DERIVATIVE AND NON-DERIVATIVE FINANCIAL INSTRUMENTS (Tables)

3 Months Ended

Mar. 31, 2018

Derivative Instruments, Gain (Loss) [Line Items]

Cumulative basis adjustments for fair value hedges on balance sheet [Table Text Block]

As of March 31, 2018 and December 31, 2017, the following amounts were included on the Unaudited Consolidated Statements of Financial Position related to cumulative basis adjustments for fair value hedges.



(Dollars in millions)	Carrying amount of the hedged liabilities						Cumulative amount of fair value hedging loss adjustment included in the carrying amount of the hedged liability
Line item in the Unaudited Consolidated Statements of Financial Position in which the hedged item is included	March 31, 2018			December 31, 2017			March 31, 2018		December 31, 2017
Long-term borrowings ⁽¹⁾	$	(758	)	$	(760	)	$	12	$	10


⁽¹⁾	At March 31, 2018 and December 31, 2017, the cumulative amount of fair value hedging loss adjustment remaining for hedged liabilities for which hedge accounting has been discontinued was $7 million and $6 million, respectively.

Derivative Instruments, Gain (Loss) [Table Text Block]



Location and Amount of Gain or (Loss) Recognized in Earnings on Fair Value and Cash Flow Hedging Relationships
	First Quarter
	2018								2017
(Dollars in millions)	Sales		Cost of Sales			Net Interest Expense			Sales		Cost of Sales			Net Interest Expense
Total amounts of income and expense line items presented in the Unaudited Consolidated Statements of Earnings, Comprehensive Income and Retained Earnings in which the effects of fair value or cash flow hedges are recognized	$	2,607	$	2,026		$	59		$	2,303	$	1,698		$	60

The effects of fair value and cash flow hedging:
Gain or (loss) on fair value hedging relationships in Subtopic 815-20:
Interest contracts (fixed-for-floating interest rate swaps):
Hedged items						—								(1		)
Derivatives designated as hedging instruments						—								1
Gain or (loss) on cash flow hedging relationships in Subtopic 815-20:
Interest contracts (forward starting interest rate and treasury lock swap contracts):
Amount of loss reclassified from AOCI into earnings						(1		)						(1		)
Commodity Contracts:
Amount of loss reclassified from AOCI into earnings			(2		)						(7		)
Foreign Exchange Contracts:
Amount of gain reclassified from AOCI into earnings	3								12

Schedule of Notional Amounts of Outstanding Derivative Positions [Table Text Block]

The following table presents the notional amounts outstanding at March 31, 2018 and December 31, 2017 associated with Eastman's hedging programs.



Notional Outstanding		March 31, 2018	December 31, 2017

Derivatives designated as cash flow hedges:
Foreign Exchange Forward and Option Contracts (in millions)
	EUR/USD (in EUR)	€498	€525
Commodity Forward and Collar Contracts
	Feedstock (in million barrels)	7	7
	Energy (in million million british thermal units)	20	23

Derivatives designated as fair value hedges:
Fixed-for-floating interest rate swaps (in millions)		$75	$75

Derivatives designated as net investment hedges:
Cross-currency interest rate swaps (in millions)
	EUR/USD (in EUR)	€416	—

Non-derivatives designated as net investment hedges:
Foreign Currency Net Investment Hedges (in millions)
	EUR/USD (in EUR)	€1,241	€1,240

Schedule of Derivative Instruments, Effect on Other Comprehensive Income (Loss)

The following table presents the effect of cash flow and net investment hedge accounting on OCI for first quarter 2018 and 2017:



(Dollars in millions)	Change in amount of after tax gain (loss) recognized in OCI on derivatives						Pre-tax amount of gain (loss) reclassified from OCI into earnings
	March 31,						March 31,
Hedging Relationships	2018			2017			2018			2017
Derivatives in cash flow hedging relationships:
Commodity contracts	$	(11	)	$	(16	)	$	(2	)	$	(7	)
Foreign exchange contracts	(13		)	(10		)	3			12
Forward starting interest rate and treasury lock swap contracts	1			1			(1		)	(1		)
Non-derivatives in net investment hedging relationships (pre-tax):
Net investment hedges	(42		)	(18		)	—			—
Derivatives in net investment hedging relationships (pre-tax):
Cross-currency interest rate swaps	(11		)	—			—			—
Cross-currency interest rate swaps excluded component	(11		)	—			—			—

Financial assets and liabilities valued on a recurring basis

The following table presents the financial assets and liabilities valued on a recurring and gross basis and includes where the financial assets and liabilities are located within the Unaudited Consolidated Statements of Financial Position as of March 31, 2018 and December 31, 2017.



The Financial Position and Fair Value Measurements of Hedging Instruments on a Gross Basis
(Dollars in millions)
Derivative Type	Statements of Financial Position Classification	March 31, 2018 Level 2		December 31, 2017 Level 2
Derivatives designated as cash flow hedges:
Commodity contracts	Other current assets	$	5	$	9
Commodity contracts	Other noncurrent assets	2		4
Foreign exchange contracts	Other current assets	15		23
Foreign exchange contracts	Other noncurrent assets	1		2

Derivatives designated as fair value hedges:
Fixed-for-floating interest rate swap	Other current assets	—		1
Total Derivative Assets		$	23	$	39

Derivatives designated as cash flow hedges:
Commodity contracts	Payables and other current liabilities	$	31	$	28
Commodity contracts	Other long-term liabilities	10		10
Foreign exchange contracts	Payables and other current liabilities	10		6
Foreign exchange contracts	Other long-term liabilities	9		4

Derivatives designated as fair value hedges:
Fixed-for-floating interest rate swap	Long-term borrowings	5		4

Derivatives designated as net investment hedges:
Cross-currency interest rate swaps	Long-term borrowings	22		—
Total Derivative Liabilities		$	87	$	52
Total Net Derivative Liabilities		$	64	$	13