0000915389false00009153892024-07-252024-07-250000915389us-gaap:CommonStockMember2024-07-252024-07-250000915389emn:A1.875notesdueNovember2026Member2024-07-252024-07-25

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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):
July 25, 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)
(423229-2000
(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 July 25, 2024, the registrant publicly released its financial results for second 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 July 25, 2024 of second 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: July 25, 2024


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Exhibit 99.01
Eastman Announces Second Quarter 2024 Financial Results

KINGSPORT, Tenn., July 25, 2024 – Eastman Chemical Company (NYSE:EMN) announced its second quarter 2024 financial results.

Delivered strong year-over-year sales volume/mix growth driven by Advanced Materials.
Drove a 300-basis-point sequential margin improvement through volume/mix growth and operating leverage.
Demonstrated continued commercial excellence by focusing on specialty product offerings and managing price-cost across the company.
Continued to ramp up sales to our customers from the Kingsport methanolysis facility, while demonstrating higher operating rates and broadening the range of hard-to-recycle feedstocks.
Delivered solid 1H24 operating cash flow and repurchased $100 million of shares in second quarter 2024.

(In millions, except per share amounts; unaudited) 2Q20242Q2023
Sales revenue$2,363$2,324
Earnings before interest and taxes ("EBIT")337323
Adjusted EBIT*353336
Earnings per diluted share 1.942.27
Adjusted earnings per diluted share*2.151.99
Net cash used in operating activities
367410
*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.

“We delivered strong second-quarter results driven by topline growth and strong sequential margin improvement,” said Mark Costa, Board Chair and CEO. “We saw modest seasonal increases in our sales volume led by durables and automotive end markets. Underlying primary demand trends remained weak. Against this backdrop, the Eastman team remains focused on commercial and operational excellence. With customer inventory destocking largely complete and end-market demand stabilizing at lower levels, we will continue to focus on controllable items and leveraging our innovation-driven growth model to deliver growth above our underlying end markets. We also continue to advance our circular platform and demonstrate our leadership position in the circular economy. We continued to successfully serve our customers, demonstrated higher operating rates, and achieved an important milestone by introducing hard-to-recycle feedstocks into the Kingsport methanolysis facility, while we also worked through start-up issues.”

Corporate Results 2Q 2024 versus 2Q 2023

Sales revenue increased 2 percent primarily due to 6 percent higher sales volume/mix partially offset by 4 percent lower selling prices.

Higher sales volume/mix was driven by the end of customer inventory destocking across most end markets. This improvement was partially offset by weakness in the building and construction end market. Lower selling prices were due to lower raw material prices across all segments.



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EBIT increased primarily due to higher sales volume/mix in Advanced Materials, partially offset by lower price-cost in Chemical Intermediates.

Segment Results 2Q 2024 versus 2Q 2023

Advanced Materials – Sales revenue increased 8 percent due to 12 percent higher sales volume/mix partially offset by 4 percent lower selling prices.

Higher sales volume/mix was the result of the end of customer inventory destocking especially in the durables and packaging end markets as well as premium interlayers product growth in the automotive end market. This growth was partially offset by lower selling prices.

EBIT increased due to higher sales volume/mix, partially offset by unfavorable price-cost.

Additives & Functional Products – Sales revenue decreased 4 percent due to 4 percent lower selling prices.

Lower selling prices were primarily due to lower raw material prices, including the impact of cost-pass-through contracts in care additives and functional amines. Sales volume/mix was unchanged as growth in coatings additives and care additives was offset by a decline in specialty fluids due to lower heat transfer fluid project fulfillments.

EBIT decreased due to lower heat transfer fluid project fulfillments.

Fibers – Sales revenue increased 2 percent due to 1 percent higher sales volume/mix and 1 percent higher selling prices.

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

EBIT increased due to favorable price-cost and higher sales volume/mix.

Chemical Intermediates – Sales revenue was flat due to 6 percent higher sales volume/mix, fully offset by 6 percent lower selling prices.

Higher sales volume/mix across the segment was driven by the end of customer inventory destocking. Higher sales volume/mix was offset by lower selling prices due to lower raw material and energy prices, particularly for acetyls and intermediates products.

EBIT decreased due to lower spreads more than offsetting higher sales volume/mix.

Cash Flow

In second quarter 2024, cash provided by operating activities was $367 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, bolt-on acquisitions, and share repurchases.

2024 Outlook

Commenting on the outlook for full-year 2024, Costa said, “We delivered solid results in the first half of the year despite a weak global economic environment. Through this year, we are benefiting from the end of destocking, as our volumes have reconnected to underlying demand. Consistent with our previous end-market expectations, we continue to see little evidence for end-market demand improvement in the second half of the year. In this context, we remain focused on leveraging our innovation-driven growth model to deliver growth above our end markets, especially


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in the circular economy. We also expect to benefit from continued pricing discipline, improved asset utilization, and disciplined cost management. We expect the benefit of earnings generated by our Kingsport methanolysis facility to be around a $50 million incremental EBITDA contribution. Taking these factors together, we expect 2024 EPS to be between $7.40 and $7.85 and for 2024 cash from operations to be approximately $1.4 billion. 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

This information 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 July 26, 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 4:30 p.m. ET on July 25, 2024. To listen via telephone, the dial-in number is +1 (833) 470-1428, passcode: 696395. 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, July 26, 2024, through 11:59 p.m. Eastern Time, Aug. 5, 2024, Toll Free at +1 (866) 813-9403, passcode 643135.

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


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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.

# # #

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
July 25, 2024

For Eastman Chemical Company Second Quarter 2024 Financial Results Release





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Table 1 – Statements of Earnings
Second QuarterFirst Six Months
(Dollars in millions, except per share amounts; unaudited)2024202320242023
Sales$2,363 $2,324 $4,673 $4,736 
Cost of sales (1)(2)
1,764 1,740 3,542 3,623 
Gross profit599 584 1,131 1,113 
Selling, general and administrative expenses180 185 371 376 
Research and development expenses60 60 119 122 
Asset impairments and restructuring charges, net— — 11 22 
Other components of post-employment (benefit) cost, net(4)(3)(9)(6)
Other (income) charges, net 26 19 39 30 
Earnings before interest and taxes337 323 600 569 
Net interest expense50 54 99 106 
Earnings before income taxes 287 269 501 463 
Provision for (benefit from) income taxes
56 (3)105 57 
Net earnings231 272 396 406 
Less: Net earnings attributable to noncontrolling interest— — 
Net earnings attributable to Eastman$230 $272 $395 $406 
Basic earnings per share attributable to Eastman$1.96 $2.28 $3.37 $3.41 
Diluted earnings per share attributable to Eastman$1.94 $2.27 $3.33 $3.39 
Shares (in millions) outstanding at end of period116.9 118.6 116.9 118.6 
Shares (in millions) used for earnings per share calculation    
Basic117.3 118.8 117.4 118.9 
Diluted118.6 119.6 118.5 119.6 
(1)First six 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").
(2)First six months 2023 includes $23 million accelerated depreciation related to the closure of an acetate yarn manufacturing facility in Europe.

1

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Table 2A – Segment Sales Information
 Second QuarterFirst Six Months
(Dollars in millions, unaudited)2024202320242023
Sales by Segment    
Advanced Materials$795 $739 $1,543 $1,481 
Additives & Functional Products
718 747 1,422 1,524 
Chemical Intermediates
515 514 1,038 1,103 
Fibers330 323 661 626 
Total Sales by Segment2,358 2,323 4,664 4,734 
Other
Total Eastman Chemical Company$2,363 $2,324 $4,673 $4,736 


 First Quarter
(Dollars in millions, unaudited)2024
Sales by Segment 
Advanced Materials$748 
Additives & Functional Products704 
Chemical Intermediates523 
Fibers331 
Total Sales by Segment2,306 
Other
Total Eastman Chemical Company$2,310 


2

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Table 2B – Sales Revenue Change
 
Second Quarter 2024 Compared to Second Quarter 2023
 Change in Sales Revenue Due To
(Unaudited)Revenue
% Change
Volume / Product Mix EffectPrice EffectExchange
Rate
Effect
Advanced Materials%12  %(4) %—  %
Additives & Functional Products(4) %—  %(4) %—  %
Chemical Intermediates— % %(6) %—  %
Fibers % % %—  %
Total Eastman Chemical Company
 % %(4) %—  %
 
First Six Months 2024 Compared to First Six Months 2023
 Change in Sales Revenue Due To
(Unaudited)Revenue
% Change
Volume / Product Mix EffectPrice EffectExchange
Rate
Effect
Advanced Materials% %(4) %(1) %
Additives & Functional Products(7)% %(8) %—  %
Chemical Intermediates(6)% %(10) %—  %
Fibers% % %—  %
Total Eastman Chemical Company(1) % %(6) %—  %
 
Second Quarter 2024 Compared to First Quarter 2024
 Change in Sales Revenue Due To
(Unaudited)Revenue
% Change
Volume / Product Mix EffectPrice EffectExchange
Rate
Effect
Advanced Materials%%(1)%— %
Additives & Functional Products % %—  %—  %
Chemical Intermediates(2)%(5)%%— %
Fibers—  %—  %—  %—  %
Total Eastman Chemical Company % %—  %—  %


Table 2C – Sales by Customer Location
 Second QuarterFirst Six Months
(Dollars in millions, unaudited)2024202320242023
Sales by Customer Location    
United States and Canada$994 $1,000 $1,963 $2,065 
Europe, Middle East, and Africa650 635 1,309 1,344 
Asia Pacific590 557 1,154 1,078 
Latin America129 132 247 249 
Total Eastman Chemical Company$2,363 $2,324 $4,673 $4,736 
3

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Table 3A - Segment, Other, and Company
Non-GAAP Earnings (Loss) Before Interest and Taxes Reconciliations (1)
Second QuarterFirst Six Months
(Dollars in millions, unaudited)2024202320242023
Advanced Materials    
Earnings before interest and taxes$131 $99 $235 $185 
Additives & Functional Products
Earnings before interest and taxes123 140 232 264 
Chemical Intermediates    
Earnings before interest and taxes22 39 38 81 
Fibers    
Earnings before interest and taxes122 106 239 171 
Asset impairments and restructuring charges, net
— — — 
Accelerated depreciation
— — — 23 
Excluding non-core items122 106 239 200 
Other
Loss before interest and taxes(61)(61)(144)(132)
Asset impairments and restructuring charges, net (2)
— — 11 16 
Steam line incident (insurance proceeds) costs, net
— — — (8)
Environmental and other costs (3)
16 13 16 13 
Excluding non-core and unusual items(45)(48)(117)(111)
Total Eastman Chemical Company   
Earnings before interest and taxes337 323 600 569 
Asset impairments and restructuring charges, net— — 11 22 
Steam line incident (insurance proceeds) costs, net
— — — (8)
Environmental and other costs16 13 16 13 
Accelerated depreciation— — — 23 
Total earnings before interest and taxes excluding non-core and unusual items$353 $336 $627 $619 
Company Non-GAAP Earnings Before Interest and Taxes Reconciliations by Line Items
Earnings before interest and taxes$337 $323 $600 $569 
Cost of sales
— — — 15 
Asset impairments and restructuring charges, net— — 11 22 
Other (income) charges, net16 13 16 13 
Total earnings before interest and taxes excluding non-core and unusual items$353 $336 $627 $619 
(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 2023 for description of second quarter and first six months 2023 non-core and unusual items.
(2)Severance charges as part of fourth quarter 2023 cost reduction initiatives.
(3)Environmental and other costs from previously divested or non-operational sites and product lines.
4

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Table 3A - Segment, Other, and Company
Non-GAAP Earnings (Loss) Before Interest and Taxes Reconciliations (continued) (1)
First Quarter
(Dollars in millions, unaudited)2024
Advanced Materials 
Earnings before interest and taxes$104 
Additives & Functional Products
Earnings before interest and taxes109 
Chemical Intermediates 
Earnings before interest and taxes16 
Fibers 
Earnings before interest and taxes117 
Other
Loss before interest and taxes(83)
Asset impairments and restructuring charges, net
11 
Excluding non-core and unusual items(72)
Total Eastman Chemical Company 
Earnings before interest and taxes263 
Asset impairments and restructuring charges, net11 
Total earnings before interest and taxes excluding non-core and unusual items$274 
Company Non-GAAP Earnings Before Interest and Taxes Reconciliations by Line Items
Earnings before interest and taxes263 
Asset impairments and restructuring charges, net11 
Total earnings before interest and taxes excluding non-core and unusual items$274 

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


5

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Table 3B - Segment Non-GAAP Earnings (Loss) Before Interest and Taxes Margins(1)(2)
 Second QuarterFirst Six Months
(Dollars in millions, unaudited)2024202320242023
Adjusted EBITAdjusted EBIT MarginAdjusted EBITAdjusted EBIT MarginAdjusted EBITAdjusted EBIT MarginAdjusted EBITAdjusted EBIT Margin
Advanced Materials$131 16.5 %$99 13.4 %$235 15.2 %$185 12.5 %
Additives & Functional Products
123 17.1 %140 18.7 %232 16.3 %264 17.3 %
Chemical Intermediates
22 4.3 %39 7.6 %38 3.7 %81 7.3 %
Fibers122 37.0 %106 32.8 %239 36.2 %200 31.9 %
Total segment EBIT excluding non-core and unusual items398 16.9 %384 16.5 %744 16.0 %730 15.4 %
Other
(45)(48)(117)(111)
Total EBIT excluding non-core and unusual items$353 14.9 %$336 14.5 %$627 13.4 %$619 13.1 %
 


 First Quarter
(Dollars in millions, unaudited)2024
Adjusted EBITAdjusted EBIT Margin
Advanced Materials$104 13.9 %
Additives & Functional Products
109 15.5 %
Chemical Intermediates
16 3.1 %
Fibers117 35.3 %
Total segment EBIT excluding non-core and unusual items346 15.0 %
Other
(72)
Total EBIT excluding non-core and unusual items$274 11.9 %
(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.




6

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Table 4A – Non-GAAP Earnings Before Interest and Taxes, Net Earnings,
and Earnings Per Share Reconciliations
 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 costs16 16 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 

 Second 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)$323 $269 $(3)(1)%$272 $2.27 
Non-Core and Unusual Items: (1)
Environmental and other costs13 13 0.08 
Adjustments from tax law changes (3)
— — 23 (23)(0.19)
Interim adjustment to tax provision (2)
— — 20 (20)(0.17)
Non-GAAP (Excluding non-core and unusual items and with adjusted provision for income taxes)$336 $282 $44 16 %$238 $1.99 

(1)See Table 3A for description of second 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 second quarter 2024 and 2023 is calculated applying the forecasted full year effective tax rate as shown in Table 4B.
(3)Second quarter and first six months 2023 included a decrease to the provision due to state tax law changes that were enacted in second quarter 2023 that extend the carryforward period to utilize existing state credits. Additionally, an increase in first six months 2023 was recognized as a result of state guidance issued in first quarter 2023 related to the 2017 Tax Cuts and Jobs Act (the "Tax Reform Act").

7

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Table 4A – Non-GAAP Earnings Before Interest and Taxes, Net Earnings,
and Earnings Per Share Reconciliations (continued)
 First Six 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)$600 $501 $105 21 %$395 $3.33 
Non-Core or Unusual Items: (1)
Asset impairments and restructuring charges, net11 11 0.07 
Environmental and other costs16 16 13 0.10 
Interim adjustment to tax provision (2)
— — (30)30 0.26 
Non-GAAP (Excluding non-core and unusual items)
$627 $528 $81 16 %$446 $3.76 
 First Six 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)$569 $463 $57 12 %$406 $3.39 
Non-Core or Unusual Items: (1)
 
Asset impairments and restructuring charges, net22 22 18 0.14 
Accelerated depreciation23 23 20 0.17 
Steam line incident costs (insurance proceeds), net(8)(8)(2)(6)(0.05)
Environmental and other costs13 13 0.08 
Interim adjustment to tax provision (2)
— — 14 (14)(0.11)
Non-GAAP (Excluding non-core and unusual items)$619 $513 $80 16 %$433 $3.62 

(1)See Table 3A for description of first six month 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 six months 2024 and 2023 is calculated applying the forecasted full year effective tax rate as shown in Table 4B.
8

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 First 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)$263 $214 $49 23 %$165 $1.39 
Non-Core and Unusual Items: (1)
Asset impairments and restructuring charges, net11 11 0.07 
Interim adjustment to tax provision (2)
— — (17)17 0.15 
Non-GAAP (Excluding non-core and unusual items and with adjusted provision for income taxes)$274 $225 $35 16 %$190 $1.61 
(1)See Table 3A for description of first 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 first quarter 2024 was calculated applying the then forecasted full year effective tax rate.

Table 4B - Adjusted Effective Tax Rate Calculation
First Six Months (1)
20242023
Effective tax rate21 %12 %
Tax impact of current year non-core and unusual items (2)
%%
Changes in tax contingencies and valuation allowances(1)%%
Forecasted full year impact of expected tax events(5)%— %
Forecasted full year adjusted effective tax rate16 %16 %
(1)Effective tax rate percentages are rounded to the nearest whole percent. The forecasted full year effective tax rates are 15.5 percent in both first six months 2024 and 2023.
(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.
9

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Table 5 – Statements of Cash Flows
Second QuarterFirst Six Months
(Dollars in millions, unaudited)2024202320242023
Operating activities   
Net earnings$231 $272 $396 $406 
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization126 119 253 260 
Benefit from deferred income taxes(20)(86)(37)(93)
Changes in operating assets and liabilities, net of effect of acquisitions and divestitures:
(Increase) decrease in trade receivables(33)124 (138)33 
(Increase) decrease in inventories(138)(29)(238)(73)
Increase (decrease) in trade payables40 (158)89 (290)
Pension and other postretirement contributions (in excess of) less than expenses(10)(10)(29)(29)
Variable compensation payments (in excess of) less than expenses58 65 (20)49 
Other items, net113 113 75 145 
Net cash provided by operating activities 367 410 351 408 
Investing activities    
Additions to properties and equipment(115)(239)(300)(413)
Proceeds from sale of businesses— — — 16 
Acquisition, net of cash acquired— (3)— (76)
Additions to capitalized software(2)(2)(3)(4)
Other items, net(4)(2)(21)
Net cash used in investing activities
(121)(246)(300)(498)
Financing activities    
Net increase in commercial paper and other borrowings— 603 — 277 
Proceeds from borrowings— — 742 796 
Repayment of borrowings (43)(808)(541)(808)
Dividends paid to stockholders(95)(94)(190)(188)
Treasury stock purchases (100)(50)(100)(50)
Other items, net11 (4)10 (23)
Net cash (used in) provided by financing activities(227)(353)(79)
Effect of exchange rate changes on cash and cash equivalents(4)— (6)
Net change in cash and cash equivalents15 (189)(34)(83)
Cash and cash equivalents at beginning of period499 599 548 493 
Cash and cash equivalents at end of period$514 $410 $514 $410 

Table 6 – Total Borrowings to Net Debt Reconciliations
 June 30,December 31,
(Dollars in millions, unaudited)20242023
Total borrowings$5,033 $4,846 
Less: Cash and cash equivalents514 548 
Net debt (1)
$4,519 $4,298 

(1)Includes non-cash decrease of $17 million in 2024 and non-cash increase of $20 million in 2023 resulting from foreign currency exchange rates.

10
v3.24.2
Cover Page
Jul. 25, 2024
Entity Information [Line Items]  
Document Type 8-K
Document Period End Date Jul. 25, 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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