Cover Page
Cover Page | 6 Months Ended |
Jun. 30, 2024 shares | |
Entity Information [Line Items] | |
Document Type | 10-Q |
Document Quarterly Report | true |
Document Period End Date | Jun. 30, 2024 |
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 | 116,860,402 |
Entity Central Index Key | 0000915389 |
Amendment Flag | false |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Year Focus | 2024 |
Document Fiscal Period Focus | Q2 |
Common Stock [Member] | |
Entity Information [Line Items] | |
Title of 12(b) Security | Common Stock, par value $0.01 per share |
Trading Symbol | EMN |
Security Exchange Name | NYSE |
1.875% notes due November 2026 [Member] | |
Entity Information [Line Items] | |
Title of 12(b) Security | 1.875% Notes Due 2026 |
Trading Symbol | EMN26 |
Security Exchange Name | NYSE |
UNAUDITED CONSOLIDATED STATEMEN
UNAUDITED CONSOLIDATED STATEMENTS OF EARNINGS, COMPREHENSIVE INCOME AND RETAINED EARNINGS - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Income Statement [Abstract] | ||||
Sales | $ 2,363 | $ 2,324 | $ 4,673 | $ 4,736 |
Cost of sales | 1,764 | 1,740 | 3,542 | 3,623 |
Gross profit | 599 | 584 | 1,131 | 1,113 |
Selling, general and administrative expenses | 180 | 185 | 371 | 376 |
Research and development expenses | 60 | 60 | 119 | 122 |
Asset impairments and restructuring charges, net | 0 | 0 | 11 | 22 |
Other components of post-employment (benefit) cost, net | (4) | (3) | (9) | (6) |
Other (income) charges, net | 26 | 19 | 39 | 30 |
Earnings before interest and taxes | 337 | 323 | 600 | 569 |
Net interest expense | 50 | 54 | 99 | 106 |
Earnings before income taxes | 287 | 269 | 501 | 463 |
Provision for (benefit from) income taxes | 56 | (3) | 105 | 57 |
Net earnings | 231 | 272 | 396 | 406 |
Less: Net earnings attributable to noncontrolling interest | 1 | 0 | 1 | 0 |
Net earnings attributable to Eastman | $ 230 | $ 272 | $ 395 | $ 406 |
Earnings Per Share, Basic [Abstract] | ||||
Basic earnings per share attributable to Eastman | $ 1.96 | $ 2.28 | $ 3.37 | $ 3.41 |
Diluted earnings per share attributable to Eastman | ||||
Diluted earnings per share attributable to Eastman | $ 1.94 | $ 2.27 | $ 3.33 | $ 3.39 |
Comprehensive Income | ||||
Net earnings including noncontrolling interest | $ 231 | $ 272 | $ 396 | $ 406 |
Other comprehensive income (loss), net of tax: | ||||
Change in cumulative translation adjustment | 9 | (42) | (1) | (43) |
Defined benefit pension and other postretirement benefit plans: | ||||
Amortization of unrecognized prior service credits | (2) | (5) | (4) | (10) |
Derivatives and hedging: | ||||
Unrealized gain (loss) during period | 3 | (5) | 7 | (12) |
Reclassification adjustment for (gains) losses included in net income, net | 16 | 1 | 15 | (1) |
Total other comprehensive income (loss), net of tax | 26 | (51) | 17 | (66) |
Comprehensive income including noncontrolling interest | 257 | 221 | 413 | 340 |
Less: Net earnings attributable to noncontrolling interest | 1 | 0 | 1 | 0 |
Comprehensive income attributable to Eastman | 256 | 221 | 412 | 340 |
Retained Earnings | ||||
Retained earnings at beginning of period | 9,559 | 9,013 | 9,490 | 8,973 |
Net earnings attributable to Eastman | 230 | 272 | 395 | 406 |
Cash dividends declared | (95) | (95) | (191) | (189) |
Retained earnings at end of period | $ 9,694 | $ 9,190 | $ 9,694 | $ 9,190 |
UNAUDITED CONSOLIDATED STATEM_2
UNAUDITED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Current assets | ||
Cash and cash equivalents | $ 514 | $ 548 |
Trade receivables, net of allowance for credit losses | 957 | 826 |
Miscellaneous receivables | 372 | 328 |
Inventories | 1,900 | 1,683 |
Other current assets | 99 | 96 |
Total current assets | 3,842 | 3,481 |
Properties | ||
Properties and equipment at cost | 13,717 | 13,574 |
Less: Accumulated depreciation | 8,188 | 8,026 |
Net properties | 5,529 | 5,548 |
Goodwill | 3,641 | 3,646 |
Intangible assets, net of accumulated amortization | 1,086 | 1,138 |
Other noncurrent assets | 847 | 820 |
Total assets | 14,945 | 14,633 |
Current liabilities | ||
Payables and other current liabilities | 2,044 | 2,035 |
Borrowings due within one year | 697 | 541 |
Total current liabilities | 2,741 | 2,576 |
Long-term borrowings | 4,336 | 4,305 |
Deferred income tax liabilities | 576 | 601 |
Post-employment obligations | 655 | 667 |
Other long-term liabilities | 938 | 954 |
Total liabilities | 9,246 | 9,103 |
Stockholders' equity | ||
Common stock ($0.01 par value – 350,000,000 shares authorized; shares issued – 223,278,963 and 222,762,317 as of June 30, 2024 and December 31, 2023, respectively) | 2 | 2 |
Additional paid-in capital | 2,417 | 2,368 |
Retained earnings | 9,694 | 9,490 |
Accumulated other comprehensive income (loss) | (302) | (319) |
Stockholder's Equity before Treasury Stock | 11,811 | 11,541 |
Less: Treasury stock at cost (106,469,359 and 105,469,354 shares as of June 30, 2024 and December 31, 2023, respectively) | 6,184 | 6,083 |
Total Eastman stockholders' equity | 5,627 | 5,458 |
Noncontrolling interest | 72 | 72 |
Total equity | 5,699 | 5,530 |
Total liabilities and stockholders' equity | $ 14,945 | $ 14,633 |
Common stock, par value (in dollars per share) | $ 0.01 | |
Common stock, shares authorized (in shares) | 350,000,000 | |
Common stock, shares issued (in shares) | 223,278,963 | 222,762,317 |
Treasury stock at cost (in shares) | 106,469,359 | 105,469,354 |
UNAUDITED CONSOLIDATED STATEM_3
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Operating activities | ||
Net earnings | $ 396 | $ 406 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | ||
Depreciation and amortization | 253 | 260 |
Benefit from deferred income taxes | (37) | (93) |
Changes in operating assets and liabilities, net of effect of acquisitions and divestitures: | ||
(Increase) decrease in trade receivables | (138) | 33 |
(Increase) decrease in inventories | (238) | (73) |
Increase (decrease) in trade payables | 89 | (290) |
Pension and other postretirement contributions (in excess of) less than expenses | (29) | (29) |
Variable compensation payments (in excess of) less than expenses | (20) | 49 |
Other items, net | 75 | 145 |
Net cash provided by operating activities | 351 | 408 |
Investing activities | ||
Additions to properties and equipment | (300) | (413) |
Proceeds from sale of businesses | 0 | 16 |
Acquisition, net of cash acquired | 0 | (76) |
Additions to capitalized software | (3) | (4) |
Other items, net | 3 | (21) |
Net cash used in investing activities | (300) | (498) |
Financing activities | ||
Net increase in commercial paper and other borrowings | 0 | 277 |
Proceeds from borrowings | 742 | 796 |
Repayment of borrowings | (541) | (808) |
Dividends paid to stockholders | (190) | (188) |
Treasury stock purchases | (100) | (50) |
Other items, net | 10 | (23) |
Net cash (used in) provided by financing activities | (79) | 4 |
Effect of exchange rate changes on cash and cash equivalents | (6) | 3 |
Net change in cash and cash equivalents | (34) | (83) |
Cash and cash equivalents at beginning of period | 548 | 493 |
Cash and cash equivalents at end of period | $ 514 | $ 410 |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES (Notes) | 6 Months Ended |
Jun. 30, 2024 | |
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 2023 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, 2023 financial position data included herein was derived from the consolidated financial statements included in the 2023 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 presentation 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. Recently Adopted Accounting Standards Accounting Standards Update ("ASU") 2022-03 Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions : On January 1, 2024, Eastman adopted this update, 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. The adoption did not have a significant impact on the Company's financial statements and related disclosures. Accounting Standards Issued But Not Adopted as of June 30, 2024 ASU 2023-05 Business Combination - Joint Venture Formations (Subtopic 805-60): Recognition and Initial Measurement : The Financial Accounting Standards Board ("FASB") issued this update in August 2023, which states that a joint venture must initially measure all contributions received upon its formation at fair value, largely consistent with Topic 805, Business Combinations. The guidance is intended to reduce diversity in practice and provide users of joint venture financial statements with more decision-useful information. This ASU should be applied prospectively and is effective for all newly formed joint venture entities with a formation date on or after January 1, 2025. Early adoption is permitted, and joint ventures formed prior to the adoption date may elect to apply the new guidance retrospectively back to their original formation date. Management is currently evaluating the impact on the Company's financial statements and related disclosures. ASU 2023-07 Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures : The FASB issued this update in November 2023, which requires enhanced disclosures regarding significant segment expenses and other segment items for public entities on both an annual and interim basis. Specifically, the update requires that entities provide, during interim periods, all disclosures related to a reportable segment's profit or loss and assets that were previously required only on an annual basis. Additionally, this guidance necessitates the disclosure of the title and position of the Chief Operating Decision Maker ("CODM"). The new guidance does not modify how a public entity identifies its operating segments, aggregates them, or applies the quantitative thresholds to determine its reportable segments. This update is effective for fiscal years beginning after December 15, 2023, and interim periods within those fiscal years starting after December 15, 2024. This ASU must be applied retrospectively to all prior periods presented. Management is currently evaluating the impact on the Company's financial statements and related disclosures. ASU 2023-09 Income Taxes (Topic 740): Improvements to Income Tax Disclosures : The FASB issued this update in December 2023, which modifies income tax disclosure requirements. The updated guidance requires entities to provide more detailed information including specific categories in the income tax rate reconciliation, and the breakdown of income or loss from continuing operations before income tax expense or benefit, for both domestic and foreign operations. Additionally, entities must disclose income tax expense or benefit from continuing operations, categorized by federal, state, and foreign taxes. The guidance further requires disclosure of income tax payments to various jurisdictions. This ASU is effective for fiscal periods beginning after December 15, 2024, and early adoption is permitted. This ASU should be applied on a prospective basis, although retrospective application is permitted. Management is currently evaluating the impact on the Company's financial statements and related disclosures. Working Capital Management and Off Balance Sheet Arrangements The Company has off balance sheet, uncommitted accounts receivable factoring programs under which entire invoices may be sold to third-party financial institutions. The vast majority of these programs are without recourse. Under these programs, 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 programs, 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 programs 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 second quarter 2024 and 2023 were $650 million and $753 million, respectively, and $1.3 billion and $1.4 billion in first six months 2024 and 2023, 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 $67 million and $69 million at June 30, 2024 and December 31, 2023, respectively, are included in "Payables and other current liabilities" on the Unaudited Consolidated Statements of Financial Position. |
INVENTORIES
INVENTORIES | 6 Months Ended |
Jun. 30, 2024 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | INVENTORIES June 30, December 31, (Dollars in millions) 2024 2023 Finished goods $ 1,352 $ 1,193 Work in process 298 293 Raw materials and supplies 671 618 Total inventories at FIFO or average cost 2,321 2,104 Less: LIFO reserve 421 421 Total inventories $ 1,900 $ 1,683 Inventories valued on the last-in, first-out ("LIFO") method were approximately 50 percent of total inventories at both June 30, 2024 and December 31, 2023. |
INCOME TAXES
INCOME TAXES | 6 Months Ended |
Jun. 30, 2024 | |
Income Tax Disclosure [Abstract] | |
PROVISION FOR INCOME TAXES | INCOME TAXES Second Quarter First Six Months (Dollars in millions) 2024 2023 2024 2023 $ % $ % $ % $ % Provision for (benefit from) income taxes and tax rate $ 56 20 % $ (3) (1) % $ 105 21 % $ 57 12 % Second quarter and first six months 2024 provision for income taxes includes a decrease due to the Company's mix of earnings, partially offset by an increase related to uncertain tax positions. Second quarter and first six months 2023 provision for income taxes includes a $51 million decrease due to state tax law changes that were enacted in second quarter 2023 that extended the carryforward period to utilize existing state tax credits. Additionally, first six months 2023 provision for income taxes includes a $23 million increase as a result of state guidance issued in first quarter 2023 interpreting certain provisions of the 2017 Tax Cuts and Jobs Act (the "Tax Reform Act"). At June 30, 2024 and December 31, 2023, Eastman had $345 million and $320 million, respectively, in unrecognized tax benefits. At June 30, 2024, it is reasonably possible that, as a result of the resolution of federal, state, and foreign examinations and appeals, and the expiration of various statutes of limitation, the total amounts of unrecognized tax benefits could decrease by up to $140 million within the next 12 months. |
BORROWINGS
BORROWINGS | 6 Months Ended |
Jun. 30, 2024 | |
Debt Disclosure [Abstract] | |
Debt Disclosure [Text Block] | BORROWINGS June 30, December 31, (Dollars in millions) 2024 2023 Borrowings consisted of: 7.25% debentures due January 2024 $ — $ 198 7.625% debentures due June 2024 — 43 3.80% notes due March 2025 697 696 1.875% notes due November 2026 (1) 533 550 7.60% debentures due February 2027 196 196 4.5% notes due December 2028 496 495 5.75% notes due March 2033 (2) 496 496 5.625% notes due February 2034 743 — 4.8% notes due September 2042 495 495 4.65% notes due October 2044 878 878 2024 Term Loan — 300 2027 Term Loan 499 499 Total borrowings 5,033 4,846 Less: Borrowings due within one year 697 541 Long-term borrowings $ 4,336 $ 4,305 (1) The carrying value of the euro-denominated 1.875% notes due November 2026 fluctuates with changes in the euro to U.S. dollar exchange rate. The carrying value of this euro-denominated borrowing has been designated as a non-derivative net investment hedge 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 were used to finance or refinance eligible green investment initiatives, which contribute to Eastman's environmental sustainability strategy (a green bond). In second quarter 2024, the Company repaid the $43 million 7.625% debentures due June 2024. There were no debt extinguishment costs associated with the repayment. This redemption is reported under financing activities on the Unaudited Consolidated Statements of Cash Flows. In first quarter 2024, the Company issued $750 million aggregate principal amount of 5.625% notes due February 2034 (the "2034 Notes"). Proceeds from the sale of the 2034 Notes, net of original issue discounts and issuance costs, were $742 million. The Company also repaid the $198 million 7.25% debentures due January 2024 during first quarter 2024. There were no debt extinguishment costs associated with the repayment. Both the proceeds from the 2034 Notes and the redemption of the debentures are reported under financing activities on the Unaudited Consolidated Statements of Cash Flows. Credit Facility, Term Loans, and Commercial Paper Borrowings The Company has access to a $1.50 billion revolving credit agreement (the "Credit Facility"). In February 2024, the Credit Facility was amended to extend the maturity to February 2029. 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 June 30, 2024 and December 31, 2023, the Company had no outstanding borrowings under the Credit Facility and no commercial paper borrowings. In first quarter 2024, the Company repaid the $300 million delayed draw two-year term loan (the "2024 Term Loan"). There were no extinguishment costs associated with the repayment of this term loan. The outstanding balance on the $500 million term loan that matures in 2027 (the "2027 Term Loan") was $499 million at both June 30, 2024 and December 31, 2023, with variable interest rates of 6.57% and 6.58%, respectively. The 2027 Term Loan is subject to interest at varying spreads above quoted market rates. The Credit Facility 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 June 30, 2024 and December 31, 2023. Fair Value of Borrowings Eastman has classified its total borrowings at June 30, 2024 and December 31, 2023 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 2023 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 2027 Term Loan equals the carrying value and is classified as Level 2. The Company's fair value of total borrowings was $4.8 billion and $4.7 billion at June 30, 2024 and December 31, 2023, respectively. The Company had no borrowings classified as Level 1 or Level 3 as of June 30, 2024 and December 31, 2023. |
DERIVATIVE AND NON-DERIVATIVE F
DERIVATIVE AND NON-DERIVATIVE FINANCIAL INSTRUMENTS | 6 Months Ended |
Jun. 30, 2024 | |
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, raw material and energy 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 the Company's 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 2023 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. Eastman enters into fixed-to-fixed cross-currency swaps and designates these swaps to hedge a portion of its net investment in a non-U.S. dollar functional currency denominated subsidiary against foreign currency fluctuations. These contracts involve the exchange of fixed U.S. dollars with fixed foreign currency interest payments periodically over the life of the contracts and an exchange of the notional amounts at maturity. In first quarter 2024, in conjunction with the repayment of the 7.25% debentures due January 2024, the Company terminated fixed-to-fixed cross-currency swaps of $190 million (€165 million) maturing January 2024. The termination of the cross-currency swap resulted in a $9 million gain recognized in CTA. The related cash flows were classified as investing activities in the Unaudited Consolidated Statements of Cash Flows. Additionally, in first quarter 2024, Eastman entered into fixed-to-fixed cross-currency swaps of $50 million (€46 million) maturing December 2028, $200 million (€184 million) maturing September 2029, and $250 million (€230 million) maturing February 2034. Summary of Financial Position and Financial Performance of Hedging Ins truments The following table presents the notional amounts outstanding at June 30, 2024 and December 31, 2023 associated with Eastman's hedging programs. Notional Outstanding June 30, 2024 December 31, 2023 Derivatives designated as cash flow hedges: Foreign Exchange Forward and Option Contracts (in millions) EUR/USD (in EUR) €399 €405 Commodity Forward and Collar Contracts Energy (in million british thermal units) 15 11 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) €1,648 €1,354 JPY/USD (in JPY) ¥7,385 ¥7,385 Non-derivatives designated as net investment hedges: Foreign Currency Net Investment Hedges (in millions) EUR/USD (in EUR) €498 €498 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 June 30, 2024 and December 31, 2023. 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 second quarter and first six months 2024 or 2023. 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 June 30, 2024 and December 31, 2023. The Financial Position and Fair Value Measurements of Hedging Instruments on a Gross Basis (Dollars in millions) Derivative Type Statements of Financial Level 2 June 30, 2024 December 31, 2023 Derivatives designated as cash flow hedges: Foreign exchange contracts Other current assets $ 4 $ — Foreign exchange contracts Other noncurrent assets 1 — Derivatives designated as fair value hedges: Fixed-for-floating interest rate swap Other current assets 1 1 Derivatives designated as net investment hedges: Cross-currency interest rate swaps Other current assets 15 8 Cross-currency interest rate swaps Other noncurrent assets 32 18 Total Derivative Assets $ 53 $ 27 Derivatives designated as cash flow hedges: Commodity contracts Payables and other current liabilities $ 2 $ 19 Foreign exchange contracts Payables and other current liabilities 1 8 Foreign exchange contracts Other long-term liabilities — 2 Derivatives designated as fair value hedges: Fixed-for-floating interest rate swap Payables and other current liabilities 2 — Fixed-for-floating interest rate swap Long-term borrowings — 3 Derivatives designated as net investment hedges: Cross-currency interest rate swaps Payables and other current liabilities 4 — Cross-currency interest rate swaps Other long-term liabilities 30 61 Total Derivative Liabilities $ 39 $ 93 Total Net Derivative Assets (Liabilities) $ 14 $ (66) 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 $533 million at June 30, 2024 and $550 million at December 31, 2023. 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 2023 Annual Report on Form 10-K . As of June 30, 2024 and December 31, 2023, 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 June 30, 2024 December 31, 2023 June 30, 2024 December 31, 2023 Borrowings due within one year $ 73 $ — $ (2) $ — Long-term borrowings — 72 — (3) 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 second quarter and first six months 2024 and 2023. 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) Second Quarter First Six Months Second Quarter First Six Months Hedging Relationships 2024 2023 2024 2023 2024 2023 2024 2023 Derivatives in cash flow hedging relationships: Commodity contracts $ 17 $ (1) $ 13 $ (4) $ (23) $ (2) $ (23) $ (3) Foreign exchange contracts 1 (3) 8 (10) 3 2 5 7 Forward starting interest rate and treasury lock swap contracts 1 — 1 1 — (1) (1) (2) Non-derivatives in net investment hedging relationships (pre-tax): Net investment hedges 5 4 17 (23) — — — — Derivatives in net investment hedging relationships (pre-tax): Cross-currency interest rate swaps 16 (3) 55 (20) — — — — Cross-currency interest rate swaps excluded component 12 (18) 2 (17) — — — — 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 second quarter and first six months 2024 and 2023. Location and Amount of Gain or (Loss) Recognized in Earnings from Fair Value and Cash Flow Hedging Relationships Second Quarter 2024 2023 (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 $ 2,363 $ 1,764 $ 50 $ 2,324 $ 1,740 $ 54 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) Commodity Contracts: Amount reclassified from AOCI into earnings (23) (2) Foreign Exchange Contracts: Amount reclassified from AOCI into earnings 3 2 Location and Amount of Gain or (Loss) Recognized in Earnings from Fair Value and Cash Flow Hedging Relationships First Six Months 2024 2023 (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 $ 4,673 $ 3,542 $ 99 $ 4,736 $ 3,623 $ 106 The effects of fair value and cash flow hedging: Gain or (loss) on fair value hedging relationships: Interest contracts (fixed-for-floating interest rate swaps): Hedged items 2 2 Derivatives designated as hedging instruments (2) (2) 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 (23) (3) Foreign Exchange Contracts: Amount reclassified from AOCI into earnings 5 7 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 gain of $2 million and a net loss of $3 million during second quarter and first six months 2024, respectively, and recognized a net loss of $1 million and $6 million during second quarter and first six months 2023, respectively. 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 resulted in a net gain of $99 million and a net loss of $4 million at June 30, 2024 and December 31, 2023, respectively. Gains in AOCI increased between December 31, 2023 and June 30, 2024 primarily as a result of a decrease in euro to U.S. dollar exchange rates. If recognized, approximately $1 million in pre-tax gains as of June 30, 2024, 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 | 6 Months Ended |
Jun. 30, 2024 | |
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 2023 Annual Report on Form 10-K . Components of net periodic benefit (credit) cost were as follows: Second Quarter Pension Plans Other Postretirement Benefit Plans 2024 2023 2024 2023 (Dollars in millions) U.S. Non-U.S. U.S. Non-U.S. Service cost $ 6 $ 2 $ 5 $ 2 $ — $ — Interest cost 19 6 20 7 6 6 Expected return on assets (24) (7) (22) (7) (2) (1) Amortization of: Prior service credit, net — — — — (2) (6) Net periodic benefit (credit) cost $ 1 $ 1 $ 3 $ 2 $ 2 $ (1) First Six Months Pension Plans Other Postretirement Benefit Plans 2024 2023 2024 2023 (Dollars in millions) U.S. Non-U.S. U.S. Non-U.S. Service cost $ 11 $ 4 $ 11 $ 4 $ — $ — Interest cost 37 12 39 14 12 13 Expected return on assets (48) (14) (44) (13) (3) (2) Amortization of: Prior service credit, net — — — — (5) (13) Net periodic benefit (credit) cost $ — $ 2 $ 6 $ 5 $ 4 $ (2) |
Other Commitments
Other Commitments | 6 Months Ended |
Jun. 30, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments Disclosure [Text Block] | OTHER COMMITMENTS Eastman has commitments consisting of debt securities, credit facilities, term loans, interest payable, purchase obligations, operating leases, and other liabilities. In first quarter 2024, purchase obligations in the 2029 and beyond period decreased by approximately $1.5 billion as a result of exiting an agreement with a supplier after contract negotiations. Eastman had remaining debt and other commitments at June 30, 2024 totaling approximately $10.5 billion over a period of approximately 30 years. Other than the purchase obligations discussed above, there have been no material changes to the Company's commitments from those disclosed in Note 12, "Leases and Other Commitments", to the consolidated financial statements in Part II, Item 8 of the Company's 2023 Annual Report on Form 10-K . |
ENVIRONMENTAL MATTERS AND ASSET
ENVIRONMENTAL MATTERS AND ASSET RETIREMENT OBLIGATIONS | 6 Months Ended |
Jun. 30, 2024 | |
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 2023 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) June 30, 2024 December 31, 2023 Environmental contingencies, current $ 15 $ 10 Environmental contingencies, long-term 273 274 Total $ 288 $ 284 Environmental Remediation Estimated future environmental expenditures for undiscounted remediation costs ranged from the best estimate or minimum of $257 million to the maximum of $503 million and from the best estimate or minimum of $252 million to the maximum of $497 million at June 30, 2024 and December 31, 2023, 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 six months 2024 and full year 2023 are summarized below: (Dollars in millions) Environmental Remediation Liabilities Balance at December 31, 2022 $ 245 Changes in estimates recognized in earnings and other 19 Cash reductions (12) Balance at December 31, 2023 252 Changes in estimates recognized in earnings and other 11 Cash reductions (6) Balance at June 30, 2024 $ 257 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 $31 million and $32 million at June 30, 2024 and December 31, 2023, 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 $53 million and $51 million at June 30, 2024 and December 31, 2023, respectively, and are included in "Other long-term liabilities" on the Unaudited Consolidated Statements of Financial Position. |
LEGAL MATTERS
LEGAL MATTERS | 6 Months Ended |
Jun. 30, 2024 | |
Loss Contingency, Information about Litigation Matters [Abstract] | |
LEGAL MATTERS | LEGAL MATTERS From time to time, Eastman and its operations are parties to, or targets of, lawsuits, claims, investigations and proceedings, including product liability, personal injury, asbestos, patent and intellectual property, commercial, contract, environmental, antitrust, health and safety, and employment matters, which are primarily 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 | 6 Months Ended |
Jun. 30, 2024 | |
Stockholders' Equity Note [Abstract] | |
STOCKHOLDERS' EQUITY | STOCKHOLDERS' EQUITY Reconciliations of the changes in stockholders' equity for second quarter 2024 and 2023 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 March 31, 2024 $ 2 $ 2,388 $ 9,559 $ (328) $ (6,083) $ 5,538 $ 70 $ 5,608 Net Earnings — — 230 — — 230 1 231 Cash Dividends Declared (1) ($0.81 per share) — — (95) — — (95) — (95) Other Comprehensive Income (Loss) — — — 26 — 26 — 26 Share-Based Compensation Expense (2) — 14 — — — 14 — 14 Stock Option Exercises — 15 — — — 15 — 15 Other — — — — (1) (1) 1 — Share Repurchases — — — — (100) (100) — (100) Balance at June 30, 2024 $ 2 $ 2,417 $ 9,694 $ (302) $ (6,184) $ 5,627 $ 72 $ 5,699 (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 March 31, 2023 $ 2 $ 2,325 $ 9,013 $ (220) $ (5,932) $ 5,188 $ 74 $ 5,262 Net Earnings — — 272 — — 272 — 272 Cash Dividends Declared (1) ($0.79 per share) — — (95) — — (95) — (95) Other Comprehensive Income (Loss) — — — (51) — (51) — (51) Share-Based Compensation Expense (2) — 17 — — — 17 — 17 Other — — — — — — (1) (1) Share Repurchases — — — — (50) (50) — (50) Distributions to Noncontrolling Interest — — — — — — (2) (2) Balance at June 30, 2023 $ 2 $ 2,342 $ 9,190 $ (271) $ (5,982) $ 5,281 $ 71 $ 5,352 (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. (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, 2023 $ 2 $ 2,368 $ 9,490 $ (319) $ (6,083) $ 5,458 $ 72 $ 5,530 Net Earnings — — 395 — — 395 1 396 Cash Dividends Declared (1) ($1.62 per share) — — (191) — — (191) — (191) Other Comprehensive Income (Loss) — — — 17 — 17 — 17 Share-Based Compensation Expense (2) — 35 — — — 35 — 35 Stock Option Exercises — 22 — — — 22 — 22 Other (3) — (8) — — (1) (9) — (9) Share Repurchases — — — — (100) (100) — (100) Distributions to Noncontrolling Interest — — — — — — (1) (1) Balance at June 30, 2024 $ 2 $ 2,417 $ 9,694 $ (302) $ (6,184) $ 5,627 $ 72 $ 5,699 (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 — — 406 — — 406 — 406 Cash Dividends Declared (1) ($1.58 per share) — — (189) — — (189) — (189) Other Comprehensive Income (Loss) — — — (66) — (66) — (66) Share-Based Compensation Expense (2) — 39 — — — 39 — 39 Stock Option Exercises — 2 — — — 2 — 2 Other (3) — (14) — — — (14) 2 (12) Share Repurchases — — — — (50) (50) — (50) Distributions to Noncontrolling Interest — — — — — — (14) (14) Balance at June 30, 2023 $ 2 $ 2,342 $ 9,190 $ (271) $ (5,982) $ 5,281 $ 71 $ 5,352 (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 the value of shares withheld for employees' taxes on vesting of share-based compensation awards. Accumulated Other Comprehensive Income (Loss), Net of Tax (Dollars in millions) Cumulative Translation Adjustment Benefit Plans Unrecognized Prior Service Credits Unrealized Gains (Losses) on Derivative Instruments Unrealized Losses on Investments Accumulated Other Comprehensive Income (Loss) Balance at December 31, 2022 $ (230) $ 32 $ (6) $ (1) $ (205) Period change (67) (21) (26) — (114) Balance at December 31, 2023 (297) 11 (32) (1) (319) Period change (1) (4) 22 — 17 Balance at June 30, 2024 $ (298) $ 7 $ (10) $ (1) $ (302) 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 OCI recognized in the Unaudited Consolidated Statements of Earnings, Comprehensive Income and Retained Earnings are presented below, before tax and net of tax effects: Second Quarter 2024 2023 (Dollars in millions) Before Tax Net of Tax Before Tax Net of Tax Other comprehensive income (loss) Change in cumulative translation adjustment $ 15 $ 9 $ (42) $ (42) Defined benefit pension and other postretirement benefit plans: Amortization of unrecognized prior service credits (2) (2) (6) (5) Derivatives and hedging: Unrealized gain (loss) during period 4 3 (7) (5) Reclassification adjustment for (gains) losses included in net income, net 21 16 2 1 Total other comprehensive income (loss) $ 38 $ 26 $ (53) $ (51) First Six Months 2024 2023 (Dollars in millions) Before Tax Net of Tax Before Tax Net of Tax Other comprehensive income (loss) Change in cumulative translation adjustment $ 11 $ (1) $ (43) $ (43) Defined benefit pension and other postretirement benefit plans: Amortization of unrecognized prior service credits (5) (4) (13) (10) Derivatives and hedging: Unrealized gain (loss) during period 9 7 (16) (12) Reclassification adjustment for (gains) losses included in net income, net 19 15 (1) (1) Total other comprehensive income (loss) $ 34 $ 17 $ (73) $ (66) |
EARNINGS AND DIVIDENDS PER SHAR
EARNINGS AND DIVIDENDS PER SHARE | 6 Months Ended |
Jun. 30, 2024 | |
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: Second Quarter First Six Months (In millions, except per share amounts) 2024 2023 2024 2023 Numerator Earnings attributable to Eastman, net of tax $ 230 $ 272 $ 395 $ 406 Denominator Weighted average shares used for basic EPS 117.3 118.8 117.4 118.9 Dilutive effect of stock options and other awards 1.3 0.8 1.1 0.7 Weighted average shares used for diluted EPS 118.6 119.6 118.5 119.6 (Calculated using whole dollars and shares) EPS Basic $ 1.96 $ 2.28 $ 3.37 $ 3.41 Diluted $ 1.94 $ 2.27 $ 3.33 $ 3.39 Shares underlying stock options of 1,336,652 and 2,411,015 for second quarter 2024 and 2023, respectively, and 1,397,081 and 1,941,051 for first six months 2024 and 2023, respectively, were excluded from the 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 calculations of diluted EPS would have been antidilutive. The Company repurchased 1,000,005 shares in both second quarter and first six months 2024. The Company repurchased 621,711 shares in both second quarter and first six months 2023. The Company declared cash dividends of $0.81 and $0.79 per share for second quarter 2024 and 2023, respectively. The Company declared cash dividends of $1.62 and $1.58 per share for first six months 2024 and 2023, respectively. |
ASSETS IMPAIRMENTS AND RESTRUCT
ASSETS IMPAIRMENTS AND RESTRUCTURING | 6 Months Ended |
Jun. 30, 2024 | |
Restructuring Costs and Asset Impairment Charges [Abstract] | |
ASSET IMPAIRMENTS AND RESTRUCTURING | ASSET IMPAIRMENTS AND RESTRUCTURING CHARGES, NET (Dollars in millions) Second Quarter First Six Months 2024 2023 2024 2023 Severance charges (1) $ — $ — 11 16 Site closure and other restructuring charges (2) — — — 6 Total $ — $ — $ 11 $ 22 (1) Severance charges as part of fourth quarter 2022 and 2023 cost reduction initiatives reported in "Other". See Note 14, "Segment Information". (2) First six months 2023 site closure costs related to 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 six months 2023 related to the closure of this facility. Changes in Reserves The following table summarizes the changes in asset impairments and restructuring reserves in first six months 2024 and full year 2023: (Dollars in millions) Balance at January 1, 2024 Provision/ Adjustments Non-cash Reductions/ Cash Reductions Balance at June 30, 2024 Severance costs $ 26 $ 11 $ — $ (19) $ 18 Total $ 26 $ 11 $ — $ (19) $ 18 (Dollars in millions) Balance at January 1, 2023 Provision/ Adjustments Non-cash Reductions/ Cash Reductions Balance at December 31, 2023 Severance costs $ 34 $ 31 $ — $ (39) $ 26 Other restructuring costs 1 6 — (7) — Total $ 35 $ 37 $ — $ (46) $ 26 Substantially all severance costs remaining as of June 30, 2024 are expected to be paid within one year. |
SHARE BASED COMPENSATION AWARDS
SHARE BASED COMPENSATION AWARDS | 6 Months Ended |
Jun. 30, 2024 | |
SHARE BASED COMPENSATION AWARDS [Abstract] | |
Share-based Payment Arrangement [Text Block] | SHARE-BASED COMPENSATION AWARDS The 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 performance shares. In second quarter 2024 and 2023, $14 million and $17 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. The impact on second quarter 2024 and 2023 net earnings of $11 million and $13 million, respectively, is net of deferred tax expense related to share-based award compensation for each period. In first six months 2024 and 2023, $35 million and $39 million, respectively, of compensation expense before tax were recognized in SG&A in the Unaudited Consolidated Statements of Earnings, Comprehensive Income and Retained Earnings for all share-based awards. The impact on first six months 2024 and 2023 net earnings of $26 million and $29 million, respectively, is net of deferred tax expense related to share-based award compensation for each period. For additional information regarding share-based compensation plans and awards, see Note 18, "Share-Based Compensation Plans and Awards", to the consolidated financial statements in Part II, Item 8 of the Company's 2023 Annual Report on Form 10-K . |
SEGMENT AND REGIONAL SALES INFO
SEGMENT AND REGIONAL SALES INFORMATION | 6 Months Ended |
Jun. 30, 2024 | |
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 operating segments and the geographical regions in which they operate. For disaggregation of revenue by major product lines and regions for each operating segment, see Note 20, "Segment and Regional Sales Information", to the consolidated financial statements in Part II, Item 8 of the Company's 2023 Annual Report on Form 10-K . For additional financial and product information for each operating segment, see Part I, Item 1, "Business - Business Segments", in the Company's 2023 Annual Report on Form 10-K . (Dollars in millions) Second Quarter First Six Months Sales by Segment 2024 2023 2024 2023 Advanced Materials $ 795 $ 739 $ 1,543 $ 1,481 Additives & Functional Products 718 747 1,422 1,524 Chemical Intermediates 515 514 1,038 1,103 Fibers 330 323 661 626 Total Sales by Operating Segment 2,358 2,323 4,664 4,734 Other 5 1 9 2 Total Sales $ 2,363 $ 2,324 $ 4,673 $ 4,736 (Dollars in millions) Second Quarter First Six Months Earnings (Loss) Before Interest and Taxes by Segment 2024 2023 2024 2023 Advanced Materials $ 131 $ 99 $ 235 $ 185 Additives & Functional Products 123 140 232 264 Chemical Intermediates 22 39 38 81 Fibers 122 106 239 171 Total Earnings Before Interest and Taxes by Operating Segment 398 384 744 701 Other Growth initiatives and businesses not allocated to operating segments (44) (45) (112) (96) Pension and other postretirement benefits income (expense), net not allocated to operating segments 2 (4) 4 (8) Asset impairments and restructuring charges, net — — (11) (16) Steam line incident (costs) insurance proceeds, net — — — 8 Other income (charges), net not allocated to operating segments (19) (12) (25) (20) Total Earnings Before Interest and Taxes $ 337 $ 323 $ 600 $ 569 |
SIGNIFICANT ACCOUNTING POLICI_2
SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation (Policies) | 6 Months Ended |
Jun. 30, 2024 | |
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 2023 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, 2023 financial position data included herein was derived from the consolidated financial statements included in the 2023 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 presentation 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. |
New Accounting Pronouncements, Policy [Policy Text Block] | Recently Adopted Accounting Standards Accounting Standards Update ("ASU") 2022-03 Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions : On January 1, 2024, Eastman adopted this update, 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. The adoption did not have a significant impact on the Company's financial statements and related disclosures. Accounting Standards Issued But Not Adopted as of June 30, 2024 ASU 2023-05 Business Combination - Joint Venture Formations (Subtopic 805-60): Recognition and Initial Measurement : The Financial Accounting Standards Board ("FASB") issued this update in August 2023, which states that a joint venture must initially measure all contributions received upon its formation at fair value, largely consistent with Topic 805, Business Combinations. The guidance is intended to reduce diversity in practice and provide users of joint venture financial statements with more decision-useful information. This ASU should be applied prospectively and is effective for all newly formed joint venture entities with a formation date on or after January 1, 2025. Early adoption is permitted, and joint ventures formed prior to the adoption date may elect to apply the new guidance retrospectively back to their original formation date. Management is currently evaluating the impact on the Company's financial statements and related disclosures. ASU 2023-07 Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures : The FASB issued this update in November 2023, which requires enhanced disclosures regarding significant segment expenses and other segment items for public entities on both an annual and interim basis. Specifically, the update requires that entities provide, during interim periods, all disclosures related to a reportable segment's profit or loss and assets that were previously required only on an annual basis. Additionally, this guidance necessitates the disclosure of the title and position of the Chief Operating Decision Maker ("CODM"). The new guidance does not modify how a public entity identifies its operating segments, aggregates them, or applies the quantitative thresholds to determine its reportable segments. This update is effective for fiscal years beginning after December 15, 2023, and interim periods within those fiscal years starting after December 15, 2024. This ASU must be applied retrospectively to all prior periods presented. Management is currently evaluating the impact on the Company's financial statements and related disclosures. ASU 2023-09 Income Taxes (Topic 740): Improvements to Income Tax Disclosures : The FASB issued this update in December 2023, which modifies income tax disclosure requirements. The updated guidance requires entities to provide more detailed information including specific categories in the income tax rate reconciliation, and the breakdown of income or loss from continuing operations before income tax expense or benefit, for both domestic and foreign operations. Additionally, entities must disclose income tax expense or benefit from continuing operations, categorized by federal, state, and foreign taxes. The guidance further requires disclosure of income tax payments to various jurisdictions. This ASU is effective for fiscal periods beginning after December 15, 2024, and early adoption is permitted. This ASU should be applied on a prospective basis, although retrospective application is permitted. Management is currently evaluating the 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 off balance sheet, uncommitted accounts receivable factoring programs under which entire invoices may be sold to third-party financial institutions. The vast majority of these programs are without recourse. Under these programs, 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 programs, 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 programs 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 second quarter 2024 and 2023 were $650 million and $753 million, respectively, and $1.3 billion and $1.4 billion in first six months 2024 and 2023, 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 $67 million and $69 million at June 30, 2024 and December 31, 2023, respectively, are included in "Payables and other current liabilities" on the Unaudited Consolidated Statements of Financial Position. |
INVENTORIES (Tables)
INVENTORIES (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Inventory Disclosure [Abstract] | |
Schedule of inventories | June 30, December 31, (Dollars in millions) 2024 2023 Finished goods $ 1,352 $ 1,193 Work in process 298 293 Raw materials and supplies 671 618 Total inventories at FIFO or average cost 2,321 2,104 Less: LIFO reserve 421 421 Total inventories $ 1,900 $ 1,683 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | Second Quarter First Six Months (Dollars in millions) 2024 2023 2024 2023 $ % $ % $ % $ % Provision for (benefit from) income taxes and tax rate $ 56 20 % $ (3) (1) % $ 105 21 % $ 57 12 % |
BORROWINGS (Tables)
BORROWINGS (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Debt Disclosure [Abstract] | |
Long-term Borrowings | June 30, December 31, (Dollars in millions) 2024 2023 Borrowings consisted of: 7.25% debentures due January 2024 $ — $ 198 7.625% debentures due June 2024 — 43 3.80% notes due March 2025 697 696 1.875% notes due November 2026 (1) 533 550 7.60% debentures due February 2027 196 196 4.5% notes due December 2028 496 495 5.75% notes due March 2033 (2) 496 496 5.625% notes due February 2034 743 — 4.8% notes due September 2042 495 495 4.65% notes due October 2044 878 878 2024 Term Loan — 300 2027 Term Loan 499 499 Total borrowings 5,033 4,846 Less: Borrowings due within one year 697 541 Long-term borrowings $ 4,336 $ 4,305 (1) The carrying value of the euro-denominated 1.875% notes due November 2026 fluctuates with changes in the euro to U.S. dollar exchange rate. The carrying value of this euro-denominated borrowing has been designated as a non-derivative net investment hedge 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 were used to finance or refinance 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) | 6 Months Ended |
Jun. 30, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
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 second quarter and first six months 2024 and 2023. Location and Amount of Gain or (Loss) Recognized in Earnings from Fair Value and Cash Flow Hedging Relationships Second Quarter 2024 2023 (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 $ 2,363 $ 1,764 $ 50 $ 2,324 $ 1,740 $ 54 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) Commodity Contracts: Amount reclassified from AOCI into earnings (23) (2) Foreign Exchange Contracts: Amount reclassified from AOCI into earnings 3 2 Location and Amount of Gain or (Loss) Recognized in Earnings from Fair Value and Cash Flow Hedging Relationships First Six Months 2024 2023 (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 $ 4,673 $ 3,542 $ 99 $ 4,736 $ 3,623 $ 106 The effects of fair value and cash flow hedging: Gain or (loss) on fair value hedging relationships: Interest contracts (fixed-for-floating interest rate swaps): Hedged items 2 2 Derivatives designated as hedging instruments (2) (2) 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 (23) (3) Foreign Exchange Contracts: Amount reclassified from AOCI into earnings 5 7 |
Cumulative basis adjustments for fair value hedges on balance sheet [Table Text Block] | As of June 30, 2024 and December 31, 2023, 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 June 30, 2024 December 31, 2023 June 30, 2024 December 31, 2023 Borrowings due within one year $ 73 $ — $ (2) $ — Long-term borrowings — 72 — (3) |
Schedule of Notional Amounts of Outstanding Derivative Positions [Table Text Block] | The following table presents the notional amounts outstanding at June 30, 2024 and December 31, 2023 associated with Eastman's hedging programs. Notional Outstanding June 30, 2024 December 31, 2023 Derivatives designated as cash flow hedges: Foreign Exchange Forward and Option Contracts (in millions) EUR/USD (in EUR) €399 €405 Commodity Forward and Collar Contracts Energy (in million british thermal units) 15 11 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) €1,648 €1,354 JPY/USD (in JPY) ¥7,385 ¥7,385 Non-derivatives designated as net investment hedges: Foreign Currency Net Investment Hedges (in millions) EUR/USD (in EUR) €498 €498 |
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 second quarter and first six months 2024 and 2023. 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) Second Quarter First Six Months Second Quarter First Six Months Hedging Relationships 2024 2023 2024 2023 2024 2023 2024 2023 Derivatives in cash flow hedging relationships: Commodity contracts $ 17 $ (1) $ 13 $ (4) $ (23) $ (2) $ (23) $ (3) Foreign exchange contracts 1 (3) 8 (10) 3 2 5 7 Forward starting interest rate and treasury lock swap contracts 1 — 1 1 — (1) (1) (2) Non-derivatives in net investment hedging relationships (pre-tax): Net investment hedges 5 4 17 (23) — — — — Derivatives in net investment hedging relationships (pre-tax): Cross-currency interest rate swaps 16 (3) 55 (20) — — — — Cross-currency interest rate swaps excluded component 12 (18) 2 (17) — — — — |
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 June 30, 2024 and December 31, 2023. The Financial Position and Fair Value Measurements of Hedging Instruments on a Gross Basis (Dollars in millions) Derivative Type Statements of Financial Level 2 June 30, 2024 December 31, 2023 Derivatives designated as cash flow hedges: Foreign exchange contracts Other current assets $ 4 $ — Foreign exchange contracts Other noncurrent assets 1 — Derivatives designated as fair value hedges: Fixed-for-floating interest rate swap Other current assets 1 1 Derivatives designated as net investment hedges: Cross-currency interest rate swaps Other current assets 15 8 Cross-currency interest rate swaps Other noncurrent assets 32 18 Total Derivative Assets $ 53 $ 27 Derivatives designated as cash flow hedges: Commodity contracts Payables and other current liabilities $ 2 $ 19 Foreign exchange contracts Payables and other current liabilities 1 8 Foreign exchange contracts Other long-term liabilities — 2 Derivatives designated as fair value hedges: Fixed-for-floating interest rate swap Payables and other current liabilities 2 — Fixed-for-floating interest rate swap Long-term borrowings — 3 Derivatives designated as net investment hedges: Cross-currency interest rate swaps Payables and other current liabilities 4 — Cross-currency interest rate swaps Other long-term liabilities 30 61 Total Derivative Liabilities $ 39 $ 93 Total Net Derivative Assets (Liabilities) $ 14 $ (66) |
RETIREMENT PLANS (Tables)
RETIREMENT PLANS (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Retirement Benefits [Abstract] | |
Components of net periodic benefit cost | Components of net periodic benefit (credit) cost were as follows: Second Quarter Pension Plans Other Postretirement Benefit Plans 2024 2023 2024 2023 (Dollars in millions) U.S. Non-U.S. U.S. Non-U.S. Service cost $ 6 $ 2 $ 5 $ 2 $ — $ — Interest cost 19 6 20 7 6 6 Expected return on assets (24) (7) (22) (7) (2) (1) Amortization of: Prior service credit, net — — — — (2) (6) Net periodic benefit (credit) cost $ 1 $ 1 $ 3 $ 2 $ 2 $ (1) First Six Months Pension Plans Other Postretirement Benefit Plans 2024 2023 2024 2023 (Dollars in millions) U.S. Non-U.S. U.S. Non-U.S. Service cost $ 11 $ 4 $ 11 $ 4 $ — $ — Interest cost 37 12 39 14 12 13 Expected return on assets (48) (14) (44) (13) (3) (2) Amortization of: Prior service credit, net — — — — (5) (13) Net periodic benefit (credit) cost $ — $ 2 $ 6 $ 5 $ 4 $ (2) |
ENVIRONMENTAL MATTERS AND ASS_2
ENVIRONMENTAL MATTERS AND ASSET RETIREMENT OBLIGATIONS (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Accrual for Environmental Loss Contingencies Disclosure [Abstract] | |
Schedule of environmental liabilities, current and non-current | (Dollars in millions) June 30, 2024 December 31, 2023 Environmental contingencies, current $ 15 $ 10 Environmental contingencies, long-term 273 274 Total $ 288 $ 284 |
Schedule of changes to environmental remediation liabilities | Changes in the reserves for environmental remediation liabilities during first six months 2024 and full year 2023 are summarized below: (Dollars in millions) Environmental Remediation Liabilities Balance at December 31, 2022 $ 245 Changes in estimates recognized in earnings and other 19 Cash reductions (12) Balance at December 31, 2023 252 Changes in estimates recognized in earnings and other 11 Cash reductions (6) Balance at June 30, 2024 $ 257 |
STOCKHOLDERS' EQUITY (Tables)
STOCKHOLDERS' EQUITY (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Stockholders' Equity Note [Abstract] | |
Reconciliation of the changes in stockholders' equity | Reconciliations of the changes in stockholders' equity for second quarter 2024 and 2023 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 March 31, 2024 $ 2 $ 2,388 $ 9,559 $ (328) $ (6,083) $ 5,538 $ 70 $ 5,608 Net Earnings — — 230 — — 230 1 231 Cash Dividends Declared (1) ($0.81 per share) — — (95) — — (95) — (95) Other Comprehensive Income (Loss) — — — 26 — 26 — 26 Share-Based Compensation Expense (2) — 14 — — — 14 — 14 Stock Option Exercises — 15 — — — 15 — 15 Other — — — — (1) (1) 1 — Share Repurchases — — — — (100) (100) — (100) Balance at June 30, 2024 $ 2 $ 2,417 $ 9,694 $ (302) $ (6,184) $ 5,627 $ 72 $ 5,699 (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 March 31, 2023 $ 2 $ 2,325 $ 9,013 $ (220) $ (5,932) $ 5,188 $ 74 $ 5,262 Net Earnings — — 272 — — 272 — 272 Cash Dividends Declared (1) ($0.79 per share) — — (95) — — (95) — (95) Other Comprehensive Income (Loss) — — — (51) — (51) — (51) Share-Based Compensation Expense (2) — 17 — — — 17 — 17 Other — — — — — — (1) (1) Share Repurchases — — — — (50) (50) — (50) Distributions to Noncontrolling Interest — — — — — — (2) (2) Balance at June 30, 2023 $ 2 $ 2,342 $ 9,190 $ (271) $ (5,982) $ 5,281 $ 71 $ 5,352 (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. (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, 2023 $ 2 $ 2,368 $ 9,490 $ (319) $ (6,083) $ 5,458 $ 72 $ 5,530 Net Earnings — — 395 — — 395 1 396 Cash Dividends Declared (1) ($1.62 per share) — — (191) — — (191) — (191) Other Comprehensive Income (Loss) — — — 17 — 17 — 17 Share-Based Compensation Expense (2) — 35 — — — 35 — 35 Stock Option Exercises — 22 — — — 22 — 22 Other (3) — (8) — — (1) (9) — (9) Share Repurchases — — — — (100) (100) — (100) Distributions to Noncontrolling Interest — — — — — — (1) (1) Balance at June 30, 2024 $ 2 $ 2,417 $ 9,694 $ (302) $ (6,184) $ 5,627 $ 72 $ 5,699 (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 — — 406 — — 406 — 406 Cash Dividends Declared (1) ($1.58 per share) — — (189) — — (189) — (189) Other Comprehensive Income (Loss) — — — (66) — (66) — (66) Share-Based Compensation Expense (2) — 39 — — — 39 — 39 Stock Option Exercises — 2 — — — 2 — 2 Other (3) — (14) — — — (14) 2 (12) Share Repurchases — — — — (50) (50) — (50) Distributions to Noncontrolling Interest — — — — — — (14) (14) Balance at June 30, 2023 $ 2 $ 2,342 $ 9,190 $ (271) $ (5,982) $ 5,281 $ 71 $ 5,352 (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 the value of shares withheld for employees' taxes on vesting of share-based compensation awards. |
Accumulated Other Comprehensive Income (Loss) | (Dollars in millions) Cumulative Translation Adjustment Benefit Plans Unrecognized Prior Service Credits Unrealized Gains (Losses) on Derivative Instruments Unrealized Losses on Investments Accumulated Other Comprehensive Income (Loss) Balance at December 31, 2022 $ (230) $ 32 $ (6) $ (1) $ (205) Period change (67) (21) (26) — (114) Balance at December 31, 2023 (297) 11 (32) (1) (319) Period change (1) (4) 22 — 17 Balance at June 30, 2024 $ (298) $ 7 $ (10) $ (1) $ (302) |
Schedule of components of comprehensive income (loss) before tax and net of tax effects | Components of OCI recognized in the Unaudited Consolidated Statements of Earnings, Comprehensive Income and Retained Earnings are presented below, before tax and net of tax effects: Second Quarter 2024 2023 (Dollars in millions) Before Tax Net of Tax Before Tax Net of Tax Other comprehensive income (loss) Change in cumulative translation adjustment $ 15 $ 9 $ (42) $ (42) Defined benefit pension and other postretirement benefit plans: Amortization of unrecognized prior service credits (2) (2) (6) (5) Derivatives and hedging: Unrealized gain (loss) during period 4 3 (7) (5) Reclassification adjustment for (gains) losses included in net income, net 21 16 2 1 Total other comprehensive income (loss) $ 38 $ 26 $ (53) $ (51) First Six Months 2024 2023 (Dollars in millions) Before Tax Net of Tax Before Tax Net of Tax Other comprehensive income (loss) Change in cumulative translation adjustment $ 11 $ (1) $ (43) $ (43) Defined benefit pension and other postretirement benefit plans: Amortization of unrecognized prior service credits (5) (4) (13) (10) Derivatives and hedging: Unrealized gain (loss) during period 9 7 (16) (12) Reclassification adjustment for (gains) losses included in net income, net 19 15 (1) (1) Total other comprehensive income (loss) $ 34 $ 17 $ (73) $ (66) |
EARNINGS AND DIVIDENDS PER SH_2
EARNINGS AND DIVIDENDS PER SHARE (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
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: Second Quarter First Six Months (In millions, except per share amounts) 2024 2023 2024 2023 Numerator Earnings attributable to Eastman, net of tax $ 230 $ 272 $ 395 $ 406 Denominator Weighted average shares used for basic EPS 117.3 118.8 117.4 118.9 Dilutive effect of stock options and other awards 1.3 0.8 1.1 0.7 Weighted average shares used for diluted EPS 118.6 119.6 118.5 119.6 (Calculated using whole dollars and shares) EPS Basic $ 1.96 $ 2.28 $ 3.37 $ 3.41 Diluted $ 1.94 $ 2.27 $ 3.33 $ 3.39 |
ASSETS IMPAIRMENTS AND RESTRU_2
ASSETS IMPAIRMENTS AND RESTRUCTURING (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
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 six months 2024 and full year 2023: (Dollars in millions) Balance at January 1, 2024 Provision/ Adjustments Non-cash Reductions/ Cash Reductions Balance at June 30, 2024 Severance costs $ 26 $ 11 $ — $ (19) $ 18 Total $ 26 $ 11 $ — $ (19) $ 18 (Dollars in millions) Balance at January 1, 2023 Provision/ Adjustments Non-cash Reductions/ Cash Reductions Balance at December 31, 2023 Severance costs $ 34 $ 31 $ — $ (39) $ 26 Other restructuring costs 1 6 — (7) — Total $ 35 $ 37 $ — $ (46) $ 26 |
Restructuring and Related Costs [Table Text Block] | (Dollars in millions) Second Quarter First Six Months 2024 2023 2024 2023 Severance charges (1) $ — $ — 11 16 Site closure and other restructuring charges (2) — — — 6 Total $ — $ — $ 11 $ 22 (1) Severance charges as part of fourth quarter 2022 and 2023 cost reduction initiatives reported in "Other". See Note 14, "Segment Information". (2) First six months 2023 site closure costs related to 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 six months 2023 related to the closure of this facility. |
SEGMENT AND REGIONAL SALES IN_2
SEGMENT AND REGIONAL SALES INFORMATION (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Segment Reporting [Abstract] | |
Segment Information Disclosure | (Dollars in millions) Second Quarter First Six Months Sales by Segment 2024 2023 2024 2023 Advanced Materials $ 795 $ 739 $ 1,543 $ 1,481 Additives & Functional Products 718 747 1,422 1,524 Chemical Intermediates 515 514 1,038 1,103 Fibers 330 323 661 626 Total Sales by Operating Segment 2,358 2,323 4,664 4,734 Other 5 1 9 2 Total Sales $ 2,363 $ 2,324 $ 4,673 $ 4,736 (Dollars in millions) Second Quarter First Six Months Earnings (Loss) Before Interest and Taxes by Segment 2024 2023 2024 2023 Advanced Materials $ 131 $ 99 $ 235 $ 185 Additives & Functional Products 123 140 232 264 Chemical Intermediates 22 39 38 81 Fibers 122 106 239 171 Total Earnings Before Interest and Taxes by Operating Segment 398 384 744 701 Other Growth initiatives and businesses not allocated to operating segments (44) (45) (112) (96) Pension and other postretirement benefits income (expense), net not allocated to operating segments 2 (4) 4 (8) Asset impairments and restructuring charges, net — — (11) (16) Steam line incident (costs) insurance proceeds, net — — — 8 Other income (charges), net not allocated to operating segments (19) (12) (25) (20) Total Earnings Before Interest and Taxes $ 337 $ 323 $ 600 $ 569 |
SIGNIFICANT ACCOUNTING POLICI_3
SIGNIFICANT ACCOUNTING POLICIES Recently Issued Accounting Standards (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Receivable Sold Under Factoring Arrangement | $ 650 | $ 753 | $ 1,300 | $ 1,400 | |
Supplier Finance Program, Obligation | $ 67 | $ 67 | $ 69 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
At FIFO or average cost (approximates current cost) [Abstract] | ||
Finished goods | $ 1,352 | $ 1,193 |
Work in process | 298 | 293 |
Raw materials and supplies | 671 | 618 |
Total inventories at FIFO or average cost | 2,321 | 2,104 |
Less: LIFO reserve | 421 | 421 |
Total inventories | $ 1,900 | $ 1,683 |
Inventories valued on the LIFO method | 50% | 50% |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Income Tax Examination [Line Items] | |||||
Provision for (benefit from) income taxes | $ 56 | $ (3) | $ 105 | $ 57 | |
Effective Income Tax Rate Reconciliation, Percent | 20% | (1.00%) | 21% | 12% | |
Effective Income Tax Rate Reconciliation, Other Reconciling Items, Amount | $ 23 | ||||
Unrecognized Tax Benefits | $ 345 | $ 345 | $ 320 | ||
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | $ 140 | $ 140 | |||
State and Local Jurisdiction | |||||
Income Tax Examination [Line Items] | |||||
Effective Income Tax Rate Reconciliation, State and Local Income Taxes, Amount | $ 51 | $ 51 |
BORROWINGS Part 1 (Details) Sch
BORROWINGS Part 1 (Details) Schedule of Long-term Debt Instruments - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Mar. 31, 2024 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Debt Instrument [Line Items] | |||||
Total Borrowings | $ 5,033 | $ 5,033 | $ 4,846 | ||
Borrowings due within one year | 697 | 697 | 541 | ||
Long-term borrowings | 4,336 | 4,336 | 4,305 | ||
Proceeds from borrowings | 742 | $ 796 | |||
7 1/4% debentures due January 2024 [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term Debt | $ 0 | $ 0 | 198 | ||
Debt Instrument, Interest Rate, Stated Percentage | 7.25% | 7.25% | |||
Debt Instrument, Maturity Date | January 2024 | ||||
Repayments of Debt | $ (198) | ||||
Notes Due June 2024 | |||||
Debt Instrument [Line Items] | |||||
Long-term Debt | $ 0 | $ 0 | 43 | ||
Debt Instrument, Interest Rate, Stated Percentage | 7.625% | 7.625% | |||
Debt Instrument, Maturity Date | June 2024 | ||||
Repayments of Debt | $ (43) | ||||
3.8% notes due March 2025 [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term Debt | $ 697 | $ 697 | 696 | ||
Debt Instrument, Interest Rate, Stated Percentage | 3.80% | 3.80% | |||
Debt Instrument, Maturity Date | March 2025 | ||||
1.875% notes due November 2026 [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term Debt | $ 533 | $ 533 | 550 | ||
Debt Instrument, Interest Rate, Stated Percentage | 1.875% | 1.875% | |||
Debt Instrument, Maturity Date | November 2026 | ||||
7.60% debentures due February 2027 [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term Debt | $ 196 | $ 196 | 196 | ||
Debt Instrument, Interest Rate, Stated Percentage | 7.60% | 7.60% | |||
Debt Instrument, Maturity Date | February 2027 | ||||
4.5% Notes Due Dec 2028 [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term Debt | $ 496 | $ 496 | 495 | ||
Debt Instrument, Interest Rate, Stated Percentage | 4.50% | 4.50% | |||
Debt Instrument, Maturity Date | December 2028 | ||||
5.75% Notes Due March 2033 | |||||
Debt Instrument [Line Items] | |||||
Long-term Debt | $ 496 | $ 496 | 496 | ||
Debt Instrument, Interest Rate, Stated Percentage | 5.75% | 5.75% | |||
Debt Instrument, Maturity Date | March 2033 | ||||
5.625% Notes Due February 2034 | |||||
Debt Instrument [Line Items] | |||||
Long-term Debt | $ 743 | $ 743 | 0 | ||
Debt Instrument, Interest Rate, Stated Percentage | 5.625% | 5.625% | |||
Debt Instrument, Maturity Date | February 2034 | ||||
Debt Instrument, Face Amount | 750 | ||||
Proceeds from Issuance of Debt | 742 | ||||
4.8% notes due September 2042 [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term Debt | $ 495 | $ 495 | 495 | ||
Debt Instrument, Interest Rate, Stated Percentage | 4.80% | 4.80% | |||
Debt Instrument, Maturity Date | September 2042 | ||||
4.65% notes due October 2044 [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term Debt | $ 878 | $ 878 | 878 | ||
Debt Instrument, Interest Rate, Stated Percentage | 4.65% | 4.65% | |||
Debt Instrument, Maturity Date | October 2044 | ||||
2024 Term Loan | |||||
Debt Instrument [Line Items] | |||||
Long-term Debt | $ 0 | $ 0 | 300 | ||
Repayments of Debt | $ (300) | ||||
2027 Term Loan | |||||
Debt Instrument [Line Items] | |||||
Long-term Debt | 499 | 499 | 499 | ||
Commercial paper and short-term borrowings [Member] | |||||
Debt Instrument [Line Items] | |||||
Borrowings due within one year | $ 0 | $ 0 | $ 0 |
BORROWINGS Part 2 (Details) Cre
BORROWINGS Part 2 (Details) Credit Facility and Commercial Paper Borrowings - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2024 | Jun. 30, 2024 | Dec. 31, 2023 | |
Credit Facilities [Abstract] | |||
Borrowings due within one year | $ 697 | $ 541 | |
Revolving Credit Facility [Member] | |||
Credit Facilities [Abstract] | |||
Borrowings due within one year | 0 | 0 | |
Commercial paper and short-term borrowings [Member] | |||
Credit Facilities [Abstract] | |||
Borrowings due within one year | 0 | 0 | |
2024 Term Loan | |||
Credit Facilities [Abstract] | |||
Repayments of Debt | $ 300 | ||
Long-term Debt | 0 | 300 | |
2027 Term Loan | |||
Credit Facilities [Abstract] | |||
Long-term Debt | $ 499 | $ 499 | |
Debt, Weighted Average Interest Rate | 6.57% | 6.58% | |
Revolving Credit Facility [Member] | |||
Credit Facilities [Abstract] | |||
Line of Credit Facility, Maximum Borrowing Capacity | $ 1,500 |
BORROWINGS Part 3 (Details) Fai
BORROWINGS Part 3 (Details) Fair Value - Fair Value, Recurring [Member] - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Instrument, Fair Value Disclosure | $ 4,800 | $ 4,700 |
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 | 6 Months Ended | 12 Months Ended | |||||||||||
Jun. 30, 2024 USD ($) MMBTU | Mar. 31, 2024 USD ($) | Mar. 31, 2024 EUR (€) | Jun. 30, 2023 USD ($) | Jun. 30, 2024 USD ($) MMBTU | Jun. 30, 2024 EUR (€) | Jun. 30, 2023 USD ($) | Dec. 31, 2023 USD ($) MMBTU | Dec. 31, 2023 EUR (€) | Jun. 30, 2024 EUR (€) MMBTU | Jun. 30, 2024 JPY (¥) MMBTU | Dec. 31, 2023 EUR (€) MMBTU | Dec. 31, 2023 JPY (¥) MMBTU | Dec. 31, 2022 USD ($) | |
Derivative [Line Items] | ||||||||||||||
Unrealized Gains (Losses) on Derivative Instruments | $ (10) | $ (10) | $ (32) | $ (6) | ||||||||||
Unrealized gain (loss) during period | $ 4 | $ (7) | $ 9 | $ (16) | ||||||||||
Foreign Exchange Contract [Member] | Euro Member Countries, Euro | Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | ||||||||||||||
Derivative [Line Items] | ||||||||||||||
Derivative, Notional Amount | € | € 399 | € 405 | ||||||||||||
Energy Related Derivative [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | ||||||||||||||
Derivative [Line Items] | ||||||||||||||
Derivative, Nonmonetary Notional Amount | MMBTU | 15 | 15 | 11 | 15 | 15 | 11 | 11 | |||||||
Interest Rate Contract [Member] | Designated as Hedging Instrument [Member] | Fair Value Hedging [Member] | ||||||||||||||
Derivative [Line Items] | ||||||||||||||
Derivative, Notional Amount | $ 75 | $ 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 | $ 533 | € 498 | $ 550 | € 498 | ||||||||||
Notes Due January 2024 [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, Settled in Period | € | € 165 | |||||||||||||
Notes Due January 2024 [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, Settled in Period | $ 190 | |||||||||||||
Derivatives used in Net Investment Hedge, Increase (Decrease), Gross of Tax | 9 | |||||||||||||
4.5% Notes Due Dec 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, Entered in Period | € | 46 | |||||||||||||
4.5% Notes Due Dec 2028 [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, Entered in Period | 50 | |||||||||||||
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, Entered in Period | € | 184 | |||||||||||||
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, Entered in Period | 200 | |||||||||||||
5.625% Notes Due February 2034 | 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, Entered in Period | € | € 230 | |||||||||||||
5.625% Notes Due February 2034 | 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, Entered in Period | $ 250 | |||||||||||||
Debt with Various Maturities | 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 | € | € 1,648 | € 1,354 | ||||||||||||
Debt with Various Maturities | Cross Currency Interest Rate Contract [Member] | Japan, Yen | Designated as Hedging Instrument [Member] | Net Investment Hedging [Member] | ||||||||||||||
Derivative [Line Items] | ||||||||||||||
Derivative, Notional Amount | ¥ | ¥ 7,385 | ¥ 7,385 |
DERIVATIVE AND NON-DERIVATIVE_4
DERIVATIVE AND NON-DERIVATIVE FINANCIAL INSTRUMENTS Part 2 (Details) € in Millions, $ in Millions | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2024 EUR (€) | Jun. 30, 2024 USD ($) | Dec. 31, 2023 EUR (€) | Dec. 31, 2023 USD ($) | |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | ||||
Derivative Assets [Abstract] | ||||
Derivative Asset, Fair Value, Gross Asset | $ 53 | $ 27 | ||
Derivative Liabilities [Abstract] | ||||
Derivative Liability, Fair Value, Gross Liability | 39 | 93 | ||
Derivative, Fair Value, Net | 14 | (66) | ||
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 | 19 | ||
Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | Foreign Exchange Contract [Member] | Designated as Hedging Instrument [Member] | Other Current Assets [Member] | ||||
Derivative Assets [Abstract] | ||||
Cash Flow Hedge Derivative Instrument Assets at Fair Value | 4 | 0 | ||
Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | Foreign Exchange Contract [Member] | Designated as Hedging Instrument [Member] | Other Noncurrent Assets [Member] | ||||
Derivative Assets [Abstract] | ||||
Cash Flow Hedge Derivative Instrument Assets at Fair Value | 1 | 0 | ||
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 | 1 | 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 | 0 | 2 | ||
Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | Interest Rate Contract [Member] | Designated as Hedging Instrument [Member] | Other Current Assets [Member] | ||||
Derivative Assets [Abstract] | ||||
Fair Value Hedge Assets | 1 | 1 | ||
Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | Interest Rate Contract [Member] | Designated as Hedging Instrument [Member] | Other Current Liabilities [Member] | ||||
Derivative Liabilities [Abstract] | ||||
Fair Value Hedge Liabilities | 2 | 0 | ||
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 | 0 | 3 | ||
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 Current Assets [Member] | ||||
Derivative Assets [Abstract] | ||||
Derivative Instruments in Hedges, Net Investment in Foreign Operations, Assets, Fair Value | 15 | 8 | ||
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 | 32 | 18 | ||
Net Investment Hedging [Member] | Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | Cross Currency Interest Rate Contract [Member] | Designated as Hedging Instrument [Member] | Other Current Liabilities [Member] | ||||
Derivative Assets [Abstract] | ||||
Derivative Instruments in Hedges, Net Investment in Foreign Operations, Assets, Fair Value | 4 | 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 Liabilities [Member] | ||||
Derivative Assets [Abstract] | ||||
Derivative Instruments in Hedges, Net Investment in Foreign Operations, Assets, Fair Value | 30 | 61 | ||
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 | € 498 | 533 | € 498 | 550 |
Fair Value Hedging [Member] | Interest Rate Contract [Member] | Short-term Debt | ||||
Derivative Liabilities [Abstract] | ||||
Hedged Liability, Fair Value Hedge, Cumulative Increase (Decrease) | 2 | |||
Hedged Liability, Fair Value Hedge, Cumulative Increase (Decrease) | $ (2) | |||
Hedged Liability, Statement of Financial Position [Extensible Enumeration] | Borrowings due within one year | |||
Fair Value Hedging [Member] | Interest Rate Contract [Member] | Long-term Debt | ||||
Derivative Liabilities [Abstract] | ||||
Hedged Liability, Fair Value Hedge, Cumulative Increase (Decrease) | 3 | |||
Hedged Liability, Fair Value Hedge, Cumulative Increase (Decrease) | $ (3) | |||
Hedged Liability, Statement of Financial Position [Extensible Enumeration] | Long-term borrowings |
DERIVATIVE AND NON-DERIVATIVE_5
DERIVATIVE AND NON-DERIVATIVE FINANCIAL INSTRUMENTS Part 3 (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Sales | $ 2,363 | $ 2,324 | $ 4,673 | $ 4,736 | |
Cost of sales | 1,764 | 1,740 | 3,542 | 3,623 | |
Net interest expense | 50 | 54 | 99 | 106 | |
Other Comprehensive Income (Loss), Derivatives and Non-derivatives Qualifying as Hedges, before Tax [Abstract] | |||||
Change in cumulative translation adjustment, before tax | 15 | (42) | 11 | (43) | |
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), after Reclassification and Tax | 22 | $ (26) | |||
Summary of Derivative Instruments [Abstract] | |||||
Accumulated Other Comprehensive Income Loss Unrealized Gain Loss From Hedges Before Tax | 99 | 99 | $ (4) | ||
Price Risk Cash Flow Hedge Unrealized Gain to be Reclassified During Next 12 Months | 1 | 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 | $ 17 | $ (1) | $ 13 | $ (4) | |
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 | 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 | $ 1 | $ (3) | $ 8 | $ (10) | |
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 | 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 | $ 0 | $ 1 | $ 1 | |
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 | 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 | $ 2 | $ 2 | |
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) | (2) | (2) | ||
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 | 5 | 4 | 17 | (23) | |
Not Designated as Hedging Instrument [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | 2 | (1) | (3) | (6) | |
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 | 16 | (3) | 55 | (20) | |
AOCI, Derivative Qualifying as Hedge, Excluded Component | $ 12 | $ (18) | $ 2 | $ (17) |
RETIREMENT PLANS (Details)
RETIREMENT PLANS (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Other Postretirement Benefits Plan [Member] | ||||
Components of net periodic benefit cost [Abstract] | ||||
Service cost | $ 0 | $ 0 | $ 0 | $ 0 |
Interest cost | 6 | 6 | 12 | 13 |
Expected return on assets | (2) | (1) | (3) | (2) |
Prior service credit, net | (2) | (6) | (5) | (13) |
Net periodic benefit (credit) cost | 2 | (1) | 4 | (2) |
Foreign Plan [Member] | Pension Plan [Member] | ||||
Components of net periodic benefit cost [Abstract] | ||||
Service cost | 2 | 2 | 4 | 4 |
Interest cost | 6 | 7 | 12 | 14 |
Expected return on assets | (7) | (7) | (14) | (13) |
Prior service credit, net | 0 | 0 | 0 | 0 |
Net periodic benefit (credit) cost | 1 | 2 | 2 | 5 |
UNITED STATES | Pension Plan [Member] | ||||
Components of net periodic benefit cost [Abstract] | ||||
Service cost | 6 | 5 | 11 | 11 |
Interest cost | 19 | 20 | 37 | 39 |
Expected return on assets | (24) | (22) | (48) | (44) |
Prior service credit, net | 0 | 0 | 0 | 0 |
Net periodic benefit (credit) cost | $ 1 | $ 3 | $ 0 | $ 6 |
Other Commitments (Details)
Other Commitments (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended |
Mar. 31, 2024 | Jun. 30, 2024 | |
Other Commitments [Line Items] | ||
Other Commitment | $ 10,500 | |
Unrecorded Unconditional Purchase Obligation, Term | 30 years | |
Obligations | ||
Other Commitments [Line Items] | ||
Reduction of purchase obligations in current period | $ 1,500 |
ENVIRONMENTAL MATTERS AND ASS_3
ENVIRONMENTAL MATTERS AND ASSET RETIREMENT OBLIGATIONS (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2024 | Dec. 31, 2023 | |
Accrual for Environmental Loss Contingencies [Roll Forward] | ||
Beginning of period | $ 284 | |
End of period | 288 | $ 284 |
Accrual for Environmental Loss Contingencies, Balance Sheet Classification [Abstract] | ||
Accrued Environmental Loss Contingencies, Current | 15 | 10 |
Accrued Environmental Loss Contingencies, Noncurrent | 273 | 274 |
Environmental Remediation [Member] | ||
Accrual for Environmental Loss Contingencies [Roll Forward] | ||
Beginning of period | 252 | 245 |
Changes in estimates recognized in earnings and other | 11 | 19 |
Cash reductions | (6) | (12) |
End of period | $ 257 | 252 |
Expected Payment Period of Environmental Contingencies | approximately 30 years | |
Environmental Remediation [Member] | Minimum [Member] | ||
Site Contingency [Line Items] | ||
Loss Contingency, Estimate of Possible Loss | $ 257 | 252 |
Environmental Remediation [Member] | Maximum [Member] | ||
Site Contingency [Line Items] | ||
Loss Contingency, Estimate of Possible Loss | 503 | 497 |
Environmental ARO [Member] | ||
Site Contingency [Line Items] | ||
Best Estimate Accrued to-date For Asset Retirement Obligation | 31 | 32 |
Non Environmental ARO [Member] | ||
Site Contingency [Line Items] | ||
Best Estimate Accrued to-date For Asset Retirement Obligation | $ 53 | $ 51 |
STOCKHOLDERS' EQUITY Part 1 (De
STOCKHOLDERS' EQUITY Part 1 (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2022 | |
Stockholders' Equity Note [Abstract] | ||||||||
Dividends, Per Share | $ 0.81 | $ 0.79 | $ 1.62 | $ 1.58 | ||||
Stockholders' Equity Attributable to Parent | $ 5,627 | $ 5,627 | $ 5,458 | |||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 5,699 | $ 5,352 | 5,699 | $ 5,352 | 5,530 | $ 5,608 | $ 5,262 | $ 5,236 |
Net earnings attributable to Eastman | 230 | 272 | 395 | 406 | ||||
Net earnings attributable to noncontrolling interest | 1 | 0 | 1 | 0 | ||||
Net earnings including noncontrolling interest | 231 | 272 | 396 | 406 | ||||
Cash dividends declared | (95) | (95) | (191) | (189) | ||||
Other Comprehensive Income (Loss) | 26 | (51) | 17 | (66) | (114) | |||
Share-based Compensation Expense | 14 | 17 | 35 | 39 | ||||
Stock Option Exercises | 15 | 22 | 2 | |||||
Other | 0 | (1) | (9) | (12) | ||||
Share Repurchases | (100) | (50) | (100) | (50) | ||||
Distributions to Noncontrolling Interest | (2) | (1) | (14) | |||||
Noncontrolling interest | 72 | 72 | 72 | |||||
Common Stock [Member] | ||||||||
Stockholders' Equity Attributable to Parent | 2 | 2 | 2 | 2 | 2 | 2 | 2 | 2 |
Net earnings attributable to Eastman | 0 | 0 | 0 | 0 | ||||
Cash dividends declared | 0 | 0 | 0 | 0 | ||||
Other Comprehensive Income (Loss) | 0 | 0 | 0 | 0 | ||||
Share-based Compensation Expense | 0 | 0 | 0 | 0 | ||||
Stock Option Exercises | 0 | 0 | 0 | |||||
Other | 0 | 0 | 0 | 0 | ||||
Share Repurchases | 0 | 0 | 0 | 0 | ||||
Distributions to Noncontrolling Interest | 0 | 0 | 0 | |||||
Additional Paid-in Capital [Member] | ||||||||
Stockholders' Equity Attributable to Parent | 2,417 | 2,342 | 2,417 | 2,342 | 2,368 | 2,388 | 2,325 | 2,315 |
Net earnings attributable to Eastman | 0 | 0 | 0 | 0 | ||||
Cash dividends declared | 0 | 0 | 0 | 0 | ||||
Other Comprehensive Income (Loss) | 0 | 0 | 0 | 0 | ||||
Share-based Compensation Expense | 14 | 17 | 35 | 39 | ||||
Stock Option Exercises | 15 | 22 | 2 | |||||
Other | 0 | 0 | (8) | (14) | ||||
Share Repurchases | 0 | 0 | 0 | 0 | ||||
Distributions to Noncontrolling Interest | 0 | 0 | 0 | |||||
Retained Earnings [Member] | ||||||||
Stockholders' Equity Attributable to Parent | 9,694 | 9,190 | 9,694 | 9,190 | 9,490 | 9,559 | 9,013 | 8,973 |
Net earnings attributable to Eastman | 230 | 272 | 395 | 406 | ||||
Cash dividends declared | (95) | (95) | (191) | (189) | ||||
Other Comprehensive Income (Loss) | 0 | 0 | 0 | 0 | ||||
Share-based Compensation Expense | 0 | 0 | 0 | 0 | ||||
Stock Option Exercises | 0 | 0 | 0 | |||||
Other | 0 | 0 | 0 | 0 | ||||
Share Repurchases | 0 | 0 | 0 | 0 | ||||
Distributions to Noncontrolling Interest | 0 | 0 | 0 | |||||
Accumulated Other Comprehensive Income (Loss) [Member] | ||||||||
Stockholders' Equity Attributable to Parent | (302) | (271) | (302) | (271) | (319) | (328) | (220) | (205) |
Net earnings attributable to Eastman | 0 | 0 | 0 | 0 | ||||
Cash dividends declared | 0 | 0 | 0 | 0 | ||||
Other Comprehensive Income (Loss) | 26 | (51) | 17 | (66) | ||||
Share-based Compensation Expense | 0 | 0 | 0 | 0 | ||||
Stock Option Exercises | 0 | 0 | 0 | |||||
Other | 0 | 0 | 0 | 0 | ||||
Share Repurchases | 0 | 0 | 0 | 0 | ||||
Distributions to Noncontrolling Interest | 0 | 0 | 0 | |||||
Treasury Stock, Common | ||||||||
Stockholders' Equity Attributable to Parent | (6,184) | (5,982) | (6,184) | (5,982) | (6,083) | (6,083) | (5,932) | (5,932) |
Net earnings attributable to Eastman | 0 | 0 | 0 | 0 | ||||
Cash dividends declared | 0 | 0 | 0 | 0 | ||||
Other Comprehensive Income (Loss) | 0 | 0 | 0 | 0 | ||||
Share-based Compensation Expense | 0 | 0 | 0 | 0 | ||||
Stock Option Exercises | 0 | 0 | 0 | |||||
Other | (1) | 0 | (1) | 0 | ||||
Share Repurchases | (100) | (50) | (100) | (50) | ||||
Distributions to Noncontrolling Interest | 0 | 0 | 0 | |||||
Parent [Member] | ||||||||
Stockholders' Equity Attributable to Parent | 5,627 | 5,281 | 5,627 | 5,281 | 5,458 | 5,538 | 5,188 | 5,153 |
Net earnings attributable to Eastman | 230 | 272 | 395 | 406 | ||||
Cash dividends declared | (95) | (95) | (191) | (189) | ||||
Other Comprehensive Income (Loss) | 26 | (51) | 17 | (66) | ||||
Share-based Compensation Expense | 14 | 17 | 35 | 39 | ||||
Stock Option Exercises | 15 | 22 | 2 | |||||
Other | (1) | 0 | (9) | (14) | ||||
Share Repurchases | (100) | (50) | (100) | (50) | ||||
Distributions to Noncontrolling Interest | 0 | 0 | 0 | |||||
Noncontrolling Interest [Member] | ||||||||
Net earnings attributable to noncontrolling interest | 1 | 0 | 1 | 0 | ||||
Cash dividends declared | 0 | 0 | 0 | 0 | ||||
Other Comprehensive Income (Loss) | 0 | 0 | 0 | 0 | ||||
Share-based Compensation Expense | 0 | 0 | 0 | 0 | ||||
Stock Option Exercises | 0 | 0 | 0 | |||||
Other | 1 | (1) | 0 | 2 | ||||
Share Repurchases | 0 | 0 | 0 | 0 | ||||
Distributions to Noncontrolling Interest | (2) | (1) | (14) | |||||
Noncontrolling interest | $ 72 | $ 71 | $ 72 | $ 71 | $ 72 | $ 70 | $ 74 | $ 83 |
STOCKHOLDERS' EQUITY Part 2 AOC
STOCKHOLDERS' EQUITY Part 2 AOCI (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Cumulative Translation Adjustment | $ (298) | $ (298) | $ (297) | $ (230) | ||
Change in cumulative translation adjustment | 9 | $ (42) | (1) | $ (43) | (67) | |
Benefit Plans Unrecognized Prior Service Credits | 7 | 7 | 11 | 32 | ||
Change in Benefit Plans Unrecognized Prior Service Credits | (4) | (21) | ||||
Unrealized Gains (Losses) on Derivative Instruments | (10) | (10) | (32) | (6) | ||
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), after Reclassification and Tax | 22 | (26) | ||||
Unrealized Losses on Investments | (1) | (1) | (1) | (1) | ||
Change in Unrealized Losses on Investments | 0 | 0 | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (302) | (302) | (319) | $ (205) | ||
Other Comprehensive Income (Loss) | $ 26 | $ (51) | $ 17 | $ (66) | $ (114) |
STOCKHOLDERS' EQUITY Part 3 OCI
STOCKHOLDERS' EQUITY Part 3 OCI (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Other Comprehensive Income (Loss), before Tax [Abstract] | |||||
Change in cumulative translation adjustment, before tax | $ 15 | $ (42) | $ 11 | $ (43) | |
Amortization of unrecognized prior service credits | (2) | (6) | (5) | (13) | |
Unrealized gain (loss) during period | 4 | (7) | 9 | (16) | |
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification, before Tax | 21 | 2 | 19 | (1) | |
Total other comprehensive income (loss), before tax | 38 | (53) | 34 | (73) | |
Other comprehensive income (loss), net of tax: | |||||
Change in cumulative translation adjustment | 9 | (42) | (1) | (43) | $ (67) |
Amortization of unrecognized prior service credits | (2) | (5) | (4) | (10) | |
Unrealized gain (loss) during period | 3 | (5) | 7 | (12) | |
Reclassification adjustment for (gains) losses included in net income, net | 16 | 1 | 15 | (1) | |
Other Comprehensive Income (Loss) | $ 26 | $ (51) | $ 17 | $ (66) | $ (114) |
EARNINGS AND DIVIDENDS PER SH_3
EARNINGS AND DIVIDENDS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Earnings Per Share [Abstract] | ||||
Net earnings attributable to Eastman | $ 230 | $ 272 | $ 395 | $ 406 |
Weighted average shares used for basic EPS (in shares) | 117,300,000 | 118,800,000 | 117,400,000 | 118,900,000 |
Dilutive effect of stock options and other awards | 1,300,000 | 800,000 | 1,100,000 | 700,000 |
Weighted average shares used for diluted EPS (in shares) | 118,600,000 | 119,600,000 | 118,500,000 | 119,600,000 |
Earnings Per Share, Basic | $ 1.96 | $ 2.28 | $ 3.37 | $ 3.41 |
Earnings Per Share, Diluted | $ 1.94 | $ 2.27 | $ 3.33 | $ 3.39 |
Underlying options excluded from the computation of diluted earnings per share (in shares) | 1,336,652 | 2,411,015 | 1,397,081 | 1,941,051 |
Cash dividends declared (per share) | $ 0.81 | $ 0.79 | $ 1.62 | $ 1.58 |
Shares repurchased (in shares) | 1,000,005 | 621,711 | 1,000,005 | 621,711 |
ASSETS IMPAIRMENTS AND RESTRU_3
ASSETS IMPAIRMENTS AND RESTRUCTURING (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Restructuring Cost and Reserve [Line Items] | |||||
Severance Costs | $ 0 | $ 0 | $ 11 | $ 16 | |
Business Exit Costs | 0 | 0 | 0 | 6 | |
Restructuring, Settlement and Impairment Provisions | 0 | $ 0 | 11 | 22 | |
Restructuring Charge [Roll Forward] | |||||
Balance at Beginning of Period | 26 | 35 | $ 35 | ||
Provision / Adjustments | 11 | 37 | |||
Restructuring Reserve, Accrual Adjustment | 0 | 0 | |||
Cash Reductions | (19) | (46) | |||
Balance at End of Period | 18 | 18 | 26 | ||
Facility Closing [Member] | |||||
Restructuring Charge [Roll Forward] | |||||
Balance at Beginning of Period | 0 | 1 | 1 | ||
Provision / Adjustments | 6 | ||||
Restructuring Reserve, Accrual Adjustment | 0 | ||||
Cash Reductions | (7) | ||||
Balance at End of Period | 0 | ||||
Employee Severance [Member] | |||||
Restructuring Charge [Roll Forward] | |||||
Balance at Beginning of Period | 26 | 34 | 34 | ||
Provision / Adjustments | 11 | 31 | |||
Restructuring Reserve, Accrual Adjustment | 0 | 0 | |||
Cash Reductions | (19) | (39) | |||
Balance at End of Period | $ 18 | $ 18 | $ 26 | ||
Site Closure Acetate Yarn Europe | Fibers [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and Related Cost, Accelerated Depreciation | $ 23 |
Share Based Compensation Awar_2
Share Based Compensation Awards (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Share-based Payment Arrangement, Expense, after Tax | $ 11 | $ 13 | $ 26 | $ 29 |
Share-based Payment Arrangement, Expense | $ 14 | $ 17 | $ 35 | $ 39 |
SEGMENT AND REGIONAL SALES IN_3
SEGMENT AND REGIONAL SALES INFORMATION (Details) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 USD ($) | Jun. 30, 2023 USD ($) | Jun. 30, 2024 USD ($) Segment | Jun. 30, 2023 USD ($) | |
Segment Reporting Information [Line Items] | ||||
Number of Operating Segments | Segment | 4 | |||
Sales [Abstract] | ||||
Sales | $ 2,363 | $ 2,324 | $ 4,673 | $ 4,736 |
Earnings (Loss) Before Interest and Taxes [Abstract] | ||||
Earnings before interest and taxes | 337 | 323 | 600 | 569 |
Operating Segments [Member] | ||||
Sales [Abstract] | ||||
Sales | 2,358 | 2,323 | 4,664 | 4,734 |
Earnings (Loss) Before Interest and Taxes [Abstract] | ||||
Earnings before interest and taxes | 398 | 384 | 744 | 701 |
Corporate, Non-Segment [Member] | ||||
Sales [Abstract] | ||||
Sales | 5 | 1 | 9 | 2 |
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 | (44) | (45) | (112) | (96) |
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 | 2 | (4) | 4 | (8) |
Corporate, Non-Segment [Member] | Steam Line Incident | ||||
Earnings (Loss) Before Interest and Taxes [Abstract] | ||||
Earnings before interest and taxes | 0 | 0 | 0 | 8 |
Corporate, Non-Segment [Member] | Asset impairments and restructuring charges, net | ||||
Earnings (Loss) Before Interest and Taxes [Abstract] | ||||
Earnings before interest and taxes | 0 | 0 | (11) | (16) |
Corporate, Non-Segment [Member] | Other Nonoperating Income (Expense) [Member] | ||||
Earnings (Loss) Before Interest and Taxes [Abstract] | ||||
Earnings before interest and taxes | (19) | (12) | (25) | (20) |
Additives And Functional Products [Member] | ||||
Earnings (Loss) Before Interest and Taxes [Abstract] | ||||
Earnings before interest and taxes | 123 | 140 | 232 | 264 |
Additives And Functional Products [Member] | Operating Segments [Member] | ||||
Sales [Abstract] | ||||
Sales | 718 | 747 | 1,422 | 1,524 |
Advanced Materials [Member] | ||||
Earnings (Loss) Before Interest and Taxes [Abstract] | ||||
Earnings before interest and taxes | 131 | 99 | 235 | 185 |
Advanced Materials [Member] | Operating Segments [Member] | ||||
Sales [Abstract] | ||||
Sales | 795 | 739 | 1,543 | 1,481 |
Chemical Intermediates [Member] | ||||
Earnings (Loss) Before Interest and Taxes [Abstract] | ||||
Earnings before interest and taxes | 22 | 39 | 38 | 81 |
Chemical Intermediates [Member] | Operating Segments [Member] | ||||
Sales [Abstract] | ||||
Sales | 515 | 514 | 1,038 | 1,103 |
Fibers [Member] | ||||
Earnings (Loss) Before Interest and Taxes [Abstract] | ||||
Earnings before interest and taxes | 122 | 106 | 239 | 171 |
Fibers [Member] | Operating Segments [Member] | ||||
Sales [Abstract] | ||||
Sales | $ 330 | $ 323 | $ 661 | $ 626 |