STOCKHOLDERS' EQUITY (Tables)

9 Months Ended

Sep. 30, 2017

Stockholders' Equity Note [Abstract]

Reconciliation of the changes in stockholders' equity

A reconciliation of the changes in stockholders' equity for first nine months 2017 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, 2016	$	2	$	1,915		$	5,721		$	(281	)	$	(2,825	)	$	4,532		$	76		$	4,608
Net Earnings	—		—			893			—			—			893			4			897
Cash Dividends Declared ⁽¹⁾ ($1.53 per share)	—		—			(223		)	—			—			(223		)	—			(223		)
Other Comprehensive Income	—		—			—			43			—			43			—			43
Share-Based Compensation Expense ⁽²⁾	—		40			—			—			—			40			—			40
Stock Option Exercises	—		19			—			—			—			19			—			19
Other	—		(6		)	—			—			—			(6		)	—			(6		)
Share Repurchases	—		—			—			—			(275		)	(275		)	—			(275		)
Distributions to Noncontrolling Interest	—		—			—			—			—			—			(4		)	(4		)
Balance at September 30, 2017	$	2	$	1,968		$	6,391		$	(238	)	$	(3,100	)	$	5,023		$	76		$	5,099


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


⁽²⁾	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, 2015	$	(284	)	$	129		$	(234	)	$	(1	)	$	(390	)
Period change	(97		)	34			172			—			109
Balance at December 31, 2016	(381		)	163			(62		)	(1		)	(281		)
Period change	60			(20		)	3			—			43
Balance at September 30, 2017	$	(321	)	$	143		$	(59	)	$	(1	)	$	(238	)

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
	2017						2016
(Dollars in millions)	Before Tax			Net of Tax			Before Tax			Net of Tax
Other comprehensive income (loss)
Change in cumulative translation adjustment	$	17		$	17		$	(42	)	$	(42	)
Defined benefit pension and other postretirement benefit plans:
Amortization of unrecognized prior service credits included in net periodic costs	(11		)	(7		)	(12		)	(7		)
Derivatives and hedging:
Unrealized gain (loss) during period	49			31			(11		)	(7		)
Reclassification adjustment for losses included in net income, net	10			7			30			19
Total other comprehensive income (loss)	$	65		$	48		$	(35	)	$	(37	)



	First Nine Months
	2017						2016
(Dollars in millions)	Before Tax			Net of Tax			Before Tax			Net of Tax
Other comprehensive income (loss)
Change in cumulative translation adjustment	$	60		$	60		$	(6	)	$	(6	)
Defined benefit pension and other postretirement benefit plans:
Amortization of unrecognized prior service credits included in net periodic costs	(33		)	(20		)	(34		)	(21		)
Derivatives and hedging:
Unrealized gain (loss) during period	(13		)	(8		)	21			13
Reclassification adjustment for losses included in net income, net	17			11			90			56
Total other comprehensive income (loss)	$	31		$	43		$	71		$	42