0000915389false00009153892024-10-312024-10-310000915389us-gaap:CommonStockMember2024-10-312024-10-310000915389emn:A1.875notesdueNovember2026Member2024-10-312024-10-31

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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549

FORM 8-K
CURRENT REPORT

Pursuant to Section 13 or 15 (d) of The Securities Exchange Act of 1934

Date of report (Date of earliest event reported):
October 31, 2024

EASTMAN CHEMICAL COMPANY
(Exact Name of Registrant as Specified in Its Charter)
Delaware 1-12626 62-1539359
(State or Other Jurisdiction
of Incorporation)		 (Commission File Number) (IRS Employer
Identification No.)
200 South Wilcox Drive 
KingsportTennessee37662
(Address of Principal Executive Offices)(Zip Code)
(423) 229-2000
(Registrant’s Telephone Number, Including Area Code)
  
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
 ☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
    
 ☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
    
 ☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
    
 ☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:
Title of each class Trading Symbol(s)Name of each exchange on which registered
Common Stock, par value $0.01 per share EMNNew York Stock Exchange
1.875% Notes Due 2026EMN26New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐


EASTMAN CHEMICAL COMPANY - EMN   

Item 2.02 Results of Operations and Financial Condition
 
On October 31, 2024, the registrant publicly released its financial results for third quarter 2024. The full text of the release is furnished as Exhibit 99.01 to this Current Report on Form 8-K, and is incorporated herein by reference. This information shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.

Item 9.01 Financial Statements and Exhibits:
 
(d) Exhibits
 
The following exhibits are furnished pursuant to Item 9.01:
 
99.01    Public release by Eastman on October 31, 2024 of third quarter 2024 financial results

104    Cover Page Interactive Data File


EASTMAN CHEMICAL COMPANY - EMN   
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized.
 
  
Eastman Chemical Company 
 
 By:
/s/ Michelle R. Stewart
Michelle R. Stewart
Vice President, Chief Accounting Officer and Corporate Controller
  
Date: October 31, 2024


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Exhibit 99.01
Eastman Announces Third Quarter 2024 Financial Results

KINGSPORT, Tenn., October 31, 2024 – Eastman Chemical Company (NYSE:EMN) announced its third quarter 2024 financial results.

•Strong year-over-year sales volume/mix growth with improvement in all operating segments
•Adjusted EBIT margin increased 360 basis points compared to last year through volume/mix growth, operating leverage, and commercial excellence
•Continued to make good progress on Kingsport methanolysis operations and the build of our sales funnel for 2025
•Made investment decision to move forward with the Longview, Texas, methanolysis facility
•Returned $195 million of cash to shareholders, including $100 million of share repurchases

(In millions, except per share amounts; unaudited) 3Q20243Q2023
Sales revenue$2,464$2,267
Earnings before interest and taxes ("EBIT")329256
Adjusted EBIT*366256
Earnings per diluted share 1.531.49
Adjusted earnings per diluted share*2.261.47
Net cash provided by operating activities396514
*For non-core and unusual items excluded from adjusted earnings and for adjusted provision for income taxes, segment adjusted EBIT margins, and net debt, reconciliations to reported company and segment earnings and total borrowings for all periods presented in this release, see Tables 3A, 3B, 4A, and 6.

“Our third-quarter results were driven by strong sales volume/mix growth, operating leverage, and continued commercial excellence,” said Mark Costa, Board Chair and CEO. “Underlying end-market trends remained largely unchanged from the second quarter, consistent with our expectations. In many of our specialty product lines, we continue to grow above underlying end markets, including automotive. During this prolonged period of muted demand, I am proud of the way the Eastman team has worked to find ways to deliver on our earnings and cash commitments this year. In the circular economy, I am excited to announce that we have made an investment decision and will be moving forward with the construction of a second methanolysis facility in Longview, Texas. We continue to make good progress on ramping up our Kingsport methanolysis facility, although we had more downtime than expected.”

Corporate Results 3Q 2024 versus 3Q 2023

Sales revenue increased 9 percent primarily due to 8 percent higher sales volume/mix.

Higher sales volume/mix across all segments was driven by the end of customer inventory destocking across most key end markets and innovation driving growth above underlying market trends.

EBIT increased primarily due to higher sales volume/mix, higher spreads in Chemical Intermediates, and improved asset utilization. This was partially offset by higher variable compensation and by operating costs for the Kingsport methanolysis facility.


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Segment Results 3Q 2024 versus 3Q 2023

Advanced Materials – Sales revenue increased 5 percent due to 8 percent higher sales volume/mix partially offset by 3 percent lower selling prices.

Higher sales volume/mix was driven by the end of customer inventory destocking across key end markets as well as continued growth of premium interlayers products in the automotive end market. This growth was partially offset by lower selling prices.

EBIT increased primarily due to higher sales volume/mix and improved asset utilization that was partially offset by higher costs associated with the Kingsport methanolysis facility.

Additives & Functional Products – Sales revenue increased 11 percent due to 11 percent higher sales volume/mix.

Higher sales volume/mix was driven primarily by the end of customer inventory destocking across key end markets and heat transfer fluid project fulfillments.

EBIT increased primarily due to higher sales volume/mix.

Fibers – Sales revenue increased 4 percent due to 2 percent higher sales volume/mix and 2 percent higher selling prices.

Higher selling prices were driven by acetate tow price increases. Sales volume/mix increased primarily due to textiles.

EBIT was slightly up primarily due to improved price-cost.

Chemical Intermediates – Sales revenue increased 13 percent due to 7 percent higher sales volume/mix and 6 percent higher selling prices.

Higher sales volume/mix and higher selling prices were driven by the end of customer inventory destocking and improved market conditions compared to the prior year period.

EBIT increased primarily due to improved olefin and derivative spreads.

Cash Flow

In third quarter 2024, cash provided by operating activities was $396 million. The company returned $195 million to stockholders through share repurchases and dividends. See Table 5. Priorities for uses of available cash for 2024 include organic growth investments, payment of the quarterly dividend, and share repurchases.

2024 Outlook

Commenting on the outlook for full-year 2024, Costa said, “We are proud to have delivered another strong quarter in this period of prolonged macroeconomic weakness. As expected, sales volume improved from last year mostly due to the lack of customer inventory destocking. With destocking over, our demand has reconnected to our end markets, which remain stable. In the fourth quarter, we expect to see normal seasonal volume declines across most of our markets. We also expect to continue to leverage our innovation-driven growth model to drive growth above our markets. We expect to benefit from commercial excellence and the continued flow through of lower raw material and energy costs in our specialty businesses. While we have made significant progress achieving consistent production rates at the Kingsport methanolysis facility, it has taken us longer than expected to achieve those rates. Despite these challenges, the strong results we have delivered in our base business enable us to keep the midpoint of our full-year adjusted EPS

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guidance unchanged. Taking these factors together, we expect 2024 EPS to be between $7.50 and $7.70 and for 2024 cash from operations to approach $1.3 billion, reflecting a targeted increase in working capital to support growth in 2025. I remain confident in our ability to deliver earnings growth and strong cash flow going forward.”

The full-year 2024 projected adjusted diluted EPS and Earnings Before Interest, Taxes, Depreciation, and Amortization (“EBITDA”) exclude any non-core, unusual, or nonrecurring items. Our financial results forecasts do not include non-core items (such as mark-to-market pension and other postretirement benefit gain or loss, and asset impairments and restructuring charges) or any unusual or non-recurring items because we are unable to predict with reasonable certainty the financial impact of such items. These items are uncertain and depend on various factors, and we are unable to reconcile projected adjusted diluted EPS and EBITDA excluding non-core and any unusual or non-recurring items to reported GAAP diluted EPS or net earnings without unreasonable efforts.

Forward-Looking Statements

The information in this release and other statements by the company may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act with respect to, among other items: projections and estimates of earnings, revenues, volumes, pricing, margins, cost reductions, expenses, taxes, liquidity, capital expenditures, cash flow, dividends, share repurchases or other financial items, statements of management’s plans, strategies and objectives for future operations, and statements regarding future economic, industry or market conditions or performance. Such projections and estimates are based upon certain preliminary information, internal estimates, and management assumptions, expectations, and plans. Forward-looking statements are subject to a number of risks and uncertainties, and actual performance or results could differ materially from that anticipated by any forward-looking statements. Forward-looking statements speak only as of the date they are made, and the company undertakes no obligation to update or revise any forward-looking statement. Other important assumptions and factors that could cause actual results to differ materially from those in the forward-looking statements are detailed in the company’s filings with the Securities and Exchange Commission (the “SEC”), which are accessible on the SEC’s website at www.sec.gov and the company’s website at www.eastman.com.

Conference Call and Webcast Information

Eastman will host a conference call with industry analysts on Nov. 1, 2024, at 8:00 a.m. ET. To listen to the live webcast of the conference call and view the accompanying slides and prepared remarks, go to investors.eastman.com, Events & Presentations. The slides and prepared remarks to be discussed during the call and webcast will be available at investors.eastman.com at approximately 4:15 p.m. ET on Oct. 31, 2024. To listen via telephone, the dial-in number is +1 (833) 470-1428, passcode: 170609. A web replay, a replay in downloadable MP3 format, and the accompanying slides and prepared remarks will be available at investors.eastman.com, Events & Presentations. A telephone replay will be available continuously beginning at approximately 1:00 p.m. Eastern Time, Nov. 1, 2024, through 11:59 p.m. Eastern Time, Nov. 11, 2024, Toll Free at +1 (866) 813-9403, passcode 986486.

Founded in 1920, Eastman is a global specialty materials company that produces a broad range of products found in items people use every day. With the purpose of enhancing the quality of life in a material way, Eastman works with customers to deliver innovative products and solutions while maintaining a commitment to safety and sustainability. The company’s innovation-driven growth model takes advantage of world-class technology platforms, deep customer engagement, and differentiated application development to grow its leading positions in attractive end markets such as transportation, building and construction, and consumables. As a globally inclusive and diverse company, Eastman employs approximately 14,000 people around the world and serves customers in more than 100 countries. The company had 2023 revenue of approximately $9.2 billion and is headquartered in Kingsport, Tennessee, USA. For more information, visit www.eastman.com.

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# # #

Contacts:

Media: Tracy Kilgore Addington
423-224-0498 / tracy@eastman.com

Investors: Greg Riddle
212-835-1620 / griddle@eastman.com

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FINANCIAL INFORMATION
October 31, 2024

For Eastman Chemical Company Third Quarter 2024 Financial Results Release




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Table 1 – Statements of Earnings
Third QuarterFirst Nine Months
(Dollars in millions, except per share amounts; unaudited)2024202320242023
Sales$2,464 $2,267 $7,137 $7,003 
Cost of sales (1)(2)(3)
1,859 1,783 5,401 5,406 
Gross profit605 484 1,736 1,597 
Selling, general and administrative expenses183 160 554 536 
Research and development expenses65 60 184 182 
Asset impairments, restructuring, and other charges, net30 — 41 22 
Other components of post-employment (benefit) cost, net(5)(2)(14)(8)
Other (income) charges, net 3 10 42 40 
Earnings before interest and taxes329 256 929 825 
Net interest expense49 57 148 163 
Earnings before income taxes 280 199 781 662 
Provision for income taxes
99 20 204 77 
Net earnings181 179 577 585 
Less: Net earnings attributable to noncontrolling interest1 1 2 1 
Net earnings attributable to Eastman$180 $178 $575 $584 
Basic earnings per share attributable to Eastman$1.55 $1.50 $4.91 $4.92 
Diluted earnings per share attributable to Eastman$1.53 $1.49 $4.86 $4.89 
Shares (in millions) outstanding at end of period115.9 118.6 115.9 118.6 
Shares (in millions) used for earnings per share calculation    
Basic116.4 118.5 117.0 118.7 
Diluted117.8 119.0 118.3 119.5 
(1)Third quarter and first nine months 2024 includes inventory adjustment charges of $7 million related to the planned closure of a solvent-based resins production line at an advanced interlayers facility in North America.
(2)First nine months 2023 includes $8 million insurance proceeds, net of costs, from the previously reported operational incident at the Kingsport site as a result of a steam line failure (the "steam line incident").
(3)First nine months 2023 includes $23 million accelerated depreciation related to the closure of an acetate yarn manufacturing facility in Europe.

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Table 2A – Segment Sales Information
 Third QuarterFirst Nine Months
(Dollars in millions, unaudited)2024202320242023
Sales by Segment    
Advanced Materials$787 $746 $2,330 $2,227 
Additives & Functional Products
744 670 2,166 2,194 
Chemical Intermediates
593 527 1,631 1,630 
Fibers336 323 997 949 
Total Sales by Segment2,460 2,266 7,124 7,000 
Other
4 1 13 3 
Total Eastman Chemical Company$2,464 $2,267 $7,137 $7,003 



    
 Second Quarter
(Dollars in millions, unaudited)2024
Sales by Segment 
Advanced Materials$795 
Additives & Functional Products
718 
Chemical Intermediates
515 
Fibers330 
Total Sales by Segment2,358 
Other
5 
Total Eastman Chemical Company$2,363 
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Table 2B – Sales Revenue Change
 
Third Quarter 2024 Compared to Third Quarter 2023
 Change in Sales Revenue Due To
(Unaudited)Revenue
% Change		Volume / Product Mix EffectPrice EffectExchange
Rate
Effect
Advanced Materials5 %8  %(3) %—  %
Additives & Functional Products11  %11  %—  %—  %
Chemical Intermediates13 %7  %6  %—  %
Fibers4  %2  %2  %—  %
Total Eastman Chemical Company
9  %8  %1  %—  %
 
First Nine Months 2024 Compared to First Nine Months 2023
 Change in Sales Revenue Due To
(Unaudited)Revenue
% Change		Volume / Product Mix EffectPrice EffectExchange
Rate
Effect
Advanced Materials5 %9  %(4) %—  %
Additives & Functional Products(1)%4  %(5) %—  %
Chemical Intermediates— %5  %(5) %—  %
Fibers5 %3  %3  %(1) %
Total Eastman Chemical Company2  %6  %(4) %—  %
 
Third Quarter 2024 Compared to Second Quarter 2024
 Change in Sales Revenue Due To
(Unaudited)Revenue
% Change		Volume / Product Mix EffectPrice EffectExchange
Rate
Effect
Advanced Materials(1)%(1)%— %— %
Additives & Functional Products4  %4  %—  %—  %
Chemical Intermediates15 %13 %2 %— %
Fibers2  %2  %—  %—  %
Total Eastman Chemical Company4  %4  %—  %—  %


Table 2C – Sales by Customer Location
 Third QuarterFirst Nine Months
(Dollars in millions, unaudited)2024202320242023
Sales by Customer Location    
United States and Canada$1,032 $966 $2,995 $3,031 
Europe, Middle East, and Africa640 602 1,949 1,946 
Asia Pacific653 576 1,807 1,654 
Latin America139 123 386 372 
Total Eastman Chemical Company$2,464 $2,267 $7,137 $7,003 
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Table 3A - Segment, Other, and Company
Non-GAAP Earnings (Loss) Before Interest and Taxes Reconciliations (1)
Third QuarterFirst Nine Months
(Dollars in millions, unaudited)2024202320242023
Advanced Materials    
Earnings before interest and taxes$100 $93 $335 $278 
Asset impairments, restructuring, and other charges, net (2)
18 — 18 — 
Cost of sales impact of restructuring activities (2)
4 — 4 — 
Excluding non-core item122 93 357 278 
Additives & Functional Products
Earnings before interest and taxes127 105 359 369 
Cost of sales impact of restructuring activities (2)
3 — 3 — 
Excluding non-core item130 105 362 369 
Chemical Intermediates    
Earnings before interest and taxes43 6 81 87 
Fibers    
Earnings before interest and taxes112 109 351 280 
Asset impairments, restructuring, and other charges, net— — — 6 
Cost of sales impact of restructuring activities (3)
— — — 23 
Excluding non-core items112 109 351 309 
Other
Loss before interest and taxes(53)(57)(197)(189)
Asset impairments, restructuring, and other charges net (4)
12 — 23 16 
Steam line incident (insurance proceeds) costs, net
— — — (8)
Environmental and other costs (5)
— — 16 13 
Excluding non-core and unusual items(41)(57)(158)(168)
Total Eastman Chemical Company   
Earnings before interest and taxes329 256 929 825 
Asset impairments, restructuring, and other charges, net
30 — 41 22 
Cost of sales impact of restructuring activities
7 — 7 23 
Steam line incident (insurance proceeds) costs, net
— — — (8)
Environmental and other costs— — 16 13 
Total earnings before interest and taxes excluding non-core and unusual items$366 $256 $993 $875 
(1)See "Management's Discussion and Analysis of Financial Condition and Results of Operations" of the Quarterly Report on Form 10-Q for third quarter 2023 for description of third quarter and first nine months 2023 non-core and unusual items.
(2)Third quarter and first nine months 2024 includes asset impairment charges of $5 million, severance charges of $4 million, and site closure costs of $9 million related to the planned closure of a solvent-based resins production line at an advanced interlayers facility in North America. In addition, third quarter and first nine months 2024 includes inventory adjustment charges of $4 million and $3 million in the Advanced Materials ("AM") segment and the Additives and Functional Products ("AFP") segment, respectively, related to this planned closure.
(3)First nine months 2023 includes $23 million accelerated depreciation related to the closure of an acetate yarn manufacturing facility in Europe.
(4)Third quarter and first nine months 2024 includes charges of $6 million related to growth and profitability improvement initiatives. Additionally, third quarter and first nine months 2024 includes severance charges of $6 million and $17 million, respectively, as part of corporate cost reduction initiatives.
(5)Environmental and other costs from previously divested or non-operational sites and product lines.


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Table 3A - Segment, Other, and Company
Non-GAAP Earnings (Loss) Before Interest and Taxes Reconciliations (continued)
Third QuarterFirst Nine Months
(Dollars in millions, unaudited)2024202320242023
Company Non-GAAP Earnings Before Interest and Taxes Reconciliations by Line Items
Earnings before interest and taxes$329 $256 $929 $825 
Cost of sales
7 — 7 15 
Asset impairments, restructuring, and other charges, net
30 — 41 22 
Other (income) charges, net— — 16 13 
Total earnings before interest and taxes excluding non-core and unusual items$366 $256 $993 $875 
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Table 3A - Segment, Other, and Company
Non-GAAP Earnings (Loss) Before Interest and Taxes Reconciliations (continued) (1)

Second Quarter
(Dollars in millions, unaudited)2024
Advanced Materials 
Earnings before interest and taxes$131 
Additives & Functional Products
Earnings before interest and taxes123 
Chemical Intermediates 
Earnings before interest and taxes22 
Fibers 
Earnings before interest and taxes122 
Other
Loss before interest and taxes(61)
Environmental and other costs16 
Excluding non-core and unusual items(45)
Total Eastman Chemical Company 
Earnings before interest and taxes337 
Environmental and other costs16 
Total earnings before interest and taxes excluding non-core and unusual items$353 
Company Non-GAAP Earnings Before Interest and Taxes Reconciliations by Line Items
Earnings before interest and taxes337 
Other (income) charges, net16 
Total earnings before interest and taxes excluding non-core and unusual items$353 

(1)See "Management's Discussion and Analysis of Financial Condition and Results of Operations" of the Quarterly Report on Form 10-Q for second quarter 2024 for description of second quarter 2024 non-core and unusual items.


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Table 3B - Segment Non-GAAP Earnings (Loss) Before Interest and Taxes Margins(1)(2)
 Third QuarterFirst Nine Months
(Dollars in millions, unaudited)2024202320242023
Adjusted EBITAdjusted EBIT MarginAdjusted EBITAdjusted EBIT MarginAdjusted EBITAdjusted EBIT MarginAdjusted EBITAdjusted EBIT Margin
Advanced Materials$122 15.5 %$93 12.5 %$357 15.3 %$278 12.5 %
Additives & Functional Products
130 17.5 %105 15.7 %362 16.7 %369 16.8 %
Chemical Intermediates
43 7.3 %6 1.1 %81 5.0 %87 5.3 %
Fibers112 33.3 %109 33.7 %351 35.2 %309 32.6 %
Total segment EBIT excluding non-core and unusual items407 16.5 %313 13.8 %1,151 16.2 %1,043 14.9 %
Other
(41)(57)(158)(168)
Total EBIT excluding non-core and unusual items$366 14.9 %$256 11.3 %$993 13.9 %$875 12.5 %
 


 Second Quarter
(Dollars in millions, unaudited)2024
Adjusted EBITAdjusted EBIT Margin
Advanced Materials$131 16.5 %
Additives & Functional Products
123 17.1 %
Chemical Intermediates
22 4.3 %
Fibers122 37.0 %
Total segment EBIT excluding non-core and unusual items398 16.9 %
Other
(45)
Total EBIT excluding non-core and unusual items$353 14.9 %
(1)For identification of excluded non-core and unusual items and reconciliations to GAAP EBIT, see Table 3A.
(2)Adjusted EBIT margin is non-GAAP EBIT divided by GAAP sales. See Table 2A for sales.




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Table 4A – Non-GAAP Earnings Before Interest and Taxes, Net Earnings,
and Earnings Per Share Reconciliations
 Third Quarter 2024
Earnings Before Interest and TaxesEarnings Before Income TaxesProvision for Income TaxesEffective Income Tax RateNet Earnings
 Attributable to Eastman
(Dollars in millions, except per share amounts, unaudited)After TaxPer Diluted Share
As reported (GAAP)$329 $280 $99 35 %$180 $1.53 
Non-Core and Unusual Items: (1)
Asset impairments, restructuring, and other charges, net
30 30 8 22 0.19 
Cost of sales impact of restructuring activities7 7 2 5 0.04 
Interim adjustment to tax provision (2)
— — (59)59 0.50 
Non-GAAP (Excluding non-core and unusual items and with adjusted provision for income taxes)$366 $317 $50 16 %$266 $2.26 

 Third Quarter 2023
 Earnings Before Interest and TaxesEarnings Before Income Taxes
Provision for (Benefit from) Income Taxes
Effective Income Tax RateNet Earnings
 Attributable to Eastman
(Dollars in millions, except per share amounts, unaudited)After TaxPer Diluted Share
As reported (GAAP)$256 $199 $20 10 %$178 $1.49 
Non-Core and Unusual Items: (1)
Interim adjustment to tax provision (2)
— — 3 (3)(0.02)
Non-GAAP (Excluding non-core and unusual items and with adjusted provision for income taxes)$256 $199 $23 12 %$175 $1.47 

(1)See Table 3A for description of third quarter 2024 and 2023 non-core and unusual items excluded from non-GAAP EBIT. Provision for income taxes for non-core and unusual items is calculated using the tax rate for the jurisdiction where the gains are taxable and the expenses are deductible.
(2)The adjusted provision for income taxes for third quarter 2024 and 2023 is calculated applying the forecasted full year effective tax rate as shown in Table 4B.

8
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Table 4A – Non-GAAP Earnings Before Interest and Taxes, Net Earnings,
and Earnings Per Share Reconciliations (continued)
 First Nine Months 2024
 Earnings Before Interest and TaxesEarnings Before Income TaxesProvision for Income TaxesEffective Income Tax RateNet Earnings
 Attributable to Eastman
(Dollars in millions, except per share amounts, unaudited)After TaxPer Diluted Share
As reported (GAAP)$929 $781 $204 26 %$575 $4.86 
Non-Core or Unusual Items: (1)
Asset impairments, restructuring, and other charges, net
41 41 11 30 0.27 
Cost of sales impact of restructuring activities7 7 2 5 0.04 
Environmental and other costs16 16 3 13 0.10 
Interim adjustment to tax provision (2)
— — (89)89 0.75 
Non-GAAP (Excluding non-core and unusual items)
$993 $845 $131 16 %$712 $6.02 
 First Nine Months 2023
 Earnings Before Interest and TaxesEarnings Before Income TaxesProvision for Income TaxesEffective Income Tax RateNet Earnings
 Attributable to Eastman
(Dollars in millions, except per share amounts, unaudited)After TaxPer Diluted Share
As reported (GAAP)$825 $662 $77 12 %$584 $4.89 
Non-Core or Unusual Items: (1)
 
Asset impairments, restructuring, and other charges, net
22 22 4 18 0.14 
Cost of sales impact of restructuring activities23 23 3 20 0.17 
Steam line incident costs (insurance proceeds), net(8)(8)(2)(6)(0.05)
Environmental and other costs13 13 4 9 0.08 
Interim adjustment to tax provision (2)
— — 17 (17)(0.14)
Non-GAAP (Excluding non-core and unusual items)$875 $712 $103 15 %$608 $5.09 

(1)See Table 3A for description of first nine months 2024 and 2023 non-core and unusual items excluded from non-GAAP EBIT. Provision for income taxes for non-core and unusual items is calculated using the tax rate for the jurisdiction where the gains are taxable and the expenses are deductible.
(2)The adjusted provision for income taxes for first nine months 2024 and 2023 is calculated applying the forecasted full year effective tax rate as shown in Table 4B.
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 Second Quarter 2024
Earnings Before Interest and TaxesEarnings Before Income TaxesProvision for Income TaxesEffective Income Tax RateNet Earnings
 Attributable to Eastman
(Dollars in millions, except per share amounts, unaudited)After TaxPer Diluted Share
As reported (GAAP)$337 $287 $56 20 %$230 $1.94 
Non-Core and Unusual Items: (1)
Environmental and other costs
16 16 3 13 0.10 
Interim adjustment to tax provision (2)
— — (13)13 0.11 
Non-GAAP (Excluding non-core and unusual items and with adjusted provision for income taxes)$353 $303 $46 16 %$256 $2.15 
(1)See Table 3A for description of second quarter 2024 non-core and unusual items excluded from non-GAAP EBIT. Provision for income taxes for non-core and unusual items is calculated using the tax rate for the jurisdiction where the gains are taxable and the expenses are deductible.
(2)The adjusted provision for income taxes for second quarter 2024 was calculated applying the then forecasted full year effective tax rate.

Table 4B - Adjusted Effective Tax Rate Calculation
First Nine Months (1)
20242023
Effective tax rate26 %12 %
Tax impact of current year non-core and unusual items (2)
2 %1 %
Changes in tax contingencies and valuation allowances(1)%1 %
Forecasted full year impact of expected tax events (3)
(11)%1 %
Forecasted full year adjusted effective tax rate16 %15 %
(1)Effective tax rate percentages are rounded to the nearest whole percent. The forecasted full year effective tax rates are 15.5 percent and 14.5 percent in first nine months 2024 and 2023, respectively.
(2)Provision for income taxes for non-core and unusual items is calculated using the tax rate for the jurisdiction where the gains are taxable and the expenses are deductible.
(3)Expected future tax events may include finalization of tax returns; federal, state, and foreign examinations or the expiration of statutes of limitation; and corporate restructurings.
10
eastman_blackx300dpi.jpg
Table 5 – Statements of Cash Flows
Third QuarterFirst Nine Months
(Dollars in millions, unaudited)2024202320242023
Operating activities   
Net earnings$181 $179 $577 $585 
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization127 120 380 380 
Asset impairment charges5 — 5 — 
Benefit from deferred income taxes(39)(63)(76)(156)
Changes in operating assets and liabilities, net of effect of acquisitions and divestitures:
(Increase) decrease in trade receivables(16)35 (154)68 
(Increase) decrease in inventories16 220 (222)147 
Increase (decrease) in trade payables(53)(73)36 (363)
Pension and other postretirement contributions (in excess of) less than expenses(10)(10)(39)(39)
Variable compensation payments (in excess of) less than expenses64 24 44 73 
Other items, net121 82 196 227 
Net cash provided by operating activities 396 514 747 922 
Investing activities    
Additions to properties and equipment(120)(236)(420)(649)
Proceeds from sale of businesses— 22 — 38 
Acquisition, net of cash acquired— 2 — (74)
Additions to capitalized software(1)— (4)(4)
Other items, net19 30 22 9 
Net cash used in investing activities
(102)(182)(402)(680)
Financing activities    
Net (decrease) increase in commercial paper and other borrowings
— (204)— 73 
Proceeds from borrowings495 — 1,237 796 
Repayment of borrowings (498)— (1,039)(808)
Dividends paid to stockholders(95)(94)(285)(282)
Treasury stock purchases (100)— (200)(50)
Other items, net4 (1)14 (24)
Net cash used in financing activities(194)(299)(273)(295)
Effect of exchange rate changes on cash and cash equivalents8 (4)2 (1)
Net change in cash and cash equivalents108 29 74 (54)
Cash and cash equivalents at beginning of period514 410 548 493 
Cash and cash equivalents at end of period$622 $439 $622 $439 

Table 6 – Total Borrowings to Net Debt Reconciliations
 September 30,December 31,
(Dollars in millions, unaudited)20242023
Total borrowings$5,054 $4,846 
Less: Cash and cash equivalents622 548 
Net debt (1)
$4,432 $4,298 
(1)Includes non-cash increase of $8 million in 2024 and non-cash increase of $20 million in 2023 resulting from foreign currency exchange rates.

11
v3.24.3
Cover Page
Oct. 31, 2024
Entity Information [Line Items]  
Document Type 8-K
Document Period End Date Oct. 31, 2024
Entity Registrant Name EASTMAN CHEMICAL CO
Entity Incorporation, State or Country Code DE
Entity File Number 1-12626
Entity Tax Identification Number 62-1539359
Entity Address, Address Line One 200 South Wilcox Drive
Entity Address, City or Town Kingsport
Entity Address, State or Province TN
Entity Address, Postal Zip Code 37662
City Area Code 423
Local Phone Number 229-2000
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Entity Emerging Growth Company false
Entity Central Index Key 0000915389
Amendment Flag false
Common Stock  
Entity Information [Line Items]  
Title of 12(b) Security Common Stock, par value $0.01 per share
Trading Symbol EMN
Security Exchange Name NYSE
1.875% notes due November 2026  
Entity Information [Line Items]  
Title of 12(b) Security 1.875% Notes Due 2026
Trading Symbol EMN26
Security Exchange Name NYSE
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