STOCKHOLDERS' EQUITY (Tables)

3 Months Ended

Mar. 31, 2019

Stockholders' Equity Note [Abstract]

Reconciliation of the changes in stockholders' equity

A reconciliation of the changes in stockholders' equity for first three months 2019 and 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, 2018	$	2	$	2,048		$	7,573		$	(245	)	$	(3,575	)	$	5,803		$	75	$	5,878
Cumulative Effect of Adoption of New Accounting Standards ⁽¹⁾	—		—			(20		)	20			—			—			—		—
Net Earnings	—		—			209			—			—			209			—		209
Cash Dividends Declared ⁽²⁾ ($0.62 per share)	—		—			(87		)	—			—			(87		)	—		(87		)
Other Comprehensive Income	—		—			—			31			—			31			—		31
Share-Based Compensation Expense ⁽³⁾	—		18			—			—			—			18			—		18
Stock Option Exercises	—		4			—			—			—			4			—		4
Other ⁽⁴⁾	—		(10		)	—			—			—			(10		)	1		(9		)
Share Repurchases	—		—			—			—			(125		)	(125		)	—		(125		)
Balance at March 31, 2019	$	2	$	2,060		$	7,675		$	(194	)	$	(3,700	)	$	5,843		$	76	$	5,919



(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 ⁽⁵⁾	—		—			16			—			—			16			—			16
Net Earnings	—		—			290			—			—			290			—			290
Cash Dividends Declared ⁽²⁾ ($0.56 per share)	—		—			(82		)	—			—			(82		)	—			(82		)
Other Comprehensive Loss	—		—			—			(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, 2019, the Company adopted a new accounting standard for reporting comprehensive income, which resulted in a reclassification of stranded tax effects from the Tax Reform Act from AOCI to retained earnings. See Note 1, "Significant Accounting Policies", for additional information.


⁽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⁾	Additional paid-in capital includes value of shares withheld for employees' taxes on vesting of share-based compensation awards.


⁽⁵⁾	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", to the consolidated financial statements in Part II, Item 8 of the Company's 2018 Annual Report on Form 10-K for specific amounts related to each standard.

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, 2017	$	(296	)	$	136		$	(48	)	$	(1	)	$	(209	)
Period change	(13		)	(30		)	7			—			(36		)
Balance at December 31, 2018	(309		)	106			(41		)	(1		)	(245		)
Period change ⁽¹⁾	30			22			(1		)	—			51
Balance at March 31, 2019	$	(279	)	$	128		$	(42	)	$	(1	)	$	(194	)


⁽¹⁾	Benefit plans unrecognized prior service credits includes $29 million reclassification of stranded tax expense from AOCI to retained earnings and unrealized gains (losses) on derivative instruments includes $9 million reclassification of stranded tax benefit from AOCI to retained earnings. See Note 1, "Significant Accounting Policies", for additional information.

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:



	First Quarter
	2019						2018
(Dollars in millions)	Before Tax			Net of Tax			Before Tax			Net of Tax
Other comprehensive income (loss)
Change in cumulative translation adjustment	$	30		$	30		$	27		$	27
Defined benefit pension and other postretirement benefit plans:
Amortization of unrecognized prior service credits	(10		)	(7		)	(10		)	(7		)
Derivatives and hedging:
Unrealized gain (loss) during period	13			10			(31		)	(23		)
Reclassification adjustment for (gains) losses included in net income, net	(3		)	(2		)	—			—
Total other comprehensive income (loss)	$	30		$	31		$	(14	)	$	(3	)