Form 10-K . |
SEGMENT AND REGIONAL SALES INFO
SEGMENT AND REGIONAL SALES INFORMATION | 3 Months Ended |
Mar. 31, 2023 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | SEGMENT 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. For disaggregation of revenue by major product lines and regions for each business operating segment, see Note 20, "Segment and Regional Sales Information", to the consolidated financial statements in Part II, Item 8 of the Company's 2022 Annual Report on Form 10-K . For additional financial information for each segment, see Part I, Item 1, "Business - Business Segments", in the Company's 2022 Annual Report on Form 10-K . In first quarter 2023, the Company moved the functional amines product line into the AFP segment. In addition, certain organic acid products and olefin-based products moved from the AFP segment to the CI segment. These product moves are expected to increase efficiency of the Company's assets and commercial teams, and to increase portfolio transparency. The information presented below has been recast for all periods presented. (Dollars in millions) First Quarter Sales by Segment 2023 2022 Advanced Materials $ 742 $ 737 Additives & Functional Products (1) 777 889 Chemical Intermediates (1) 589 715 Fibers 303 213 Total Sales by Operating Segment 2,411 2,554 Other (2) 1 160 Total Sales $ 2,412 $ 2,714 (1) 2022 is reclassified to conform to current period presentation. (2) "Other" in first quarter 2022 is sales revenue from the previously divested business. (Dollars in millions) First Quarter Earnings (Loss) Before Interest and Taxes by Segment 2023 2022 Advanced Materials $ 86 $ 61 Additives & Functional Products (1) 124 167 Chemical Intermediates (1) 42 112 Fibers 65 24 Total Earnings Before Interest and Taxes by Operating Segment 317 364 Other (2) Growth initiatives and businesses not allocated to operating segments (51) (32) Pension and other postretirement benefits income (expense), net not allocated to operating segments (4) 23 Asset impairments and restructuring charges, net (16) — Transaction costs, net of gain on divested business — (6) Net steam line incident (costs), insurance proceeds 8 (25) Other income (charges), net not allocated to operating segments (8) 9 Total Earnings Before Interest and Taxes $ 246 $ 333 (1) 2022 is reclassified to conform to current period presentation. (2) "Other" in first quarter 2022 includes EBIT of $6 million from the previously divested business. |
SIGNIFICANT ACCOUNTING POLICI_2
SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2023 | |
Basis of Presentation [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared by Eastman Chemical Company ("Eastman" or the "Company") in accordance and consistent with the accounting policies stated in the Company's 2022 Annual Report on Form 10-K , and should be read in conjunction with the consolidated financial statements in Part II, Item 8 of that report, with the exception of recently adopted accounting standards noted below. The December 31, 2022 financial position data included herein was derived from the consolidated financial statements included in the 2022 Annual Report on Form 10-K but does not include all disclosures required by accounting principles generally accepted in the United States ("GAAP"). In the opinion of management, the unaudited consolidated financial statements include all normal recurring adjustments necessary for the fair statement of the interim financial information in conformity with GAAP. These statements contain some amounts that are based upon management estimates and judgments. Future actual results could differ from such current estimates. The unaudited consolidated financial statements include assets, liabilities, revenues, and expenses of business ventures in which Eastman has a controlling interest. Eastman accounts for other joint ventures and investments where it exercises significant influence on the equity basis. Intercompany transactions and balances are eliminated in consolidation. Certain prior period data has been reclassified in the unaudited consolidated financial statements and accompanying footnotes to conform to current period presentation, including sales revenue, earnings before interest and taxes ("EBIT"), and goodwill related to the product moves announced in first quarter 2023. See Note 3, "Goodwill", and Note 14, "Segment Information", for more information. |
New Accounting Pronouncements, Policy [Policy Text Block] | Recently Adopted Accounting Standards Accounting Standards Update ("ASU") 2021-08 Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers : On January 1, 2023, Eastman adopted prospectively this update, 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 adoption did not 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 : On January 1, 2023, Eastman adopted this update which 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. The adoption did not 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 : On January 1, 2023, Eastman adopted this update which amends 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. The adoption did not 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 : On January 1, 2023, Eastman adopted this update 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. The adoption did not have a significant impact on the Company's financial position, results of operations, or cash flows. The required disclosures are included as part of "Working Capital Management and Off Balance Sheet Arrangements" disclosure below. Accounting Standards Issued But Not Adopted as of March 31, 2023 ASU 2022-03 Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions : The Financial Accounting Standards Board ("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. |
Off-Balance-Sheet Credit Exposure, Policy | 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 the carrying value and 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 amounts sold under the program in first quarter 2023 and 2022 were $677 million and $502 million, respectively. The Company works with suppliers to optimize payment terms and conditions on accounts payable to enhance timing of working capital and cash flows. Under a supplier finance program, the Company's suppliers may voluntarily 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. No fees are paid by Eastman for the supplier finance platform or services fees. Eastman or the financial institution may terminate the program at any time with immediate effect upon 90 days' notice. Confirmed obligations in the supplier finance program of $87 million and $100 million at March 31, 2023 and December 31, 2022, respectively, are included in "Payables and other current liabilities" on the Unaudited Consolidated Statements of Financial Position. |
INVENTORIES (Tables)
INVENTORIES (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Inventory Disclosure [Abstract] | |
Schedule of inventories | March 31, December 31, (Dollars in millions) 2023 2022 Finished goods $ 1,437 $ 1,347 Work in process 291 297 Raw materials and supplies 709 743 Total inventories at FIFO or average cost 2,437 2,387 Less: LIFO reserve 493 493 Total inventories $ 1,944 $ 1,894 |
Goodwill (Tables)
Goodwill (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | Changes to the carrying value of goodwill follow: (Dollars in millions) Advanced Materials Additives & Functional Products Chemical Intermediates Other Total Balance at December 31, 2022 $ 1,296 $ 1,601 $ 757 $ 10 $ 3,664 Adjustments to net goodwill resulting from reorganization — 569 (569) — — Acquisition 37 — — — 37 Currency translation adjustments (3) 3 2 — 2 Balance at March 31, 2023 $ 1,330 $ 2,173 $ 190 $ 10 $ 3,703 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | First Quarter (Dollars in millions) 2023 2022 $ % $ % Provision for income taxes and tax rate $ 60 31 % $ 51 18 % |
BORROWINGS (Tables)
BORROWINGS (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
Long-term Borrowings | March 31, December 31, (Dollars in millions) 2023 2022 Borrowings consisted of: 1.50% notes due May 2023 (1) $ 816 $ 800 7.25% debentures due January 2024 198 198 7.625% debentures due June 2024 43 43 3.80% notes due March 2025 694 693 1.875% notes due November 2026 (1) 542 530 7.60% debentures due February 2027 196 196 4.5% notes due December 2028 495 495 5.75% notes due March 2033 (2) 496 — 4.8% notes due September 2042 494 494 4.65% notes due October 2044 877 877 2024 Term Loan 300 — 2027 Term Loan 499 499 Commercial paper and short-term borrowings — 326 Total borrowings 5,650 5,151 Less: Borrowings due within one year 1,014 1,126 Long-term borrowings $ 4,636 $ 4,025 (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 to U.S. dollar 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. (2) Net proceeds from the bond issuance will be used to finance or refinance existing and future eligible green investment initiatives which contribute to Eastman's environmental sustainability strategy (a green bond). |
DERIVATIVE AND NON-DERIVATIVE_2
DERIVATIVE AND NON-DERIVATIVE FINANCIAL INSTRUMENTS (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Cumulative basis adjustments for fair value hedges on balance sheet [Table Text Block] | As of March 31, 2023 and December 31, 2022, the following amounts were included on the Unaudited 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 on the Unaudited Consolidated Statements of Financial Position in which the hedged item is included March 31, 2023 December 31, 2022 March 31, 2023 December 31, 2022 Long-term borrowings $ 71 $ 70 $ (4) $ (5) |
Derivative Instruments, Gain (Loss) [Table Text Block] | The following table presents the effect of fair value and cash flow hedge accounting in the Unaudited Consolidated Statements of Earnings, Comprehensive Income and Retained Earnings for first quarter 2023 and 2022. Location and Amount of Gain or (Loss) Recognized in Earnings from Fair Value and Cash Flow Hedging Relationships First Quarter 2023 2022 (Dollars in millions) 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 Unaudited Consolidated Statements of Earnings, Comprehensive Income and Retained Earnings in which the effects of fair value or cash flow hedges are recognized $ 2,412 $ 1,883 $ 52 $ 2,714 $ 2,164 $ 46 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 1 1 Derivatives designated as hedging instruments (1) (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 (1) (2) Commodity Contracts: Amount reclassified from AOCI into earnings (1) 3 Foreign Exchange Contracts: Amount reclassified from AOCI into earnings 5 5 |
Schedule of Notional Amounts of Outstanding Derivative Positions [Table Text Block] | The following table presents the notional amounts outstanding at March 31, 2023 and December 31, 2022 associated with Eastman's hedging programs. Notional Outstanding March 31, 2023 December 31, 2022 Derivatives designated as cash flow hedges: Foreign Exchange Forward and Option Contracts (in millions) EUR/USD (in EUR) €515 €573 Commodity Forward and Collar Contracts Energy (in million british thermal units) 8 3 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) €870 €587 JPY/USD (in JPY) ¥6,723 — Non-derivatives designated as net investment hedges: Foreign Currency Net Investment Hedges (in millions) EUR/USD (in EUR) €1,247 €1,247 |
Schedule of Derivative Instruments, Effect on Other Comprehensive Income (Loss) | 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 first quarter 2023 and 2022. Change in amount of after tax gain (loss) recognized in OCI on derivatives Pre-tax amount of gain (loss) reclassified from AOCI into earnings (Dollars in millions) First Quarter First Quarter Hedging Relationships 2023 2022 2023 2022 Derivatives in cash flow hedging relationships: Commodity contracts $ (3) $ 24 $ (1) $ 3 Foreign exchange contracts (7) 6 5 5 Forward starting interest rate and treasury lock swap contracts 1 5 (1) (2) Non-derivatives in net investment hedging relationships (pre-tax): Net investment hedges (27) 61 — — Derivatives in net investment hedging relationships (pre-tax): Cross-currency interest rate swaps (17) 23 — — Cross-currency interest rate swaps excluded component 1 (10) — — |
Financial assets and liabilities valued on a recurring basis | 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 on the Unaudited Consolidated Statements of Financial Position as of March 31, 2023 and December 31, 2022. The Financial Position and Fair Value Measurements of Hedging Instruments on a Gross Basis (Dollars in millions) Derivative Type Statements of Financial Level 2 March 31, 2023 December 31, 2022 Derivatives designated as cash flow hedges: Commodity contracts Other current assets $ — $ 3 Derivatives designated as fair value hedges: Fixed-for-floating interest rate swap Other current assets — 1 Derivatives designated as net investment hedges: Cross-currency interest rate swaps Other noncurrent assets 64 72 Total Derivative Assets $ 64 $ 76 Derivatives designated as cash flow hedges: Commodity contracts Payables and other current liabilities $ 2 $ 3 Foreign exchange contracts Payables and other current liabilities 10 8 Foreign exchange contracts Other long-term liabilities 4 4 Derivatives designated as fair value hedges: Fixed-for-floating interest rate swap Long-term borrowings 4 5 Derivatives designated as net investment hedges: Cross-currency interest rate swaps Other long-term liabilities 8 — Total Derivative Liabilities $ 28 $ 20 Total Net Derivative Assets (Liabilities) $ 36 $ 56 |
RETIREMENT PLANS (Tables)
RETIREMENT PLANS (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Retirement Benefits [Abstract] | |
Components of net periodic benefit cost | Components of net periodic benefit (credit) cost were as follows: First Quarter Pension Plans Other Postretirement Benefit Plans 2023 2022 2023 2022 (Dollars in millions) U.S. Non-U.S. U.S. Non-U.S. Service cost $ 6 $ 2 $ 6 $ 4 $ — $ — Interest cost 19 7 11 4 7 4 Expected return on assets (22) (6) (32) (9) (1) (1) Amortization of: Prior service credit, net — — — — (7) (8) Net periodic benefit (credit) cost $ 3 $ 3 $ (15) $ (1) $ (1) $ (5) |
Schedule of Expected Benefit Payments | 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. Remainder of 2023 $ 100 $ 21 $ 35 2024 135 26 47 2025 134 28 47 2026 131 31 46 2027 136 35 45 2028-2032 644 187 208 |
ENVIRONMENTAL MATTERS AND ASS_2
ENVIRONMENTAL MATTERS AND ASSET RETIREMENT OBLIGATIONS (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Accrual for Environmental Loss Contingencies Disclosure [Abstract] | |
Schedule of environmental liabilities, current and non-current | (Dollars in millions) March 31, 2023 December 31, 2022 Environmental contingencies, current $ 15 $ 10 Environmental contingencies, long-term 260 264 Total $ 275 $ 274 |
Schedule of changes to environmental remediation liabilities | Changes in the reserves for environmental remediation liabilities during first three months 2023 and full year 2022 are summarized below: (Dollars in millions) Environmental Remediation Liabilities Balance at December 31, 2021 $ 253 Changes in estimates recognized in earnings and other 6 Cash reductions (14) Balance at December 31, 2022 245 Changes in estimates recognized in earnings and other 1 Cash reductions (3) Balance at March 31, 2023 $ 243 |
STOCKHOLDERS' EQUITY (Tables)
STOCKHOLDERS' EQUITY (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Stockholders' Equity Note [Abstract] | |
Reconciliation of the changes in stockholders' equity | Reconciliations of the changes in stockholders' equity for first quarter 2023 and 2022 are provided below: (Dollars in millions, except per share amount) 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, 2022 $ 2 $ 2,315 $ 8,973 $ (205) $ (5,932) $ 5,153 $ 83 $ 5,236 Net Earnings — — 134 — — 134 — 134 Cash Dividends Declared (1) ($0.79 per share) — — (94) — — (94) — (94) Other Comprehensive Income (Loss) — — — (15) — (15) — (15) Share-Based Compensation Expense (2) — 22 — — — 22 — 22 Stock Option Exercises — 2 — — — 2 — 2 Other (3) — (14) — — — (14) 3 (11) Distributions to noncontrolling interest — — — — — — (12) (12) Balance at March 31, 2023 $ 2 $ 2,325 $ 9,013 $ (220) $ (5,932) $ 5,188 $ 74 $ 5,262 (Dollars in millions, except per share amount) 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, 2021 $ 2 $ 2,187 $ 8,557 $ (182) $ (4,860) $ 5,704 $ 84 $ 5,788 Net Earnings — — 235 — — 235 1 236 Cash Dividends Declared (1) ($0.76 per share) — — (98) — — (98) — (98) Other Comprehensive Income (Loss) — — — 37 — 37 — 37 Share-Based Compensation Expense (2) — 25 — — — 25 — 25 Stock Option Exercises — 8 — — — 8 — 8 Other (3) — (18) — — — (18) (1) (19) Share Repurchase (4) — 60 — — (60) — — — Balance at March 31, 2022 $ 2 $ 2,262 $ 8,694 $ (145) $ (4,920) $ 5,893 $ 84 $ 5,977 (1) Cash dividends declared consists of cash dividends paid and dividends declared but unpaid. (2) Share-based compensation expense is based on 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) Treasury shares delivered pursuant to final settlement of the December 2021 accelerated share repurchase program ("2021 ASR") accounted for as a reduction of Additional paid-in capital prior to settlement. |
Accumulated Other Comprehensive Income (Loss) | (Dollars in millions) Cumulative Translation Adjustment Benefit Plans Unrecognized Prior Service Credits Unrealized Gains (Losses) on Derivative Instruments Unrealized Losses on Investments Accumulated Other Comprehensive Income (Loss) Balance at December 31, 2021 $ (237) $ 59 $ (3) $ (1) $ (182) Period change 7 (27) (3) — (23) Balance at December 31, 2022 (230) 32 (6) (1) (205) Period change (1) (5) (9) — (15) Balance at March 31, 2023 $ (231) $ 27 $ (15) $ (1) $ (220) |
Schedule of components of comprehensive income (loss) before tax and net of tax effects | Components of other comprehensive income recognized in the Unaudited Consolidated Statements of Earnings, Comprehensive Income and Retained Earnings are presented below, before tax and net of tax effects: First Quarter 2023 2022 (Dollars in millions) Before Tax Net of Tax Before Tax Net of Tax Other comprehensive income (loss) Change in cumulative translation adjustment $ (1) $ (1) $ 7 $ 7 Defined benefit pension and other postretirement benefit plans: Amortization of unrecognized prior service credits (7) (5) (8) (6) Derivatives and hedging: Unrealized gain (loss) during period (9) (7) 53 40 Reclassification adjustment for (gains) losses included in net income, net (3) (2) (5) (4) Total other comprehensive income (loss) $ (20) $ (15) $ 47 $ 37 |
EARNINGS AND DIVIDENDS PER SH_2
EARNINGS AND DIVIDENDS PER SHARE (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Earnings Per Share [Abstract] | |
Earnings per share, basic and diluted | The following table sets forth the computation of basic and diluted earnings per share ("EPS") which are calculated using the treasury stock method: First Quarter (In millions, except per share amounts) 2023 2022 Numerator Earnings attributable to Eastman, net of tax $ 134 $ 235 Denominator Weighted average shares used for basic EPS 118.9 129.0 Dilutive effect of stock options and other awards 0.8 1.7 Weighted average shares used for diluted EPS 119.7 130.7 (Calculated using whole dollars and shares) EPS Basic $ 1.13 $ 1.82 Diluted $ 1.12 $ 1.80 |
ASSETS IMPAIRMENTS AND RESTRU_2
ASSETS IMPAIRMENTS AND RESTRUCTURING (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Restructuring Costs and Asset Impairment Charges [Abstract] | |
Schedule of Restructuring Reserve by Type of Cost [Table Text Block] | The following table summarizes the changes in asset impairments and restructuring reserves in first three months 2023 and full year 2022: (Dollars in millions) Balance at January 1, 2023 Provision/ Adjustments Non-cash Reductions/ Cash Reductions Balance at March 31, 2023 Severance costs $ 34 $ 16 $ — $ (20) $ 30 Other restructuring costs 18 6 — (22) 2 Total $ 52 $ 22 $ — $ (42) $ 32 (Dollars in millions) Balance at January 1, 2022 Provision/ Adjustments Non-cash Reductions/ Cash Reductions Balance at December 31, 2022 Severance costs $ 12 $ 31 $ — $ (9) $ 34 Other restructuring costs 5 21 1 (9) 18 Total $ 17 $ 52 $ 1 $ (18) $ 52 |
Restructuring and Related Costs [Table Text Block] | (Dollars in millions) First Quarter 2023 2022 Severance charges (1) $ 16 $ — Site closure and other restructuring charges (2) (3) 6 2 Total $ 22 $ 2 (1) Severance charges as part of fourth quarter 2022 cost reduction initiatives reported in "Other". (2) First quarter 2023 site closure costs are for the closure of an acetate yarn manufacturing facility in Europe in the Fibers segment. In addition, accelerated depreciation of $23 million was recognized in "Cost of sales" in the Unaudited Consolidated Statements of Earnings, Comprehensive Income and Retained Earnings in first quarter 2023 related to the closure of this facility. (3) First quarter 2022 site closure costs of $1 million in the CI segment for the previously reported closure of a Singapore manufacturing site, and $1 million in the AM segment for the closure of an advanced interlayers manufacturing facility in North America. |
Share Based Compensation Awar_2
Share Based Compensation Awards (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
SHARE BASED COMPENSATION AWARDS [Abstract] | |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | The assumptions used in the determination of fair value for stock options granted in first quarter 2023 and 2022 are provided in the table below: First Quarter Assumptions 2023 2022 Expected volatility rate 30.55% 28.69% Expected dividend yield 3.31% 2.46% Average risk-free interest rate 4.13% 1.93% Expected term years 6.4 6.4 |
SEGMENT AND REGIONAL SALES IN_2
SEGMENT AND REGIONAL SALES INFORMATION (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Segment Reporting [Abstract] | |
Segment Information Disclosure | (Dollars in millions) First Quarter Sales by Segment 2023 2022 Advanced Materials $ 742 $ 737 Additives & Functional Products (1) 777 889 Chemical Intermediates (1) 589 715 Fibers 303 213 Total Sales by Operating Segment 2,411 2,554 Other (2) 1 160 Total Sales $ 2,412 $ 2,714 (1) 2022 is reclassified to conform to current period presentation. (2) "Other" in first quarter 2022 is sales revenue from the previously divested business. (Dollars in millions) First Quarter Earnings (Loss) Before Interest and Taxes by Segment 2023 2022 Advanced Materials $ 86 $ 61 Additives & Functional Products (1) 124 167 Chemical Intermediates (1) 42 112 Fibers 65 24 Total Earnings Before Interest and Taxes by Operating Segment 317 364 Other (2) Growth initiatives and businesses not allocated to operating segments (51) (32) Pension and other postretirement benefits income (expense), net not allocated to operating segments (4) 23 Asset impairments and restructuring charges, net (16) — Transaction costs, net of gain on divested business — (6) Net steam line incident (costs), insurance proceeds 8 (25) Other income (charges), net not allocated to operating segments (8) 9 Total Earnings Before Interest and Taxes $ 246 $ 333 (1) 2022 is reclassified to conform to current period presentation. (2) "Other" in first quarter 2022 includes EBIT of $6 million from the previously divested business. |
SIGNIFICANT ACCOUNTING POLICI_3
SIGNIFICANT ACCOUNTING POLICIES Recently Issued Accounting Standards (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Receivable Sold Under Factoring Arrangement | $ 677 | $ 502 | |
Supplier Finance Program, Obligation | 87 | $ 100 | |
Unrealized gain (loss) during period | $ (9) | $ 53 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
At FIFO or average cost (approximates current cost) [Abstract] | ||
Finished goods | $ 1,437 | $ 1,347 |
Work in process | 291 | 297 |
Raw materials and supplies | 709 | 743 |
Total inventories at FIFO or average cost | 2,437 | 2,387 |
Less: LIFO reserve | 493 | 493 |
Total inventories | $ 1,944 | $ 1,894 |
Inventories valued on the LIFO method | 50% | 50% |
Goodwill (Details)
Goodwill (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Dec. 31, 2022 | |
Goodwill [Line Items] | ||
Goodwill | $ 3,703 | $ 3,664 |
Goodwill, Transfers | 0 | |
Goodwill, Acquired During Period | 37 | |
Goodwill, Foreign Currency Translation Gain (Loss) | 2 | |
Advanced Materials [Member] | ||
Goodwill [Line Items] | ||
Goodwill | 1,330 | 1,296 |
Goodwill, Transfers | 0 | |
Goodwill, Acquired During Period | 37 | |
Goodwill, Foreign Currency Translation Gain (Loss) | (3) | |
Goodwill, Impaired, Accumulated Impairment Loss | 12 | 12 |
Additives And Functional Products [Member] | ||
Goodwill [Line Items] | ||
Goodwill | 2,173 | 1,601 |
Goodwill, Transfers | 569 | |
Goodwill, Acquired During Period | 0 | |
Goodwill, Foreign Currency Translation Gain (Loss) | 3 | |
Goodwill, Impaired, Accumulated Impairment Loss | 106 | 106 |
Chemical Intermediates [Member] | ||
Goodwill [Line Items] | ||
Goodwill | 190 | 757 |
Goodwill, Transfers | (569) | |
Goodwill, Acquired During Period | 0 | |
Goodwill, Foreign Currency Translation Gain (Loss) | 2 | |
Other Segments | ||
Goodwill [Line Items] | ||
Goodwill | 10 | 10 |
Goodwill, Transfers | 0 | |
Goodwill, Acquired During Period | 0 | |
Goodwill, Foreign Currency Translation Gain (Loss) | 0 | |
Goodwill, Impaired, Accumulated Impairment Loss | $ 14 | $ 14 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Income Tax Examination [Line Items] | |||
Provision for income taxes | $ 60 | $ 51 | |
Effective Income Tax Rate Reconciliation, Percent | 31% | 18% | |
Unrecognized Tax Benefits | $ 237 | $ 235 | |
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | 55 | ||
Unrealized gain (loss) during period | (9) | $ 53 | |
Effective Income Tax Rate Reconciliation, Other Reconciling Items, Amount | $ 23 |
BORROWINGS Part 1 (Details) Sch
BORROWINGS Part 1 (Details) Schedule of Long-term Debt Instruments - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Dec. 31, 2022 | |
Debt Instrument [Line Items] | ||
Total Borrowings | $ 5,650 | $ 5,151 |
Borrowings due within one year | 1,014 | 1,126 |
Long-term borrowings | 4,636 | 4,025 |
1.5% notes due May 2023 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt | $ 816 | 800 |
Debt Instrument, Interest Rate, Stated Percentage | 1.50% | |
Debt Instrument, Maturity Date | May 2023 | |
7 1/4% debentures due January 2024 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt | $ 198 | 198 |
Debt Instrument, Interest Rate, Stated Percentage | 7.25% | |
Debt Instrument, Maturity Date | January 2024 | |
Notes Due June 2024 | ||
Debt Instrument [Line Items] | ||
Long-term Debt | $ 43 | 43 |
Debt Instrument, Interest Rate, Stated Percentage | 7.625% | |
Debt Instrument, Maturity Date | June 2024 | |
3.8% notes due March 2025 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt | $ 694 | 693 |
Debt Instrument, Interest Rate, Stated Percentage | 3.80% | |
Debt Instrument, Maturity Date | March 2025 | |
1.875% notes due November 2026 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt | $ 542 | 530 |
Debt Instrument, Interest Rate, Stated Percentage | 1.875% | |
Debt Instrument, Maturity Date | November 2026 | |
7.60% debentures due February 2027 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt | $ 196 | 196 |
Debt Instrument, Interest Rate, Stated Percentage | 7.60% | |
Debt Instrument, Maturity Date | February 2027 | |
4.5% Notes Due Dec 2028 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt | $ 495 | 495 |
Debt Instrument, Interest Rate, Stated Percentage | 4.50% | |
Debt Instrument, Maturity Date | December 2028 | |
5.75% Notes Due March 2033 | ||
Debt Instrument [Line Items] | ||
Long-term Debt | $ 496 | 0 |
Debt Instrument, Interest Rate, Stated Percentage | 5.75% | |
Debt Instrument, Maturity Date | March 2033 | |
4.8% notes due September 2042 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt | $ 494 | 494 |
Debt Instrument, Interest Rate, Stated Percentage | 4.80% | |
Debt Instrument, Maturity Date | September 2042 | |
4.65% notes due October 2044 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt | $ 877 | 877 |
Debt Instrument, Interest Rate, Stated Percentage | 4.65% | |
Debt Instrument, Maturity Date | October 2044 | |
2024 Term Loan | ||
Debt Instrument [Line Items] | ||
Long-term Debt | $ 300 | 0 |
2027 Term Loan | ||
Debt Instrument [Line Items] | ||
Long-term Debt | 499 | 499 |
Commercial paper and short-term borrowings [Member] | ||
Debt Instrument [Line Items] | ||
Borrowings due within one year | $ 0 | $ 326 |
BORROWINGS Part 2 (Details) Cre
BORROWINGS Part 2 (Details) Credit Facility and Commercial Paper Borrowings - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Credit Facilities [Abstract] | |||
Borrowings due within one year | $ 1,014 | $ 1,126 | |
Commercial Paper | 0 | $ 326 | |
Proceeds from borrowings | 796 | $ 0 | |
Commercial Paper, Average Rate Paid | 4.85% | ||
2027 Term Loan | |||
Credit Facilities [Abstract] | |||
Long-term Debt | 499 | $ 499 | |
Proceeds from borrowings | $ 500 | ||
Debt, Weighted Average Interest Rate | 5.92% | 5.55% | |
Commercial paper and short-term borrowings [Member] | |||
Credit Facilities [Abstract] | |||
Borrowings due within one year | $ 0 | $ 326 | |
2024 Term Loan | |||
Credit Facilities [Abstract] | |||
Long-term Debt | $ 300 | 0 | |
Debt, Weighted Average Interest Rate | 6.07% | ||
Proceeds from Issuance of Debt | $ 300 | ||
5.75% Notes Due March 2033 | |||
Credit Facilities [Abstract] | |||
Long-term Debt | 496 | 0 | |
Proceeds from borrowings | 500 | ||
Revolving Credit Facility [Member] | |||
Credit Facilities [Abstract] | |||
Line of Credit Facility, Maximum Borrowing Capacity | 1,500 | ||
Line of Credit Facility, Maximum Month-end Outstanding Amount | $ 0 | $ 0 |
BORROWINGS Part 3 (Details) Fai
BORROWINGS Part 3 (Details) Fair Value - Fair Value, Recurring [Member] - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Instrument, Fair Value Disclosure | $ 5,500 | $ 4,900 |
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 |
Fair Value, Inputs, Level 1 | ||
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, ¥ in Millions, MMBTU in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||
Mar. 31, 2023 EUR (€) MMBTU | Mar. 31, 2023 USD ($) | Mar. 31, 2022 USD ($) | Dec. 31, 2022 EUR (€) MMBTU | Dec. 31, 2022 USD ($) | Mar. 31, 2023 USD ($) MMBTU | Mar. 31, 2023 JPY (¥) MMBTU | Dec. 31, 2022 USD ($) MMBTU | Dec. 31, 2022 JPY (¥) MMBTU | Dec. 31, 2021 USD ($) | |
Derivative [Line Items] | ||||||||||
Unrealized Gains (Losses) on Derivative Instruments | $ (15) | $ (6) | $ (3) | |||||||
Unrealized gain (loss) during period | $ (9) | $ 53 | ||||||||
Foreign Exchange Contract [Member] | Euro Member Countries, Euro | Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Derivative, Notional Amount | € | € 515 | € 573 | ||||||||
Energy Related Derivative [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Derivative, Nonmonetary Notional Amount | MMBTU | 8 | 3 | 8 | 8 | 3 | 3 | ||||
Interest Rate Contract [Member] | Designated as Hedging Instrument [Member] | Fair Value Hedging [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Derivative, Notional Amount | $ 75 | $ 75 | ||||||||
1.50% Notes Due 2023 and 1.875% Notes Due 2026 [Member] | Euro Member Countries, Euro | Designated as Hedging Instrument [Member] | Net Investment Hedging [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Notional Amount of Nonderivative Instruments | € 1,247 | $ 1,400 | € 1,247 | $ 1,300 | ||||||
3.8% notes due March 2025 [Member] | Cross Currency Interest Rate Contract [Member] | United States of America, Dollars | Designated as Hedging Instrument [Member] | Net Investment Hedging [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Derivative, Notional Amount | 50 | |||||||||
3.8% notes due March 2025 [Member] | Cross Currency Interest Rate Contract [Member] | Japan, Yen | Designated as Hedging Instrument [Member] | Net Investment Hedging [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Derivative, Notional Amount | ¥ | ¥ 6,700 | |||||||||
Notes Due August 2022, Notes Due January 2024, Notes Due March 2025, Notes Due February 2027, and Notes Due December 2028 [Member] | Cross Currency Interest Rate Contract [Member] | Euro Member Countries, Euro | Designated as Hedging Instrument [Member] | Net Investment Hedging [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Derivative, Notional Amount | € | 870 | € 587 | ||||||||
Notes Due August 2022, Notes Due January 2024, Notes Due March 2025, Notes Due February 2027, and Notes Due December 2028 [Member] | Cross Currency Interest Rate Contract [Member] | Japan, Yen | Designated as Hedging Instrument [Member] | Net Investment Hedging [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Derivative, Notional Amount | ¥ | ¥ 6,723 | ¥ 0 | ||||||||
5.75% Notes Due March 2033 | Cross Currency Interest Rate Contract [Member] | Euro Member Countries, Euro | Designated as Hedging Instrument [Member] | Net Investment Hedging [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Derivative, Notional Amount | € | € 283 | |||||||||
5.75% Notes Due March 2033 | Cross Currency Interest Rate Contract [Member] | United States of America, Dollars | Designated as Hedging Instrument [Member] | Net Investment Hedging [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Derivative, Notional Amount | $ 300 |
DERIVATIVE AND NON-DERIVATIVE_4
DERIVATIVE AND NON-DERIVATIVE FINANCIAL INSTRUMENTS Part 2 (Details) € in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2023 EUR (€) | Mar. 31, 2023 USD ($) | Dec. 31, 2022 EUR (€) | Dec. 31, 2022 USD ($) | |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | ||||
Derivative Assets [Abstract] | ||||
Derivative Asset, Fair Value, Gross Asset | $ 64 | $ 76 | ||
Derivative Liabilities [Abstract] | ||||
Derivative Liability, Fair Value, Gross Liability | 28 | 20 | ||
Derivative, Fair Value, Net | 36 | 56 | ||
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 | 0 | 3 | ||
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 | 2 | 3 | ||
Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | Foreign Exchange Contract [Member] | Designated as Hedging Instrument [Member] | Other Current Liabilities [Member] | ||||
Derivative Liabilities [Abstract] | ||||
Cash Flow Hedge Derivative Instrument Liabilities at Fair Value | 10 | 8 | ||
Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | Foreign Exchange Contract [Member] | Designated as Hedging Instrument [Member] | Other Noncurrent Liabilities [Member] | ||||
Derivative Liabilities [Abstract] | ||||
Cash Flow Hedge Derivative Instrument Liabilities at Fair Value | 4 | 4 | ||
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 | 0 | 1 | ||
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 | 4 | 5 | ||
Fair Value, Inputs, Level 3 [Member] | Fair Value, Recurring [Member] | ||||
Derivative Assets [Abstract] | ||||
Derivative Asset, Fair Value, Gross Asset | 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 Noncurrent Assets [Member] | ||||
Derivative Assets [Abstract] | ||||
Derivative Instruments in Hedges, Net Investment in Foreign Operations, Assets, Fair Value | 64 | 72 | ||
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 Assets [Abstract] | ||||
Derivative Instruments in Hedges, Net Investment in Foreign Operations, Assets, Fair Value | 8 | 0 | ||
Net Investment Hedging [Member] | Euro Member Countries, Euro | 1.50% Notes Due 2023 and 1.875% Notes Due 2026 [Member] | Designated as Hedging Instrument [Member] | ||||
Non-Derivatives, Carrying Value [Abstract] | ||||
Notional Amount of Nonderivative Instruments | € 1,247 | 1,400 | € 1,247 | 1,300 |
Fair Value Hedging [Member] | Interest Rate Contract [Member] | Long-term Debt | ||||
Derivatives, Fair Value [Line Items] | ||||
Hedged Liability, Fair Value Hedge | 71 | 70 | ||
Derivative Liabilities [Abstract] | ||||
Hedged Liability, Fair Value Hedge, Cumulative Increase (Decrease) | $ (4) | $ (5) |
DERIVATIVE AND NON-DERIVATIVE_5
DERIVATIVE AND NON-DERIVATIVE FINANCIAL INSTRUMENTS Part 3 (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Sales | $ 2,412 | $ 2,714 | |
Cost of sales | 1,883 | 2,164 | |
Net interest expense | 52 | 46 | |
Other Comprehensive Income (Loss), Derivatives and Non-derivatives Qualifying as Hedges, before Tax [Abstract] | |||
Change in cumulative translation adjustment, before tax | (1) | 7 | |
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), after Reclassification and Tax | (9) | $ (3) | |
Summary of Derivative Instruments [Abstract] | |||
Accumulated Other Comprehensive Income Loss Unrealized Gain Loss From Hedges Before Tax | 79 | $ 134 | |
Price Risk Cash Flow Hedge Unrealized Gain to be Reclassified During Next 12 Months | (1) | ||
Commodity Contract [Member] | Cash Flow Hedging [Member] | |||
Other Comprehensive Income (Loss), Derivatives and Non-derivatives Qualifying as Hedges, before Tax [Abstract] | |||
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), after Reclassification and Tax | $ (3) | $ 24 | |
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 Instrument, Gain (Loss) Reclassified from AOCI into Income, Effective Portion, Statement of Income or Comprehensive Income [Extensible Enumeration] | Cost of sales | Cost of sales | |
Foreign Exchange Contract [Member] | Cash Flow Hedging [Member] | |||
Other Comprehensive Income (Loss), Derivatives and Non-derivatives Qualifying as Hedges, before Tax [Abstract] | |||
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), after Reclassification and Tax | $ (7) | $ 6 | |
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 Instrument, Gain (Loss) Reclassified from AOCI into Income, Effective Portion, Statement of Income or Comprehensive Income [Extensible Enumeration] | Sales | Sales | |
Interest Rate Swap [Member] | Cash Flow Hedging [Member] | |||
Other Comprehensive Income (Loss), Derivatives and Non-derivatives Qualifying as Hedges, before Tax [Abstract] | |||
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), after Reclassification and Tax | $ 1 | $ 5 | |
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 Instrument, Gain (Loss) Reclassified from AOCI into Income, Effective Portion, Statement of Income or Comprehensive Income [Extensible Enumeration] | Net interest expense | Net interest expense | |
Interest Rate Contract [Member] | Fair Value Hedging [Member] | |||
Other Comprehensive Income (Loss), Derivatives and Non-derivatives Qualifying as Hedges, before Tax [Abstract] | |||
Change in Unrealized Gain (Loss) on Hedged Item in Fair Value Hedge | $ 1 | $ 1 | |
Interest Rate Contract [Member] | Fair Value Hedging [Member] | Net Interest Expense | |||
Other Comprehensive Income (Loss), Derivatives and Non-derivatives Qualifying as Hedges, before Tax [Abstract] | |||
Gain (Loss) on Fair Value Hedges Recognized in Earnings | (1) | (1) | |
Foreign Exchange [Member] | Net Investment Hedging [Member] | |||
Other Comprehensive Income (Loss), Derivatives and Non-derivatives Qualifying as Hedges, before Tax [Abstract] | |||
Change in cumulative translation adjustment, before tax | (27) | 61 | |
Not Designated as Hedging Instrument [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | (5) | 0 | |
Cross Currency Interest Rate Contract [Member] | Net Investment Hedging [Member] | |||
Other Comprehensive Income (Loss), Derivatives and Non-derivatives Qualifying as Hedges, before Tax [Abstract] | |||
Change in cumulative translation adjustment, before tax | (17) | 23 | |
AOCI, Derivative Qualifying as Hedge, Excluded Component | $ 1 | $ (10) |
RETIREMENT PLANS (Details)
RETIREMENT PLANS (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Other Postretirement Benefits Plan [Member] | ||
Components of net periodic benefit cost [Abstract] | ||
Service cost | $ 0 | $ 0 |
Interest cost | 7 | 4 |
Expected return on assets | (1) | (1) |
Prior service credit, net | (7) | (8) |
Net periodic benefit (credit) cost | (1) | (5) |
Defined Benefit Plan, Expected Future Benefit Payment [Abstract] | ||
Remainder of 2023 | 35 | |
2024 | 47 | |
2025 | 47 | |
2026 | 46 | |
2027 | 45 | |
2028-2032 | 208 | |
UNITED STATES | Pension Plan [Member] | ||
Components of net periodic benefit cost [Abstract] | ||
Service cost | 6 | 6 |
Interest cost | 19 | 11 |
Expected return on assets | (22) | (32) |
Prior service credit, net | 0 | 0 |
Net periodic benefit (credit) cost | 3 | (15) |
Defined Benefit Plan, Expected Future Benefit Payment [Abstract] | ||
Remainder of 2023 | 100 | |
2024 | 135 | |
2025 | 134 | |
2026 | 131 | |
2027 | 136 | |
2028-2032 | 644 | |
Foreign Plan [Member] | Pension Plan [Member] | ||
Components of net periodic benefit cost [Abstract] | ||
Service cost | 2 | 4 |
Interest cost | 7 | 4 |
Expected return on assets | (6) | (9) |
Prior service credit, net | 0 | 0 |
Net periodic benefit (credit) cost | 3 | $ (1) |
Defined Benefit Plan, Expected Future Benefit Payment [Abstract] | ||
Remainder of 2023 | 21 | |
2024 | 26 | |
2025 | 28 | |
2026 | 31 | |
2027 | 35 | |
2028-2032 | $ 187 |
ENVIRONMENTAL MATTERS AND ASS_3
ENVIRONMENTAL MATTERS AND ASSET RETIREMENT OBLIGATIONS (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Accrual for Environmental Loss Contingencies [Roll Forward] | ||
Beginning of period | $ 274 | |
End of period | 275 | $ 274 |
Accrual for Environmental Loss Contingencies, Balance Sheet Classification [Abstract] | ||
Accrued Environmental Loss Contingencies, Current | 15 | 10 |
Accrued Environmental Loss Contingencies, Noncurrent | 260 | 264 |
Environmental Remediation [Member] | ||
Accrual for Environmental Loss Contingencies [Roll Forward] | ||
Beginning of period | 245 | 253 |
Changes in estimates recognized in earnings and other | 1 | 6 |
Cash reductions | (3) | (14) |
End of period | $ 243 | 245 |
Expected Payment Period of Environmental Contingencies | approximately 30 years | |
Environmental Remediation [Member] | Minimum [Member] | ||
Site Contingency [Line Items] | ||
Loss Contingency, Estimate of Possible Loss | $ 243 | 245 |
Environmental Remediation [Member] | Maximum [Member] | ||
Site Contingency [Line Items] | ||
Loss Contingency, Estimate of Possible Loss | 455 | 457 |
Environmental ARO [Member] | ||
Site Contingency [Line Items] | ||
Best Estimate Accrued to-date For Asset Retirement Obligation | 32 | 29 |
Non Environmental ARO [Member] | ||
Site Contingency [Line Items] | ||
Best Estimate Accrued to-date For Asset Retirement Obligation | $ 52 | $ 51 |
STOCKHOLDERS' EQUITY Part 1 (De
STOCKHOLDERS' EQUITY Part 1 (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | |
Stockholders' Equity Note [Abstract] | ||||
Dividends, Per Share | $ 0.79 | $ 0.76 | ||
Stockholders' Equity Attributable to Parent | $ 5,188 | $ 5,153 | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 5,262 | $ 5,977 | 5,236 | $ 5,788 |
Net earnings attributable to Eastman | 134 | 235 | ||
Net earnings attributable to noncontrolling interest | 0 | 1 | ||
Net earnings including noncontrolling interest | 134 | 236 | ||
Cash dividends declared | (94) | (98) | ||
Other Comprehensive Income (Loss) | (15) | 37 | (23) | |
Share-based Compensation Expense | 22 | 25 | ||
Stock Option Exercises | 2 | 8 | ||
Other | (11) | (19) | ||
Share Repurchases (4) | 0 | |||
Distributions to Noncontrolling Interest | (12) | |||
Common Stock [Member] | ||||
Stockholders' Equity Attributable to Parent | 2 | 2 | 2 | 2 |
Net earnings attributable to Eastman | 0 | 0 | ||
Cash dividends declared | 0 | 0 | ||
Other Comprehensive Income (Loss) | 0 | 0 | ||
Share-based Compensation Expense | 0 | 0 | ||
Stock Option Exercises | 0 | 0 | ||
Other | 0 | 0 | ||
Share Repurchases (4) | 0 | |||
Distributions to Noncontrolling Interest | 0 | |||
Additional Paid-in Capital [Member] | ||||
Stockholders' Equity Attributable to Parent | 2,325 | 2,262 | 2,315 | 2,187 |
Net earnings attributable to Eastman | 0 | 0 | ||
Cash dividends declared | 0 | 0 | ||
Other Comprehensive Income (Loss) | 0 | 0 | ||
Share-based Compensation Expense | 22 | 25 | ||
Stock Option Exercises | 2 | 8 | ||
Other | (14) | (18) | ||
Share Repurchases (4) | 60 | |||
Distributions to Noncontrolling Interest | 0 | |||
Retained Earnings [Member] | ||||
Stockholders' Equity Attributable to Parent | 9,013 | 8,694 | 8,973 | 8,557 |
Net earnings attributable to Eastman | 134 | 235 | ||
Cash dividends declared | (94) | (98) | ||
Other Comprehensive Income (Loss) | 0 | 0 | ||
Share-based Compensation Expense | 0 | 0 | ||
Stock Option Exercises | 0 | 0 | ||
Other | 0 | 0 | ||
Share Repurchases (4) | 0 | |||
Distributions to Noncontrolling Interest | 0 | |||
Accumulated Other Comprehensive Income (Loss) [Member] | ||||
Stockholders' Equity Attributable to Parent | (220) | (145) | (205) | (182) |
Net earnings attributable to Eastman | 0 | 0 | ||
Cash dividends declared | 0 | 0 | ||
Other Comprehensive Income (Loss) | (15) | 37 | ||
Share-based Compensation Expense | 0 | 0 | ||
Stock Option Exercises | 0 | 0 | ||
Other | 0 | 0 | ||
Share Repurchases (4) | 0 | |||
Distributions to Noncontrolling Interest | 0 | |||
Treasury Stock, Common | ||||
Stockholders' Equity Attributable to Parent | (5,932) | (4,920) | (5,932) | (4,860) |
Net earnings attributable to Eastman | 0 | 0 | ||
Cash dividends declared | 0 | 0 | ||
Other Comprehensive Income (Loss) | 0 | 0 | ||
Share-based Compensation Expense | 0 | 0 | ||
Stock Option Exercises | 0 | 0 | ||
Other | 0 | 0 | ||
Share Repurchases (4) | (60) | |||
Distributions to Noncontrolling Interest | 0 | |||
Parent [Member] | ||||
Stockholders' Equity Attributable to Parent | 5,188 | 5,893 | 5,153 | 5,704 |
Net earnings attributable to Eastman | 134 | 235 | ||
Cash dividends declared | (94) | (98) | ||
Other Comprehensive Income (Loss) | (15) | 37 | ||
Share-based Compensation Expense | 22 | 25 | ||
Stock Option Exercises | 2 | 8 | ||
Other | (14) | (18) | ||
Share Repurchases (4) | 0 | |||
Distributions to Noncontrolling Interest | 0 | |||
Noncontrolling Interest [Member] | ||||
Stockholders' Equity Attributable to Parent | 74 | 84 | $ 83 | $ 84 |
Net earnings attributable to noncontrolling interest | 0 | 1 | ||
Cash dividends declared | 0 | 0 | ||
Other Comprehensive Income (Loss) | 0 | 0 | ||
Share-based Compensation Expense | 0 | 0 | ||
Stock Option Exercises | 0 | 0 | ||
Other | 3 | (1) | ||
Share Repurchases (4) | $ 0 | |||
Distributions to Noncontrolling Interest | $ (12) |
STOCKHOLDERS' EQUITY Part 2 AOC
STOCKHOLDERS' EQUITY Part 2 AOCI (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Cumulative Translation Adjustment | $ (231) | $ (230) | $ (237) | |
Change in cumulative translation adjustment | (1) | $ 7 | 7 | |
Benefit Plans Unrecognized Prior Service Credits | 27 | 32 | 59 | |
Change in Benefit Plans Unrecognized Prior Service Credits | (5) | (27) | ||
Unrealized Gains (Losses) on Derivative Instruments | (15) | (6) | (3) | |
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), after Reclassification and Tax | (9) | (3) | ||
Unrealized Losses on Investments | (1) | (1) | (1) | |
Change in Unrealized Losses on Investments | 0 | 0 | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (220) | (205) | $ (182) | |
Other Comprehensive Income (Loss) | $ (15) | $ 37 | $ (23) |
STOCKHOLDERS' EQUITY Part 3 OCI
STOCKHOLDERS' EQUITY Part 3 OCI (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Other Comprehensive Income (Loss), before Tax [Abstract] | |||
Change in cumulative translation adjustment, before tax | $ (1) | $ 7 | |
Amortization of unrecognized prior service credits | (7) | (8) | |
Unrealized gain (loss) during period | (9) | 53 | |
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification, before Tax | (3) | (5) | |
Total other comprehensive income (loss), before tax | (20) | 47 | |
Other comprehensive income (loss), net of tax: | |||
Change in cumulative translation adjustment | (1) | 7 | $ 7 |
Amortization of unrecognized prior service credits | (5) | (6) | |
Unrealized gain (loss) during period | (7) | 40 | |
Reclassification adjustment for (gains) losses included in net income, net | (2) | (4) | |
Other Comprehensive Income (Loss) | $ (15) | $ 37 | $ (23) |
EARNINGS AND DIVIDENDS PER SH_3
EARNINGS AND DIVIDENDS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Earnings Per Share [Abstract] | ||
Net earnings attributable to Eastman | $ 134 | $ 235 |
Weighted average shares used for basic EPS (in shares) | 118,900,000 | 129,000,000 |
Dilutive effect of stock options and other awards | 800,000 | 1,700,000 |
Weighted average shares used for diluted EPS (in shares) | 119,700,000 | 130,700,000 |
Earnings Per Share, Basic | $ 1.13 | $ 1.82 |
Earnings Per Share, Diluted | $ 1.12 | $ 1.80 |
Underlying options excluded from the computation of diluted earnings per share (in shares) | 1,879,459 | 507,692 |
Shares repurchased (in shares) | 0 | 548,035 |
Cash dividends declared (per share) | $ 0.79 | $ 0.76 |
ASSETS IMPAIRMENTS AND RESTRU_3
ASSETS IMPAIRMENTS AND RESTRUCTURING (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Restructuring Cost and Reserve [Line Items] | |||
Severance Costs | $ 16 | $ 0 | |
Business Exit Costs | 6 | 2 | |
Restructuring, Settlement and Impairment Provisions | 22 | 2 | |
Restructuring Charge [Roll Forward] | |||
Balance at Beginning of Period | 52 | 17 | $ 17 |
Provision / Adjustments | 22 | 52 | |
Restructuring Reserve, Accrual Adjustment | 0 | (1) | |
Cash Reductions | (42) | (18) | |
Balance at End of Period | 32 | 52 | |
Facility Closing [Member] | |||
Restructuring Charge [Roll Forward] | |||
Balance at Beginning of Period | 18 | 5 | 5 |
Provision / Adjustments | 6 | 21 | |
Restructuring Reserve, Accrual Adjustment | 0 | 1 | |
Cash Reductions | (22) | (9) | |
Balance at End of Period | 2 | 18 | |
Employee Severance [Member] | |||
Restructuring Charge [Roll Forward] | |||
Balance at Beginning of Period | 34 | 12 | 12 |
Provision / Adjustments | 16 | 31 | |
Restructuring Reserve, Accrual Adjustment | 0 | 0 | |
Cash Reductions | (20) | (9) | |
Balance at End of Period | 30 | $ 34 | |
Site Closure Singapore 2019 [Member] | Chemical Intermediates [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Business Exit Costs | 1 | ||
Site Closure Advanced Interlayers North America 2020 | Advanced Materials [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Business Exit Costs | $ 1 | ||
Site Closure Acetate Yarn Europe | Fibers [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and Related Cost, Accelerated Depreciation | $ 23 |
Share Based Compensation Awar_3
Share Based Compensation Awards (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-Based Compensation Arrangements by Share-Based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $ 83.84 | $ 120.80 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 21.67 | $ 28.07 |
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount | $ 4 | |
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition | 3 years | |
Share-based Payment Arrangement, Expense | $ 22 | $ 25 |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate | 30.55% | 28.69% |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate | 3.31% | 2.46% |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | 4.13% | 1.93% |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | 6 years 4 months 24 days | 6 years 4 months 24 days |
Share-based Payment Arrangement, Expense, after Tax | $ 16 | $ 19 |
Share-based Payment Arrangement, Option | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 399 | 362 |
Share-based Payment Arrangement, Expense | $ 7 | $ 8 |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | |
Share-based Payment Arrangement | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount | $ 117 | |
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition | 3 years | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 407 | 288 |
Share-based Payment Arrangement, Expense | $ 15 | $ 17 |
Restricted Stock Units (RSUs) [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 108 | 71 |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | |
Qualifying Termination Eligibility Preceding Requisite Service Period [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Payment Arrangement, Expense | $ 6 | $ 7 |
SEGMENT AND REGIONAL SALES IN_3
SEGMENT AND REGIONAL SALES INFORMATION (Details) $ in Millions | 3 Months Ended | ||
Mar. 31, 2023 USD ($) Segment | Mar. 31, 2022 USD ($) | Dec. 31, 2022 USD ($) | |
Segment Reporting Information [Line Items] | |||
Number of Operating Segments | Segment | 4 | ||
Sales [Abstract] | |||
Sales | $ 2,412 | $ 2,714 | |
Earnings (Loss) Before Interest and Taxes [Abstract] | |||
Earnings before interest and taxes | 246 | 333 | |
Segment Reporting Information, Additional Information [Abstract] | |||
Assets by Segment | 14,983 | $ 14,667 | |
Operating Segments [Member] | |||
Sales [Abstract] | |||
Sales | 2,411 | 2,554 | |
Earnings (Loss) Before Interest and Taxes [Abstract] | |||
Earnings before interest and taxes | 317 | 364 | |
Corporate, Non-Segment [Member] | |||
Sales [Abstract] | |||
Sales | 1 | 160 | |
Corporate, Non-Segment [Member] | Growth Initiatives and Businesses not Allocated to Segments [Member] | |||
Earnings (Loss) Before Interest and Taxes [Abstract] | |||
Earnings before interest and taxes | (51) | (32) | |
Corporate, Non-Segment [Member] | Pension and OPEB Costs Not Allocated to Operating Segments [Member] | |||
Earnings (Loss) Before Interest and Taxes [Abstract] | |||
Earnings before interest and taxes | (4) | 23 | |
Corporate, Non-Segment [Member] | Other Nonoperating Income (Expense) [Member] | |||
Earnings (Loss) Before Interest and Taxes [Abstract] | |||
Earnings before interest and taxes | (8) | 9 | |
Corporate, Non-Segment [Member] | Transaction costs and Gain/Loss on Business | |||
Earnings (Loss) Before Interest and Taxes [Abstract] | |||
Earnings before interest and taxes | 0 | (6) | |
Corporate, Non-Segment [Member] | Steam Line Incident | |||
Earnings (Loss) Before Interest and Taxes [Abstract] | |||
Earnings before interest and taxes | 8 | (25) | |
Corporate, Non-Segment [Member] | Asset impairments and restructuring charges, net | |||
Earnings (Loss) Before Interest and Taxes [Abstract] | |||
Earnings before interest and taxes | (16) | 0 | |
Corporate, Non-Segment [Member] | Divested businesses | |||
Earnings (Loss) Before Interest and Taxes [Abstract] | |||
Earnings before interest and taxes | 6 | ||
Additives And Functional Products [Member] | |||
Earnings (Loss) Before Interest and Taxes [Abstract] | |||
Earnings before interest and taxes | 124 | 167 | |
Additives And Functional Products [Member] | Operating Segments [Member] | |||
Sales [Abstract] | |||
Sales | 777 | 889 | |
Advanced Materials [Member] | |||
Earnings (Loss) Before Interest and Taxes [Abstract] | |||
Earnings before interest and taxes | 86 | 61 | |
Advanced Materials [Member] | Operating Segments [Member] | |||
Sales [Abstract] | |||
Sales | 742 | 737 | |
Chemical Intermediates [Member] | |||
Earnings (Loss) Before Interest and Taxes [Abstract] | |||
Earnings before interest and taxes | 42 | 112 | |
Chemical Intermediates [Member] | Operating Segments [Member] | |||
Sales [Abstract] | |||
Sales | 589 | 715 | |
Fibers [Member] | |||
Earnings (Loss) Before Interest and Taxes [Abstract] | |||
Earnings before interest and taxes | 65 | 24 | |
Fibers [Member] | Operating Segments [Member] | |||
Sales [Abstract] | |||
Sales | $ 303 | $ 213 |