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BORROWINGS
 6 Months Ended
Jun. 30, 2022
Debt Disclosure [Abstract]  
BORROWINGS BORROWINGS
 June 30,December 31,
(Dollars in millions)20222021
Borrowings consisted of:
3.6% notes due August 2022$200 $747 
1.50% notes due May 2023 (1)
779 850 
7 1/4% debentures due January 2024198 198 
7 5/8% debentures due June 202443 43 
3.80% notes due March 2025695 698 
1.875% notes due November 2026 (1)
517 565 
7.60% debentures due February 2027195 195 
4.5% notes due December 2028495 494 
4.8% notes due September 2042494 494 
4.65% notes due October 2044876 875 
2022 Term loan499 — 
Total borrowings4,991 5,159 
Borrowings due within one year979 747 
Long-term borrowings$4,012 $4,412 
(1)The carrying value of the euro-denominated 1.50% notes due May 2023 and 1.875% notes due November 2026 will fluctuate with changes in the euro to U.S. dollar exchange rate. The carrying value of these euro-denominated borrowings have been designated as non-derivative net investment hedges of a portion of the Company's net investments in euro functional-currency denominated subsidiaries to offset foreign currency fluctuations.

Credit Facility, Term Loan, and Commercial Paper Borrowings

The Company has access to a $1.50 billion revolving credit agreement (the "Credit Facility") expiring December 2026. Borrowings under the Credit Facility are subject to interest at varying spreads above quoted market rates and a commitment fee is paid on the total unused commitment. The Credit Facility includes sustainability-linked pricing terms, provides available liquidity for general corporate purposes, and supports commercial paper borrowings. Commercial paper borrowings are classified as short-term. At June 30, 2022 and December 31 2021, the Company had no outstanding borrowings under the Credit Facility. At June 30, 2022 and December 31, 2021, the Company had no outstanding commercial paper borrowings.

In second quarter 2022, the Company borrowed $500 million under a five-year term loan agreement ("2022 Term Loan"). The 2022 Term Loan had a variable interest rate of 2.73% as of June 30, 2022. Borrowings under the 2022 Term Loan are subject to interest at varying spreads above quoted market rates. In second quarter 2022, $550 million principal amount of the 3.6% notes due August 2022 were repaid using proceeds from the 2022 Term Loan and available cash.

The Credit Facility and 2022 Term Loan contain customary covenants, including requirements to maintain certain financial ratios, that determine the events of default, amounts available, and terms of borrowings. The Company was in compliance with all applicable covenants at both June 30, 2022 and December 31, 2021.

Subsequent Activity

In July 2022, the Company repaid the remaining $200 million principal amount of the 3.6% notes due August 2022 prior to maturity.
Fair Value of Borrowings

Eastman has classified its total borrowings at June 30, 2022 and December 31, 2021 under the fair value hierarchy as defined in the accounting policies in Note 1, "Significant Accounting Policies", to the consolidated financial statements in Part II, Item 8 of the Company's 2021 Annual Report on Form 10-K. The fair value for fixed-rate debt securities is based on quoted market prices for the same or similar debt instruments and is classified as Level 2. The fair value for the Company's other borrowings, such as commercial paper and the 2022 Term Loan, equals the carrying value and is classified as Level 2. At June 30, 2022 and December 31, 2021, the fair values of total borrowings were $4.857 billion and $5.737 billion, respectively. The Company had no borrowings classified as Level 3 as of June 30, 2022 and December 31, 2021.