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DERIVATIVE AND NON-DERIVATIVE FINANCIAL INSTRUMENTS (Tables)

9 Months Ended

Sep. 30, 2021

Derivative Instruments, Gain (Loss) [Line Items]

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

As of September 30, 2021 and December 31, 2020, the following amounts were included in 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, 2021						December 31, 2020						September 30, 2021						December 31, 2020
Long-term borrowings (1)						$	773					$	772					$	(1)					$	(1)

(1)At September 30, 2021 and December 31, 2020, the cumulative amount of fair value hedging loss adjustment remaining for hedged liabilities for which hedge accounting has been discontinued was $3 million and $5 million, respectively.

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 2021 and 2020.

Location and Amount of Gain or (Loss) Recognized in Earnings from Fair Value and Cash Flow Hedging Relationships
						Third Quarter
						2021																		2020
(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						$	2,720					$	2,058					$	49					$	2,122					$	1,621					$	52
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																		—																		—
Derivatives designated as hedging instruments																		—																		—
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												9																		(5)
Foreign Exchange Contracts:
Amount reclassified from AOCI into earnings						—																		—

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 2021 and 2020.

Location and Amount of Gain or (Loss) Recognized in Earnings from Fair Value and Cash Flow Hedging Relationships
						First Nine Months
						2021																		2020
(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						$	7,782					$	5,841					$	150					$	6,287					$	4,838					$	159
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																		1
Derivatives designated as hedging instruments																		(1)																		(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																		(7)																		(7)
Commodity Contracts:
Amount reclassified from AOCI into earnings												4																		(26)
Foreign Exchange Contracts:
Amount reclassified from AOCI into earnings						(10)																		12

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

The following table presents the notional amounts outstanding at September 30, 2021 and December 31, 2020 associated with Eastman's hedging programs.

Notional Outstanding									September 30, 2021						December 31, 2020
Derivatives designated as cash flow hedges:
Foreign Exchange Forward and Option Contracts (in millions)
			EUR/USD (in EUR)						€467						€521
Commodity Forward and Collar Contracts
			Feedstock (in million barrels)						2						—
			Energy (in million british thermal units)						17						17
Interest rate swaps for the future issuance of debt (in millions)									$75						$75
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)						€853						€853
Non-derivatives designated as net investment hedges:
Foreign Currency Net Investment Hedges (in millions)
			EUR/USD (in EUR)						€1,245						€1,245

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 2021 and 2020.

						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						2021						2020						2021						2020						2021						2020						2021						2020
Derivatives in cash flow hedging relationships:
Commodity contracts						$	40					$	10					$	55					$	20					$	9					$	(5)					$	4					$	(26)
Foreign exchange contracts						11						(20)						33						(19)						—						—						(10)						12
Forward starting interest rate and treasury lock swap contracts						2						2						8						5						(2)						(2)						(7)						(7)
Non-derivatives in net investment hedging relationships (pre-tax):
Net investment hedges						36						(62)						86						(59)						—						—						—						—
Derivatives in net investment hedging relationships (pre-tax):
Cross-currency interest rate swaps						23						(44)						55						(45)						—						—						—						—
Cross-currency interest rate swaps excluded component						(2)						(13)						(7)						25						—						—						—						—

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 within the Unaudited Consolidated Statements of Financial Position as of September 30, 2021 and December 31, 2020.

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, 2021 Level 2						December 31, 2020 Level 2
Derivatives designated as cash flow hedges:
Commodity contracts						Other current assets						$	73					$	1
Commodity contracts						Other noncurrent assets						2						—
Foreign exchange contracts						Other current assets						8						—
Foreign exchange contracts						Other noncurrent assets						5						—
Forward starting interest rate swap contracts						Other noncurrent assets						5						1
Derivatives designated as fair value hedges:
Fixed-for-floating interest rate swap						Other current assets						—						1
Fixed-for-floating interest rate swap						Other noncurrent assets						2						4
Derivatives designated as net investment hedges:
Cross-currency interest rate swaps						Other current assets						16						—
Cross-currency interest rate swaps						Other noncurrent assets						31						40
Total Derivative Assets												$	142					$	47
Derivatives designated as cash flow hedges:
Commodity contracts						Payables and other current liabilities						$	—					$	6
Foreign exchange contracts						Payables and other current liabilities						2						21
Foreign exchange contracts						Other long-term liabilities						1						14
Derivatives designated as net investment hedges:
Cross-currency interest rate swaps						Other long-term liabilities						11						51
Total Derivative Liabilities												$	14					$	92
Total Net Derivative Assets (Liabilities)												$	128					$	(45)

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