STOCKHOLDERS' EQUITY (Tables)

3 Months Ended

Mar. 31, 2021

Stockholders' Equity Note [Abstract]

Reconciliation of the changes in stockholders' equity

Reconciliations of the changes in stockholders' equity for first quarter 2021 and 2020 are provided below:

(Dollars in millions, except per share amount)	Common Stock at Par Value		Additional Paid-in Capital		Retained Earnings		Accumulated Other Comprehensive Income (Loss)		Treasury Stock at Cost		Total Eastman Stockholders' Equity		Noncontrolling Interest		Total Equity
Balance at December 31, 2020	$	2	$	2,174	$	8,080	$	(273)	$	(3,960)	$	6,023	$	85	$	6,108
Net Earnings	—		—		274		—		—		274		3		277
Cash Dividends Declared (1) ($0.69 per share)	—		—		(94)		—		—		(94)		—		(94)
Other Comprehensive Income (Loss)	—		—		—		25		—		25		—		25
Share Based Compensation Expense (2)	—		22		—		—		—		22		—		22
Stock Option Exercises	—		38		—		—		—		38		—		38
Other (3)	—		(15)		—		—		—		(15)		(1)		(16)
Share Repurchase	—		—		—		—		(40)		(40)		—		(40)
Distributions to noncontrolling interest	—		—		—		—		—		—		(1)		(1)
Balance at March 31, 2021	$	2	$	2,219	$	8,260	$	(248)	$	(4,000)	$	6,233	$	86	$	6,319

(Dollars in millions, except per share amount)	Common Stock at Par Value		Additional Paid-in Capital		Retained Earnings		Accumulated Other Comprehensive Income (Loss)		Treasury Stock at Cost		Total Eastman Stockholders' Equity		Noncontrolling Interest		Total Equity
Balance at December 31, 2019	$	2	$	2,105	$	7,965	$	(214)	$	(3,900)	$	5,958	$	74	$	6,032
Net Earnings	—		—		258		—		—		258		2		260
Cash Dividends Declared (1) ($0.66 per share)	—		—		(90)		—		—		(90)		—		(90)
Other Comprehensive Income (Loss)	—		—		—		17		—		17		—		17
Share Based Compensation Expense (2)	—		15		—		—		—		15		—		15
Other (3)	—		(11)		—		—		—		(11)		(1)		(12)
Share Repurchase	—		—		—		—		(30)		(30)		—		(30)
Balance at March 31, 2020	$	2	$	2,109	$	8,133	$	(197)	$	(3,930)	$	6,117	$	75	$	6,192

(1)Cash dividends declared consists of cash dividends paid and dividends declared but unpaid.

(2)Share-based compensation expense is based on the fair value of share-based awards.

(3)Additional paid-in capital includes value of shares withheld for employees' taxes on vesting of share-based compensation awards.

Accumulated Other Comprehensive Income (Loss)

(Dollars in millions)	Cumulative Translation Adjustment		Benefit Plans Unrecognized Prior Service Credits		Unrealized Gains (Losses) on Derivative Instruments		Unrealized Losses on Investments		Accumulated Other Comprehensive Income (Loss)
Balance at December 31, 2019	$	(264)	$	106	$	(55)	$	(1)	$	(214)
Period change	(29)		(19)		(11)		—		(59)
Balance at December 31, 2020	(293)		87		(66)		(1)		(273)
Period change	2		(7)		30		—		25
Balance at March 31, 2021	$	(291)	$	80	$	(36)	$	(1)	$	(248)

Schedule of components of comprehensive income (loss) before tax and net of tax effects

Components of other comprehensive income recognized in the Unaudited Consolidated Statements of Earnings, Comprehensive Income and Retained Earnings are presented below, before tax and net of tax effects:

	First Quarter
	2021				2020
(Dollars in millions)	Before Tax		Net of Tax		Before Tax		Net of Tax
Other comprehensive income (loss)
Change in cumulative translation adjustment	$	2	$	2	$	19	$	19
Defined benefit pension and other postretirement benefit plans:
Amortization of unrecognized prior service credits	(9)		(7)		(10)		(7)
Derivatives and hedging:
Unrealized gain (loss) during period	33		25		10		7
Reclassification adjustment for (gains) losses included in net income, net	7		5		(3)		(2)
Total other comprehensive income (loss)	$	33	$	25	$	16	$	17