Delaware | 1-12626 | 62-1539359 | ||
(State or Other Jurisdiction of Incorporation) | (Commission File Number) | (IRS Employer Identification No.) | ||
200 South Wilcox Drive, Kingsport, TN | 37662 | |
(Address of Principal Executive Offices) | (Zip Code) |
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | ||
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | ||
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | ||
o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
EASTMAN CHEMICAL COMPANY - EMN |
EASTMAN CHEMICAL COMPANY - EMN |
EASTMAN CHEMICAL COMPANY - EMN |
Eastman Chemical Company | ||
By: /s/ Scott V. King Scott V. King Vice President, Finance and Chief Accounting Officer | ||
Date: July 28, 2014 |
(In millions, except per share amounts) | 2Q2014 | 2Q2013 | ||
Sales revenue | $2,460 | $2,440 | ||
Earnings per diluted share from continuing operations* | $1.92 | $1.69 | ||
Earnings per diluted share from continuing operations excluding non-core or non-recurring items** | $1.92 | $1.80 | ||
Net cash provided by operating activities | $419 | $362 |
Item | Page | |
Table 1 | Statements of Earnings | |
Table 2A | Segment Sales Information | |
Table 2B | Sales Revenue Change | |
Table 2C | Sales by Region | |
Table 3 | Company, Segment, and Other Operating Earnings (Loss), and Non-GAAP Operating Earnings Reconciliations | |
Table 4 | Operating Earnings, Earnings, and Earnings Per Share from Continuing Operations Non-GAAP Reconciliations | |
Table 5 | Statements of Cash Flows | |
Table 5A | Net Cash Provided By Operating Activities to Free Cash Flow Reconciliation | |
Table 6 | Selected Balance Sheet Items |
Table 1 – Statements of Earnings | |||||||||||||||
Second Quarter | First Six Months | ||||||||||||||
(Dollars in millions, except per share amounts; unaudited) | 2014 | 2013 | 2014 | 2013 | |||||||||||
Sales | $ | 2,460 | $ | 2,440 | $ | 4,765 | $ | 4,747 | |||||||
Cost of sales | 1,803 | 1,763 | 3,513 | 3,454 | |||||||||||
Gross profit | 657 | 677 | 1,252 | 1,293 | |||||||||||
Selling, general and administrative expenses | 172 | 180 | 340 | 351 | |||||||||||
Research and development expenses | 56 | 51 | 109 | 100 | |||||||||||
Asset impairments and restructuring charges (gains), net | (7 | ) | 18 | 6 | 21 | ||||||||||
Operating earnings | 436 | 428 | 797 | 821 | |||||||||||
Net interest expense | 45 | 46 | 87 | 93 | |||||||||||
Other charges (income), net | (8 | ) | — | (11 | ) | 1 | |||||||||
Earnings from continuing operations before income taxes | 399 | 382 | 721 | 727 | |||||||||||
Provision for income taxes from continuing operations | 107 | 116 | 195 | 213 | |||||||||||
Earnings from continuing operations | 292 | 266 | 526 | 514 | |||||||||||
Earnings from discontinued operations, net of tax (1) | 2 | — | 2 | — | |||||||||||
Net earnings | 294 | 266 | 528 | 514 | |||||||||||
Less: net earnings attributable to noncontrolling interest | 2 | 2 | 3 | 3 | |||||||||||
Net earnings attributable to Eastman | $ | 292 | $ | 264 | $ | 525 | $ | 511 | |||||||
Amounts attributable to Eastman stockholders: | |||||||||||||||
Earnings from continuing operations, net of tax | $ | 290 | $ | 264 | $ | 523 | $ | 511 | |||||||
Earnings from discontinued operations, net of tax (1) | 2 | — | 2 | — | |||||||||||
Net earnings attributable to Eastman stockholders | $ | 292 | $ | 264 | $ | 525 | $ | 511 | |||||||
Basic earnings per share attributable to Eastman | |||||||||||||||
Earnings from continuing operations | $ | 1.94 | $ | 1.71 | $ | 3.47 | $ | 3.31 | |||||||
Earnings from discontinued operations (1) | 0.02 | — | 0.02 | — | |||||||||||
Basic earnings per share attributable to Eastman | $ | 1.96 | $ | 1.71 | $ | 3.49 | $ | 3.31 | |||||||
Diluted earnings per share attributable to Eastman | |||||||||||||||
Earnings from continuing operations | $ | 1.92 | $ | 1.69 | $ | 3.43 | $ | 3.26 | |||||||
Earnings from discontinued operations (1) | 0.01 | — | 0.02 | — | |||||||||||
Diluted earnings per share attributable to Eastman | $ | 1.93 | $ | 1.69 | $ | 3.45 | $ | 3.26 | |||||||
Shares (in millions) outstanding at end of period | 149.1 | 154.2 | 149.1 | 154.2 | |||||||||||
Shares (in millions) used for earnings per share calculation | |||||||||||||||
Basic | 149.5 | 154.4 | 150.4 | 154.4 | |||||||||||
Diluted | 151.3 | 156.7 | 152.2 | 156.7 |
(1) | In second quarter 2014, the Company recognized $2 million, net of tax, in earnings from discontinued operations from final settlement of commercial litigation related to the previously discontinued polyethylene terephthalate ("PET") business. |
Table 2A – Segment Sales Information | ||||||||||||||||
Second Quarter | First Six Months | |||||||||||||||
(Dollars in millions, unaudited) | 2014 | 2013 | 2014 | 2013 | ||||||||||||
Sales by Segment | ||||||||||||||||
Additives & Functional Products | $ | 452 | $ | 430 | $ | 875 | $ | 849 | ||||||||
Adhesives & Plasticizers | 358 | 339 | 703 | 684 | ||||||||||||
Advanced Materials | 631 | 625 | 1,212 | 1,209 | ||||||||||||
Fibers | 386 | 363 | 740 | 709 | ||||||||||||
Specialty Fluids & Intermediates | 633 | 677 | 1,234 | 1,284 | ||||||||||||
Total Sales by Segment | 2,460 | 2,434 | 4,764 | 4,735 | ||||||||||||
Other | — | 6 | 1 | 12 | ||||||||||||
Total Eastman Chemical Company | $ | 2,460 | $ | 2,440 | $ | 4,765 | $ | 4,747 |
Table 2B – Sales Revenue Change | ||||||||
Second Quarter 2014 Compared to Second Quarter 2013 | ||||||||
(Unaudited) | Change in Sales Revenue Due To | |||||||
Revenue % Change | Volume Effect | Price Effect | Exchange Rate Effect | |||||
Additives & Functional Products | 5 | % | 4 | % | — | % | 1 | % |
Adhesives & Plasticizers | 6 | % | 9 | % | (4) | % | 1 | % |
Advanced Materials | 1 | % | — | % | — | % | 1 | % |
Fibers | 6 | % | 2 | % | 4 | % | — | % |
Specialty Fluids & Intermediates | (6) | % | (8) | % | 2 | % | — | % |
Total Eastman Chemical Company | 1 | % | — | % | — | % | 1 | % |
First Six Month 2014 Compared to First Six Months 2013 | ||||||||
(Unaudited) | Change in Sales Revenue Due To | |||||||
Revenue % Change | Volume Effect | Price Effect | Exchange Rate Effect | |||||
Additives & Functional Products | 3 | % | 2 | % | 1 | % | — | % |
Adhesives & Plasticizers | 3 | % | 6 | % | (4) | % | 1 | % |
Advanced Materials | — | % | — | % | (1) | % | 1 | % |
Fibers | 4 | % | — | % | 4 | % | — | % |
Specialty Fluids & Intermediates | (4) | % | (6) | % | 2 | % | — | % |
Total Eastman Chemical Company | — | % | (1) | % | 1 | % | — | % |
Table 2C – Sales by Region | ||||||||||||||||
Second Quarter | First Six Months | |||||||||||||||
(Dollars in millions, unaudited) | 2014 | 2013 | 2014 | 2013 | ||||||||||||
Sales by Region | ||||||||||||||||
United States and Canada | $ | 1,138 | $ | 1,121 | $ | 2,211 | $ | 2,202 | ||||||||
Asia Pacific | 654 | 682 | 1,255 | 1,277 | ||||||||||||
Europe, Middle East, and Africa | 544 | 509 | 1,058 | 1,022 | ||||||||||||
Latin America | 124 | 128 | 241 | 246 | ||||||||||||
Total Eastman Chemical Company | $ | 2,460 | $ | 2,440 | $ | 4,765 | $ | 4,747 |
Table 3 - Company, Segment, and Other Operating Earnings (Loss), and Non-GAAP Operating Earnings Reconciliations | |||||||||||||||
Second Quarter | First Six Months | ||||||||||||||
(Dollars in millions, unaudited) | 2014 | 2013 | 2014 | 2013 | |||||||||||
Operating Earnings (Loss) by Segment and Non-Core or Non-Recurring Items | |||||||||||||||
Additives & Functional Products | |||||||||||||||
Operating earnings | $ | 105 | $ | 104 | $ | 199 | $ | 202 | |||||||
Asset impairments and restructuring charges (gains), net (1)(2)(3) | (2 | ) | 1 | (2 | ) | 1 | |||||||||
Excluding non-core or non-recurring items | 103 | 105 | 197 | 203 | |||||||||||
Adhesives & Plasticizers | |||||||||||||||
Operating earnings | 56 | 49 | 103 | 98 | |||||||||||
Asset impairments and restructuring charges (2) | — | 1 | — | 1 | |||||||||||
Excluding non-core or non-recurring item | 56 | 50 | 103 | 99 | |||||||||||
Advanced Materials | |||||||||||||||
Operating earnings | 80 | 82 | 141 | 147 | |||||||||||
Asset impairments and restructuring charges (gains), net (2)(3)(4) | — | (1 | ) | 10 | (1 | ) | |||||||||
Excluding non-core or non-recurring items | 80 | 81 | 151 | 146 | |||||||||||
Fibers | |||||||||||||||
Operating earnings | 123 | 116 | 240 | 230 | |||||||||||
Specialty Fluids & Intermediates | |||||||||||||||
Operating earnings | 94 | 117 | 158 | 212 | |||||||||||
Additional costs of acquired inventories (5) | 2 | — | 2 | — | |||||||||||
Asset impairments and restructuring charges (2) | — | 1 | — | 1 | |||||||||||
Excluding non-core or non-recurring items | 96 | 118 | 160 | 213 | |||||||||||
Total Operating Earnings by Segment | |||||||||||||||
Operating earnings | 458 | 468 | 841 | 889 | |||||||||||
Additional costs of acquired inventories | 2 | — | 2 | — | |||||||||||
Asset impairments and restructuring charges (gains), net | (2 | ) | 2 | 8 | 2 | ||||||||||
Excluding non-core or non-recurring items | $ | 458 | $ | 470 | $ | 851 | $ | 891 |
(1) | Included in second quarter and first six months 2014 earnings is a $2 million gain related to the sale of previously impaired assets at a former polymers production facility in China. |
(2) | Included in second quarter and first six months 2013 earnings are restructuring charges of $2 million, $1 million, $2 million, and $1 million in the Additives & Functional Products, Adhesives & Plasticizers, Advanced Materials, and Specialty Fluids & Intermediates segments, respectively, primarily related to severance. |
(3) | Included in second quarter and first six months 2013 earnings is a reduction in previous charges associated with the fourth quarter 2012 termination of the operating agreement for the Sao Jose dos Campos, Brazil site, which is reported as reductions of $1 million and $3 million in the Additives & Functional Products and Advanced Materials segments, respectively. |
(4) | Included in first six months 2014 earnings are asset impairments and restructuring charges of $10 million primarily for the closure of a production facility in Taiwan for the Flexvue® product line. |
(5) | Included in second quarter 2014 are additional costs of acquired BP plc's global aviation turbine oil business inventories. Approximately one quarter, or $2 million, of these inventories were sold in second quarter 2014 resulting in an increase in cost of sales. |
Table 3 - Company, Segment, and Other Operating Earnings (Loss), and Non-GAAP Operating Earnings Reconciliations (continued) | ||||||||||||||||
Second Quarter | First Six Months | |||||||||||||||
(Dollars in millions, unaudited) | 2014 | 2013 | 2014 | 2013 | ||||||||||||
Total Operating Earnings by Segment | ||||||||||||||||
Operating earnings | $ | 458 | $ | 468 | $ | 841 | $ | 889 | ||||||||
Additional costs of acquired inventories | 2 | — | 2 | — | ||||||||||||
Asset impairments and restructuring charges (gains), net | (2 | ) | 2 | 8 | 2 | |||||||||||
Excluding non-core or non-recurring items | $ | 458 | $ | 470 | $ | 851 | $ | 891 | ||||||||
Other (1) | ||||||||||||||||
Operating earnings (loss) | ||||||||||||||||
Growth initiatives and businesses not allocated to segments (2) | (15 | ) | (32 | ) | (28 | ) | (53 | ) | ||||||||
Pension and other postretirement benefit plans income (expense) not allocated to operating segments | 3 | 3 | 6 | 6 | ||||||||||||
Acquisition transaction, integration, and restructuring costs | (10 | ) | (11 | ) | (22 | ) | (21 | ) | ||||||||
Operating loss before non-core or non-recurring items | (22 | ) | (40 | ) | (44 | ) | (68 | ) | ||||||||
Acquisition transaction costs (3) | 3 | — | 3 | — | ||||||||||||
Acquisition integration costs (4) | 7 | 8 | 16 | 15 | ||||||||||||
Asset impairments and restructuring charges (gains), net (5)(6)(7) | (5 | ) | 16 | (2 | ) | 19 | ||||||||||
Operating loss excluding non-core or non-recurring items | (17 | ) | (16 | ) | (27 | ) | — | (34 | ) | |||||||
Total Eastman Chemical Company | ||||||||||||||||
Total operating earnings | 436 | 428 | 797 | 821 | ||||||||||||
Acquisition transaction costs | 3 | — | 3 | — | ||||||||||||
Acquisition integration costs | 7 | 8 | 16 | 15 | ||||||||||||
Additional costs of acquired inventories | 2 | — | 2 | — | ||||||||||||
Asset impairments and restructuring charges (gains), net | (7 | ) | 18 | 6 | 21 | |||||||||||
Total operating earnings excluding non-core or non-recurring items | $ | 441 | $ | 454 | $ | 824 | $ | 857 |
(1) | Research and development, certain components of pension and other postretirement benefits, and other expenses and income not identifiable to an operating segment are not included in segment operating results and are shown as "other" operating earnings (loss). |
(2) | Businesses not allocated to segments in 2013 included the Perennial Wood™ growth initiative and Photovoltaics product line, both of which ceased production in the second half of 2013. Businesses not allocated to segments in 2014 include Eastman™ microfiber technology. |
(3) | Included in second quarter and first six months 2014 are transaction costs of $3 million for the acquisition of the global aviation turbine engine oil business from BP plc in June 2014. |
(4) | Included in second quarter and first six months 2014 are integration costs of $7 million and $16 million, respectively, for the acquired Solutia and the global aviation turbine engine oil businesses. Included in second quarter and first six months 2013 are integration costs of $8 million and $15 million, respectively, for the acquired Solutia businesses. |
(5) | Included in second quarter and first six months 2014 earnings is a $5 million gain for sales of previously impaired assets at the former Photovoltaics production facility in Germany. |
(6) | Included in second quarter and first six months 2013 earnings are asset impairments and restructuring charges of $13 million primarily for the closure of a production facility in Germany for the Photovoltaics product line. |
(7) | Included in second quarter and first six months 2013 earnings are restructuring charges of $3 million and $6 million, respectively, primarily for severance associated with the continued integration of Solutia. Included in first six months 2014 earnings are restructuring charges of $3 million, primarily for severance associated with the continued integration of Solutia. |
Table 4 – Operating Earnings, Earnings, and Earnings Per Share from Continuing Operations Non-GAAP Reconciliations | ||||||||||||||||
Second Quarter 2014 | ||||||||||||||||
Operating Earnings | Earnings from Continuing Operations Before Tax | Earnings from Continuing Operations Attributable to Eastman Stockholders | ||||||||||||||
(Dollars in millions, except per share amounts, unaudited) | After Tax (1) | Per Diluted Share | ||||||||||||||
As reported | $ | 436 | $ | 399 | $ | 290 | $ | 1.92 | ||||||||
Non-Core or Non-Recurring Items: | ||||||||||||||||
Additional costs of acquired inventories (2) | 2 | 2 | 1 | — | ||||||||||||
Acquisition transaction and integration costs (3) | 10 | 10 | 6 | 0.04 | ||||||||||||
Asset impairments and restructuring gains (4) | (7 | ) | (7 | ) | (6 | ) | (0.04 | ) | ||||||||
Excluding non-core or non-recurring items | $ | 441 | $ | 404 | $ | 291 | $ | 1.92 |
Second Quarter 2013 | ||||||||||||||||
Operating Earnings | Earnings from Continuing Operations Before Tax | Earnings from Continuing Operations Attributable to Eastman Stockholders | ||||||||||||||
(Dollars in millions, except per share amounts, unaudited) | After Tax (1) | Per Diluted Share | ||||||||||||||
As reported | $ | 428 | $ | 382 | $ | 264 | $ | 1.69 | ||||||||
Non-Core or Non-Recurring Items: | ||||||||||||||||
Solutia integration costs (3) | 8 | 8 | 6 | 0.03 | ||||||||||||
Asset impairments and restructuring charges (gains), net (4) | 18 | 18 | 12 | 0.08 | ||||||||||||
Excluding non-core or non-recurring items | $ | 454 | $ | 408 | $ | 282 | $ | 1.80 |
(1) | Excluding the tax impact of non-core or non-recurring items, the second quarter 2014 effective tax rate was 28 percent compared to 31 percent for second quarter 2013. The second quarter 2014 effective tax rate included further benefit from the continued integration of Eastman and Solutia business operations and legal entity structures. |
(2) | As required by purchase accounting, acquired BP plc's global aviation turbine engine oil business inventories were marked to fair value. Approximately one quarter of these inventories were sold in second quarter 2014 resulting in an increase in cost of sales. |
(3) | Included in selling, general, and administrative expenses. |
(4) | See Table 3 for description of asset impairments and restructuring charges (gains), net. |
Table 4 – Operating Earnings, Earnings, and Earnings Per Share from Continuing Operations Non-GAAP Reconciliations | ||||||||||||||||
First Six Months 2014 | ||||||||||||||||
Operating Earnings | Earnings from Continuing Operations Before Tax | Earnings from Continuing Operations Attributable to Eastman Stockholders | ||||||||||||||
(Dollars in millions, except per share amounts, unaudited) | After Tax (1) | Per Diluted Share | ||||||||||||||
As reported | $ | 797 | $ | 721 | $ | 523 | $ | 3.43 | ||||||||
Non-Core or Non-Recurring Items: | ||||||||||||||||
Additional costs of acquired inventories (2) | 2 | 2 | 1 | 0.01 | ||||||||||||
Acquisition transaction and integration costs (3) | 19 | 19 | 11 | 0.08 | ||||||||||||
Asset impairments and restructuring charges (gains), net (4) | 6 | 6 | 3 | 0.02 | ||||||||||||
Excluding non-core or non-recurring items | $ | 824 | $ | 748 | $ | 538 | $ | 3.54 |
First Six Months 2013 | ||||||||||||||||
Operating Earnings | Earnings from Continuing Operations Before Tax | Earnings from Continuing Operations Attributable to Eastman Stockholders | ||||||||||||||
(Dollars in millions, except per share amounts, unaudited) | After Tax (1) | Per Diluted Share | ||||||||||||||
As reported | $ | 821 | $ | 727 | $ | 511 | $ | 3.26 | ||||||||
Non-Core or Non-Recurring Items: | ||||||||||||||||
Solutia integration costs (3) | 15 | 15 | 10 | 0.06 | ||||||||||||
Asset impairments and restructuring charges (gains), net (4) | 21 | 21 | 14 | 0.09 | ||||||||||||
Excluding non-core or non-recurring items | $ | 857 | $ | 763 | $ | 535 | $ | 3.41 |
(1) | Excluding the tax impact of non-core or non-recurring items, the first six months 2014 effective tax rate was 28 percent compared to 30 percent for first six months 2013. The first six months 2014 effective tax rate included further benefit from the continued integration of Eastman and Solutia business operations and legal entity structures. The first six months 2013 effective tax rate was impacted by enactment of the American Taxpayer Relief Act of 2012 in January 2013 which resulted in a $10 million benefit primarily related to a research and development tax credit. |
(2) | As required by purchase accounting, acquired BP plc's global aviation turbine engine oil business inventories were marked to fair value. Approximately one quarter of these inventories were sold in second quarter 2014 resulting in an increase in cost of sales. |
(3) | Included in selling, general, and administrative expenses. |
(4) | See Table 3 for description of asset impairments and restructuring charges (gains), net. |
Table 5 – Statements of Cash Flows | |||||||||||||||
Second Quarter | First Six Months | ||||||||||||||
(Dollars in millions, unaudited) | 2014 | 2013 | 2014 | 2013 | |||||||||||
Cash flows from operating activities | |||||||||||||||
Net earnings | $ | 294 | $ | 266 | $ | 528 | $ | 514 | |||||||
Adjustments to reconcile net earnings to net cash provided by (used in) operating activities: | |||||||||||||||
Depreciation and amortization | 110 | 108 | 217 | 218 | |||||||||||
Asset impairment charges | — | 6 | 8 | 6 | |||||||||||
Gain on sale of assets | (5 | ) | — | (5 | ) | — | |||||||||
Provision for deferred income taxes | 29 | 20 | 61 | 46 | |||||||||||
Changes in operating assets and liabilities, net of effect of acquisitions and divestitures: | |||||||||||||||
(Increase) decrease in trade receivables | (73 | ) | (59 | ) | (191 | ) | (214 | ) | |||||||
(Increase) decrease in inventories | 62 | 18 | (54 | ) | (35 | ) | |||||||||
Increase (decrease) in trade payables | (23 | ) | (5 | ) | (44 | ) | (32 | ) | |||||||
Pension and other postretirement contributions (in excess of) less than expenses | (33 | ) | (17 | ) | (45 | ) | (42 | ) | |||||||
Variable compensation (in excess of) less than expenses | 40 | 48 | (53 | ) | (9 | ) | |||||||||
Other items, net | 18 | (23 | ) | (33 | ) | (85 | ) | ||||||||
Net cash provided by operating activities | 419 | 362 | 389 | 367 | |||||||||||
Cash flows from investing activities | |||||||||||||||
Additions to properties and equipment | (132 | ) | (100 | ) | (254 | ) | (187 | ) | |||||||
Proceeds from sale of assets | 8 | — | 12 | 5 | |||||||||||
Acquisitions, net of cash acquired | (283 | ) | — | (283 | ) | — | |||||||||
Additions to capitalized software | — | — | (1 | ) | (1 | ) | |||||||||
Other items, net | 2 | (8 | ) | 2 | (8 | ) | |||||||||
Net cash used in investing activities | (405 | ) | (108 | ) | (524 | ) | (191 | ) | |||||||
Cash flows from financing activities | |||||||||||||||
Net increase in commercial paper borrowings | (231 | ) | 100 | 26 | 300 | ||||||||||
Proceeds from borrowings | 490 | 150 | 615 | 150 | |||||||||||
Repayment of borrowings | (125 | ) | (355 | ) | (125 | ) | (555 | ) | |||||||
Dividends paid to stockholders | (53 | ) | (46 | ) | (106 | ) | (47 | ) | |||||||
Treasury stock purchases | (100 | ) | (46 | ) | (360 | ) | (78 | ) | |||||||
Dividends paid to noncontrolling interests | (6 | ) | (4 | ) | (9 | ) | (7 | ) | |||||||
Proceeds from stock option exercises and other items, net | (2 | ) | 1 | 30 | 47 | ||||||||||
Net cash (used in) provided by financing activities | (27 | ) | (200 | ) | 71 | (190 | ) | ||||||||
Effect of exchange rate changes on cash and cash equivalents | 3 | 2 | 2 | (1 | ) | ||||||||||
Net change in cash and cash equivalents | (10 | ) | 56 | (62 | ) | (15 | ) | ||||||||
Cash and cash equivalents at beginning of period | 185 | 178 | 237 | 249 | |||||||||||
Cash and cash equivalents at end of period | $ | 175 | $ | 234 | $ | 175 | $ | 234 |
Table 5A – Net Cash Provided By Operating Activities to Free Cash Flow Reconciliation | ||||||||||||||||
Second Quarter | First Six Months | |||||||||||||||
(Dollars in millions, unaudited) | 2014 | 2013 | 2014 | 2013 | ||||||||||||
Net cash provided by operating activities | $ | 419 | $ | 362 | $ | 389 | $ | 367 | ||||||||
Additions to properties and equipment | (132 | ) | (100 | ) | (254 | ) | (187 | ) | ||||||||
Dividends paid to stockholders | (53 | ) | (46 | ) | (106 | ) | (47 | ) | ||||||||
Free Cash Flow | $ | 234 | $ | 216 | $ | 29 | $ | 133 |
Table 6 – Selected Balance Sheet Items | ||||||||
June 30, | December 31, | |||||||
(Dollars in millions, unaudited) | 2014 | 2013 | ||||||
Cash and cash equivalents | $ | 175 | $ | 237 | ||||
Long-term Borrowings | 4,773 | 4,254 | ||||||
Total Eastman Stockholders' Equity | 3,882 | 3,796 |