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STOCKHOLDERS' EQUITY | 12 Months Ended
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Dec. 31, 2016
Stockholders' Equity Note [Abstract] |
STOCKHOLDERS' EQUITY | STOCKHOLDERS' EQUITY A reconciliation of the changes in stockholders' equity for 2016, 2015, and 2014 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, 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 | — |  |  | (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 | — |  |  | 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 |
Net Earnings | — |  |  | — |  |  | 854 |  |  | — |  |  | — |  |  | 854 |  |  | 5 |  |  | 859 |
Cash Dividends (1) | — |  |  | — |  |  | (279 | ) |  | — |  |  | — |  |  | (279 | ) |  | — |  |  | (279 | )
Other Comprehensive Loss (3) | — |  |  | — |  |  | — |  |  | 109 |  |  | — |  |  | 109 |  |  | — |  |  | 109 |
Share-Based Compensation Expense (2) | — |  |  | 35 |  |  | — |  |  | — |  |  | — |  |  | 35 |  |  | — |  |  | 35 |
Stock Option Exercises | — |  |  | 21 |  |  | — |  |  | — |  |  | — |  |  | 21 |  |  | — |  |  | 21 |
Other | — |  |  | (4 | ) |  | — |  |  | — |  |  | — |  |  | (4 | ) |  | (1 | ) |  | (5 | )
Share Repurchase | — |  |  | — |  |  | — |  |  | — |  |  | (145 | ) |  | (145 | ) |  | — |  |  | (145 | )
Distributions to noncontrolling interest | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (8 | ) |  | (8 | )
Balance at December 31, 2016 | $ | 2 |  |  | $ | 1,915 |  |  | $ | 5,721 |  |  | $ | (281 | ) |  | $ | (2,825 | ) |  | $ | 4,532 |  |  | $ | 76 |  |  | $ | 4,608 |
(1) | Cash dividends includes cash dividends paid and dividends declared, but unpaid.
(2) | Share-based compensation expense is the fair value of share-based awards.
(3) | See Note 1, "Significant Accounting Policies", regarding correction of prior period foreign currency translation.
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 $1.89 in 2016, $1.66 in 2015, and $1.45 in 2014. 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 2016, 2015, and 2014 are primarily for compensation expense of equity awards and employee stock option exercises. 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, 2016, a total of 6,542,190 shares have been repurchased under this authorization for a total of $498 million. During 2016, the Company repurchased 2,131,501 shares of common stock for a cost of approximately $145 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. The Company's charitable foundation held 50,798 shares of the Company's common stock at December 31, 2016, 2015, and 2014 which are included in treasury stock. The following table sets forth the computation of basic and diluted earnings per share ("EPS") from continuing operations:
| For years ended December 31,
(In millions, except per share amounts) | 2016 |  | 2015 |  | 2014
Numerator |  |  |  |  |
Earnings attributable to Eastman stockholders: |  |  |  |  |
Earnings from continuing operations, net of tax | $ | 854 |  |  | $ | 848 |  |  | $ | 749 |
Denominator |  |  |  |  |
Weighted average shares used for basic EPS | 147.3 |  |  | 148.6 |  |  | 149.5 |
Dilutive effect of stock options and other award plans | 1.1 |  |  | 1.2 |  |  | 1.6 |
Weighted average shares used for diluted EPS | 148.4 |  |  | 149.8 |  |  | 151.1 |
EPS from continuing operations (1) |  |  |  |  |
Basic | $ | 5.80 |  |  | $ | 5.71 |  |  | $ | 5.01 |
Diluted | $ | 5.75 |  |  | $ | 5.66 |  |  | $ | 4.95 |
(1) | Earnings per share are calculated using whole dollars and shares.
Stock options excluded from the 2016 calculation of diluted earnings per share were 1,072,468 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 2015 and 2014 calculations of diluted earnings per share were 768,134 and 272,143, respectively, because the market value of option exercises for these awards was less than the cash proceeds that would be received from these exercises.
| For years ended December 31,
Shares of common stock issued (1) | 2016 |  | 2015 |  | 2014
Balance at beginning of year | 216,899,964 |  |  | 216,256,971 |  |  | 215,131,237 |
Issued for employee compensation and benefit plans | 807,636 |  |  | 642,993 |  |  | 1,125,734 |
Balance at end of year | 217,707,600 |  |  | 216,899,964 |  |  | 216,256,971 |
(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, 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) | (97 | ) |  | 34 |  |  | 172 |  |  | — |  |  | 109 |
Balance at December 31, 2016 | $ | (381 | ) |  | $ | 163 |  |  | $ | (62 | ) |  | $ | (1 | ) |  | $ | (281 | )
(1) | See Note 1, "Significant Accounting Policies", regarding correction of prior period foreign currency translation.
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,
| 2016 |  | 2015 |  | 2014
(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 | $ | (97 | ) |  | $ | (97 | ) |  | $ | (216 | ) |  | $ | (216 | ) |  | $ | (201 | ) |  | $ | (201 | )
Defined benefit pension and other postretirement benefit plans: |  |  |  |  |  |  |  |  |  |  |  |
Prior service credit arising during the period | 103 |  |  | 64 |  |  | 140 |  |  | 87 |  |  | — |  |  | — |
Amortization of unrecognized prior service credits included in net periodic costs | (48 | ) |  | (30 | ) |  | (30 | ) |  | (19 | ) |  | (28 | ) |  | (17 | )
Change in defined benefit pension and other postretirement benefit plans | 55 |  |  | 34 |  |  | 110 |  |  | 68 |  |  | (28 | ) |  | (17 | )
Derivatives and hedging: |  |  |  |  |  |  |  |  |  |  |  |
Unrealized gain (loss) | 150 |  |  | 93 |  |  | (78 | ) |  | (48 | ) |  | (371 | ) |  | (230 | )
Reclassification adjustment for loss included in net income | 127 |  |  | 79 |  |  | 134 |  |  | 83 |  |  | — |  |  | — |
Change in derivatives and hedging | 277 |  |  | 172 |  |  | 56 |  |  | 35 |  |  | (371 | ) |  | (230 | )
Total other comprehensive income (loss) | $ | 235 |  |  | $ | 109 |  |  | $ | (50 | ) |  | $ | (113 | ) |  | $ | (600 | ) |  | $ | (448 | )
For additional information regarding the impact of reclassifications into earnings, refer to Note 10, "Derivative and Non-Derivative Financial Instruments" and Note 11, "Retirement Plans".

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- Definition The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -SubTopic 10 -Section S99 -Paragraph 4 -Subparagraph (SAB Topic 4.E) -URI http://asc.fasb.org/extlink&oid=27010918&loc=d3e74567-122707 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21484-112644 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02(29)) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 5 -URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21488-112644 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(e)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02(31)) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section S99 -Paragraph 4 -Subparagraph (SAB Topic 4.C) -URI http://asc.fasb.org/extlink&oid=27012166&loc=d3e187143-122770 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02(30)) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 6 -URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21506-112644 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(d)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.3-04) -URI http://asc.fasb.org/extlink&oid=27012166&loc=d3e187085-122770 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 30 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6405834&loc=d3e23285-112656 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21475-112644 Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Glossary Preferred Stock -URI http://asc.fasb.org/extlink&oid=6521494 Reference 15: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21463-112644 Reference 16: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 11 -URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21564-112644 + Details
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