RETIREMENT PLANS (Tables)

12 Months Ended

Dec. 31, 2025

Schedule of Change in Benefit Obligation and Plan Assets, Funded Status and Amounts Recognized in Balance Sheet and Accumulated Other Comprehensive Income (Loss)

Below is a summary balance sheet of the change in benefit obligation and plan assets during 2025 and 2024, the funded status of the plans and amounts recognized in the Consolidated Statements of Financial Position.

Summary of Changes


	Pension Plans								Postretirement Benefit Plans
	2025				2024				2025		2024
(Dollars in millions)	U.S.		Non-U.S.		U.S.		Non-U.S.
Change in projected benefit obligation:
Benefit obligation, beginning of year	$	1,385	$	592	$	1,468	$	661	$	446	$	480
Service cost	19		7		21		9		$	—	$	—
Interest cost	71		26		73		24		$	20	$	24
Actuarial loss (gain)	47		(43)		(29)		(55)		$	31	$	(17)



Plan amendments and other	—		—		—		—		$	(208)	$	—
Plan participants' contributions	—		1		—		1		$	1	$	2
Effect of currency exchange	—		61		—		(25)		$	—	$	—

Benefits paid	(162)		(25)		(148)		(23)		(43)		(43)
Benefit obligation, end of year	$	1,360	$	619	$	1,385	$	592	$	247	$	446
Change in plan assets:
Fair value of plan assets, beginning of year	$	1,266	$	624	$	1,348	$	639	$	101	$	104
Actual return on plan assets	166		(8)		62		16		13		$	3
Effect of currency exchange	—		65		—		(26)		—		$	—
Company contributions	5		17		4		17		36		$	35
Reserve for third party contributions	—		—		—		—		(5)		$	—
Plan participants' contributions	—		1		—		1		1		$	2
Benefits paid	(162)		(25)		(148)		(23)		(43)		$	(43)




Fair value of plan assets, end of year	$	1,275	$	674	$	1,266	$	624	$	103	$	101
Funded status at end of year	$	(85)	$	55	$	(119)	$	32	$	(144)	$	(345)
Amounts recognized in the Consolidated Statements of Financial Position consist of:
Other noncurrent assets	$	—	$	81	$	—	$	58	$	63	$	57
Current liabilities	(2)		—		(4)		—		(26)		(36)
Post-employment obligations	(83)		(26)		(115)		(26)		(181)		(366)
Net amount recognized, end of year	$	(85)	$	55	$	(119)	$	32	$	(144)	$	(345)
Accumulated benefit obligation	$	1,295	$	594	$	1,324	$	569
Amounts recognized in accumulated other comprehensive income consist of:
Prior service (credit) cost	$	—	$	(4)	$	—	$	(5)	$	(198)	$	—

Defined Benefit Plan, Plan with Projected Benefit Obligation in Excess of Plan Assets [Table Text Block]

Information for pension plans with projected benefit obligations in excess of plan assets:


(Dollars in millions)	2025				2024
	U.S.		Non-U.S.		U.S.		Non-U.S.
Projected benefit obligation	$	1,360	$	85	$	1,385	$	79
Fair value of plan assets	1,275		59		1,266		53

Defined Benefit Plan, Plan with Accumulated Benefit Obligation in Excess of Plan Assets [Table Text Block]

Information for pension plans with accumulated benefit obligations in excess of plan assets:


(Dollars in millions)	2025				2024
	U.S.		Non-U.S.		U.S.		Non-U.S.

Accumulated benefit obligation	$	32	$	38	$	1,324	$	55
Fair value of plan assets	—		23		1,266		40

Schedule of Benefit Cost and Amounts Recognized in Other Comprehensive Income

Summary of Benefit Costs and Other Amounts Recognized in Other Comprehensive Income


	Pension Plans												Postretirement Benefit Plans
	2025				2024				2023				2025		2024		2023
(Dollars in millions)	U.S.		Non-U.S.		U.S.		Non-U.S.		U.S.		Non-U.S.
Components of net periodic benefit (credit) cost:
Service cost	$	19	$	7	$	21	$	9	$	23	$	7	$	—	$	—	$	—
Interest cost	71		26		73		24		77		26		20		24		26
Expected return on plan assets	(89)		(31)		(95)		(28)		(88)		(22)		(5)		(5)		(4)

Amortization of:
Prior service (credit) cost	—		(1)		—		(1)		—		—		(10)		(10)		(27)
Mark-to-market pension and other postretirement benefits loss (gain), net	(30)		(4)		4		(43)		49		18		28		(15)		(14)
Net periodic benefit (credit) cost	$	(29)	$	(3)	$	3	$	(39)	$	61	$	29	$	33	$	(6)	$	(19)
Other changes in plan assets and benefit obligations recognized in other comprehensive income:

Current year prior service credit (cost)	$	—	$	—	$	—	$	—	$	—	$	—	$	208	$	—	$	—
Amortization of:
Prior service (credit) cost	—		(1)		—		(1)		—		—		(10)		(10)		(27)
Total	$	—	$	(1)	$	—	$	(1)	$	—	$	—	$	198	$	(10)	$	(27)

Schedule of Assumptions Used to Develop the Projected Benefit Obligation

The assumptions used to develop the projected benefit obligation for Eastman's significant U.S. and non-U.S. defined benefit pension plans and U.S. postretirement benefit plans are provided in the following tables.


	Pension Plans												Postretirement Benefit Plans
	2025				2024				2023				2025		2024		2023
Weighted-average assumptions used to determine benefit obligations for years ended December 31:	U.S.		Non-U.S.		U.S.		Non-U.S.		U.S.		Non-U.S.
Discount rate	5.26	%	4.81	%	5.64	%	4.40	%	5.22	%	3.83	%	5.13	%	5.60	%	5.21	%
Interest crediting rate	5.43	%	N/A		5.44	%	N/A		5.46	%	N/A		N/A		N/A		N/A
Rate of compensation increase	3.00	%	3.04	%	3.00	%	3.04	%	3.00	%	3.04	%	N/A		N/A		N/A
Health care cost trend
Initial													6.50	%	6.25	%	6.50	%
Decreasing to ultimate trend of													5.00	%	5.00	%	5.00	%
in year													2032		2030		2030

Weighted-average assumptions used to determine net periodic cost for years ended December 31:	U.S.		Non-U.S.		U.S.		Non-U.S.		U.S.		Non-U.S.
Discount rate	5.64	%	4.40	%	5.22	%	3.83	%	5.58	%	4.27	%	5.60	%	5.21	%	5.55	%
Discount rate for service cost	5.64	%	3.70	%	5.22	%	3.38	%	5.59	%	3.95	%	N/A		N/A		N/A
Discount rate for interest cost	5.35	%	4.40	%	5.15	%	3.83	%	5.46	%	4.27	%	5.25	%	5.16	%	5.43	%
Expected return on assets	7.50	%	4.90	%	7.50	%	4.74	%	6.62	%	3.86	%	4.50	%	4.50	%	3.50	%
Rate of compensation increase	3.00	%	3.04	%	3.00	%	3.04	%	3.00	%	3.04	%	N/A		N/A		N/A
Interest crediting rate	5.44	%	N/A		5.46	%	N/A		5.48	%	N/A		N/A		N/A		N/A
Health care cost trend
Initial													6.25	%	6.50	%	6.00	%
Decreasing to ultimate trend of													5.00	%	5.00	%	5.00	%
in year													2030		2030		2030

Schedule of Fair Value Measurements of Pension Plan Assets on a Recurring Basis

The following tables reflect the fair value of the defined benefit pension plans assets.


(Dollars in millions)					Fair Value Measurements at December 31, 2025
Description	Total Fair Value				Quoted Prices in Active Markets for Identical Assets (Level 1)				Significant Other Observable Inputs (Level 2)				Significant Unobservable Inputs (Level 3)
Pension Assets:	U.S.		Non-U.S.		U.S.		Non-U.S.		U.S.		Non-U.S.		U.S.		Non-U.S.
Cash and Cash Equivalents (1)	$	29	$	65	$	29	$	65	$	—	$	—	$	—	$	—
Public Equity - United States (2)	6		—		6		—		—		—		—		—
Other Investments (3)	—		54		—		—		—		—		—		54
Total Assets at Fair Value	$	35	$	119	$	35	$	65	$	—	$	—	$	—	$	54
Investments Measured at Net Asset Value (4)	1,240		555
Total Assets	$	1,275	$	674


(Dollars in millions)					Fair Value Measurements at December 31, 2024
Description	Total Fair Value				Quoted Prices in Active Markets for Identical Assets (Level 1)				Significant Other Observable Inputs (Level 2)				Significant Unobservable Inputs (Level 3)
Pension Assets:	U.S.		Non-U.S.		U.S.		Non-U.S.		U.S.		Non-U.S.		U.S.		Non-U.S.
Cash and Cash Equivalents (1)	$	18	$	40	$	18	$	40	$	—	$	—	$	—	$	—
Public Equity - United States (2)	6		—		6		—		—		—		—		—
Other Investments (3)	—		49		—		—		—		—		—		49
Total Assets at Fair Value	$	24	$	89	$	24	$	40	$	—	$	—	$	—	$	49
Investments Measured at Net Asset Value (4)	1,242		535
Total Assets	$	1,266	$	624

(1)Cash and Cash Equivalents: Funds generally invested in actively managed collective trust funds or interest bearing accounts.

(2)Public Equity - United States: Common stock equity securities which are primarily valued using a market approach based on the quoted market prices.

(3)Other Investments: Primarily consist of insurance contracts which are generally valued using a crediting rate that approximates market returns and investments in underlying securities whose market values are unobservable and determined using pricing models, discounted cash flow methodologies, or similar techniques.

(4)Investments Measured at Net Asset Value: The underlying debt, public equity, and public real asset investments in this category are generally held in common trust funds, which are either actively or passively managed investment vehicles, that are valued at the net asset value per unit/share multiplied by the number of units/shares held as of the measurement date. The other alternative investments in this category are valued under the practical expedient method which is based on the most recently reported net asset value provided by the management of each private investment fund, adjusted as appropriate, for any lag between the date of the financial reports and the measurement date.

The following tables reflect the fair value of the postretirement benefit plan assets. The postretirement benefit plan is for the voluntary employees' beneficiary association ("VEBA") trust the Company assumed as part of the Solutia acquisition.


(Dollars in millions)			Fair Value Measurements at December 31, 2025
Description	Total Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Postretirement Benefit Plan Assets:
Cash and Cash Equivalents (1)	$	1	$	1	$	—	$	—
Debt (2):
Fixed Income (U.S.)	65		$	—	$	65	$	—
Fixed Income (Non-U.S.)	22		—		22		—

Total	$	88	$	1	$	87	$	—


(Dollars in millions)			Fair Value Measurements at December 31, 2024
Description	Total Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Postretirement Benefit Plan Assets:

Debt (2):
Fixed Income (U.S.)	$	64	$	—	$	64	$	—
Fixed Income (Non-U.S.)	22		—		22		—

Total	$	86	$	—	$	86	$	—

(1)Cash and Cash Equivalents: Funds generally invested in actively managed collective trust funds or interest bearing accounts.

(2)Debt: The fixed income securities are primarily valued upon a market approach, using matrix pricing and considering a security's relationship to other securities for which quoted prices in an active market may be available, or an income approach, converting future cash flows to a single present value amount. Inputs used in developing fair value estimates include reported trades, broker quotes, benchmark yields, and base spreads.

Schedule of Pension Plan Assets Classified within Level 3 of the Fair Value Hierarchy

The Company valued assets with unobservable inputs (Level 3), primarily insurance contracts, using a crediting rate that approximates market returns and investments in underlying securities whose market values are unobservable and determined using pricing models, discounted cash flow methodologies, or similar techniques.


	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	Other Investments(1)
(Dollars in millions)	Non-U.S. Pension Plans
Balance at December 31, 2023	$	51

Unrealized gains	(3)
Purchases, issuances, sales, and settlements	1
Balance at December 31, 2024	49

Unrealized gains	5

Balance at December 31, 2025	$	54

(1)Primarily consists of insurance contracts.

Schedule of US and Non-US Pension Plans Asset Target Allocation by Category

The following table reflects the target allocation for the Company's U.S. and non-U.S. pension and postretirement benefit plans assets for 2026 and the asset allocation at December 31, 2025 and 2024, by asset category.


	U.S. Pension Plans			Non-U.S. Pension Plans			Postretirement Benefit Plan
	2026 Target Allocation	Plan Assets at December 31, 2025	Plan Assets at December 31, 2024	2026 Target Allocation	Plan Assets at December 31, 2025	Plan Assets at December 31, 2024	2026 Target Allocation	Plan Assets at December 31, 2025	Plan Assets at December 31, 2024
Asset category
Equity securities	38%	41%	42%	27%	23%	23%	—%	—%	—%
Debt securities	36%	41%	37%	59%	60%	60%	100%	100%	100%
Real estate	8%	6%	6%	4%	4%	4%	—%	—%	—%
Other investments (1)	18%	12%	15%	10%	13%	13%	—%	—%	—%
Total	100%	100%	100%	100%	100%	100%	100%	100%	100%

(1)U.S. primarily consists of private equity, private debt, and natural resource and energy related limited partnership investments. Non-U.S. primarily consists of annuity contracts and alternative investments.

Schedule Benefits Expected to be Paid from Pension Plans and Benefits

The estimated future benefit payments, reflecting expected future service, as appropriate, are as follows:


	Pension Plans				Postretirement Benefit Plans
(Dollars in millions)	U.S.		Non-U.S.
2026	$	134	$	28	$	32
2027	134		32		32
2028	131		32		32
2029	126		34		31
2030	127		35		28
2031-2034	572		197		74

EASTMAN CHEMICAL CO 10-K