STOCKHOLDERS' EQUITY

A reconciliation of the changes in stockholders' equity for 2015, 2014, and 2013 is provided below:



(Dollars in millions)	Common Stock at Par Value $	Paid-in Capital $		Retained Earnings $		Accumulated Other Comprehensive Income (Loss) $		Treasury Stock at Cost $		Total Stockholders' Equity Attributed to Eastman $		Noncontrolling Interest $		Total Stockholders' Equity $
Balance at December 31, 2012	2	1,709		3,038		123		(1,929	)	2,943		85		3,028
Net Earnings	—	—		1,165		—		—		1,165		7		1,172
Cash Dividends ⁽¹⁾	—	—		(191	)	—		—		(191	)	—		(191	)
Other Comprehensive Income	—	—		—		48		—		48		—		48
Share-Based Compensation Expense ⁽²⁾	—	39		—		—		—		39		—		39
Stock Option Exercises	—	12		—		—		—		12		—		12
Shares Issued for Business Combination	—	16		—		—		—		16		—		16
Other⁽³⁾	—	2		—		—		—		2		—		2
Share Repurchase	—	—		—		—		(238	)	(238	)	—		(238	)
Distributions to noncontrolling interest	—	—		—		—		—		—		(13	)	(13	)
Balance at December 31, 2013	2	1,778		4,012		171		(2,167	)	3,796		79		3,875
Net Earnings	—	—		751		—		—		751		6		757
Cash Dividends ⁽¹⁾	—	—		(218	)	—		—		(218	)	—		(218	)
Other Comprehensive Loss	—	—		—		(448	)	—		(448	)	—		(448	)
Share-Based Compensation Expense ⁽²⁾	—	28		—		—		—		28		—		28
Stock Option Exercises	—	13		—		—		—		13		—		13
Other ⁽³⁾	—	(2	)	—		—		—		(2	)	(1	)	(3	)
Share Repurchase	—	—		—		—		(410	)	(410	)	—		(410	)
Distributions to noncontrolling interest	—	—		—		—		—		—		(4	)	(4	)
Balance at December 31, 2014	2	1,817		4,545		(277	)	(2,577	)	3,510		80		3,590
Net Earnings	—	—		848		—		—		848		6		854
Cash Dividends ⁽¹⁾	—	—		(247	)	—		—		(247	)	—		(247	)
Other Comprehensive Loss	—	—		—		(113	)	—		(113	)	—		(113	)
Share-Based Compensation Expense ⁽²⁾	—	37		—		—		—		37		—		37
Stock Option Exercises	—	8		—		—		—		8		—		8
Other ⁽³⁾	—	1		—		—		—		1		—		1
Share Repurchase	—	—		—		—		(103	)	(103	)	—		(103	)
Distributions to noncontrolling interest	—	—		—		—		—		—		(6	)	(6	)
Balance at December 31, 2015	2	1,863		5,146		(390	)	(2,680	)	3,941		80		4,021


⁽¹⁾	Includes cash dividends paid and dividends declared, but unpaid.


⁽²⁾	Includes the fair value of equity share-based awards recognized for share-based compensation.


⁽³⁾	Paid in capital includes tax benefits/charges relating to the difference between the amounts deductible for federal income taxes over the amounts charged to income for book value purposes have been adjusted to paid-in capital and other items. Equity attributable to noncontrolling interest includes adjustments for currency revaluation.

The Company is authorized to issue 400 million shares of all classes of stock, of which 50 million may be preferred stock, par value $0.01 per share, and 350 million may be common stock, par value $0.01 per share. The Company declared dividends per share of $1.66 in 2015, $1.45 in 2014, and $1.25 in 2013.

The Company established a benefit security trust in 1997 to provide a degree of financial security for unfunded obligations under certain unfunded plans and contributed to the trust a warrant to purchase up to 6 million shares of common stock of the Company for par value. The warrant, which remains outstanding, is exercisable by the trustee if the Company does not meet certain funding obligations, which obligations would be triggered by certain occurrences, including a change in control or potential change in control, as defined, or failure by the Company to meet its payment obligations under certain covered unfunded plans. Such warrant is excluded from the computation of diluted earnings per share because the conditions upon which the warrant becomes exercisable have not been met.

The additions to paid-in capital in 2015, 2014, and 2013 are primarily for compensation expense of equity awards and employee stock option exercises.

In February 2011, the Company's Board of Directors authorized repurchase of up to $300 million of the Company's outstanding common stock. The Company completed the $300 million repurchase authorization in August 2013, acquiring a total of 6,141,999 shares. In May 2013, the Company's Board of Directors authorized repurchase of up to $300 million of the Company's outstanding common stock. The Company completed the $300 million repurchase authorization in March 2014, acquiring a total of 3,840,949 shares. In February 2014, the Company's Board of Directors authorized repurchase of up to an additional $1 billion of the Company's outstanding common stock at such times, in such amounts, and on such terms, as determined to be in the best interests of the Company. As of December 31, 2015, a total of 4,410,689 shares have been repurchased under this authorization for a total of $353 million. During 2015, the Company repurchased 1,477,660 shares of common stock for a cost of approximately $103 million. During 2014, the Company repurchased 4,945,452 shares of common stock for a cost of approximately $410 million. During 2013, the Company repurchased 3,212,886 shares of common stock for a cost of approximately $238 million.

The Company's charitable foundation held 50,798 shares of the Company's common stock at December 31, 2015, 2014, and 2013 which are included in treasury stock.

The following table sets forth the computation of basic and diluted earnings per share ("EPS") for continuing operations:



	For years ended December 31,
(In millions, except per share amounts)	2015		2014		2013
Numerator
Earnings attributable to Eastman stockholders:
Earnings from continuing operations, net of tax	$	848	$	749	$	1,165

Denominator
Weighted average shares used for basic EPS	148.6		149.5		154.0
Dilutive effect of stock options and other award plans	1.2		1.6		2.5
Weighted average shares used for diluted EPS	149.8		151.1		156.5

EPS from continuing operations⁽¹⁾
Basic	$	5.71	$	5.01	$	7.57
Diluted	$	5.66	$	4.95	$	7.44


⁽¹⁾	Earnings per share are calculated using whole dollars and shares.

Stock options excluded from the 2015 calculation of diluted earnings per share were 768,134 because the market value of option exercises for these awards was less than the cash proceeds that would be received from these exercises. Stock options excluded from the 2014 calculation of diluted earnings per share were 272,143 because the market value of option exercises for these awards was less than the cash proceeds that would be received from these exercises. There were no stock options excluded from the 2013 calculation of diluted earnings per share.



	For years ended December 31,
Shares of common stock issued ⁽¹⁾	2015	2014	2013

Balance at beginning of year	216,256,971	215,131,237	213,406,523
Issued for employee compensation and benefit plans	642,993	1,125,734	1,455,030
Issued for Solutia acquisition and related warrants	—	—	269,684
Balance at end of year	216,899,964	216,256,971	215,131,237


⁽¹⁾	Includes shares held in treasury.

Accumulated Other Comprehensive Income (Loss), Net of Tax



(Dollars in millions)	Cumulative Translation Adjustment $		Benefit Plans Unrecognized Prior Service Credits $		Unrealized Gains (Losses) on Cash Flow Hedges $		Unrealized Losses on Investments $		Accumulated Other Comprehensive Income (Loss) $
Balance at December 31, 2013	133		78		(39	)	(1	)	171
Period change	(201	)	(17	)	(230	)	—		(448	)
Balance at December 31, 2014	(68	)	61		(269	)	(1	)	(277	)
Period change	(216	)	68		35		—		(113	)
Balance at December 31, 2015	(284	)	129		(234	)	(1	)	(390	)

Amounts of other comprehensive income (loss) are presented net of applicable taxes. The Company records deferred income taxes on the cumulative translation adjustment related to branch operations and other entities included in the Company's consolidated U.S. tax return. No deferred income taxes are provided on the cumulative translation adjustment of subsidiaries outside the United States, as such cumulative translation adjustment is considered to be a component of indefinitely invested, unremitted earnings of these foreign subsidiaries.

Components of other comprehensive income recorded in the Consolidated Statements of Earnings, Comprehensive Income and Retained Earnings are presented below, before tax and net of tax effects:



	For years ended December 31,
	2015						2014						2013
(Dollars in millions)	Before Tax			Net of Tax			Before Tax			Net of Tax			Before Tax			Net of Tax
Other comprehensive income (loss)
Change in cumulative translation adjustment	$	(216	)	$	(216	)	$	(201	)	$	(201	)	$	27		$	28
Defined benefit pension and other postretirement benefit plans:
Prior service credit arising during the period	140			87			—			—			47			29
Amortization of unrecognized prior service credits included in net periodic costs	(30		)	(19		)	(28		)	(17		)	(26		)	(16		)
Change in defined benefit pension and other postretirement benefit plans	110			68			(28		)	(17		)	21			13
Derivatives and hedging:
Unrealized (loss) gain	(78		)	(48		)	(371		)	(230		)	10			6
Reclassification adjustment for loss (gain) included in net income	134			83			—			—			2			1
Change in derivatives and hedging	56			35			(371		)	(230		)	12			7
Total other comprehensive income (loss)	$	(50	)	$	(113	)	$	(600	)	$	(448	)	$	60		$	48

For additional information regarding the impact of reclassifications into earnings, refer to Note 10, "Derivatives" and Note 11, "Retirement Plans".