0000915389-19-000036.txt : 20190614 0000915389-19-000036.hdr.sgml : 20190614 20190614162151 ACCESSION NUMBER: 0000915389-19-000036 CONFORMED SUBMISSION TYPE: 11-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20181231 FILED AS OF DATE: 20190614 DATE AS OF CHANGE: 20190614 FILER: COMPANY DATA: COMPANY CONFORMED NAME: EASTMAN CHEMICAL CO CENTRAL INDEX KEY: 0000915389 STANDARD INDUSTRIAL CLASSIFICATION: PLASTICS, MATERIALS, SYNTH RESINS & NONVULCAN ELASTOMERS [2821] IRS NUMBER: 621539359 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 11-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-12626 FILM NUMBER: 19899193 BUSINESS ADDRESS: STREET 1: PO BOX 511 STREET 2: 200 SOUTH WILCOX DRIVE CITY: KINGSPORT STATE: TN ZIP: 37660 BUSINESS PHONE: 4232292000 MAIL ADDRESS: STREET 1: P O BOX 511 B-54D CITY: KINGSPORT STATE: TN ZIP: 37662 11-K 1 emn1231201811-k.htm 11-K Document
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549

FORM 11-K


(Mark
One)
 
[X]
ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 
For the fiscal year ended December 31, 2018
 
OR
[ ]
TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 
For the transition period from _____________ to ______________
 
Commission file number 1-12626
 
A. Full Title of the plan and the address of the plan, if different from that of the issuer named below:
 
EASTMAN INVESTMENT AND EMPLOYEE STOCK OWNERSHIP PLAN
 
B. Name of issuer of the securities held pursuant to the plan and the address of its principal executive office:
 
EASTMAN CHEMICAL COMPANY
200 S. Wilcox Drive
Kingsport, Tennessee 37662






Eastman Investment and Employee Stock Ownership Plan

Table of Contents

Report of Independent Registered Public Accounting Firm

 
 
Basic Financial Statements:
 
 
 
Statements of Net Assets Available for Benefits at December 31, 2018 and 2017
Statements of Changes in Net Assets Available for Benefits for the years ended December 31, 2018 and 2017
Notes to Financial Statements

4-15
 
 
Additional Information (Note A):
 
 
 
Schedule of Assets (Held at End of Year) at December 31, 2018

17-28
 
 
Signatures
 
 
Exhibits

Note A:
Other supplemental schedules required by Section 2520.103-10 of the Department of Labor's Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974 have been omitted because they are not applicable.



REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Plan Participants, Investment Plan Committee, and Plan Administrator of the
Eastman Investment and Employee Stock Ownership Plan
Opinion on the Financial Statements
We have audited the accompanying statements of net assets available for benefits of the Eastman Investment and Employee Stock Ownership Plan (the "Plan") as of December 31, 2018 and 2017, and the related statements of changes in net assets available for benefits for the years then ended, and the related notes and schedule (collectively referred to as the financial statements). In our opinion, the financial statements present fairly, in all material respects, the net assets available for benefits of the Eastman Investment and Employee Stock Ownership Plan as of December 31, 2018 and 2017, and the changes in net assets available for benefits for the years then ended, in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements are the responsibility of the Plan's management. Our responsibility is to express an opinion on the Plan's financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Plan in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Plan is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion on the effectiveness of the Plan's internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.
Supplemental Information
The supplemental information contained in the schedule of assets (held at end of year) as of December 31, 2018 has been subjected to audit procedures performed in conjunction with the audit of the Plan's financial statements. The supplemental information is the responsibility of the Plan's management. Our audit procedures included determining whether the supplemental information reconciles to the financial statements or the underlying accounting and other records, as applicable, and performing procedures to test the completeness and accuracy of the information presented in the supplemental information. In forming our opinion on the supplemental information, we evaluated whether the supplemental information, including its form and content, is presented in conformity with the Department of Labor's Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974. In our opinion, the supplemental information is fairly stated, in all material respects, in relation to the financial statements as a whole.

/s/ Brown Smith Wallace, LLP

We have served as the Plan's auditor since 2014.

St. Louis, Missouri
June 14, 2019



1


Eastman Investment and Employee Stock Ownership Plan
Statements of Net Assets Available for Benefits
December 31, 2018 and 2017
(in thousands)

 
 
 
 
2018
 
 
 
 
 
2017
 
 
 
 
 
 
Non-
 
 
 
 
 
Non-
 
 
 
 
Participant
 
participant
 
 
 
Participant
 
participant
 
 
 
 
Directed
 
Directed
 
Total
 
Directed
 
Directed
 
Total
 
 
 
 
 
 
 
 
 
 
 
 
 
Assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Investments at fair value
 
$
1,970,658

 
$
156,323

 
$
2,126,981

 
$
2,077,072

 
$
199,046

 
$
2,276,118

 
 
 
 
 
 
 
 
 
 
 
 
 
Investments at contract value
 
750,607

 
—

 
750,607

 
836,262

 
—

 
836,262

 
 
 
 
 
 
 
 
 
 
 
 
 
Total investments
 
2,721,265

 
156,323

 
2,877,588

 
2,913,334

 
199,046

 
3,112,380

 
 
 
 
 
 
 
 
 
 
 
 
 
Receivables:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Plan sponsor contributions
 
37,204

 
12,470

 
49,674

 
32,251

 
15,336

 
47,587

 
 
 
 
 
 
 
 
 
 
 
 
 
Notes receivable from participants
 
52,672

 
—

 
52,672

 
52,277

 
—

 
52,277

 
 
 
 
 
 
 
 
 
 
 
 
 
Other receivables
 
3,245

 
1,320

 
4,565

 
4,248

 
1,197

 
5,445

 
 
 
 
 
 
 
 
 
 
 
 
 
Total assets
 
2,814,386

 
170,113

 
2,984,499

 
3,002,110

 
215,579

 
3,217,689

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Liabilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Accrued expenses
 
—

 
—

 
—

 
—

 
16

 
16

 
 
 
 
 
 
 
 
 
 
 
 
 
Other liabilities
 
1,507

 
1,308

 
2,815

 
2,202

 
1,238

 
3,440

 
 
 
 
 
 
 
 
 
 
 
 
 
Total liabilities
 
1,507

 
1,308

 
2,815

 
2,202

 
1,254

 
3,456

 
 
 
 
 
 
 
 
 
 
 
 
 
Net assets available for benefits
 
$
2,812,879

 
$
168,805

 
$
2,981,684

 
$
2,999,908

 
$
214,325

 
$
3,214,233

 
 
 
 
 
 
 
 
 
 
 
 
 

The accompanying notes are an integral part of these financial statements.

2

Eastman Investment and Employee Stock Ownership Plan
Statements of Changes in Net Assets Available for Benefits
For the Years Ended December 31, 2018 and 2017
(in thousands)

 
 
 
 
2018
 
 
 
 
 
2017
 
 
 
 
 
 
Non-
 
 
 
 
 
Non-
 
 
 
 
Participant
 
participant
 
 
 
Participant
 
participant
 
 
 
 
Directed
 
Directed
 
Total
 
Directed
 
Directed
 
Total
 
 
 
 
 
 
 
 
 
 
 
 
 
Additions to net assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Investment income
 
 
 
 
 
 
 
 
 
 
 
 
Interest
 
$
16,841

 
$
—

 
$
16,841

 
$
16,346

 
$
—

 
$
16,346

Dividends
 
60,861

 
4,990

 
65,851

 
45,042

 
4,661

 
49,703

Net (depreciation) appreciation in fair value of investments
 
(202,527
)
 
(42,011
)
 
(244,538
)
 
314,102

 
38,518

 
352,620

Net investment (loss) gain
 
(124,825
)
 
(37,021
)
 
(161,846
)
 
375,490

 
43,179

 
418,669

Interest income from notes receivable
 
2,631

 
—

 
2,631

 
2,382

 
—

 
2,382

Participant contributions
 
107,874

 
—

 
107,874

 
100,752

 
—

 
100,752

Plan sponsor contributions
 
54,517

 
12,470

 
66,987

 
47,541

 
15,336

 
62,877

Total additions (deductions)
 
40,197

 
(24,551
)
 
15,646

 
526,165

 
58,515

 
584,680

 
 
 
 
 
 
 
 
 
 
 
 
 
Deductions from net assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Distributions to and withdrawals by participants
 
237,239

 
10,505

 
247,744

 
280,891

 
10,810

 
291,701

Administrative expenses
 
451

 
—

 
451

 
576

 
—

 
576

Total deductions
 
237,690

 
10,505

 
248,195

 
281,467

 
10,810

 
292,277

Net (decrease) increase in net assets
 
(197,493
)
 
(35,056
)
 
(232,549
)
 
244,698

 
47,705

 
292,403

Transfers from non-participant directed
 
10,464

 
(10,464
)
 
—

 
14,069

 
(14,069
)
 
—

Net assets available for benefits at beginning of year
 
2,999,908

 
214,325

 
3,214,233

 
2,741,141

 
180,689

 
2,921,830

Net assets available for benefits at end of year
 
$
2,812,879

 
$
168,805

 
$
2,981,684

 
$
2,999,908

 
$
214,325

 
$
3,214,233


The accompanying notes are an integral part of these financial statements.



3
Eastman Investment and Employee Stock Ownership Plan
Notes to Financial Statements



1.
DESCRIPTION OF PLAN

The Eastman Investment and Employee Stock Ownership Plan (the "Plan") is a defined contribution plan of a controlled group of corporations consisting of Eastman Chemical Company and certain of its wholly-owned subsidiaries operating in the United States ("Eastman", the "Company" or the "Plan Sponsor"). The Plan is organized pursuant to Sections 401(a) and (k) and Section 4975(e) (7) of the Internal Revenue Code ("IRC"). All United States employees of Eastman, with the exception of certain limited service and special program employees, and employees covered by a collective bargaining agreement with the Company, unless the collective bargaining agreement or the Plan specifically provides for participation, are eligible to participate in the Plan on their first day of employment with Eastman. The Plan was adopted by Eastman, the Plan Sponsor, on January 1, 1994 and is subject to the Employee Retirement Income Security Act of 1974 ("ERISA"). The Plan is administered by the Investment Plan Committee ("IPCO"), which is the Plan Administrator and is comprised of Eastman employees. The Plan has trusts which are administered by the Fidelity Management Trust Company (the "Trustee"). The trusts include the Eastman Chemical Trust and the Eastman Stock Ownership Plan ("ESOP") Trust.

Money in the forfeiture account of the Plan is available to be used both to offset future Company contributions and for various administrative expenses of the Plan. The balance of the forfeiture account at December 31, 2018 and 2017 was $394,337 and $378,536, respectively. There were no forfeitures used in 2018 and 2017.

On or after January 1, 2007, each eligible employee hired by the Company will, in addition to the Retirement Savings Contribution ("RSC"), be automatically enrolled as a participant in the Eastman Investment Plan ("EIP") portion of the Plan. The participants will be deemed to have elected to defer 7% of their qualifying compensation each pay period to the EIP portion of the Plan, unless they affirmatively decline or they elect to contribute a percentage other than 7%. Each participant will also be eligible to receive a matching contribution from the Company equal to 50% of the first 7% of their pay that they contribute to the Plan each pay period. Plan participants may elect to enroll in an automatic annual increase program with an increase to deferral rates each year until the participant's deferral reaches 40%. Their contributions will be invested in a Vanguard Target Date Fund, effective April 1, 2017, that has a target retirement date closest to the year in which the participant reaches age 65 until changed by the participant.

For additional information regarding the Plan, see the complete Plan documents.




4
Eastman Investment and Employee Stock Ownership Plan
Notes to Financial Statements



Contributions and vesting

Contributions to the Plan are made through two separate provisions: (1) deferral of qualifying compensation and (2) contributions by the Plan Sponsor of cash or its common stock to the participants' accounts as determined by the Compensation and Management Development Committee of the Board of Directors of Eastman.

The Plan includes a salary deferral provision allowing eligible employees to defer up to 40% of qualifying compensation, as defined in the Plan, up to the statutory limit of $18,500 for 2018 and $18,000 for 2017 as permitted by the IRC. For the catch-up salary deferral, an eligible employee who attained age 50 before the close of the calendar year was allowed to defer up to an additional $6,000 for 2018 and 2017 of qualifying compensation, as defined in the Plan, up to certain IRC limitations. Plan Sponsor contributions are also subject to certain other limitations. Participants' salary deferrals are contributed to the Plan by Eastman on behalf of the participants. The Plan's Trustee invests amounts contributed to the Plan, as designated by the participant, in common stock of Eastman, various mutual funds, and/or interest in a guaranteed investment contract fund (see Notes 6 and 7). Generally, participants may transfer amounts among the funds on any business day. Additionally, participants may diversify amounts from their ESOP Fund account within the Plan (see Note 10). Each participant is at all times 100% vested in their account, with the exception of amounts transferred from other plans, which may continue to be subject to the former plans' vesting requirements, as applicable.

The Plan requires for the RSC to be contributed either to the employee's ESOP Fund accounts for employee's first five RSC contributions or into other Plan funds, as directed by the participant, for participants with more than five RSC contributions. For participants with more than five RSC contributions, the RSC is allocated to participant-directed funds in accordance with each participant's investment elections at such time as the RSC is made.

Plan Sponsor contributions may be paid at any time during the plan year and subsequent to such plan year through the due date for filing the Company's federal income tax return, including any extensions. Contributions may be paid to the ESOP Trust in cash or shares of Eastman common stock and are deposited in the Company contribution account. Allocations to the participants' accounts from the Company contribution account will be made each plan year to participants who are eligible employees on the date designated by the Company. Participants are not permitted to make contributions to the ESOP Trust.

Employees may elect to transfer, into any of the Plan's fund options, balances received from (1) lump sum payouts from the Eastman Retirement Assistance Plan, Solutia Cash Balance Pension Plan, Solutia Employees' Pension Plan, or Sterling Chemicals Pension Plan, qualified defined benefit plans also sponsored by Eastman Chemical Company, (2) a former employer's 401(a) and 401(k) plan, or (3) an employee's individual retirement account containing amounts received from a qualified defined contribution plan under Section 401(a) and 401(k) of the IRC. All rollover contributions into the Plan must meet the applicable IRC requirements.


5
Eastman Investment and Employee Stock Ownership Plan
Notes to Financial Statements



Notes receivable from participants

The IPCO may grant a note receivable (loan) of at least $1,000 to a participant provided that the aggregate of the participant's notes receivable does not exceed the lesser of (1) $50,000 reduced by the excess, if any, of (a) the participant's highest notes receivable balance from the preceding 12 months over (b) the outstanding total notes receivable balance from the Plan on the date on which the notes receivable was made, or (2) 50% of the non-forfeitable portion of the participant's account. Additional limitations on the availability of loans may apply to individuals who are categorized as "insiders" for purposes of federal securities laws. In accordance with the Plan provisions, the rate of interest on new participant notes receivable approximates current market rates. The term of any notes receivable from participants is determined by IPCO and shall not exceed five years. Notes receivable from participants transferred to the Plan from acquisitions carry terms applicable under that plan and may have terms that exceed five years. Notes receivable from participants are valued at their unpaid principal balance plus any accrued but unpaid interest. Interest income is recorded on the accrual basis. Related fees are recorded as administrative expenses and are expensed when they are incurred. No allowance for credit losses has been recorded as of December 31, 2018 or 2017. If a participant ceases to make loan repayments and the Plan Administrator deems the participant loan to be in default, the participant loan is reduced and a benefit payment is recorded. At December 31, 2018, $52.7 million in notes receivable from participants were outstanding with interest rates ranging from 4.25% to 6.25% and various maturity dates through March 2025. At December 31, 2017, $52.3 million in notes receivable from participants were outstanding with interest rates ranging from 3.25% to 5.75% and various maturity dates through November 2023.

Distributions

Distributions from the Plan require the approval of IPCO or its designee and are made under the following circumstances:

•
Upon attaining age 59½, a participant may elect to receive a lump sum cash distribution of their total or partial account value while still actively employed.

•
Upon separation of service from Eastman for any reason except death, the full value of a participant's account is distributed in a lump sum payment for those participants whose account value is less than or equal to $1,000. Separated participants with accounts in excess of $1,000 may elect either (1) to defer distribution until a later date but, in no event, later than April 1 of the calendar year following the year a participant attains age 70½ or (2) an immediate lump-sum distribution of the participant's account or, at the election of the participant, distributions in monthly or annual installments. Participants in the Eastman Stock Fund or ESOP Fund may elect a lump sum distribution in Eastman common stock.

•
In the event of death, the value of a participant's account is paid in a lump sum if the designated beneficiary is not the surviving spouse or if the account value is less than or equal to $1,000. If the beneficiary is a surviving spouse and the participant account value exceeds $1,000, payment will be made in either a lump-sum amount or, at the election of the surviving spouse, in monthly or annual installments.

•
Distributions to participants shall commence in the year following the year a participant attains age 70½, unless the participant is still actively employed with the Company.

6
Eastman Investment and Employee Stock Ownership Plan
Notes to Financial Statements



•
Approval of hardship withdrawals will only be granted in order to meet obligations relating to the payment of substantial out-of-pocket medical expenses, the purchase of a primary residence, the payment of tuition or other post-secondary educational expenses, or payments to prevent eviction or foreclosure. They are also granted for payment of funeral expenses for a deceased parent, spouse or child of the participant, or payment of expenses for repair or damage to the participant’s principal residence. Hardship withdrawals may not exceed the value of the participant's accounts in the Plan on the date of withdrawal.

•
The Trustee is authorized to honor qualified domestic relation orders issued and served in accordance with Section 414(p) of the IRC.

Investment of ESOP Fund Assets

ESOP Fund assets are invested primarily in Eastman common stock. However, at IPCO's discretion, funds may also be invested in other securities or held in cash.

Investment assets can be acquired by the ESOP Fund in three ways:

•
The Company may make a direct contribution of cash to the ESOP Fund, which would then be used to purchase Eastman common stock or other securities.

•
The Company may contribute shares of Eastman common stock directly to the ESOP Fund.

•
The Company may direct the Trustee to obtain a loan to purchase securities (i.e., leveraged ESOP). Until the loan is repaid, securities acquired with the respective loan proceeds are not available to be allocated to participants' accounts and are maintained in a "Loan Suspense Account". On the last day of each plan year, a proportionate share of securities relating to loan amounts which have been repaid will be transferred out of the Loan Suspense Account and allocated to the accounts of ESOP Fund participants. The ESOP Fund currently is not a leveraged ESOP.

Dividends attributable to the ESOP Fund

IPCO may direct that Eastman common stock dividends attributable to the non-participant directed ESOP Fund be (a) allocated to the accounts of participants, (b) paid in cash to the participants on a nondiscriminatory basis, or (c) paid by the Company directly to participants. Alternatively, dividends received from Eastman common stock maintained in the Loan Suspense Account may be applied to reduce the related loan balance.

Allocations to participants' ESOP Fund accounts

Separate participant accounts are established to reflect each participant's interest in the ESOP Fund and are maintained under the unit value method of accounting. The ESOP Fund account maintained for each participant consists of:

•
Plan Sponsor contributions made or invested in shares of Eastman common stock.

•
Shares of Eastman common stock purchased with assets transferred to the ESOP Fund pursuant to the spin-off from Eastman Kodak Company and/or acquired with the proceeds of a loan released from the Loan Suspense Account.

7
Eastman Investment and Employee Stock Ownership Plan
Notes to Financial Statements



•
An allocable share of short-term interest and money market funds held in the ESOP Fund for purposes of payment of expenses and similar purposes.

•
After-tax contributions transferred to the ESOP Fund pursuant to the spin-off from Eastman Kodak Company (such after-tax contributions are no longer permitted under the ESOP provisions).

The number of units allocated to a participant's account in any year is based on the ratio of the participant's compensation to the total compensation of all eligible employees entitled to share in the allocation for that plan year. In any year in which a Company contribution is made, a participant's allocation will not be less than one share of stock.
Federal law limits the total annual contributions that may be made on a participant's behalf to all defined contribution and defined benefit plans offered by the Company. Participants will be notified if their total annual contribution is limited by this legal maximum.
2.
SUMMARY OF ACCOUNTING POLICIES

The following accounting policies, which conform to accounting principles generally accepted in the United States of America ("USGAAP"), have been used consistently in the preparation of the Plan's financial statements.

Basis of accounting

The Plan's financial statements are prepared on the accrual basis of accounting.

Use of estimates

The preparation of financial statements in conformity with USGAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and changes therein, and disclosures of contingent assets and liabilities. Actual results could differ from those estimates.

Investment policy and valuation

The Plan's investments are stated at fair value except for its fully benefit responsive investment contract, which is valued at contract value (see Note 7). If available, quoted market prices are used to value investments. IPCO determines the Plan's valuation policies utilizing information provided by Fidelity Investments and the Director of Benefits Finance and Investments. See Note 8 for discussion of fair value measurements.

For investments in the ESOP Fund and the Eastman Stock Fund, the Trustee may keep any portion of participant and Plan Sponsor contributions temporarily in cash or liquid investments as it may deem advisable. All dividends, interest or gains derived from investment in each fund are reinvested in the respective fund by the Trustee.

Purchases and sales of investments are recorded on a trade-date basis. Interest income is accrued when earned. Dividend income is recorded at the ex-dividend date.

The Plan presents in the Statements of Changes in Net Assets Available for Benefits the net appreciation (depreciation) in the fair value of its investments which consists of the realized gains or losses and the unrealized appreciation (depreciation) on those investments.


8
Eastman Investment and Employee Stock Ownership Plan
Notes to Financial Statements



Payments to participants

Benefit payments to participants are recorded when paid.

Reclassifications

A reclassification of investments on the investments table in Note 6 and fair value hierarchy table in Note 8 has been made to prior period amounts to conform to the current year financial statement presentation.

3.
RISKS AND UNCERTAINTIES

Investment securities are exposed to various risks, such as interest rate risk, market risk, and credit risk. Due to the level of risk associated with certain investment securities, it is at least reasonably possible that changes in the values of investment securities will occur in the near term and that such changes could materially affect participant account balances and the amounts reported in the financial statements. Included in investments at December 31, 2018 and 2017 are shares of the Plan Sponsor's common stock amounting to $307 million and $318 million, respectively. This investment represents 10.7% and 10.2% of total investments at December 31, 2018 and 2017, respectively. A significant decline in the market value of the Plan Sponsor's stock would significantly affect the net assets available for benefits.

4.
CONTRIBUTIONS

Participant contributions represent qualifying compensation and other qualifying employee bonuses withheld from participating employees by Eastman and contributed to the Plan. Contributions are invested in the Plan's funds as directed by the participants, with the exception of the ESOP Fund, subject to ERISA funding limitations. The Plan has accrued Company contributions for participant-directed funds of $37.2 million and $32.3 million and for the non-participant-directed ESOP Fund of $12.5 million and $15.3 million at December 31, 2018 and 2017, respectively.

5.
NOTES RECEIVABLE FROM PARTICIPANTS

The Plan Trustee makes loans to participants in accordance with Plan provisions. The loans are reflected as notes receivable from participants. Notes receivable from participants are accounted for as a transfer from the fund directed by the participant to the Notes Receivable from Participants Fund. The principal portion of participant repayments reduces the Notes Receivable from Participants Fund receivable. The principal and interest repaid are directed to funds to which the participant's current contributions are directed; the principal is accounted for as a transfer and the interest accounted for as income in the fund to which the participant's current contributions are directed. The Notes Receivable from Participants Fund's net assets and other changes in net assets are included in the participant-directed funds in the Statements of Net Assets and Changes in Net Assets Available for Benefits, respectively. Notes receivable from participants are valued at their unpaid principal balance plus any accrued but unpaid interest.

Unless otherwise specified by the participant, the proceeds of new notes receivable will be withdrawn from the investment funds on a pro-rata basis. Outstanding notes receivable from participants at December 31, 2018 and 2017 were approximately $52.7 million and $52.3 million, respectively. Interest income earned on notes receivable from participants is credited directly to the participants' accounts and was approximately $2.6 million and $2.4 million in 2018 and 2017, respectively.

9
Eastman Investment and Employee Stock Ownership Plan
Notes to Financial Statements



6.
INVESTMENTS

At December 31, 2018 and 2017, the Plan's assets were invested in Eastman Chemical Company common stock, mutual funds, and synthetic investment contracts (see Note 7). Subject to certain limitations, participants are provided the option of directing their contributions among the investment options. The Plan also holds an interest in the non-participant directed Eastman ESOP Fund, which invests in Eastman Chemical Company common stock and short-term interest funds. The following table presents the Plan's investments by type at December 31, 2018 and 2017, respectively.

(in thousands)
2018
 
2017
 
 
 
 
Cash
$
4,784

 
$
3,960

Eastman Chemical Company common stock
307,243

 
317,561

Mutual funds
755,858

 
883,357

Collective investment trusts
1,017,515

 
1,029,171

Pooled separate accounts
3,133

 
3,414

Managed income fund
750,607

 
836,262

Self-directed brokerage account - mutual funds
38,448

 
38,655

Total
$
2,877,588

 
$
3,112,380


The following investment options, which invest primarily in common stock of the Plan Sponsor, were available to participants in 2018 and 2017:

Eastman Stock Fund
This participant-directed fund consists primarily of Eastman common stock. Purchases and sales of Eastman common stock are generally made on the open market on behalf of and as elected by Plan participants. During 2018, the Trustee purchased 1,193,233 shares of Eastman common stock for the fund at an average price of $93.97 per share, and sold 408,093 shares of Eastman common stock for the fund at an average price of $102.15 per share. During 2017, the Trustee purchased 541,047 shares of Eastman common stock for the fund at an average price of $80.81 per share, and sold 1,234,148 shares of Eastman common stock for the fund at an average price of $84.25 per share. Dividends paid from the Eastman Stock Fund totaled $3.8 million and $3.4 million in 2018 and 2017, respectively.

Eastman ESOP Fund
This non-participant directed fund consists primarily of Eastman common stock. Purchases and sales of Eastman common stock are generally made on the open market, on behalf of its participants and as directed by the Plan's guidelines. During 2018, the Trustee purchased 176,483 shares of Eastman common stock for the fund at an average price of $100.61 per share, and sold 187,045 shares of Eastman common stock for the fund at an average price of $97.70 per share. During 2017, the Trustee purchased 215,453 shares of Eastman common stock for the fund at an average price of $79.01 per share, and sold 269,227 shares at an average price of $84.06 per share. Participants can elect to have the dividends paid in cash or reinvested back into the Eastman ESOP fund.

10
Eastman Investment and Employee Stock Ownership Plan
Notes to Financial Statements



7.
INSURANCE CONTRACTS

The Plan invests in the Managed Income Fund (the "Fund"), which invests in synthetic investment contracts only, totaling $751 million and $836 million at December 31, 2018 and 2017, respectively. The term "synthetic" investment contract is used to describe a variety of investment contracts under which a Plan retains ownership of the invested assets, or owns units of an account or trust which holds the invested assets. A synthetic investment contract, also referred to as a "wrap" contract, is negotiated with an independent financial institution. Under the terms of these investment contracts, the contract issuer ensures the Plan's ability to pay eligible employee benefits at book value. The investment performance of a synthetic investment contract may be a function of the investment performance of the invested assets. Participants can redeem interest in this daily and there is no notice period on these redemptions.

A wrap contract is an agreement by another party, such as a bank or insurer, to make payments to the Fund in certain circumstances. Wrap contracts are designed to allow a stable value fund, such as the Fund, to maintain a constant net asset value ("NAV") and to protect the Fund in extreme circumstances. In a typical wrap contract, the wrap issuer agrees to pay the Fund the difference between the contract value and the market value of the covered assets once the market value has been totally exhausted. Though relatively unlikely, this could happen if the Fund experiences significant redemptions (redemption of most of the Fund's shares) during a time when the market value of the Fund's covered assets are below their contract value and market value is ultimately reduced to zero. If that occurs, the wrap issuer agrees to pay the Fund an amount sufficient to cover shareholder redemptions and certain other payments (such as fund expenses), provided all the terms of the wrap contract have been met. Purchasing wrap contracts is similar to buying insurance, in that the Fund pays a relatively small amount to protect against a relatively unlikely event (the redemption of most of the shares of the Fund). Fees paid by the Fund for wrap contracts are a component of the Fund's expenses.

Wrap contracts accrue interest using a formula called the "crediting rate". Wrap contracts use the crediting rate formula to convert market value changes in the covered assets into income distributions in order to minimize the difference between the market and contract value of the covered assets over time. Using the crediting rate formula, an estimated future market value is calculated by compounding the Fund's current market value at the Fund's current yield to maturity for a period equal to the Fund's duration. The crediting rate is the discount rate that equates the estimated future market value with the Fund's current contract value. Crediting rates are reset quarterly. The wrap contracts provide a guarantee that the crediting rate will not fall below zero percent.

The crediting rate, and hence the Fund's return, may be affected by many factors, including purchases and redemptions by shareholders. The precise impact on the Fund depends on whether the market value of the covered assets is higher or lower than the contract value of those assets. If the market value of the covered assets is higher than their contract value, the crediting rate will ordinarily be higher than the yield of the covered assets. Under these circumstances, cash from new investors will tend to lower the crediting rate and the Fund's return, and redemptions by existing shareholders will tend to increase the crediting rate and the Fund's return.


11
Eastman Investment and Employee Stock Ownership Plan
Notes to Financial Statements



The Fund and the wrap contracts purchased by the Fund are designed to pay all participant-initiated transactions at contract value. Participant-initiated transactions are those transactions allowed by the underlying defined contribution plan (typically this would include withdrawals for benefits, loans, or transfers to non-competing funds within the Plan). However, the wrap contracts limit the ability of the Fund to transact at contract value upon the occurrence of certain events. These events include:
•
The Plan's failure to qualify under Section 401(a) or Section 401(k) of the IRC.
•
The establishment of a defined contribution plan that competes with the Plan for employee contributions.
•
Any substantive modification of the Plan or the administration of the Plan that is not consented to by the wrap issuer.
•
Complete or partial termination of the Plan.
•
Any change in law, regulation or administrative ruling applicable to the Plan that could have a material adverse effect on the Fund's cash flow.
•
Merger or consolidation of the Plan with another plan, the transfer of Plan assets to another plan, or the sale, spin-off or merger of a subsidiary or division of the Plan Sponsor.
•
Any communication given to participants by the Plan Sponsor or any other Plan fiduciary that is designed to induce or influence participants not to invest in the Fund or to transfer assets out of the Fund.
•
Exclusion of a group of previously eligible employees from eligibility in the Plan.
•
Any early retirement program, group termination, group layoff, facility closing, or similar program.
•
Any transfer of assets from the Fund directly to a competing option.

At this time, the occurrence of any of these events is not considered probable by IPCO.

8.
FAIR VALUE MEASUREMENT

Following is a description of the valuation methodologies used for assets measured at fair value:

•
Common stock: Valued at the closing price reported on the active market on which the individual securities are traded.

•
Mutual funds: Valued at the daily closing price as reported by the fund. Mutual funds held by the Plan are open-end mutual funds that are registered with the Securities and Exchange Commission. These funds are required to publish their daily net asset value and to transact at that price. The mutual funds held by the Plan are deemed to be actively traded.

•
Collective investment trusts: The Plan's collective trust investments are held in separate investment accounts, which are valued using the readily determinable fair value ("RDFV"). The RDFV is based on the value of the underlying assets owned by the fund, which include a mix of U.S. and international equities, fixed income investments, target date funds, and short-term investments. The collective trust investments held by the Plan publish their RDFV daily and transact at that price.

•
Pooled separate accounts: The Plan's pooled separate accounts are held in separate investment accounts at an insurance company, which are valued using the readily determinable fair value ("RDFV"). The RDFV is based on the value of the underlying assets owned by the fund, which include a mix of U.S. and international equities, fixed income investments, target date funds, and short-term investments. The pooled separate accounts held by the Plan publish their RDFV daily and transact at that price.


12
Eastman Investment and Employee Stock Ownership Plan
Notes to Financial Statements



•
Self-directed brokerage account: Unit valuation based on the published underlying NAV of the mutual funds. These mutual funds are deemed to be actively traded.

The methods described above may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, while the Plan believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date.

USGAAP provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy under USGAAP are described below:

Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2 - Quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in inactive markets; inputs other than quoted prices that are observable for the asset or liability; or inputs that are derived principally from or corroborated by observable market data by correlation or other means.

Level 3 - Unobservable inputs based on the Plan's assumptions used to measure assets and liabilities at fair value.

A financial instrument's classification within the hierarchy is determined based on the lowest level input that is significant to the fair value measurement.

The following tables set forth by level, within the fair value hierarchy, the Plan's assets at fair value as of December 31, 2018 and 2017:
(in thousands)
December 31, 2018
 
December 31, 2017
Description
Quoted Prices in Active Markets for Identical Assets
(Level 1)
 
Quoted Prices in Active Markets for Identical Assets
(Level 1)
Cash
$
4,784

 
$
3,960

Eastman Chemical Company common stock
307,243

 
317,561

Mutual funds
755,858

 
883,357

Collective investment trusts
1,017,515

 
1,029,171

Pooled separate accounts
3,133

 
3,414

Self-directed brokerage account - mutual funds
38,448

 
38,655

Total
$
2,126,981

 
$
2,276,118


There are no redemption restrictions on the mutual fund investments, collective investment trusts, or pooled separate accounts. They are fully liquid and can be redeemed on a daily basis. There were no transfers between levels during 2018 and 2017. Also, there are no Level 2 or Level 3 investments at December 31, 2018 and 2017.

13
Eastman Investment and Employee Stock Ownership Plan
Notes to Financial Statements



9.
OTHER RECEIVABLES AND OTHER LIABILITIES

Other receivables in the amount of $4.6 million and $5.4 million at December 31, 2018 and 2017, respectively, represent interest and dividends receivable, as well as receivables from the sale of investments. Other liabilities in the amount of $2.8 million and $3.4 million at December 31, 2018 and 2017, respectively, represent liabilities from the purchase of investments.

10.
DIVERSIFICATION FROM ESOP FUND

A participant may direct that all or any portion of his ESOP Fund account be transferred to other funds in the Plan without restrictions. During 2018 and 2017, $10.5 million and $14.1 million, respectively, were transferred from the ESOP Fund within the Plan in connection with this program.

11.
PLAN TERMINATION

Although it has not expressed any intent to do so, the Company has the right under the Plan to discontinue its contributions at any time and to terminate the Plan subject to the provisions of ERISA. In the event of termination, participant accounts will be distributed to individual participants in accordance with the Plan document and ERISA provisions.

12.
FEDERAL INCOME TAX STATUS

The Plan obtained its latest determination letter in May 2015, in which the Internal Revenue Service ("IRS") stated that the Plan is in compliance with the applicable requirements of the IRC. No provision for income taxes has been included in the Plan's financial statements.

USGAAP requires Plan management to evaluate tax positions taken by the Plan and recognize a tax liability (or asset) if the plan has taken an uncertain position that more likely than not would not be sustained upon examination by the IRS. The Plan Administrator has analyzed the tax positions by the Plan, and has concluded that as of December 31, 2018 and 2017, there are no uncertain positions taken or expected to be taken that would require recognition of a liability (or asset) or disclosure in the financial statements. The Plan is subject to routine audits by taxing jurisdictions; however, there are currently no audits for any tax periods in progress.

13.
PLAN EXPENSES

Reasonable expenses of administering the Plan, unless paid by the Company, shall be paid by the Plan. For both 2018 and 2017, trustee fees associated with the Eastman Stock Fund and the Eastman ESOP Fund were paid with assets of those individual funds. Brokerage fees, transfer taxes, investment fees and other expenses incidental to the purchase and sale of securities and investments shall be included in the cost of such securities or investments or deducted from the sales proceeds. Administration fees for notes receivable from participants are deducted quarterly from the accounts of participants with outstanding notes receivable balances. Origination fees from notes receivable from participants are deducted from the participant's account at the inception of the note receivable. As of April 2016, the EIP fee methodology was changed to improve fee transparency.  The methodology was changed from a revenue sharing model to a flat-dollar payment model.  The flat-dollar payment is charged quarterly to the participant account and covers administrative fees including recordkeeping, legal, and consulting.  Investment related fees are charged directly to the participant account via the investment NAV.

14
Eastman Investment and Employee Stock Ownership Plan
Notes to Financial Statements



14.
RELATED PARTIES

Certain Plan investments are shares of mutual funds managed by the Trustee as defined by the Plan and, therefore, these transactions qualify as party-in-interest transactions, which are exempt from prohibited transaction rules. The Plan also invests in the common stock of the Plan Sponsor as well as notes receivable from Plan participants, both of which qualify as parties-in-interest to the Plan and are exempt from prohibited transaction rules (see Note 6).

15.
SUBSEQUENT EVENTS

The Plan Administrator has evaluated events occurring between December 31, 2018 and June 14, 2019 for proper recording and disclosure in these financial statements.


15

















Supplemental Schedule


16
Eastman Investment and Employee Stock Ownership Plan
Schedule H, Line 4 (i) - Schedule of Assets (Held at End of Year)
December 31, 2018
(in thousands)

(a)
(b)
 Identity of issue, borrower, lessor, or similar party
(c)
 Description of investment, including maturity date, rate of interest, collateral, par or maturity value
(d)
Historical Cost
(e)
Current Value
*
Eastman Chemical Company
Common Stock, Participant directed, 2,083 shares
**

$
152,278

*
Eastman Chemical Company
Common Stock, Non-Participant directed, 2,120 shares
98,406

154,965

 
Subtotal - Common Stock
 
 
307,243

*
Fidelity Management Trust Company
Interest Bearing Cash, Participant directed
**

3,426

*
Fidelity Management Trust Company
Interest Bearing Cash, Non-Participant directed
1,358

1,358

 
Subtotal - Cash
 
 
4,784

 
DFA US SMALL CAP I
Registered Investment Company 1,328 shares
**

39,514

*
FID GOVT MMKT
Registered Investment Company 438 shares
**

438

*
FID EXT MKT IDX
Registered Investment Company 855 shares
**

45,395

*
FID MAGELLAN K
Registered Investment Company 11,366 shares
**

101,724

*
FID PURITAN K
Registered Investment Company 5,892 shares
**

115,422

*
FID US BOND INDX
Registered Investment Company 1,701 shares
**

19,184

*
FID 500 INDEX
Registered Investment Company 1,863 shares
**

162,256

*
FID GLB EX US IDX
Registered Investment Company 1,801 shares
**

20,462

 
PIM TOTAL RT INST
Registered Investment Company 7,813 shares
**

77,587

 
TEMPLETON FOREIGN R6
Registered Investment Company 2,584 shares
**

16,927

 
NB GENESIS R6
Registered Investment Company 1,277 shares
**

61,045

 
FKLN SMMIDCP GRTH R6
Registered Investment Company 1,335 shares
**

44,336

 
JPM EQUITY INCOME R6
Registered Investment Company 3,254 shares
**

51,568

 
Sub-total Mutual Funds
 
 
755,858

*
FID CONTRAFUND POOL
Collective Investment Trust 11,398 shares
**

178,492

*
FID INTL DSCVRY POOL
Collective Investment Trust 4,181 shares
**

45,786

*
FID BLUE CHIP GR POOL
Collective Investment Trust 7,892 shares
**

107,886

 
VANGUARD TARGET INC
Collective Investment Trust 538 shares
**

27,030

 
VANGUARD TARGET 2015
Collective Investment Trust 341 shares
**

17,011

 
VANGUARD TARGET 2020
Collective Investment Trust 2,166 shares
**

110,076

 
VANGUARD TARGET 2025
Collective Investment Trust 2,539 shares
**

128,667

 
VANGUARD TARGET 2030
Collective Investment Trust 2,626 shares
**

133,048

 
VANGUARD TARGET 2035
Collective Investment Trust 1,374 shares
**

70,521

 
VANGUARD TARGET 2040
Collective Investment Trust 1,261 shares
**

66,202

 
VANGUARD TARGET 2045
Collective Investment Trust 831 shares
**

43,559

 
VANGUARD TARGET 2050
Collective Investment Trust 1,071 shares
**

56,463

 
VANGUARD TARGET 2055
Collective Investment Trust 354 shares
**

22,726

 
VANGUARD TARGET 2060
Collective Investment Trust 298 shares
**

10,048

 
Sub-total Collective Investment Trusts
 
 
1,017,515

*
PRUD INCFLEX SEL LT GROWTH
Pooled Separate Account 67 shares
**

1,105

*
PRUD INCFLEX SEL LT BALANCED
Pooled Separate Account 71 shares
**

1,159

*
PRUD INCFLEX SEL LT INC & EQU
Pooled Separate Account 1 share
**

8

*
PRUD INCFLEX LT SEL CONSER GRO
Pooled Separate Account 13 shares
**

199

*
PRUD INCFLEX SEL LT INC & EQU
Pooled Separate Account 24 shares
**

358

*
PRUD INCFLEX SEL LT AGG GRO
Pooled Separate Account 7 shares
**

102

*
PRUD INCFLEX SEL LT GROWTH
Pooled Separate Account 6 shares
**

101

*
PRUD INCFLEX SEL LT BALANCED
Pooled Separate Account 6 shares
**

101

 
Sub-total Pooled Separate Accounts
 
 
3,133



17
Eastman Investment and Employee Stock Ownership Plan
Schedule H, Line 4 (i) - Schedule of Assets (Held at End of Year)
December 31, 2018
(in thousands)

(a)
(b)
 Identity of issue, borrower, lessor, or similar party
(c)
 Description of investment, including maturity date, rate of interest, collateral, par or maturity value
(d)
Historical Cost
(e)
Current Value
*
Fidelity
Cash
**
2,580

 
AT&T INC 3% 2/15/22
Corporate Bond 3.0% 2/15/22
**
724

 
AT&T INC 2.45% 06/30/20
Corporate Bond 2.45% 06/30/20
**
1,087

 
AT&T INC 2.8% 02/17/21
Corporate Bond 2.8% 02/17/21
**
728

 
ABBVIE INC 2.5% 05/14/20
Corporate Bond 2.5% 05/14/20
**
571

 
ACE INA HOLDING 2.3% 11/03/20
Corporate Bond 2.3% 11/03/20
**
1,026

 
ACTAVIS FUNDING SCS 3% 3/12/20
Corporate Bond 3% 3/12/20
**
2,009

 
AERCAP IRELAND 4.125% 07/03/23
Corporate Bond 4.125% 07/03/23
**
594

 
AIR LEASE CORP 2.625% 07/01/22
Corporate Bond 2.625% 07/01/22
**
1,173

 
AIR LEASE CORP 2.5% 03/01/21
Corporate Bond 2.5% 03/01/21
**
927

 
AMOT 2017-3 A2 2.04% 6/22
Mortgage Back Security 2017-3 A2 2.04% 6/22
**
1,231

 
AMOT 2018-1 A2 2.7% 01/23
Mortgage Back Security 2018-1 A2 2.7% 01/23
**
1,620

 
AMOT 2018-2 A 3.29% 05/23
Mortgage Back Security 2018-2 A 3.29% 05/23
**
1,992

 
AMERICAN CAMPUS 3.35% 10/01/20
Corporate Bond 3.35% 10/01/20
**
551

 
AMERICAN EXPRESS 2.6% 09/14/20
Corporate Bond 2.6% 09/14/20
**
1,297

 
AMERICAN EXPRESS 2.25% 5/05/21
Corporate Bond 2.25% 5/05/21
**
1,110

 
AMXCA 2017-3 A 1.77% 11/22
Mortgage Back Security 2017-3 A 1.77% 11/22
**
1,734

 
AMXCA 2017-6 A 2.04% 05/23
Mortgage Back Security 2017-6 A 2.04% 05/23
**
1,416

 
AMXCA 2018-4 A 2.99% 12-15-23
Mortgage Back Security 2018-4 A 2.99% 12/15/23
**
1,569

 
AMXCA 2018-6 A 0% 02/24
Mortgage Back Security 2018-6 A 0% 02/24
**
1,507

 
AMXCA 2017-1 A 1.93% 09/22
Mortgage Back Security 2017-1 A 1.93% 09/22
**
2,444

 
AMERICAN GENERAL LIFE
Synthetic GIC – 2.4% (fair value to contract value)
**
1,071

 
AMERICAN HONDA 1.7% 02/22/19
Corporate Bond 1.7% 02/22/19
**
728

 
AMERICAN HONDA 1.2% 07/12/19
Corporate Bond 1.2% 07/12/19
**
284

 
AMERICAN HONDA FIN 1.7% 9/9/21
Corporate Bond 1.7% 9/9/21
**
1,239

 
AMERICAN HONDA FIN 2.65% 02/21
Corporate Bond 2.65% 02/21
**
1,598

 
AMGEN INC 2.125% 05/01/2020
Corporate Bond 2.125% 05/01/2020
**
767

 
AMPHENOL CORP 3.125% 09/15/21
Corporate Bond 3.125% 09/15/21
**
252

 
AMPHENOL CORP NEW 3.2% 4/1/24
Corporate Bond 3.2% 04/01/24
**
292

 
ANHUESER-BUSCH 2.65% 2/01/21
Corporate Bond 2.65% 2/01/21
**
728

 
ANHUESER-BUSCH IN 3.3% 2/01/23
Corporate Bond 3.3% 2/01/23
**
1,594

 
ANTHEM INC 2.95% 12/01/22
Corporate Bond 2.95% 12/01/22
**
1,118

 
AUST & NZ BKG NY 2.25% 6/13/19
Corporate Bond 2.25% 6/13/19
**
1,247

 
AUS & NZ BKG 2.125% 8/19/20
Corporate Bond 2.125% 8/19/20
**
1,097

 
AUTOZONE 3.125% 07/15/23
Corporate Bond 3.125% 07/15/23
**
1,041

 
AVALONBAY COMM 3.625% 10/1/20
Corporate Bond 3.625% 10/1/20
**
410

 
AXA EQUITABLE 3.9% 4/23 144A
Corporate Bond 3.9% 04/23 144A
**
149

 
BACCT 2017-A1 A1 1.95% 08/22
Mortgage Back Security 2017-A1 A1 1.95% 08/22
**
2,150

 
BACCT 2017-A2 A2 1.84% 01/23
Mortgage Back Security 2017-A2 A2 1.84% 01/23
**
1,926

 
BACCT 2018-A1 A1 2.7% 04/23
Mortgage Back Security 2018-A1 A1 2.7% 04/23
**
1,991

 
BACCT 2018-A2 A2 3% 09/23
Mortgage Back Security 2018-A2 A2 3% 09/23
**
1,577

 
BAE SYSTEMS 2.85% 12/15/20
Corporate Bond 2.85% 12/15/20
**
1,403

 
BAT INTL FIN 3.5% 6/22 144A
Corporate Bond 3.5% 6/22 144A
**
1,078

 
BMWFT 2018-1 A1 3.15% 5/23
Mortgage Back Security 2018-1 A1 3.15% 5/23
**
1,446

 
BMW US 2.7% 04/06/22 144A
Corporate Bond 2.7% 04/06/22 144A
**
1,779

 
BP CAPITAL MKT PLC 2.315% 02/20
Corporate Bond 2.315% 02/20
**
900

 
BPCE SA 2.5% 7/15/19
Corporate Bond 2.5% 7/15/19
**
826

 
BMWLT 2017-2 A3 2.07% 10/20
Mortgage Back Security 2017-2 A3 2.07% 10/20
**
843

 
BMWLT 2018-1 A3 3.06% 07/21
Mortgage Back Security 2018-1 A3 3.06% 07/21
**
668

 
BANK OF AMER 2.625% 10/19/20
Corporate Bond 2.625% 10/19/20
**
1,283

 
BANK OF AMERICA 2.625% 4/19/21
Corporate Bond 2.625% 4/19/21
**
352


18
Eastman Investment and Employee Stock Ownership Plan
Schedule H, Line 4 (i) - Schedule of Assets (Held at End of Year)
December 31, 2018
(in thousands)

(a)
(b)
 Identity of issue, borrower, lessor, or similar party
(c)
 Description of investment, including maturity date, rate of interest, collateral, par or maturity value
(d)
Historical Cost
(e)
Current Value
 
BK OF AMER 3.004% /VAR 12/20/23
Corporate Bond 3.004%/VAR 12/20/23
**
2,570

 
BANK OF AMERICA CO 3.864% 7/24
Corporate Bond 3.864% 7/24
**
2,029

 
BANK NOVA SCOTIA 2.8% 07/21/21
Corporate Bond 2.8% 07/21/21
**
823

 
BNK OF NOVA SCOTIA 2.7% 3/7/22
Corporate Bond 2.7% 3/7/22
**
1,776

 
BANK TOKYO-MSB 2.3% 03/20 144A
Corporate Bond 2.3% 03/20 144A
**
718

 
BWSTA 18-1 A3 3.52% 12/22 144A
Mortgage Back Security 3.52% 12/22 144A
**
772

 
BARCLAYS PLC 2.75% 11/8/19
Corporate Bond 2.75% 11/8/19
**
1,827

 
BARCLAYS PLC 2.875% 06/20
Corporate Bond 2.875% 06/20
**
787

 
BARCLAYS PLC 3.25% 01/12/21
Corporate Bond 3.25% 01/12/21
**
790

 
BARCLAYS BANK 4.338% 5/16/24
Corporate Bond 4.338% 5/16/24
**
1,155

 
BARCLAYS BANK 2.65% 01/11/21
Corporate Bond 2.65% 01/11/21
**
1,656

 
BAXALTA INC 2.875% 06/23/20
Corporate Bond 2.875% 06/23/20
**
90

 
BMARK 2018-B2 3.6623% 02/51
Mortgage Back Security 3.6623% 02/51
**
1,741

 
BMARK 2018-B7 A2 4.377% 05/53
Mortgage Back Security 4.377% 05/53
**
945

 
BMARK 2018-B8 A2 4.2122% 01/52
Mortgage Back Security 4.2122% 01/52
**
1,069

 
BERKSHIRE HATHAWA 2.8% 1/15/23
Corporate Bond 2.8% 1/15/23
**
1,776

 
BERKSHIRE HATH 2.2% 3/15/21
Corporate Bond 2.2% 3/15/21
**
731

 
BERKSHIRE HATH 2.75% 3/15/23
Corporate Bond 2.75% 3/15/23
**
703

 
BRITISH TELECOM PLC 2.35% 2/19
Corporate Bond 2.35% 2/19
**
1,098

 
COMM 14-UBS6 ASB 3.387% 12/47
Mortgage Back Security 3.387% 12/47
**
408

 
COMM 2015-CR22 A2 2.856% 03/48
Mortgage Back Security 2.856% 03/48
**
486

 
COMM 2015-CR22 ASB 3.144% 03/48
Mortgage Back Security 3.144% 03/48
**
631

 
COMM 15-CR23 ASB 3.257% 05/48
Mortgage Back Security 3.257% 05/48
**
683

 
COMM 15-CR26 ASB 3.373% 10/48
Mortgage Back Security 3.373% 10/48
**
463

 
CSMC 16-NXSR A1 1.9708% 12/49
Mortgage Back Security 1.9708% 12/49
**
310

 
CSAIL 2017-CX9 A2 3.0538% 09/50
Mortgage Back Security 3.0538% 09/50
**
1,305

 
COMM 2012-LC4 A4 3.288% 12/44
Mortgage Back Security 3.288% 12/44
**
1,900

 
COMM 2010-C1 A3 4.205 7/46
Mortgage Back Security 4.205% 7/46
**
2,371

 
COMM 2012-CR2 A3 2.841% 8/45
Mortgage Back Security 2.841% 8/45
**
2,021

 
COMM 2012-CR3 ASB 2.372% 11/45
Mortgage Back Security 2.372% 11/45
**
792

 
COMM 2012-CR3 A3 2.822% 10/45
Mortgage Back Security 2.822% 10/45
**
862

 
COMM 2013-CR6 A4 3.101% 03/46
Mortgage Back Security 3.101% 03/46
**
1,012

 
COMM 2013-CR7 A4 3.213% 03/46
Mortgage Back Security 3.213% 03/46
**
1,324

 
COMM 2013-CR8 A5 3.612% 06/46
Mortgage Back Security 3.612% 06/46
**
629

 
COMM 2014-CR18 A2 2.924% 07/47
Mortgage Back Security 2.924% 07/47
**
750

 
CSAIL 2015-C2 ASB 3.2241% 06/57
Mortgage Back Security 3.2241% 06/57
**
470

 
CSAIL 2016-C7 A1 1.5786% 11/49
Mortgage Back Security 1.5786% 11/49
**
327

 
CNH 2018-A A3 3.23% 07/23
Mortgage Back Security 3.23% 07/23
**
1,436

 
CVS HEALTH CORP 2.8% 07/20/20
Corporate Bond 2.8% 07/20/20
**
673

 
CVS HEALTH CORP 3.7% 03/09/23
Corporate Bond 3.7% 03/09/23
**
2,054

 
CVS HEALTH CORP 3.35% 03/09/21
Corporate Bond 3.35% 03/09/21
**
1,236

 
CANADIAN IMP BANK 2.55% 6/22
Corporate Bond 2.55% 6/22
**
1,273

 
CAN NATURAL RES 3.45% 11/15/21
Corporate Bond 3.45% 11/15/21
**
1,123

 
CPART 2018-1A A3 3.088% 11/21
Mortgage Back Security 3.088% 11/21
**
1,340

 
CPART 17-1A A3 2.05% 03/21
Mortgage Back Security 2.05% 03/21
**
998

 
CPART 18-2A A3 3.429% 12/22
Mortgage Back Security 3.429% 12/22
**
1,175

 
CAPITAL ONE FIN 3.2% 1/30/23
Corporate Bond 3.2% 1/30/23
**
2,466

 
COMET 2015-A2 A2 2.08% 03/23
Mortgage Back Security 2015-A2 A2 2.08% 03/23
**
2,272

 
COMET 2015-A8 A8 2.05% 08/23
Mortgage Back Security 2015/A8 A8 2.05% 08/23
**
1,181

 
COMET 2016-A3 A3 1.34% 04/22
Mortgage Back Security 2016-A3 A3 1.34% 04/22
**
25


19
Eastman Investment and Employee Stock Ownership Plan
Schedule H, Line 4 (i) - Schedule of Assets (Held at End of Year)
December 31, 2018
(in thousands)

(a)
(b)
 Identity of issue, borrower, lessor, or similar party
(c)
 Description of investment, including maturity date, rate of interest, collateral, par or maturity value
(d)
Historical Cost
(e)
Current Value
 
COMET 2016-A4 A4 1.33% 6/15/22
Mortgage Back Security 2016-A4 A4 1.33% 6/15/22
**
1,390

 
COMET 2017-A3 A3
Mortgage Back Security 2017-A3 A3 2.0% 01/17/23
**
1,749

 
COMET 2017-A4 A4 1.99% 07/23
Mortgage Back Security 2017-A4 A4 1.99% 07/23
**
2,507

 
COMET 2018-A1 A1 3.01% 02/24
Mortgage Back Security 2018-A1 A1 3.01% 02/24
**
1,045

 
CARMX 16-4 A3 1.4% 08/21
Mortgage Back Security 1.4% 08/21
**
1,156

 
CARMX 2015-3 A3 1.63% 06/20
Mortgage Back Security 1.63% 06/20
**
66

 
CARMX 2016-2 A3 1.52% 02/21
Mortgage Back Security 1.52% 02/21
**
334

 
CARMX 2017-4 A3 2.15% 10/22
Mortgage Back Security 2.15% 10/22
**
711

 
CARMX 2017-3 A3 1.97% 04/22
Mortgage Back Security 1.97% 04/22
**
675

 
CARMX 2018-2 A3 2.98% 01/23
Mortgage Back Security 2.98% 01/23
**
873

 
CARMX 2018-4 A3 3.36% 09/23
Mortgage Back Security 3.36% 09/23
**
946

 
CATERPILLAR FINL 2.1% 01/10/20
Corporate Bond 2.1% 01/10/20
**
1,237

 
CENTERPOINT ENE 2.50% 09/01/22
Corporate Bond 2.50% 09/01/22
**
370

 
CHAIT 2015-A4 A4 1.84% 04/22
Mortgage Back Security 2015-A4 A4 1.84% 04/22
**
1,784

 
CHAIT 2016-A2 1.37% 06/15/21
Mortgage Back Security 2016-A2 1.37% 06/15/21
**
1,833

 
CHEVRON PHIL 2.45% 5/1/20 144A
Corporate Bond 2.45% 5/1/20 144A
**
671

 
CHEVRON PHIL 3.3% 5/23 144A
Corporate Bond 3.3% 5/23 144A
**
941

 
CHEVRON CORP 2.193% 11/15/19
Corporate Bond 2.193% 11/15/19
**
65

 
CISCO SYSTEMS 2.45% 6/15/20
Corporate Bond 2.45% 6/15/20
**
727

 
CGCMT 2016-P6 A1 1.884% 12/49
Mortgage Back Security 2016-P6 A1 1.884% 12/49
**
159

 
CITIGROUP INC 2.5% 7/29/19
Corporate Bond 2.5% 7/29/19
**
1,823

 
CITIGROUP INC 2.75% 4/25/2022
Corporate Bond 2.75% 4/25/2022
**
1,283

 
CITIGROUP INC 2.7% 10/27/2022
Corporate Bond 2.7% 10/27/2022
**
194

 
CITIGROUP 3.124%/VAR 1/24/23
Corporate Bond 3.124%/VAR 1/24/23
**
674

 
CCCIT 2014-A6 A6 2.15% 07/21
Mortgage Back Security 2014-A6 A6 2.15% 07/21
**
4,203

 
CCCIT 2016-A1 A1 1.75% 11/21
Mortgage Back Security 2016-A1 A1 1.75% 11/21
**
2,255

 
CCCIT 2017-A3 A3 1.92% 04/22
Mortgage Back Security 2017-A3 A3 1.92% 04/22
**
1,948

 
CCCIT 2017-A8 A8 1.86% 8/8/22
Mortgage Back Security 2017-A8 A8 1.86% 8/8/22
**
1,725

 
CCCIT 2017-A9 A9 1.8% 09/21
Mortgage Back Security 2017-A9 A9 1.8% 09/21
**
1,716

 
CCCIT 2018-A1 A1 2.539% 01/23
Mortgage Back Security 2018-A1 A1 2.539% 01/23
**
1,646

 
CGCMT 2012-GC8 A4 3.024% 9/45
Mortgage Back Security 2012-GC8 A4 3.024% 9/45
**
873

 
CGCMT 13-GC11 A4 3.093% 04/46
Mortgage Back Security 13-GC11 A4 3.093% 04/46
**
230

 
CGCMT 13-GC15 A4 4.371% 09/46
Mortgage Back Security 13-GC15 A4 4.371% 09/46
**
590

 
CGCMT 13-GC17 A4 4.131% 11/46
Mortgage Back Security 13-GC17 A4 4.131% 11/46
**
746

 
CGCMT 2014-GC23 A3 3.356% 07/47
Mortgage Back Security 2014-GC23 A3 3.356% 07/47
**
1,478

 
CGCMT 16-GC36 AAB 3.368% 02/49
Mortgage Back Security 16-GC36 AAB 3.368% 02/49
**
796

 
CGCMT 2017-P7 A2 3.199% 04/50
Mortgage Back Security 2017-P7 A2 3.199% 04/50
**
803

 
CITIZENS BK MTN 2.45% 12/04/19
Corporate Bond 2.45% 12/04/19
**
2,761

 
CITIZENS BANK NA 2.55% 5/13/21
Corporate Bond 2.55% 5/13/21
**
1,157

 
CITIZENS BANK NA 2.65% 5/26/22
Corporate Bond 2.65% 5/26/22
**
838

 
CITIZENS BK MTN 2.25% 10/30/20
Corporate Bond 2.25% 10/30/20
**
859

 
CITIZENS FINCL 2.375% 7/28/21
Corporate Bond 2.375% 7/28/21
**
125

 
COMCAST CORP 1.625% 01/15/22
Corporate Bond 1.625% 01/15/22
**
2,193

 
COMCAST CORP NEW 3.7% 04/24
Corporate Bond 3.7% 04/24
**
1,522

 
COMCAST CORP 4% 10/15/25
Corporate Bond 4% 10/15/25
**
875

 
COMERICA INC 2.125% 05/23/19
Corporate Bond 2.125% 05/23/19
**
496

 
COMMONWEALTH NY 2.25% 03/13/19
Corporate Bond 2.25% 03/13/19
**
1,707

 
COMMONWEALTH BK NY 2.3% 9/6/19
Corporate Bond 2.3% 9/6/19
**
1,153

 
COMMWLTH BK ASTL NYB 2.3% 3/20
Corporate Bond 2.3% 3/20
**
707

 
COMPASS BANK 2.875% 6/29/22
Corporate Bond 2.875% 06/29/22
**
910


20
Eastman Investment and Employee Stock Ownership Plan
Schedule H, Line 4 (i) - Schedule of Assets (Held at End of Year)
December 31, 2018
(in thousands)

(a)
(b)
 Identity of issue, borrower, lessor, or similar party
(c)
 Description of investment, including maturity date, rate of interest, collateral, par or maturity value
(d)
Historical Cost
(e)
Current Value
 
COMPASS BK BIRM 3.5% 6/11/21
Corporate Bond 3.5% 6/11/21
**
1,166

 
CONSOLIDATED EDISON 2% 3/15/20
Corporate Bond 2% 3/15/20
**
465

 
RABOBANK NY BRH 1.375% 8/9/19
Corporate Bond 1.375% 8/9/19
**
448

 
CREDIT SUISSE 3.125% 12/20
Corporate Bond 3.125% 12/20
**
248

 
CREDIT SUISSE GG 3.45% 4/16/21
Corporate Bond 3.45% 4/16/21
**
1,094

 
CREDIT SUISSE NY 2.3% 5/19
Corporate Bond 2.3% 5/19
**
1,639

 
CREDIT SUISSE NY 3% 10/29/21
Corporate Bond 3% 10/29/21
**
754

 
DBUBS 2011-LC2A A4 4.537% 7/44
Mortgage Back Security 2011-LC2A A4 4.537% 7/44
**
1,319

 
DAIMLER FIN NA 2.25% 9/19 144A
Corporate Bond 2.25% 9/19 144A
**
1,682

 
DAIMLER FIN 2.25% 3/20 144A
Corporate Bond 2.25% 3/20 144A
**
1,612

 
DAIMLER FIN 2.85% 1/6/22 144A
Corporate Bond 2.85% 1/6/22 144A
**
1,031

 
DAIMLER FIN 2.3% 2/12/21 144A
Corporate Bond 2.3% 2/12/21 144A
**
1,674

 
DEFT 18-1 A3 3.39% 06/23
Mortgage Back Security 18-1 A3 3.39% 06/23
**
494

 
DEFT 2018-2 A3 3.44% 10/23
Mortgage Back Security 2018-2 A3 3.44% 10/23
**
647

 
DEUTSCHE BANK AG 2.5% 2/13/19
Corporate Bond 2.5% 2/13/19
**
2,519

 
DIAMOND 1 FI 3.48% 6/1/19 144A
Corporate Bond 3.48% 6/1/19 144A
**
1,510

 
DIAMOND FN 1/2 5.45% 6/23 144A
Corporate Bond 5.45% 6/23 144A
**
1,482

 
DIGITAL REALTY 3.95% 07/01/22
Corporate Bond 3.95% 07/01/22
**
504

 
DIGITAL REALTY TR 2.75% 2/1/23
Corporate Bond 2.75% 2/1/23
**
615

 
DIGNITY HEALTH 2.637% 11/1/19
Corporate Bond 2.637% 11/1/19
**
200

 
DISCOVER BKNT NEW 3.2% 8/9/21
Corporate Bond 3.2% 8/9/21
**
251

 
DISCOVER BANK 3.1% 06/20
Corporate Bond 3.1% 06/20
**
779

 
DISCOVER BANK 3.35% 2/06/23
Corporate Bond 3.35% 2/06/23
**
462

 
DISNEY (WALT) MTN 2.35% 12/01/22
Corporate Bond 2.35% 12/01/22
**
597

 
DCENT 2015-A2 A 1.90% 10/22
Mortgage Back Security 2015-A2 A 1.90% 10/22
**
1,247

 
DCENT 2016-A3 A3 1.85% 10/23
Mortgage Back Security 2016-A3 A3 1.85% 10/23
**
1,195

 
DCENT 2016-A4 A4 1.39% 3/22
Mortgage Back Security 2016-A4 A4 1.39% 3/22
**
1,761

 
DCENT 2017-A6 A6 1.88% 2/15/23
Mortgage Back Security 2017-A6 A6 1.88% 2/15/23
**
1,275

 
DCENT 2018-A5 A5 3.32% 03/24
Mortgage Back Security 2018-A5 A5 3.32% 03/24
**
1,890

 
DOMINION GAS HLDGS 2.5% 12/19
Corporate Bond 2.5% 12/19
**
258

 
DOMINION RESOURCE 2% 8/15/21
Corporate Bond 2% 8/15/21
**
430

 
DUKE ENERGY 1.8% 9/1/21
Corporate Bond 1.8% 9/1/21
**
386

 
DUKE ENERGY FL 1.196% 3/1/20
Mortgage Back Security 1.196% 3/1/20
**
121

 
ERP OPERATING LP 2.375% 7/19
Corporate Bond 2.375% 7/19
**
549

 
ERP OPERATING LP 3.375% 6/1/25
Corporate Bond 3.375% 6/1/25
**
730

 
EDISON INTRNL 2.95% 03/15/23
Corporate Bond 2.95% 03/15/23
**
262

 
ENTERPRISE PRD 2.55% 10/15/19
Corporate Bond 2.55% 10/15/19
**
157

 
ENTERPRISE PROD 2.85% 4/15/21
Corporate Bond 2.85% 4/15/21
**
577

 
EVERSOURCE ENERGY 2.5% 3/15/21
Corporate Bond 2.5% 3/15/21
**
1,375

 
EVERSOURCE ENERGY 2.8% 3/15/22
Corporate Bond 2.8% 3/15/22
**
1,184

 
EXELON CORP 2.85% 6/15/20
Corporate Bond 2.85% 6/15/20
**
1,723

 
EXELON CORP VAR 06/01/2022
Corporate Bond VAR 06/01/2022
**
760

 
EXXON MOBIL CORP 2.726% 3/1/23
Corporate Bond 2.726% 3/1/23
**
1,103

 
FHLG 15YR 5.00% 4/20 #G13598
Government Bond 5.00% 4/20 #G13598
**
2

 
FHLG 15YR 3.5% 08/30#G15273
Government Bond 3.5% 08/30#G15273
**
865

 
FHLG 15YR 2.5% 10/31 #G16387
Government Bond 2.5% 10/31 #G16387
**
1,800

 
FHLG 25YR 5.50% 7/35 #G05815
Government Bond 5.50% 7/35 #G05815
**
66

 
FHLG 20YR 3.5% 06/32#C91456
Government Bond 3.5% 06/32#C91456
**
1,322

 
FHLG 5.50% 3/34 #G01665
Government Bond 5.50% 3/34 #G01665
**
97

 
FHLG 15YR 4.00% 9/25 #E02787
Government Bond 4.00% 9/25 #E02787
**
164


21
Eastman Investment and Employee Stock Ownership Plan
Schedule H, Line 4 (i) - Schedule of Assets (Held at End of Year)
December 31, 2018
(in thousands)

(a)
(b)
 Identity of issue, borrower, lessor, or similar party
(c)
 Description of investment, including maturity date, rate of interest, collateral, par or maturity value
(d)
Historical Cost
(e)
Current Value
 
FHLG 15YR 4.00% 4/26 #E02867
Government Bond 4.00% 4/26 #E02867
**
96

 
FHLB 0.875% 08/05/19
Government Bond 0.875% 08/05/19
**
1,167

 
FHLG 15YR 3% 05/29 #J29409
Government Bond 3% 05/29 #J29409
**
2,000

 
FHLG 5.50% 5/34 #Z40042
Government Bond 5.50% 5/34 #Z40042
**
738

 
FHLG 20YR 3% 11/33#G30872
Government Bond 3% 11/33#G30872
**
1,587

 
FHLG 20YR 3.5% 05/38#G31067
Government Bond 3.5% 05/38#G31067
**
878

 
FNMA 1.25% 08/17/21
Government Bond 1.25% 08/17/21
**
1,143

 
FNR 2012-149 DA 1.75% 01/43
Mortgage Back Security 2012-149 DA 1.75% 01/43
**
200

 
FNR 2013-16 GP 3% 03/33
Mortgage Back Security 2013-16 GP 3% 03/33
**
620

 
FNR 2014-83 P 3% 06/43
Mortgage Back Security 2014-83 P 3% 06/43
**
1,047

 
FNR 2015-32 PA 3% 4/44
Mortgage Back Security 2015-32 PA 3% 4/44
**
820

 
FNR 2015-28 P 2.5% 5/45
Mortgage Back Security 2015-28 P 2.5% 5/45
**
2,068

 
FNR 2015-28 JE 3% 05/45
Mortgage Back Security 2015-28 JE 3% 05/45
**
1,465

 
FNR 2015-42 LE 3% 06/45
Mortgage Back Security 2015-42 LE 3% 06/45
**
1,312

 
FNR 2015-49 LE 3% 07/45
Mortgage Back Security 2015-49 LE 3% 07/45
**
950

 
FNR 2015-54 GA 2.5% 07/45
Mortgage Back Security 2015-54 GA 2.5% 07/45
**
1,122

 
FNR 2016-19 AH 3% 04/46
Mortgage Back Security 2016-19 AH 3% 04/46
**
982

 
FNR 2016-26 CG 3% 05/46
Mortgage Back Security 2016-26 CG 3% 05/46
**
2,562

 
FNR 2016-27 HK 3% 01/41
Mortgage Back Security 2016-27 HK 3% 01/41
**
1,273

 
FNR 2016-27 KG 3% 01/40
Mortgage Back Security 2016-27 KG 3% 01/40
**
631

 
FNR 2016-37 BK 3% 06/46
Mortgage Back Security 2016-37 BK 3% 06/46
**
2,688

 
FNR 2016-34 GH 3% 06/46
Mortgage Back Security 2016-34 GH 3% 06/46
**
2,537

 
FNR 2016-105 PA 3.5% 4/45
Mortgage Back Security 2016-105 PA 3.5% 4/45
**
1,701

 
FNR 2016-100 P 3.5% 11/44
Mortgage Back Security 2016-100 P 3.5% 11/44
**
2,579

 
FNR 2017-11 HA 3.5% 12/45
Mortgage Back Security 2017-11 HA 3.5% 12/45
**
2,669

 
FNR 2017-20 AP 3.5% 03/45
Mortgage Back Security 2017-20 AP 3.5% 03/45
**
3,011

 
FNR 2017-74 PA 3.5% 11/45
Mortgage Back Security 2017-74 PA 3.5% 11/45
**
2,616

 
FNR 2017-97 P 3% 01/47
Mortgage Back Security 2017-97 P 3% 01/47
**
1,743

 
FNR 2018-3 LP 3% 02/47
Mortgage Back Security 2018-3 LP 3% 02/47
**
4,804

 
FNR 2018-16 NB 3.25% 12/44
Mortgage Back Security 2018-16 NB 3.25% 12/44
**
1,670

 
FNR 2018-11 LA 3.5% 7/45
Mortgage Back Security 2018-11 LA 3.5% 7/45
**
2,175

 
FNR 2018-44 PA 3.5% 06/44
Mortgage Back Security 2018-44 PA 3.5% 06/44
**
10,534

 
FNR 2018-88 BA 4% 11/25/43
Mortgage Back Security 2018-88 BA 4% 11/25/43
**
3,070

 
FHR 2012-4135 AB 1.75% 06/42
Mortgage Back Security 2012-4135 AB 1.75% 06/42
**
151

 
FHMS 2013-K025 A2 2.682% 10/22
Mortgage Back Security 2013-K025 A2 2.682% 10/22
**
402

 
FHR 2015-4472 WL 3% 05/45
Mortgage Back Security 2015-4472 WL 3% 05/45
**
832

 
FHMS K724 A1 2.776% 03/23
Mortgage Back Security K724 A1 2.776% 03/23
**
534

 
FHR 4656 PA 3.5% 10/45
Mortgage Back Security 4656 PA 3.5% 10/45
**
1,777

 
FHR 4683 EA 2.5% 05/47
Mortgage Back Security 4683 EA 2.5% 05/47
**
2,256

 
FHMS K035 A2 3.458% 08/23
Mortgage Back Security K035 A2 3.458% 08/23
**
1,929

 
FHLMC 1.125% 08/12/21
Government Bond 1.125% 08/12/21
**
1,426

 
FHMS 2017-K727 A1 2.632% 10/23
Mortgage Back Security 2017-K727 A1 2.632% 10/23
**
375

 
FHR 2018-4765 QA 3% 02/46
Mortgage Back Security 2018-4765 QA 3% 02/46
**
3,539

 
FHMS 2018-K079 A1 3.729% 02/28
Mortgage Back Security 2018-K079 A1 3.729% 02/28
**
509

 
FHR 4847 CA 3.5% 11/15/45
Mortgage Back Security 4847 CA 3.5% 11/15/45
**
2,177

 
FHR 2018-4766 MA 3.5% 02/46
Mortgage Back Security 2018-4766 MA 3.5% 02/46
**
3,409

*
Fidelity Short Term Cash Fund
Fid Inst Cash Port: MM Fund Class 1 SHS F/N/A
**
15,636

 
FNMA 5.50% 11/34 #310105
Government Bond 5.50% 11/34 #310105
**
535

 
FNMA 15YR 3.5% 07/26#AI7819
Government Bond 15YR 3.5% 07/26#AI7819
**
65

 
FNMA 15YR 3.50% 1/26 #AL1168
Government Bond 15YR 3.50% 1/26 #AL1168
**
143


22
Eastman Investment and Employee Stock Ownership Plan
Schedule H, Line 4 (i) - Schedule of Assets (Held at End of Year)
December 31, 2018
(in thousands)

(a)
(b)
 Identity of issue, borrower, lessor, or similar party
(c)
 Description of investment, including maturity date, rate of interest, collateral, par or maturity value
(d)
Historical Cost
(e)
Current Value
 
FNMA 15YR 3.50% 3/27 #AL1746
Government Bond 15YR 3.50% 3/27 #AL1746
**
648

 
FNMA 20YR 2.5% 01/33 #AL2974
Government Bond 20YR 2.5% 01/33 #AL2974
**
449

 
FNMA 20YR 2.5% 01/33 #AL2975
Government Bond 20YR 2.5% 01/33 #AL2975
**
503

 
FNMA 20YR 2.5% 01/33 #AL2976
Government Bond 20YR 2.5% 01/33 #AL2976
**
303

 
FNMA 20YR 2.5% 01/33 #AL2982
Government Bond 20YR 2.5% 01/33 #AL2982
**
356

 
FNMA 15YR 3.5% 10/29#AL5851
Government Bond 15YR 3.5% 10/29#AL5851
**
279

 
FNMA 15YR 3.5% 09/29#AL5878
Government Bond 15YR 3.5% 09/29#AL5878
**
710

 
FNMA 15YR 4.5% 11/25#AL8242
Government Bond 15YR 4.5% 11/25#AL8242
**
515

 
FNMA 15YR 3% 09/31#AL8853
Government Bond 15YR 3% 09/31#AL8853
**
3,151

 
FNMA 15YR 3.5% 01/27 #AX1909
Government Bond 15YR 3.5% 01/27 #AX1909
**
298

 
FNMA 6.50% 7/32 #545759
Government Bond 6.50% 7/32 #545759
**
30

 
FNMA 6.50% 7/32 #545762
Government Bond 6.50% 7/32 #545762
**
7

 
FHR 3415 PC 5% 12/37
Mortgage Back Security 3415 PC 5% 12/37
**
69

 
FNR 2011-26 PA 4.5% 04/41
Mortgage Back Security 2011-26 PA 4.5% 04/41
**
758

 
FNMA 3.5% 07/32 #BM3929
Government Bond 3.5% 07/32 #BM3929
**
2,479

 
FNMA 15YR 4% 08/27 #BM4533
Government Bond 4% 08/27 #BM4533
**
1,970

 
FNMA 6.50% 12/32 #735415
Government Bond 6.50% 12/32 #735415
**
11

 
FNMA 6.50% 7/35 #745092
Government Bond 6.50% 7/35 #745092
**
13

 
FNMA 6.50% 8/36 #888034
Government Bond 6.50% 8/36 #888034
**
21

 
FNMA 6.50% 8/36 #888544
Government Bond 6.50% 8/36 #888544
**
90

 
FNMA 10YR 2% 08/23#MA1535
Government Bond 10YR 2% 08/23#MA1535
**
820

 
FNMA 6.50% 12/35 #AD0723
Government Bond 6.50% 12/35 #AD0723
**
114

 
FNMA 6.50% 8/36 #AE0746
Government Bond 6.50% 8/36 #AE0746
**
76

 
FIFTH THIRD BAN 2.875% 10/1/21
Corporate Bond 2.875% 10/1/21
**
756

 
FIFTH THIRD BK 2.3% 3/19
Corporate Bond 2.3% 3/19
**
714

 
FIFTH THIRD BNK 1.625% 9/27/19
Corporate Bond 1.625% 9/27/19
**
1,759

 
FITAT 2017-1 A3 1.8% 02/22
Mortgage Back Security 2017-1 A3 1.8% 02/22
**
1,047

 
FORDO 2018-A A3 3.03% 11/22
Mortgage Back Security 2018-A A3 3.03% 11/22
**
1,557

 
FORDF 2016-1 A1 1.76% 02/21
Mortgage Back Security 2016-1 A1 1.76% 02/21
**
709

 
FORDF 2017-1 A1 2.07% 05/15/22
Mortgage Back Security 2017-1 A1 2.07% 05/15/22
**
1,021

 
FORDF 2017-2 A1 2.16% 09/22
Mortgage Back Security 2017-2 A1 2.16% 09/22
**
1,701

 
FORDF 2018-1 A1 2.95% 5/21
Mortgage Back Security 2018-1 A1 2.95% 5/21
**
2,020

 
FORDR 2014-2 A 2.31% 04/26
Mortgage Back Security 2014-2 A 2.31% 04/26
**
960

 
FORDR 2015-1 A 2.12% 07/26
Mortgage Back Security 2015-1 A 2.12% 07/26
**
2,236

 
FORD CRD 16-1 A 2.31% 08/27
Mortgage Back Security 16-1 A 2.31% 08/27
**
2,060

 
FORDO 2016-C A3 1.22% 03/21
Mortgage Back Security 2016-C A3 1.22% 03/21
**
1,284

 
FORDO 2017-A A3 1.67% 6/21
Mortgage Back Security 2017-A A3 1.67% 6/21
**
1,458

 
FORDO 2016-A A3 2.01% 07/20
Mortgage Back Security 2016-A A3 2.01% 07/20
**
260

 
FORDO 16-B A3 1.33% 10/20
Mortgage Back Security 16-B A3 1.33% 10/20
**
366

 
FORD MTR CR CO 3.36% 03/18/21
Corporate Bond 3.36% 03/18/21
**
1,715

 
FORD MTR CR CO 2.681% 01/09/20
Corporate Bond 2.681% 01/09/20
**
897

 
FORD MTR CR LLC 3.339% 3/28/22
Corporate Bond 3.339% 3/28/22
**
716

 
FORD MTR CR CO 4.14% 02/15/23
Corporate Bond 4.14% 02/15/23
**
1,449

 
FORTIVE CORP 1.8% 06/15/19
Corporate Bond 1.8% 06/15/19
**
37

 
FORTIVE CORP 2.35% 06/15/21
Corporate Bond 2.35% 06/15/21
**
522

 
GE CAP INTL 2.342% 11/15/20
Corporate Bond 2.342% 11/15/20
**
1,462

 
GFORT 16-1 A1 1.86% 05/21
Mortgage Back Security 16-1 A1 1.86% 05/21
**
1,116

 
GFORT 17-1 A1 2.22% 1/22 144A
Mortgage Back Security 17-1 A1 2.22% 144A
**
1,343

 
GFORT 2018-2 A1 3.25% 03/23
Mortgage Back Security 2018-2 A1 3.25% 03/23
**
1,548

 
GSMS 2012-GC6 A3 3.482% 01/45
Mortgage Back Security 2012-GC6 A3 3.482% 01/45
**
912


23
Eastman Investment and Employee Stock Ownership Plan
Schedule H, Line 4 (i) - Schedule of Assets (Held at End of Year)
December 31, 2018
(in thousands)

(a)
(b)
 Identity of issue, borrower, lessor, or similar party
(c)
 Description of investment, including maturity date, rate of interest, collateral, par or maturity value
(d)
Historical Cost
(e)
Current Value
 
GSMS 2013-GC10 A4 2.681% 02/46
Mortgage Back Security 2013-GC10 A4 2.681% 02/46
**
326

 
GSMS 2013-GC10 A5 2.943% 02/46
Mortgage Back Security 2013-GC10 A5 2.943% 02/46
**
1,763

 
GSMS 2012-GCJ7 A4 3.377% 05/45
Mortgage Back Security 2012-GCJ7 A4 3.377% 05/45
**
1,500

 
GSMS 2012-GCJ9 A3 2.773% 11/45
Mortgage Back Security 2012-GCJ9 A3 2.773% 11/45
**
2,171

 
GSMC 14-GC26 AAB 3.365% 11/47
Mortgage Back Security 14-GC26 AAB 3.365% 11/47
**
1,055

 
GSMS 2015-GC32 A2 3.062% 7/48
Mortgage Back Security 2015-GC32 A2 3.062% 7/48
**
1,119

 
GSMS 15-GC32 AAB 3.513% 7/48
Mortgage Back Security 15-GC32 AAB 3.513% 7/48
**
591

 
GSMS 2015-GC28 AAB 3.206% 2/48
Mortgage Back Security 2015-GC28 AAB 3.206% 2/48
**
746

 
GSMS 2016-GS4 A1 1.532% 11/49
Mortgage Back Security 2016-GS4 A1 1.532% 11/49
**
161

 
GSMS 14-GC18 AAB 3.648% 01/47
Mortgage Back Security 14-GC18 AAB 3.648% 01/47
**
251

 
GSMS 14-GC20 AAB 3.655% 04/47
Mortgage Back Security 14-GC20 AAB 3.655% 04/47
**
290

 
GMALT 2018-2 A3 3.1% 06/21
Mortgage Back Security 2018-2 A3 3.1% 06/21
**
863

 
GMCAR 2018-1A A3 2.39% 7/18/22
Mortgage Back Security 2018-1A A3 2.39% 7/18/22
**
746

 
GENERAL ELEC CO 3.375% 3/11/24
Corporate Bond 3.375% 3/11/24
**
1,410

 
GENERAL MILLS INC 3.2% 4/16/21
Corporate Bond 3.2% 4/16/21
**
302

 
GENERAL MTRS FIN 2.65% 4/13/20
Corporate Bond 2.65% 4/13/20
**
1,228

 
GENERAL MTRS FINL 3.55% 4/9/21
Corporate Bond 3.55% 4/9/21
**
998

 
GENERAL MTR FIN 4.15% 06/19/23
Corporate Bond 4.15% 06/19/23
**
1,691

 
GSINC 5.25% 7/27/21
Corporate Bond 5.25% 7/27/21
**
695

 
GOLDMAN SACHS GRP 2.75 9/15/20
Corporate Bond 2.75 9/15/20
**
1,223

 
GOLDMAN SACHS GRP 3.2% 2/23/23
Corporate Bond 3.2% 2/23/23
**
1,178

 
GOLDMAN SAC BK USA 3.2% 6/5/20
Corporate Bond 3.2% 6/5/20
**
751

 
GOLDMAN SACHS 2.876%/VAR 10/22
Corporate Bond 2.876%/VAR 10/22
**
1,273

 
HSBC HLDNGS 3.262/VAR 3/13/23
Corporate Bond 3.262/VAR 3/13/23
**
1,483

 
HSBC HOLDINGS 3.95%/VAR 5/24
Corporate Bond 3.95%/VAR 5/24
**
1,599

 
HSBC USA INC 2.25% 06/23/19
Corporate Bond 2.25% 06/23/19
**
827

 
HALFMOON PA 3.4% 9/17/21 144A
Corporate Bond 3.4% 9/17/21 144A
**
1,326

 
HALFMOON P 3.75% 07/15/23 144A
Corporate Bond 3.75% 07/15/23 144A
**
677

 
HEALTH CARE REI 4% 06/01/25
Corporate Bond 4% 06/01/25
**
1,080

 
HAROT 2016-4 A3 1.21% 12/20
Mortgage Back Security 2016-4 A3 1.21% 12/20
**
1,164

 
HAROT 2017-1 A3 1.72% 07/21
Mortgage Back Security 2017-1 A3 1.72% 07/21
**
1,272

 
HUNT AUTO 16-1 A3 1.57% 11/20
Mortgage Back Security 1.57% 11/20
**
374

 
HUNTINGTN BCSHRS 2.3% 1/14/22
Corporate Bond 2.3% 1/14/22
**
1,054

 
HUNTINGTON NATL BK 2.2% 4/1/19
Corporate Bond 2.2% 4/1/19
**
853

 
HUNTINGTON NATL BK 3.25% 5/21
Corporate Bond 3.25% 5/21
**
1,791

 
HYUNDAI AMR 1.75% 9/27/19 144A
Corporate Bond 1.75% 9/27/19 144A
**
1,745

 
HART 2016-B A3 1.29% 4/21
Mortgage Back Security 2016-B A3 1.29% 4/21
**
1,507

 
HART 2018-A A3 2.79% 07/22
Mortgage Back Security 2018-A A3 2.79% 07/22
**
1,013

 
HART 2015-C A3 1.46% 02/20
Mortgage Back Security 2015-C A3 1.46% 02/20
**
27

 
HFMOT 2016-1A A2 1.81% 03/21
Mortgage Back Security 2016-1A A2 1.81% 03/21
**
782

 
HART 2016-A A3 1.56% 09/20
Mortgage Back Security 2016-A A3 1.56% 09/20
**
196

 
INGERSOLL-RND LX 2.625% 5/1/20
Corporate Bond 2.625% 5/1/20
**
204

 
INTERCONT EXCH 2.75% 12/01/20
Corporate Bond 2.75% 12/01/20
**
767

 
INTERCO EXCH INC 3.45% 9/21/23
Corporate Bond 3.45% 9/21/23
**
938

 
ITC HLDGS CORP 2.7% 11/15/22
Corporate Bond 2.7% 11/15/22
**
1,046

 
JPMCC 2015-JP1 A2 3.1438% 1/49
Mortgage Back Security 2015-JP1 A2 3.1438% 1/49
**
788

 
JP MORGAN CHASE 2.295% 8/15/21
Corporate Bond 2.295% 8/15/21
**
394

 
JPMORGAN CHASE & CO 2.75% 6/20
Corporate Bond 2.75% 6/20
**
3,183

 
JPMC CO 2.55% 10/29/20
Corporate Bond 2.55% 10/29/20
**
1,053

 
JPMORGAN CHASE 2.55% 3/1/21
Corporate Bond 2.55% 3/1/21
**
1,064


24
Eastman Investment and Employee Stock Ownership Plan
Schedule H, Line 4 (i) - Schedule of Assets (Held at End of Year)
December 31, 2018
(in thousands)

(a)
(b)
 Identity of issue, borrower, lessor, or similar party
(c)
 Description of investment, including maturity date, rate of interest, collateral, par or maturity value
(d)
Historical Cost
(e)
Current Value
 
JP MORGAN CHASE
Synthetic GIC – 2.4% (fair value to contract value)
**
1,689

 
JPMCC 2012-C6 A3 3.5074% 5/45
Mortgage Back Security 2012-C6 A3 3.5074% 5/45
**
614

 
JPMCC 13-C10 A5 3.1425% 12/47
Mortgage Back Security 13-C10 A5 3.1425% 12/47
**
1,523

 
JPMBB 14-C22 ASB 3.5036% 09/47
Mortgage Back Security 14-C22 ASB 3.5036% 09/47
**
734

 
JPMCC 16-JP4 A2 2.9343% 12/49
Mortgage Back Security 16-JP4 A2 2.9343% 12/49
**
1,065

 
JPMC CO 3.559%/VAR 04/23/24
Corporate Bond 3.559%/VAR 04/23/24
**
1,998

 
JPMORGAN CHASE 3.514% 6/18/22
Corporate Bond 3.514% 6/18/22
**
1,606

 
JPMORGAN CHASE 4.023/VAR 12/24
Corporate Bond 4.023/VAR 12/24
**
738

 
JAPAN BANK INTL 1.5% 7/21/21
Corporate Bond 1.5% 7/21/21
**
1,278

 
JERSEY CENT PWR&LT 7.35% 2/19
Corporate Bond 7/35% 2/19
**
67

 
KEY BANK NA 2.5% 12/15/19
Corporate Bond 2.5% 12/15/19
**
585

 
KEYBANK NATL 2.25% 03/16/20
Corporate Bond 2.25% 03/16/20
**
384

 
KINDER MORGAN EN 2.65 2/1/19
Corporate Bond 2.65% 2/1/19
**
413

 
KINDER MORGAN IC 3.05% 12/1/19
Corporate Bond 3.05% 12/1/19
**
546

 
KCOT 2018-1A A3 3.1% 08/22
Mortgage Back Security 2018-1A A3 3.1% 08/22
**
2,019

 
LINCOLN NATL LIFE INS CO
Synthetic GIC – 2.4% (fair value to contract value)
**
350

 
MARSH & MCLENNAN 2.35% 9/10/19
Corporate Bond 2.35% 9/10/19
**
476

 
MARSH & MCLENN 2.35% 03/06/20
Corporate Bond 2.35% 03/06/20
**
719

 
MARSH & MCLENNAN 2.75% 01/30/22
Corporate Bond 2.75% 01/30/22
**
1,675

 
MASSMUTUAL 2.45% 11/23/20 144A
Corporate Bond 2.45% 11/23/20 144A
**
702

 
MCDONALDS CORP MTN 3.625% 5/21
Corporate Bond 3.625% 5/21
**
401

 
MCDONALDS MTN 2.625% 1/15/22
Corporate Bond 2.625% 1/15/22
**
891

 
MCDONALDS CORP 2.75% 12/20
Corporate Bond 2.75% 12/20
**
137

 
MET LFE GLB 1.55% 9/13/19 144A
Corporate Bond 1.55% 9/13/19 144A
**
1,293

 
MET LIFE GLOB 2.65% 4/22 144A
Corporate Bond 2.65% 4/22 144A
**
1,294

 
MITSUBISHI 2.45% 10/16/19 144A
Corporate Bond 2.45% 10/16/19 144A
**
760

 
MITSUBISHI UFJ FI 2.95% 3/1/21
Corporate Bond 2.95% 3/1/21
**
1,624

 
MITSUBISH UFJ 2.19% 9/13/21
Corporate Bond 2.19% 9/13/21
**
1,652

 
MITSUBISHI UFJ FIN 2.998% 2/22
Corporate Bond 2.998% 2/22
**
897

 
MITSUBISHI UFJ 3.455% 3/02/23
Corporate Bond 3.455% 3/02/23
**
804

 
MIZUHO FINL 2.273% 9/13/21
Corporate Bond 2.273% 9/13/21
**
870

 
MOODYS CORP 2.75% 12/15/21
Corporate Bond 2.75% 12/15/21
**
537

 
MSBAM 15-C22 ASB 3.04% 4/15/48
Mortgage Back Security 15-C22 ASB 3.04% 4/15/48
**
407

 
MSBAM 2013-C7 A4 2.918% 2/46
Mortgage Back Security 2013-C7 A4 2.918% 2/46
**
1,254

 
MSBAM 2016-C32 A1 1.819% 12/49
Mortgage Back Security 2016-C32 A1 1.819% 12/49
**
491

 
MORGAN STANLEY 2.75% 05/19/22
Corporate Bond 2.75% 05/19/22
**
761

 
MORGAN STANLEY 3.125% 01/23/23
Corporate Bond 3.125% 01/23/23
**
1,554

 
MORGAN STANLEY 3.737%/VAR 4/24
Corporate Bond 3.737%/VAR 4/24
**
1,606

 
MSC 2011-C2 A4 4.661% 06/44
Mortgage Back Security 2011-C2 A4 4.661% 06/44
**
1,141

 
MORGAN STANLEY 2.375% 7/23/19
Corporate Bond 2.375% 7/23/19
**
1,479

 
MORGAN STANLEY 2.5% 04/21/21
Corporate Bond 2.5% 04/21/21
**
1,056

 
MORGAN STANLE MTN 5.5% 1/26/20
Corporate Bond 5.5% 1/26/20
**
1,758

 
MSBAM 2012-C6 A4 2.858% 11/45
Mortgage Back Security 2012-C6 A4 2.858% 11/45
**
1,749

 
MSBAM 2013-C8 A4 3.134% 12/48
Mortgage Back Security 2013-C8 A4 3.134% 12/48
**
1,433

 
MSBAM 2013-C11 A4 CSTR 8/46
Mortgage Back Security 2013-C11 A4 CSTR 8/46
**
483

 
MSBAM 13-C13 ASB 3.557% 11/46
Mortgage Back Security 13-C13 ASB 3.557% 11/46
**
1,166

 
MSBAM 2014-C16 ASB 3.477% 6/47
Mortgage Back Security 2014-C16 ASB 3.477% 6/47
**
960

 
MSBAM 2014-C17 ASB 3.477% 8/47
Mortgage Back Security 2014-C17 ASB 3.477% 8/47
**
1,231

 
MSBAM 2015-C21 ASB 3.15% 03/48
Mortgage Back Security 2015-C21 ASB 3.15% 03/48
**
244

 
MSBAM 2016-C31 A1 1.555% 11/21
Mortgage Back Security 2016-C31 A1 1.555% 11/21
**
323


25
Eastman Investment and Employee Stock Ownership Plan
Schedule H, Line 4 (i) - Schedule of Assets (Held at End of Year)
December 31, 2018
(in thousands)

(a)
(b)
 Identity of issue, borrower, lessor, or similar party
(c)
 Description of investment, including maturity date, rate of interest, collateral, par or maturity value
(d)
Historical Cost
(e)
Current Value
 
NAT-RURAL 2.3% 11/01/20
Corporate Bond 2.3% 11/01/20
**
79

 
NYLIFE GLBL 1.7% 9/14/21 144A
Corporate Bond 1.7% 9/14/21 144A
**
2,180

 
NY LFE GLB 2.3% 6/10/22 144A
Corporate Bond 2.3% 6/10/22 144A
**
1,277

 
NYC TFA (PIT) 2.05% 08/01/23
Municipal Bond 2.05% 08/01/23
**
449

 
NYC TFA (PIT) 2.85% 02/01/24
Municipal Bond 2.85% 02/01/24
**
426

 
NYS UDC 2.67% 03/15/23
Municipal Bond 2.67% 03/15/23
**
1,081

 
NYS UDC 2.7% 03/15/23
Municipal Bond 2.7% 03/15/23
**
1,845

 
NMOTR 2016-A A2 1.54% 06/21
Mortgage Back Security 2016-A A2 1.54% 06/21
**
749

 
NAROT 2017-A A3 1.74% 08/21
Mortgage Back Security 2017-A A3 1.74% 8/21
**
1,752

 
NAROT 2016-B A3 1.32% 01/15/21
Mortgage Back Security 2016-B A3 1.32% 01/15/21
**
441

 
NATIONWIDE LIFE INSURANCE CO
Synthetic GIC – 2.4% (fair value to contract value)
**
963

 
NORTHERN STES PWR 2.2% 8/15/20
Corporate Bond 2.2% 8/15/20
**
308

 
ONTARIO PROVINCE CDA 2.4% 02/22
Corporate Bond 2.4% 02/22
**
1,792

 
ONTARIO PROV 4% 10/7/19
Corporate Bond 4% 10/7/19
**
3,056

 
ORACLE CORP 1.9% 09/15/21
Corporate Bond 1.9% 09/15/21
**
1,201

 
PNC BANK NA 2.4% 10/18/19
Corporate Bond 2.4% 10/18/19
**
1,179

 
PNC BNK PITTSBURGH 1.45% 7/19
Corporate Bond 1.45% 7/19
**
314

 
PHILIP MORS INT 1.875% 2/21
Corporate Bond 1.875% 2/21
**
2,470

 
PRICOA GLBL 2.45% 09/21/22 144A
Corporate Bond 2.45% 09/21/22 144A
**
1,245

 
PROTECTIVE LF 2.161% 9/20 144A
Corporate Bond 2.161% 9/20 144A
**
1,284

 
PRUDENTIAL INSURANCE COMPANY
Synthetic GIC - 2.4% (fair value to contract value)
**
1,781

 
PRUDENTIAL MTN 7.375% 6/15/19
Corporate Bond 7.375% 6/15/19
**
220

 
PUBLIC SVC ENT 1.6% 11/15/19
Corporate Bond 1.6% 11/15/19
**
845

 
PUBLIC SVC ENT 2% 11/15/21
Corporate Bond 2% 11/15/21
**
600

 
PUBLIC SERVICE ELE 2.65% 11/22
Corporate Bond 2.65% 11/22
**
1,146

 
QUEBEC PROVINCE 2.375% 1/31/22
Corporate Bond 2.375% 1/31/22
**
2,251

 
REGIONS FINL CORP 3.2% 2/8/21
Corporate Bond 3.2% 2/8/21
**
1,057

 
REGIONS FIN CORP 2.75% 8/22
Corporate Bond 2.75% 8/22
**
1,537

 
REYNOLDS AMERICAN 3.25% 6/20
Corporate Bond 3.25% 6/20
**
1,020

 
REYNOLDS AMERICAN 4% 6/12/22
Corporate Bond 4% 6/12/22
**
497

 
ROPER TECHNOLOGIES 3% 12/15/20
Corporate Bond 3% 12/15/20
**
696

 
ROPER TECHNOLOGIES 3.65% 09/23
Corporate Bond 3.65% 09/23
**
1,015

 
ROYAL BNK CANADA 4.65% 1/27/26
Corporate Bond 4.65% 1/27/26
**
857

 
ROYAL BK SCO 4.519%/VAR 06/24
Corporate Bond 4.519%/VAR 06/24
**
1,943

 
ROYAL BK CAN GL 2.35% 10/30/20
Corporate Bond 2.35% 10/30/20
**
1,051

 
ROYAL BANK OF CANA 2.15% 10/20
Corporate Bond 2.15% 10/20
**
692

 
ROYAL BK CDA 3.2% 04/30/21
Corporate Bond 3.2% 04/30/21
**
1,508

 
ROYAL BNK OF CAN 3.7% 10/5/23
Corporate Bond 3.7% 10/5/23
**
1,519

 
SSM HEALTH CARE 3.688% 6/1/23
Corporate Bond 3.688% 6/1/23
**
927

 
SRT 2017-A A3 2.58% 01/21
Mortgage Back Security 2.58% 01/21
**
1,677

 
SRT 2018-A A3 2.93% 05/21
Mortgage Back Security 2.93% 05/21
**
1,364

 
SSTRT 17-2A A3 2.04% 4/21 144A
Mortgage Back Security 2.04% 4/21 144A
**
1,016

 
SSTRT 2016-1A A3 1.524% 03/20
Mortgage Back Security 2016-1A A3 1.524% 03/20
**
246

 
SSTRT 2016-2A A3 3.51% 8/25/22
Mortgage Back Security 2016-2A A3 3.51% 8/25/22
**
1,848

 
SSTRT 17-1A A3 1.89% 8/20
Mortgage Back Security 17-1A A3 1.89% 8/20
**
889

 
SEMPRA ENERGY 2.4% 3/15/20
Corporate Bond 2.4% 3/15/20
**
918

 
SEMPRA ENERGY 2.85% 11/15/20
Corporate Bond 2.85% 11/15/20
**
554

 
SEMPRA ENERGY 2.9% 02/01/23
Corporate Bond 2.9% 02/01/23
**
302

 
SHELL INTL FIN BV 2.125% 05/20
Corporate Bond 2.125% 05/20
**
1,100

 
SHELL INTL 2.25% 11/10/20
Corporate Bond 2.25% 11/10/20
**
1,058


26
Eastman Investment and Employee Stock Ownership Plan
Schedule H, Line 4 (i) - Schedule of Assets (Held at End of Year)
December 31, 2018
(in thousands)

(a)
(b)
 Identity of issue, borrower, lessor, or similar party
(c)
 Description of investment, including maturity date, rate of interest, collateral, par or maturity value
(d)
Historical Cost
(e)
Current Value
 
SHIRE AQ INV IRE 1.9% 9/23/19
Corporate Bond 1.9% 9/23/19
**
1,764

 
SIMON PROP GRP 2.35% 1/30/22
Corporate Bond 2.35% 1/30/22
**
363

 
SIMON PPTY GRP 2.625% 06/15/22
Corporate Bond 2.625% 06/15/22
**
1,135

 
SIMON PROPERTY 2.75% 06/01/23
Corporate Bond 2.75% 06/01/23
**
1,370

 
SOUTHERN CA EDISON 1.845% 2/22
Mortgage Back Security 1.845% 2/22
**
279

 
SOUTHERN COMPANY 1.85% 7/1/19
Corporate Bond 1.85% 7/1/19
**
281

 
SOUTHERN COMPANY 2.35% 7/1/21
Corporate Bond 2.35% 7/1/21
**
1,840

 
SOUTHERN PWR CO 2.375% 6/1/20
Corporate Bond 2.375% 6/1/20
**
522

 
STARBUCKS CORP 3.8% 08/15/25
Corporate Bond 3.8% 08/15/25
**
753

 
STATE STREET BANK & TRUST CO
Synthetic GIC – 2.4% (fair value to contract value)
**
997

 
SUMITOMO MITSUI 2.934% 3/9/21
Corporate Bond 2.934% 3/9/21
**
922

 
SUNTRUST BAN 3.502%/VAR 8/2/22
Corporate Bond 3.502%/VAR 8/2/22
**
1,239

 
SUNTRUST BANKS INC 2.9% 3/3/21
Corporate Bond 2.9% 3/3/21
**
711

 
SYNCHRONY FIN 3% 8/15/19
Corporate Bond 3% 8/15/19
**
276

 
TJX COS INC 2.75% 6/15/21
Corporate Bond 2.75% 6/15/21
**
767

 
TIME WARNER INC 4.75% 3/29/21
Corporate Bond 4.75% 3/29/21
**
1,235

 
TORONTO DOM BK 2.125% 7/02/19
Corporate Bond 2.125% 7/02/19
**
836

 
TOTAL CAP INTL 2.125% 01/10/19
Corporate Bond 2.125% 01/10/19
**
1,685

 
TOTAL CAP INTL 2.75% 06/19/21
Corporate Bond 2.75% 06/19/21
**
826

 
TOYOTA MOTOR CORP 2.6% 1/11/22
Corporate Bond 2.6% 1/11/22
**
2,165

 
TAOT 2018-B A3 2.96% 09/22
Mortgage Back Security 2018-B A3 2.96% 09/22
**
1,522

 
TRANSAMERICA PREMIER LIFE
Synthetic GIC – 2.4% (fair value to contract value)
**
1,246

 
TRANSCANADA PIP 3.125% 1/15/19
Corporate Bond 3.125% 1/15/19
**
654

 
TRANSCANADA 2.125% 11/15/19
Corporate Bond 2.125% 11/15/19
**
1,713

 
TRANSCANADA PIP 2.5% 8/1/22
Corporate Bond 2.5% 8/1/22
**
1,596

 
UBS AG STAM 2.375% 8/14/19
Corporate Bond 2.375% 8/14/19
**
1,723

 
UBSBB 2012-C2 A4 3.525 5/63
Mortgage Back Security 2012-C2 A4 3.525% 5/63
**
962

 
USAOT 2017-1 A3 1.79% 05/21
Mortgage Back Security 2017-1 A3 1.79% 05/21
**
583

 
USAA CAPITAL 2% 6/1/21 144A
Corporate Bond 2% 6/1/21 144A
**
1,441

 
USTN 2.375% 8/15/24
Government Bond 2.375% 8/15/24
**
8,540

 
USTN 2% 08/15/25
Government Bond 2% 08/15/25
**
5,540

 
USTN 1.75% 12/31/20
Government Bond 1.75% 12/31/20
**
36,824

 
USTN 1.75% 11/30/21
Government Bond 1.75% 11/30/21
**
24,560

 
UST NOTE 1.875% 03/31/22
Government Bond 1.875% 03/31/22
**
32,297

 
USTN 1.375% 08/31/23
Government Bond 1.375% 08/31/23
**
21,028

 
USTN 1.875% 07/31/22
Government Bond 1.875% 07/31/22
**
26,210

 
UNITED TECHNOLOG 3.5% 8/16/21
Corporate Bond 3.5% 8/16/21
**
457

 
UNITEDHELTH GR 2.875% 12/15/21
Corporate Bond 2.875% 12/15/21
**
798

 
VERIZON COM 3.5% 11/01/21
Corporate Bond 3.5% 11/01/21
**
341

 
VERIZON COMMUNS 2.625% 2/21/20
Corporate Bond 2.625% 2/21/20
**
785

 
VERIZON COMM 1.75% 8/15/21
Corporate Bond 1.75% 8/15/21
**
384

 
VERIZON COM 2.946% 03/15/22
Corporate Bond 2.946% 03/15/22
**
831

 
VZOT 16-1A A 1.42% 1/21
Mortgage Back Security 16-1A A 1.42% 1/21
**
1,007

 
VZOT 17-2A A 1.92% 12/21
Mortgage Back Security 17-2A 1.92% 12/21
**
998

 
VZOT 2017-3A A1A 2.06% 04/22
Mortgage Back Security 2017-3A A1A 2.06% 04/22
**
1,724

 
VISA INC 2.8% 12/14/22
Corporate Bond 2.8% 12/14/22
**
1,058

 
VOLKSWAGEN GRP 2.4% 5/20 144A
Corporate Bond 2.4% 5/20 144A
**
732

 
VALET 2018-1 A3 3.32% 11/22
Mortgage Back Security 2018-1 A3 3.32% 11/22
**
925

 
WFRBS 14-C20 ASB 3.638% 05/47
Mortgage Back Security 14-C20 ASB 3.638% 05/47
**
474

 
WFRBS 2014-C22 ASB 3.464% 9/57
Mortgage Back Security 2014-C22 ASB 3.464% 9/57
**
1,747


27
Eastman Investment and Employee Stock Ownership Plan
Schedule H, Line 4 (i) - Schedule of Assets (Held at End of Year)
December 31, 2018
(in thousands)

(a)
(b)
 Identity of issue, borrower, lessor, or similar party
(c)
 Description of investment, including maturity date, rate of interest, collateral, par or maturity value
(d)
Historical Cost
(e)
Current Value
 
WFRBS 2012-C9 A3 2.87% 11/45
Mortgage Back Security 2012-C9 A3 2.87% 11/45
**
1,172

 
WFRBS 2011-C2 A4 CSTR 2/44
Mortgage Back Security 2011-C2 A4 CSTR 2/44
**
1,477

 
WFRBS 2011-C3 A4 4.375% 3/44
Mortgage Back Security 2011-C3 A4 4.375% 3/44
**
1,072

 
WFRBS 2012-C7 A2 3.431% 6/45
Mortgage Back Security 2012-C7 A2 3.431% 6/45
**
753

 
WFRBS 2013-C11 A5 3.071% 03/45
Mortgage Back Security 2013-C11 A5 3.071% 03/45
**
3,026

 
WFRBS 13-C12 ASB 2.838% 03/48
Mortgage Back Security 13-C12 ASB 2.838% 03/48
**
160

 
WFRBS 2013-C16 A5 4.415% 09/46
Mortgage Back Security 2013-C16 A5 4.415% 09/46
**
947

 
WFRBS 13-C16 ASB 3.963% 09/46
Mortgage Back Security 13-C16 ASB 3.963% 09/46
**
380

 
WFRBS 14-C23 ASB 3.636% 10/57
Mortgage Back Security 14-C23 ASB 3.636% 10/57
**
572

 
WASHINGTON PG 3.85% 4/1/20
Corporate Bond 3.85% 4/1/20
**
706

 
WELLS FARGO 3% 01/22/21
Corporate Bond 3% 01/22/21
**
1,535

 
WELLS FARGO & CO MTN 2.6% 7/20
Corporate Bond 2.6% 7/20
**
1,122

 
WELLS FARGO & CO 2.55% 12/7/20
Corporate Bond 2.55% 12/7/20
**
400

 
WELLS FARGO & CO 2.1% 07/26/21
Corporate Bond 2.1% 07/26/21
**
1,695

 
WFCM 2012-LC5 A3 2.918% 10/45
Mortgage Back Security 2012-LC5 A3 2.918% 10/45
**
438

 
WELLS FARGO MTN 1.75% 05/24/19
Corporate Bond 1.75% 05/24/19
**
847

 
WELLS FARGO BK 2.15% 12/6/19
Corporate Bond 2.15% 12/6/19
**
2,302

 
WELLS FARGO BK 3.55% 8/14/23
Corporate Bond 3.55% 8/14/23
**
1,515

 
WFCM 2013-LC12 A1 1.676% 7/46
Mortgage Back Security 2013-LC12 A1 1.676% 7/46
**
96

 
WFCM 2015-C27 ASB 3.278% 2/48
Mortgage Back Security 2015-C27 3.278% 2/48
**
1,009

 
WFCM 2016-C34 A2 2.603% 06/49
Mortgage Back Security 2016-C34 A2 2.603% 06/49
**
898

 
WFCM 2016-LC25 1.795% 12/15/59
Mortgage Back Security 2016-LC25 1.795% 12/15/59
**
232

 
WFCM 2016-C36 A1 1.453% 11/59
Mortgage Back Security 2016-C36 A1 1.453% 11/59
**
178

 
WFCM 2016-C37 A2 3.103% 12/49
Mortgage Back Security 2016-C37 A2 3.103% 12/49
**
753

 
WELLTOWER INC 3.95% 09/01/23
Corporate Bond 3.95% 09/01/23
**
657

 
WESTPAC BANKING 1.6% 08/19/19
Corporate Bond 1.6% 08/19/19
**
1,406

 
WESTPAC BANKING 2.8% 1/11/22
Corporate Bond 2.8% 1/11/22
**
903

 
WESTPAC BANKING 2.15% 3/6/20
Corporate Bond 2.15% 3/6/20
**
1,793

 
WISCONSIN ENERGY 2.45% 6/15/20
Corporate Bond 2.45% 6/15/20
**
416

 
WOART 16-B A3 1.3% 2/22
Mortgage Back Security 16-B A3 1.3% 2/22
**
1,027

 
WOART 2016-A A3 1.77% 09/21
Mortgage Back Security 2016-A A3 1.77% 09/21
**
395

 
XCEL ENERGY INC 2.4% 03/15/21
Corporate Bond 2.4% 03/15/21
**
393

 
XEROX CORP 2.75% 03/15/19
Corporate Bond 2.75% 03/15/19
**
1,023

 
ZOETIS INC 3.45% 11/13/20
Corporate Bond 3.45% 11/13/20
**
200

 
Sub-total Managed Income Funds
 
 
750,607

 
 
 
 
 
 
Self-Directed Brokerage Account
Various shares
**
38,448

 
Total Investment Assets
 
 
$
2,877,588

*
Participant Loans
Interest rates ranging 4.25% - 6.25% with maturity dates through March 2025
 
$
52,672


* Represents a party-in-interest to the Plan.
** Historical cost is omitted because the investment is participant-directed.

28


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the trustees (or other persons who administer the employee benefit plan) have duly caused this annual report to be signed on its behalf by the undersigned hereunto duly authorized.

Eastman Investment and Employee
Stock Ownership Plan







Date: June 14, 2019
By:  /s/Scott V. King
 
Scott V. King
 
Vice President, Corporate Controller and Chief Accounting Officer, Eastman Chemical Company;
Member of Eastman Investment Plan Committee and
Named Fiduciary for Eastman Investment and Employee Stock Ownership Plan


29

Eastman Investment and Employee Stock Ownership Plan
Exhibit Index





30
 EX-23.1 2 emn12311811-kexhibit231.htm EXHIBIT 23.1 Exhibit


Exhibit 23.1
Consent of Independent Registered Public Accounting Firm


We consent to the incorporation by reference in Registration Statement No. 33-73810 on Form S-8 of our report dated June 14, 2019, appearing in this Annual Report on Form 11-K of the Eastman Investment and Employee Stock Ownership Plan for the year ended December 31, 2018.


/s/ Brown Smith Wallace LLP
St. Louis, Missouri
June 14, 2019







31
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