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COMMITMENTS | 12 Months Ended
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Dec. 31, 2017
Commitments and Contingencies Disclosure [Abstract] |
COMMITMENTS | COMMITMENTS AND OFF BALANCE SHEET ARRANGEMENTS Eastman's obligations are summarized in the following table.
(Dollars in millions) |  | Payments Due for
Period |  | Debt Securities |  | Credit Facilities and Other |  | Interest Payable |  | Purchase Obligations |  | Operating Leases |  | Other Liabilities |  | Total
2018 |  | $ | — |  |  | $ | 393 |  |  | $ | 228 |  |  | $ | 230 |  |  | $ | 67 |  |  | $ | 234 |  |  | $ | 1,152 |
2019 |  | 250 |  |  | 1 |  |  | 229 |  |  | 222 |  |  | 55 |  |  | 85 |  |  | 842 |
2020 |  | 797 |  |  | — |  |  | 207 |  |  | 184 |  |  | 44 |  |  | 90 |  |  | 1,322 |
2021 |  | 185 |  |  | 200 |  |  | 190 |  |  | 92 |  |  | 34 |  |  | 91 |  |  | 792 |
2022 |  | 738 |  |  | — |  |  | 178 |  |  | 160 |  |  | 23 |  |  | 92 |  |  | 1,191 |
2023 and beyond |  | 3,976 |  |  | — |  |  | 1,619 |  |  | 2,032 |  |  | 47 |  |  | 1,056 |  |  | 8,730 |
Total |  | $ | 5,946 |  |  | $ | 594 |  |  | $ | 2,651 |  |  | $ | 2,920 |  |  | $ | 270 |  |  | $ | 1,648 |  |  | $ | 14,029 |
Estimated future payments of debt securities assumes the repayment of principal upon stated maturity, and actual amounts and the timing of such payments may differ materially due to repayment or other changes in the terms of such debt prior to maturity. Eastman had various purchase obligations at December 31, 2017 totaling approximately $2.9 billion over a period of approximately 30 years for materials, supplies, and energy incident to the ordinary conduct of business. The Company also had various lease commitments for property and equipment under cancelable, noncancelable, and month-to-month operating leases totaling approximately $270 million over a period of approximately 40 years. Of the total lease commitments, approximately 50 percent relate to real property, including office space, storage facilities, and land; approximately 40 percent relate to railcars; and approximately 10 percent relate to machinery and equipment, including computer and communications equipment and production equipment. Rental expense, net of sublease income, was $94 million, $90 million, and $79 million in 2017, 2016, and 2015, respectively. Amounts in other liabilities represent the current estimated cash payments required to be made by the Company primarily for pension and other postretirement benefits, environmental loss contingency reserves, accrued compensation benefits, uncertain tax liabilities, one-time transition tax on deferred foreign income under the 2017 Tax Cuts and Jobs Act, and commodity and foreign exchange hedging in the periods indicated. Due to uncertainties in the timing of the effective settlement of tax positions with respect to taxing authorities, management is unable to determine the timing of payments related to uncertain tax liabilities and these amounts are included in the "2023 and beyond" line item. Guarantees Eastman has operating leases with terms that require the Company to guarantee a portion of the residual value of the leased assets upon termination of the lease as well as other guarantees. Disclosures about each group of similar guarantees are provided below. Residual Value Guarantees The Company has operating leases with terms that require the Company to guarantee a portion of the residual value of the leased assets upon termination of the lease. These residual value guarantees totaled $71 million at December 31, 2017 and consist primarily of leases for railcars that will expire beginning in third quarter 2018. Residual guarantee payments that become probable and estimable are accrued to rent expense over the remaining life of the applicable lease. Management's current expectation is that the likelihood of material residual guarantee payments is remote. Other Guarantees Guarantees and claims also arise during the ordinary course of business from relationships with customers, suppliers, joint venture partners, and other parties when the Company undertakes an obligation to guarantee the performance of others, if specified triggering events occur. Non-performance under a contract could trigger an obligation of the Company. The Company's current other guarantees include guarantees relating to intellectual property, environmental matters, and other indemnifications and have arisen through the normal course of business. The ultimate effect on future financial results is not subject to reasonable estimation because considerable uncertainty exists as to the final outcome of these claims, if they were to occur. These other guarantees have terms up to 30 years with maximum potential future payments of approximately $35 million in the aggregate, with none of these guarantees being individually significant to the Company's operating results, financial position, or liquidity. The Company's current expectation is that future payment or performance related to non-performance under other guarantees is remote. Other Off Balance Sheet Arrangements The Company has off balance sheet non-recourse factoring facilities with various commitment dates. These arrangements include customer specific receivables in the United States and Europe. The Company sells the receivables at face value which equals the carrying value and fair value, and thus no gain or loss is recognized. There is no continuing involvement with these receivables once sold and no credit loss exposure. The total amount of cumulative receivables sold in 2017 was $35 million.

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- Definition The entire disclosure for significant arrangements with third parties, which includes operating lease arrangements and arrangements in which the entity has agreed to expend funds to procure goods or services, or has agreed to commit resources to supply goods or services, and operating lease arrangements. Descriptions may include identification of the specific goods and services, period of time covered, minimum quantities and amounts, and cancellation rights. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 440 -URI http://asc.fasb.org/topic&trid=2144648 + Details
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