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DERIVATIVE AND NON-DERIVATIVE FINANCIAL INSTRUMENTS (Tables)

9 Months Ended

Sep. 30, 2019

Derivative Instruments, Gain (Loss) [Line Items]

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

As of September 30, 2019 and December 31, 2018, 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		September 30, 2019				December 31, 2018				September 30, 2019				December 31, 2018
Long-term borrowings (1)		$	763			$	759			$	(7	)		$	(12	)

⁽¹⁾ 

At both September 30, 2019 and December 31, 2018, the cumulative amount of fair value hedging loss adjustment remaining for hedged liabilities for which hedge accounting has been discontinued was $7 million.

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

The following table presents the effect of fair value and cash flow hedge accounting on the Unaudited Consolidated Statements of Earnings, Comprehensive Income and Retained Earnings for third quarter 2019 and 2018.

Location and Amount of Gain or (Loss) Recognized in Earnings on Fair Value and Cash Flow Hedging Relationships
		Third Quarter
		2019												2018
(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		$	2,325			$	1,751			$	54			$	2,547			$	1,819			$	58
The effects of fair value and cash flow hedging:
Gain or (loss) on fair value hedging relationships:
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:
Interest contracts (forward starting interest rate and treasury lock swap contracts):
Amount reclassified from AOCI into earnings										(2		)										(2		)
Commodity Contracts:
Amount reclassified from AOCI into earnings						(14		)										8
Foreign Exchange Contracts:
Amount reclassified from AOCI into earnings		7												7

The following table presents the effect of fair value and cash flow hedge accounting on the Unaudited Consolidated Statements of Earnings, Comprehensive Income and Retained Earnings for first nine months 2019 and 2018.

Location and Amount of Gain or (Loss) Recognized in Earnings on Fair Value and Cash Flow Hedging Relationships
		First Nine Months
		2019												2018
(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		$	7,068			$	5,331			$	165			$	7,775			$	5,762			$	178
The effects of fair value and cash flow hedging:
Gain or (loss) on fair value hedging relationships:
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:
Interest contracts (forward starting interest rate and treasury lock swap contracts):
Amount reclassified from AOCI into earnings										(4		)										(4		)
Commodity Contracts:
Amount reclassified from AOCI into earnings						(25		)										3
Foreign Exchange Contracts:
Amount reclassified from AOCI into earnings		20												18

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

The following table presents the notional amounts outstanding at September 30, 2019 and December 31, 2018 associated with Eastman's hedging programs.

Notional Outstanding			September 30, 2019			December 31, 2018
Derivatives designated as cash flow hedges:
Foreign Exchange Forward and Option Contracts (in millions)
	EUR/USD (in EUR)		€603			€263
Commodity Forward and Collar Contracts
	Feedstock (in million barrels)		2			5
	Energy (in million british thermal units)		33			40
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)		€851			€851
Non-derivatives designated as net investment hedges:
Foreign Currency Net Investment Hedges (in millions)
	EUR/USD (in EUR)		€1,242			€1,241

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

The following table presents the effect of the Company's hedging instruments on "Other comprehensive income (loss), net of tax" ("OCI") and financial performance for third quarter and first nine months 2019 and 2018.

		Change in amount of after tax gain (loss) recognized in OCI on derivatives																Pre-tax amount of gain (loss) reclassified from OCI into earnings
(Dollars in millions)		Third Quarter								First Nine Months								Third Quarter								First Nine Months
Hedging Relationships		2019				2018				2019				2018				2019				2018				2019				2018
Derivatives in cash flow hedging relationships:
Commodity contracts		$	(1	)		$	28			$	(7	)		$	57			$	(14	)		$	8			$	(25	)		$	3
Foreign exchange contracts		16				(2		)		10				5				7				7				20				18
Forward starting interest rate and treasury lock swap contracts		1				1				3				3				(2		)		(2		)		(4		)		(4		)
Non-derivatives in net investment hedging relationships (pre-tax):
Net investment hedges		60				12				68				51				—				—				—				—
Derivatives in net investment hedging relationships (pre-tax):
Cross-currency interest rate swaps		40				3				46				18				—				—				—				—
Cross-currency interest rate swaps excluded component		9				(1		)		22				(12		)		—				—				—				—

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 September 30, 2019 and December 31, 2018.

The Financial Position and Fair Value Measurements of Hedging Instruments on a Gross Basis
(Dollars in millions)
Derivative Type		Statements of Financial Position Classification		September 30, 2019 Level 2				December 31, 2018 Level 2
Derivatives designated as cash flow hedges:
Commodity contracts		Other current assets		$	1			$	4
Foreign exchange contracts		Other current assets		23				15
Foreign exchange contracts		Other noncurrent assets		9				4
Derivatives designated as fair value hedges:
Fixed-for-floating interest rate swap		Other current assets		—				1
Derivatives designated as net investment hedges:
Cross-currency interest rate swaps		Other noncurrent assets		94				26
Total Derivative Assets				$	127			$	50
Derivatives designated as cash flow hedges:
Commodity contracts		Payables and other current liabilities		$	26			$	24
Commodity contracts		Other long-term liabilities		5				5
Derivatives designated as fair value hedges:
Fixed-for-floating interest rate swap		Long-term borrowings		—				4
Total Derivative Liabilities				$	31			$	33
Total Net Derivative Assets (Liabilities)				$	96			$	17

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