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BORROWINGS
 12 Months Ended
Dec. 31, 2022
Debt Disclosure [Abstract]  
BORROWINGS BORROWINGS
 December 31,
(Dollars in millions)20222021
Borrowings consisted of:  
3.6% notes due August 2022$— $747 
1.50% notes due May 2023 (1)
800 850 
7 1/4% debentures due January 2024198 198 
7 5/8% debentures due June 202443 43 
3.80% notes due March 2025693 698 
1.875% notes due November 2026 (1)
530 565 
7.60% debentures due February 2027196 195 
4.5% notes due December 2028495 494 
4.8% notes due September 2042494 494 
4.65% notes due October 2044877 875 
2027 Term loan
499 — 
Commercial paper and short-term borrowings326 — 
Total borrowings5,151 5,159 
Less: Borrowings due within one year1,126 747 
Long-term borrowings$4,025 $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 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.

In 2022, the Company repaid the 3.6% notes due August 2022, of which $550 million was repaid in second quarter 2022 primarily from proceeds from the 2027 Term Loan discussed below and $200 million was repaid in third quarter 2022 using available cash. The total consideration for this redemption is reported under financing activities on the Consolidated Statement of Cash Flows.

Credit Facility, Term Loan, and Commercial Paper Borrowings

The Company has access to a $1.50 billion revolving credit agreement (the "Credit Facility") that was amended and restated in December 2021. The amendments include the addition of sustainability-linked pricing terms and extending the maturity to December 2026, and resulted in a charge of $1 million for early debt extinguishment costs which was attributable to unamortized fees. 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 provides available liquidity for general corporate purposes and supports commercial paper borrowings. Commercial paper borrowings are classified as short-term. At December 31, 2022 and 2021, the Company had no outstanding borrowings under the Credit Facility. At December 31, 2022, the Company's commercial paper borrowings were $326 million with a weighted average interest rate of 4.85%. At December 31, 2021, the Company had no outstanding commercial paper borrowings.

In 2022, the Company borrowed $500 million under a five-year term loan agreement (the "2027 Term Loan"). The 2027 Term Loan had a variable interest rate of 5.55% as of December 31, 2022. Borrowings under the 2027 Term Loan are subject to interest at varying spreads above quoted market rates.

The Credit Facility and 2027 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 December 31, 2022 and 2021.
Fair Value of Borrowings

Eastman has classified its total borrowings at December 31, 2022 and 2021 under the fair value hierarchy as defined in the accounting policies in Note 1, "Significant Accounting Policies". 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 primarily under commercial paper and the 2027 Term Loan equals the carrying value and is classified as Level 2. At December 31, 2022 and 2021, the fair value of total borrowings was $4,888 million and $5,737 million, respectively. The Company had no borrowings classified as Level 1 or Level 3 as of December 31, 2022 and 2021.

Subsequent Action
In January 2023, the Company borrowed $300 million under a delayed draw two-year term loan (the "2024 Term Loan"), which was executed in fourth quarter 2022. Borrowings under the 2024 Term Loan are subject to interest at varying spreads above quoted market rates. The 2024 Term Loan contains the same customary covenants and events of default, including maintenance of certain financial ratios, as the Credit Facility, with payment of customary fees.