STOCKHOLDERS' EQUITY

A reconciliation of the changes in stockholders' equity for first three months 2018 is provided below:



(Dollars in millions)	Common Stock at Par Value		Additional Paid-in Capital			Retained Earnings			Accumulated Other Comprehensive Income (Loss)			Treasury Stock at Cost			Total Eastman Stockholders' Equity			Noncontrolling Interest			Total Equity
Balance at December 31, 2017	$	2	$	1,983		$	6,802		$	(209	)	$	(3,175	)	$	5,403		$	77		$	5,480
Cumulative Effect of Adoption of New Accounting Standards ⁽¹⁾	—		—			16			—			—			16			—			16
Net Earnings	—		—			290			—			—			290			—			290
Cash Dividends Declared ⁽²⁾ ($0.56 per share)	—		—			(82		)	—			—			(82		)	—			(82		)
Other Comprehensive Income	—		—			—			(3		)	—			(3		)	—			(3		)
Share-Based Compensation Expense ⁽³⁾	—		24			—			—			—			24			—			24
Stock Option Exercises	—		13			—			—			—			13			—			13
Other ⁽⁴⁾	—		(16		)	—			—			—			(16		)	—			(16		)
Share Repurchases	—		—			—			—			(100		)	(100		)	—			(100		)
Distributions to Noncontrolling Interest	—		—			—			—			—			—			(2		)	(2		)
Balance at March 31, 2018	$	2	$	2,004		$	7,026		$	(212	)	$	(3,275	)	$	5,545		$	75		$	5,620


⁽¹⁾	On January 1, 2018, the Company adopted new accounting standards for revenue recognition, income taxes, and derivatives and hedging which resulted in adjustments to beginning retained earnings. See Note 1, "Significant Accounting Policies", for specific amounts related to each standard.


⁽²⁾	Cash dividends declared includes cash dividends paid and dividends declared but unpaid.


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


⁽⁴⁾	Includes value of shares withheld for employees' taxes on vesting of share-based compensation awards.

Accumulated Other Comprehensive Income (Loss), Net of Tax



(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, 2016	$	(381	)	$	163		$	(62	)	$	(1	)	$	(281	)
Period change	85			(27		)	14			—			72
Balance at December 31, 2017	(296		)	136			(48		)	(1		)	(209		)
Period change	27			(7		)	(23		)	—			(3		)
Balance at March 31, 2018	$	(269	)	$	129		$	(71	)	$	(1	)	$	(212	)

Amounts of other comprehensive income (loss) are presented net of applicable taxes. Eastman records deferred income taxes

on the CTA related to branch operations and income from other entities included in the Company's consolidated U.S. tax return. No deferred income taxes are provided on the CTA of other subsidiaries outside the United States, as the CTA is considered to be a component of indefinitely invested, unremitted earnings of these foreign subsidiaries.

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:



	First Quarter
	2018						2017
(Dollars in millions)	Before Tax			Net of Tax			Before Tax			Net of Tax
Other comprehensive income (loss)
Change in cumulative translation adjustment	$	27		$	27		$	7		$	7
Defined benefit pension and other postretirement benefit plans:
Amortization of unrecognized prior service credits included in net periodic benefit costs	(10		)	(7		)	(11		)	(7		)
Derivatives and hedging:
Unrealized gain (loss) during period	(31		)	(23		)	(34		)	(21		)
Reclassification adjustment for (gains) losses included in net income, net	—			—			(6		)	(4		)
Total other comprehensive income (loss)	$	(14	)	$	(3	)	$	(44	)	$	(25	)