XML 61 R33.htm IDEA: XBRL DOCUMENT
v3.22.4

INCOME TAXES (Tables) | 12 Months Ended
--- | ---
Dec. 31, 2022
Income Tax Disclosure [Abstract] |
Schedule of Components of Earnings (Loss) from Continuing Operations and Provisions for Income Taxes | Components of earnings before income taxes and the provision for U.S. and other income taxes from operations follow:
| For years ended December 31,
(Dollars in millions) | 2022 |  | 2021 |  | 2020
Earnings before income taxes |  |  |  |  |
United States | $ | 205 |  |  | $ | 645 |  |  | $ | 164 |
Outside the United States | 772 |  |  | 437 |  |  | 366 |
Total | $ | 977 |  |  | $ | 1,082 |  |  | $ | 530 |
Provision for income taxes |  |  |  |  |
United States Federal |  |  |  |  |
Current | $ | 179 |  |  | $ | 114 |  |  | $ | 70 |
Deferred | (76) |  |  | 18 |  |  | (96) |
Outside the United States |  |  |  |  |
Current | 105 |  |  | 115 |  |  | 77 |
Deferred | (10) |  |  | (42) |  |  | (14) |
State and other |  |  |  |  |
Current | 33 |  |  | 24 |  |  | 5 |
Deferred | (50) |  |  | (14) |  |  | (1) |
Total | $ | 181 |  |  | $ | 215 |  |  | $ | 41 |
Schedule of Deferred Tax Charge (Benefit) Recorded as a Component of Accumulated Other Comprehensive Loss | The following represents the deferred tax (benefit) charge recorded as a component of "Accumulated other comprehensive income (loss)" ("AOCI") in the Consolidated Statements of Financial Position:
| For years ended December 31,
(Dollars in millions) | 2022 |  | 2021 |  | 2020
Defined benefit pension and other postretirement benefit plans | $ | (7) |  |  | $ | (10) |  |  | $ | (7) |
Derivatives and hedging | (1) |  |  | 21 |  |  | (4) |
Total | $ | (8) |  |  | $ | 11 |  |  | $ | (11) |
Schedule of Income Tax Expense (Benefit) Included in Consolidated Financial Statement | Total income tax expense (benefit) included in the consolidated financial statements was composed of the following:
| For years ended December 31,
(Dollars in millions) | 2022 |  | 2021 |  | 2020
Earnings before income taxes | $ | 181 |  |  | $ | 215 |  |  | $ | 41 |
Other comprehensive income | (8) |  |  | 11 |  |  | (11) |
Total | $ | 173 |  |  | $ | 226 |  |  | $ | 30 |
Schedule of Reconciliation of Income Taxes on Earnings from Continuing Operations at Federal Statutory Income Tax Rate | Differences between the provision for income taxes and income taxes computed using the U.S. Federal statutory income tax rate follow:
| For years ended December 31,
(Dollars in millions) | 2022 |  | 2021 |  | 2020
Amount computed using the statutory rate | $ | 205 |  |  | $ | 225 |  |  | $ | 109 |
State income taxes, net | (27) |  |  | (4) |  |  | 2 |
Foreign rate variance | (16) |  |  | (28) |  |  | (49) |
Change in reserves for tax contingencies | 27 |  |  | (39) |  |  | 4 |
General business credits | (44) |  |  | (21) |  |  | (39) |
U.S. tax on foreign earnings, net of credits | (17) |  |  | 2 |  |  | 13 |
Divestitures | 37 |  |  | 89 |  |  | — |
Tax law changes and tax loss from outside-U.S. entity reorganizations | — |  |  | (15) |  |  | — |
Other | 16 |  |  | 6 |  |  | 1 |
Provision for income taxes | $ | 181 |  |  | $ | 215 |  |  | $ | 41 |
Effective income tax rate | 19 | % |  | 20 | % |  | 8 | %
Schedule of Significant Components of Deferred Tax Assets and Liabilities | The significant components of deferred tax assets and liabilities follow:
| December 31,
(Dollars in millions) | 2022 |  | 2021
Deferred tax assets |  |  |
Post-employment obligations | $ | 150 |  |  | $ | 176 |
Net operating loss carryforwards | 645 |  |  | 637 |
Tax credit carryforwards | 236 |  |  | 212 |
Environmental contingencies | 64 |  |  | 67 |
Capitalized research and development expenses | 139 |  |  | — |
Other | 239 |  |  | 224 |
Total deferred tax assets | 1,473 |  |  | 1,316 |
Less: Valuation allowance | 258 |  |  | 339 |
Deferred tax assets less valuation allowance | $ | 1,215 |  |  | $ | 977 |
Deferred tax liabilities |  |  |
Property, plant, and equipment | $ | (849) |  |  | $ | (843) |
Intangible assets | (272) |  |  | (288) |
Investments | (441) |  |  | (369) |
Other | (201) |  |  | (171) |
Total deferred tax liabilities | $ | (1,763) |  |  | $ | (1,671) |
Net deferred tax liabilities | $ | (548) |  |  | $ | (694) |
As recorded in the Consolidated Statements of Financial Position: |  |  |
Other noncurrent assets | $ | 123 |  |  | $ | 116 |
Deferred income tax liabilities | (671) |  |  | (810) |
Net deferred tax liabilities | $ | (548) |  |  | $ | (694) |
Schedule of Tax Receivables and Payables | Amounts due to and from tax authorities as recorded in the Consolidated Statements of Financial Position:
| December 31,
(Dollars in millions) | 2022 |  | 2021
Miscellaneous receivables | $ | 35 |  |  | $ | 173 |
Payables and other current liabilities | $ | 95 |  |  | $ | 68 |
Other long-term liabilities | 174 |  |  | 130 |
Total income taxes payable | $ | 269 |  |  | $ | 198 |
Schedule of Reconciliation of Beginning and Ending Amounts of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amounts of unrecognized tax benefits is as follows:
(Dollars in millions) | 2022 |  | 2021 |  | 2020
Balance at January 1 | $ | 200 |  |  | $ | 257 |  |  | $ | 202 |
Adjustments based on tax positions related to current year | 11 |  |  | 6 |  |  | 14 |
Adjustments based on tax positions related to prior years | 24 |  |  | 2 |  |  | 63 |
Lapse of statute of limitations | — |  |  | (45) |  |  | (22) |
Settlements | — |  |  | (20) |  |  | — |
Balance at December 31 (1) | $ | 235 |  |  | $ | 200 |  |  | $ | 257 |
(1)Approximately $229 million of the unrecognized tax benefits as of December 31, 2022, would, if recognized, impact the Company's effective tax rate. A reconciliation of the beginning and ending amounts of accrued interest related to unrecognized tax positions is as follows:
(Dollars in millions) | 2022 |  | 2021 |  | 2020
Balance at January 1 | $ | 13 |  |  | $ | 13 |  |  | $ | 13 |
Expense for interest, net of tax | 9 |  |  | 9 |  |  | 5 |
Income for interest, net of tax | — |  |  | (9) |  |  | (5) |
Balance at December 31 | $ | 22 |  |  | $ | 13 |  |  | $ | 13 |
Accrued penalties related to unrecognized tax positions were immaterial as of December 31, 2022, 2021, and 2020.

X
- Definition Tabular disclosure of income before income tax between domestic and foreign jurisdictions, and components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit). + References No definition available. + Details
Name: | emn_ComponentsOfEarningsLossFromContinuingOperationsAndProvisionsForIncomeTaxesTableTextBlock
Namespace Prefix: | emn_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the deferred tax charge (benefit) recorded as a component of accumulated other comprehensive loss in stockholders' equity. + References No definition available. + Details
Name: | emn_DeferredTaxChargeBenefitComponentOfAccumulatedOtherComprehensiveLossTableTextBlock
Namespace Prefix: | emn_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of amounts due to and from tax authorities as recorded in the consolidated statements of financial position. + References No definition available. + Details
Name: | emn_ScheduleOfTaxReceivablesAndPayablesTableTextBlock
Namespace Prefix: | emn_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the total income tax expense (benefit) included in earnings from continuing operations; earnings (losses) from discontinued operations (both from operating activities and disposal of business), and other comprehensive income (loss). + References No definition available. + Details
Name: | emn_ScheduleOfTotalIncomeTaxExpenseBenefitTableTextBlock
Namespace Prefix: | emn_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the components of net deferred tax asset or liability recognized in an entity's statement of financial position, including the following: the total of all deferred tax liabilities, the total of all deferred tax assets, the total valuation allowance recognized for deferred tax assets. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32537-109319 + Details
Name: | us-gaap_ScheduleOfDeferredTaxAssetsAndLiabilitiesTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the reconciliation using percentage or dollar amounts of the reported amount of income tax expense attributable to continuing operations for the year to the amount of income tax expense that would result from applying domestic federal statutory tax rates to pretax income from continuing operations. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 12 -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32687-109319 + Details
Name: | us-gaap_ScheduleOfEffectiveIncomeTaxRateReconciliationTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure for tax positions taken in the tax returns filed or to be filed for which it is more likely than not that the tax position will not be sustained upon examination by taxing authorities and other income tax contingencies. Includes, but is not limited to, interest and penalties, reconciliation of unrecognized tax benefits, unrecognized tax benefits that would affect the effective tax rate, tax years that remain subject to examination by tax jurisdictions, and information about positions for which it is reasonably possible that amounts unrecognized will significantly change within 12 months. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15A -URI https://asc.fasb.org/extlink&oid=121826272&loc=SL6600010-109319 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -Subparagraph (d) -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32718-109319 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 19 -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32840-109319 + Details
Name: | us-gaap_SummaryOfIncomeTaxContingenciesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration