STOCKHOLDERS' EQUITY (Tables)

9 Months Ended

Sep. 30, 2016

Stockholders' Equity Note [Abstract]

Reconciliation of the changes in stockholders' equity

A reconciliation of the changes in stockholders' equity for first nine months 2016 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, 2015	$	2	$	1,863	$	5,146		$	(390	)	$	(2,680	)	$	3,941		$	80		$	4,021
Net Earnings	—		—		738			—			—			738			3			741
Cash Dividends Declared ⁽¹⁾ ($1.38 per share)	—		—		(204		)	—			—			(204		)	—			(204		)
Other Comprehensive Income ⁽²⁾	—		—		—			42			—			42			—			42
Share-Based Compensation Expense ⁽³⁾	—		27		—			—			—			27			—			27
Stock Option Exercises	—		17		—			—			—			17			—			17
Share Repurchase	—		—		—			—			(120		)	(120		)	—			(120		)
Distributions to Noncontrolling Interest	—		—		—			—			—			—			(8		)	(8		)
Balance at September 30, 2016	$	2	$	1,907	$	5,680		$	(348	)	$	(2,800	)	$	4,441		$	75		$	4,516


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


⁽²⁾	See Note 1, "Basis of Presentation" regarding correction of prior period foreign currency translation.


⁽³⁾	Share-based compensation expense is the fair value of share-based awards.

Accumulated Other Comprehensive Income (Loss)



(Dollars in millions)	Cumulative Translation Adjustment			Benefit Plans Unrecognized Prior Service Credits			Unrealized Gains (Losses) on Derivative Instruments			Unrealized Losses on Investments			Accumulated Other Comprehensive Income (Loss)
Balance at December 31, 2014	$	(68	)	$	61		$	(269	)	$	(1	)	$	(277	)
Period change	(216		)	68			35			—			(113		)
Balance at December 31, 2015	(284		)	129			(234		)	(1		)	(390		)
Period change ⁽¹⁾	(6		)	(21		)	69			—			42
Balance at September 30, 2016	$	(290	)	$	108		$	(165	)	$	(1	)	$	(348	)


⁽¹⁾	See Note 1, "Basis of Presentation" regarding correction of prior period foreign currency translation.

Schedule of components of comprehensive income (loss) before tax and net of tax effects

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



	Third Quarter
	2016						2015
(Dollars in millions)	Before Tax			Net of Tax			Before Tax			Net of Tax
Other comprehensive income (loss)
Change in cumulative translation adjustment ⁽¹⁾	$	(42	)	$	(42	)	$	(47	)	$	(47	)
Defined benefit pension and other postretirement benefit plans:
Amortization of unrecognized prior service credits included in net periodic costs ⁽²⁾	(12		)	(7		)	(7		)	(4		)
Derivatives and hedging: ⁽³⁾
Unrealized loss during period	(11		)	(7		)	(107		)	(66		)
Reclassification adjustment for losses included in net income, net	30			19			55			34
Total other comprehensive income (loss)	$	(35	)	$	(37	)	$	(106	)	$	(83	)

	First Nine Months
	2016						2015
(Dollars in millions)	Before Tax			Net of Tax			Before Tax			Net of Tax
Other comprehensive income (loss)
Change in cumulative translation adjustment ⁽¹⁾	$	(6	)	$	(6	)	$	(183	)	$	(183	)
Defined benefit pension and other postretirement benefit plans:
Amortization of unrecognized prior service credits included in net periodic costs ⁽²⁾	(34		)	(21		)	(24		)	(15		)
Derivatives and hedging:⁽³⁾
Unrealized gain (loss) during period	21			13			(44		)	(27		)
Reclassification adjustment for losses included in net income, net	90			56			90			56
Total other comprehensive income (loss)	$	71		$	42		$	(161	)	$	(169	)


⁽¹⁾	See Note 1, "Basis of Presentation" regarding correction of prior period foreign currency translation.


⁽²⁾	Included in the calculation of net periodic benefit costs for pension and other postretirement benefit plans. See Note 9, "Retirement Plans".


⁽³⁾	For additional information regarding the impact of reclassifications into earnings, see Note 8, "Derivative and Non-Derivative Financial Instruments".