STOCKHOLDERS' EQUITY

3 Months Ended

Mar. 31, 2020

Stockholders' Equity Note [Abstract]

Reconciliations of the changes in stockholders' equity for first quarter 2020 and 2019 are provided below:


(Dollars in millions, except per share amount)	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, 2019	$	2	$	2,105	$	7,965	$	(214)	$	(3,900)	$	5,958	$	74	$	6,032

Net Earnings	—		—		258		—		—		258		2		260
Cash Dividends Declared⁽¹⁾ ($0.66 per share)	—		—		(90)		—		—		(90)		—		(90)
Other Comprehensive Income (Loss)	—		—		—		17		—		17		—		17
Share Based Compensation Expense ⁽²⁾	—		15		—		—		—		15		—		15


Other ⁽³⁾	—		(11)		—		—		—		(11)		(1)		(12)
Share Repurchase	—		—		—		—		(30)		(30)		—		(30)

Balance at March 31, 2020	$	2	$	2,109	$	8,133	$	(197)	$	(3,930)	$	6,117	$	75	$	6,192


(Dollars in millions, except per share amount)	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 ⁽⁴⁾	—		—		(20)		20		—		—		—		—
Net Earnings	—		—		209		—		—		209		—		209
Cash Dividends Declared⁽¹⁾ ($0.62 per share)	—		—		(87)		—		—		(87)		—		(87)
Other Comprehensive Income (Loss)	—		—		—		31		—		31		—		31
Share Based Compensation Expense ⁽²⁾	—		18		—		—		—		18		—		18
Stock Option Exercises	—		4		—		—		—		4		—		4

Other ⁽³⁾	—		(10)		—		—		—		(10)		1		(9)
Share Repurchase	—		—		—		—		(125)		(125)		—		(125)

Balance at March 31, 2019	$	2	$	2,060	$	7,675	$	(194)	$	(3,700)	$	5,843	$	76	$	5,919

⁽¹⁾Cash dividends declared consists of cash dividends paid and dividends declared but unpaid.

⁽²⁾Share-based compensation expense is the fair value of share-based awards.

⁽³⁾Additional paid-in capital consists of value of shares withheld for employees' taxes on vesting of share-based compensation awards.

⁽⁴⁾On January 1, 2019, Eastman adopted ASU 2018-02 Income Statement - Reporting Comprehensive Income resulting in the reclassification of $20 million of stranded tax expense from AOCI to retained earnings.

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, 2018	$	(309)	$	106	$	(41)	$	(1)	$	(245)
Period change ⁽¹⁾	45		—		(14)		—		31
Balance at December 31, 2019	(264)		106		(55)		(1)		(214)
Period change	19		(7)		5		—		17
Balance at March 31, 2020	$	(245)	$	99	$	(50)	$	(1)	$	(197)

⁽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.

Amounts of other comprehensive income (loss) are presented net of applicable taxes. Eastman recognizes 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 recognized on the CTA of other subsidiaries outside the United States, because 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
	2020						2019
(Dollars in millions)	Before Tax		Net of Tax		Before Tax		Net of Tax
Other comprehensive income (loss)
Change in cumulative translation adjustment	$	19	$	19	$	30	$	30
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	10		7		13		10
Reclassification adjustment for (gains) losses included in net income, net	(3)		(2)		(3)		(2)

Total other comprehensive income (loss)	$	16	$	17	$	30	$	31