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Form 11-K EASTMAN CHEMICAL CO For: Dec 31

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June 27, 2016 5:15 PM EDT

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549

FORM 11-K


(Mark
One)
 
[X]
ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 
For the fiscal year ended December 31, 2015
 
OR
[ ]
TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 
For the transition period from _____________ to ______________
 
Commission file number 1-12626
 
A. Full Title of the plan and the address of the plan, if different from that of the issuer named below:
 
EASTMAN INVESTMENT AND EMPLOYEE STOCK OWNERSHIP PLAN
 
B. Name of issuer of the securities held pursuant to the plan and the address of its principal executive office:
 
EASTMAN CHEMICAL COMPANY
200 S. Wilcox Drive
Kingsport, Tennessee 37662






Eastman Investment and Employee Stock Ownership Plan

Table of Contents

Report of Independent Registered Public Accounting Firm

 
 
Basic Financial Statements:
 
 
 
Statements of Net Assets Available for Benefits at December 31, 2015 and 2014
Statements of Changes in Net Assets Available for Benefits for the years ended December 31, 2015 and 2014
Notes to Financial Statements

4-15
 
 
Additional Information (Note A):
 
 
 
Schedule of Assets (Held at End of Year) at December 31, 2015

17-29
 
 
Signatures
 
 
Exhibits

Note A:
Other supplemental schedules required by Section 2520.103-10 of the Department of Labor's Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974 have been omitted because they are not applicable.



Report of Independent Registered Public Accounting Firm



To the Audit Committee and Plan Administrator of the
Eastman Investment & Employee Stock Ownership Plan

We have audited the accompanying statements of net assets available for benefits of the Eastman Investment & Employee Stock Ownership Plan (the "Plan") as of December 31, 2015 and 2014, and the related statements of changes in net assets available for benefits for the years then ended. These financial statements are the responsibility of the Plan's management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. The Plan is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audit included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the company's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the net assets available for benefits of the Plan as of December 31, 2015 and 2014, and the changes in net assets available for benefits for the years then ended in conformity with accounting principles generally accepted in the United States of America.

The supplemental information in the accompanying schedule of assets (held at end of year) as of December 31, 2015, has been subjected to audit procedures performed in conjunction with the audit of the Plan's financial statements. The supplemental information is presented for the purpose of additional analysis and is not a required part of the financial statements but include supplemental information required by the Department of Labor's Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974. The supplemental information is the responsibility of the Plan's management. Our audit procedures included determining whether the supplemental information reconciles to the financial statements or the underlying accounting and other records, as applicable, and performing procedures to test the completeness and accuracy of the information presented in the supplemental information. In forming our opinion on the supplemental information in the accompanying schedule, we evaluated whether the supplemental information, including its form and content, is presented in conformity with the Department of Labor's Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974. In our opinion, the supplemental information in the accompanying schedule is fairly stated in all material respects in relation to the financial statements as a whole.



/s/ Brown Smith Wallace, LLP
St. Louis, Missouri
June 27, 2016


1


Eastman Investment and Employee Stock Ownership Plan
Statements of Net Assets Available for Benefits
December 31, 2015 and 2014
(in thousands)

 
 
 
 
2015
 
 
 
 
 
2014
 
 
 
 
 
 
Non-
 
 
 
 
 
Non-
 
 
 
 
Participant
 
participant
 
 
 
Participant
 
participant
 
 
 
 
Directed
 
Directed
 
Total
 
Directed
 
Directed
 
Total
 
 
 
 
 
 
 
 
 
 
 
 
 
Assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Investments at fair value
 
$
1,738,708

 
$
149,716

 
$
1,888,424

 
$
1,752,390

 
$
168,331

 
$
1,920,721

 
 
 
 
 
 
 
 
 
 
 
 
 
Investments at contract value
 
874,030

 
—

 
874,030

 
904,011

 
—

 
904,011

 
 
 
 
 
 
 
 
 
 
 
 
 
Receivables:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Plan sponsor contributions
 
32,796

 
14,993

 
47,789

 
32,184

 
12,669

 
44,853

 
 
 
 
 
 
 
 
 
 
 
 
 
Notes receivable from participants
 
50,384

 
—

 
50,384

 
50,898

 
—

 
50,898

 
 
 
 
 
 
 
 
 
 
 
 
 
Other receivables
 
4,264

 
1,008

 
5,272

 
3,024

 
879

 
3,903

 
 
 
 
 
 
 
 
 
 
 
 
 
Total assets
 
2,700,182

 
165,717

 
2,865,899

 
2,742,507

 
181,879

 
2,924,386

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Liabilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Accrued expenses
 
22

 
16

 
38

 
23

 
18

 
41

 
 
 
 
 
 
 
 
 
 
 
 
 
Other liabilities
 
2,625

 
1,635

 
4,260

 
1,865

 
1,500

 
3,365

 
 
 
 
 
 
 
 
 
 
 
 
 
Total liabilities
 
2,647

 
1,651

 
4,298

 
1,888

 
1,518

 
3,406

 
 
 
 
 
 
 
 
 
 
 
 
 
Net assets available for benefits
 
$
2,697,535

 
$
164,066

 
$
2,861,601

 
$
2,740,619

 
$
180,361

 
$
2,920,980

 
 
 
 
 
 
 
 
 
 
 
 
 

The accompanying notes are an integral part of these financial statements.

2

Eastman Investment and Employee Stock Ownership Plan
Statements of Changes in Net Assets Available for Benefits
For the Years Ended December 31, 2015 and 2014
(in thousands)

 
 
 
 
2015
 
 
 
 
 
2014
 
 
 
 
 
 
Non-
 
 
 
 
 
Non-
 
 
 
 
Participant
 
participant
 
 
 
Participant
 
participant
 
 
 
 
Directed
 
Directed
 
Total
 
Directed
 
Directed
 
Total
 
 
 
 
 
 
 
 
 
 
 
 
 
Additions to net assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Investment income
 
 
 
 
 
 
 
 
 
 
 
 
Interest
 
$
15,459

 
$
—

 
$
15,459

 
$
15,278

 
$
—

 
$
15,278

Dividends
 
86,446

 
3,733

 
90,179

 
109,520

 
3,298

 
112,818

Net depreciation in fair value of investments
 
(79,354
)
 
(18,444
)
 
(97,798
)
 
(8,746
)
 
(9,963
)
 
(18,709
)
Net investment gain (loss)
 
22,551

 
(14,711
)
 
7,840

 
116,052

 
(6,665
)
 
109,387

Interest income from notes receivable
 
2,250

 
—

 
2,250

 
2,173

 
—

 
2,173

Participant contributions
 
93,530

 
—

 
93,530

 
86,117

 
—

 
86,117

Plan sponsor contributions
 
45,917

 
14,993

 
60,910

 
43,933

 
12,669

 
56,602

Total additions
 
164,248

 
282

 
164,530

 
248,275

 
6,004

 
254,279

 
 
 
 
 
 
 
 
 
 
 
 
 
Deductions from net assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Distributions to and withdrawals by participants
 
220,374

 
8,215

 
228,589

 
258,105

 
10,959

 
269,064

Administrative expenses (refunds)
 
(945
)
 
—

 
(945
)
 
(810
)
 
—

 
(810
)
Total deductions
 
219,429

 
8,215

 
227,644

 
257,295

 
10,959

 
268,254

Net increase in net assets
 
(55,181
)
 
(7,933
)
 
(63,114
)
 
(9,020
)
 
(4,955
)
 
(13,975
)
Transfers from non-participant directed
 
8,362

 
(8,362
)
 
—

 
10,913

 
(10,913
)
 
—

Plan transfers (see Note 15)
 
3,735

 
—

 
3,735

 
—

 
—

 
—

Net assets available for benefits at beginning of year
 
2,740,619

 
180,361

 
2,920,980

 
2,738,726

 
196,229

 
2,934,955

Net assets available for benefits at end of year
 
$
2,697,535

 
$
164,066

 
$
2,861,601

 
$
2,740,619

 
$
180,361

 
$
2,920,980


The accompanying notes are an integral part of these financial statements.



3
Eastman Investment and Employee Stock Ownership Plan
Notes to Financial Statements



1.
DESCRIPTION OF PLAN

The Eastman Investment and Employee Stock Ownership Plan (the "Plan") is a defined contribution plan of a controlled group of corporations consisting of Eastman Chemical Company and certain of its wholly-owned subsidiaries operating in the United States ("Eastman", the "Company" or the "Plan Sponsor"). The Plan is organized pursuant to Sections 401(a) and (k) and Section 4975(e) (7) of the Internal Revenue Code ("IRC"). All United States employees of Eastman, with the exception of certain limited service and special program employees, and employees covered by a collective bargaining agreement with the Company, unless the collective bargaining agreement or the Plan specifically provides for participation, are eligible to participate in the Plan on their first day of employment with Eastman. The Plan was adopted by Eastman, the Plan Sponsor, on January 1, 1994 and is subject to the Employee Retirement Income Security Act of 1974 ("ERISA"). The Plan is administered by the Investment Plan Committee ("IPCO"), which is the Plan Administrator and is comprised of Eastman employees. The Plan has trusts which are administered by the Fidelity Management Trust Company (the "Trustee"). The trusts include the Eastman Chemical Trust and the Eastman Stock Ownership Plan ("ESOP") Trust.

Money in the forfeiture account of the Plan is available to be used both to offset future Company contributions and for various administrative expenses of the Plan. The balance of the forfeiture account at December 31, 2015 and 2014 was $85,129 and $31,558, respectively. There were no forfeitures used in 2015 and $44,533 were used in 2014.

On or after January 1, 2007, each eligible employee hired by the Company will, in addition to the Retirement Savings Contribution ("RSC"), be automatically enrolled as a participant in the Eastman Investment Plan ("EIP") portion of the Plan. The participants will be deemed to have elected to defer 7% of their qualifying compensation each pay period to the EIP portion of the Plan, unless they affirmatively decline or they elect to contribute a percentage other than 7%. Each participant will also be eligible to receive a matching contribution from the Company equal to 50% of the first 7% of their pay that they contribute to the Plan each pay period. Plan participants may elect to enroll in an automatic annual increase program with an increase to deferral rates each year until the participant's deferral reaches 40%. Their contributions will be invested in a Fidelity Freedom K® Fund that has a target retirement date closest to the year in which the participant reaches age 65 until changed by the participant.

For additional information regarding the Plan, see the complete Plan documents.


4
Eastman Investment and Employee Stock Ownership Plan
Notes to Financial Statements



Contributions and vesting

Contributions to the Plan are made through two separate provisions: (1) deferral of qualifying compensation and (2) contributions by the Plan Sponsor of cash or its common stock to the participants' accounts as determined by the Compensation and Management Development Committee of the Board of Directors of Eastman.

The Plan includes a salary deferral provision allowing eligible employees to defer up to 40% of qualifying compensation, as defined in the Plan, up to the statutory limit of $18,000 for 2015 and $17,500 for 2014 as permitted by the IRC. For the catch-up salary deferral, an eligible employee who attained age 50 before the close of the calendar year was allowed to defer up to an additional $6,000 for 2015 and $5,500 for 2014 of qualifying compensation, as defined in the Plan, up to certain IRC limitations. Plan Sponsor contributions are also subject to certain other limitations. Participants' salary deferrals are contributed to the Plan by Eastman on behalf of the participants. The Plan's Trustee invests amounts contributed to the Plan, as designated by the participant, in common stock of Eastman, various mutual funds, and/or interest in a guaranteed investment contract fund (see Notes 6 and 7). Generally, participants may transfer amounts among the funds on any business day. Additionally, participants may diversify amounts from their ESOP Fund account within the Plan (see Note 10). Each participant is at all times 100% vested in their account, with the exception of amounts transferred from other plans, which continue to be subject to the former plans' vesting requirements.

The Plan requires for the RSC to be contributed either to the employee's ESOP Fund accounts for employee's first five RSC contributions or into other Plan funds, as directed by the participant, for participants with more than five RSC contributions. For participants with more than five RSC contributions, the RSC is allocated to participant-directed funds in accordance with each participant's investment elections at such time as the RSC is made.

Plan Sponsor contributions may be paid at any time during the plan year and subsequent to such plan year through the due date for filing the Company's federal income tax return, including any extensions. Contributions may be paid to the ESOP Trust in cash or shares of Eastman common stock and are deposited in the Company contribution account. Allocations to the participants' accounts from the Company contribution account will be made each plan year to participants who are eligible employees on the date designated by the Company. Participants are not permitted to make contributions to the ESOP Trust.

Employees may elect to transfer, into any of the Plan's fund options, balances received from (1) lump sum payouts from the Eastman Retirement Assistance Plan, a qualified defined benefit plan also sponsored by Eastman Chemical Company, (2) a former employer's 401(a) and 401(k) plan, or (3) an employee's individual retirement account containing amounts received from a qualified defined contribution plan under Section 401(a) and 401(k) of the IRC. All rollover contributions into the Plan must meet the applicable IRC requirements.


5
Eastman Investment and Employee Stock Ownership Plan
Notes to Financial Statements



Notes receivable from participants

The IPCO may grant a note receivable (loan) of at least $1,000 to a participant provided that the aggregate of the participant's notes receivable does not exceed the lesser of (1) $50,000 reduced by the excess, if any, of (a) the participant's highest notes receivable balance from the preceding 12 months over (b) the outstanding total notes receivable balance from the Plan on the date on which the notes receivable was made, or (2) 50% of the non-forfeitable portion of the participant's account. In accordance with the Plan provisions, the rate of interest on new participant notes receivable approximates current market rates. The term of any notes receivable from participants is determined by IPCO and shall not exceed five years. Notes receivable from participants transferred to the Plan from acquisitions carry terms applicable under that plan. Notes receivable from participants are valued at their unpaid principal balance plus any accrued but unpaid interest. Interest income is recorded on the accrual basis. Related fees are recorded as administrative expenses and are expensed when they are incurred. No allowance for credit losses has been recorded as of December 31, 2015 or 2014. If a participant ceases to make loan repayments and the Plan Administrator deems the participant loan to be in default, the participant loan is reduced and a benefit payment is recorded. At December 31, 2015, $50.4 million in notes receivable from participants were outstanding for terms of 5 to 72 months and interest rates ranging from 3.25% to 5.25%. At December 31, 2014, $50.9 million in notes receivable from participants were outstanding for terms from 4 to 72 months and interest rates ranging from 3.25% to 5.00%.

Distributions

Distributions from the Plan require the approval of IPCO or its designee and are made under the following circumstances:

•
Upon attaining age 59½, a participant may elect to receive a lump sum cash distribution of their total or partial account value while still actively employed.

•
Upon separation of service from Eastman for any reason except death, the full value of a participant's account is distributed in a lump sum payment for those participants whose account value is less than or equal to $1,000. Separated participants with accounts in excess of $1,000 may elect either (1) to defer distribution until a later date but, in no event, later than April 1 of the calendar year following the year a participant attains age 70½ or (2) an immediate lump-sum distribution of the participant's account or, at the election of the participant, distributions in monthly or annual installments. Participants in the Eastman Stock Fund or ESOP Fund may elect a lump sum distribution in Eastman common stock.

•
In the event of death, the value of a participant's account is paid in a lump sum if the designated beneficiary is not the surviving spouse or if the account value is less than or equal to $1,000. If the beneficiary is a surviving spouse and the participant account value exceeds $1,000, payment will be made in either a lump-sum amount or, at the election of the surviving spouse, in monthly or annual installments.

•
Distributions to participants shall commence in the year following the year a participant attains age 70½, unless the participant is still actively employed with the Company.


6
Eastman Investment and Employee Stock Ownership Plan
Notes to Financial Statements



•
Approval of hardship withdrawals will only be granted in order to meet obligations relating to the payment of substantial out-of-pocket medical expenses, the purchase of a primary residence, the payment of tuition or other post-secondary educational expenses, or payments to prevent eviction or foreclosure. They are also granted for payment of funeral expenses for a deceased parent, spouse or child of the participant, or payment of expenses for repair or damage to the participant’s principal residence. Hardship withdrawals may not exceed the value of the participant's accounts in the Plan on the date of withdrawal.

•
The Trustee is authorized to honor qualified domestic relation orders issued and served in accordance with Section 414(p) of the IRC.

Investment of ESOP Fund Assets

ESOP Fund assets are invested primarily in Eastman common stock. However, at IPCO's discretion, funds may also be invested in other securities or held in cash.

Investment assets can be acquired by the ESOP Fund in three ways:

•
The Company may make a direct contribution of cash to the ESOP Fund, which would then be used to purchase Eastman common stock or other securities.

•
The Company may contribute shares of Eastman common stock directly to the ESOP Fund.

•
The Company may direct the Trustee to obtain a loan to purchase securities (i.e., leveraged ESOP). Until the loan is repaid, securities acquired with the respective loan proceeds are not available to be allocated to participants' accounts and are maintained in a "Loan Suspense Account". On the last day of each plan year, a proportionate share of securities relating to loan amounts which have been repaid will be transferred out of the Loan Suspense Account and allocated to the accounts of ESOP Fund participants. The ESOP Fund currently is not a leveraged ESOP.

Dividends attributable to the ESOP Fund

IPCO may direct that Eastman common stock dividends attributable to the non-participant directed ESOP Fund be (a) allocated to the accounts of participants, (b) paid in cash to the participants on a nondiscriminatory basis, or (c) paid by the Company directly to participants. Alternatively, dividends received from Eastman common stock maintained in the Loan Suspense Account may be applied to reduce the related loan balance.

Allocations to participants' ESOP Fund accounts

Separate participant accounts are established to reflect each participant's interest in the ESOP Fund and are maintained under the unit value method of accounting. The ESOP Fund account maintained for each participant consists of:

•
Plan Sponsor contributions made or invested in shares of Eastman common stock.

•
Shares of Eastman common stock purchased with assets transferred to the ESOP Fund pursuant to the spin-off from Eastman Kodak Company and/or acquired with the proceeds of a loan released from the Loan Suspense Account.

7
Eastman Investment and Employee Stock Ownership Plan
Notes to Financial Statements



•
An allocable share of short-term interest and money market funds held in the ESOP Fund for purposes of payment of expenses and similar purposes.

•
After-tax contributions transferred to the ESOP Fund pursuant to the spin-off from Eastman Kodak Company (such after-tax contributions are no longer permitted under the ESOP provisions).

The number of units allocated to a participant's account in any year is based on the ratio of the participant's compensation to the total compensation of all eligible employees entitled to share in the allocation for that plan year. In any year in which a Company contribution is made, a participant's allocation will not be less than one share of stock.
Federal law limits the total annual contributions that may be made on a participant's behalf to all defined contribution and defined benefit plans offered by the Company. Participants will be notified if their total annual contribution is limited by this legal maximum.
2.
SUMMARY OF ACCOUNTING POLICIES

The following accounting policies, which conform to accounting principles generally accepted in the United States of America ("USGAAP"), have been used consistently in the preparation of the Plan's financial statements.

Basis of accounting

The Plan's financial statements are prepared on the accrual basis of accounting.

Use of estimates

The preparation of financial statements in conformity with USGAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and changes therein, and disclosures of contingent assets and liabilities. Actual results could differ from those estimates.

Investment policy and valuation

The Plan's investments are stated at fair value except for its fully benefit responsive investment contract, which is valued at contract value (see Note 7). If available, quoted market prices are used to value investments. IPCO determines the Plan's valuation policies utilizing information provided by Fidelity Investments and the Director of Benefits Finance and Investments. See Note 8 for discussion of fair value measurements.

For investments in the ESOP Fund and the Eastman Stock Fund, the Trustee may keep any portion of participant and Plan Sponsor contributions temporarily in cash or liquid investments as it may deem advisable. All dividends, interest or gains derived from investment in each fund are reinvested in the respective fund by the Trustee.

Purchases and sales of investments are recorded on a trade-date basis. Interest income is accrued when earned. Dividend income is recorded at the ex-dividend date.

The Plan presents in the Statements of Changes in Net Assets Available for Benefits the net appreciation (depreciation) in the fair value of its investments which consists of the realized gains or losses and the unrealized appreciation (depreciation) on those investments.


8
Eastman Investment and Employee Stock Ownership Plan
Notes to Financial Statements



Payments to participants

Benefit payments to participants are recorded when paid.

New Accounting Pronouncements

Plan management has elected to early implement Accounting Standards Update 2015-07 "Disclosures for Investments in Certain Entities that Calculate Net Asset Value per Share (or Its Equivalent)" ("ASU 2015-07"). This standard removes the requirement to categorize within the fair value hierarchy investments for which fair values are estimated using the net asset value practical expedient provided by Accounting Standards Codification 820, Fair Value Measurement. The Plan has early adopted this standard for the year ended December 31, 2015 and retrospectively for the year ended December 31, 2014.

Plan management has also elected to early implement Accounting Standards Update 2015-12 "Simplification Standard for the Reporting by Employee Benefit Plans" ("ASU 2015-12"). This standard requires investments to be measured at fair value by "general type" rather than by "class type" either on the face of the financial statements or in the notes of the financial statements. The new standard also does not require that fully benefit responsive investments measured at contract value to be adjusted to fair value. It also eliminates the requirement to disclose individual investments which comprise 5% or more of total net assets available for benefits as well as the net appreciation or depreciation of fair values by type. The Plan has early adopted this standard for the year ended December 31, 2015 and retrospectively for the year ended December 31, 2014.

3.
RISKS AND UNCERTAINTIES

Investment securities are exposed to various risks, such as interest rate risk, market risk, and credit risk. Due to the level of risk associated with certain investment securities, it is at least reasonably possible that changes in the values of investment securities will occur in the near term and that such changes could materially affect participant account balances and the amounts reported in the financial statements. Included in investments at December 31, 2015 and 2014 are shares of the Plan Sponsor's common stock amounting to $361 million and $406 million, respectively. This investment represents 13.1% and 14.3% of total investments at December 31, 2015 and 2014, respectively. A significant decline in the market value of the Plan Sponsor's stock would significantly affect the net assets available for benefits.

4.
CONTRIBUTIONS

Participant contributions represent qualifying compensation and other qualifying employee bonuses withheld from participating employees by Eastman and contributed to the Plan. Contributions are invested in the Plan's funds as directed by the participants, with the exception of the ESOP Fund, subject to ERISA funding limitations. The Plan has accrued Company contributions for participant-directed funds of $32.8 million and $32.2 million and for the non-participant-directed ESOP Fund of $15 million and $12.7 million at December 31, 2015 and 2014, respectively.

9
Eastman Investment and Employee Stock Ownership Plan
Notes to Financial Statements



5.
NOTES RECEIVABLE FROM PARTICIPANTS

The Plan Trustee makes loans to participants in accordance with Plan provisions. The loans are reflected as notes receivable from participants. Notes receivable from participants are accounted for as a transfer from the fund directed by the participant to the Notes Receivable from Participants Fund. The principal portion of participant repayments reduces the Notes Receivable from Participants Fund receivable. The principal and interest repaid are directed to funds to which the participant's current contributions are directed; the principal is accounted for as a transfer and the interest accounted for as income in the fund to which the participant's current contributions are directed. The Notes Receivable from Participants Fund's net assets and other changes in net assets are included in the participant-directed funds in the Statements of Net Assets and Changes in Net Assets Available for Benefits, respectively. Notes receivable from participants are valued at their unpaid principal balance plus any accrued but unpaid interest.

Unless otherwise specified by the participant, the proceeds of new notes receivable will be withdrawn from the investment funds on a pro-rata basis. Outstanding notes receivable from participants at December 31, 2015 and 2014 were approximately $50.4 million and $50.9 million, respectively. Interest income earned on notes receivable from participants is credited directly to the participants' accounts and was approximately $2.2 million for both 2015 and 2014.

6.
INVESTMENTS

At December 31, 2015 and 2014, the Plan's assets were invested in Eastman Chemical Company common stock, mutual funds, and synthetic investment contracts (see Note 7). Subject to certain limitations, participants are provided the option of directing their contributions among the investment options. The Plan also holds an interest in the non-participant directed Eastman ESOP Fund, which invests in Eastman Chemical Company common stock and short-term interest funds. The following table presents the Plan's investments by type at December 31, 2015 and 2014, respectively.

(in thousands)
2015
 
2014
 
 
 
 
Cash
$
6,150

 
$
6,307

Eastman Chemical Company common stock
361,084

 
405,692

Mutual funds
1,489,309

 
1,477,966

Managed income fund
874,030

 
904,011

Self-directed brokerage account
31,881

 
30,756

Total
$
2,762,454

 
$
2,824,732



10
Eastman Investment and Employee Stock Ownership Plan
Notes to Financial Statements



The following investment options, which invest primarily in common stock of the Plan Sponsor, were available to participants in 2015 and 2014:

Eastman Stock Fund
This participant-directed fund consists primarily of Eastman Class A common stock. Purchases and sales of Eastman common stock are generally made on the open market on behalf of and as elected by Plan participants. During 2015, the Trustee purchased 1,572,790 shares of Eastman common stock for the fund at an average price of $70.95 per share, and sold 1,573,345 shares of Eastman common stock for the fund at an average price of $74.64 per share. During 2014, the Trustee purchased 2,354,900 shares of Eastman common stock for the fund at an average price of $78.69 per share and sold 1,922,800 shares at an average price of $84.25 per share. Dividends paid from the Eastman Stock Fund totaled $5 million and $3.6 million in 2015 and 2014, respectively.

Eastman ESOP Fund
This non-participant directed fund consists primarily of Eastman Class A common stock. Purchases and sales of Eastman common stock are generally made on the open market, on behalf of its participants and as directed by the Plan's guidelines. During 2015, the Trustee purchased 197,100 shares of Eastman common stock for the fund at an average price of $74.13 per share, and sold 169,500 shares of Eastman common stock for the fund at an average price of $73.99 per share. During 2014, the Trustee purchased 142,900 shares of Eastman common stock for the fund at an average price of $79.96 per share, and sold 198,200 shares at an average price of $83.29 per share. Participants can elect to have the dividends paid in cash or reinvested back into the Eastman ESOP fund.

7.
INSURANCE CONTRACTS

The Plan invests in the Managed Income Fund (the "Fund"), which invests in synthetic investment contracts only, totaling $874 million and $904 million at December 31, 2015 and 2014, respectively. The term "synthetic" investment contract is used to describe a variety of investment contracts under which a Plan retains ownership of the invested assets, or owns units of an account or trust which holds the invested assets. A synthetic investment contract, also referred to as a "wrap" contract, is negotiated with an independent financial institution. Under the terms of these investment contracts, the contract issuer ensures the Plan's ability to pay eligible employee benefits at book value. The investment performance of a synthetic investment contract may be a function of the investment performance of the invested assets. Participants can redeem interest in this daily and there is no notice period on these redemptions.


11
Eastman Investment and Employee Stock Ownership Plan
Notes to Financial Statements



A wrap contract is an agreement by another party, such as a bank or insurer, to make payments to the Fund in certain circumstances. Wrap contracts are designed to allow a stable value fund, such as the Fund, to maintain a constant net asset value ("NAV") and to protect the Fund in extreme circumstances. In a typical wrap contract, the wrap issuer agrees to pay the Fund the difference between the contract value and the market value of the covered assets once the market value has been totally exhausted. Though relatively unlikely, this could happen if the Fund experiences significant redemptions (redemption of most of the Fund's shares) during a time when the market value of the Fund's covered assets are below their contract value and market value is ultimately reduced to zero. If that occurs, the wrap issuer agrees to pay the Fund an amount sufficient to cover shareholder redemptions and certain other payments (such as fund expenses), provided all the terms of the wrap contract have been met. Purchasing wrap contracts is similar to buying insurance, in that the Fund pays a relatively small amount to protect against a relatively unlikely event (the redemption of most of the shares of the Fund). Fees paid by the Fund for wrap contracts are a component of the Fund's expenses.

Wrap contracts accrue interest using a formula called the "crediting rate". Wrap contracts use the crediting rate formula to convert market value changes in the covered assets into income distributions in order to minimize the difference between the market and contract value of the covered assets over time. Using the crediting rate formula, an estimated future market value is calculated by compounding the Fund's current market value at the Fund's current yield to maturity for a period equal to the Fund's duration. The crediting rate is the discount rate that equates the estimated future market value with the Fund's current contract value. Crediting rates are reset quarterly. The wrap contracts provide a guarantee that the crediting rate will not fall below zero percent.

The crediting rate, and hence the Fund's return, may be affected by many factors, including purchases and redemptions by shareholders. The precise impact on the Fund depends on whether the market value of the covered assets is higher or lower than the contract value of those assets. If the market value of the covered assets is higher than their contract value, the crediting rate will ordinarily be higher than the yield of the covered assets. Under these circumstances, cash from new investors will tend to lower the crediting rate and the Fund's return, and redemptions by existing shareholders will tend to increase the crediting rate and the Fund's return.

The Fund and the wrap contracts purchased by the Fund are designed to pay all participant-initiated transactions at contract value. Participant-initiated transactions are those transactions allowed by the underlying defined contribution plan (typically this would include withdrawals for benefits, loans, or transfers to non-competing funds within the Plan). However, the wrap contracts limit the ability of the Fund to transact at contract value upon the occurrence of certain events. These events include:
•
The Plan's failure to qualify under Section 401(a) or Section 401(k) of the IRC.
•
The establishment of a defined contribution plan that competes with the Plan for employee contributions.
•
Any substantive modification of the Plan or the administration of the Plan that is not consented to by the wrap issuer.
•
Complete or partial termination of the Plan.
•
Any change in law, regulation or administrative ruling applicable to the Plan that could have a material adverse effect on the Fund's cash flow.
•
Merger or consolidation of the Plan with another plan, the transfer of Plan assets to another plan, or the sale, spin-off or merger of a subsidiary or division of the Plan Sponsor.


12
Eastman Investment and Employee Stock Ownership Plan
Notes to Financial Statements



•
Any communication given to participants by the Plan Sponsor or any other Plan fiduciary that is designed to induce or influence participants not to invest in the Fund or to transfer assets out of the Fund.
•
Exclusion of a group of previously eligible employees from eligibility in the Plan.
•
Any early retirement program, group termination, group layoff, facility closing, or similar program.
•
Any transfer of assets from the Fund directly to a competing option.

At this time, the occurrence of any of these events is not considered probable by IPCO.

8.
FAIR VALUE MEASUREMENT

Following is a description of the valuation methodologies used for assets measured at fair value:

•
Common stock: Valued at the closing price reported on the active market on which the individual securities are traded.

•
Mutual funds: Valued at the daily closing price as reported by the fund. Mutual funds held by the Plan are open-end mutual funds that are registered with the Securities and Exchange Commission. These funds are required to publish their daily net asset value and to transact at that price. The mutual funds held by the Plan are deemed to be actively traded.

•
Self-directed brokerage account: Unit valuation based on the underlying NAV of the mutual funds.

The methods described above may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, while the Plan believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date.

USGAAP provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy under USGAAP are described below:

Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2 - Quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in inactive markets; inputs other than quoted prices that are observable for the asset or liability; or inputs that are derived principally from or corroborated by observable market data by correlation or other means.

Level 3 - Unobservable inputs based on the Plan's assumptions used to measure assets and liabilities at fair value.

A financial instrument's classification within the hierarchy is determined based on the lowest level input that is significant to the fair value measurement.

13
Eastman Investment and Employee Stock Ownership Plan
Notes to Financial Statements



The following tables set forth by level, within the fair value hierarchy, the Plan's assets at fair value as of December 31, 2015 and 2014:
(in thousands)
 
December 31, 2015
 
December 31, 2014
Description
 
Quoted Prices in Active Markets for Identical Assets
(Level 1)
 
Quoted Prices in Active Markets for Identical Assets (Level 1)
Cash
 
$
6,150

 
$
6,307

Eastman common stock
 
361,084

 
405,692

Mutual funds
 
1,489,309

 
1,477,966

Self-directed brokerage account - mutual funds
 
31,881

 
30,756

Total
 
$
1,888,424

 
$
1,920,721


There are no redemption restrictions on the mutual fund investments. They are fully liquid and can be redeemed on a daily basis. There were no transfers between levels during 2015 and 2014. Also, there are no Level 2 or Level 3 investments at December 31, 2015 and 2014.

9.
OTHER RECEIVABLES AND OTHER LIABILITIES

Other receivables in the amount of $5.3 million and $3.9 million at December 31, 2015 and 2014, respectively, represent interest and dividends receivable, as well as receivables from the sale of investments. Other liabilities in the amount of $4.3 million and $3.4 million at December 31, 2015 and 2014, respectively, represent liabilities from the purchase of investments.

10.
DIVERSIFICATION FROM ESOP FUND

A participant may direct that all or any portion of his ESOP Fund account be transferred to other funds in the Plan without restrictions. During 2015 and 2014, $8.4 million and $10.9 million, respectively, were transferred from the ESOP Fund within the Plan in connection with this program.

11.
PLAN TERMINATION

Although it has not expressed any intent to do so, the Company has the right under the Plan to discontinue its contributions at any time and to terminate the Plan subject to the provisions of ERISA. In the event of termination, participant accounts will be distributed to individual participants in accordance with the Plan document and ERISA provisions.

12.
FEDERAL INCOME TAX STATUS

The Plan obtained its latest determination letter in May 2015, in which the Internal Revenue Service ("IRS") stated that the Plan is in compliance with the applicable requirements of the IRC. No provision for income taxes has been included in the Plan's financial statements.

USGAAP requires Plan management to evaluate tax positions taken by the Plan and recognize a tax liability (or asset) if the plan has taken an uncertain position that more likely than not would not be sustained upon examination by the IRS. The Plan Administrator has analyzed the tax positions by the Plan, and has concluded that as of December 31, 2015 and 2014, there are no uncertain positions taken or expected to be taken that would require recognition of a liability (or asset) or disclosure in the financial statements. The Plan is subject to routine audits by taxing jurisdictions; however, there are currently no audits for any tax periods in progress.

14
Eastman Investment and Employee Stock Ownership Plan
Notes to Financial Statements




13.
PLAN EXPENSES

Reasonable expenses of administering the Plan, unless paid by the Company, shall be paid by the Plan. For both 2015 and 2014, trustee fees associated with the Eastman Stock Fund and the Eastman ESOP Fund were paid with assets of those individual funds. Brokerage fees, transfer taxes, investment fees and other expenses incidental to the purchase and sale of securities and investments shall be included in the cost of such securities or investments or deducted from the sales proceeds. Administration fees for notes receivable from participants are deducted quarterly from the accounts of participants with outstanding notes receivable balances. Origination fees from notes receivable from participants are deducted from the participant's account at the inception of the note receivable. For 2015, all other expenses of the Plan related to plan oversight and administration were paid from assets of the funds. In 2014, the Company paid all other expenses of the Plan related to plan oversight and administration, including audit fees.

14.
RELATED PARTIES

Certain Plan investments are shares of mutual funds managed by the Trustee as defined by the Plan and, therefore, these transactions qualify as party-in-interest transactions, which are exempt from prohibited transaction rules. The Plan also invests in the common stock of the Plan Sponsor as well as notes receivable from Plan participants, both of which qualify as parties-in-interest to the Plan and are exempt from prohibited transaction rules (see Note 6).

15.
PLAN TRANSFERS

Effective December 5, 2014, Eastman acquired Taminco Corporation. The Taminco US Inc. 401(k) Plan was originally established effective December 1, 2006 and effective January 4, 2016 the assets were merged into the Plan.

Effective December 11, 2014, Eastman acquired Commonwealth Laminating & Coating, Inc. The Commonwealth Laminating & Coating, Inc. 401(k) Plan (the "Commonwealth Laminating & Coating Plan") was originally established effective September 1, 2002 and effective May 1, 2015, the assets were merged into the Plan.

No plan transfers were completed in 2014.

16.
SUBSEQUENT EVENTS

The Plan Administrator has evaluated events occurring between December 31, 2015 and June 27, 2016 for proper recording and disclosure in these financial statements.


15

















Supplemental Schedule


16
Eastman Investment and Employee Stock Ownership Plan
Schedule H, Line 4 (i) - Schedule of Assets (Held at End of Year)
December 31, 2015
(in thousands)

(a)
(b)
 Identity of issue, borrower, lessor, or similar party
(c)
 Description of investment, including maturity date, rate of interest, collateral, par or maturity value
(d)
Historical Cost
(e)
Current Value
*
Eastman Chemical Company
Common Stock, Participant directed, 3,150 shares
**

$
212,629

*
Eastman Chemical Company
Common Stock, Non-Participant directed, 2,199 shares
77,606

148,455

 
Subtotal - Common Stock
 
 
361,084

*
Fidelity Management Trust Company
Interest Bearing Cash, Participant directed
**

4,888

*
Fidelity Management Trust Company
Interest Bearing Cash, Non-Participant directed
1,262

1,262

 
Subtotal - Cash
 
 
6,150

 
DFA US SMALL CAP I
Registered Investment Company, 1,361 shares
**

38,596

*
Fidelity PURITAN K
Registered Investment Company, 6,290 shares
**

127,748

*
Fidelity MAGELLAN K
Registered Investment Company, 1,225 shares
**

109,362

*
Fidelity CONTRAFUND K
Registered Investment Company, 1,741 shares
**

172,191

*
FID INTL DISCOVERY K
Registered Investment Company, 1,449 shares
**

56,955

*
Fidelity BLUE CHIP GR K
Registered Investment Company, 1,320 shares
**

91,148

*
FMMT RETIRE GOV II
Registered Investment Company, 427 shares
**

427

*
Fidelity Freedom K INCOME
Registered Investment Company, 931 shares
**

10,579

*
Fidelity Freedom K 2005
Registered Investment Company, 500 shares
**

6,191

*
Fidelity Freedom K 2010
Registered Investment Company, 1,294 shares
**

15,969

*
Fidelity Freedom K 2015
Registered Investment Company, 2,263 shares
**

28,966

*
Fidelity Freedom K 2020
Registered Investment Company, 6,646 shares
**

89,857

*
Fidelity Freedom K 2025
Registered Investment Company, 5,051 shares
**

71,214

*
Fidelity Freedom K 2030
Registered Investment Company, 5,306 shares
**

76,041

*
Fidelity Freedom K 2035
Registered Investment Company, 2,659 shares
**

39,240

*
Fidelity Freedom K 2040
Registered Investment Company, 2,483 shares
**

36,720

*
Fidelity Freedom K 2045
Registered Investment Company, 1,306 shares
**

19,861

*
Fidelity Freedom K 2050
Registered Investment Company, 2,161 shares
**

33,122

*
Fidelity Freedom K 2055
Registered Investment Company, 259 shares
**

2,935

*
Fidelity Freedom K 2060
Registered Investment Company, 45 shares
**

447

 
CLIPPER FUND
Registered Investment Company, 195 shares
**

20,312

 
FKLN SMMIDCP GRTH R6
Registered Investment Company, 1,490 shares
**

51,949

 
JPM EQUITY INCOME R5
Registered Investment Company, 2,863 shares
**

38,882

 
NB GENESIS - INST CL
Registered Investment Company, 1,223 shares
**

62,449

 
PIM TOTAL RT INST
Registered Investment Company, 9,321 shares
**

93,865

*
SPTN 500 INDEX INST
Registered Investment Company, 1,489 shares
**

106,956

*
SPTN EXT MKT IDX ADV
Registered Investment Company, 827 shares
**

41,496

*
SPTN INTL INDEX INS
Registered Investment Company, 478 shares
**

17,170

*
SPTN US BOND IDX ADV
Registered Investment Company, 806 shares
**

9,256

 
TEMPLETON FOREIGN R6
Registered Investment Company, 2,595 shares
**

16,299

 
TIFI TEMPL EMG MKTS
Registered Investment Company, 851 shares
**

3,106

 
Sub-total Mutual Funds
 
 
1,489,309



17
Eastman Investment and Employee Stock Ownership Plan
Schedule H, Line 4 (i) - Schedule of Assets (Held at End of Year)
December 31, 2015
(in thousands)

(a)
(b)
 Identity of issue, borrower, lessor, or similar party
(c)
 Description of investment, including maturity date, rate of interest, collateral, par or maturity value
(d)
Historical Cost
(e)
Current Value
*
Fidelity
Cash
**
13,895

 
NISA Cash
Cash
**
74

 
SSBK GOVT STIF FUND
Govt STIF Fund MM
**
552

 
AB INBEV FIN 2.15% 2/1/19
Corporate Bond 2.15% 2/1/19
**
833

 
ABBVIE INC 1.8% 05/14/18
Corporate Bond 1.8% 05/14/18
**
1,474

 
ABBVIE INC 2.5% 05/14/20
Corporate Bond 2.5% 05/14/20
**
1,404

 
ACE INA HOLDING 2.3% 11/03/20
Corporate Bond 2.3% 11/03/20
**
1,034

 
ACTAVIS FUNDING 2.35% 03/12/18
Corporate Bond 2.35% 03/12/18
**
1,466

 
ACTAVIS FUNDING SCS 3% 3/12/20
Corporate Bond SCS 3% 3/12/20
**
622

 
ALLYA 2015-1 A3 1.39% 09/19
Mortgage back security 2015-1 A3 1.39% 09/19
**
1,048

 
ALLYL 2014-SN1 A3 .75% 02/17
Mortgage back security 2014-SN1 A3 .75% 02/17
**
934

 
ALLYL 2015-SN1 A3 1.21% 03/17
Mortgage back security 2015-SN1 A3 1.21% 03/17
**
336

 
AMERICAN CAMPUS 3.35% 10/01/20
Corporate Bond 3.35% 10/01/20
**
552

 
AMERICAN EX CRD 2.125% 3/18/19
Corporate Bond 2.125% 3/18/19
**
875

 
AMERICAN GENERAL LIFE
Synthetic GIC - 1.902 % (fair value to contract value)
**
(2,043
)
 
AMERICAN INTL 5.85% 1/16/18
Corporate Bond 5.85% 1/16/18
**
1,026

 
AMERICAN INTL GROUP 2.3% 7/19
Corporate Bond 2.3% 7/19
**
391

 
AMGEN INC 2.125% 05/01/2020
Corporate Bond 2.125% 05/01/2020
**
767

 
AMGEN INC 2.2% 05/22/19
Corporate Bond 2.2% 05/22/19
**
621

 
AMOT 2015-3 A 1.63% 05/20
Mortgage back security 2015-3 A 1.63% 05/20
**
1,467

 
AMPHENOL CORP 3.125% 09/15/21
Corporate Bond 3.125% 09/15/21
**
252

 
AMXCA 2013-3 A .98% 05/19
Mortgage back security 2013-3 A .98% 05/19
**
861

 
AMXCA 2014-2 A 1.26% 01/20
Mortgage back security 2014-2 A 1.26% 01/20
**
1,658

 
AMXCA 2014-3 A 1.49% 04/20
Mortgage back security 2014-3 A 1.49% 04/20
**
2,302

 
AMXCA 2014-4 A 1.43% 06/20
Mortgage back security 2014-4 A 1.43% 06/20
**
1,888

 
ANGLO AMER CAP 4.125 4/21 144A
Corporate Bond 4.125 4/21 144A
**
590

 
APPLE INC 1% 5/3/18
Corporate Bond 1% 5/3/18
**
2,885

 
APPLE INC 2.1% 05/06/19
Corporate Bond 2.1% 05/06/19
**
274

 
APPLE INC 2.85% 5/6/21
Corporate Bond 2.85% 5/6/21
**
1,286

 
ASIAN DEV BK YANK5.593 7/16/18
Corporate Bond 5.593 7/16/18
**
84

 
ASTRAZENECA PLC 2.375% 11/20
Corporate Bond 2.375% 11/20
**
354

 
AT&T INC 2.45% 06/30/20
Corporate Bond 2.45% 06/30/20
**
1,085

 
AT&T INC 3% 2/15/22
Corporate Bond 3% 2/15/22
**
724

 
AUST & NZ BKG NY 2.25% 6/13/19
Corporate Bond 2.25% 6/13/19
**
1,249

 
AUSTRALIA & NZ 1.45% 5/15/18
Corporate Bond 1.45% 5/15/18
**
2,253

 
AUSTRALIA & NZ 1.875% 10/06/17
Corporate Bond 1.875% 10/06/17
**
772

 
AUTOMATIC DATA 2.25% 9/15/20
Corporate Bond 2.25% 9/15/20
**
384

 
AVALONBAY COMM 3.625% 10/1/20
Corporate Bond 3.625% 10/1/20
**
423

 
AXIS SPECIALTY 2.65% 04/01/19
Corporate Bond 2.65% 04/01/19
**
110

 
BACCT 2015-A2 A 1.36% 09/20
Mortgage back security 2015-A2 A 1.36% 09/20
**
1,800

 
BACM 2006-4 A1A CSTR 7/46
Mortgage back security 2006-4 A1A CSTR 7/46
**
1,834

 
BACM 2006-4 A4 5.634% 07/46
Mortgage back security 2006-4 A4 5.634% 07/46
**
1,485

 
BAE SYSTEMS 2.85% 12/15/20
Corporate Bond 2.85% 12/15/20
**
1,419

 
BANK AMER FDG CRP 2.6% 1/15/19
Corporate Bond 2.6% 1/15/19
**
3,724

 
BANK AMER NA 1.75% 06/05/18
Corporate Bond 1.75% 06/05/18
**
1,464

 
BANK AMERICA CORP 2.65% 4/1/19
Corporate Bond 2.65% 4/1/19
**
1,939

 
BANK NOVA SCOTIA 2.8% 07/21/21
Corporate Bond 2.8% 07/21/21
**
835

 
BANK OF AMER 2.625% 10/19/20
Corporate Bond 2.625% 10/19/20
**
541

 
BANK OF AMERICA CRP MTN 2 1/18
Corporate Bond 2 1/18
**
1,512

 
BANK T-M UFJ 1.65% 2/26/18 144
Corporate Bond 1.65% 2/26/18 144
**
758

 
BANK T-M UFJ 2.35% 9/8/19 144A
Corporate Bond 2.35% 9/8/19 144A
**
762


18
Eastman Investment and Employee Stock Ownership Plan
Schedule H, Line 4 (i) - Schedule of Assets (Held at End of Year)
December 31, 2015
(in thousands)

(a)
(b)
 Identity of issue, borrower, lessor, or similar party
(c)
 Description of investment, including maturity date, rate of interest, collateral, par or maturity value
(d)
Historical Cost
(e)
Current Value
 
BANK TOKYO-MSB 2.3% 03/20 144A
Corporate Bond 2.3% 03/20 144A
**
715

 
BANK OF TOKYO - MITSUBUSHI
Synthetic GIC - 1.897 % (fair value to contract value)
**
(2,038
)
 
BAPTIST HEALTH 4.59% 8/15/21
Corporate Bond 4.59% 8/15/21
**
253

 
BARCLAYS BNK PLC 2.5% 02/20/19
Corporate Bond 2.5% 02/20/19
**
1,355

 
BARCLAYS PLC 2.75% 11/8/19
Corporate Bond 2.75% 11/8/19
**
833

 
BARCLAYS PLC 2.875% 06/20
Corporate Bond 2.875% 06/20
**
800

 
BAT INTL FIN 2.75% 6/20 144A
Corporate Bond 2.75% 6/20 144A
**
1,462

 
BAT INTL FIN 3.5% 6/22 144A
Corporate Bond 3.5% 6/22 144A
**
1,130

 
BAXALTA INC 2.875 6/23/20 144A
Corporate Bond 2.875 6/23/20 144A
**
302

 
BAYER US FIN 3% 10/8/21 144A
Corporate Bond 3% 10/8/21 144A
**
409

 
BAYER US FIN 2.375% 10/19 144 A
Corporate Bond 2.375% 10/19 144 A
**
948

 
BEAR 7.25% 2/01/18
Corporate Bond 7.25% 2/01/18
**
351

 
BEAR STEARNS CO 6.4% 10/2/17
Corporate Bond 6.4% 10/2/17
**
661

 
BECTON DICKINSO 2.675% 12/19
Corporate Bond 2.675% 12/19
**
237

 
BMWLT 2014-1 A3 .73% 02/17
Mortgage back security 2014-1 A3 .73% 02/17
**
1,153

 
BNP PARIBA 2.45% 03/17/19
Corporate Bond 2.45% 03/17/19
**
870

 
BOA 2.05% 12/07/18
Corporate Bond 2.05% 12/07/18
**
1,064

 
BOARDWALK PIPELN 5.875
Corporate Bond 5.875
**
371

 
BOSTON PT LTD MTN 5.875% 10/19
Corporate Bond 5.875% 10/19
**
477

 
BPCE SA 1.625% 2/10/17
Corporate Bond 1.625% 2/10/17
**
1,225

 
BPCE SA 2.5% 7/15/19
Corporate Bond 2.5% 7/15/19
**
832

 
BPCM 1.375% 5/10/18
Corporate Bond 1.375% 5/10/18
**
761

 
BRITISH TELECOM PLC 2.35% 2/19
Corporate Bond 2.35% 2/19
**
502

 
BSCMS 2006-PW12 A1A CSTR 9/38
Mortgage back security 2006-PW12 A1A CSTR 9/38
**
790

 
BSCMS 2006-PW13 A1A 5.533 9/41
Mortgage back security 2006-PW13 A1A 5.533 9/41
**
1,241

 
BSCMS 2006-PW14 A1A 5.189
Mortgage back security 2006-PW14 A1A 5.189
**
533

 
BSCMS 2006-T22 A1A CSTR 4/38
Mortgage back security 2006-T22 A1A CSTR 4/38
**
811

 
CAPITAL ONE BK 2.25% 2/13/19
Corporate Bond 2.25% 2/13/19
**
1,627

 
CAPITAL ONE BK 2.35% 08/17/18
Corporate Bond 2.35% 08/17/18
**
920

 
CAPITAL ONE FIN 2.45% 04/24/19
Corporate Bond 2.45% 04/24/19
**
695

 
CARDINAL HEALTH 1.95% 6/15/18
Corporate Bond 1.95% 6/15/18
**
213

 
CARMX 2014-4 A3 1.25% 11/19
Mortgage back security 2014-4 A3 1.25% 11/19
**
757

 
CARMX 2015-1 A3 1.38% 11/19
Mortgage back security 2015-1 A3 1.38% 11/19
**
719

 
CARMX 2015-3 A3 1.63% 06/20
Mortgage back security 2015-3 A3 1.63% 06/20
**
698

 
CCCIT 13-A3 A3 1.11% 7/23/18
Mortgage back security 13-A3 A3 1.11% 7/23/18
**
1,478

 
CCCIT 2013-A6 A6 1.32% 09/18
Mortgage back security 2013-A6 A6 1.32% 09/18
**
2,091

 
CCCIT 2014-A2 A2 1.02% 02/19
Mortgage back security 2014-A2 A2 1.02% 02/19
**
1,710

 
CCCIT 2014-A4 A4 1.23% 04/19
Mortgage back security 2014-A4 A4 1.23% 04/19
**
1,687

 
CCCIT 2014-A6 A6 2.15% 07/21
Mortgage back security 2014-A6 A6 2.15% 07/21
**
1,665

 
CCCIT 2014-A8 A8 1.73% 04/20
Mortgage back security 2014-A8 A8 1.73% 04/20
**
1,787

 
CD 2006-CD3 A5 5.617% 10/48
Mortgage back security 2006-CD3 A5 5.617% 10/48
**
129

 
CD 2007-CD5 A1A 5.8% 11/44
Mortgage back security 2007-CD5 A1A 5.8% 11/44
**
1,384

 
CELGENE CORP 2.125% 8/15/18
Corporate Bond 2.125% 8/15/18
**
668

 
CGCMT 13-GC11 A1 0.672% 12/17
Mortgage back security 13-GC11 A1 0.672% 12/17
**
289

 
CGCMT 2006-C4 A1A CSTR 03/49
Mortgage back security 2006-C4 A1A CSTR 03/49
**
418

 
CGCMT 2006-C5 A1A 5.425 10/49
Mortgage back security 2006-C5 A1A 5.425 10/49
**
2,213

 
CGCMT 2006-C5 A4 5.431 10/49
Mortgage back security 2006-C5 A4 5.431 10/49
**
794

 
CHAIT 15-A7 A7 1.62% 7/20
Mortgage back security 15-A7 A7 1.62% 7/20
**
1,485

 
CHAIT 2013-A8 A8 1.01% 10/18
Mortgage back security 2013-A8 A8 1.01% 10/18
**
1,774

 
CHAIT 2014-A1 A 1.15% 01/19
Mortgage back security 2014-A1 A 1.15% 01/19
**
3,409


19
Eastman Investment and Employee Stock Ownership Plan
Schedule H, Line 4 (i) - Schedule of Assets (Held at End of Year)
December 31, 2015
(in thousands)

(a)
(b)
 Identity of issue, borrower, lessor, or similar party
(c)
 Description of investment, including maturity date, rate of interest, collateral, par or maturity value
(d)
Historical Cost
(e)
Current Value
 
CHAIT 2014-A7 A 1.38% 11/19
Mortgage back security 2014-A7 A 1.38% 11/19
**
1,895

 
CHAIT 2015-A2 A 1.59% 02/20
Mortgage back security 2015-A2 A 1.59% 02/20
**
2,752

 
CHAIT 2015-A5 A 1.35% 04/20
Mortgage back security 2015-A5 A 1.35% 04/20
**
1,433

 
CHEVRON CORP 2.193% 11/15/19
Corporate Bond 2.193% 11/15/19
**
747

 
CHEVRON CORP NEW 1.961% 03/20
Corporate Bond 1.961% 03/20
**
1,323

 
CHEVRON PHIL 2.45% 5/1/20 144A
Corporate Bond 2.45% 5/1/20 144A
**
669

 
CISCO SYSTEMS 2.45% 6/15/20
Corporate Bond 2.45% 6/15/20
**
738

 
CITIGROUP INC 1.7% 4/27/18
Corporate Bond 1.7% 4/27/18
**
1,154

 
CITIGROUP INC 2.05% 12/18
Corporate Bond 2.05% 12/18
**
448

 
CITIGROUP INC 2.5% 7/29/19
Corporate Bond 2.5% 7/29/19
**
817

 
CITIGROUP INC 2.55% 04/08/19
Corporate Bond 2.55% 04/08/19
**
4,272

 
CITIZENS BK MTN 2.45% 12/04/19
Corporate Bond 2.45% 12/04/19
**
1,160

 
COLGATE-PALMOLIVE 0.9% 5/1/18
Corporate Bond 0.9% 5/1/18
**
1,002

 
COMERICA INC 2.125% 05/23/19
Corporate Bond 2.125% 05/23/19
**
495

 
COMET 2013-A3 A3 .96% 9/19
Mortgage back security 2013-A3 A3 .96% 9/19
**
2,040

 
COMET 2014-A2 A2 1.26% 01/20
Mortgage back security 2014-A2 A2 1.26% 01/20
**
2,609

 
COMET 2014-A5 A 1.48% 07/20
Mortgage back security 2014-A5 A 1.48% 07/20
**
2,318

 
COMET 2015-A1 A 1.39% 01/21
Mortgage back security 2015-A1 A 1.39% 01/21
**
1,423

 
COMET 2015-A5 A5 1.59% 5/21
Mortgage back security 2015-A5 A5 1.59% 5/21
**
1,497

 
COMM 06-C8 A4 5.306% 12/46
Mortgage back security 06-C8 A4 5.306% 12/46
**
1,525

 
COMM 2006-C7 A1A CSTR 6/46
Mortgage back security 2006-C7 A1A CSTR 6/46
**
1,155

 
COMM 2006-C7 A4 CSTR 6/46
Mortgage back security 2006-C7 A4 CSTR 6/46
**
248

 
COMM 2006-C8 A1A 5.292 12/46
Mortgage back security 2006-C8 A1A 5.292 12/46
**
1,413

 
COMM 2012-CR1 A2 2.35% 5/45
Mortgage back security 2012-CR1 A2 2.35% 5/45
**
470

 
COMM 2012-CR2 A1 .824% 08/45
Mortgage back security 2012-CR2 A1 .824% 08/45
**
39

 
COMM 2012-CR3 ASB 2.372% 11/45
Mortgage back security 2012-CR3 ASB 2.372% 11/45
**
680

 
COMM 2012-CR5 A1 0.673% 12/45
Mortgage back security 2012-CR5 A1 0.673% 12/45
**
164

 
COMM 2013-CR9 A1 1.3440% 7/45
Mortgage back security 2013-CR9 A1 1.3440% 7/45
**
183

 
COMM 2013-LC6 A1 .7240% 1/46
Mortgage back security 2013-LC6 A1 .7240% 1/46
**
225

 
COMM 2014-CR17 A2 3.012% 05/47
Mortgage back security 2014-CR17 A2 3.012% 05/47
**
1,217

 
COMM 2014-CR18 A2 2.924% 07/47
Mortgage back security 2014-CR18 A2 2.924% 07/47
**
937

 
COMM 2015-CR22 A2 2.856% 03/48
Mortgage back security 2015-CR22 A2 2.856% 03/48
**
493

 
COMMONWEALTH BK NY 2.3% 9/6/19
Corporate Bond 2.3% 9/6/19
**
1,156

 
COMMONWEALTH NY 2.25% 03/13/19
Corporate Bond 2.25% 03/13/19
**
1,712

 
COMMWLTH BK ASTL NYB 2.3% 3/20
Corporate Bond 2.3% 3/20
**
708

 
CONOCOPHILLIP CO 2.2% 05/15/20
Corporate Bond 2.2% 05/15/20
**
454

 
CORNING INC 1.45% 11/15/17
Corporate Bond 1.45% 11/15/17
**
99

 
CREDIT SUISSE 3.125 12/20 144A
Corporate Bond 3.125 12/20 144A
**
249

 
CREDIT SUISSE NY 2.3% 5/19
Corporate Bond 2.3% 5/19
**
1,645

 
CREDIT SUISSE NY 3% 10/29/21
Corporate Bond 3% 10/29/21
**
761

 
CVS HEALTH CORP 1.9% 07/20/18
Corporate Bond 1.9% 07/20/18
**
701

 
CVS HEALTH CORP 2.8% 07/20/20
Corporate Bond 2.8% 07/20/20
**
683

 
CWCI 2007-C2 A3 5.484% 04/47
Mortgage back security 2007-C2 A3 5.484% 04/47
**
754

 
DAIMLER FIN 2.25% 3/20 144A
Corporate Bond 2.25% 3/20 144A
**
707

 
DAIMLER FIN 2.375% 8/18 144A
Corporate Bond 2.375% 8/18 144A
**
1,011

 
DAIMLER FIN NA 2.25% 9/19 144A
Corporate Bond 2.25% 9/19 144A
**
1,668

 
DANAHER CORP 2.4% 09/15/20
Corporate Bond 2.4% 09/15/20
**
257

 
DCENT 2013-A5 A5 1.04% 04/19
Mortgage back security 2013-A5 A5 1.04% 04/19
**
1,758

 
DCENT 2014-A3 A3 1.22% 10/19
Mortgage back security 2014-A3 A3 1.22% 10/19
**
2,613

 
DCENT 2014-A4 A4 2.12% 12/21
Mortgage back security 2014-A4 A4 2.12% 12/21
**
1,601

 
DCENT 2014-A5 A 1.39% 04/20
Mortgage back security 2014-A5 A 1.39% 04/20
**
2,295


20
Eastman Investment and Employee Stock Ownership Plan
Schedule H, Line 4 (i) - Schedule of Assets (Held at End of Year)
December 31, 2015
(in thousands)

(a)
(b)
 Identity of issue, borrower, lessor, or similar party
(c)
 Description of investment, including maturity date, rate of interest, collateral, par or maturity value
(d)
Historical Cost
(e)
Current Value
 
DEERE JOHN CAP CORP 1.6% 7/18
Corporate Bond 1.6% 7/18
**
268

 
DEUTSCHE BANK AG 1.4% 2/13/17
Corporate Bond 1.4% 2/13/17
**
1,220

 
DEUTSCHE BANK AG 2.5% 2/13/19
Corporate Bond 2.5% 2/13/19
**
2,543

 
DIGITAL REALTY 3.95% 07/01/22
Corporate Bond 3.95% 07/01/22
**
498

 
DIGNITY HEALTH 2.637% 11/1/19
Corporate Bond 2.637% 11/1/19
**
202

 
DISCOVER BANK 2.6% 11/13/18
Corporate Bond 2.6% 11/13/18
**
737

 
DISCOVER BANK 3.1% 06/20
Corporate Bond 3.1% 06/20
**
708

 
DOMINION GAS HLDGS 2.5% 12/19
Corporate Bond 2.5% 12/19
**
260

 
DOMINION RESOURCE 1.9% 6/15/18
Corporate Bond 1.9% 6/15/18
**
1,171

 
ENABLE MID LP 2.4% 05/15/19
Corporate Bond 2.4% 05/15/19
**
571

 
ENERGY TRANSFER 2.5% 06/15/18
Corporate Bond 2.5% 06/15/18
**
724

 
ENTERPRISE PRD 1.65% 05/07/18
Corporate Bond 1.65% 05/07/18
**
294

 
ENTERPRISE PRD 2.55% 10/15/19
Corporate Bond 2.55% 10/15/19
**
151

 
ERP OPERATING LP 2.375% 7/19
Corporate Bond 2.375% 7/19
**
552

 
ERP OPERATING LP 3.375% 6/1/25
Corporate Bond 3.375% 6/1/25
**
734

 
EXELON CORP 1.55% 6/9/17
Corporate Bond 1.55% 6/9/17
**
145

 
EXELON CORP 2.85% 6/15/20
Corporate Bond 2.85% 6/15/20
**
1,044

 
FHLB 0.875% 05/24/17
Government Bond 0.875% 05/24/17
**
2,664

 
FHLG 5.50% 3/34 #G01665
Government Bond 5.50% 3/34 #G01665
**
200

 
FHLG 5.50% 5/34 #Z40042
Government Bond 5.50% 5/34 #Z40042
**
1,524

 
FHLG 10YR 3.00% 8/21 #J16393
Government Bond 10YR 3.00% 8/21 #J16393
**
232

 
FHLG 10YR 3.00% 8/21 #J16442
Government Bond 10YR 3.00% 8/21 #J16442
**
210

 
FHLG 15YR 4.00% 4/26 #E02867
Government Bond 15YR 4.00% 4/26 #E02867
**
193

 
FHLG 15YR 4.00% 9/25 #E02787
Government Bond 15YR 4.00% 9/25 #E02787
**
382

 
FHLG 15YR 4.50% 8/18 #E98688
Government Bond 15YR 4.50% 8/18 #E98688
**
101

 
FHLG 15YR 4.50% 9/18 #E99205
Government Bond 15YR 4.50% 9/18 #E99205
**
40

 
FHLG 15YR 4.50% 10/18 #E99833
Government Bond 15YR 4.50% 10/18 #E99833
**
55

 
FHLG 15YR 4.50% 11/18 #B10931
Government Bond 15YR 4.50% 11/18 #B10931
**
34

 
FHLG 15YR 5.00% 4/20 #G13598
Government Bond 15YR 5.00% 4/20 #G13598
**
184

 
FHLG 15YR 3.5% 08/30#G15273
Government Bond 15YR 3.5% 08/30#G15273
**
1,839

 
FHLG 25YR 5.50% 7/35 #G05815
Government Bond 25YR 5.50% 7/35 #G05815
**
140

 
FHLM AR 12M+187.9 10/42#849255
Government Bond 12M+187.9 10/42#849255
**
581

 
FHLM ARM 2.98% 8/41 #1B8533
Government Bond 2.98% 8/41 #1B8533
**
171

 
FHLM ARM 3.07% 9/41 #1B8608
Government Bond 3.07% 9/41 #1B8608
**
109

 
FHLM ARM 3.58% 4/40 #1B4702
Government Bond 3.58% 4/40 #1B4702
**
92

 
FHLM ARM 4.199% 8/36 #848185
Government Bond 4.199% 8/36 #848185
**
124

 
FHLM ARM 4.941% 11/35 #1J1228
Government Bond 4.941% 11/35 #1J1228
**
109

 
FHLM ARM 3.224% 4/41#1B8179
Government Bond 3.224% 4/41#1B8179
**
76

 
FHLM ARM 3.242% 9/1/41#1B8659
Government Bond 3.242% 9/1/41#1B8659
**
71

 
FHLM ARM 3.283 6/1/41
Government Bond 3.283 6/1/41
**
81

 
FHLM ARM 3.464% 5/1/41#1B8304
Government Bond 3.464% 5/1/41#1B8304
**
64

 
FHLM ARM 3.53% 4/40 #1B4657
Government Bond 3.53% 4/40 #1B4657
**
93

 
FHLM ARM 3.627% 6/1/41#1B8372
Government Bond 3.627% 6/1/41#1B8372
**
121

 
FHLM ARM 3.717% 05/41#1B8124
Government Bond 3.717% 05/41#1B8124
**
100

 
FHLMC 0.875% 02/22/17
Government Bond 0.875% 02/22/17
**
4,099

 
FHR 2015-4472 WL 3% 05/45
Mortgage back security 2015-4472 WL 3% 05/45
**
1,696

 
FHR 3415 PC 5% 12/37
Mortgage back security 3415 PC 5% 12/37
**
150

 
FHR 3741 HD 3% 11/15/39
Mortgage back security 3741 HD 3% 11/15/39
**
337

 
FHR 3820 DA 4% 11/35
Mortgage back security 3820 DA 4% 11/35
**
380

 
FHR 4046 LA 3% 11/2026
Mortgage back security 4046 LA 3% 11/2026
**
959


21
Eastman Investment and Employee Stock Ownership Plan
Schedule H, Line 4 (i) - Schedule of Assets (Held at End of Year)
December 31, 2015
(in thousands)

(a)
(b)
 Identity of issue, borrower, lessor, or similar party
(c)
 Description of investment, including maturity date, rate of interest, collateral, par or maturity value
(d)
Historical Cost
(e)
Current Value
 
FHR SER 4221 CLS GA 1.4% 7/23
Mortgage back security 4221 CLS GA 1.4% 7/23
**
1,483

*
Fidelity short term cash fund
Fid Inst Cash Port: MM Fund Class 1 SHS F/N/A
**
10,685

 
FIFTH THIRD BAN 2.375% 4/25/19
Corporate Bond 2.375% 4/25/19
**
857

 
FIFTH THIRD BAN 2.875% 10/1/21
Corporate Bond 2.875% 10/1/21
**
763

 
FIFTH THIRD BAN 2.875% 7/27/20
Corporate Bond 2.875% 7/27/20
**
455

 
FIFTH THIRD BANK 2.15% 8/20/18
Corporate Bond 2.15% 8/20/18
**
1,124

 
FISCAL YR 05 4.93% 4/1/20 ETM
Corporate Bond 05 4.93% 4/1/20 ETM
**
126

 
FNMA 6.50% 7/32 #545759
Government Bond 6.50% 7/32 #545759
**
58

 
FNMA 6.50% 7/32 #545762
Government Bond 6.50% 7/32 #545762
**
14

 
FNMA 6.50% 7/35 #745092
Government Bond 6.50% 7/35 #745092
**
24

 
FNMA 6.50% 8/36 #888034
Government Bond 6.50% 8/36 #888034
**
39

 
FNMA 6.50% 12/32 #735415
Government Bond 6.50% 12/32 #735415
**
22

 
FNMA 1.125% 07/20/18
Government Bond 1.125% 07/20/18
**
1,175

 
FNMA 1.125% 12/14/18
Government Bond 1.125% 12/14/18
**
8,610

 
FNMA 1.5% 06/22/20
Government Bond 1.5% 06/22/20
**
2,567

 
FNMA 1.5% 11/30/20
Government Bond 1.5% 11/30/20
**
7,167

 
FNMA 1.875% 09/18/18
Government Bond 1.875% 09/18/18
**
8,733

 
FNMA 1.875% 12/28/20
Government Bond 1.875% 12/28/20
**
9,017

 
FNMA 15YR 3.50% 1/26 #AL1168
Government Bond 15YR 3.50% 1/26 #AL1168
**
326

 
FNMA 15YR 3.50% 3/27 #AL1746
Government Bond 15YR 3.50% 3/27 #AL1746
**
1,341

 
FNMA 15YR 6.00% 2/18 #684153
Government Bond 15YR 6.00% 2/18 #684153
**
2

 
FNMA 15YR 6.00% 11/17 #671380
Government Bond 15YR 6.00% 11/17 #671380
**
7

 
FNMA 15YR 6.00% 11/17 #672789
Government Bond 15YR 6.00% 11/17 #672789
**
1

 
FNMA 15YR 6.00% 12/17 #673965
Government Bond 15YR 6.00% 12/17 #673965
**
7

 
FNMA 15YR 6.50% 4/17 #637244
Government Bond 15YR 6.50% 4/17 #637244
**
10

 
FNMA 15YR 7.00% 2/18 #693327
Government Bond 15YR 7.00% 2/18 #693327
**
22

 
FNMA 15YR 7.00% 4/17 #636135
Government Bond 15YR 7.00% 4/17 #636135
**
9

 
FNMA 15YR 7.00% 8/16 #599602
Government Bond 15YR 7.00% 8/16 #599602
**
8

 
FNMA 15YR 3.5% 01/27 #AX1909
Government Bond 15YR 3.5% 01/27 #AX1909
**
605

 
FNMA 15YR 3.5% 07/26#AI7819
Government Bond 15YR 3.5% 07/26#AI7819
**
133

 
FNMA 15YR 3.5% 09/29#AL5878
Government Bond 15YR 3.5% 09/29#AL5878
**
1,277

 
FNMA 15YR 3.5% 10/29#AL5851
Government Bond 15YR 3.5% 10/29#AL5851
**
515

 
FNMA 5.50% 11/34 #310105
Government Bond 5.50% 11/34 #310105
**
1,106

 
FNMA 6.50% 12/35 #AD0723
Government Bond 6.50% 12/35 #AD0723
**
213

 
FNMA 6.50% 8/36 #888544
Government Bond 6.50% 8/36 #888544
**
176

 
FNMA 6.50% 8/36 #AE0746
Government Bond6.50% 8/36 #AE0746
**
144

 
FNMA ARM 2.61% 4/35 #995609
Government Bond 2.61% 4/35 #995609
**
56

 
FNMA ARM 2.74% 8/41 #AH5259
Government Bond 2.74% 8/41 #AH5259
**
294

 
FNMA ARM 3.01% 8/41 #AI4358
Government Bond 3.01% 8/41 #AI4358
**
62

 
FNMA ARM 3.37% 9/41 #AI8935
Government Bond 3.37% 9/41 #AI8935
**
101

 
FNMA ARM 3.47% 3/40 #AD0820
Government Bond 3.47% 3/40 #AD0820
**
105

 
FNMA ARM 3.60% 3/40 #AD1555
Government Bond 3.60% 3/40 #AD1555
**
122

 
FNMA ARM 4.21% 5/35 #889946
Government Bond 4.21% 5/35 #889946
**
140

 
FNMA ARM 4.285% 7/33#AD0066
Government Bond 4.285% 7/33#AD0066
**
231

 
FNMA ARM 4.30% 2/35 #995017
Government Bond 4.30% 2/35 #995017
**
157

 
FNMA ARM 4.53% 12/34 #802852
Government Bond 4.53% 12/34 #802852
**
79

 
FNMA ARM 4.68% 11/34 #735011
Government Bond 4.68% 11/34 #735011
**
89

 
FNMA ARM 06/42#AO2244
Government Bond 06/42#AO2244
**
99

 
FNMA ARM 09/41#AI9813
Government Bond 09/41#AI9813
**
67

 
FNMA ARM 10/41#AJ3399
Government Bond 10/41#AJ3399
**
31

 
FNMA ARM 11/40#AE6806
Government Bond 11/40#AE6806
**
58


22
Eastman Investment and Employee Stock Ownership Plan
Schedule H, Line 4 (i) - Schedule of Assets (Held at End of Year)
December 31, 2015
(in thousands)

(a)
(b)
 Identity of issue, borrower, lessor, or similar party
(c)
 Description of investment, including maturity date, rate of interest, collateral, par or maturity value
(d)
Historical Cost
(e)
Current Value
 
FNMA ARM 3.20% 1/40 #AC0599
Government Bond 3.20% 1/40 #AC0599
**
173

 
FNMA ARM 3.228% 7/41#AI3469
Government Bond 3.228% 7/41#AI3469
**
110

 
FNMA ARM 3.365% 10/41#AI6819
Government Bond 3.365% 10/41#AI6819
**
53

 
FNMA ARM 3.545% 07/41#AI6050
Government Bond 3.545% 07/41#AI6050
**
135

 
FNMA ARM 4.198% 11/34 #841068
Government Bond 4.198% 11/34 #841068
**
497

 
FNMA ARM 4.512% 12/36 #995606
Government Bond 4.512% 12/36 #995606
**
160

 
FNMA ARM 4.53% 10/35 #995414
Government Bond 4.53% 10/35 #995414
**
145

 
FNMA ARM 4.55% 10/35 #995415
Government Bond 4.55% 10/35 #995415
**
397

 
FNR 2012-94 E 3% 6/22
Mortgage back security 2012-94 E 3% 6/22
**
226

 
FNR 2013-16 GP 3% 03/33
Mortgage back security 2013-16 GP 3% 03/33
**
1,212

 
FNR 2014-83 P 3% 06/43
Mortgage back security 2014-83 P 3% 06/43
**
1,688

 
FNR 2015-28 JE 3% 05/45
Mortgage back security2015-28 JE 3% 05/45
**
3,026

 
FNR 2015-28 P 2.5% 5/45
Mortgage back security 2015-28 P 2.5% 5/45
**
3,862

 
FNR 2015-32 PA 3% 4/44
Mortgage back security 2015-32 PA 3% 4/44
**
1,333

 
FNR 2015-42 LE 3% 06/45
Mortgage back security2015-42 LE 3% 06/45
**
2,629

 
FNR 2015-49 LE 3% 07/45
Mortgage back security 2015-49 LE 3% 07/45
**
1,867

 
FNR 2015-54 LE 2.5% 07/45
Mortgage back security 2015-54 LE 2.5% 07/45
**
2,206

 
FORD MTR CR 2.875% 10/01/18
Corporate Bond 2.875% 10/01/18
**
1,776

 
FORD MTR CR LLC 2.24% 6/15/18
Corporate Bond 2.24% 6/15/18
**
888

 
FORDF 2015-4 A1 1.77% 8/20
Mortgage back security 2015-4 A1 1.77% 8/20
**
1,450

 
FORDL 15-A A3 1.13% 6/18
Mortgage back security 15-A A3 1.13% 6/18
**
1,767

 
FORDO 2015-A A3 1.28% 09/19
Mortgage back security 2015-A A3 1.28% 09/19
**
390

 
FORDO 2015-B A3 1.16% 11/19
Mortgage back security 2015-B A3 1.16% 11/19
**
646

 
FORDO 2015-C A3 1.41% 02/20
Mortgage back security 2015-C A3 1.41% 02/20
**
1,042

 
FREEPORT MC 2.375 3/15/18
Corporate Bond 2.375 3/15/18
**
199

 
GECMC 2006-C1 A1A CSTR 3/44
Mortgage back security 2006-C1 A1A CSTR 3/44
**
343

 
GENERAL ELEC CO 3.375% 3/11/24
Corporate Bond 3.375% 3/11/24
**
1,561

 
GILEAD SCIENCES 2.55% 9/1/20
Corporate Bond 2.55% 9/1/20
**
625

 
GMALT 2015-1 A3 1.53% 09/18
Mortgage back security 2015-1 A3 1.53% 09/18
**
1,219

 
GMALT 2015-2 A3 1.68% 12/18
Mortgage back security 2015-2 A3 1.68% 12/18
**
726

 
GNMA 30YR 5.5% 06/35#783800
Government Bond 30YR 5.5% 06/35#783800
**
268

 
GNMA 30YR 5.5% 11/35#783799
Government Bond 30YR 5.5% 11/35#783799
**
562

 
GNR 13-41 PA 2.5% 04/40
Mortgage back security 13-41 PA 2.5% 04/40
**
730

 
GOLDMAN SACHS GRP 2.625% 1/19
Corporate Bond 2.625% 1/19
**
2,011

 
GOLDMAN SACHS GRP 2.75 9/15/20
Corporate Bond 2.75 9/15/20
**
1,235

 
GSINC 2.375% 1/22/18
Corporate Bond 2.375% 1/22/18
**
784

 
GSMS 2006-GG8 A1A 5.547 11/39
Mortgage back security 2006-GG8 A1A 5.547 11/39
**
762

 
GSMS 2006-GG8 A4 5.56% 11/39
Mortgage back security 2006-GG8 A4 5.56% 11/39
**
1,564

 
GSMS 2013-GC10 A1 .696% 2/46
Mortgage back security 2013-GC10 A1 .696% 2/46
**
3

 
GSMS 2013-GC10 A2 1.84% 2/46
Mortgage back security 2013-GC10 A2 1.84% 2/46
**
311

 
GSMS 2013-GC12 A1 VAR 06/46
Mortgage back security 2013-GC12 A1 VAR 06/46
**
297

 
GSMS 2015-GC32 A2 3.062% 7/48
Mortgage back security 2015-GC32 A2 3.062% 7/48
**
1,145

 
HALLIBURTON CO 2.7% 11/15/20
Corporate Bond 2.7% 11/15/20
**
968

 
HAROT 2015-2 A3 1.04% 02/19
Mortgage back security 2015-2 A3 1.04% 02/19
**
880

 
HAROT 2015-3 A3 1.27% 04/19
Mortgage back security 2015-3 A3 1.27% 04/19
**
518

 
HAROT 2015-4 A3 1.23% 09/23/19
Mortgage back security 2015-4 A3 1.23% 09/23/19
**
929

 
HART 2015-B A3 1.12% 11/19
Mortgage back security 2015-B A3 1.12% 11/19
**
1,334

 
HART 2015-C A3 1.46% 02/20
Mortgage back security 2015-C A3 1.46% 02/20
**
1,028

 
HEALTH CARE REI 4% 06/01/25
Corporate Bond 4% 06/01/25
**
1,076

 
HEWLETT PACK2.85% 10/5/18 144A
Corporate Bond 2.85% 10/5/18 144A
**
1,781

 
HSBC 1.5% 05/15/18 144A
Corporate Bond 1.5% 05/15/18 144A
**
3,023


23
Eastman Investment and Employee Stock Ownership Plan
Schedule H, Line 4 (i) - Schedule of Assets (Held at End of Year)
December 31, 2015
(in thousands)

(a)
(b)
 Identity of issue, borrower, lessor, or similar party
(c)
 Description of investment, including maturity date, rate of interest, collateral, par or maturity value
(d)
Historical Cost
(e)
Current Value
 
HSBC USA INC 2.25% 06/23/19
Corporate Bond 2.25% 06/23/19
**
827

 
HSBC USA INC 2.35% 3/5/20
Corporate Bond 2.35% 3/5/20
**
179

 
HSBC USA INC NE 1.7% 03/05/18
Corporate Bond 1.7% 03/05/18
**
750

 
HUNTINGTON NATL BK 2.2% 4/1/19
Corporate Bond 2.2% 4/1/19
**
848

 
HYUNDAI CAP 2.875% 8/9/18 144A
Corporate Bond 2.875% 8/9/18 144A
**
585

 
HYUNDAI CAP AME 2.55 2/19 144A
Corporate Bond 2.55 2/19 144A
**
802

 
IBRD 1% 06/15/18
Corporate Bond 1% 06/15/18
**
396

 
INGERSOLL-RND LX 2.625% 5/1/20
Corporate Bond 2.625% 5/1/20
**
203

 
INTERCONT EXCH 2.5% 10/15/18
Corporate Bond 2.5% 10/15/18
**
620

 
INTERCONT EXCH 2.75% 12/01/20
Corporate Bond 2.75% 12/01/20
**
248

 
JERSEY CENT PWR&LT 7.35% 2/19
Corporate Bond 7.35% 2/19
**
75

 
JPMBB 15-C29 A2 2.8596% 05/48
Mortgage back security 15-C29 A2 2.8596% 05/48
**
745

 
JPMC CO 2.2% 10/22/19
Corporate Bond 2.2% 10/22/19
**
1,960

 
JPMC CO 2.35% 01/28/19
Corporate Bond 2.35% 01/28/19
**
409

 
JPMC CO 2.55% 10/29/20
Corporate Bond 2.55% 10/29/20
**
1,055

 
JPMCC 13-C13 A1 1.3029% 01/46
Mortgage back security 13-C13 A1 1.3029% 01/46
**
975

 
JPMCC 13-LC11 A1 .7664% 04/46
Mortgage back security 13-LC11 A1 .7664% 04/46
**
599

 
JPMCC 2006-CB16 A1A 5.546 5/45
Mortgage back security 2006-CB16 A1A 5.546 5/45
**
2,087

 
JPMCC 2006-CB16 A4 5.552% 5/45
Mortgage back security 2006-CB16 A4 5.552% 5/45
**
189

 
JPMCC 2006-LDP7 A1A CSTR 4/45
Mortgage back security 2006-LDP7 A1A CSTR 4/45
**
1,608

 
JPMCC 2006-LDP7 A4 CSTR 04/45
Mortgage back security 2006-LDP7 A4 CSTR 04/45
**
984

 
JPMCC 2011-C3 A3 4.3877% 02/46
Mortgage back security 2011-C3 A3 4.3877% 02/46
**
731

 
JPMCC 2012-LC9 A1 .6698% 12/47
Mortgage back security 2012-LC9 A1 .6698% 12/47
**
161

 
JPMCC 2013-C10 .7302% 12/15/47
Mortgage back security 2013-C10 .7302% 12/15/47
**
187

 
JPMCC 2015-JP1 A2 3.1438% 1/49
Mortgage back security 2015-JP1 A2 3.1438% 1/49
**
812

 
JPMORGAN CHASE & CO 2.75% 6/20
Corporate Bond 2.75% 6/20
**
3,378

 
JPMORGAN CHASE 4.95% 3/25/20
Corporate Bond 4.95% 3/25/20
**
143

 
JPMORGAN CHASE
Synthetic GIC - 1.892 % (fair value to contract value)
**
(2,042
)
 
KEY BANK NA 2.5% 12/15/19
Corporate Bond 2.5% 12/15/19
**
590

 
KEYBANK NATL AS 1.7% 06/01/18
Corporate Bond 1.7% 06/01/18
**
1,104

 
KINDER MORGAN EN 2.65 2/1/19
Corporate Bond 2.65 2/1/19
**
383

 
KINDER MORGAN IC 3.05% 12/1/19
Corporate Bond 3.05% 12/1/19
**
509

 
KINDER MRGN INC 2% 12/01/17
Corporate Bond 2% 12/01/17
**
274

 
LBUBS 2006-C6 A1A CSTR 9/39
Mortgage back security 2006-C6 A1A CSTR 9/39
**
1,668

 
LBUBS 2006-C6 A4 5.372% 9/39
Mortgage back security 2006-C6 A4 5.372% 9/39
**
869

 
LBUBS 2007-C7 A3 5.886% 9/45
Mortgage back security 2007-C7 A3 5.886% 9/45
**
710

 
LOCKHEED MARTIN 2.5% 11/23/20
Corporate Bond 2.5% 11/23/20
**
943

 
MANU&TRD NT PRG 2.25% 7/25/19
Corporate Bond 2.25% 7/25/19
**
106

 
MARSH & MCLENN 2.35% 03/06/20
Corporate Bond 2.35% 03/06/20
**
719

 
MARSH & MCLENNAN 2.35% 9/10/19
Corporate Bond 2.35% 9/10/19
**
477

 
MARSHMCLEN 2.55% 10/15/18
Corporate Bond 2.55% 10/15/18
**
215

 
MASSMUTUAL 2.45% 11/23/20 144A
Corporate Bond 2.45% 11/23/20 144A
**
708

 
MASSMUTUAL GBL 2.1 8/2/18 144A
Corporate Bond 2.1 8/2/18 144A
**
1,832

 
MASSMUTUAL GLB 2.35% 4/19 144A
Corporate Bond 2.35% 4/19 144A
**
1,273

 
MASSMUTUAL GLBL 2% 4/5/17 144A
Corporate Bond 2% 4/5/17 144A
**
728

 
MATTEL INC 2.35% 05/06/19
Corporate Bond 2.35% 05/06/19
**
398

 
MCDONALDS CORP 2.1% 12/18
Corporate Bond 2.1% 12/18
**
298

 
MCDONALDS CORP 2.75% 12/20
Corporate Bond 2.75% 12/20
**
1,104

 
MCGRAW HILL FINL INC 2.5% 8/18
Corporate Bond 2.5% 8/18
**
457

 
MCKESSON CO 2.284% 03/15/2019
Corporate Bond2.284% 03/15/2019
**
1,173

 
MEDTRONIC INC 2.5% 3/15/20
Corporate Bond 2.5% 3/15/20
**
1,591


24
Eastman Investment and Employee Stock Ownership Plan
Schedule H, Line 4 (i) - Schedule of Assets (Held at End of Year)
December 31, 2015
(in thousands)

(a)
(b)
 Identity of issue, borrower, lessor, or similar party
(c)
 Description of investment, including maturity date, rate of interest, collateral, par or maturity value
(d)
Historical Cost
(e)
Current Value
 
MET LIFE GLB 2.3% 4/10/19 144A
Corporate Bond 2.3% 4/10/19 144A
**
2,121

 
MET LIFE GLBL 1.5 1/18 144A
Corporate Bond 1.5 1/18 144A
**
3,567

 
MICROSOFT CORP 2% 11/03/20
Corporate Bond 2% 11/03/20
**
1,455

 
MITSUBISHI 2.45% 10/16/19 144A
Corporate Bond 2.45% 10/16/19 144A
**
761

 
MIZUHO BK LTD 2.45 4/19 144A
Corporate Bond 2.45 4/19 144A
**
1,520

 
MIZUHO CORP 1.85% 3/21/18 144A
Corporate Bond 1.85% 3/21/18 144A
**
1,000

 
MLMT 2006-C2 A1A CSTR 8/43
Mortgage back security 2006-C2 A1A CSTR 8/43
**
1,196

 
MORGAN STANLEY 2.125% 4/25/18
Corporate Bond 2.125% 4/25/18
**
794

 
MORGAN STANLEY 2.375% 7/23/19
Corporate Bond 2.375% 7/23/19
**
1,481

 
MORGAN STANLEY 2.5% 01/24/19
Corporate Bond 2.5% 01/24/19
**
2,552

 
MORGAN STANLEY 2.65% 01/27/20
Corporate Bond 2.65% 01/27/20
**
1,085

 
MORGAN STANLEY 5.625% 9/23/19
Corporate Bond 5.625% 9/23/19
**
1,768

 
MSBAM 2014-C14 A2 2.916% 1/47
Mortgage back security 2014-C14 A2 2.916% 1/47
**
1,397

 
MSC 2006-HQ9 A4 CSTR 7/44
Mortgage back security 2006-HQ9 A4 CSTR 7/44
**
675

 
MSC 2006-IQ11 A1A CSTR 10/42
Mortgage back security 2006-IQ11 A1A CSTR 10/42
**
1,007

 
MSC 2007-IQ13 A1A 5.312% 3/44
Mortgage back security2007-IQ13 A1A 5.312% 3/44
**
486

 
MSC 2007-T27 A1A CSTR 6/42
Mortgage back security 2007-T27 A1A CSTR 6/42
**
1,704

 
MSC 2011-C2 A4 4.661% 06/44
Mortgage back security 2011-C2 A4 4.661% 06/44
**
1,201

 
MUFG AMERICAS HLD 2.25% 02/20
Corporate Bond 2.25% 02/20
**
692

 
NALT 2014-A A3 .80% 02/17
Mortgage back security 2014-A A3 .80% 02/17
**
915

 
NAROT 2015-A A3 1.05% 10/19
Mortgage back security 2015-A A3 1.05% 10/19
**
899

 
NAROT 2015-C A3 1.37% 5/20
Mortgage back security 2015-C A3 1.37% 5/20
**
1,011

 
NAT-RURAL 2.3% 11/01/20
Corporate Bond 2.3% 11/01/20
**
80

 
NEF 2005-1 A5 4.74% 10/45
Mortgage back security 2005-1 A5 4.74% 10/45
**
209

 
NEW YORK LIFE 1.3% 10/17 144A
Corporate Bond 1.3% 10/17 144A
**
1,996

 
NORDEA BK AB 2.375% 4/4/19 144
Corporate Bond 2.375% 4/4/19 144
**
848

 
NORTHERN STES PWR 2.2% 8/15/20
Corporate Bond 2.2% 8/15/20
**
311

 
ONTARIO PROV 2% 09/27/18
Corporate Bond 2% 09/27/18
**
3,790

 
ORACLE CORP 2.25% 10/8/19
Corporate Bond 2.25% 10/8/19
**
1,260

 
ORACLE CORP 2.5% 05/15/2022
Corporate Bond 2.5% 05/15/2022
**
1,774

 
P&G ESOP 9.36% 1/01/21
Mortgage back security 9.36% 1/01/21
**
1,187

 
PACIFICORP 5.5% 1/15/19
Corporate Bond 5.5% 1/15/19
**
168

 
PACIFICORP 5.65 7/15/18
Corporate Bond 5.65 7/15/18
**
223

 
PEPSICO INC 7.9% 11/01/18
Corporate Bond 7.9% 11/01/18
**
773

 
PG&E CORP 2.4% 03/01/19
Corporate Bond 2.4% 03/01/19
**
126

 
PHILIP MORS INT 1.875% 1/15/19
Corporate Bond 1.875% 1/15/19
**
867

 
PLAINS AM/PAA FIN 2.65% 12/19
Corporate Bond 2.65% 12/19
**
593

 
PNC BANK NA 2.4% 10/18/19
Corporate Bond 2.4% 10/18/19
**
1,191

 
PNC BK NA 6% 12/07/17
Corporate Bond 6% 12/07/17
**
64

 
PNC BK PITT MTN 2.2% 01/28/19
Corporate Bond 2.2% 01/28/19
**
1,671

 
PRICOA GLBL F 1.6% 5/18 144A
Corporate Bond 1.6% 5/18 144A
**
1,169

 
PROCTER GAMBLE MTN 4.7 2/15/19
Corporate Bond 4.7 2/15/19
**
394

 
PRUDENTIAL FINL 2.3% 8/15/18
Corporate Bond 2.3% 8/15/18
**
711

 
PRUDENTIAL INSURANCE COMPANY
Synthetic GIC - 1.917 % (fair value to contract value)
**
(677
)
 
PRUDENTIAL MTN 7.375% 6/15/19
Corporate Bond 7.375% 6/15/19
**
250

 
RABOBANK 4.375% 8/04/25
Corporate Bond 4.375% 8/04/25
**
248

 
REGIONS FIN CORP 2.25% 9/14/18
Corporate Bond 2.25% 9/14/18
**
1,946

 
REYNOLDS AMERICAN 2.3% 6/18
Corporate Bond 2.3% 6/18
**
329

 
REYNOLDS AMERICAN 3.25% 6/20
Corporate Bond 3.25% 6/20
**
1,019

 
REYNOLDS AMERICAN 4% 6/12/22
Corporate Bond 4% 6/12/22
**
522

 
REYNOLDS AMERN 6.75% 6/15/17
Corporate Bond 6.75% 6/15/17
**
527


25
Eastman Investment and Employee Stock Ownership Plan
Schedule H, Line 4 (i) - Schedule of Assets (Held at End of Year)
December 31, 2015
(in thousands)

(a)
(b)
 Identity of issue, borrower, lessor, or similar party
(c)
 Description of investment, including maturity date, rate of interest, collateral, par or maturity value
(d)
Historical Cost
(e)
Current Value
 
ROPER INDUSTRIES 2.05% 10/1/18
Corporate Bond 2.05% 10/1/18
**
1,498

 
ROPER TECHNOLOGIES 3% 12/15/20
Corporate Bond 3% 12/15/20
**
699

 
ROYAL BK CAN GL 1.5% 01/14/18
Corporate Bond 1.5% 01/14/18
**
1,166

 
ROYAL BK CAN GL 1.8% 07/30/18
Corporate Bond 1.8% 07/30/18
**
733

 
ROYAL BK CAN GL 2.35% 10/30/20
Corporate Bond 2.35% 10/30/20
**
1,055

 
ROYAL BK CDA 2.2% 7/27/18
Corporate Bond 2.2% 7/27/18
**
1,271

 
ROYAL BK OF CDA 2.15% 03/15/19
Corporate Bond 2.15% 03/15/19
**
868

 
SABMILLER HLDG 2.2 8/1/18 144A
Corporate Bond 2.2 8/1/18 144A
**
1,813

 
SAN DIEGO G & E 1.914% 2/22
Mortgage back security 1.914% 2/22
**
694

 
SEMPRA ENERGY 2.4% 3/15/20
Corporate Bond 2.4% 3/15/20
**
911

 
SEMPRA ENERGY 2.85% 11/15/20
Corporate Bond 2.85% 11/15/20
**
559

 
SHELL INTL 2.25% 11/10/20
Corporate Bond 2.25% 11/10/20
**
1,055

 
SHELL INTL FIN 1.125% 8/21/17
Corporate Bond 1.125% 8/21/17
**
1,137

 
SHELL INTL FIN BV 2.125% 05/20
Corporate Bond 2.125% 05/20
**
1,093

 
SLMA 2004-A B 3ML+58 6/33
Mortgage back security 2004-A B 3ML+58 6/33
**
80

 
SOUTHERN CA EDISON 1.845% 2/22
Mortgage back security 1.845% 2/22
**
528

 
SOUTHERN POWER 1.85% 12/1/17
Corporate Bond 1.85% 12/1/17
**
284

 
SOUTHERN PWR CO 2.375% 6/1/20
Corporate Bond 2.375% 6/1/20
**
514

 
STATE STREET BANK & TRUST CO
Synthetic GIC - 1.897 % (fair value to contract value)
**
(1,364
)
 
SUMITOMO BKG 2.25% 07/11/19
Corporate Bond 2.25% 07/11/19
**
823

 
SUMITOMO BKG 2.45% 1/10/19
Corporate Bond 2.45% 1/10/19
**
1,036

 
SUMITOMO MITSUI BKG 1.8% 7/17
Corporate Bond 1.8% 7/17
**
1,094

 
SUMITOMO MITSUI BKG 2.5% 7/18
Corporate Bond 2.5% 7/18
**
256

 
SUNTRUST 2.35% 11/01/18
Corporate Bond 2.35% 11/01/18
**
884

 
SUNTRUST BANK INC 2.5 5/1/19
Corporate Bond 2.5 5/1/19
**
848

 
SYNCHRONY FIN 1.875% 8/15/17
Corporate Bond 1.875% 8/15/17
**
187

 
SYNCHRONY FIN 3% 8/15/19
Corporate Bond 3% 8/15/19
**
278

 
SYNCHRONY FINANCL 2.6% 1/15/19
Corporate Bond 2.6% 1/15/19
**
424

 
SYNCT 2015-2 A 1.60% 4/21
Mortgage back security 2015-2 A 1.60% 4/21
**
1,441

 
SYSCO CORP 2.6% 10/01/20
Corporate Bond 2.6% 10/01/20
**
610

 
TAOT 2015-B A3 1.27% 05/19
Mortgage back security 2015-B A3 1.27% 05/19
**
1,390

 
TAOT 2015-C A3 1.34% 6/19
Mortgage back security 2015-C A3 1.34% 6/19
**
1,827

 
THERMO FISHER 2.4% 02/01/19
Corporate Bond 2.4% 02/01/19
**
1,060

 
TIAA AST MG 2.95% 11/1/19 144A
Corporate Bond 2.95% 11/1/19 144A
**
219

 
TIME WARNER CAB 5.85 5/1/17W/I
Corporate Bond 5.85 5/1/17W/I
**
1,019

 
TJX COS INC 2.75% 6/15/21
Corporate Bond 2.75% 6/15/21
**
786

 
TORONTO DOM 1.4% 4/30/18
Corporate Bond 1.4% 4/30/18
**
1,571

 
TORONTO DOM BK 2.125% 7/02/19
Corporate Bond 2.125% 7/02/19
**
838

 
TORONTO DOMINI 2.625% 09/10/18
Corporate Bond 2.625% 09/10/18
**
1,514

 
TOTAL CAP CDA L 1.45% 01/15/18
Corporate Bond 1.45% 01/15/18
**
810

 
TOTAL CAP INTL 1.55% 6/28/17
Corporate Bond 1.55% 6/28/17
**
702

 
TOTAL CAP INTL 2.125% 01/10/19
Corporate Bond 2.125% 01/10/19
**
1,689

 
TOTAL CAP INTL 2.75% 06/19/21
Corporate Bond 2.75% 06/19/21
**
828

 
TOTAL CAPITAL SA 1.5% 2/17/17
Corporate Bond 1.5% 2/17/17
**
715

 
TRANSAMERICA PREMIER LIFE
Synthetic GIC - 1.907% (fair value to contract value)
**
(1,235
)
 
TRANSCANADA PIPE 1.625% 11/17
Corporate Bond 1.625% 11/17
**
1,054

 
UBS AG STAM 2.375% 8/14/19
Corporate Bond 2.375% 8/14/19
**
1,170

 
UBS AG STAM CT 1.375% 6/1/17
Corporate Bond 1.375% 6/1/17
**
552

 
UBS AG STAMFORD 1.8% 03/26/18
Corporate Bond 1.8% 03/26/18
**
1,057

 
UBSBB 2012-C2 A1 1.006% 5/63
Mortgage back security 2012-C2 A1 1.006% 5/63
**
226

 
UBSBB 2012-C4 A1 .6728 12/45
Mortgage back security 2012-C4 A1 .6728 12/45
**
208


26
Eastman Investment and Employee Stock Ownership Plan
Schedule H, Line 4 (i) - Schedule of Assets (Held at End of Year)
December 31, 2015
(in thousands)

(a)
(b)
 Identity of issue, borrower, lessor, or similar party
(c)
 Description of investment, including maturity date, rate of interest, collateral, par or maturity value
(d)
Historical Cost
(e)
Current Value
 
UBSBB 2013-C6 A1 0.8022% 4/46
Mortgage back security 2013-C6 A1 0.8022% 4/46
**
264

 
UBSCM 2012-C1 A2 2.180% 5/45
Mortgage back security 2012-C1 A2 2.180% 5/45
**
435

 
UNITED HEALTH 2.7% 7/15/20
Corporate Bond 2.7% 7/15/20
**
1,312

 
UNITEDHEALTH GRP 1.9%7/16/18
Corporate Bond 1.9%7/16/18
**
759

 
UNITEDHELTH GR 2.875% 12/15/21
Corporate Bond 2.875% 12/15/21
**
810

 
US BANK NA CIN 2.125% 10/19
Corporate Bond 2.125% 10/19
**
1,667

 
USAOT 2015-1 A3 1.2% 06/19
Mortgage back security 2015-1 A3 1.2% 06/19
**
747

 
UST NOTE .875% 1/31/18
Government Bond .875% 1/31/18
**
18,404

 
UST NOTE 1.25% 11/15/18
Government Bond 1.25% 11/15/18
**
2,853

 
UST NOTE 1.625% 11/30/20
Government Bond 1.625% 11/30/20
**
861

 
UST NOTES 0.75% 03/31/2018
Government Bond 0.75% 03/31/2018
**
2,582

 
UST NOTES 0.875% 04/15/17
Government Bond 0.875% 04/15/17
**
8,389

 
UST NOTES 0.875% 07/15/18
Government Bond 0.875% 07/15/18
**
995

 
UST NOTES 0.875% 6/15/17
Government Bond 0.875% 6/15/17
**
1,849

 
UST NOTES 1.0% 08/15/18
Government Bond 1.0% 08/15/18
**
4,299

 
UST NOTES 1.125% 06/18
Government Bond 1.125% 06/18
**
9,674

 
UST NOTES 1.375% 09/30/20
Government Bond 1.375% 09/30/20
**
2,879

 
UST NOTES 1.5% 05/31/19
Government Bond 1.5% 05/31/19
**
10,816

 
UST NOTES 1.5% 11/30/19
Government Bond 1.5% 11/30/19
**
2,524

 
UST NOTES 1.625% 06/30/2019
Government Bond 1.625% 06/30/2019
**
17,276

 
UST NOTES 1.625% 07/31/20
Government Bond 1.625% 07/31/20
**
14,905

 
USTN .5% 7/31/17
Government Bond .5% 7/31/17
**
1,019

 
USTN .625% 02/15/17
Government Bond .625% 02/15/17
**
11,253

 
USTN .625% 5/31/17
Government Bond .625% 5/31/17
**
7,715

 
USTN .625% 8/31/17
Government Bond .625% 8/31/17
**
10,510

 
USTN .750% 6/30/17
Government Bond .750% 6/30/17
**
37,662

 
USTN .875% 1/31/17
Government Bond .875% 1/31/17
**
3,659

 
USTN .875% 11/15/17
Government Bond .875% 11/15/17
**
3,637

 
USTN .875% 4/30/17
Government Bond .875% 4/30/17
**
15,864

 
USTN 0.5% 04/30/17
Government Bond 0.5% 04/30/17
**
344

 
USTN 0.75% 04/15/18
Government Bond 0.75% 04/15/18
**
10,049

 
USTN 0.875% 05/15/17
Government Bond 0.875% 05/15/17
**
2,026

 
USTN 0.875% 10/15/17
Government Bond 0.875% 10/15/17
**
32,347

 
USTN 0.875% 11/30/17
Government Bond 0.875% 11/30/17
**
572

 
USTN 0.875% 8/15/17
Government Bond 0.875% 8/15/17
**
13

 
USTN 1% 05/15/18
Government Bond 1% 05/15/18
**
9,589

 
USTN 1.25% 01/31/20
Government Bond 1.25% 01/31/20
**
1,480

 
USTN 1.25% 12/15/18
Government Bond 1.25% 12/15/18
**
29,617

 
USTN 1.375% 03/31/20
Government Bond 1.375% 03/31/20
**
60,127

 
USTN 1.375% 04/30/20
Government Bond 1.375% 04/30/20
**
2,227

 
USTN 1.375% 2/28/19
Government Bond 1.375% 2/28/19
**
15,062

 
USTN 1.5% 01/31/19
Government Bond 1.5% 01/31/19
**
3,020

 
USTN 1.5% 10/31/19
Government Bond 1.5% 10/31/19
**
4,664

 
USTN 1.50% 8/31/18
Government Bond 1.50% 8/31/18
**
5,206

 
USTN 1.625% 04/30/19
Government Bond 1.625% 04/30/19
**
2,426

 
USTN 1.625% 06/30/20
Government Bond 1.625% 06/30/20
**
3,243

 
USTN 1.625% 07/31/19
Government Bond 1.625% 07/31/19
**
7,690

 
USTN 2% 07/31/20
Government Bond 2% 07/31/20
**
1,658

 
USTN 2.25% 03/31/21
Government Bond 2.25% 03/31/21
**
1,160


27
Eastman Investment and Employee Stock Ownership Plan
Schedule H, Line 4 (i) - Schedule of Assets (Held at End of Year)
December 31, 2015
(in thousands)

(a)
(b)
 Identity of issue, borrower, lessor, or similar party
(c)
 Description of investment, including maturity date, rate of interest, collateral, par or maturity value
(d)
Historical Cost
(e)
Current Value
 
VALET 2013-2 A3 0.7% 04/18
Mortgage back security 2013-2 A3 0.7% 04/18
**
1,150

 
VALET 2014-1 A3 .91% 10/22/18
Mortgage back security 2014-1 A3 .91% 10/22/18
**
1,105

 
VENTAS RLTY LP/CAP 4% 4/30/19
Corporate Bond 4% 4/30/19
**
743

 
VERIZON COM 3.5% 11/01/21
Corporate Bond 3.5% 11/01/21
**
344

 
VERIZON COMMUNS 2.625% 2/21/20
Corporate Bond 2.625% 2/21/20
**
2,321

 
VIACOM INC 2.5% 09/01/18
Corporate Bond 2.5% 09/01/18
**
206

 
VISA INC 2.2% 12/14/20
Corporate Bond 2.2% 12/14/20
**
1,520

 
VISA INC 2.8% 12/14/22
Corporate Bond 2.8% 12/14/22
**
1,073

 
VODAFONE GRUP PLC 1.5% 2/19/18
Corporate Bond 1.5% 2/19/18
**
756

 
VOLKSWAGEN 2.125% 11/18 144A
Corporate Bond 2.125% 11/18 144A
**
1,645

 
VOLKSWAGEN GRP 2.4% 5/20 144A
Corporate Bond 2.4% 5/20 144A
**
697

 
VWALT 2014-A A3 .80% 4/20/17
Mortgage back security 2014-A A3 .80% 4/20/17
**
1,036

 
VWALT 2015-A A3 1.25% 12/17
Mortgage back security 2015-A A3 1.25% 12/17
**
883

 
WAL MART STORES 3.3% 04/22/24
Corporate Bond 3.3% 04/22/24
**
871

 
WASHINGTON PG 3.85% 4/1/20
Corporate Bond 3.85% 4/1/20
**
723

 
WBCMT 2006-C24 A1A CSTR 3/45
Mortgage back security 2006-C24 A1A CSTR 3/45
**
367

 
WBCMT 2006-C25 A1A CSTR 5/43
Mortgage back security 2006-C25 A1A CSTR 5/43
**
1,713

 
WBCMT 2006-C25 A5 CSTR 5/43
Mortgage back security 2006-C25 A5 CSTR 5/43
**
354

 
WBCMT 2006-C26 A1A CSTR 6/45
Mortgage back security 2006-C26 A1A CSTR 6/45
**
1,254

 
WBCMT 2006-C27 A3 CSTR 7/45
Mortgage back security 2006-C27 A3 CSTR 7/45
**
429

 
WBCMT 2006-C29 A1A 5.297 11/48
Mortgage back security 2006-C29 A1A 5.297 11/48
**
1,992

 
WBCMT 2006-C29 A4 5.308% 11/48
Mortgage back security2006-C29 A4 5.308% 11/48
**
337

 
WELLPOINT INC 2.25% 8/15/19
Corporate Bond 2.25% 8/15/19
**
782

 
WELLPOINT INC 2.3% 07/15/18
Corporate Bond 2.3% 07/15/18
**
651

 
WELLS FARGO & CO 2.55% 12/7/20
Corporate Bond 2.55% 12/7/20
**
1,764

 
WELLS FARGO & CO MTN 2.6% 7/20
Corporate Bond 2.6% 7/20
**
1,131

 
WELLS FARGO 3% 01/22/21
Corporate Bond 3% 01/22/21
**
1,559

 
WESTERN UNION CO 2.875 12/17
Corporate Bond 2.875 12/17
**
1,264

 
WESTPAC BANK CORP 1.2% 5/19/17
Corporate Bond 1.2% 5/19/17
**
1,658

 
WESTPAC BANKING 1.5% 12/01/17
Corporate Bond 1.5% 12/01/17
**
759

 
WESTPAC BANKING CRP 2% 8/14/17
Corporate Bond 2% 8/14/17
**
1,344

 
WFCM 2012-LC5 ASB 2.528% 10/45
Mortgage back security 2012-LC5 ASB 2.528% 10/45
**
622

 
WFCM 2013-LC12 A1 1.676% 7/46
Mortgage back security 2013-LC12 A1 1.676% 7/46
**
1,162

 
WFRBS 13-C14 A1 .836% 6/15/46
Mortgage back security 13-C14 A1 .836% 6/15/46
**
211

 
WFRBS 2011-C5 A1 1.456 11/44
Mortgage back security 2011-C5 A1 1.456 11/44
**
23

 
WFRBS 2012-C8 A1 .864% 8/45
Mortgage back security 2012-C8 A1 .864% 8/45
**
191

 
WFRBS 2012-C8 A2 1.881% 8/45
Mortgage back security 2012-C8 A2 1.881% 8/45
**
671

 
WFRBS 2013-C11 A1 .799% 03/45
Mortgage back security 2013-C11 A1 .799% 03/45
**
130

 
WFRBS 2013-C14 A2 2.133% 6/46
Mortgage back security 2013-C14 A2 2.133% 6/46
**
311

 
WISCONSIN ENERGY 2.45% 6/15/20
Corporate Bond 2.45% 6/15/20
**
419

 
WOART 2014-B A3 1.14% 1/20
Mortgage back security 2014-B A3 1.14% 1/20
**
1,378

 
WOLS 2014-A A3 1.16% 09/17
Mortgage back security 2014-A A3 1.16% 09/17
**
1,083

 
WOLS 2015-A A3 1.54% 10/18
Mortgage back security 2015-A A3 1.54% 10/18
**
1,324

 
WPACBKG 1.6% 1/12/18
Corporate Bond 1.6% 1/12/18
**
780

 
XEROX CORP 2.75% 03/15/19
Corporate Bond 2.75% 03/15/19
**
1,010

 
ZOETIS INC 3.45% 11/13/20
Corporate Bond 3.45% 11/13/20
**
200

 
Sub-total Managed Income Funds
 
 
874,030


28
Eastman Investment and Employee Stock Ownership Plan
Schedule H, Line 4 (i) - Schedule of Assets (Held at End of Year)
December 31, 2015
(in thousands)

(a)
(b)
 Identity of issue, borrower, lessor, or similar party
(c)
 Description of investment, including maturity date, rate of interest, collateral, par or maturity value
(d)
Historical Cost
(e)
Current Value
 
Self-Directed Brokerage Account
Various shares
**
31,881

 
Total Investment Assets
 
 
$
2,762,454

*
Participant Loans
Interest rates ranging 3.25% - 5.25% Maturities ranging 5 to 72 months
 
$
50,384


* Represents a party-in-interest to the Plan.
** Historical cost is omitted because the investment is participant-directed.



29



SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the trustees (or other persons who administer the employee benefit plan) have duly caused this annual report to be signed on its behalf by the undersigned hereunto duly authorized.

Eastman Investment and Employee
Stock Ownership Plan







Date: June 27, 2016
By:  /s/ Scott V. King                            
 
Scott V. King
 
Vice President, Corporate Controller and Chief Accounting Officer


30

Eastman Investment and Employee Stock Ownership Plan
Exhibit Index

Exhibit
Number
Description
Sequential
Page Number
23.1
Consent of Brown Smith Wallace, LLP Independent Registered Public Accounting Firm
32




31


Exhibit 23.1
Consent of Independent Registered Public Accounting Firm


We hereby consent to the incorporation by reference in the Registration Statement on Form S-8 (No. 333-195103) of Eastman Chemical Company of our report dated June 27, 2016, relating to the financial statements and supplemental schedule of the Eastman Investment & Employee Stock Ownership Plan, which appear in the December 31, 2015 and 2014 annual reports on Form 11-K of the Eastman Investment & Employee Stock Ownership Plan.



/s/ Brown Smith Wallace, LLP
St. Louis, Missouri
June 27, 2016





32

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