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STOCKHOLDERS' EQUITY (Tables) | 6 Months Ended
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Jun. 30, 2022
Stockholders' Equity Note [Abstract] |
Reconciliation of the changes in stockholders' equity | Reconciliations of the changes in stockholders' equity for second quarter 2022 and 2021 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 March 31, 2022 | $ | 2 |  |  | $ | 2,262 |  |  | $ | 8,694 |  |  | $ | (145) |  |  | $ | (4,920) |  |  | $ | 5,893 |  |  | $ | 84 |  |  | $ | 5,977 |
Net Earnings | — |  |  | — |  |  | 256 |  |  | — |  |  | — |  |  | 256 |  |  | 1 |  |  | 257 |
Cash Dividends Declared (1) ($0.76 per share) | — |  |  | — |  |  | (93) |  |  | — |  |  | — |  |  | (93) |  |  | — |  |  | (93) |
Other Comprehensive Income (Loss) | — |  |  | — |  |  | — |  |  | 2 |  |  | — |  |  | 2 |  |  | — |  |  | 2 |
Share-Based Compensation Expense (2) | — |  |  | 17 |  |  | — |  |  | — |  |  | — |  |  | 17 |  |  | — |  |  | 17 |
Stock Option Exercises | — |  |  | 1 |  |  | — |  |  | — |  |  | — |  |  | 1 |  |  | — |  |  | 1 |
Other | — |  |  | (1) |  |  | — |  |  | — |  |  | — |  |  | (1) |  |  | (1) |  |  | (2) |
Share Repurchase (3) | — |  |  | (100) |  |  | — |  |  | — |  |  | (652) |  |  | (752) |  |  | — |  |  | (752) |
Balance at June 30, 2022 | $ | 2 |  |  | $ | 2,179 |  |  | $ | 8,857 |  |  | $ | (143) |  |  | $ | (5,572) |  |  | $ | 5,323 |  |  | $ | 84 |  |  | $ | 5,407 |
(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 March 31, 2021 | $ | 2 |  |  | $ | 2,219 |  |  | $ | 8,260 |  |  | $ | (248) |  |  | $ | (4,000) |  |  | $ | 6,233 |  |  | $ | 86 |  |  | $ | 6,319 |
Net Earnings (Loss) | — |  |  | — |  |  | (146) |  |  | — |  |  | — |  |  | (146) |  |  | 2 |  |  | (144) |
Cash Dividends Declared (1) ($0.69 per share) | — |  |  | — |  |  | (94) |  |  | — |  |  | — |  |  | (94) |  |  | — |  |  | (94) |
Other Comprehensive Income (Loss) | — |  |  | — |  |  | — |  |  | 15 |  |  | — |  |  | 15 |  |  | — |  |  | 15 |
Share-Based Compensation Expense (2) | — |  |  | 18 |  |  | — |  |  | — |  |  | — |  |  | 18 |  |  | — |  |  | 18 |
Stock Option Exercises | — |  |  | 21 |  |  | — |  |  | — |  |  | — |  |  | 21 |  |  | — |  |  | 21 |
Other | — |  |  | (3) |  |  | — |  |  | — |  |  | — |  |  | (3) |  |  | — |  |  | (3) |
Share Repurchase | — |  |  | — |  |  | — |  |  | — |  |  | (100) |  |  | (100) |  |  | — |  |  | (100) |
Distributions to noncontrolling interest | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (4) |  |  | (4) |
Balance at June 30, 2021 | $ | 2 |  |  | $ | 2,255 |  |  | $ | 8,020 |  |  | $ | (233) |  |  | $ | (4,100) |  |  | $ | 5,944 |  |  | $ | 84 |  |  | $ | 6,028 |
(1)Cash dividends declared consists of cash dividends paid and dividends declared but unpaid. (2)Share-based compensation expense is based on the fair value of share-based awards. (3)Additional paid-in capital includes payment for repurchase of shares under the second quarter 2022 accelerated share repurchase program ("2022 ASR") which were settled after June 30, 2022. Reconciliations of the changes in stockholders' equity for first six months 2022 and 2021 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, 2021 | $ | 2 |  |  | $ | 2,187 |  |  | $ | 8,557 |  |  | $ | (182) |  |  | $ | (4,860) |  |  | $ | 5,704 |  |  | $ | 84 |  |  | $ | 5,788 |
Net Earnings | — |  |  | — |  |  | 491 |  |  | — |  |  | — |  |  | 491 |  |  | 2 |  |  | 493 |
Cash Dividends Declared (1) ($1.52 per share) | — |  |  | — |  |  | (191) |  |  | — |  |  | — |  |  | (191) |  |  | — |  |  | (191) |
Other Comprehensive Income (Loss) | — |  |  | — |  |  | — |  |  | 39 |  |  | — |  |  | 39 |  |  | — |  |  | 39 |
Share-Based Compensation Expense (2) | — |  |  | 42 |  |  | — |  |  | — |  |  | — |  |  | 42 |  |  | — |  |  | 42 |
Stock Option Exercises | — |  |  | 9 |  |  | — |  |  | — |  |  | — |  |  | 9 |  |  | — |  |  | 9 |
Other (3) | — |  |  | (19) |  |  | — |  |  | — |  |  | — |  |  | (19) |  |  | (2) |  |  | (21) |
Share Repurchases (4) | — |  |  | (40) |  |  | — |  |  | — |  |  | (712) |  |  | (752) |  |  | — |  |  | (752) |
Balance at June 30, 2022 | $ | 2 |  |  | $ | 2,179 |  |  | $ | 8,857 |  |  | $ | (143) |  |  | $ | (5,572) |  |  | $ | 5,323 |  |  | $ | 84 |  |  | $ | 5,407 |
(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, 2020 | $ | 2 |  |  | $ | 2,174 |  |  | $ | 8,080 |  |  | $ | (273) |  |  | $ | (3,960) |  |  | $ | 6,023 |  |  | $ | 85 |  |  | $ | 6,108 |
Net Earnings | — |  |  | — |  |  | 128 |  |  | — |  |  | — |  |  | 128 |  |  | 5 |  |  | 133 |
Cash Dividends Declared (1) ($1.38 per share) | — |  |  | — |  |  | (188) |  |  | — |  |  | — |  |  | (188) |  |  | — |  |  | (188) |
Other Comprehensive Income (Loss) | — |  |  | — |  |  | — |  |  | 40 |  |  | — |  |  | 40 |  |  | — |  |  | 40 |
Share-Based Compensation Expense (2) | — |  |  | 40 |  |  | — |  |  | — |  |  | — |  |  | 40 |  |  | — |  |  | 40 |
Stock Option Exercises | — |  |  | 59 |  |  | — |  |  | — |  |  | — |  |  | 59 |  |  | — |  |  | 59 |
Other (3) | — |  |  | (18) |  |  | — |  |  | — |  |  | — |  |  | (18) |  |  | (1) |  |  | (19) |
Share Repurchases | — |  |  | — |  |  | — |  |  | — |  |  | (140) |  |  | (140) |  |  | — |  |  | (140) |
Distributions to Noncontrolling Interest | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (5) |  |  | (5) |
Balance at June 30, 2021 | $ | 2 |  |  | $ | 2,255 |  |  | $ | 8,020 |  |  | $ | (233) |  |  | $ | (4,100) |  |  | $ | 5,944 |  |  | $ | 84 |  |  | $ | 6,028 |
(1)Cash dividends declared consists of cash dividends paid and dividends declared but unpaid. (2)Share-based compensation expense is based on the fair value of share-based awards. (3)Additional paid-in capital includes value of shares withheld for employees' taxes on vesting of share-based compensation awards. (4)Additional paid-in capital includes payment for repurchase of shares under the 2022 ASR which were settled after June 30, 2022, offset by treasury shares delivered pursuant to final settlement of the 2021 accelerated share repurchase program ("2021 ASR") accounted for as a reduction of Additional paid-in capital prior to settlement.
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, 2020 | $ | (293) |  |  | $ | 87 |  |  | $ | (66) |  |  | $ | (1) |  |  | $ | (273) |
Period change | 56 |  |  | (28) |  |  | 63 |  |  | — |  |  | 91 |
Balance at December 31, 2021 | (237) |  |  | 59 |  |  | (3) |  |  | (1) |  |  | (182) |
Period change | 23 |  |  | (15) |  |  | 31 |  |  | — |  |  | 39 |
Balance at June 30, 2022 | $ | (214) |  |  | $ | 44 |  |  | $ | 28 |  |  | $ | (1) |  |  | $ | (143) |
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:
| Second Quarter
| 2022 |  | 2021
(Dollars in millions) | Before Tax |  | Net of Tax |  | Before Tax |  | Net of Tax
Other comprehensive income (loss) |  |  |  |  |  |  |
Change in cumulative translation adjustment | $ | 16 |  |  | $ | 16 |  |  | $ | 9 |  |  | $ | 9 |
Defined benefit pension and other postretirement benefit plans: |  |  |  |  |  |  |
Amortization of unrecognized prior service credits | (12) |  |  | (9) |  |  | (10) |  |  | (7) |
Derivatives and hedging: |  |  |  |  |  |  |
Unrealized gain (loss) during period | 36 |  |  | 27 |  |  | 6 |  |  | 4 |
Reclassification adjustment for (gains) losses included in net income, net | (43) |  |  | (32) |  |  | 12 |  |  | 9 |
Total other comprehensive income (loss) | $ | (3) |  |  | $ | 2 |  |  | $ | 17 |  |  | $ | 15 |
| First Six Months
| 2022 |  | 2021
(Dollars in millions) | Before Tax |  | Net of Tax |  | Before Tax |  | Net of Tax
Other comprehensive income (loss) |  |  |  |  |  |  |
Change in cumulative translation adjustment | $ | 23 |  |  | $ | 23 |  |  | $ | 11 |  |  | $ | 11 |
Defined benefit pension and other postretirement benefit plans: |  |  |  |  |  |  |
Amortization of unrecognized prior service credits | (20) |  |  | (15) |  |  | (19) |  |  | (14) |
Derivatives and hedging: |  |  |  |  |  |  |
Unrealized gain (loss) during period | 89 |  |  | 67 |  |  | 39 |  |  | 29 |
Reclassification adjustment for (gains) losses included in net income, net | (48) |  |  | (36) |  |  | 19 |  |  | 14 |
Total other comprehensive income (loss) | $ | 44 |  |  | $ | 39 |  |  | $ | 50 |  |  | $ | 40 |

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