Document

11-K 1 a2019123111-k.htm 11-K Document

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, 2019
			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			1

Basic Financial Statements:

Statements of Net Assets Available for Benefits at December 31, 2019 and 2018			2

Statements of Changes in Net Assets Available for Benefits for the years ended December 31, 2019 and 2018			3

Notes to Financial Statements			4-15

Additional Information (Note A):

Schedule of Assets (Held at End of Year) at December 31, 2019			17-29

Signatures			30

Exhibits			31


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, 2019 and 2018, 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, 2019 and 2018, 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, 2019 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 25, 2020

Eastman Investment and Employee Stock Ownership Plan

Statements of Net Assets Available for Benefits

December 31, 2019 and 2018

(in thousands)


			2019						2018
			Non-						Non-
	Participant		participant				Participant		participant
	Directed		Directed		Total		Directed		Directed		Total

Assets

Investments at fair value	$	2,299,430	$	165,990	$	2,465,420	$	1,970,658	$	156,323	$	2,126,981

Investments at contract value	708,755		—		708,755		750,607		—		750,607

Total investments	3,008,185		165,990		3,174,175		2,721,265		156,323		2,877,588

Receivables:

Plan sponsor contributions	36,513		12,569		49,082		37,204		12,470		49,674

Notes receivable from participants	53,475		—		53,475		52,672		—		52,672

Other receivables	3,111		1,368		4,479		3,245		1,320		4,565

Total assets	3,101,284		179,927		3,281,211		2,814,386		170,113		2,984,499


Liabilities



Other liabilities	1,903		2,402		4,305		1,507		1,308		2,815

Total liabilities	1,903		2,402		4,305		1,507		1,308		2,815

Net assets available for benefits	$	3,099,381	$	177,525	$	3,276,906	$	2,812,879	$	168,805	$	2,981,684

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

Eastman Investment and Employee Stock Ownership Plan

Statements of Changes in Net Assets Available for Benefits

For the Years Ended December 31, 2019 and 2018

(in thousands)


			2019						2018
			Non-						Non-
	Participant		participant				Participant		participant
	Directed		Directed		Total		Directed		Directed		Total

Additions to net assets:

Investment income
Interest	$	17,972	$	—	$	17,972	$	16,841	$	—	$	16,841
Dividends	14,025		5,405		19,430		60,861		4,990		65,851
Net (depreciation) appreciation in fair value of investments	438,981		12,016		450,997		(202,527)		(42,011)		(244,538)
Net investment (loss) gain	470,978		17,421		488,399		(124,825)		(37,021)		(161,846)
Interest income from notes receivable	2,960		—		2,960		2,631		—		2,631
Participant contributions	110,100		—		110,100		107,874		—		107,874
Plan sponsor contributions	54,934		12,569		67,503		54,517		12,470		66,987
Total additions (deductions)	638,972		29,990		668,962		40,197		(24,551)		15,646

Deductions from net assets:

Distributions to and withdrawals by participants	361,588		11,317		372,905		237,239		10,505		247,744
Administrative expenses	835		—		835		451		—		451
Total deductions	362,423		11,317		373,740		237,690		10,505		248,195
Net (decrease) increase in net assets	276,549		18,673		295,222		(197,493)		(35,056)		(232,549)
Transfers from non-participant directed	9,953		(9,953)		—		10,464		(10,464)		—

Net assets available for benefits at beginning of year	2,812,879		168,805		2,981,684		2,999,908		214,325		3,214,233
Net assets available for benefits at end of year	$	3,099,381	$	177,525	$	3,276,906	$	2,812,879	$	168,805	$	2,981,684

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

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, 2019 and 2018 was $452,969 and $394,337, respectively. There was $100,000 used to offset employer contributions and $65,000 to reduce plan expenses in 2019 and no forfeitures used in 2018.

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 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.

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 $19,000 for 2019 and $18,500 for 2018 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 both 2019 and 2018 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.

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, 2019 or 2018. 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, 2019, $53.5 million in notes receivable from participants were outstanding with interest rates ranging from 4.25% to 6.5% and various maturity dates through January 2026. 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.

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.

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.

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.

Eastman Investment and Employee Stock Ownership Plan

Notes to Financial Statements

Payments to participants

Benefit payments to participants are recorded when paid.

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, 2019 and 2018 are shares of the Plan Sponsor's common stock amounting to $306 million and $307 million, respectively. This investment represents 9.6% and 10.7% of total investments at December 31, 2019 and 2018, 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 $36.5 million and $37.2 million and for the non-participant-directed ESOP Fund of $12.6 million and $12.5 million at December 31, 2019 and 2018, 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, 2019 and 2018 were approximately $53.5 million and $52.7 million, respectively. Interest income earned on notes receivable from participants is credited directly to the participants' accounts and was approximately $3.0 million and $2.6 million in 2019 and 2018, respectively.

Eastman Investment and Employee Stock Ownership Plan

Notes to Financial Statements

6.INVESTMENTS

At December 31, 2019 and 2018, 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, 2019 and 2018, respectively.


(in thousands)	2019		2018

Cash and cash equivalents	$	5,562	$	4,784
Common stock - Eastman Chemical Company	305,542		307,243
Common stock - other	125,370		—
Mutual funds	612,195		755,858
Collective investment trusts	1,326,203		1,017,515
Pooled separate accounts	3,620		3,133
Managed income fund	708,755		750,607
Self-directed brokerage account - mutual funds	86,928		38,448
Total	$	3,174,175	$	2,877,588

The following investment options, which invest primarily in common stock of the Plan Sponsor, were available to participants in 2019 and 2018:

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 2019, the Trustee purchased 772,101 shares of Eastman common stock for the fund at an average price of $70.41 per share, and sold 1,076,235 shares of Eastman common stock for the fund at an average price of $78.23 per share. 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. Dividends paid from the Eastman Stock Fund totaled $5.1 million and $3.8 million in 2019 and 2018, 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 2019, the Trustee purchased 208,800 shares of Eastman common stock for the fund at an average price of $80.50 per share, and sold 252,211 shares of Eastman common stock for the fund at an average price of $76.80 per share. 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. Participants can elect to have the dividends paid in cash or reinvested back into the Eastman ESOP fund.

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 $709 million and $751 million at December 31, 2019 and 2018, 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.

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 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.

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, 2019 and 2018:


(in thousands)	December 31, 2019		December 31, 2018
Description	Quoted Prices in Active Markets for Identical Assets (Level 1)		Quoted Prices in Active Markets for Identical Assets (Level 1)
Cash and cash equivalents	$	5,562	$	4,784
Common stock - Eastman Chemical Company	305,542		307,243
Common stock - other	125,370		—
Mutual funds	612,195		755,858
Collective investment trusts	1,326,203		1,017,515
Pooled separate accounts	3,620		3,133
Self-directed brokerage account - mutual funds	86,928		38,448
Total	$	2,465,420	$	2,126,981

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 2019 and 2018. Also, there are no Level 2 or Level 3 investments at December 31, 2019 and 2018.

Eastman Investment and Employee Stock Ownership Plan

Notes to Financial Statements

9.OTHER RECEIVABLES AND OTHER LIABILITIES

Other receivables in the amount of $4.5 million and $4.6 million at December 31, 2019 and 2018, respectively, represent interest and dividends receivable, as well as receivables from the sale of investments. Other liabilities in the amount of $4.3 million and $2.8 million at December 31, 2019 and 2018, 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 2019 and 2018, $10.0 million and $10.5 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, 2019 and 2018, 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 2019 and 2018, 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.

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

In early 2020, the Plan adopted the provision of the Setting Every Community Up for Retirement Enhancement ("SECURE") Act which increased the age for the required minimum distribution ("RMD") to age 72 for any participant that has not obtained age 70½ by December 31, 2019.

In March 2020, in response to the COVID-19 coronavirus global pandemic ("COVID-19") impact on global financial markets, the Coronavirus Aid, Relief, and Economic Security Act ("CARES Act") was enacted and signed into law. The CARES Act includes various provisions that temporarily ease rules around distributions and loans in 2020 for eligible plan participants. The Plan subsequently adopted certain provisions of the CARES Act and is operating in compliance with these provisions. The Plan will later be amended to include these provisions.

The Plan Administrator has evaluated events occurring between December 31, 2019 and June 25, 2020 for proper recording and disclosure in these financial statements.

Supplemental Schedule

Eastman Investment and Employee Stock Ownership Plan

Schedule H, Line 4 (i) - Schedule of Assets (Held at End of Year)

December 31, 2019

(in thousands)

(a)

(b)
Identity of issue, borrower, lessor, or similar party

(d)
Historical Cost

(e)
Current Value

Eastman Chemical Company

Common Stock, Participant directed, 1,779 shares

140,982

Eastman Chemical Company

Common Stock, Non-Participant directed, 2,076 shares

102,864

164,560

Subtotal - Common Stock-Eastman Chemical Company

305,542

Abbott Laboratories

Common Stock, 5 shares

419

Accenture Plc Cl A

Common Stock, 4 shares

933

Air Products & Chemicals Inc.

Common Stock, 8 shares

1,996

Alexandria Real Estate Equity Income REIT

Common Stock, 3 shares

502

Altria Group Inc

Common Stock, 22 Shares

1,097

Analog Devices Inc

Common Stock, 18 Shares

2,192

Apple Inc

Common Stock, 6 Shares

1,840

Arthur J Gallaghar and Co

Common Stock, 11 Shares

1,075

Automatic Data Processing Inc

Common Stock, 7 Shares

1,178

Avalonbay Communities Inc REIT

Common Stock, 6 Shares

1,241

Bank of America Corporation

Common Stock, 123 Shares

4,343

Becton Dickinson & Co

Common Stock, 5 Shares

1,270

Blackrock Inc

Common Stock, 5 Shares

2,744

Boston Properties Inc

Common Stock, 4 Shares

603

Bristol-Myers Squibb Co

Common Stock, 46 Shares

2,932

Capital One Financial Corp

Common Stock, 12 Shares

1,247

Chevron Corp

Common Stock, 30 Shares

3,644

Chubb Ltd

Common Stock, 7 Shares

1,044

Cincinnati Financial Corp

Common Stock, 3 Shares

354

CME Group Inc Cl A

Common Stock, 15 Shares

2,962

CMS Energy Corp

Common Stock, 19 Shares

1,222

Coca Cola Co

Common Stock, 27 Shares

1,519

Comcast Corp Cl A

Common Stock, 54 Shares

2,408

ConocoPhillips

Common Stock, 44 Shares

2,829

Corteva Inc

Common Stock, 2 Shares

Cullen Frost Bankers Inc

Common Stock, 6 Shares

557

CVS Health Corp

Common Stock, 12 Shares

855

Deere & Co

Common Stock, 7 Shares

1,270

Discover Fin Svcs

Common Stock, 12 Shares

1,053

Dover Corp

Common Stock, 18 Shares

2,023

DTE Energy Co

Common Stock, 2 Shares

263

Dupont De Nemours Inc

Common Stock, 10 Shares

633

Edison Intl

Common Stock, 6 Shares

469

Entergy Corp

Common Stock, 3 Shares

377

Exxon Mobil Corp

Common Stock, 23 Shares

1,627

Fidelity Natl Inform Svcs Inc

Common Stock, 11 Shares

1,498

General Dynamics Corporation

Common Stock, 10 Shares

1,838

Gilead Sciences Inc

Common Stock, 9 Shares

595

Hartford Finl Svcs Group Inc

Common Stock, 26 Shares

1,580

Hasbro Inc

Common Stock, 12 Shares

1,232

Home Depot Inc

Common Stock, 9 Shares

1,930

Honeywell Intl Inc

Common Stock, 5 Shares

869

Illinois Tool Works Inc

Common Stock, 5 Shares

841

Johnson & Johnson

Common Stock, 18 Shares

2,644

Las Vegas Sands Corp

Common Stock, 16 Shares

1,123

Lilly (Eli) & Co

Common Stock, 11 Shares

1,400

Eastman Investment and Employee Stock Ownership Plan

Schedule H, Line 4 (i) - Schedule of Assets (Held at End of Year)

December 31, 2019

(in thousands)

(a)

(b) Identity of issue, borrower, lessor, or similar party

(d) Historical Cost

(e) Current Value

M&T Bank Corp

Common Stock, 2 Shares

398

Marsh & McLennan Cos Inc

Common Stock, 4 Shares

487

McDonalds Corp

Common Stock, 11 Shares

2,133

Medtronic Plc

Common Stock, 16 Shares

1,868

Merck & Co Inc New

Common Stock, 21 Shares

1,919

Metlife Inc

Common Stock, 26 Shares

1,314

Microsoft Inc

Common Stock, 17 Shares

2,616

Mondelez Intl Inc

Common Stock, 33 Shares

1,823

Nextera Energy

Common Stock, 8 Shares

1,962

Nisource Inc

Common Stock, 7 Shares

202

Norfolk Southern Corp

Common Stock, 7 Shares

1,443

Northern Trust Corp

Common Stock, 7 Shares

753

Parker Hannifin Corp

Common Stock, 8 Shares

1,733

Pepsico Inc

Common Stock, 10 Shares

1,385

Pfizer Inc

Common Stock, 45 Shares

1,755

Philip Morris Intl Inc

Common Stock, 24 Shares

2,039

PNC Financial Services Grp Inc

Common Stock, 19 Shares

3,098

PPG Industries Inc

Common Stock, 12 Shares

1,567

Price (T Rowe) Group Inc

Common Stock, 9 Shares

1,126

Proctor & Gamble Co

Common Stock, 15 Shares

1,830

Progressive Corp Ohio

Common Stock, 12 Shares

890

Prudential Financial Inc

Common Stock, 17 Shares

1,616

Public Svc Enterprise Grp Inc

Common Stock, 14 Shares

837

Republic Services Inc

Common Stock, 10 Shares

880

RPM International Inc

Common Stock, 8 Shares

578

Simon Ppty Group Inc - REIT

Common Stock, 5 Shares

744

Stanley Black & Decker Inc

Common Stock, 5 Shares

860

Starbucks Corp

Common Stock, 4 Shares

341

Texas Instruments Inc

Common Stock, 17 Shares

2,177

Travelers Companies Inc

Common Stock, 11 Shares

1,446

Truist Finl Corp

Common Stock, 27 Shares

1,533

United Technologies Corp

Common Stock, 12 Shares

1,754

UnitedHealth Group Inc

Common Stock, 5 Shares

1,520

US Bancorp Del

Common Stock, 25 Shares

1,466

Valero Energy Corp

Common Stock, 10 Shares

926

Ventas Inc REIT

Common Stock, 9 Shares

522

Verizon Communications Inc

Common Stock, 35 Shares

2,156

VF Corp

Common Stock, 12 Shares

1,218

Vornado Realty Trust

Common Stock, 11 Shares

751

Walmart Inc

Common Stock, 9 Shares

1,035

Wells Fargo & Co

Common Stock, 43 Shares

2,294

Wyndham Hotels & Resorts Inc

Common Stock, 9 Shares

554

Xcel Energy Inc

Common Stock, 23 Shares

1,480

Subtotal - Common Stock - Other

125,370

Fidelity Management Trust Company

Interest Bearing Cash, Participant directed

2,565

Fidelity Management Trust Company

Interest Bearing Cash, Non-Participant directed

1,430

JPMORGAN USG MMKT FD CAP SHARE

Interest Bearing Cash Equivalents

1,567

Subtotal - Cash and cash equivalents

5,562

Eastman Investment and Employee Stock Ownership Plan

Schedule H, Line 4 (i) - Schedule of Assets (Held at End of Year)

December 31, 2019

(in thousands)

(a)

(b) Identity of issue, borrower, lessor, or similar party

(d) Historical Cost

(e) Current Value

DFA US SMALL CAP VALUE I

Registered Investment Company 1,308 shares

45,043

DODGE & COX STOCK FUND

Registered Investment Company 675 shares

130,787

FID GOVT MMKT

Registered Investment Company 303 shares

303

FID US BOND INDX

Registered Investment Company 2,888 shares

34,398

FID GLB EX US IDX

Registered Investment Company 1,948 shares

26,083

FID 500 INDEX

Registered Investment Company 2,315 shares

259,344

FID EXT MKT IDX

Registered Investment Company 1,130 shares

73,469

NB GENESIS R6

Registered Investment Company 732 shares

42,768

Sub-Total Mutual Funds

612,195

BTC STR COMP NL M

Collective Investment Trust 69 shares

808

ARROWST ACWI EX-US A

Collective Investment Trust 494 shares

60,209

PRU CORE PL BD CL 5

Collective Investment Trust 468 shares

84,129

LOOMIS SAYLES & CO SMC GWTH C

Collective Investment Trust 2,402 shares

44,453

FID BLUE CHIP GR POOL

Collective Investment Trust 7,116 shares

132,286

VANGUARD TARGET INC

Collective Investment Trust 680 shares

38,729

VANGUARD TARGET 2015

Collective Investment Trust 595 shares

34,085

VANGUARD TARGET 2020

Collective Investment Trust 2,246 shares

134,384

VANGUARD TARGET 2025

Collective Investment Trust 3,056 shares

185,491

VANGUARD TARGET 2030

Collective Investment Trust 3,339 shares

205,042

VANGUARD TARGET 2035

Collective Investment Trust 1,769 shares

111,311

VANGUARD TARGET 2040

Collective Investment Trust 1,473 shares

95,926

VANGUARD TARGET 2045

Collective Investment Trust 995 shares

65,242

VANGUARD TARGET 2050

Collective Investment Trust 1,210 shares

79,734

VANGUARD TARGET 2055

Collective Investment Trust 446 shares

35,873

VANGUARD TARGET 2060

Collective Investment Trust 409 shares

17,271

VANGUARD TARGET 2065

Collective Investment Trust 47 shares

1,230

Sub-Total Collective Investment Trusts

1,326,203

PRUD INCFLEX SEL LT GROWTH

Pooled Separate Account 68 shares

1,338

PRUD INCFLEX SEL LT BALANCED

Pooled Separate Account 67 shares

1,319

PRUD INCFLEX SEL LT INC & EQU

Pooled Separate Account 1 share

PRUD INCFLEX SEL CONSER GRO

Pooled Separate Account 12 shares

219

PRUD INCFLEX SEL LT INC & EQU

Pooled Separate Account 23 shares

385

PRUD INCFLEX SEL LT AGG GRO

Pooled Separate Account 6 shares

119

PRUD INCFLEX SEL LT GROWTH

Pooled Separate Account 6 shares

116

PRUD INCFLEX SEL LT BALANCED

Pooled Separate Account 6 shares

114

Sub-Total Pooled Separate Accounts

3,620

Eastman Investment and Employee Stock Ownership Plan

Schedule H, Line 4 (i) - Schedule of Assets (Held at End of Year)

December 31, 2019

(in thousands)

(a)

(b)
Identity of issue, borrower, lessor, or similar party

(d)
Historical Cost

(e)
Current Value

Fidelity

Cash

14,401

AIG GLOBAL FDG SR MTN 2.3% 07/01/2022 144A

Corporate Bond 2.3% 7/1/22

549

AT&T INC 3% 2/15/22

Corporate Bond 3.0% 2/15/22

753

AT&T INC 2.8% 02/17/21

Corporate Bond 2.8% 02/17/21

744

ABBVIE INC 2.5% 05/14/20

Corporate Bond 2.5% 05/14/20

578

ABBVIE INC 2.3% 11/21/2022 144A

Corporate Bond 2.3% 11/21/22

1,843

AERCAP IRELAND 4.125% 07/03/23

Corporate Bond 4.125% 07/03/23

642

AERCAP IRELAND 4.45% 12/16/21

Corporate Bond 4.45% 12/16/21

435

AERCAP IRELAND 4.875% 01/16/24

Corporate Bond 4.875% 01/16/24

507

AIR LEASE CORP 2.5% 03/01/21

Corporate Bond 2.5% 03/01/21

955

AIR LEASE CORP 4.25% 02/01/2024

Corporate Bond 4.25% 02/01/24

885

AMOT 2017-3 A 2.04% 06/15/22

Mortgage Back Security 2017-3 A 2.04% 06/15/22

1,249

AMOT 2018-1 A 2.7% 01/17/23

Mortgage Back Security 2018-1 A 2.7% 01/17/23

1,644

AMOT 2018-2 A3.29% 05/23

Mortgage Back Security 2018-2 A 3.29% 05/23

2,016

ALTRIA GROUP 3.49% 02/14/22

Corporate Bond 3.49% 02/14/22

616

ALTRIA GROUP 3.8% 02/14/24

Corporate Bond 3.8% 02/14/24

760

AMERICAN CAMPUS 3.35% 10/01/20

Corporate Bond 3.35% 10/01/20

557

AMERICAN EXPRESS 2.75% 05/20/22

Corporate Bond 2.75% 05/20/22

1,838

AMXCA 2018-4 A2 2.99% 12-15-23

Mortgage Back Security 2018-4 A2 2.99% 12/15/23

1,588

AMXCA 2018-6 A2 3.06% 02/15/24

Mortgage Back Security 2018-6 A2 3.06% 02/15/24

1,529

AMXCA 2019-2 A 2.67% 11/15/24

Mortgage Back Security 2019-2 A 2.67% 11/15/24

1,975

AMXCA 2019-1 A 2.87% 10/15/24

Mortgage Back Security 2019-1 A 2.87% 10/15/24

637

AMERICAN GENERAL LIFE

Synthetic GIC – 2.53% (fair value to contract value)

(1,267)

AMPHENOL CORP NEW 3.2% 4/1/24

Corporate Bond 3.2% 04/01/24

312

ANHUESER-BUSCH IN 3.3% 2/01/23

Corporate Bond 3.3% 2/01/23

1,522

AON CORP 2.2% 11/15/22

Corporate Bond 2.2% 11/15/22

408

AUTOZONE 3.125% 07/15/23

Corporate Bond 3.125% 07/15/23

1,101

AXA EQUITABLE 3.9% 4/20/23

Corporate Bond 3.9% 04/20/23

158

BACCT 2018-A1 A1 2.7% 07/17/23

Mortgage Back Security 2018-A1 A1 2.7% 07/17/23

2,018

BAE SYSTEMS 2.85% 12/15/20

Corporate Bond 2.85% 12/15/20

1,431

BMWFT 3.15% 5/15/23 144A

Mortgage Back Security 3.15% 5/15/23 144A

1,465

BPCE SA 2.75% 12/02/21

Corporate Bond 2.75% 12/02/21

833

BMWLT 2017-2 A3 2.07% 10/20

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

266

BMWLT 2019-1 2.84% 11/22/21

Mortgage Back Security 2019-1 2.84% 11/22/21

1,054

BANK OF AMER 3.124%/VAR 1/20/23

Corporate Bond 3.124%/VAR 01/20/23

775

BK OF AMER 3.004% /VAR 12/20/23

Corporate Bond 3.004%/VAR 12/20/23

2,711

BANK OF AMERICA CO 3.864% 7/23/24

Corporate Bond 3.864% 7/23/24

2,139

BANK OF AMERICA CO 2.456%/VAR 10/22/25

Corporate Bond 2.456%/VAR 10/22/25

1,809

BOTWAT 2017-1 2.11% 01/15/23

Mortgage Back Security 2017-1 2.11% 01/15/23

1,123

BOTWAT 2018-1 A3 3.43% 12/15/22

Mortgage Back Security 2018-1 A3 3.43% 12/15/22

775

BOTWAT 2019-1 2.43% 04/15/24

Mortgage Back Security 2019-1 2.43% 04/15/24

807

BARCLAYS PLC 3.25% 01/12/21

Corporate Bond 3.25% 01/12/21

813

BARCLAYS BANK 4.338%/VAR 5/16/24

Corporate Bond 4.338%/VAR 5/16/24

1,251

BARCLAYS BANK 3.932%/VAR 05/07/25

Corporate Bond 3.932%/VAR 05/07/25

1,183

BARCLAYS BANK 2.65% 01/11/21

Corporate Bond 2.65% 01/11/21

1,702

BMARK 2018-B2 A2 3.6623% 02/51

Mortgage Back Security 3.6623% 02/51

1,781

BMARK 2018-B7 A2 4.377% 05/53

Mortgage Back Security 4.377% 05/53

965

BMARK 2018-B8 A2 4.149% 01/15/52

Mortgage Back Security 4.149% 01/15/52

1,094

BERKSHIRE HATHAWA 2.8% 1/15/23

Corporate Bond 2.8% 1/15/23

1,857

Eastman Investment and Employee Stock Ownership Plan

Schedule H, Line 4 (i) - Schedule of Assets (Held at End of Year)

December 31, 2019

(in thousands)

(a)

(b)
Identity of issue, borrower, lessor, or similar party

(d)
Historical Cost

(e)
Current Value

BERKSHIRE HATH 2.75% 3/15/23

Corporate Bond 2.75% 3/15/23

733

BOSTON SCIENTIFIC 3.45% 03/01/24

Corporate Bond 3.45% 03/01/24

617

BRISTOL-MEYERS 2.6% 05/16/22 144A

Corporate Bond 2.6% 05/16/22 144A

1,510

BRISTOL-MEYERS 2.9% 07/26/24 144A

Corporate Bond 2.9% 07/26/24 144A

1,953

CIGNA CORP 3.4% 09/17/21

Corporate Bond 3.4% 09/17/21

1,360

CIGNA CORP 3.75% 07/15/23

Corporate Bond 3.75% 07/15/23

716

COMM 14-UBS6 ASB 3.387% 12/10/47

Mortgage Back Security 3.387% 12/10/47

415

COMM 2015-CR22 A2 2.856% 03/48

Mortgage Back Security 2.856% 03/48

189

COMM 2015-CR22 ASB 3.144% 03/48

Mortgage Back Security 3.144% 03/48

647

COMM 15-CR23 ASB 3.257% 05/48

Mortgage Back Security 3.257% 05/48

699

COMM 15-CR26 ASB 3.373% 10/48

Mortgage Back Security 3.373% 10/48

475

CSMC 16-NXSR A1 1.9708% 12/49

Mortgage Back Security 1.9708% 12/49

211

CSAIL 2017-CX9 A2 3.0538% 09/15/50

Mortgage Back Security 3.0538% 09/15/50

1,336

COMM 2012-LC4 A4 3.288% 12/44

Mortgage Back Security 3.288% 12/44

1,873

COMM 2012-CR2 A3 2.841% 8/45

Mortgage Back Security 2.841% 8/45

2,074

COMM 2012-CR3 ASB 2.372% 11/45

Mortgage Back Security 2.372% 11/45

583

COMM 2012-CR3 A3 2.822% 10/45

Mortgage Back Security 2.822% 10/45

885

COMM 2013-CR6 A4 3.101% 03/46

Mortgage Back Security 3.101% 03/46

1,042

COMM 2013-CR7 A4 3.213% 03/46

Mortgage Back Security 3.213% 03/46

1,071

COMM 2013-CR8 A5 3.612% 06/46

Mortgage Back Security 3.612% 06/46

647

CSAIL 2015-C2 ASB 3.2241% 06/57

Mortgage Back Security 3.2241% 06/57

482

CNH 2018-A A3 3.12% 07/23

Mortgage Back Security 3.12% 07/23

1,449

CVS HEALTH CORP 2.8% 07/20/20

Corporate Bond 2.8% 07/20/20

681

CVS HEALTH CORP 3.35% 03/09/21

Corporate Bond 3.35% 03/09/21

669

CA ST 2.40% 10/1/25

Government Bond 2.40% 10/1/25

1,205

CAN NATURAL RES 3.45% 11/15/21

Corporate Bond 3.45% 11/15/21

1,159

CPART 2018-1A A3 3.088% 11/21 144A

Mortgage Back Security 3.088% 11/21 144A

1,073

CPART 2017-1A A3 2.05% 03/21

Mortgage Back Security 2.05% 03/21

255

CPART 2018-2A A3 3.27% 12/22

Mortgage Back Security 3.27% 12/22

1,181

CAPITAL ONE FIN 3.2% 1/30/23

Corporate Bond 3.2% 1/30/23

2,602

COMET 2015-A2 A2 2.08% 03/23

Mortgage Back Security 2015-A2 A2 2.08% 03/23

2,301

COMET MULTI-ASST 2.84% 12/15/24

Mortgage Back Security 2.84% 12/15/24

2,045

CAPITAL ONE NATL ASN 2.15% 09/06/22

Corporate Bond 2.15% 09/06/22

478

CARMX 2016-4 1.4% 08/15/21

Mortgage Back Security 1.4% 08/15/21

341

CARMX 2017-4 2.11% 10/17/22

Mortgage Back Security 2.11% 10/17/22

604

CARMX 2017-3 A3 1.97% 04/15/22

Mortgage Back Security 1.97% 04/15/22

437

CARMX 2018-2 A3 2.98% 01/23

Mortgage Back Security 2.98% 01/23

877

CARMX 2018-4 3.36% 09/15/23

Mortgage Back Security 3.36% 09/15/23

958

CARMX 2019-1 3.05% 03/15/24

Mortgage Back Security 3.05% 03/15/24

1,238

CENTERPOINT ENE 2.50% 09/01/22

Corporate Bond 2.50% 09/01/22

390

CHAIT 2015-A4 A4 1.84% 04/22

Mortgage Back Security 2015-A4 A4 1.84% 04/22

1,811

CGCMT 2016-P6 A1 1.884% 12/49

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

101

CITIGROUP INC 2.75% 4/25/2022

Corporate Bond 2.75% 4/25/2022

1,343

CITIGROUP INC 2.7% 10/27/2022

Corporate Bond 2.7% 10/27/2022

204

CITIGROUP 3.142%/VAR 1/24/23

Corporate Bond 3.142%/VAR 1/24/23

700

CCCIT 2017-A8 A8 1.86% 8/8/22

Mortgage Back Security 2017-A8 A8 1.86% 8/8/22

1,753

CCCIT 2018-A1 A1 2.49% 01/23

Mortgage Back Security 2018-A1 A1 2.49% 01/23

1,671

CGCMT 2012-GC8 A4 3.024% 9/45

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

855

CGCMT 13-GC11 A4 3.093% 04/46

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

237

CGCMT 13-GC15 A4 4.371% 09/46

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

603

Eastman Investment and Employee Stock Ownership Plan

Schedule H, Line 4 (i) - Schedule of Assets (Held at End of Year)

December 31, 2019

(in thousands)

(a)

(b)
Identity of issue, borrower, lessor, or similar party

(d)
Historical Cost

(e)
Current Value

CGCMT 13-GC17 A4 4.131% 11/46

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

765

CGCMT 2014-GC21 3.477% 05/47

Mortgage Back Security 2014-GC21 3.477% 05/47

495

CGCMT 2014-GC23 A3 3.356% 07/47

Mortgage Back Security 2014-GC23 A3 3.356% 07/47

1,295

CGCMT 16-GC36 AAB 3.368% 02/49

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

821

CITIBANK NA 3.65% 01/23/24

Corporate Bond 3.65% 01/23/24

1,880

CITIBANK NA 3.165%/VAR 02/19/22

Corporate Bond 3.165%/VAR 02/19/22

1,537

CGCMT 2017-P7 A2 3.212% 04/50

Mortgage Back Security 2017-P7 A2 3.212% 04/50

812

CITIZENS BANK NA 2.55% 5/13/21

Corporate Bond 2.55% 5/13/21

1,192

CITIZENS BANK NA 2.65% 5/26/22

Corporate Bond 2.65% 5/26/22

873

CITIZENS FINCL 2.375% 7/28/21

Corporate Bond 2.375% 7/28/21

129

COMCAST CORP NEW 3.7% 04/24

Corporate Bond 3.7% 04/24

1,610

COMCAST CORP 3.95% 10/15/25

Corporate Bond 3.95% 10/15/25

941

COMPASS BANK 2.875% 6/29/22

Corporate Bond 2.875% 06/29/22

1,632

COMPASS BK BIRM 3.5% 6/11/21

Corporate Bond 3.5% 6/11/21

1,189

CREDIT SUISSE 2.593%/VAR 09/25 144A

Corporate Bond 2.593%/VAR 09/25 144A

1,300

CREDIT SUISSE 3.125% 12/20

Corporate Bond 3.125% 12/20

253

CREDIT SUISSE GG 3.45% 4/16/21

Corporate Bond 3.45% 4/16/21

1,116

CREDIT SUISSE NY 3% 10/29/21

Corporate Bond 3% 10/29/21

779

CSAIL 2019-C15 TR 3.4505% 03/15/52

Mortgage Back Security 2019-C15 3.4505% 03/15/52

1,075

DBUBS 2011-LC2A A4 4.537% 7/44

Mortgage Back Security 2011-LC2A A4 4.537% 7/44

1,309

DAIMLER FIN 2.25% 3/20 144A

Corporate Bond 2.25% 3/20 144A

1,634

DAIMLER FIN 2.85% 1/6/22 144A

Corporate Bond 2.85% 1/6/22 144A

1,068

DAIMLER FIN 2.3% 2/12/21 144A

Corporate Bond 2.3% 2/12/21 144A

1,718

DEERE JOHN CAPITAL 2.6% 03/07/24

Corporate Bond 2.6% 03/07/24

467

DEFT 2018-1 A3 3.18% 06/22/23

Mortgage Back Security 2018-1 A3 3.18% 06/22/23

497

DEFT 2018-2 A3 3.37% 10/22/23

Mortgage Back Security 2018-2 A3 3.37% 10/22/23

653

DIGITAL REALTY 3.95% 07/01/22

Corporate Bond 3.95% 07/01/22

521

DIGITAL REALTY 2.75% 2/1/23

Corporate Bond 2.75% 2/1/23

650

DISCOVER BKNT NEW 3.2% 8/9/21

Corporate Bond 3.2% 8/9/21

257

DISCOVER BANK 3.35% 2/06/23

Corporate Bond 3.35% 2/06/23

489

DCENT 2017-A6 A6 1.88% 2/15/23

Mortgage Back Security 2017-A6 A6 1.88% 2/15/23

1,296

DCENT 2018-A5 A5 3.32% 03/24

Mortgage Back Security 2018-A5 A5 3.32% 03/24

1,914

DCENT 2019-A1 A1 3.04% 07/24

Mortgage Back Security 2019-A1 A1 3.04% 07/24

1,468

DOMINION GAS HLDGS 2.5% 11/24

Corporate Bond 2.5% 11/24

313

DOMINION RESOURCE 2% 8/15/21

Corporate Bond 2% 8/15/21

447

DUKE ENERGY 1.8% 9/1/21

Corporate Bond 1.8% 9/1/21

403

DUKE ENERGY FL 1.196% 3/1/20

Mortgage Back Security 1.196% 3/1/20

ERP OPERATING LP 3.375% 6/1/25

Corporate Bond 3.375% 6/1/25

779

EDISON INTRNL 2.95% 03/15/23

Corporate Bond 2.95% 03/15/23

277

EVERSOURCE ENERGY 2.5% 3/15/21

Corporate Bond 2.5% 3/15/21

1,407

EXELON CORP VAR 06/01/2022

Corporate Bond VAR 06/01/2022

798

FHLG 15YR 2.5% 10/31 #G16387

Government Bond 2.5% 10/31 #G16387

1,475

FHLG 25YR 5.50% 7/35 #G05815

Government Bond 5.50% 7/35 #G05815

FHLG 20YR 3.5% 06/32#C91456

Government Bond 3.5% 06/32#C91456

1,133

FHLG 5.50% 3/34 #G01665

Government Bond 5.50% 3/34 #G01665

FHLG 15YR 4.00% 4/26 #E02867

Government Bond 4.00% 4/26 #E02867

FHLG 15YR 3% 05/29 #J29409

Government Bond 3% 05/29 #J29409

1,639

FHLG 15YR 3% 05/29 #J32373

Government Bond 3% 05/29 #J32373

4,496

FHLG 15YR 2.5% 11/28 #J32374

Government Bond 2.5% 11/28 #J32374

4,101

FHLG 15YR 2.5% 12/31 #SB0093

Government Bond 2.5% 12/31 #SB0093

2,476

Eastman Investment and Employee Stock Ownership Plan

Schedule H, Line 4 (i) - Schedule of Assets (Held at End of Year)

December 31, 2019

(in thousands)

(a)

(b)
Identity of issue, borrower, lessor, or similar party

(d)
Historical Cost

(e)
Current Value

FHLG 5.50% 5/34 #Z40042

Government Bond 5.50% 5/34 #Z40042

641

FHLG 20YR 3% 11/33#G30872

Government Bond 3% 11/33#G30872

1,407

FHLG 20YR 3.5% 05/38#G31067

Government Bond 3.5% 05/38#G31067

772

FNMA 1.25% 08/17/21

Government Bond 1.25% 08/17/21

1,174

FNR 2012-149 DA 1.75% 01/43

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

161

FNR 2012-151 PA 1.5% 01/25/43

Mortgage Back Security 2012-151 PA 1.5% 01/25/43

920

FNR PA 1.5% 02/25/43

Mortgage Back Security PA 1.5% 02/25/43

1,367

FNR 2013-16 GP 3% 01/33

Mortgage Back Security 2013-16 GP 3% 01/33

448

FNR PA 3% 6/25/43

Mortgage Back Security 3.0% 6/25/43

904

FNR 2015-32 PA 3% 4/44

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

678

FNR 2015-28 P 2.5% 5/45

Mortgage Back Security 2015-28 P 2.5% 5/45

1,777

FNR 2015-28 JE 3% 05/45

Mortgage Back Security 2015-28 JE 3% 05/45

1,256

FNR 2015-42 LE 3% 06/45

Mortgage Back Security 2015-42 LE 3% 06/45

1,117

FNR 2015-49 LE 3% 07/45

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

818

FNR 2015-54 LE 2.5% 07/45

Mortgage Back Security 2015-54 LE 2.5% 07/45

920

FNR 2016-19 AH 3% 04/46

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

843

FNR 2016-26 CG 3% 05/46

Mortgage Back Security 2016-26 CG 3% 05/46

2,220

FNR 2016-27 HK 3% 01/41

Mortgage Back Security 2016-27 HK 3% 01/41

1,110

FNR 2016-27 KG 3% 01/40

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

547

FNR 2016-37 BK 3% 06/25/46

Mortgage Back Security 2016-37-BK 3% 06/25/46

2,303

FNR 2016-34 GH 06/25/46

Mortgage Back Security 2016-34 GH 3% 06/25/46

2,177

FNR 2016-105 PA 3.5% 4/45

Mortgage Back Security 2016-105 PA 3.5% 4/45

1,483

FNR 2016-100 P 3.5% 11/44

Mortgage Back Security 2016-100 P 3.5% 11/44

2,206

FNR 2017-11 HA 3.5% 12/45

Mortgage Back Security 2017-11 HA 3.5% 12/45

2,352

FNR 2017-20 AP 3.5% 03/45

Mortgage Back Security 2017-20 AP 3.5% 03/45

2,636

FNR 2017-74 PA 3.5% 11/45

Mortgage Back Security 2017-74 PA 3.5% 11/45

2,380

FNR 2017-97 P 3% 01/47

Mortgage Back Security 2017-97 P 3% 01/47

1,529

FNR 2018-3 LP 3% 02/47

Mortgage Back Security 2018-3 LP 3% 02/47

4,347

FNR 2018-16 NB 3.25% 12/44

Mortgage Back Security 2018-16 NB 3.25% 12/44

1,528

FNR 2018-11 LA 3.5% 7/45

Mortgage Back Security 2018-11 LA 3.5% 7/45

1,980

FNR 2018-44 PA 3.5% 06/44

Mortgage Back Security 2018-44 PA 3.5% 06/44

7,681

FNR PA 3.5% 02/46

Mortgage Back Security PA 3.5% 02/46

2,293

FNMA GTD CTF 3.5% 10/44

Mortgage Back Security CTF 3.5% 10/44

1,930

FNR 2018-88 BA 4% 11/25/43

Mortgage Back Security 2018-88 BA 4% 11/25/43

2,357

FNMA GTD REM 2019-14 DA 4% 03/25/48

Mortgage Back Security 2019-14 DA 4% 03/25/48

1,100

FNMA GTD REM 4% 11/48

Mortgage Back Security 4% 11/48

2,351

FNMA GTD REM 3% 03/48

Mortgage Back Security 3% 03/48

4,448

FNMA GTD REM 2019-38 AB 3% 07/25/39

Mortgage Back Security 2019-38 AB 3% 07/25/39

2,456

FNMA GTD REM PA 2.5% 10/39

Mortgage Back Security 2.5% 10/39

1,563

FHLMC GT 4135 AB 1.75% 06/15/42

Mortgage Back Security 4135 AB 1.75% 06/15/42

128

FHKMC CTFS 2.682% 10/25/22

Government Bond CTFS 2.682% 10/25/22

412

FHLMC GT 2% 08/32

Mortgage Back Security GT 2% 08/32

443

FHLMC GT 2% 10/32

Mortgage Back Security GT 2% 10/32

462

FHLMC GT 3.0% 05/45

Mortgage Back Security GT 3.0% 05/45

727

FHLMC GT K720 A2 2.716% 06/22

Government Bond A2 2.716% 06/22

1,749

FHLMC GT K722 A2 2.406% 03/23

Government Bond A2 2.406% 03/23

1,613

FHMA K724 A1 2.776% 03/23

Government Bond K724 A1 2.776% 03/23

412

FREDDIE MAC 4656 PA 3.5% 10/15/45

Mortgage Back Security PA 3.5% 10/15/45

1,564

FHR 4683 EA 2.5% 05/47

Mortgage Back Security EA 2.5% 05/47

1,934

FHMS K027 A2 2.637% 01/23

Government Bond A2 2.637% 01/23

1,562

Eastman Investment and Employee Stock Ownership Plan

Schedule H, Line 4 (i) - Schedule of Assets (Held at End of Year)

December 31, 2019

(in thousands)

(a)

(b)
Identity of issue, borrower, lessor, or similar party

(d)
Historical Cost

(e)
Current Value

FHLMC CTF GT 3.3% 04/25/2023

Government Bond GT 3.3% 04/25/2023

1,492

FHLMC 1.125% 08/12/2021

Government Bond 1.125% 08/12/2021

1,465

FHMS 2017-K727 A1 2.632% 10/25/2023

Government Bond A1 2.632% 10/25/2023

265

FHLMC CTF GT K727 A2 2.946% 07/24

Government Bond A2 2.946% 07/24

1,818

FHLMC 4765 QA 3% 02/15/2046

Mortgage Back Security QA 3% 02/15/2046

3,255

FHLMC GT 2018-K079 A1 3.729% 02/28

Government Bond A1 3.729% 02/28

516

FHLMC GT 4847 CA 3.5% 11/15/45

Mortgage Back Security CA 3.5% 11/15/45

1,831

FHLMC GT 4% 07/15/2047

Mortgage Back Security GT 4% 7/15/47

2,846

FHLMC GT 2019-4872 AB 4% 08/47

Mortgage Back Security AB 4% 08/47

2,691

FHLMC GT 3% 07/25/2039

Mortgage Back Security GT 3% 07/25/39

1,934

FREDDIE MAC 3% 10/25/2048

Mortgage Back Security 3% 10/25/48

1,709

FREDDIE MAC 2018-4766 MA 3.5% 02/46

Mortgage Back Security MA 3.5% 02/46

3,064

Fidelity Short Term Cash Fund

Fid Inst Cash Port: MM Fund Class 1 SHS F/N/A

6,127

FNMA 5.50% 11/34 #310105

Government Bond 5.50% 11/34 #310105

464

FNMA 20YR 2.5% 01/33 #AL2974

Government Bond 20YR 2.5% 01/33 #AL2974

393

FNMA 20YR 2.5% 01/33 #AL2975

Government Bond 20YR 2.5% 01/33 #AL2975

451

FNMA 20YR 2.5% 01/33 #AL2976

Government Bond 20YR 2.5% 01/33 #AL2976

268

FNMA 20YR 2.5% 01/33 #AL2982

Government Bond 20YR 2.5% 01/33 #AL2982

317

FNMA 15YR 3.5% 10/29#AL5851

Government Bond 15YR 3.5% 10/29#AL5851

231

FNMA 15YR 3.5% 09/29#AL5878

Government Bond 15YR 3.5% 09/29#AL5878

583

FNMA 15YR 4.5% 11/25#AL8242

Government Bond 15YR 4.5% 11/25#AL8242

361

FNMA 15YR 2.5% 10/31 #AS8010

Government Bond 15YR 2.5% 10/31 #AS8010

990

FNMA 15YR 3% 09/31#AL8853

Government Bond 15YR 3% 09/31#AL8853

2,482

FNMA 6.50% 7/32 #545759

Government Bond 6.50% 7/32 #545759

FNMA 6.50% 7/32 #545762

Government Bond 6.50% 7/32 #545762

FHR 3415 PC 5% 12/37

Mortgage Back Security 3415 PC 5% 12/37

FNR 2011-26 PA 4.5% 04/41

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

601

FNMA 15YR 4% 05/29 #BM5499

Government Bond 15YR 4% 05/29 #BM5499

4,255

FNMA 15YR 3% 12/31 #BM1790

Government Bond 15YR 3% 12/31 #BM1790

991

FNMA 3.5% 07/32 #BM3929

Government Bond 3.5% 07/32 #BM3929

2,156

FNMA 15YR 3% 03/01/2030 #BM4299

Government Bond 15YR 3% 03/01/2030 #BM4299

3,971

FNMA 15YR 3% 12/01/2032 #BM5109

Government Bond 15YR 3% 12/01/2032 #BM5109

6,002

FNMA 15YR 3% 09/01/2032 #BM5110

Government Bond 15YR 3% 09/01/2032 #BM5110

2,625

FNMA 20YR 4.5% 06/01/2039 #FM1045

Government Bond 20YR 4.5% 06/01/2039 #FM1045

205

FNMA 20YR 4.5% 08/01/2039 #FM1353

Government Bond 20YR 4.5% 08/01/2039 #FM1353

460

FNMA 15YR 3% 06/01/2033

Government Bond 15YR 3% 06/01/2033

1,679

FNMA 30YR 4.5% 09/01/2049 #FM1534

Government Bond 30YR 4.5% 09/01/2049 #FM1534

3,484

FNMA 15YR 3.5% 09/01/2034 #FM1577

Government Bond 15YR 3.5% 09/01/2034 #FM1577

2,107

FNMA 20YR 4.5% 03/01/2039 #FM1774

Government Bond 20YR 4.5% 03/01/2039 #FM1774

355

FNMA 6.50% 12/32 #735415

Government Bond 6.5% 12/32 #735415

FNMA 6.50% 7/35 #745092

Government Bond 6.50% 7/35 #745092

FNMA 6.50% 8/36 #888034

Government Bond 6.50% 8/36 #888034

FNMA 6.50% 8/36 #888544

Government Bond 6.50% 8/36 #888544

FNMA 20YR 4.0% 04/01/2038 #MA3337

Government Bond 20YR 4.0% 04/01/2038 #MA3337

3,159

FNMA 6.50% 12/35 #AD0723

Government Bond 6.50% 12/35 #AD0723

FNMA 6.50% 8/36 #AE0746

Government Bond 6.50% 8/36 #AE0746

FIFTH THIRD BAN 2.875% 10/1/21

Corporate Bond 2.875% 10/1/21

777

FITAT 2017-1 A3 1.8% 02/22

Mortgage Back Security 2017-1 A3 1.8% 02/22

455

FORDF 2017-1 A1 2.07% 05/15/22

Mortgage Back Security 2017-1 A1 2.07% 05/15/22

1,035

FORDF 2017-2 A1 2.16% 09/15/22

Mortgage Back Security 2017-2 A1 2.16% 09/15/22

1,729

Eastman Investment and Employee Stock Ownership Plan

Schedule H, Line 4 (i) - Schedule of Assets (Held at End of Year)

December 31, 2019

(in thousands)

(a)

(b)
Identity of issue, borrower, lessor, or similar party

(d)
Historical Cost

(e)
Current Value

FORDF 2018-1 A1 2.95% 5/23

Mortgage Back Security 2018-1 A1 2.95% 5/23

2,047

FORDR 2015-1 A 2.12% 07/26

Mortgage Back Security 2015-1 A 2.12% 07/26

2,259

FORD CRD 16-1 A 2.31% 08/15/20

Mortgage Back Security 16-1 A 2.31% 08/15/20

2,096

FORDO 2016-C A3 1.22% 03/21

Mortgage Back Security 2016-C A3 1.22% 03/21

153

FORDO 2017-A A3 1.67% 6/21

Mortgage Back Security 2017-A A3 1.67% 6/21

354

FORDO 2019-1 A 3.52% 07/15/2030 14

Mortgage Back Security 2019-1 A 3.52% 07/15/2030 14

1,545

FORD MTR CR CO 3.336% 03/18/21

Corporate Bond 3.36% 03/18/21

1,780

FORD MTR CR CO 2.681% 01/09/20

Corporate Bond 2.681% 01/09/20

912

FORD MTR CR LLC 3.339% 3/28/22

Corporate Bond 3.339% 3/28/22

766

FORD MTR CR CO 4.14% 02/15/23

Corporate Bond 4.14% 02/15/23

1,566

FORTIVE CORP 2.35% 06/15/21

Corporate Bond 2.35% 06/15/21

538

GE CAP INTL 2.342% 11/15/20

Corporate Bond 2.342% 11/15/20

1,516

GNII II 4.5% 06/20/48 #MA5265

Government Bond 4.5% 06/20/48 #MA5265

1,569

GFORT 2017-1 A1 2.22% 01/22 144A

Mortgage Back Security 2017-1 A1 2.22% 01/22 144A

1,355

GFORT 3.13% 03/15/2023

Mortgage Back Security 3.13% 03/15/2023

1,567

GSMS 2012-GC6 A3 3.482% 01/45

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

918

GSMS 2013-GC10 A4 2.681% 02/46

Mortgage Back Security 2013-GC10 A4 2.681% 02/46

631

GSMS 2013-GC10 A5 2.943% 02/46

Mortgage Back Security 2013-GC10 A5 2.943% 02/46

1,822

GSMS 2012-GCJ7 A4 3.377% 05/45

Mortgage Back Security 2012-GCJ7 A4 3.377% 05/45

1,321

GSMS 2014-GC26 AAB 3.365% 11/47

Mortgage Back Security 2014-GC26 AAB 3.365% 11/47

1,058

GSMS 2015-GC32 A2 3.062% 7/48

Mortgage Back Security 2015-GC32 A2 3.062% 7/48

1,125

GSMS 2015-GC32 AAB 3.513% 7/48

Mortgage Back Security 2015-GC32 AAB 3.513% 7/48

606

GSMS 2015-GC28 AAB 3.206% 2/48

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

763

GSMS 2016-GS4 A1 1.731% 11/49

Mortgage Back Security 2016-GS4 A1 1.731% 11/49

109

GSMS 2014-GC18 AAB 3.648% 01/47

Mortgage Back Security 2014-GC18 AAB 3.648% 01/47

211

GSMS 14-GC20 AAB 3.655% 04/47

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

260

GMCAR 2018-1A A3 2.32% 7/18/22

Mortgage Back Security 2018-1A A3 2.32% 7/18/22

694

GMFALT 2019-1 2.98% 12/21

Mortgage Back Security 2019-1 2.98% 12/21

903

GMCAR 2019-1 2.97% 11/23

Mortgage Back Security 2019-1 2.97% 11/23

1,387

GMFALT 2019-1 2.67% 03/22

Mortgage Back Security 2019-1 2.67% 03/22

543

GENERAL ELEC CO 3.375% 3/11/24

Corporate Bond 3.375% 3/11/24

1,561

GENERAL MTRS FIN 2.65% 4/13/20

Corporate Bond 2.65% 4/13/20

1,249

GENERAL MTRS FINL 3.55% 4/9/21

Corporate Bond 3.55% 4/9/21

1,031

GSINC 5.25% 7/27/21

Corporate Bond 5.25% 7/27/21

702

GOLDMAN SACHS GRP 3% 04/26/22

Corporate Bond 3% 04/26/22

763

GOLDMAN SACHS GRP 2.905%/VAR 07/23

Corporate Bond 2.905%/VAR 07/23

783

GOLDMAN SAC BK USA 3.2% 02/23

Corporate Bond 3.2% 02/23

1,247

GOLDMAN SACHS 2.876%/VAR 10/22

Corporate Bond 2.876%/VAR 10/22

1,329

HSBC HLDNGS 3.262/VAR 3/13/23

Corporate Bond 3.262/VAR 3/13/23

1,548

HSBC HOLDINGS 3.95%/VAR 5/24

Corporate Bond 3.95%/VAR 5/24

1,690

HSBC HOLDINGS 3.803%/VAR 03/11/25

Corporate Bond 3.803%/VAR 03/11/25

2,015

HEALTH CARE REI 4% 06/01/25

Corporate Bond 4% 06/01/25

1,176

HEALTHCARE TR 3.5% 08/26

Corporate Bond 3.5% 08/26

176

HAROT 2016-4 A3 1.21% 12/20

Mortgage Back Security 2016-4 A3 1.21% 12/20

142

HAROT 2017-1 A3 1.72% 07/21

Mortgage Back Security 2017-1 A3 1.72% 07/21

417

HUNTINGTN BCSHRS 2.3% 1/14/22

Corporate Bond 2.3% 1/14/22

1,097

HUNTINGTN BCSHRS 2.625% 8/6/24

Corporate Bond 2.625% 8/6/24

1,340

HART 2016-B A3 1.29% 4/21

Mortgage Back Security 2016-B A3 1.29% 4/21

209

HART 2019-B 1.94% 02/15/2024

Mortgage Back Security 2019-B 1.94% 02/15/2024

1,063

HALST 2018-A A3 2.79% 07/22

Mortgage Back Security 2018-A A3 2.79% 07/22

1,021

Eastman Investment and Employee Stock Ownership Plan

Schedule H, Line 4 (i) - Schedule of Assets (Held at End of Year)

December 31, 2019

(in thousands)

(a)

(b)
Identity of issue, borrower, lessor, or similar party

(d)
Historical Cost

(e)
Current Value

IMPERIAL TOBACCO 3.125% 07/24 144A

Corporate Bond 3.125% 07/24 144A

1,484

INTERCO EXCH INC 3.45% 9/21/23

Corporate Bond 3.45% 9/21/23

974

IBM CORPORATION 2.85% 05/13/2022

Corporate Bond 2.85% 05/13/2022

1,948

JPMCC 2015-JP1 A2 3.1438% 1/49

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

796

JP MORGAN CHASE 2.295% 8/15/21

Corporate Bond 2.295% 8/15/21

404

JPMORGAN CHASE 2.55% 3/1/21

Corporate Bond 2.55% 3/1/21

1,087

JP MORGAN CHASE

Synthetic GIC – 2.54% (fair value to contract value)

(2,141)

JPMCC 2012-C6 A3 3.5074% 5/45

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

532

JPMCC 2013-C10 A5 3.1425% 12/47

Mortgage Back Security 2013-C10 A5 3.1425% 12/47

1,550

JPMCC 14-C22 3.8012% 09/47

Mortgage Back Security 14-C22 3.8012% 09/47

739

JPMCC 14-C22 ASB 3.5036% 09/47

Mortgage Back Security 14-C22 3.5036% 09/47

687

JPMCC 16-JP4 A2 2.984% 12/49

Mortgage Back Security 16-JP4 A2 2.984% 12/49

1,085

JPMORGAN CHASE 3.559%/VAR 04/23/24

Corporate Bond 3.559%/VAR 04/23/24

2,097

JPMORGAN CHASE 3.514% 06/18/2022

Corporate Bond 3.514% 06/18/2022

1,636

JPMORGAN CHASE 4.023/VAR 12/24

Corporate Bond 4.023/VAR 12/24

780

JAPAN BANK INTL 1.5% 7/21/21

Corporate Bond 1.5% 7/21/21

1,313

JOHN DEERE 2019-B 2.21% 12/23

Mortgage Back Security 2019-B 2.21% 12/23

1,179

KEY BANK NA 3.3% 02/01/22

Corporate Bond 3.3% 02/01/22

446

KINDER MORGAN EN 3.5% 9/1/23

Corporate Bond 3.5% 9/1/23

890

KCOT 2018-1A A3 3.1% 08/22

Mortgage Back Security 2018-1A A3 3.1% 08/22

2,032

LINCOLN NATL LIFE INS CO

Synthetic GIC – 2.53% (fair value to contract value)

(448)

MARSH & MCLENNAN 2.75% 01/30/22

Corporate Bond 2.75% 01/30/22

1,735

MARSH & MCLENNAN 3.875% 03/15/24

Corporate Bond 3.875% 03/15/24

721

MCDONALDS CORP MTN 3.625% 5/21

Corporate Bond 3.625% 5/21

406

MBALT 2019-B A3 2.03% 10/22

Mortgage Back Security 2019-B A3 2.03% 10/22

828

MBALT 2019-A A3 3.1% 11/21

Mortgage Back Security 2019-A A3 3.1% 11/21

914

METROPOLITAN LIFE INS CO

Synthetic GIC – 2.54% (fair value to contract value)

(484)

MET LIFE GLOB 2.65% 4/22 144A

Corporate Bond 2.65% 4/22 144A

1,347

MITSUBISHI UFJ FI 2.95% 3/1/21

Corporate Bond 2.95% 3/1/21

1,657

MITSUBISH UFJ 2.19% 9/13/21

Corporate Bond 2.19% 9/13/21

1,716

MITSUBISHI UFJ FIN 2.998% 2/22

Corporate Bond 2.998% 2/22

927

MITSUBISHI UFJ 3.455% 3/02/23

Corporate Bond 3.455% 3/02/23

838

MITSUBISHI UFJ 3.218% 03/07/22

Corporate Bond 3.218% 03/07/22

1,552

MITSUBISHI UFJ 2.623% 07/18/22

Corporate Bond 2.623% 07/18/22

1,435

MIZUHO FINL 2.273% 9/13/21

Corporate Bond 2.273% 9/13/21

901

MOODYS CORP 2.75% 12/15/21

Corporate Bond 2.75% 12/15/21

556

MSBAM 2015-C22 ASB 3.04% 4/15/48

Mortgage Back Security 2015-C22 ASB 3.04% 4/15/48

416

MSBAM 2013-C7 A4 2.918% 2/46

Mortgage Back Security 2013-C7 A4 2.918% 2/46

1,295

MSBAM 2016-C32 A1 1.968% 12/49

Mortgage Back Security 2016-C32 A1 1.968% 12/49

350

MORGAN STANLEY 2.75% 05/19/22

Corporate Bond 2.75% 05/19/22

797

MORGAN STANLEY 3.125% 01/23/23

Corporate Bond 3.125% 01/23/23

1,635

MORGAN STANLEY 3.737%/VAR 4/24

Corporate Bond 3.737%/VAR 4/24

1,690

MORGAN STANLEY 2.72%/VAR 07/25

Corporate Bond 2.72%/VAR 07/25

1,137

MSC 2011-C2 A4 4.661% 06/44

Mortgage Back Security 2011-C2 A4 4.661% 06/44

1,130

MORGAN STANLEY 2.5% 04/21/21

Corporate Bond 2.5% 04/21/21

1,085

MORGAN STANLE MTN 5.5% 1/26/20

Corporate Bond 5.5% 1/26/20

1,723

MSBAM 2012-C6 A4 2.858% 11/45

Mortgage Back Security 2012-C6 A4 2.858% 11/45

1,691

MSBAM 2013-C8 A4 3.134% 12/48

Mortgage Back Security 2013-C8 A4 3.134% 12/48

1,476

MSBAM 2013-C11 A4 CSTR 8/46

Mortgage Back Security 2013-C11 A4 CSTR 8/46

492

MSBAM 13-C13 ASB 3.557% 11/46

Mortgage Back Security 13-C13 ASB 3.557% 11/46

972

Eastman Investment and Employee Stock Ownership Plan

Schedule H, Line 4 (i) - Schedule of Assets (Held at End of Year)

December 31, 2019

(in thousands)

(a)

(b)
Identity of issue, borrower, lessor, or similar party

(d)
Historical Cost

(e)
Current Value

MSBAM 2014-C16 ASB 3.477% 6/47

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

878

MSBAM 2014-C17 ASB 3.477% 8/47

Mortgage Back Security 2014-C17 ASB 3.477% 8/47

1,178

MSBAM 2015-C21 ASB 3.15% 03/48

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

251

MSBAM 2016-C31 A1 1.555% 11/49

Mortgage Back Security 2016-C31 A1 1.555% 11/49

225

MSBAM 2019-MEAD 3.17% 11/36

Mortgage Back Security 2019-MEAD 3.17% 11/36

1,070

NAT-RURAL 2.3% 11/01/20

Corporate Bond 2.3% 11/01/20

NYLIFE GLBL 1.7% 9/14/21 144A

Corporate Bond 1.7% 9/14/21 144A

2,258

NY LFE GLB 2.3% 6/10/22 144A

Corporate Bond 2.3% 6/10/22 144A

1,336

NYC TFA (PIT) 2.05% 08/01/23

Municipal Bond 2.05% 08/01/23

471

NYC TFA (PIT) 2.85% 02/01/24

Municipal Bond 2.85% 02/01/24

448

NYS UDC 2.67% 03/15/23

Municipal Bond 2.67% 03/15/23

1,116

NYS UDC 2.7% 03/15/23

Municipal Bond 2.7% 03/15/23

1,912

NAROT 2017-A A3 1.74% 08/21

Mortgage Back Security 2017-A A3 1.74% 8/21

648

NAROT 2016-B A3 1.32% 01/15/21

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

NATIONWIDE LIFE INSURANCE CO

Synthetic GIC – 2.53% (fair value to contract value)

(1,168)

NORTHERN STES PWR 2.2% 8/15/20

Corporate Bond 2.2% 8/15/20

313

OCCIDENTAL PET 2.7% 08/22

Corporate Bond 2.7% 08/22

179

OCCIDENTAL PET 3.35988% 08/22

Corporate Bond 3.35988% 08/22

707

OCCIDENTAL PET 3.2% 08/26

Corporate Bond 3.2% 08/26

OCCIDENTAL PET 2.6% 08/21

Corporate Bond 2.6% 08/21

201

OCCIDENTAL PET 2.9% 08/24

Corporate Bond 2.9% 08/24

595

ONTARIO PROVINCE CDA 2.4% 02/22

Corporate Bond 2.4% 02/22

1,840

PACIFIC LIFE INS CO

Synthetic GIC - 2.53% (fair value to contract value)

(296)

PHILIP MORS INT 2.625% 02/18/22

Corporate Bond 2.625% 02/18/22

572

PHILIP MORS INT 2.875% 05/01/24

Corporate Bond 2.875% 05/01/24

1,550

PRICOA GLBL 2.4% 09/23/24 144A

Corporate Bond 2.4% 09/23/24 144A

1,758

PRICOA GLBL 2.45% 09/21/22 144A

Corporate Bond 2.45% 09/21/22 144A

1,303

PRUDENTIAL INSURANCE COMPANY

Synthetic GIC - 2.52% (fair value to contract value)

(1,878)

PUBLIC SERVICE ELE 2.65% 11/22

Corporate Bond 2.65% 11/22

1,209

QUEBEC PROVINCE 2.375% 1/31/22

Corporate Bond 2.375% 1/31/22

2,306

REGIONS FIN CORP 2.75% 8/22

Corporate Bond 2.75% 8/22

1,620

REGIONS FINL CORP 3.8% 08/14/23

Corporate Bond 3.8% 08/14/23

603

REYNOLDS AMERICAN 4% 6/12/22

Corporate Bond 4% 6/12/22

522

ROPER TECHNOLOGIES 3% 12/15/20

Corporate Bond 3% 12/15/20

707

ROPER TECHNOLOGIES 3.65% 09/23

Corporate Bond 3.65% 09/23

1,062

ROYAL BNK CANADA 4.65% 1/27/26

Corporate Bond 4.65% 1/27/26

921

ROYAL BK SCO 4.519%/VAR 06/24

Corporate Bond 4.519%/VAR 06/24

2,103

ROYAL BNK OF CAN 3.7% 10/5/23

Corporate Bond 3.7% 10/5/23

1,598

SSM HEALTH CARE 3.688% 6/1/23

Corporate Bond 3.688% 6/1/23

958

SRALT 2017-A A3 2.22% 01/21

Mortgage Back Security 2017-A A3 2.22% 01/21

626

SRALT 2018-A A3 2.93% 05/21

Mortgage Back Security 2018-A A3 2.93% 05/21

1,291

SSTRT 2017-2A A3 2.04% 4/21 144A

Mortgage Back Security 2017-2A A3 2.04% 4/21 144A

342

SSTRT 2019-1 2.986% 02/23

Mortgage Back Security 2019-1 2.986% 02/23

1,003

SSTRT 2018-2A A3 3.325% 8/25/22

Mortgage Back Security 2018-2A A3 3.325% 8/25/22

1,853

SEMPRA ENERGY 2.85% 11/15/20

Corporate Bond 2.85% 11/15/20

564

SEMPRA ENERGY 2.9% 02/01/23

Corporate Bond 2.9% 02/01/23

317

SHELL INTL 2.25% 11/10/20

Corporate Bond 2.25% 11/10/20

1,075

SIMON PPTY GRP 2.625% 06/15/22

Corporate Bond 2.625% 06/15/22

1,185

SIMON PROPERTY 2.75% 06/01/23

Corporate Bond 2.75% 06/01/23

1,444

SOUTHERN COMPANY 2.35% 7/1/21

Corporate Bond 2.35% 7/1/21

1,901

Eastman Investment and Employee Stock Ownership Plan

Schedule H, Line 4 (i) - Schedule of Assets (Held at End of Year)

December 31, 2019

(in thousands)

(a)

(b)
Identity of issue, borrower, lessor, or similar party

(d)
Historical Cost

(e)
Current Value

STATE STREET BANK & TRUST CO

Synthetic GIC – 2.54% (fair value to contract value)

(1,273)

SUMITOMO MITSUI 2.934% 3/9/21

Corporate Bond 2.934% 3/9/21

942

SUNTRUST BAN 3.502%/VAR 8/2/22

Corporate Bond 3.502%/VAR 8/2/22

1,270

SUNTRUST BANKS INC 3.2% 04/01/24

Corporate Bond 3.2% 04/01/24

838

SUNTRUST BANKS INC 2.8% 05/17/22

Corporate Bond 2.8% 05/17/22

1,891

SUNTRUST BANKS INC 2.9% 03/03/21

Corporate Bond 2.9% 03/03/21

724

TOYOTA MOTOR CORP 3.05% 01/08/21

Corporate Bond 3.05% 01/08/21

486

TAOT 2018-B A3 2.96% 09/22

Mortgage Back Security 2018-B A3 2.96% 09/22

1,006

TRANSAMERICA PREMIER LIFE

Synthetic GIC – 2.54% (fair value to contract value)

(1,534)

UBSBB 2012-C2 A4 3.525% 5/63

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

977

USAOT 2017-1 A3 1.79% 05/21

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

USTN 2.375% 8/15/24

Government Bond 2.375% 8/15/24

29,945

USTN 2% 08/15/25

Government Bond 2% 08/15/25

24,599

USTN 1.375% 08/31/23

Government Bond 1.375% 08/31/23

28,780

USTN 1.875% 07/31/22

Government Bond 1.875% 07/31/22

85,573

USTN 2.875% 11/15/21

Government Bond 2.875% 11/15/21

10,843

USTN 3.125% 11/15/28

Government Bond 3.125% 11/15/28

24,135

UNITEDHELTH GR 2.875% 12/15/21

Corporate Bond 2.875% 12/15/21

817

VENTAS RLTY LTD 3.5% 04/15/24

Corporate Bond 3.5% 04/15/24

704

VENTAS RLTY LTD 2.65% 01/15/25

Corporate Bond 2.65% 01/15/25

1,070

VERIZON COM 2.946% 03/15/22

Corporate Bond 2.946% 03/15/22

860

VERIZON COM 3.125% 03/16/22

Corporate Bond 3.125% 03/16/22

1,553

VZOT 17-2A A 1.92% 12/21

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

436

VZOT 2017-3A A1A 2.06% 04/22

Mortgage Back Security 2017-3A A1A 2.06% 04/22

1,371

VISA INC 2.8% 12/14/22

Corporate Bond 2.8% 12/14/22

1,102

VOLKSWAGEN GRP 2.4% 5/20 144A

Corporate Bond 2.4% 5/20 144A

745

VALET 2018-1 A3 3.02% 11/22

Mortgage Back Security 2018-1 A3 3.02% 11/22

935

WFRBS 2014-C20 ASB 3.638% 05/47

Mortgage Back Security 2014-C20 ASB 3.638% 05/47

426

WFRBS 2014-C22 ASB 3.464% 9/57

Mortgage Back Security 2014-C22 ASB 3.464% 9/57

1,688

WFRBS 2012-C9 A3 2.87% 11/45

Mortgage Back Security 2012-C9 A3 2.87% 11/45

1,053

WFRBS 2011-C3 A4 4.375% 3/44

Mortgage Back Security 2011-C3 A4 4.375% 3/44

1,070

WFRBS 2012-C7 A2 3.431% 6/45

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

768

WFRBS 2013-C12 ASB 2.838% 03/48

Mortgage Back Security 2013-C12 ASB 2.838% 03/48

128

WFRBS 2013-C16 A5 4.415% 09/46

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

968

WFRBS 2013-C16 ASB 3.963% 09/46

Mortgage Back Security 2013-C16 ASB 3.963% 09/46

309

WFRBS 2014-C23 ASB 3.636% 10/57

Mortgage Back Security 2014-C23 ASB 3.636% 10/57

561

WASHINGTON PG 3.85% 4/1/20

Corporate Bond 3.85% 4/1/20

717

WELLS FARGO 3% 01/22/21

Corporate Bond 3% 01/22/21

1,560

WELLS FARGO & CO MTN 2.55% 12/7/20

Corporate Bond 2.55% 12/7/20

408

WELLS FARGO & CO 2.1% 07/26/21

Corporate Bond 2.1% 07/26/21

1,752

WFCM 2012-LC5 A3 2.918% 10/45

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

435

WELLS FARGO BK 3.55% 8/14/23

Corporate Bond 3.55% 8/14/23

1,592

WFCM 2013-LC12 A1 1.676% 7/46

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

WFCM 15-C27 ASB 3.278% 02/15/48

Mortgage Back Security 15-C27 ASB 3.278% 02/15/48

1,031

WFCM 2016-LC25 1.795% 12/15/59

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

WFCM 2016-C36 A1 1.453% 11/59

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

108

WFCM 2016-C37 A2 3.103% 12/49

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

764

WELLS FARGO CO 3.75% 01/24/24

Corporate Bond 3.75% 01/24/24

1,577

WELLTOWER INC 3.95% 09/01/23

Corporate Bond 3.95% 09/01/23

690

WELLTOWER INC 3.625% 03/15/24

Corporate Bond 3.625% 03/15/24

1,251

Eastman Investment and Employee Stock Ownership Plan

Schedule H, Line 4 (i) - Schedule of Assets (Held at End of Year)

December 31, 2019

(in thousands)

(a)

(b)
Identity of issue, borrower, lessor, or similar party

(d)
Historical Cost

(e)
Current Value

WISCONSIN ENERGY 2.45% 6/15/20

Corporate Bond 2.45% 6/15/20

422

WOART 16-B A3 1.3% 2/22

Mortgage Back Security 16-B A3 1.3% 2/22

367

WOART 2016-A A3 1.77% 09/21

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

WOALST 2019 2.94% 05/16/22

Mortgage Back Security 2019 2.94% 05/16/22

822

XCEL ENERGY INC 2.4% 03/15/21

Corporate Bond 2.4% 03/15/21

400

ZIONS BANCORP 3.35% 03/04/22

Corporate Bond 3.35% 03/04/22

637

Sub-total Managed Income Funds

708,755

Self-Directed Brokerage Account

Various shares

86,928

Total Investment Assets

3,174,175

Participant Loans

Interest rates ranging 4.25% - 6.5% with maturity dates through January 2026

53,475

* Represents a party-in-interest to the Plan.

** Historical cost is omitted because the investment is participant-directed.

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 25, 2020			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

Eastman Investment and Employee Stock Ownership Plan

Exhibit Index


Exhibit Number	Description	Sequential Page Number
23.1	Consent of Brown Smith Wallace, LLP Independent Registered Public Accounting Firm	32