RETIREMENT PLANS

9 Months Ended

Sep. 30, 2019

Defined Benefit Pension Plans and Other Postretirement Benefit Plans

Eastman maintains defined benefit pension plans that provide eligible employees with retirement benefits. In addition, Eastman provides life insurance for eligible retirees hired prior to January 1, 2007. The Company provides a subsidy for pre-Medicare health care and dental benefits to eligible retirees hired prior to January 1, 2007 that will end on December 31, 2021. Company funding is also provided for eligible Medicare retirees hired prior to January 1, 2007 with a health reimbursement arrangement. Costs recognized for these benefits are estimated amounts, which may change as actual costs for the year are determined.

For additional information regarding retirement plans, see Note 10, "Retirement Plans", to the consolidated financial statements in Part II, Item 8 of the Company's 2018 Annual Report on Form 10-K.

Components of net periodic benefit (credit) cost were as follows:



	Third Quarter
	Pension Plans												Other Postretirement Benefit Plans
	2019						2018						2019			2018
(Dollars in millions)	U.S.			Non-U.S.			U.S.			Non-U.S.
Service cost	$	6		$	4		$	9		$	3		$	—		$	—
Interest cost	19			5			16			5			6			6
Expected return on assets	(31		)	(8		)	(36		)	(9		)	(2		)	(2		)
Amortization of:
Prior service credit, net	—			—			—			—			(9		)	(10		)
Net periodic benefit (credit) cost	$	(6	)	$	1		$	(11	)	$	(1	)	$	(5	)	$	(6	)

	First Nine Months
	Pension Plans												Other Postretirement Benefit Plans
	2019						2018						2019			2018
(Dollars in millions)	U.S.			Non-U.S.			U.S.			Non-U.S.
Service cost	$	20		$	11		$	26		$	11		$	—		$	—
Interest cost	57			15			50			15			19			17
Expected return on assets	(96		)	(24		)	(110		)	(28		)	(4		)	(4		)
Amortization of:
Prior service credit, net	—			—			—			—			(29		)	(30		)
Net periodic benefit (credit) cost	$	(19	)	$	2		$	(34	)	$	(2	)	$	(14	)	$	(17	)