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STOCKHOLDERS' EQUITY | 9 Months Ended
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Sep. 30, 2022
Stockholders' Equity Note [Abstract] |
STOCKHOLDERS' EQUITY | STOCKHOLDERS' EQUITY Reconciliations of the changes in stockholders' equity for third 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 June 30, 2022 | $ | 2 |  |  | $ | 2,179 |  |  | $ | 8,857 |  |  | $ | (143) |  |  | $ | (5,572) |  |  | $ | 5,323 |  |  | $ | 84 |  |  | $ | 5,407 |
Net Earnings | — |  |  | — |  |  | 301 |  |  | — |  |  | — |  |  | 301 |  |  | — |  |  | 301 |
Cash Dividends Declared (1) ($0.76 per share) | — |  |  | — |  |  | (93) |  |  | — |  |  | — |  |  | (93) |  |  | — |  |  | (93) |
Other Comprehensive Income (Loss) | — |  |  | — |  |  | — |  |  | (9) |  |  | — |  |  | (9) |  |  | — |  |  | (9) |
Share-Based Compensation Expense (2) | — |  |  | 12 |  |  | — |  |  | — |  |  | — |  |  | 12 |  |  | — |  |  | 12 |
Other | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (1) |  |  | (1) |
Share Repurchase (3) | — |  |  | 110 |  |  | — |  |  | — |  |  | (260) |  |  | (150) |  |  | — |  |  | (150) |
Balance at September 30, 2022 | $ | 2 |  |  | $ | 2,301 |  |  | $ | 9,065 |  |  | $ | (152) |  |  | $ | (5,832) |  |  | $ | 5,384 |  |  | $ | 83 |  |  | $ | 5,467 |
(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 June 30, 2021 | $ | 2 |  |  | $ | 2,255 |  |  | $ | 8,020 |  |  | $ | (233) |  |  | $ | (4,100) |  |  | $ | 5,944 |  |  | $ | 84 |  |  | $ | 6,028 |
Net Earnings | — |  |  | — |  |  | 351 |  |  | — |  |  | — |  |  | 351 |  |  | 3 |  |  | 354 |
Cash Dividends Declared (1) ($0.69 per share) | — |  |  | — |  |  | (93) |  |  | — |  |  | — |  |  | (93) |  |  | — |  |  | (93) |
Other Comprehensive Income (Loss) | — |  |  | — |  |  | — |  |  | 48 |  |  | — |  |  | 48 |  |  | — |  |  | 48 |
Share-Based Compensation Expense (2) | — |  |  | 20 |  |  | — |  |  | — |  |  | — |  |  | 20 |  |  | — |  |  | 20 |
Other | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 1 |  |  | 1 |
Share Repurchase | — |  |  | — |  |  | — |  |  | — |  |  | (150) |  |  | (150) |  |  | — |  |  | (150) |
Distributions to Noncontrolling Interest | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (1) |  |  | (1) |
Balance at September 30, 2021 | $ | 2 |  |  | $ | 2,275 |  |  | $ | 8,278 |  |  | $ | (185) |  |  | $ | (4,250) |  |  | $ | 6,120 |  |  | $ | 87 |  |  | $ | 6,207 |
(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 settlement of shares repurchased under the second quarter 2022 accelerated share repurchase program ("2022 ASR"). Reconciliations of the changes in stockholders' equity for first nine 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 | — |  |  | — |  |  | 792 |  |  | — |  |  | — |  |  | 792 |  |  | 2 |  |  | 794 |
Cash Dividends Declared (1) ($2.28 per share) | — |  |  | — |  |  | (284) |  |  | — |  |  | — |  |  | (284) |  |  | — |  |  | (284) |
Other Comprehensive Income (Loss) | — |  |  | — |  |  | — |  |  | 30 |  |  | — |  |  | 30 |  |  | — |  |  | 30 |
Share-Based Compensation Expense (2) | — |  |  | 54 |  |  | — |  |  | — |  |  | — |  |  | 54 |  |  | — |  |  | 54 |
Stock Option Exercises | — |  |  | 9 |  |  | — |  |  | — |  |  | — |  |  | 9 |  |  | — |  |  | 9 |
Other (3) | — |  |  | (19) |  |  | — |  |  | — |  |  | — |  |  | (19) |  |  | (3) |  |  | (22) |
Share Repurchases (4) | — |  |  | 70 |  |  | — |  |  | — |  |  | (972) |  |  | (902) |  |  | — |  |  | (902) |
Balance at September 30, 2022 | $ | 2 |  |  | $ | 2,301 |  |  | $ | 9,065 |  |  | $ | (152) |  |  | $ | (5,832) |  |  | $ | 5,384 |  |  | $ | 83 |  |  | $ | 5,467 |
(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 | — |  |  | — |  |  | 479 |  |  | — |  |  | — |  |  | 479 |  |  | 8 |  |  | 487 |
Cash Dividends Declared (1) ($2.07 per share) | — |  |  | — |  |  | (281) |  |  | — |  |  | — |  |  | (281) |  |  | — |  |  | (281) |
Other Comprehensive Income (Loss) | — |  |  | — |  |  | — |  |  | 88 |  |  | — |  |  | 88 |  |  | — |  |  | 88 |
Share-Based Compensation Expense (2) | — |  |  | 60 |  |  | — |  |  | — |  |  | — |  |  | 60 |  |  | — |  |  | 60 |
Stock Option Exercises | — |  |  | 59 |  |  | — |  |  | — |  |  | — |  |  | 59 |  |  | — |  |  | 59 |
Other (3) | — |  |  | (18) |  |  | — |  |  | — |  |  | — |  |  | (18) |  |  | — |  |  | (18) |
Share Repurchases | — |  |  | — |  |  | — |  |  | — |  |  | (290) |  |  | (290) |  |  | — |  |  | (290) |
Distributions to Noncontrolling Interest | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (6) |  |  | (6) |
Balance at September 30, 2021 | $ | 2 |  |  | $ | 2,275 |  |  | $ | 8,278 |  |  | $ | (185) |  |  | $ | (4,250) |  |  | $ | 6,120 |  |  | $ | 87 |  |  | $ | 6,207 |
(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 the net premium of final settlements for treasury shares delivered in 2022 under the 2022 ASR and the fourth quarter 2021 accelerated share repurchase program ("2021 ASR"). 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, 2020 | $ | (293) |  |  | $ | 87 |  |  | $ | (66) |  |  | $ | (1) |  |  | $ | (273) |
Period change | 56 |  |  | (28) |  |  | 63 |  |  | — |  |  | 91 |
Balance at December 31, 2021 | (237) |  |  | 59 |  |  | (3) |  |  | (1) |  |  | (182) |
Period change | 4 |  |  | (21) |  |  | 47 |  |  | — |  |  | 30 |
Balance at September 30, 2022 | $ | (233) |  |  | $ | 38 |  |  | $ | 44 |  |  | $ | (1) |  |  | $ | (152) |
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:
| Third 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 | $ | (19) |  |  | $ | (19) |  |  | $ | 2 |  |  | $ | 2 |
Defined benefit pension and other postretirement benefit plans: |  |  |  |  |  |  |
Amortization of unrecognized prior service credits | (8) |  |  | (6) |  |  | (10) |  |  | (7) |
Derivatives and hedging: |  |  |  |  |  |  |
Unrealized gain (loss) during period | 40 |  |  | 30 |  |  | 76 |  |  | 57 |
Reclassification adjustment for (gains) losses included in net income, net | (19) |  |  | (14) |  |  | (6) |  |  | (4) |
Total other comprehensive income (loss) | $ | (6) |  |  | $ | (9) |  |  | $ | 62 |  |  | $ | 48 |
| First Nine 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 | $ | 4 |  |  | $ | 4 |  |  | $ | 13 |  |  | $ | 13 |
Defined benefit pension and other postretirement benefit plans: |  |  |  |  |  |  |
Amortization of unrecognized prior service credits | (28) |  |  | (21) |  |  | (29) |  |  | (21) |
Derivatives and hedging: |  |  |  |  |  |  |
Unrealized gain (loss) during period | 129 |  |  | 97 |  |  | 115 |  |  | 86 |
Reclassification adjustment for (gains) losses included in net income, net | (67) |  |  | (50) |  |  | 13 |  |  | 10 |
Total other comprehensive income (loss) | $ | 38 |  |  | $ | 30 |  |  | $ | 112 |  |  | $ | 88 |

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- Definition The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -URI https://asc.fasb.org/topic&trid=2208762 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 13 -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=126973232&loc=SL123496158-112644 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 13 -URI https://asc.fasb.org/extlink&oid=126973232&loc=SL123496158-112644 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 14 -Subparagraph (c) -URI https://asc.fasb.org/extlink&oid=126973232&loc=SL123496171-112644 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 14 -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=126973232&loc=SL123496171-112644 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.3-04) -URI https://asc.fasb.org/extlink&oid=120397183&loc=d3e187085-122770 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 18 -Subparagraph (d) -URI https://asc.fasb.org/extlink&oid=126973232&loc=SL123496189-112644 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 13 -Subparagraph (g) -URI https://asc.fasb.org/extlink&oid=126973232&loc=SL123496158-112644 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 18 -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=126973232&loc=SL123496189-112644 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 13 -Subparagraph (h) -URI https://asc.fasb.org/extlink&oid=126973232&loc=SL123496158-112644 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 14 -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=126973232&loc=SL123496171-112644 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 18 -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=126973232&loc=SL123496189-112644 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 16 -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=126973232&loc=SL123496180-112644 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 13 -Subparagraph (i) -URI https://asc.fasb.org/extlink&oid=126973232&loc=SL123496158-112644 Reference 15: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(e)(1)) -URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 Reference 16: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 40 -Section 50 -Paragraph 6 -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=126731327&loc=SL126733271-114008 + Details
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