Delaware
|
1-12626
|
62-1539359
|
||
(State or Other Jurisdiction
of Incorporation)
|
(Commission File Number)
|
(IRS Employer
Identification No.)
|
||
200 South Wilcox Drive, Kingsport, TN
|
37662
|
|
(Address of Principal Executive Offices)
|
(Zip Code)
|
o
|
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
|
||
o
|
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
|
||
o
|
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
|
||
o
|
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
|
EASTMAN CHEMICAL COMPANY - EMN
|
Item 8.01.
|
Other Events
|
Item 9.01.
|
Financial Statements and Exhibits
|
EASTMAN CHEMICAL COMPANY - EMN
|
Eastman Chemical Company
|
||
|
By: _/s/ Scott V. King_______________
Scott V. King
Vice President, Controller and Chief Accounting Officer
|
|
Date: March 6, 2012
|
(Dollars in millions, except per share amounts; unaudited)
|
As Previously
Reported (Before Accounting Change)
|
Effect of Accounting Change
|
As Adjusted (After Accounting Change)
|
|||||||||
Sales
|
$ | 7,178 | $ | -- | $ | 7,178 | ||||||
Cost of sales (1)
|
5,538 | 71 | 5,609 | |||||||||
Gross profit
|
1,640 | (71 | ) | 1,569 | ||||||||
Selling, general and administrative expenses (1)
|
469 | 12 | 481 | |||||||||
Research and development expenses (1)
|
158 | 1 | 159 | |||||||||
Asset impairments and restructuring charges (gains), net
|
(8 | ) | -- | (8 | ) | |||||||
Operating earnings
|
1,021 | (84 | ) | 937 | ||||||||
Net interest expense
|
76 | -- | 76 | |||||||||
Other charges (income), net
|
(19 | ) | -- | (19 | ) | |||||||
Earnings from continuing operations before income taxes
|
964 | (84 | ) | 880 | ||||||||
Provision for income taxes from continuing operations
|
307 | (33 | ) | 274 | ||||||||
Earnings from continuing operations
|
$ | 657 | $ | (51 | ) | $ | 606 | |||||
Earnings from discontinued operations, net of tax
|
8 | 1 | 9 | |||||||||
Gain from disposal of discontinued operations, net of tax | 31 | -- | 31 | |||||||||
Net earnings
|
$ | 696 | $ | (50 | ) | $ | 646 | |||||
Basic earnings per share
|
||||||||||||
Earnings from continuing operations
|
$ | 4.70 | $ | (0.36 | ) | $ | 4.34 | |||||
Earnings from discontinued operations
|
0.28 | 0.01 | 0.29 | |||||||||
Basic earnings per share
|
$ | 4.98 | $ | (0.35 | ) | $ | 4.63 | |||||
Diluted earnings per share
|
||||||||||||
Earnings from continuing operations
|
$ | 4.59 | $ | (0.35 | ) | $ | 4.24 | |||||
Earnings from discontinued operations
|
0.27 | 0.01 | 0.28 | |||||||||
Diluted earnings per share
|
$ | 4.86 | $ | (0.34 | ) | $ | 4.52 | |||||
Shares (in millions) outstanding at end of period
|
137.0 | 137.0 | ||||||||||
Shares (in millions) used for earnings per share calculation
|
||||||||||||
Basic
|
139.7 | 139.7 | ||||||||||
Diluted
|
143.1 | 143.1 | ||||||||||
(1)
|
Includes mark-to-market adjustment for pension and other postretirement benefit plans actuarial net losses of $144 million.
|
(Dollars in millions, except per share amounts; unaudited)
|
As Previously
Reported (Before Accounting Change)
|
Effect of Accounting Change
|
As Adjusted (After Accounting Change)
|
|||||||||
Sales
|
$ | 5,842 | $ | -- | $ | 5,842 | ||||||
Cost of sales (1)
|
4,368 | 15 | 4,383 | |||||||||
Gross profit
|
1,474 | (15 | ) | 1,459 | ||||||||
Selling, general and administrative expenses (1)
|
431 | 3 | 434 | |||||||||
Research and development expenses (1)
|
152 | -- | 152 | |||||||||
Asset impairments and restructuring charges, net
|
29 | -- | 29 | |||||||||
Operating earnings
|
862 | (18 | ) | 844 | ||||||||
Net interest expense
|
99 | -- | 99 | |||||||||
Early debt extinguishment costs
|
115 | -- | 115 | |||||||||
Other charges (income), net
|
12 | -- | 12 | |||||||||
Earnings from continuing operations before income taxes
|
636 | (18 | ) | 618 | ||||||||
Provision for income taxes from continuing operations
|
211 | (9 | ) | 202 | ||||||||
Earnings from continuing operations
|
$ | 425 | $ | (9 | ) | $ | 416 | |||||
Earnings from discontinued operations, net of tax
|
13 | (4 | ) | 9 | ||||||||
Net earnings
|
$ | 438 | $ | (13 | ) | $ | 425 | |||||
Basic earnings per share
|
||||||||||||
Earnings from continuing operations
|
$ | 2.95 | $ | (0.07 | ) | $ | 2.88 | |||||
Earnings from discontinued operations
|
0.09 | (0.02 | ) | 0.07 | ||||||||
Basic earnings per share
|
$ | 3.04 | $ | (0.09 | ) | $ | 2.95 | |||||
Diluted earnings per share
|
||||||||||||
Earnings from continuing operations
|
$ | 2.88 | $ | (0.07 | ) | $ | 2.81 | |||||
Earnings from discontinued operations
|
0.08 | (0.01 | ) | 0.07 | ||||||||
Diluted earnings per share
|
$ | 2.96 | $ | (0.08 | ) | $ | 2.88 | |||||
Shares (in millions) outstanding at end of period
|
141.5 | 141.5 | ||||||||||
Shares (in millions) used for earnings per share calculation
|
||||||||||||
Basic
|
144.2 | 144.2 | ||||||||||
Diluted
|
147.8 | 147.8 | ||||||||||
(1)
|
Includes mark-to-market adjustment for pension and other postretirement benefit plans actuarial net losses of $53 million.
|
(Dollars in millions, except per share amounts; unaudited)
|
As Previously
Reported (Before Accounting Change)
|
Effect of Accounting Change
|
As Adjusted (After Accounting Change)
|
|||||||||
Sales
|
$ | 4,396 | $ | -- | $ | 4,396 | ||||||
Cost of sales (1)
|
3,364 | 56 | 3,420 | |||||||||
Gross profit
|
1,032 | (56 | ) | 976 | ||||||||
Selling, general and administrative expenses (1)
|
367 | 12 | 379 | |||||||||
Research and development expenses (1)
|
124 | 1 | 125 | |||||||||
Asset impairments and restructuring charges (gains), net
|
196 | -- | 196 | |||||||||
Operating earnings
|
345 | (69 | ) | 276 | ||||||||
Net interest expense
|
78 | -- | 78 | |||||||||
Other charges (income), net
|
13 | -- | 13 | |||||||||
Earnings from continuing operations before income taxes
|
254 | (69 | ) | 185 | ||||||||
Provision for income taxes from continuing operations
|
100 | (26 | ) | 74 | ||||||||
Earnings from continuing operations
|
$ | 154 | $ | (43 | ) | $ | 111 | |||||
Earnings from discontinued operations, net of tax
|
(18 | ) | (4 | ) | (22 | ) | ||||||
Net earnings
|
$ | 136 | $ | (47 | ) | $ | 89 | |||||
Basic earnings per share
|
||||||||||||
Earnings from continuing operations
|
$ | 1.06 | $ | (0.29 | ) | $ | 0.77 | |||||
Earnings from discontinued operations
|
(0.12 | ) | (0.04 | ) | (0.16 | ) | ||||||
Basic earnings per share
|
$ | 0.94 | $ | (0.33 | ) | $ | 0.61 | |||||
Diluted earnings per share
|
||||||||||||
Earnings from continuing operations
|
$ | 1.05 | $ | (0.29 | ) | $ | 0.76 | |||||
Earnings from discontinued operations
|
(0.12 | ) | (0.03 | ) | (0.15 | ) | ||||||
Diluted earnings per share
|
$ | 0.93 | $ | (0.32 | ) | $ | 0.61 | |||||
Shares (in millions) outstanding at end of period
|
144.9 | 144.9 | ||||||||||
Shares (in millions) used for earnings per share calculation
|
||||||||||||
Basic
|
145.0 | 145.0 | ||||||||||
Diluted
|
146.8 | 146.8 | ||||||||||
(1)
|
Includes mark-to-market adjustment for pension and other postretirement benefit plans actuarial net losses of $91 million.
|
For year ended December 31, 2011
|
||||||||||||
(Dollars in millions, unaudited)
|
As Previously
Reported (Before Accounting Change)
|
Effect of Accounting Change
|
As Adjusted (After Accounting Change)
|
|||||||||
Operating Earnings by Segment and Items
|
||||||||||||
Coatings, Adhesives, Specialty Polymers, and Inks
|
||||||||||||
Operating earnings
|
$ | 331 | $ | 23 | $ | 354 | ||||||
Fibers
|
||||||||||||
Operating earnings
|
346 | 19 | 365 | |||||||||
Performance Chemicals and Intermediates
|
||||||||||||
Operating earnings
|
289 | 26 | 315 | |||||||||
Asset impairments and restructuring charges (gains), net (1)
|
7 | -- | 7 | |||||||||
Operating earnings excluding item
|
296 | 26 | 322 | |||||||||
Specialty Plastics
|
||||||||||||
Operating earnings
|
105 | 20 | 125 | |||||||||
Other (2)
|
||||||||||||
Operating loss
|
(50 | ) | (172 | ) | (222 | ) | ||||||
Asset impairments and restructuring charges (gains), net (3)
|
(15 | ) | -- | (15 | ) | |||||||
Mark-to-market pension and other postretirement benefits adjustment (4)
|
-- | 144 | 144 | |||||||||
Operating loss excluding items
|
(65 | ) | (28 | ) | (93 | ) | ||||||
Total Eastman Chemical Company
|
||||||||||||
Total operating earnings
|
$ | 1,021 | $ | (84 | ) | $ | 937 | |||||
Total asset impairments and restructuring charges (gains), net
|
(8 | ) | -- | (8 | ) | |||||||
Mark-to-market pension and other postretirement benefits adjustment
|
-- | 144 | 144 | |||||||||
Total operating earnings excluding items
|
$ | 1,013 | $ | 60 | $ | 1,073 |
(1)
|
Consists of $7 million in restructuring charges primarily for severance associated with the acquisition and integration of Sterling Chemicals, Inc.
|
(2)
|
Research and development and other expenses, asset impairments and restructuring charges (gains), net, and mark-to-market adjustments not identifiable to an operating segment are not included in segment operating results for the period presented and are shown as "other" operating loss.
|
(3)
|
Consists of $15 million gain from the sale of the previously impaired methanol and ammonia assets related to the terminated Beaumont, Texas industrial gasification project.
|
(4)
|
Mark-to-market adjustment for pension and other postretirement benefit plans actuarial net losses.
|
For year ended December 31, 2010
|
||||||||||||
(Dollars in millions, unaudited)
|
As Previously
Reported (Before Accounting Change)
|
Effect of Accounting Change
|
As Adjusted (After Accounting Change)
|
|||||||||
Operating Earnings by Segment and Items (1)
|
||||||||||||
Coatings, Adhesives, Specialty Polymers, and Inks
|
||||||||||||
Operating earnings
|
$ | 293 | $ | 19 | $ | 312 | ||||||
Asset impairments and restructuring charges, net (2)
|
6 | -- | 6 | |||||||||
Operating earnings excluding item
|
299 | 19 | 318 | |||||||||
Fibers
|
||||||||||||
Operating earnings
|
323 | 16 | 339 | |||||||||
Asset impairments and restructuring charges, net (2)
|
3 | -- | 3 | |||||||||
Operating earnings excluding item
|
326 | 16 | 342 | |||||||||
Performance Chemicals and Intermediates
|
||||||||||||
Operating earnings
|
224 | 20 | 244 | |||||||||
Asset impairments and restructuring charges, net (2)
|
7 | -- | 7 | |||||||||
Operating earnings excluding item
|
231 | 20 | 251 | |||||||||
Specialty Plastics
|
||||||||||||
Operating earnings
|
88 | 15 | 103 | |||||||||
Asset impairments and restructuring charges, net (2)
|
5 | -- | 5 | |||||||||
Operating earnings excluding item
|
93 | 15 | 108 | |||||||||
Other (3)
|
||||||||||||
Operating loss
|
(66 | ) | (88 | ) | (154 | ) | ||||||
Asset impairments and restructuring charges, net (4)
|
8 | -- | 8 | |||||||||
Mark-to-market pension and other postretirement benefits adjustment (5)
|
-- | 53 | 53 | |||||||||
Operating loss excluding items
|
(58 | ) | (35 | ) | (93 | ) | ||||||
Total Eastman Chemical Company
|
||||||||||||
Total operating earnings
|
$ | 862 | $ | (18 | ) | $ | 844 | |||||
Total asset impairments and restructuring charges, net
|
29 | -- | 29 | |||||||||
Mark-to-market pension and other postretirement benefits adjustment
|
-- | 53 | 53 | |||||||||
Total operating earnings excluding items
|
$ | 891 | $ | 35 | $ | 926 |
(1)
|
Includes allocated costs not included in discontinued operations, some of which may remain and could be reallocated to the remaining segments.
|
(2)
|
Includes restructuring charges primarily for severance.
|
(3)
|
Research and development and other expenses, asset impairments and restructuring charges, net, and mark-to-market adjustments not identifiable to an operating segment are not included in segment operating results for the period presented and are shown as "other" operating loss.
|
(4)
|
Consists of $8 million of intangible asset impairment charges resulting from an environmental regulatory change during the fourth quarter impacting the fair value of air emission credits remaining from the previously discontinued Beaumont, Texas, gasification project.
|
(5)
|
Mark-to-market adjustment for pension and other postretirement benefit plans actuarial net losses.
|
For year ended December 31, 2009
|
||||||||||||
(Dollars in millions, unaudited)
|
As Previously
Reported (Before Accounting Change)
|
Effect of Accounting Change
|
As Adjusted (After Accounting Change)
|
|||||||||
Operating Earnings by Segment and Items (1)
|
||||||||||||
Coatings, Adhesives, Specialty Polymers, and Inks
|
||||||||||||
Operating earnings
|
$ | 221 | $ | 18 | $ | 239 | ||||||
Asset impairments and restructuring charges (gains), net (2)
|
3 | -- | 3 | |||||||||
Operating earnings excluding item
|
224 | 18 | 242 | |||||||||
Fibers
|
||||||||||||
Operating earnings
|
292 | 16 | 308 | |||||||||
Asset impairments and restructuring charges (gains), net (2)
|
4 | -- | 4 | |||||||||
Operating earnings excluding item
|
296 | 16 | 312 | |||||||||
Performance Chemicals and Intermediates
|
||||||||||||
Operating earnings
|
41 | 18 | 59 | |||||||||
Asset impairments and restructuring charges (gains), net (2)
|
6 | -- | 6 | |||||||||
Operating earnings excluding item
|
47 | 18 | 65 | |||||||||
Specialty Plastics
|
||||||||||||
Operating earnings
|
9 | 15 | 24 | |||||||||
Asset impairments and restructuring charges (gains), net (2)
|
4 | -- | 4 | |||||||||
Operating earnings excluding item
|
13 | 15 | 28 | |||||||||
Other (3)
|
||||||||||||
Operating loss
|
(218 | ) | (136 | ) | (354 | ) | ||||||
Asset impairments and restructuring charges (gains), net (4)
|
179 | -- | 179 | |||||||||
Mark-to-market pension and other postretirement benefits adjustment (5)
|
-- | 91 | 91 | |||||||||
Operating loss excluding items
|
(39 | ) | (45 | ) | (84 | ) | ||||||
Total Eastman Chemical Company
|
||||||||||||
Total operating earnings
|
$ | 345 | $ | (69 | ) | $ | 276 | |||||
Total asset impairments and restructuring charges (gains), net
|
196 | -- | 196 | |||||||||
Mark-to-market pension and other postretirement benefits adjustment
|
-- | 91 | 91 | |||||||||
Total operating earnings excluding items
|
$ | 541 | $ | 22 | $ | 563 |
(1)
|
Includes allocated costs not included in discontinued operations, some of which may remain and could be reallocated to the remaining segments.
|
(2)
|
Includes severance costs for a reduction in force in first quarter.
|
(3)
|
Research and development and other expenses, asset impairments and restructuring charges (gains), net, and mark-to-market adjustments not identifiable to an operating segment are not included in segment operating results for the period presented and are shown as "other" operating loss.
|
(4)
|
Includes asset impairments and restructuring charges, net primarily for the Beaumont, Texas industrial gasification project discontinued in fourth quarter.
|
(5)
|
Mark-to-market adjustment for pension and other postretirement benefit plans actuarial net losses.
|
For the year ended December 31, 2011
|
||||||||||||||||
Earnings from Continuing Operations
|
||||||||||||||||
(Dollars in millions, except per share amounts; unaudited) |
Operating
Earnings
|
Before Tax
|
After Tax
|
Per Diluted Share
|
||||||||||||
As previously reported (before accounting change)
|
$ | 1,021 | $ | 964 | $ | 657 | $ | 4.59 | ||||||||
Certain Item:
|
||||||||||||||||
Asset impairments and restructuring charges (gains), net (1)
|
(8 | ) | (8 | ) | (5 | ) | (0.03 | ) | ||||||||
Excluding item
|
$ | 1,013 | $ | 956 | $ | 652 | $ | 4.56 | ||||||||
As adjusted (after accounting change) - adjusted for pension methodology change
|
$ | 937 | $ | 880 | $ | 606 | $ | 4.24 | ||||||||
Certain Items:
|
||||||||||||||||
Asset impairments and restructuring charges (gains), net (1)
|
(8 | ) | (8 | ) | (5 | ) | (0.03 | ) | ||||||||
Mark-to-market pension and other postretirement benefits adjustment (2)
|
144 | 144 | 88 | 0.60 | ||||||||||||
Excluding items – as adjusted (after accounting change)
|
$ | 1,073 | $ | 1,016 | $ | 689 | $ | 4.81 |
(1)
|
Consists of $15 million gain from the sale of the previously impaired methanol and ammonia assets related to the terminated Beaumont, Texas industrial gasification project in second quarter, offset by $7 million in restructuring charges primarily for severance associated with the acquisition and integration of Sterling Chemicals, Inc. in third quarter.
|
(2)
|
Mark-to-market adjustment for pension and other postretirement benefit plans actuarial net losses.
|
For the year ended December 31, 2010
|
||||||||||||||||
Earnings from Continuing Operations
|
||||||||||||||||
(Dollars in millions, except per share amounts; unaudited)
|
Operating
Earnings
|
Before Tax
|
After Tax
|
Per Diluted Share
|
||||||||||||
As previously reported (before accounting change)
|
$ | 862 | $ | 636 | $ | 425 | $ | 2.88 | ||||||||
Certain Items:
|
||||||||||||||||
Asset impairments and restructuring charges, net (1)
|
29 | 29 | 18 | 0.12 | ||||||||||||
Early debt extinguishment costs (2)
|
-- | 115 | 71 | 0.48 | ||||||||||||
Excluding items
|
$ | 891 | $ | 780 | $ | 514 | $ | 3.48 | ||||||||
As adjusted (after accounting change) - adjusted for pension methodology change
|
$ | 844 | $ | 618 | $ | 416 | $ | 2.81 | ||||||||
Certain Items:
|
||||||||||||||||
Asset impairments and restructuring charges, net (1)
|
29 | 29 | 18 | 0.12 | ||||||||||||
Early debt extinguishment costs (2)
|
-- | 115 | 71 | 0.48 | ||||||||||||
Mark-to-market pension and other postretirement benefits adjustment (3)
|
53 | 53 | 31 | 0.22 | ||||||||||||
Excluding items – as adjusted (after accounting change)
|
$ | 926 | $ | 815 | $ | 536 | $ | 3.63 |
(1)
|
Includes restructuring charges primarily for severance and $8 million of intangible asset impairment charges resulting from an environmental regulatory change during the fourth quarter impacting the fair value of air emission credits remaining from the previously discontinued Beaumont, Texas, gasification project.
|
(2)
|
During fourth quarter, the Company completed the early repayment of $500 million aggregate principal amount of outstanding debt securities, resulting in a pre-tax charge of $115 million, net.
|
(3)
|
Mark-to-market adjustment for pension and other postretirement benefit plans actuarial net losses.
|
For the year ended December 31, 2009
|
||||||||||||||||
Earnings from Continuing Operations
|
||||||||||||||||
(Dollars in millions, except per share amounts; unaudited) |
Operating
Earnings
|
Before Tax
|
After Tax
|
Per Diluted Share
|
||||||||||||
As previously reported (before accounting change)
|
$ | 345 | $ | 254 | $ | 154 | $ | 1.05 | ||||||||
Certain Item:
|
||||||||||||||||
Asset impairments and restructuring charges (gains), net (1)
|
196 | 196 | 127 | 0.86 | ||||||||||||
Excluding item
|
$ | 541 | $ | 450 | $ | 281 | $ | 1.91 | ||||||||
As adjusted (after accounting change) - adjusted for pension methodology change
|
$ | 276 | $ | 185 | $ | 111 | $ | 0.76 | ||||||||
Certain Items:
|
||||||||||||||||
Asset impairments and restructuring charges (gains), net (1)
|
196 | 196 | 127 | 0.86 | ||||||||||||
Mark-to-market pension and other postretirement benefits adjustment (2)
|
91 | 91 | 56 | 0.39 | ||||||||||||
Excluding items – as adjusted (after accounting change)
|
$ | 563 | $ | 472 | $ | 294 | $ | 2.01 |
(1)
|
Includes severance costs for a reduction in force in first quarter and asset impairments and restructuring charges, net, of $179 million primarily for the Beaumont, Texas industrial gasification project discontinued in fourth quarter.
|
(2)
|
Mark-to-market adjustment for pension and other postretirement benefit plans actuarial net losses.
|
First Quarter 2011
|
||||||||||||||||
Earnings from Continuing Operations
|
||||||||||||||||
(Dollars in millions, except per share amounts; unaudited)
|
Operating
Earnings
|
Before Tax
|
After Tax
|
Per Diluted Share
|
||||||||||||
As previously reported (before accounting change)
|
$ | 284 | $ | 271 | $ | 182 | $ | 1.26 | ||||||||
As adjusted (after accounting change) - adjusted for pension methodology change
|
$ | $314 | $ | 301 | $ | 201 | $ | 1.39 | ||||||||
Certain Item:
|
||||||||||||||||
Mark-to-market pension and other postretirement benefits adjustment (1)
|
(15 | ) | (15 | ) | (10 | ) | (0.07 | ) | ||||||||
Excluding item – as adjusted (after accounting change)
|
$ | $299 | $ | $286 | $ | $191 | $ | $1.32 |
(1)
|
Mark-to-market adjustment due to the remeasurement of an other postretirement benefit plan curtailment related to the Performance Polymers divestiture.
|
Second Quarter 2011
|
||||||||||||||||
Earnings from Continuing Operations
|
||||||||||||||||
(Dollars in millions, except per share amounts; unaudited)
|
Operating
Earnings
|
Before Tax
|
After Tax
|
Per Diluted Share
|
||||||||||||
As previously reported (before accounting change)
|
$ | 318 | $ | 306 | $ | 210 | $ | 1.45 | ||||||||
Certain Item:
|
||||||||||||||||
Asset impairments and restructuring charges (gains), net (1)
|
(15 | ) | (15 | ) | (10 | ) | (0.07 | ) | ||||||||
Excluding item
|
$ | 303 | $ | 291 | $ | 200 | $ | 1.38 | ||||||||
As adjusted (after accounting change) - adjusted for pension methodology change
|
$ | 333 | $ | 320 | $ | 219 | $ | 1.51 | ||||||||
Certain Item:
|
||||||||||||||||
Asset impairments and restructuring charges (gains), net (1)
|
(15 | ) | (15 | ) | (10 | ) | (0.07 | ) | ||||||||
Excluding item – as adjusted (after accounting change)
|
$ | 318 | $ | 305 | $ | 209 | $ | 1.44 |
(1)
|
Includes $15 million gain from the sale of the previously impaired methanol and ammonia assets related to the terminated Beaumont, Texas industrial gasification project.
|
Third Quarter 2011
|
||||||||||||||||
Earnings from Continuing Operations
|
||||||||||||||||
(Dollars in millions, except per share amounts; unaudited)
|
Operating
Earnings
|
Before Tax
|
After Tax
|
Per Diluted Share
|
||||||||||||
As previously reported (before accounting change)
|
$ | 256 | $ | 238 | $ | 165 | $ | 1.16 | ||||||||
Certain Item:
|
||||||||||||||||
Asset impairments and restructuring charges (gains), net (1)
|
7 | 7 | 5 | 0.03 | ||||||||||||
Excluding item
|
$ | 263 | $ | 245 | $ | 170 | $ | 1.19 | ||||||||
As adjusted (after accounting change) - adjusted for pension methodology change
|
$ | 271 | $ | 254 | $ | 174 | $ | 1.22 | ||||||||
Certain Items:
|
||||||||||||||||
Asset impairments and restructuring charges (gains), net (1)
|
7 | 7 | 5 | 0.04 | ||||||||||||
Excluding items – as adjusted (after accounting change)
|
$ | 278 | $ | 261 | $ | 179 | $ | 1.26 |
(1)
|
Includes $7 million in restructuring charges primarily for severance associated with the acquisition and integration of Sterling Chemicals, Inc.
|
Fourth Quarter 2011
|
||||||||||||||||
Earnings from Continuing Operations
|
||||||||||||||||
(Dollars in millions, except per share amounts; unaudited)
|
Operating
Earnings
|
Before Tax
|
After Tax
|
Per Diluted Share
|
||||||||||||
As previously reported (before accounting change)
|
$ | 163 | $ | 149 | $ | 100 | $ | 0.71 | ||||||||
As adjusted (after accounting change) - adjusted for pension methodology change
|
$ | 19 | $ | 5 | $ | 12 | $ | 0.09 | ||||||||
Certain Item:
|
||||||||||||||||
Mark-to-market pension and other postretirement benefits adjustment (1)
|
159 | 159 | 98 | 0.69 | ||||||||||||
Excluding item – as adjusted (after accounting change)
|
$ | 178 | $ | 164 | $ | 110 | $ | 0.78 |
(1)
|
Mark-to-market adjustment for pension and other postretirement benefit plans actuarial net losses.
|
As Previously Reported
(Before Accounting Change)
|
As Adjusted
(After Accounting Change)
|
||||||||
(Dollars in millions, unaudited)
|
First Quarter
|
Second Quarter
|
Third Quarter
|
Fourth Quarter
|
First Quarter
|
Second Quarter
|
Third Quarter
|
Fourth Quarter
|
|
$
|
$
|
$
|
$
|
$
|
$
|
$
|
$
|
||
Operating Earnings by Segment and Items
|
|||||||||
Coatings, Adhesives, Specialty Polymers, and Inks
|
|||||||||
Operating earnings
|
98
|
99
|
82
|
52
|
104
|
104
|
89
|
57
|
|
Fibers
|
|||||||||
Operating earnings
|
81
|
93
|
92
|
80
|
86
|
97
|
98
|
84
|
|
Performance Chemicals and Intermediates
|
|||||||||
Operating earnings
|
88
|
88
|
71
|
42
|
94
|
94
|
78
|
49
|
|
Asset impairments and restructuring charges (gains), net (1)
|
--
|
--
|
7
|
--
|
--
|
--
|
7
|
--
|
|
Operating earnings excluding item
|
88
|
88
|
78
|
42
|
94
|
94
|
85
|
49
|
|
Specialty Plastics
|
|||||||||
Operating earnings
|
30
|
37
|
29
|
9
|
35
|
42
|
34
|
14
|
|
Other (2)
|
|||||||||
Operating gain (loss)
|
(13)
|
1
|
(18)
|
(20)
|
(5)
|
(4)
|
(28)
|
(185)
|
|
Asset impairments and restructuring charges (gains), net (3)
|
--
|
(15)
|
--
|
--
|
--
|
(15)
|
--
|
--
|
|
Mark-to-market pension and other postretirement benefits adjustment (4)
|
--
|
--
|
--
|
--
|
(15)
|
--
|
--
|
159
|
|
Operating loss excluding items
|
(13)
|
(14)
|
(18)
|
(20)
|
(20)
|
(19)
|
(28)
|
(26)
|
|
Total Eastman Chemical Company
|
|||||||||
Total operating earnings
|
284
|
318
|
256
|
163
|
314
|
333
|
271
|
19
|
|
Total asset impairments and restructuring charges (gains), net
|
--
|
(15)
|
7
|
--
|
--
|
(15)
|
7
|
--
|
|
Mark-to-market pension and other postretirement benefits adjustment
|
--
|
--
|
--
|
--
|
(15)
|
--
|
--
|
159
|
|
Total operating earnings excluding items
|
284
|
303
|
263
|
163
|
299
|
318
|
278
|
178
|
(1)
|
Consists of $7 million in restructuring charges primarily for severance associated with the acquisition and integration of Sterling Chemicals, Inc.
|
(2)
|
Research and development and other expenses, asset impairments and restructuring charges (gains), net, and mark-to-market adjustments not identifiable to an operating segment are not included in segment operating results for the periods presented and are shown as "other" operating gain (loss).
|
(3)
|
Consists of $15 million gain from the sale of the previously impaired methanol and ammonia assets related to the terminated Beaumont, Texas industrial gasification project.
|
(4)
|
Mark-to-market adjustment for pension and other postretirement benefit plans actuarial losses.
|