Document_And_Entity_Informatio
Document And Entity Information | 9 Months Ended | |
Sep. 30, 2013 | Oct. 15, 2013 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | CORNING INC /NY | |
Document Type | 10-Q | |
Current Fiscal Year End Date | -19 | |
Entity Common Stock, Shares Outstanding | 1,447,201,901 | |
Amendment Flag | FALSE | |
Entity Central Index Key | 24741 | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Entity Filer Category | Large Accelerated Filer | |
Entity Well-known Seasoned Issuer | No | |
Document Period End Date | 30-Sep-13 | |
Document Fiscal Year Focus | 2013 | |
Document Fiscal Period Focus | Q3 |
Consolidated_Statements_of_Inc
Consolidated Statements of Income (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Millions, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||||
Net sales | $2,067 | $2,038 | $5,863 | $5,866 | ||||
Cost of sales | 1,166 | 1,149 | 3,309 | 3,345 | ||||
Gross margin | 901 | 889 | 2,554 | 2,521 | ||||
Operating expenses: | ||||||||
Selling, general and administrative expenses | 265 | 289 | 790 | 848 | ||||
Research, development and engineering expenses | 184 | 182 | 541 | 551 | ||||
Amortization of purchased intangibles | 8 | 4 | 23 | 13 | ||||
Asbestos litigation charge | 5 | [1] | 3 | [1] | 13 | [1] | 9 | [1] |
Operating income | 439 | 411 | 1,187 | 1,100 | ||||
Equity in earnings of affiliated companies (Note 9) | 138 | 240 | 477 | 717 | ||||
Interest income | 1 | 3 | 5 | 10 | ||||
Interest expense | -28 | -32 | -92 | -76 | ||||
Other (expense) income, net (Note 1) | -1 | 5 | 329 | 42 | ||||
Income before income taxes | 549 | 627 | 1,906 | 1,793 | ||||
Provision for income taxes (Note 5) | -141 | [2] | -94 | [2] | -366 | [2] | -312 | [2] |
Net income attributable to Corning Incorporated | $408 | [3] | $533 | [3] | $1,540 | [3] | $1,481 | [3] |
Earnings per common share attributable to Corning Incorporated: | ||||||||
Basic (Note 6) (in Dollars per share) | $0.28 | $0.36 | $1.05 | $0.99 | ||||
Diluted (Note 6) (in Dollars per share) | $0.28 | $0.36 | $1.04 | $0.98 | ||||
Dividends declared per common share (in Dollars per share) | $0.10 | $0.08 | $0.29 | $0.23 | ||||
[1] | In the three and nine months ended September 30, 2013, Corning recorded a charge of $5 million and $13 million, respectively, to adjust the asbestos liability for the change in value of components of the Amended PCC Plan. In the three and nine month ended September 30, 2012, Corning recorded a charge of $3 million and $9 million, respectively, to adjust the asbestos liability for the change in value of components of the Amended PCC Plan. | |||||||
[2] | Results for 2012 include the impact of defined benefit pension plan methodology change implemented in the first quarter of 2013 and retrospectively applied to prior periods. See Note 1 of Notes to Consolidated Financial Statements for a discussion of the change and the impacts of the change for the three and nine months ended September 30, 2012. | |||||||
[3] | As revised for the change in our method of recognizing pension expense. See Note 1 of Notes to Consolidated Financial Statements for a discussion of the change and the impacts of the change for the three and nine months ended September 30, 2012. |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||||
Net income attributable to Corning Incorporated | $408 | [1] | $533 | [1] | $1,540 | [1] | $1,481 | [1] |
Other comprehensive income (loss), net of tax (Note 16) | 313 | [2] | 231 | [2] | -431 | [2] | 183 | [2] |
Comprehensive income attributable to Corning Incorporated | $721 | $764 | $1,109 | $1,664 | ||||
[1] | As revised for the change in our method of recognizing pension expense. See Note 1 of Notes to Consolidated Financial Statements for a discussion of the change and the impacts of the change for the three and nine months ended September 30, 2012. | |||||||
[2] | All amounts are after tax. Amounts in parentheses indicate debits to accumulated other comprehensive income. |
Consolidated_Balance_Sheets_Un
Consolidated Balance Sheets (Unaudited) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | ||
In Millions, unless otherwise specified | ||||
Assets | ||||
Cash and cash equivalents | $4,560 | $4,988 | ||
Short-term investments, at fair value (Note 7) | 886 | 1,156 | ||
Total cash, cash equivalents and short-term investments | 5,446 | 6,144 | ||
Trade accounts receivable, net of doubtful accounts and allowances - $30 and $26 | 1,392 | 1,302 | ||
Inventories (Note 8) | 1,275 | 1,051 | ||
Deferred income taxes (Note 5) | 309 | 579 | ||
Other current assets | 706 | 619 | ||
Total current assets | 9,128 | 9,695 | ||
Investments (Note 9) | 5,160 | 4,915 | ||
Property, net of accumulated depreciation - $7,897 and $7,652 (Note 11) | 9,977 | 10,625 | ||
Goodwill and other intangible assets, net (Note 12) | 1,551 | 1,496 | ||
Deferred income taxes (Note 5) | 2,403 | 2,343 | ||
Other assets | 495 | 301 | ||
Total Assets | 28,714 | 29,375 | ||
Liabilities and Equity | ||||
Current portion of long-term debt (Note 4) | 23 | 76 | ||
Accounts payable | 640 | 779 | ||
Other accrued liabilities (Note 3) | 915 | 1,101 | ||
Total current liabilities | 1,578 | 1,956 | ||
Long-term debt (Note 4) | 2,816 | 3,382 | ||
Postretirement benefits other than pensions | 917 | 930 | ||
Other liabilities (Note 3) | 1,605 | 1,574 | ||
Total liabilities | 6,916 | 7,842 | ||
Commitments and contingencies (Note 3) | ||||
Shareholders’ equity: | ||||
Common stock – Par value $0.50 per share; Shares authorized 3.8 billion; Shares issued: 1,658 million and 1,649 million | 829 | 825 | ||
Additional paid-in capital | 13,215 | 13,146 | ||
Retained earnings | 11,017 | 9,932 | ||
Treasury stock, at cost; Shares held: 211 million and 179 million | -3,237 | -2,773 | ||
Accumulated other comprehensive (loss) income | -75 | [1] | 356 | [1] |
Total Corning Incorporated shareholders’ equity | 21,749 | 21,486 | ||
Noncontrolling interests | 49 | 47 | ||
Total equity | 21,798 | 21,533 | ||
Total Liabilities and Equity | $28,714 | $29,375 | ||
[1] | All amounts are after tax. Amounts in parentheses indicate debits to accumulated other comprehensive income. |
Consolidated_Balance_Sheets_Un1
Consolidated Balance Sheets (Unaudited) (Parentheticals) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, except Per Share data, unless otherwise specified | ||
Doubtful accounts and allowances (in Dollars) | $30 | $26 |
Accumulated depreciation (in Dollars) | $7,897 | $7,652 |
Common stock par value (in Dollars per share) | $0.50 | $0.50 |
Common stock, shares authorized (in Shares) | 3,800 | 3,800 |
Common stock, shares issued (in Shares) | 1,658 | 1,649 |
Treasury stock, at cost, shares held (in Shares) | 211 | 179 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (Unaudited) (USD $) | 9 Months Ended | |||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | ||
Cash Flows from Operating Activities: | ||||
Net income | $1,540 | [1] | $1,481 | [1] |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Depreciation | 730 | 717 | ||
Amortization of purchased intangibles | 23 | 13 | ||
Stock compensation charges | 40 | 56 | ||
Undistributed earnings of affiliated companies in excess of dividends received | -256 | -140 | ||
Deferred tax provision | 141 | 65 | ||
Restructuring payments | -30 | -3 | ||
Employee benefit payments less than (in excess of) expense | 34 | -57 | ||
Unrealized gains on translated earnings contracts | -166 | |||
Changes in certain working capital items: | ||||
Trade accounts receivable | -139 | -149 | ||
Inventories | -238 | -31 | ||
Other current assets | 14 | -65 | ||
Accounts payable and other current liabilities | -278 | -42 | ||
Other, net | 88 | 121 | ||
Net cash provided by operating activities | 1,503 | 1,966 | ||
Cash Flows from Investing Activities: | ||||
Capital expenditures | -682 | -1,275 | ||
Acquisitions of business, net of cash received | -66 | |||
Investment in affiliates | -24 | -111 | ||
Short-term investments – acquisitions | -1,183 | -1,859 | ||
Short-term investments – liquidations | 1,449 | 1,618 | ||
Premium on purchased collars | -107 | |||
Realized gains on translated earning contracts | 33 | |||
Other, net | 5 | 6 | ||
Net cash used in investing activities | -575 | -1,621 | ||
Cash Flows from Financing Activities: | ||||
Retirement of long-term debt | -498 | |||
Net repayments of short-term borrowings and current portion of long-term debt | -69 | -24 | ||
Principal payments under capital lease obligations | -2 | -1 | ||
Proceeds from issuance of long-term debt, net | 1,030 | |||
Proceeds received for incentives | 82 | |||
Payments to settle interest rate hedges | -18 | |||
Payments to acquire noncontrolling interest | -47 | |||
Proceeds from the exercise of stock options | 54 | 26 | ||
Repurchases of common stock for treasury | -441 | -580 | ||
Dividends paid | -426 | -339 | ||
Net cash (used in) provided by financing activities | -1,347 | 94 | ||
Effect of exchange rates on cash | -9 | -148 | ||
Net (decrease) increase in cash and cash equivalents | -428 | 291 | ||
Cash and cash equivalents at beginning of period | 4,988 | 4,661 | ||
Cash and cash equivalents at end of period | $4,560 | $4,952 | ||
[1] | As revised for the change in our method of recognizing pension expense. See Note 1 of Notes to Consolidated Financial Statements for a discussion of the change and the impacts of the change for the three and nine months ended September 30, 2012. |
Note_1_Significant_Accounting_
Note 1 - Significant Accounting Policies | 9 Months Ended | |||||||||||
Sep. 30, 2013 | ||||||||||||
Disclosure Text Block [Abstract] | ||||||||||||
Basis of Accounting [Text Block] | 1. Significant Accounting Policies | |||||||||||
Basis of Presentation | ||||||||||||
In these notes, the terms “Corning,” “Company,” “we,” “us,” or “our” mean Corning Incorporated and subsidiary companies. | ||||||||||||
The accompanying unaudited consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (SEC) and in accordance with U.S. GAAP for interim financial information. Certain information and note disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been omitted or condensed. These interim consolidated financial statements should be read in conjunction with Corning’s consolidated financial statements and notes thereto included in its Annual Report on Form 10-K for the year ended December 31, 2012 (2012 Form 10-K). | ||||||||||||
The unaudited consolidated financial statements reflect all adjustments which, in the opinion of management, are necessary for a fair statement of the results of operations, financial position and cash flows for the interim periods presented. All such adjustments are of a normal recurring nature. The results for interim periods are not necessarily indicative of results which may be expected for any other interim period or for the full year. | ||||||||||||
Employee Retirement Plans | ||||||||||||
In the first quarter of 2013, we elected to change our method of recognizing actuarial gains and losses for our defined benefit pension plans. Previously, we recognized the actuarial gains and losses as a component of Stockholders’ Equity on our consolidated balance sheets on an annual basis. These amounts were amortized into our operating results over the average remaining service period of employees expected to receive benefits under the plan, to the extent such gains and losses were outside of the corridor, where the corridor is equal to 10% of the greater of the benefit obligation or the market-related value of plan assets at the beginning of the year. In addition, we used a calculated market-related value of plan assets for purposes of calculating the expected return on plan assets that spread asset gains and losses over a 3-year period. We have elected to recognize the change in the fair value of plan assets in full and net actuarial gains and losses outside of the corridor annually in the fourth quarter of each year and whenever the plan is remeasured or valuation estimates are finalized. The remaining components of pension expense will be recorded on a quarterly basis. While the historical policy of recognizing pension expense was considered acceptable, we believe that the new policy is preferable as it recognizes the change in the fair value of plan assets in full and eliminates the delay in recognition of net actuarial gains and losses outside of the corridor. We have applied these changes retrospectively, adjusting all prior periods, as if the new accounting methodology was in effect during those periods. | ||||||||||||
Following are the changes to financial statement line items as a result of the accounting methodology change for the periods presented in the accompanying unaudited consolidated financial statements: | ||||||||||||
Consolidated Statements of Income | ||||||||||||
Three months ended September 30, 2013 | ||||||||||||
Previous | Reported | Effect of | ||||||||||
accounting | accounting | |||||||||||
method | change | |||||||||||
Cost of sales | $ | 1,179 | $ | 1,166 | $ | -13 | ||||||
Gross margin | 888 | 901 | 13 | |||||||||
Selling, general and administrative expenses | 272 | 265 | -7 | |||||||||
Research, development and engineering expenses | 188 | 184 | -4 | |||||||||
Operating income | 415 | 439 | 24 | |||||||||
Income before income taxes | 525 | 549 | 24 | |||||||||
Provision for income taxes | -132 | -141 | -9 | |||||||||
Net income attributable to Corning Incorporated | $ | 393 | $ | 408 | $ | 15 | ||||||
Earnings per common share attributable to Corning Incorporated – Basic | $ | 0.27 | $ | 0.28 | $ | 0.01 | ||||||
Earnings per common share attributable to Corning Incorporated – Diluted | $ | 0.27 | $ | 0.28 | $ | 0.01 | ||||||
Three months ended September 30, 2012 | ||||||||||||
Previously | Revised | Effect of | ||||||||||
reported | (after | accounting | ||||||||||
(before | accounting | change | ||||||||||
accounting | change) | |||||||||||
change) | ||||||||||||
Cost of sales | $ | 1,159 | $ | 1,149 | $ | -10 | ||||||
Gross margin | 879 | 889 | 10 | |||||||||
Selling, general and administrative expenses | 295 | 289 | -6 | |||||||||
Research, development and engineering expenses | 185 | 182 | -3 | |||||||||
Operating income | 392 | 411 | 19 | |||||||||
Income before income taxes | 608 | 627 | 19 | |||||||||
Provision for income taxes | -87 | -94 | -7 | |||||||||
Net income attributable to Corning Incorporated | $ | 521 | $ | 533 | $ | 12 | ||||||
Earnings per common share attributable to Corning Incorporated – Basic | $ | 0.35 | $ | 0.36 | $ | 0.01 | ||||||
Earnings per common share attributable to Corning Incorporated – Diluted | $ | 0.35 | $ | 0.36 | $ | 0.01 | ||||||
Nine months ended September 30, 2013 | ||||||||||||
Previous | Reported | Effect of | ||||||||||
accounting | accounting | |||||||||||
method | change | |||||||||||
Cost of sales | $ | 3,349 | $ | 3,309 | $ | -40 | ||||||
Gross margin | 2,514 | 2,554 | 40 | |||||||||
Selling, general and administrative expenses | 810 | 790 | -20 | |||||||||
Research, development and engineering expenses | 553 | 541 | -12 | |||||||||
Operating income | 1,115 | 1,187 | 72 | |||||||||
Income before income taxes | 1,834 | 1,906 | 72 | |||||||||
Provision for income taxes | -340 | -366 | -26 | |||||||||
Net income attributable to Corning Incorporated | $ | 1,494 | $ | 1,540 | $ | 46 | ||||||
Earnings per common share attributable to Corning Incorporated – Basic | $ | 1.02 | $ | 1.05 | $ | 0.03 | ||||||
Earnings per common share attributable to Corning Incorporated – Diluted | $ | 1.01 | $ | 1.04 | $ | 0.03 | ||||||
Nine months ended September 30, 2012 | ||||||||||||
Previously | Revised | Effect of | ||||||||||
reported | (after | accounting | ||||||||||
(before | accounting | change | ||||||||||
accounting | change) | |||||||||||
change) | ||||||||||||
Cost of sales | $ | 3,376 | $ | 3,345 | $ | -31 | ||||||
Gross margin | 2,490 | 2,521 | 31 | |||||||||
Selling, general and administrative expenses | 865 | 848 | -17 | |||||||||
Research, development and engineering expenses | 560 | 551 | -9 | |||||||||
Operating income | 1,043 | 1,100 | 57 | |||||||||
Income before income taxes | 1,736 | 1,793 | 57 | |||||||||
Provision for income taxes | -291 | -312 | -21 | |||||||||
Net income attributable to Corning Incorporated | $ | 1,445 | $ | 1,481 | $ | 36 | ||||||
Earnings per common share attributable to Corning Incorporated – Basic | $ | 0.96 | $ | 0.99 | $ | 0.03 | ||||||
Earnings per common share attributable to Corning Incorporated – Diluted | $ | 0.95 | $ | 0.98 | $ | 0.03 | ||||||
Consolidated Statements of Comprehensive Income | ||||||||||||
Three months ended September 30, 2013 | ||||||||||||
Previous | Reported | Effect of | ||||||||||
accounting | accounting | |||||||||||
method | change | |||||||||||
Net income attributable to Corning Incorporated | $ | 393 | $ | 408 | $ | 15 | ||||||
Other comprehensive income, net of tax | 326 | 313 | -13 | |||||||||
Comprehensive income attributable to Corning Incorporated | $ | 719 | $ | 721 | $ | 2 | ||||||
Three months ended September 30, 2012 | ||||||||||||
Previously | Revised | Effect of | ||||||||||
reported | (after | accounting | ||||||||||
(before | accounting | change | ||||||||||
accounting | change) | |||||||||||
change) | ||||||||||||
Net income attributable to Corning Incorporated | $ | 521 | $ | 533 | $ | 12 | ||||||
Other comprehensive income, net of tax | 241 | 231 | -10 | |||||||||
Comprehensive income attributable to Corning Incorporated | $ | 762 | $ | 764 | $ | 2 | ||||||
Nine months ended September 30, 2013 | ||||||||||||
Previous | Reported | Effect of | ||||||||||
accounting | accounting | |||||||||||
method | change | |||||||||||
Net income attributable to Corning Incorporated | $ | 1,494 | $ | 1,540 | $ | 46 | ||||||
Other comprehensive loss, net of tax | -390 | -431 | -41 | |||||||||
Comprehensive income attributable to Corning Incorporated | $ | 1,104 | $ | 1,109 | $ | 5 | ||||||
Nine months ended September 30, 2012 | ||||||||||||
Previously | Revised | Effect of | ||||||||||
reported | (after | accounting | ||||||||||
(before | accounting | change | ||||||||||
accounting | change) | |||||||||||
change) | ||||||||||||
Net income attributable to Corning Incorporated | $ | 1,445 | $ | 1,481 | $ | 36 | ||||||
Other comprehensive income, net of tax | 194 | 183 | -11 | |||||||||
Comprehensive income attributable to Corning Incorporated | $ | 1,639 | $ | 1,664 | $ | 25 | ||||||
Consolidated Balance Sheets | ||||||||||||
September 30, 2013 | ||||||||||||
Previous | Reported | Effect of | ||||||||||
accounting | accounting | |||||||||||
method | change | |||||||||||
Retained earnings | $ | 11,632 | $ | 11,017 | $ | -615 | ||||||
Accumulated other comprehensive loss | $ | -690 | $ | -75 | $ | 615 | ||||||
December 31, 2012 | ||||||||||||
Previously | Revised | Effect of | ||||||||||
reported | (after | accounting | ||||||||||
(before | accounting | change | ||||||||||
accounting | change) | |||||||||||
change) | ||||||||||||
Retained earnings | $ | 10,588 | $ | 9,932 | $ | -656 | ||||||
Accumulated other comprehensive (loss) income | $ | -300 | $ | 356 | $ | 656 | ||||||
Consolidated Statements of Cash Flows | ||||||||||||
Nine months ended September 30, 2013 | ||||||||||||
Previous | Reported | Effect of | ||||||||||
accounting | accounting | |||||||||||
method | change | |||||||||||
Cash flows from operating activities: | ||||||||||||
Net income | $ | 1,494 | $ | 1,540 | $ | 46 | ||||||
Deferred tax provision | $ | 115 | $ | 141 | $ | 26 | ||||||
Employee benefit payments less than expense | $ | 106 | $ | 34 | $ | -72 | ||||||
Nine months ended September 30, 2012 | ||||||||||||
Previously | Revised | Effect of | ||||||||||
reported | (after | accounting | ||||||||||
(before | accounting | change | ||||||||||
accounting | change) | |||||||||||
change) | ||||||||||||
Cash flows from operating activities: | ||||||||||||
Net income | $ | 1,445 | $ | 1,481 | $ | 36 | ||||||
Deferred tax provision | $ | 44 | $ | 65 | $ | 21 | ||||||
Employee benefit payments in excess of expense | $ | -57 | $ | -57 | ||||||||
Other (Expense) Income, Net | ||||||||||||
“Other (expense) income, net” in Corning’s consolidated statements of income includes the following (in millions): | ||||||||||||
Three months ended | Nine months ended | |||||||||||
September 30, | September 30, | |||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||
Royalty income from Samsung Corning Precision | $ | 14 | $ | 20 | $ | 43 | $ | 63 | ||||
Foreign currency exchange and hedge (losses) gains, net | -33 | -1 | 248 | 4 | ||||||||
Net loss attributable to noncontrolling interests | 1 | 1 | 4 | |||||||||
Other, net | 18 | -15 | 37 | -29 | ||||||||
Total | $ | -1 | $ | 5 | $ | 329 | $ | 42 | ||||
New Accounting Standards | ||||||||||||
In July 2013, the FASB issued Accounting Standards Update No. 2013-11 Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss or a Tax Credit Carryforward Exists. With certain exceptions, ASU 2013-11 requires entities to present an unrecognized tax benefit, or portion of an unrecognized tax benefit, as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss or a tax credit carryforward. The guidance is effective for interim and annual periods beginning after December 15, 2013 on either a prospective or retrospective basis with early adoption permitted. Corning does not expect adoption of this guidance to have a material impact on its consolidated results of operations and financial condition. | ||||||||||||
In July 2013, the FASB issued Accounting Standards Update No. 2013-10 Derivatives and Hedging (Topic 815): Inclusion of the Fed Funds Effective Swap Rate (or Overnight Index Swap Rate) as a Benchmark Interest Rate. ASU 2013-10 permits the use of the Fed Funds Effective Swap Rate as a benchmark interest rate for hedge accounting in addition to interest rates on direct Treasury obligation of the United States government and the LIBOR. In addition, the guidance removes the restriction on using different benchmark rates for similar hedges. The guidance became effective on a prospective basis for qualifying new or redesignated hedging relationships entered into on or after July 17, 2013. We are evaluating the potential impact of this guidance on our future hedge transactions. | ||||||||||||
In March 2013, the FASB issued Accounting Standards Update No. 2013-05 Foreign Currency Matters (Topic 830): Parent’s Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity. ASU 2013-05 clarifies when to release the cumulative translation adjustment into net income for transactions involving the disposition of some or all of an investment or a business combination achieved in stages (step acquisitions). The amendments are effective prospectively for interim and annual periods beginning on or after December 15, 2013. Corning does not expect adoption of this guidance to have a material impact on its consolidated results of operations and financial condition. | ||||||||||||
In February 2013, the FASB issued Accounting Standards Update No. 2013-04 Liabilities (Topic 405): Obligations Resulting from Joint and Several Liability Arrangements for Which the Total Amount of the Obligation Is Fixed at the Reporting Date. ASU 2013-04 requires an entity to measure such obligations as the sum of the amount that the reporting entity agreed to pay on the basis of its arrangement with co-obligors and any additional amount the reporting entity expects to pay on behalf of its co-obligors. The guidance is effective for interim and annual periods beginning after December 15, 2013. Retrospective presentation for all comparative period presented is required with early adoption permitted. Corning does not expect adoption of this guidance to have a material impact on its consolidated results of operations and financial condition. | ||||||||||||
Note_2_Restructuring_Impairmen
Note 2 - Restructuring, Impairment and Other Charges (Credits) | 9 Months Ended | |||||||||||
Sep. 30, 2013 | ||||||||||||
Restructuring and Related Activities [Abstract] | ||||||||||||
Restructuring and Related Activities Disclosure [Text Block] | 2. Restructuring, Impairment and Other Charges (Credits) | |||||||||||
2013 Activity | ||||||||||||
The following table summarizes the restructuring reserve activity for the nine months ended September 30, 2013 (in millions): | ||||||||||||
Reserve at | Net | Cash | Reserve at | |||||||||
January 1, | charges/ | payments | September 30, | |||||||||
2013 | (reversals) | 2013 | ||||||||||
Restructuring: | ||||||||||||
Employee-related costs | $ | 38 | $ | -1 | $ | -27 | $ | 10 | ||||
Other charges | 4 | -3 | 1 | |||||||||
Total restructuring activity | $ | 42 | $ | -1 | $ | -30 | $ | 11 | ||||
Cash payments for employee-related costs related to the 2012 corporate-wide restructuring plan are expected to be completed in 2013. Cash payments for exit activities were substantially completed in 2012. | ||||||||||||
2012 Activity | ||||||||||||
For the first nine months of 2012, there was no significant restructuring activity. | ||||||||||||
Note_3_Commitments_Contingenci
Note 3 - Commitments, Contingencies, and Guarantees | 9 Months Ended |
Sep. 30, 2013 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | 3. Commitments, Contingencies, and Guarantees |
Asbestos Litigation | |
Pittsburgh Corning Corporation. Corning and PPG Industries, Inc. (PPG) each own 50% of the capital stock of Pittsburgh Corning Corporation (PCC). Over a period of more than two decades, PCC and several other defendants have been named in numerous lawsuits involving claims alleging personal injury from exposure to asbestos. On April 16, 2000, PCC filed for Chapter 11 reorganization in the U.S. Bankruptcy Court for the Western District of Pennsylvania. Corning, with other relevant parties, has been involved in ongoing efforts to develop a Plan of Reorganization that would resolve the concerns and objections of the relevant parties. A proposed PCC plan of reorganization (Amended PCC Plan) filed in the U.S. Bankruptcy Court for the Western District of Pennsylvania was confirmed by a final order in May 2013; however, a motion for reconsideration has been filed. Corning also has an equity interest in Pittsburgh Corning Europe N.V. (PCE), a Belgian corporation, that is a component of the Company’s proposed resolution of the PCC asbestos litigation. At September 30, 2013 and December 31, 2012, the fair value of PCE exceeded its carrying value of $160 million and $149 million, respectively. | |
The Amended PCC Plan does not include certain other non-PCC asbestos claims that may be or have been raised against Corning. Corning has recorded in its estimated asbestos litigation liability an additional $150 million for the approximately 9,800 current non-PCC cases alleging injuries from asbestos, and for any future non-PCC cases. The liability for the Amended PCC Plan and the non-PCC asbestos claims was estimated to be $684 million at September 30, 2013, compared with an estimate of the liability of $671 million at December 31, 2012. In the three and nine months ended September 30, 2013, Corning recorded asbestos litigation expense of $5 million and $13 million, respectively. In the three and nine months ended September 30, 2012, Corning recorded asbestos litigation expense of $3 million and $9 million, respectively. The entire obligation is classified as a non-current liability as installment payments for the cash portion of the obligation are not planned to commence until more than 12 months after the Amended PCC Plan becomes effective and the PCE portion of the obligation will be fulfilled through the direct contribution of Corning’s investment in PCE (currently recorded as a non-current other equity method investment). | |
On May 16, 2013, the Bankruptcy Court issued an opinion and order confirming, on an interim basis, the Amended PCC Plan. On May 23, 2013, the Bankruptcy Court held a hearing to review motions for reconsideration of its interim order and, on May 24, 2013, it issued a revised opinion and final order confirming the Amended PCC Plan. On June 6, 2013, one party filed a motion for reconsideration of that final order which was scheduled for hearing on September 9, 2013. A different party, on June 7, 2013, filed a notice of an appeal of that final order to the U.S. District Court for the Western District of Pennsylvania, and this appeal has been stayed pending resolution of the other party’s motion for reconsideration. On July 23, 2013, the Bankruptcy Court issued an order deeming that appeal a nullity and indicating that interested parties shall have the right to file a notice of appeal within 14 days after the Court’s decision on the pending motion for reconsideration. By an order dated September 25, 2013, the Bankruptcy Court directed the parties to provide further information about a point on which the Court requires clarification before it can render a decision on the motion for reconsideration. The parties filed the requested information on October 9, 2013 and await a decision from the Court. | |
Other Commitments and Contingencies | |
In the normal course of our business, we do not routinely provide significant third-party guarantees. Generally, any third-party guarantees provided by Corning are limited to certain financial guarantees including stand-by letters of credit and performance bonds, and the incurrence of contingent liabilities in the form of purchase price adjustments related to attainment of milestones. When provided, these guarantees have various terms, and none of these guarantees are individually significant. | |
We have agreed to provide a credit facility to Dow Corning Corporation (Dow Corning). The funding of the Dow Corning credit facility will be required only if Dow Corning is not otherwise able to meet its scheduled funding obligations in its confirmed Bankruptcy Plan. We believe a significant majority of these guarantees and contingent liabilities will expire without being funded. | |
As of September 30, 2013 and December 31, 2012, contingent guarantees totaled a notional value of $150 million and $142 million, respectively. We believe a significant majority of these contingent guarantees will expire without being funded. We also were contingently liable for purchase obligations of $129 million and $89 million, at September 30, 2013 and December 31, 2012, respectively. | |
Product warranty liability accruals were considered insignificant at September 30, 2013 and December 31, 2012. | |
Corning is a defendant in various lawsuits, including environmental litigation, product-related suits, and the Dow Corning and PCC matters, and is subject to various claims which arise in the normal course of business. In the opinion of management, the likelihood that the ultimate disposition of these matters will have a material adverse effect on Corning’s consolidated financial position, liquidity, or results of operations, is remote. | |
In March of 2012, Corning received a grand jury subpoena issued in the United States District Court for the Eastern District of Michigan from the U.S. Department of Justice in connection with an investigation into conduct relating to possible antitrust law violations involving certain automotive products, including catalytic converters, diesel particulate filters, substrates and monoliths. Antitrust investigations can result in significant penalties being imposed by the antitrust authorities. Currently, Corning cannot estimate the ultimate financial impact, if any, resulting from the investigation, which is ongoing. Such potential impact, if an antitrust violation by Corning is found, could however, be material to the results of operations of Corning in a particular period. | |
Corning has been named by the Environmental Protection Agency (the Agency) under the Superfund Act or by state governments under similar state laws, as a potentially responsible party for 16 hazardous waste sites. Under the Superfund Act, all parties who may have contributed any waste to a hazardous waste site, identified by the Agency, are jointly and severally liable for the cost of cleanup unless the Agency agrees otherwise. Corning accrues for its estimated liability related to Superfund sites and other environmental liabilities related to property owned by Corning based on expert analysis and continual monitoring by both internal and external consultants. At September 30, 2013, and December 31, 2012, Corning had accrued approximately $16 million (undiscounted) and $21 million (undiscounted), respectively, for the estimated liability for environmental cleanup and related litigation. Based upon the information developed to date, management believes that the accrued reserve is a reasonable estimate of the Company’s liability and that the risk of an additional loss in an amount materially higher than that accrued is remote. | |
Note_4_Debt
Note 4 - Debt | 9 Months Ended |
Sep. 30, 2013 | |
Debt Disclosure [Abstract] | |
Debt Disclosure [Text Block] | 4. Debt |
Based on borrowing rates currently available to us for loans with similar terms and maturities, the fair value of long-term debt was $3.0 billion at September 30, 2013 and $3.7 billion at December 31, 2012. The Company measures the fair value of its long-term debt using Level 2 inputs based primarily on current market yields for its existing debt traded in the secondary market. | |
2013 | |
In the second quarter of 2013, the Company established a commercial paper program on a private placement basis, pursuant to which we may issue short-term, unsecured commercial paper notes up to a maximum aggregate principal amount outstanding at any time of $1 billion. Under this program, the Company may issue the notes from time to time and will use the proceeds for general corporate purposes. The maturities of the notes will vary, but may not exceed 390 days from the date of issue. The interest rates will vary based on market conditions and the ratings assigned to the notes by credit rating agencies at the time of issuance. The Company’s $1 billion revolving credit facility is available to support obligations under the commercial paper program, if needed. As of September 30, 2013, we did not have any outstanding commercial paper. | |
In the first quarter of 2013, we amended and restated our existing revolving credit facility. The amended facility provides a $1.0 billion unsecured multi-currency line of credit that expires in March 2018. The facility includes a leverage test (debt to capital ratio) financial covenant. As of September 30, 2013, we were in compliance with this covenant. The proceeds of this credit facility may be used for general corporate purposes, including support for our commercial paper program. | |
In the first quarter of 2013, Corning repaid the aggregate principal amount and accrued interest outstanding on the credit facility entered into in the second quarter of 2011 that allowed Corning to borrow up to Chinese Renminbi (RMB) 4.0 billion. The total amount repaid was approximately $500 million. Upon repayment, this facility was terminated. | |
2012 | |
In the first quarter of 2012, we issued $250 million of 4.70% senior unsecured notes and $500 million of 4.75% senior unsecured notes for net proceeds of approximately $247 million and $495 million, respectively. The 4.70% notes mature on March 15, 2037 and the 4.75% notes mature on March 15, 2042. | |
Note_5_Income_Taxes
Note 5 - Income Taxes | 9 Months Ended | |||||||||||
Sep. 30, 2013 | ||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||
Income Tax Disclosure [Text Block] | 5. Income Taxes | |||||||||||
Our provision for income taxes and the related effective income tax rates were as follows (in millions): | ||||||||||||
Three months ended | Nine months ended | |||||||||||
September 30, | September 30, | |||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||
Provision for income taxes (1) | $ | -141 | $ | -94 | $ | -366 | $ | -312 | ||||
Effective tax rate (1) | 25.70% | 15.00% | 19.20% | 17.40% | ||||||||
-1 | Results for 2012 include the impact of defined benefit pension plan methodology change implemented in the first quarter of 2013 and retrospectively applied to prior periods. See Note 1 of Notes to Consolidated Financial Statements for a discussion of the change and the impacts of the change for the three and nine months ended September 30, 2012. | |||||||||||
For the three and nine months ended September 30, 2013, the effective income tax rate differed from the U.S. statutory rate of 35% primarily due to the following items: | ||||||||||||
· | Rate differences on income (loss) of consolidated foreign companies; | |||||||||||
· | The impact of equity in earnings of nonconsolidated affiliates reported in the financials, net of tax; and | |||||||||||
· | The benefit of tax incentives in foreign jurisdictions, primarily Taiwan. | |||||||||||
In addition to the items noted above, the tax provision for the three months ended September 30, 2013 reflected the U.S. tax expense associated with the realized and unrealized gains on the translated earnings contracts. Refer to Note 14 (Hedging Activities) for further information. The provision also includes tax charges attributable to a change in judgment about the realizability of certain foreign and state deferred tax assets in the amounts of $28 million and $20 million, respectively, and the restatement for law changes enacted in the quarter. The tax provision for the nine months ended September 30, 2013, reflects a $54 million tax benefit to record the impact of the American Taxpayer Relief Act enacted on January 3, 2013 and made retroactive to 2012. | ||||||||||||
For the three and nine months ended September 30, 2012, the effective income tax rate differed from the U.S. statutory rate of 35% primarily due to the following items: | ||||||||||||
· | Rate differences on income (loss) of consolidated foreign companies; | |||||||||||
· | The impact of equity in earnings of nonconsolidated affiliates reported in the financials, net of tax; | |||||||||||
· | The expiration of favorable U.S. tax provisions; and | |||||||||||
· | The benefit of tax incentives in foreign jurisdictions, primarily Taiwan. | |||||||||||
Corning’s subsidiary in Taiwan is operating under tax holiday arrangements. The benefit of the arrangement phases out through 2018. The impact of the tax holiday on our effective tax rate is a reduction in the rate of 1.7 and 1.6 percentage points for the three months ended September 30, 2013 and 2012, respectively. The impact of the tax holiday on our effective tax rate is a reduction in the rate of 1.3 and 1.5 percentage points for the nine months ended September 30, 2013 and 2012, respectively. | ||||||||||||
Corning continues to indefinitely reinvest substantially all of its foreign earnings. Our current analysis indicates that we have sufficient U.S. liquidity, including borrowing capacity, to fund foreseeable U.S. cash needs without requiring the repatriation of foreign cash. One time or unusual items that may impact our ability or intent to keep our foreign earnings and cash indefinitely reinvested include significant U.S. acquisitions, stock repurchases, shareholder dividends, changes in tax laws and/or a change in our circumstances or economic conditions that negatively impact our ability to borrow or otherwise fund U.S. needs from existing U.S. sources. While it remains impracticable to calculate the tax cost of repatriating our total unremitted foreign earnings, such cost could be material to the results of operations of Corning in a particular period. | ||||||||||||
While we expect the amount of unrecognized tax benefits to change in the next 12 months, we do not expect the change to have a significant impact on the results of operations or our financial position. | ||||||||||||
Note_6_Earnings_per_Common_Sha
Note 6 - Earnings per Common Share | 9 Months Ended | |||||||||||
Sep. 30, 2013 | ||||||||||||
Earnings Per Share [Abstract] | ||||||||||||
Earnings Per Share [Text Block] | 6. Earnings per Common Share | |||||||||||
The reconciliation of the amounts used in the basic and diluted earnings per common share computations follows (in millions, except per share amounts): | ||||||||||||
Three months ended September 30, | ||||||||||||
2013 | 2012 | |||||||||||
Net | Weighted- | Per | Net | Weighted- | Per | |||||||
income | average | share | income | average | share | |||||||
attributable | shares | amount | attributable | shares | amount | |||||||
to Corning | to Corning | |||||||||||
Incorporated | Incorporated | |||||||||||
Basic earnings per common share | $408 | 1,454 | $0.28 | $533 | 1,483 | $0.36 | ||||||
Effect of dilutive securities: | ||||||||||||
Stock options and other dilutive securities | 9 | 11 | ||||||||||
Diluted earnings per common share | $408 | 1,463 | $0.28 | $533 | 1,494 | $0.36 | ||||||
Nine months ended September 30, | ||||||||||||
2013 | 2012 | |||||||||||
Net | Weighted- | Per | Net | Weighted- | Per | |||||||
income | average | share | income | average | share | |||||||
attributable | shares | amount | attributable | shares | amount | |||||||
to Corning | to Corning | |||||||||||
Incorporated | Incorporated | |||||||||||
Basic earnings per common share | $1,540 | 1,465 | $1.05 | $1,481 | 1,502 | $0.99 | ||||||
Effect of dilutive securities: | ||||||||||||
Stock options and other dilutive securities | 9 | 12 | ||||||||||
Diluted earnings per common share | $1,540 | 1,474 | $1.04 | $1,481 | 1,514 | $0.98 | ||||||
The following potential common shares were excluded from the calculation of diluted earnings per common share because their inclusion would have been anti-dilutive (in millions): | ||||||||||||
Three months ended | Nine months ended | |||||||||||
September 30, | September 30, | |||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||
Stock options and other dilutive securities excluded from the calculation of diluted earnings per common share | 36 | 44 | 40 | 43 | ||||||||
Note_7_AvailableforSale_Invest
Note 7 - Available-for-Sale Investments | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Available For Sale Investments [Abstract] | ||||||||||||||
Available For Sale Investments [Text Block] | 7. Available-for-Sale Investments | |||||||||||||
The following is a summary of the fair value of available-for-sale investments (in millions): | ||||||||||||||
Amortized cost | Fair value | |||||||||||||
September 30, | December 31, | September 30, | December 31, | |||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
Bonds, notes and other securities: | ||||||||||||||
U.S. government and agencies | $ | 884 | $ | 1,153 | $ | 886 | $ | 1,156 | ||||||
Total short-term investments | $ | 884 | $ | 1,153 | $ | 886 | $ | 1,156 | ||||||
Asset-backed securities | $ | 47 | $ | 51 | $ | 39 | $ | 40 | ||||||
Total long-term investments | $ | 47 | $ | 51 | $ | 39 | $ | 40 | ||||||
We do not intend to sell, nor do we believe it is more likely than not that we would be required to sell, the long-term investment asset-backed securities (which are collateralized by mortgages) before recovery of their amortized cost basis. It is possible that a significant degradation in the delinquency or foreclosure rates in the underlying assets could cause further temporary or other-than-temporary impairments in the future. | ||||||||||||||
The following table summarizes the maturities at market value of available-for-sale securities at September 30, 2013 (in millions): | ||||||||||||||
Less than one year | $634 | |||||||||||||
Due in 1-5 years | 252 | |||||||||||||
Due in 5-10 years | ||||||||||||||
Due after 10 years (1) | 39 | |||||||||||||
Total | $925 | |||||||||||||
-1 | Includes $39 million of asset-backed securities that mature over time and are being reported at their final maturity dates. | |||||||||||||
Unrealized gains and losses, net of tax, are computed on a specific identification basis and are reported as a separate component of accumulated other comprehensive (loss) income in shareholders’ equity until realized. | ||||||||||||||
The following tables provide the fair value and gross unrealized losses of the Company’s investments aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at September 30, 2013 and December 31, 2012 (in millions): | ||||||||||||||
September 30, 2013 | ||||||||||||||
12 months or greater | Total | |||||||||||||
Number of | Fair | Unrealized | Fair | Unrealized | ||||||||||
securities | value | losses | value | losses (1) | ||||||||||
in a loss | ||||||||||||||
position | ||||||||||||||
Asset-backed securities | 20 | $ | 38 | $ | -8 | $ | 38 | $ | -8 | |||||
Total long-term investments | 20 | $ | 38 | $ | -8 | $ | 38 | $ | -8 | |||||
-1 | Unrealized losses in securities less than 12 months were not significant. | |||||||||||||
December 31, 2012 | ||||||||||||||
12 months or greater | Total | |||||||||||||
Number of | Fair | Unrealized | Fair | Unrealized | ||||||||||
securities | value | losses (1) | value | losses | ||||||||||
in a loss | ||||||||||||||
position | ||||||||||||||
Asset-backed securities | 22 | $ | 40 | $ | -11 | $ | 40 | $ | -11 | |||||
Total long-term investments | 22 | $ | 40 | $ | -11 | $ | 40 | $ | -11 | |||||
-1 | Unrealized losses in securities less than 12 months were not significant. | |||||||||||||
As of September 30, 2013 and December 31, 2012, for securities that have credit losses, an unrealized loss on other than temporary impaired securities of $6M and $9M, respectively, is recognized within accumulated other comprehensive (loss) income. | ||||||||||||||
Proceeds from sales and maturities of short-term investments totaled approximately $1.5 billion and $1.6 billion for the nine months ended September 30, 2013 and 2012, respectively. | ||||||||||||||
Note_8_Inventories
Note 8 - Inventories | 9 Months Ended | |||||
Sep. 30, 2013 | ||||||
Inventory Disclosure [Abstract] | ||||||
Inventory Disclosure [Text Block] | 8. Inventories | |||||
Inventories comprise the following (in millions): | ||||||
September 30, | December 31, | |||||
2013 | 2012 | |||||
Finished goods | $ | 487 | $ | 392 | ||
Work in process | 225 | 168 | ||||
Raw materials and accessories | 329 | 271 | ||||
Supplies and packing materials | 234 | 220 | ||||
Total inventories | $ | 1,275 | $ | 1,051 | ||
Note_9_Investments
Note 9 - Investments | 9 Months Ended | |||||||||||
Sep. 30, 2013 | ||||||||||||
Equity Method Investments and Joint Ventures [Abstract] | ||||||||||||
Equity Method Investments and Joint Ventures Disclosure [Text Block] | 9. Investments | |||||||||||
Investments comprise the following (in millions): | ||||||||||||
Ownership | September 30, | December 31, | ||||||||||
interest (1) | 2013 | 2012 | ||||||||||
Affiliated companies accounted for by the equity method | ||||||||||||
Samsung Corning Precision Materials Co., Ltd. | 50% | $ | 3,506 | $ | 3,346 | |||||||
Dow Corning Corporation | 50% | 1,260 | 1,191 | |||||||||
All other | 20% | to | 50% | 376 | 375 | |||||||
5,142 | 4,912 | |||||||||||
Other investments | 18 | 3 | ||||||||||
Total | $ | 5,160 | $ | 4,915 | ||||||||
-1 | Amounts reflect Corning’s direct ownership interests in the respective affiliated companies. Corning does not exercise voting control nor control the operations of any of these entities. | |||||||||||
Related party information for these investments in affiliates follows (in millions): | ||||||||||||
Three months ended | Nine months ended | |||||||||||
September 30, | September 30, | |||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||
Related Party Transactions: | ||||||||||||
Corning sales to affiliated companies | $ | 3 | $ | 10 | $ | 9 | $ | 38 | ||||
Corning purchases from affiliated companies | $ | 33 | $ | 49 | $ | 170 | $ | 117 | ||||
Corning transfers of assets, at cost, to affiliated companies | $ | 12 | $ | 11 | $ | 25 | $ | 36 | ||||
Dividends received from affiliated companies | $ | 39 | $ | 56 | $ | 221 | $ | 577 | ||||
Royalty income from affiliated companies | $ | 15 | $ | 20 | $ | 45 | $ | 64 | ||||
Corning services to affiliates | $ | 6 | $ | 2 | $ | 22 | ||||||
As of September 30, 2013, balances due to and due from affiliates were $20 million and $43 million, respectively. As of December 31, 2012, balances due to and due from affiliates were $37 million and $61 million, respectively. | ||||||||||||
We have contractual agreements with several of our equity affiliates, including sales, purchasing, and licensing and technology agreements. | ||||||||||||
Summarized results of operations for our two significant investments accounted for by the equity method follow: | ||||||||||||
Samsung Corning Precision Materials Co. Ltd. (Samsung Corning Precision) | ||||||||||||
Samsung Corning Precision is a South Korea-based manufacturer primarily of liquid crystal display (LCD) glass for flat panel displays. Samsung Corning Precision’s results of operations follow (in millions): | ||||||||||||
Three months ended | Nine months ended | |||||||||||
September 30, | September 30, | |||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||
Statement of Operations: | ||||||||||||
Net sales | $ | 541 | $ | 783 | $ | 1,790 | $ | 2,352 | ||||
Gross profit | $ | 286 | $ | 534 | $ | 1,034 | $ | 1,598 | ||||
Net income attributable to Samsung Corning Precision | $ | 154 | $ | 367 | $ | 650 | $ | 1,140 | ||||
Corning’s equity in earnings of Samsung Corning Precision | $ | 74 | $ | 186 | $ | 319 | $ | 562 | ||||
Related Party Transactions: | ||||||||||||
Corning purchases from Samsung Corning Precision | $ | 27 | $ | 31 | $ | 150 | $ | 83 | ||||
Dividends received from Samsung Corning Precision | $ | 518 | ||||||||||
Royalty income from Samsung Corning Precision | $ | 14 | $ | 20 | $ | 43 | $ | 63 | ||||
Corning transfers of machinery and equipment to Samsung Corning Precision at cost (1) | $ | 12 | $ | 13 | $ | 25 | $ | 53 | ||||
-1 | Corning purchases machinery and equipment on behalf of Samsung Corning Precision to support its capital expansion initiatives. The machinery and equipment are transferred to Samsung Corning Precision at our cost basis. | |||||||||||
In the three and nine months ended September 30, 2013, Corning’s equity earnings were negatively impacted by $14 million and $41 million, respectively, when compared to the same periods in the prior year, as a result of higher taxes due to the partial expiration of tax holidays in South Korea. | ||||||||||||
As of September 30, 2013, balances due from Samsung Corning Precision were $8 million and balances due to Samsung Corning Precision were $18 million. As of December 31, 2012, balances due from Samsung Corning Precision were $15 million and balances due to Samsung Corning Precision were $34 million. | ||||||||||||
Corning owns 50% of Samsung Corning Precision. Samsung Display Co., Ltd. owns 43% and other shareholders own the remaining 7%. | ||||||||||||
In April 2011, South Korean tax authorities completed a tax audit of Samsung Corning Precision. As a result, the tax authorities issued a pre-assessment of approximately $46 million for an asserted underpayment of withholding tax on dividends paid from September 2006 through March 2009. Our first level of appeal was denied on October 5, 2011 and a formal assessment was issued. The assessment was paid in full in the fourth quarter of 2011, which will allow us to continue the appeal process. Samsung Corning Precision and Corning believe we will maintain our position when all available appeal remedies have been exhausted. | ||||||||||||
Dow Corning Corporation (Dow Corning) | ||||||||||||
Dow Corning is a U.S.-based manufacturer of silicon products. Dow Corning’s results of operations follow (in millions): | ||||||||||||
Three months ended | Nine months ended | |||||||||||
September 30, | September 30, | |||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||
Statement of Operations: | ||||||||||||
Net sales | $ | 1,427 | $ | 1,545 | $ | 4,120 | $ | 4,638 | ||||
Gross profit (1) | $ | 265 | $ | 382 | $ | 868 | $ | 1,114 | ||||
Net income attributable to Dow Corning | $ | 117 | $ | 97 | $ | 267 | $ | 288 | ||||
Corning’s equity in earnings of Dow Corning | $ | 57 | $ | 48 | $ | 137 | $ | 144 | ||||
Related Party Transactions: | ||||||||||||
Corning purchases from Dow Corning | $ | 5 | $ | 6 | $ | 16 | $ | 18 | ||||
Dividends received from Dow Corning | $ | 31 | $ | 50 | $ | 69 | $ | 50 | ||||
-1 | Gross profit for the three months ended September 30, 2013 includes R&D cost of $59 million (2012: $73 million) and selling expenses of $4 million (2012: $4 million). Gross profit for the nine months ended September 30, 2013 includes R&D cost of $186 million (2012: $211 million) and selling expenses of $10 million (2012: $11 million). | |||||||||||
At September 30, 2013 and December 31, 2012, amounts owed to Dow Corning were not significant. | ||||||||||||
At September 30, 2013, Dow Corning’s marketable securities included approximately $73 million of auction rate securities, net of a temporary impairment of an insignificant amount. | ||||||||||||
Corning and The Dow Chemical Company (Dow Chemical) each own 50% of the common stock of Dow Corning. In May 1995, Dow Corning filed for bankruptcy protection to address pending and claimed liabilities arising from many thousands of breast implant product lawsuits. On June 1, 2004, Dow Corning emerged from Chapter 11 with a Plan of Reorganization (the Plan) which provided for the settlement or other resolution of implant claims. Under the terms of the Plan, Dow Corning has established and is funding a settlement trust and a litigation facility to provide a means for tort claimants to settle or litigate their claims. Inclusive of insurance, Dow Corning has paid approximately $1.8 billion to the settlement trust. As of September 30, 2013, Dow Corning had recorded a reserve for breast implant litigation of $1.6 billion. | ||||||||||||
As a separate matter arising from the bankruptcy proceedings, Dow Corning is defending claims asserted by a number of commercial creditors who claim additional interest at default rates and enforcement costs, during the period from May 1995 through June 2004. As of September 30, 2013, Dow Corning has estimated the liability to commercial creditors to be within the range of $93 million to $304 million. As Dow Corning management believes no single amount within the range appears to be a better estimate than any other amount within the range, Dow Corning has recorded the minimum liability within the range. Should Dow Corning not prevail in this matter, Corning’s equity earnings would be reduced by its 50% share of the amount in excess of $93 million, net of applicable tax benefits. | ||||||||||||
On July 20, 2012, the Chinese Ministry of Commerce (“MOFCOM”) initiated anti-dumping and countervailing duty investigations of imports of solar-grade polycrystalline silicon products from the U.S. and South Korea, based on a petition filed by Chinese solar-grade polycrystalline silicon producers. The petition alleges that producers within these countries, including a consolidated subsidiary of Dow Corning, exported solar-grade polycrystalline silicon to China at less than normal value, and that production of solar-grade polycrystalline silicon in the U.S. has been subsidized by the U.S. government. On July 18, 2013, MOFCOM announced its preliminary determination that China’s solar-grade polycrystalline silicon industry suffered material damage because of dumping by producers in the U.S. and South Korea. The Chinese authorities imposed provisional antidumping duties on producers in the U.S. and South Korea ranging from 2.4% to 57.0%, including duties of 53.3% on future imports of solar-grade polycrystalline silicon products from Dow Corning and its consolidated subsidiaries into China. On September 16, 2013, the Chinese authorities imposed provisional countervailing duties of 6.5%. Although subject to a final review process by MOFCOM, the requirement for customers to pay provisional duties on imports from solar-grade polycrystalline silicon producers became effective on July 24, 2013 for the antidumping duties and on September 20, 2013 for the countervailing duties. The Company will not be subject to duties for previous sales. The Company is cooperating with MOFCOM in the investigations and is vigorously contesting the determination. | ||||||||||||
As discussed in our 2012 Form 10-K, during the fourth quarter of 2012, negative events and circumstances at Dow Corning indicated that assets of Dow Corning’s polycrystalline silicon business might be impaired. In accordance with accounting guidance for impairment of long-lived assets, Dow Corning compared estimated undiscounted cash flows to the assets’ carrying value and determined that the asset group was recoverable as of December 31, 2012. Upon receiving the preliminary determination notices from MOFCOM in the third quarter of 2013, Dow Corning again evaluated whether the polycrystalline silicon assets might be impaired. The estimate of future undiscounted cash flows continued to indicate the assets were expected to be recovered. However, it is reasonably possible that the estimate of undiscounted cash flows may change in the near term resulting in the need to write down those assets to fair value. Dow Corning’s estimate of cash flows might change as a result of continued pricing deterioration, ongoing oversupply in the market, or other adverse market conditions that result in non-performance by customers under long-term contracts. Corning’s share of the carrying value of this asset group is approximately $800 million, after tax. | ||||||||||||
Note_10_Acquisition
Note 10 - Acquisition | 9 Months Ended | ||
Sep. 30, 2013 | |||
Business Combinations [Abstract] | |||
Business Combination Disclosure [Text Block] | 10. Acquisition | ||
On October 31, 2012, Corning acquired all of the shares of Discovery Labware, Inc. and Plasso Technology Limited and certain other assets (collectively referred to as “Purchased Assets”) from Becton Dickinson and Company for approximately $739 million. The Purchased Assets constitute a business; therefore, the acquisition was accounted for as a business combination. The business, referred to as Discovery Labware, designs, manufactures, markets and supplies cell culture, other laboratory reagents, core and advanced consumables for basic and applied research for life scientists, clinical researchers, and laboratory professionals globally. | |||
The purchase price of the acquisition was allocated to the net tangible and other intangible assets acquired, with the remainder recorded as goodwill on the basis of fair value as follows (in millions): | |||
Inventory and other current assets | $ | 74 | |
Fixed Assets | 81 | ||
Other intangible assets | 279 | ||
Net tangible and intangible assets | $ | 434 | |
Purchase price | 739 | ||
Goodwill (1) | $ | 305 | |
-1 | The goodwill recognized is partly deductible for U.S. income tax purposes. The goodwill was allocated to the Life Sciences segment. | ||
Goodwill is primarily related to the value of the Discovery Labware product portfolio and distribution network and its combination with Corning’s existing life sciences platform, as well as synergies and other intangibles that do not qualify for separate recognition. Other intangible assets consist mainly of distributor relationships, trademark and trade names and are amortized over a useful life of 20 years. Acquisition-related costs of $22 million in the twelve months ended December 31, 2012 included costs for legal, accounting, valuation and other professional services and were included in selling, general and administrative expense in the Consolidated Statements of Income. Supplemental pro forma information was not provided because the Purchased Assets are not material to Corning’s consolidated financial statements. | |||
Note_11_Property_Net_of_Accumu
Note 11 - Property, Net of Accumulated Depreciation | 9 Months Ended | |||||
Sep. 30, 2013 | ||||||
Property, Plant and Equipment [Abstract] | ||||||
Property, Plant and Equipment Disclosure [Text Block] | 11. Property, Net of Accumulated Depreciation | |||||
Property, net follows (in millions): | ||||||
September 30, | December 31, | |||||
2013 | 2012 | |||||
Land | $ | 115 | $ | 112 | ||
Buildings | 4,218 | 4,324 | ||||
Equipment | 12,402 | 12,571 | ||||
Construction in progress | 1,139 | 1,270 | ||||
17,874 | 18,277 | |||||
Accumulated depreciation | -7,897 | -7,652 | ||||
Total | $ | 9,977 | $ | 10,625 | ||
In the three months ended September 30, 2013 and 2012, interest costs capitalized as part of property, net, were $8 million and $19 million, respectively. In the nine months ended September 30, 2013 and 2012, interest costs capitalized as part of property, net, were $25 million and $62 million, respectively | ||||||
Manufacturing equipment includes certain components of production equipment that are constructed of precious metals. At September 30, 2013 and December 31, 2012, the recorded value of precious metals each totaled $2.3 billion and $2.4 billion, respectively. Depletion expense for precious metals in the three months ended September 30, 2013 and 2012 each totaled $4 million. Depletion expense for precious metals in the nine months ended September 30, 2013 and 2012 totaled $15 million and $14 million, respectively. | ||||||
Note_12_Goodwill_and_Other_Int
Note 12 - Goodwill and Other Intangible Assets | 9 Months Ended | |||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Text Block] | 12. Goodwill and Other Intangible Assets | |||||||||||||||||
The carrying amount of goodwill by segment for the periods ended September 30, 2013 and December 31, 2012 is as follows (in millions): | ||||||||||||||||||
Telecom- | Display | Specialty | Life | Total | ||||||||||||||
munications | Technologies | Materials | Sciences | |||||||||||||||
Balance at December 31, 2012 | $ | 209 | $ | 9 | $ | 150 | $ | 606 | $ | 974 | ||||||||
Acquired goodwill (1) | 32 | 32 | ||||||||||||||||
Measurement period adjustment (2) | -4 | -4 | ||||||||||||||||
Foreign currency translation adjustment | -1 | -1 | ||||||||||||||||
Balance at September 30, 2013 | $ | 240 | $ | 9 | $ | 150 | $ | 602 | $ | 1,001 | ||||||||
-1 | The company recorded a small acquisition and consolidated an equity company due to a change in control in the second quarter of 2013. | |||||||||||||||||
-2 | The Company recorded the acquisition of the Discovery Labware business of Becton Dickinson and Company in the fourth quarter of 2012. In the second quarter of 2013, Corning recorded measurement period adjustments. | |||||||||||||||||
Corning’s gross goodwill balances were $7.5 billion and $7.4 billion for the periods ended September 30, 2013 and December 31, 2012, respectively. Accumulated impairment losses were $6.5 billion for the periods ended September 30, 2013 and December 31, 2012, and were generated entirely through goodwill impairments related to the Telecommunications segment recorded primarily in 2001. | ||||||||||||||||||
Other intangible assets are as follows (in millions): | ||||||||||||||||||
September 30, 2013 | December 31, 2012 | |||||||||||||||||
Gross | Accumulated | Net | Gross | Accumulated | Net | |||||||||||||
amortization | amortization | |||||||||||||||||
Amortized intangible assets: | ||||||||||||||||||
Patents, trademarks, and trade names | $ | 290 | $ | -135 | $ | 155 | $ | 282 | $ | -128 | $ | 154 | ||||||
Customer lists and other | 437 | -42 | 395 | 394 | -26 | 368 | ||||||||||||
Total | $ | 727 | $ | -177 | $ | 550 | $ | 676 | $ | -154 | $ | 522 | ||||||
Amortized intangible assets are primarily related to the Telecommunications and Life Sciences segments. The net carrying amount of intangible assets increased $28 million during the first nine months of 2013, primarily due to a small acquisition completed in the third quarter of 2013. This was offset by amortization of $24 million and foreign currency translation adjustments of $4 million. | ||||||||||||||||||
Amortization expense related to these intangible assets is estimated to be $32 million for 2013, and approximately $32 million for 2014 through 2018. | ||||||||||||||||||
Note_13_Employee_Retirement_Pl
Note 13 - Employee Retirement Plans | 9 Months Ended | |||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ||||||||||||||||||||||||
Pension and Other Postretirement Benefits Disclosure [Text Block] | 13. Employee Retirement Plans | |||||||||||||||||||||||
As discussed in Note 1 to the financial statements, in the first quarter of 2013, we elected to change our method of recognizing actuarial gains and losses for our defined benefit pension plans. In the second quarter of 2013, we recorded a pre-tax gain in the amount of $41 million which represented the impact to income for the finalization of the valuation of our defined benefit pension plan obligation dated December 31, 2012. | ||||||||||||||||||||||||
The following table summarizes the components of net periodic benefit cost for Corning’s defined benefit pension and postretirement health care and life insurance plans (in millions): | ||||||||||||||||||||||||
Pension benefits | Postretirement benefits | |||||||||||||||||||||||
Three months ended | Nine months ended | Three months ended | Nine months ended | |||||||||||||||||||||
September 30, | September 30, | September 30, | September 30, | |||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||
Service cost | $ | 16 | $ | 16 | $ | 53 | $ | 46 | $ | 3 | $ | 3 | $ | 10 | $ | 9 | ||||||||
Interest cost | 33 | 38 | 99 | 114 | 10 | 11 | 29 | 33 | ||||||||||||||||
Expected return on plan assets (1) | -42 | -41 | -126 | -123 | ||||||||||||||||||||
Amortization of net loss (1) | 3 | 4 | 11 | 12 | ||||||||||||||||||||
Amortization of prior service cost | 1 | 1 | 3 | 3 | -1 | -1 | -4 | -3 | ||||||||||||||||
Recognition of actuarial gain | -41 | |||||||||||||||||||||||
Total pension and postretirement benefit expense (1) | $ | 8 | $ | 14 | $ | -12 | $ | 40 | $ | 15 | $ | 17 | $ | 46 | $ | 51 | ||||||||
-1 | Amounts for 2012 were revised for the change in our method of recognizing pension expense. See Note 1 of Notes to Consolidated Financial Statements for a discussion of the change and the impacts of the change for the three and nine months ended September 30, 2012. | |||||||||||||||||||||||
Corning offers postretirement plans that provide health care and life insurance benefits for retirees and eligible dependents. Certain employees may become eligible for such postretirement benefits upon reaching retirement age and service requirements. For current retirees (including surviving spouses) and active employees eligible for the salaried retiree medical program, we placed a “cap” on the amount we will contribute toward retiree medical coverage in the future. The cap is equal to 120% of our 2005 contributions toward retiree medical benefits. Once our contributions toward salaried retiree medical costs reach this cap, impacted retirees will have to pay the excess amount in addition to their regular contributions for coverage. This cap was attained for post-65 retirees in 2008 and has impacted their contribution rate in 2009 and going forward. The pre-65 retirees triggered the cap in 2010, which has impacted their contribution rate in 2011 and going forward. Furthermore, employees hired or rehired on or after January 1, 2007 will be eligible for Corning retiree medical upon retirement; however, these employees will pay 100% of the cost. | ||||||||||||||||||||||||
Note_14_Hedging_Activities
Note 14 - Hedging Activities | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Text Block] | 14. Hedging Activities | |||||||||||||||
Corning is exposed to interest rate and foreign currency risks due to the movement of these rates. | ||||||||||||||||
The areas in which exchange rate fluctuations affect us include: | ||||||||||||||||
· | Financial instruments and transactions denominated in foreign currencies, which impact earnings; and | |||||||||||||||
· | The translation of net assets in foreign subsidiaries for which the functional currency is not the U.S. dollar, which impacts our net equity. | |||||||||||||||
Our most significant foreign currency exposures relate to the Japanese yen, South Korean won, New Taiwan dollar, Chinese Renminbi, and the Euro. We seek to mitigate the impact of exchange rate movements on our operating results by using over-the-counter (OTC) derivative instruments including foreign exchange forward and option contracts typically with durations of 36 months or less. In general, these hedges expire coincident with the timing of the underlying foreign currency commitments and transactions. | ||||||||||||||||
We are exposed to potential losses in the event of non-performance by our counterparties to these derivative contracts. However, we minimize this risk by limiting the counterparties to a diverse group of highly-rated major international financial institutions with which we have other financial relationships. We do not expect to record any losses as a result of such counterparty default. Neither we nor our counterparties are required to post collateral for these financial instruments. In July 2013, the Finance Committee of the Board of Directors approved the Company’s qualification for and election of the end-user exception to the mandatory swap clearing requirement of the Dodd-Frank Act. | ||||||||||||||||
Cash Flow Hedges | ||||||||||||||||
Our cash flow hedging activities utilize OTC foreign exchange forward contracts to reduce the risk that movements in exchange rates will adversely affect the net cash flows resulting from the sale of products to foreign customers and purchases from foreign suppliers. Our cash flow hedging activity also uses interest rate swaps to reduce the risk of increases in benchmark interest rates on the probable issuance of debt and associated interest payments. Corning uses a regression analysis to monitor the effectiveness of its cash flow hedges both prospectively and retrospectively. Through September 30, 2013, the hedge ineffectiveness related to these instruments is not material. Corning defers net gains and losses related to effective portion of cash flow hedges into accumulated other comprehensive (loss) income on the consolidated balance sheet until such time as the hedged item impacts earnings. At September 30, 2013, the amount of net gain expected to be reclassified into earnings within the next 12 months is $26 million. | ||||||||||||||||
Fair Value Hedges | ||||||||||||||||
In October of 2012, we entered into two interest rate swaps that are designated as fair value hedges and economically exchange a notional amount of $550 million of previously issued fixed rate long-term debt to floating rate debt. Under the terms of the swap agreements, we pay the counterparty a floating rate that is indexed to the one-month LIBOR rate. | ||||||||||||||||
Corning utilizes the long haul method for effectiveness analysis, both retrospectively and prospectively. The analysis excludes the impact of credit risk from the assessment of hedge effectiveness. The amount recorded in current period earnings in the other income, net component, relative to ineffectiveness, is nominal for the three and nine months ended September 30, 2013. There were no outstanding fair value hedges in the three and nine months ended September 30, 2012. | ||||||||||||||||
Net gains and losses from fair value hedges and the effects of the corresponding hedged item are recorded on the same line item of the consolidated statement of operations. | ||||||||||||||||
Undesignated Hedges | ||||||||||||||||
Corning also uses OTC foreign exchange forward and option contracts that are not designated as hedging instruments for accounting purposes. The undesignated hedges limit exposures to foreign functional currency fluctuations related to certain subsidiaries’ monetary assets, monetary liabilities and net earnings in foreign currencies. | ||||||||||||||||
A significant portion of the Company’s non-U.S. revenues are denominated in Japanese yen. When these revenues are translated back to U.S. dollars, the Company is exposed to foreign exchange rate movements in the Japanese yen. To protect translated earnings against movements in the Japanese yen, the Company has entered into a series of purchased collars and average rate forwards. | ||||||||||||||||
The Company also uses these types of contracts to reduce the potential for unfavorable changes in foreign exchange rates to decrease the U.S. dollar value of translated earnings. With a purchased collar structure, the Company writes a local currency call option and purchases a local currency put option. The purchased collars offset the impact of translated earnings above the put price and below the call strike price and that offset is reported in other income, net. The Company entered into a series of purchased collars, settling quarterly, to hedge the effect of translation impact for each respective quarter, and span up to the fourth quarter of 2014. Due to the nature of the instruments, only either the put option or the call option can be exercised at maturity. As of September 30, 2013, the U.S. dollar net notional value of the purchased collars is $3.7 billion. The Company entered into a series of average rate forwards with no associated premium, which will partially hedge the impact of Japanese yen translation on the Company’s projected 2015 net income. These forwards settle net without obligation to deliver Japanese yen. | ||||||||||||||||
The Company benefits from the increase in the U.S. dollar equivalent value of its foreign currency earnings in translation. The purchased collar, within other income, would cap the benefit at the strike price of the written call or offset the decline from translation above the strike price of the purchased put. | ||||||||||||||||
The fair value of these derivative contracts are recorded as either assets (gain position) or liabilities (loss position) on the Consolidated Balance Sheet. Changes in the fair value of the derivative contracts are recorded currently in earnings in the other income line of the Consolidated Statement of operations. | ||||||||||||||||
The following table summarizes the notional amounts and respective fair values of Corning’s derivative financial instruments on a gross basis for September 30, 2013 and December 31, 2012 (in millions): | ||||||||||||||||
U.S. Dollar | Asset derivatives | Liability derivatives | ||||||||||||||
Gross notional amount | Balance | Fair value | Balance | Fair value | ||||||||||||
Sept. 30, | Dec. 31, | sheet location | Sept. 30, | Dec. 31, | sheet location | Sept. 30, | Dec. 31, | |||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | |||||||||||
Derivatives designated as hedging instruments | ||||||||||||||||
Foreign exchange contracts | $ 308 | $ 719 | Other current assets | $ 28 | $ 57 | Other accrued liabilities | $ (2) | $ (3) | ||||||||
Interest rate contracts | $ 1,300 | $ 550 | Other assets | $ 40 | Other liabilities | ($22) | ||||||||||
Derivatives not designated as hedging instruments | ||||||||||||||||
Foreign exchange contracts | $ 591 | $1,939 | Other current assets | $ 8 | $109 | Other accrued liabilities | $ (8) | ($10) | ||||||||
Translated earnings contracts | $ 8,174 | Other current assets | $172 | Other accrued liabilities | ($13) | |||||||||||
Other assets | $ 95 | Other liabilities | $ (9) | |||||||||||||
Total derivatives | $10,373 | $3,208 | $343 | $166 | ($54) | ($13) | ||||||||||
The following table summarizes the effect of derivative financial instruments on Corning’s consolidated financial statements for the three months ended September 30, 2013 and 2012 (in millions): | ||||||||||||||||
Effect of derivative instruments on the consolidated financial statements | ||||||||||||||||
for the three months ended September 30 (2) | ||||||||||||||||
Derivatives in hedging relationships | Gain/(loss) | Location of gain | Gain reclassified from | |||||||||||||
recognized in other | reclassified from | accumulated OCI into | ||||||||||||||
comprehensive income | accumulated OCI into | income (effective) (1) | ||||||||||||||
(OCI) | income (effective) | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
- | Sales | $1 | ||||||||||||||
Interest rate contracts | $3 | Cost of sales | $ 9 | 3 | ||||||||||||
Foreign exchange contracts | (3) | ($3) | Royalties | 17 | ||||||||||||
Total cash flow hedges | $0 | ($3) | $26 | $4 | ||||||||||||
-1 | The amount of hedge ineffectiveness for the three months ended September 30, 2013 and 2012 was insignificant. | |||||||||||||||
-2 | Certain amounts for prior periods were reclassified to conform to the current year presentation. | |||||||||||||||
The following table summarizes the effect of derivative financial instruments on Corning’s consolidated financial statements for the nine months ended September 30, 2013 and 2012 (in millions): | ||||||||||||||||
Effect of derivative instruments on the consolidated financial statements | ||||||||||||||||
for the nine months ended September 30 (2) | ||||||||||||||||
Derivatives in hedging relationships | Gain recognized in other | Location of gain | Gain reclassified from | |||||||||||||
comprehensive income | reclassified from | accumulated OCI into | ||||||||||||||
(OCI) | accumulated OCI into | income (effective) (1) | ||||||||||||||
2013 | 2012 | income (effective) | 2013 | 2012 | ||||||||||||
- | Sales | $ 1 | ||||||||||||||
Interest rate contracts | $40 | $15 | Cost of sales | $28 | 9 | |||||||||||
Foreign exchange contracts | 48 | 29 | Royalties | 48 | 6 | |||||||||||
Total cash flow hedges | $88 | $44 | $76 | $16 | ||||||||||||
-1 | The amount of hedge ineffectiveness for the nine months ended September 30, 2013 and 2012 was insignificant. | |||||||||||||||
-2 | Certain amounts for prior periods were reclassified to conform to the current year presentation. | |||||||||||||||
The following table summarizes the effect on the consolidated financial statements relating to Corning’s derivative financial instruments (in millions): | ||||||||||||||||
Undesignated derivatives | Location of gain/(loss) | Gain/(loss) recognized in income | ||||||||||||||
recognized in income | Three months ended | Nine months ended | ||||||||||||||
September 30, | September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Foreign exchange contracts | Other income, net | $ 14 | ($61) | $219 | $73 | |||||||||||
Translated earnings contracts | Other income, net | (46) | 205 | |||||||||||||
Total undesignated | ($32) | ($61) | $424 | $73 | ||||||||||||
Note_15_Fair_Value_Measurement
Note 15 - Fair Value Measurements | 9 Months Ended | ||||||||||
Sep. 30, 2013 | |||||||||||
Fair Value Disclosures [Abstract] | |||||||||||
Fair Value Disclosures [Text Block] | 15. Fair Value Measurements | ||||||||||
Fair value standards under U.S. GAAP define fair value, establish a framework for measuring fair value in applying generally accepted accounting principles, and require disclosures about fair value measurements. The standards also identify two kinds of inputs that are used to determine the fair value of assets and liabilities: observable and unobservable. Observable inputs are based on market data or independent sources while unobservable inputs are based on the Company’s own market assumptions. Once inputs have been characterized, the inputs are prioritized into one of three broad levels (provided in the table below) used to measure fair value. | |||||||||||
Fair value standards apply whenever an entity is measuring fair value under accounting pronouncements that require or permit fair value measurement and require the use of observable market data when available. As of September 30, 2013 and December 31, 2012, the Company did not have any financial assets or liabilities that were measured on a recurring basis using unobservable (or Level 3) inputs. | |||||||||||
The following tables provide fair value measurement information for the Company’s major categories of financial assets and liabilities measured on a recurring basis (in millions): | |||||||||||
Fair value measurements at reporting date using | |||||||||||
September 30, | Quoted prices in | Significant other | Significant | ||||||||
2013 | active markets for | observable | unobservable | ||||||||
identical assets | inputs | inputs | |||||||||
(Level 1) | (Level 2) | (Level 3) | |||||||||
Current assets: | |||||||||||
Short-term investments | $ | 886 | $ | 886 | |||||||
Other current assets (1) | $ | 208 | $ | 208 | |||||||
Non-current assets: | |||||||||||
Other assets (1)(2) | $ | 174 | $ | 174 | |||||||
Current liabilities: | |||||||||||
Other accrued liabilities (1) | $ | 23 | $ | 23 | |||||||
Non-current liabilities: | |||||||||||
Other liabilities (1) | $ | 31 | $ | 31 | |||||||
-1 | Derivative assets and liabilities include foreign exchange contracts, interest rate contracts, and translated earnings contracts which are measured using observable quoted prices for similar assets and liabilities. | ||||||||||
-2 | Other assets include asset-backed securities which are measured using observable quoted prices for similar assets. | ||||||||||
Fair value measurements at reporting date using | |||||||||||
December 31, | Quoted prices in | Significant other | Significant | ||||||||
2012 | active markets for | observable | unobservable | ||||||||
identical assets | inputs | inputs | |||||||||
(Level 1) | (Level 2) | (Level 3) | |||||||||
Current assets: | |||||||||||
Short-term investments | $ | 1,156 | $ | 1,156 | |||||||
Other current assets (1) | $ | 166 | $ | 166 | |||||||
Non-current assets: | |||||||||||
Other assets (2) | $ | 40 | $ | 40 | |||||||
Current liabilities: | |||||||||||
Other accrued liabilities (1) | $ | 13 | $ | 13 | |||||||
-1 | Derivative assets and liabilities include foreign exchange contracts which are measured using observable quoted prices for similar assets and liabilities. | ||||||||||
-2 | Other assets include asset-backed securities which are measured using observable quoted prices for similar assets. | ||||||||||
Note_16_Accumulated_Other_Comp
Note 16 - Accumulated Other Comprehensive Income | 9 Months Ended | ||||||||||||||
Sep. 30, 2013 | |||||||||||||||
Disclosure Text Block [Abstract] | |||||||||||||||
Comprehensive Income (Loss) Note [Text Block] | 16. Accumulated Other Comprehensive Income | ||||||||||||||
A summary of changes in the components of accumulated other comprehensive income (loss), including our proportionate share of equity method investee’s accumulated other comprehensive income (loss), is as follows (in millions): | |||||||||||||||
Changes in Accumulated Other Comprehensive (Loss) Income by Component (1) | |||||||||||||||
for the three months ended September 30, 2013 | |||||||||||||||
Foreign | Unamortized | Net | Net | Accumulated | |||||||||||
currency | actuarial | unrealized | unrealized | other | |||||||||||
translation | losses and | gains | gains | comprehensive | |||||||||||
adjustment | prior service | (losses) on | (losses) on | income (loss) | |||||||||||
and other | costs | investments | designated | ||||||||||||
hedges | |||||||||||||||
Balance at June 30, 2013 | $ | 373 | $ | -790 | $ | -14 | $ | 43 | $ | -388 | |||||
Other comprehensive income before reclassifications (2) | 76 | 1 | 77 | ||||||||||||
Amounts reclassified from accumulated other comprehensive income (3) | 1 | -17 | -16 | ||||||||||||
Equity method affiliates (4) | 241 | 12 | -1 | 252 | |||||||||||
Net current-period other comprehensive income (loss) | 317 | 14 | -1 | -17 | 313 | ||||||||||
Balance at September 30, 2013 | $ | 690 | $ | -776 | $ | -15 | $ | 26 | $ | -75 | |||||
-1 | All amounts are after tax. Amounts in parentheses indicate debits to accumulated other comprehensive income. | ||||||||||||||
-2 | Amounts are net of total tax benefit of $2 million, including $1 million related to the hedges component and $1 million related to the investments component. | ||||||||||||||
-3 | Amounts are net of total tax benefit of $7 million, including $9 million related to the hedges component and $(2) million related to the retirement plans component. | ||||||||||||||
-4 | Tax effects related to equity method affiliates are not significant. | ||||||||||||||
Changes in Accumulated Other Comprehensive (Loss) Income by Component (1) | |||||||||||||||
for the nine months ended September 30, 2013 | |||||||||||||||
Foreign | Unamortized | Net | Net | Accumulated | |||||||||||
currency | actuarial | unrealized | unrealized | other | |||||||||||
translation | losses and | gains | gains | comprehensive | |||||||||||
adjustment | prior service | (losses) on | (losses) on | income (loss) | |||||||||||
and other | costs | investments | designated | ||||||||||||
hedges | |||||||||||||||
Balance at December 31, 2012 | $ | 1,174 | $ | -820 | $ | -16 | $ | 18 | $ | 356 | |||||
Other comprehensive income before reclassifications (2) | -477 | 15 | 56 | -406 | |||||||||||
Amounts reclassified from accumulated other comprehensive income (3) | 6 | -49 | -43 | ||||||||||||
Equity method affiliates (4) | -7 | 23 | 1 | 1 | 18 | ||||||||||
Net current-period other comprehensive (loss) income | -484 | 44 | 1 | 8 | -431 | ||||||||||
Balance at September 30, 2013 | $ | 690 | $ | -776 | $ | -15 | $ | 26 | $ | -75 | |||||
-1 | All amounts are after tax. Amounts in parentheses indicate debits to accumulated other comprehensive income. | ||||||||||||||
-2 | Amounts are net of total tax expense of $(40) million, including $(32) million related to the hedges component and $(8) million related to the retirement plans component. | ||||||||||||||
-3 | Amounts are net of total tax benefit of $23 million, including $27 million related to the hedges component and $(4) million related to the retirement plans component. | ||||||||||||||
-4 | Tax effects related to equity method affiliates are not significant. | ||||||||||||||
Changes in Accumulated Other Comprehensive (Loss) Income by Component (1) | |||||||||||||||
for the three months ended September 30, 2012 | |||||||||||||||
Foreign | Unamortized | Net | Net | Accumulated | |||||||||||
currency | actuarial | unrealized | unrealized | other | |||||||||||
translation | losses and | gains | gains | comprehensive | |||||||||||
adjustment | prior service | (losses) on | (losses) on | income (loss) | |||||||||||
and other | costs | investments | designated | ||||||||||||
hedges | |||||||||||||||
Balance at June 30, 2012 | $ | 1,268 | $ | -809 | $ | -24 | $ | -7 | $ | 428 | |||||
Other comprehensive income before reclassifications (2) | 106 | 4 | -2 | 108 | |||||||||||
Amounts reclassified from accumulated other comprehensive income (3) | 3 | -2 | 1 | ||||||||||||
Equity method affiliates (4) | 111 | 8 | 2 | 1 | 122 | ||||||||||
Net current-period other comprehensive income (loss) | 217 | 11 | 6 | -3 | 231 | ||||||||||
Balance at September 30, 2012 | $ | 1,485 | $ | -798 | $ | -18 | $ | -10 | $ | 659 | |||||
-1 | All amounts are after tax. Amounts in parentheses indicate debits to accumulated other comprehensive income. | ||||||||||||||
-2 | Amounts are net of total tax expense of $(2) million, including $1 million related to the hedges component and $(3) million related to the investments component. | ||||||||||||||
-3 | Amounts include tax benefit of $2 million related to the hedges component and tax expense of $(2) million related to the retirement plans component. | ||||||||||||||
-4 | Tax effects related to equity method affiliates are not significant. | ||||||||||||||
Changes in Accumulated Other Comprehensive (Loss) Income by Component (1) | |||||||||||||||
for the nine months ended September 30, 2012 | |||||||||||||||
Foreign | Unamortized | Net | Net | Accumulated | |||||||||||
currency | actuarial | unrealized | unrealized | other | |||||||||||
translation | losses and | gains | gains | comprehensive | |||||||||||
adjustment | prior service | (losses) on | (losses) on | income (loss) | |||||||||||
and other | costs | investments | designated | ||||||||||||
hedges | |||||||||||||||
Balance at December 31, 2011 | $ | 1,353 | $ | -819 | $ | -29 | $ | -29 | $ | 476 | |||||
Other comprehensive income before reclassifications (2) | -37 | 1 | 10 | 28 | 2 | ||||||||||
Amounts reclassified from accumulated other comprehensive income (3) | 7 | -7 | -10 | -10 | |||||||||||
Equity method affiliates (4) | 169 | 13 | 8 | 1 | 191 | ||||||||||
Net current-period other comprehensive income | 132 | 21 | 11 | 19 | 183 | ||||||||||
Balance at September 30, 2012 | $ | 1,485 | $ | -798 | $ | -18 | $ | -10 | $ | 659 | |||||
-1 | All amounts are after tax. Amounts in parentheses indicate debits to accumulated other comprehensive income. | ||||||||||||||
-2 | Amounts are net of total tax expense of $(22) million, including $(16) million related to the hedges component and $(6) million related to the investments component. | ||||||||||||||
-3 | Amounts are net of total tax benefit of $4 million, including $6 million related to the hedges component, $3 million related to the investments component and $(5) million related to the retirement plans component. | ||||||||||||||
-4 | Tax effects related to equity method affiliates are not significant. | ||||||||||||||
Reclassifications Out of Accumulated Other Comprehensive Income (AOCI) by Component (1) | |||||||||||||||
Details about AOCI Components | Amount reclassified from AOCI | Affected line item | |||||||||||||
Three months ended | Nine months ended | in the consolidated | |||||||||||||
September 30, | September 30, | statements of income | |||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Amortization of net actuarial loss | $ | -3 | $ | -5 | $ | -11 | $ | -12 | -2 | ||||||
Amortization of prior service cost | 1 | -2 | |||||||||||||
-3 | -5 | -10 | -12 | Total before tax | |||||||||||
2 | 2 | 4 | 5 | Tax benefit | |||||||||||
$ | -1 | $ | -3 | $ | -6 | $ | -7 | Net of tax | |||||||
Realized gains on investments | $ | 10 | Other income, net | ||||||||||||
-3 | Tax expense | ||||||||||||||
7 | Net of tax | ||||||||||||||
Realized gains on designated hedges | $ | 1 | $ | 1 | Sales | ||||||||||
$ | 9 | 3 | $ | 28 | 9 | Cost of sales | |||||||||
17 | 48 | 6 | Royalties | ||||||||||||
26 | 4 | 76 | 16 | Total before tax | |||||||||||
-9 | -2 | -27 | -6 | Tax expense | |||||||||||
17 | 2 | 49 | 10 | Net of tax | |||||||||||
Total reclassifications for the period | $ | 16 | $ | -1 | $ | 43 | $ | 10 | Net of tax | ||||||
-1 | Amounts in parentheses indicate debits to the statement of income. | ||||||||||||||
-2 | These accumulated other comprehensive income components are included in net periodic pension cost. See Note 13 – Employee Retirement Plans for additional details. | ||||||||||||||
Note_17_Sharebased_Compensatio
Note 17 - Share-based Compensation | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | 17. Share-based Compensation | |||||||||||||||
Stock Compensation Plans | ||||||||||||||||
The Company measures and recognizes compensation cost for all share-based payment awards made to employees and directors based on estimated fair values. Fair values for stock options were estimated using a multiple-point Black-Scholes valuation model. Share-based compensation cost was approximately $15 million and $16 million for the three months ended September 30, 2013 and 2012, respectively, and approximately $40 million and $56 million for the nine months ended September 30, 2013 and 2012, respectively. Amounts for all periods presented included compensation expense for employee stock options and time-based restricted stock and restricted stock units. Performance-based restricted stock and restricted stock units fully vested in the first quarter of 2012. Compensation expense for performance-based restricted stock and restricted stock units is included in periods ended prior to April 1, 2012. | ||||||||||||||||
Stock Options | ||||||||||||||||
Our Stock Option Plans provide non-qualified and incentive stock options to purchase authorized but unissued shares, or treasury shares, at the market price on the grant date and generally become exercisable in installments from one to five years from the grant date. The maximum term of non-qualified and incentive stock options is 10 years from the grant date. | ||||||||||||||||
The following table summarizes information concerning stock options outstanding including the related transactions under the Stock Option Plans for the nine months ended September 30, 2013: | ||||||||||||||||
Number | Weighted- | Weighted- | Aggregate | |||||||||||||
of Shares | Average | Average | Intrinsic | |||||||||||||
(in thousands) | Exercise | Remaining | Value | |||||||||||||
Price | Contractual | (in thousands) | ||||||||||||||
Term in | ||||||||||||||||
Years | ||||||||||||||||
Options Outstanding as of December 31, 2012 | 64,061 | $16.63 | ||||||||||||||
Granted | 4,430 | 14.34 | ||||||||||||||
Exercised | -6,688 | 7.99 | ||||||||||||||
Forfeited and Expired | -1,666 | 13.23 | ||||||||||||||
Options Outstanding as of September 30, 2013 | 60,137 | 17.52 | 4.99 | $81,887 | ||||||||||||
Options Expected to Vest as of September 30, 2013 | 59,951 | 17.53 | 4.99 | 81,617 | ||||||||||||
Options Exercisable as of September 30, 2013 | 46,445 | 18.41 | 3.94 | 64,678 | ||||||||||||
The aggregate intrinsic value (market value of stock less option exercise price) in the preceding table represents the total pretax intrinsic value, based on the Company’s closing stock price on September 30, 2013, which would have been received by the option holders had all option holders exercised their “in-the-money” options as of that date. | ||||||||||||||||
As of September 30, 2013, there was approximately $26 million of unrecognized compensation cost related to stock options granted under the Plans. The cost is expected to be recognized over a weighted-average period of 1.4 years. Compensation cost related to stock options was approximately $7 million and $9 million for the three months ended September 30, 2013 and 2012, respectively, and approximately $18 million and $30 million for the nine months ended September 30, 2013 and 2012, respectively. | ||||||||||||||||
Proceeds received from the exercise of stock options were $54 million and $26 million for the nine months ended September 30, 2013 and 2012, respectively. Proceeds received from the exercise of stock options were included in financing activities on the Company’s Consolidated Statements of Cash Flows. The total intrinsic value of options exercised for the nine months ended September 30, 2013 and 2012 was approximately $38 million and $31 million, respectively, which is currently deductible for tax purposes. However, these tax benefits were not fully recognized due to net operating loss carryforwards available to the Company. Refer to Note 5 (Income Taxes) to the consolidated financial statements. | ||||||||||||||||
The following inputs were used for the valuation of option grants under our Stock Option Plans: | ||||||||||||||||
Three months ended | Nine months ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Expected volatility | 46.6 | - | 47.00% | 47.8 | - | 48.10% | 46.6 | - | 47.40% | 47.8 | - | 48.90% | ||||
Weighted-average volatility | 46.7 | - | 46.70% | 48.1 | - | 48.10% | 46.7 | - | 47.30% | 48.1 | - | 48.50% | ||||
Expected dividends | 2.68 | - | 2.68% | 2.59 | - | 2.59% | 2.68 | - | 3.02% | 2.28 | - | 2.59% | ||||
Risk-free rate | 1.8 | - | 2.20% | 1 | - | 1.30% | 0.8 | - | 2.20% | 0.9 | - | 1.30% | ||||
Average risk-free rate | 2.2 | - | 2.20% | 1.2 | - | 1.20% | 1.1 | - | 2.20% | 1.2 | - | 1.30% | ||||
Expected term (in years) | 5.8 | - | 7.2 | 5.7 | - | 7.1 | 5.8 | - | 7.1 | 5.7 | - | 7.1 | ||||
Pre-vesting departure rate | 0.4 | - | 4.10% | 0.4 | - | 4.20% | 0.4 | - | 4.10% | 0.4 | - | 4.20% | ||||
Expected volatility is based on a blended approach defined as the weighted average of the short-term implied volatility, the most recent volatility for the period equal to the expected term, and the most recent 15-year historical volatility. The expected term assumption is the period of time the options are expected to be outstanding, and is calculated using a combination of historical exercise experience adjusted to reflect the current vesting period of options being valued, and partial life cycles of outstanding options. The risk-free rate assumption is the implied rate for a zero-coupon U.S. Treasury bond with a term equal to the option’s expected term. The ranges in the table above reflect results from separate groups of employees exhibiting different exercise behavior. | ||||||||||||||||
Incentive Stock Plans | ||||||||||||||||
The Corning Incentive Stock Plan permits restricted stock and restricted stock unit grants, either determined by specific performance goals or issued directly, in most instances, subject to the possibility of forfeiture and without cash consideration. Restricted stock and restricted stock units under the Incentive Stock Plan are granted at the closing market price on the grant date, contingently vest over a period of generally one to ten years, and generally have contractual lives of one to ten years. The fair value of each restricted stock grant or restricted stock unit awarded under the Incentive Stock Plans was estimated on the date of grant. | ||||||||||||||||
Time-Based Restricted Stock and Restricted Stock Units: | ||||||||||||||||
Time-based restricted stock and restricted stock units are issued by the Company on a discretionary basis, and are payable in shares of the Company’s common stock upon vesting. The fair value is based on the closing market price of the Company’s stock on the grant date. Compensation cost is recognized over the requisite vesting period and adjusted for actual forfeitures before vesting. | ||||||||||||||||
The following table represents a summary of the status of the Company’s non-vested time-based restricted stock and restricted stock units as of December 31, 2012, and changes which occurred during the nine months ended September 30, 2013: | ||||||||||||||||
Shares | Weighted | |||||||||||||||
(000’s) | Average | |||||||||||||||
Grant-Date | ||||||||||||||||
Fair Value | ||||||||||||||||
Non-vested shares and share units at December 31, 2012 | 5,363 | $ | 15.97 | |||||||||||||
Granted | 2,580 | 13.45 | ||||||||||||||
Vested | -1,693 | 17.57 | ||||||||||||||
Forfeited | -96 | 15.45 | ||||||||||||||
Non-vested shares and share units at September 30, 2013 | 6,154 | $ | 14.48 | |||||||||||||
As of September 30, 2013, there was approximately $31 million of unrecognized compensation cost related to non-vested time-based restricted stock and restricted stock units compensation arrangements granted under the Plan. The cost is expected to be recognized over a weighted-average period of 1.8 years. Compensation cost related to time-based restricted stock and restricted stock units was approximately $8 million and $7 million for the three months ended September 30, 2013 and 2012, respectively, and approximately $22 million and $24 million for the nine months ended September 30, 2013 and 2012, respectively. | ||||||||||||||||
Performance-Based Restricted Stock and Restricted Stock Units: | ||||||||||||||||
The performance-based restricted stock and restricted stock unit compensation program was terminated in 2010. All performance-based restricted stock and restricted stock units were fully vested in the first quarter of 2012. | ||||||||||||||||
Performance-based restricted stock and restricted stock units were earned upon the achievement of certain targets, and were payable in shares of the Company’s common stock upon vesting, typically over a three-year period. The fair value was based on the closing market price of the Company’s stock on the grant date and assumed that the target payout level would be achieved. Compensation cost was recognized over the requisite vesting period and adjusted for actual forfeitures before vesting. During the performance period, compensation cost was adjusted based on changes in the expected outcome of the performance-related target. | ||||||||||||||||
As of September 30, 2013, there is no unrecognized compensation cost related to non-vested performance-based restricted stock and restricted stock units compensation arrangements granted under the Plan. Compensation cost related to performance-based restricted stock and restricted stock units was approximately $2 million for the nine months ended September 30, 2012. | ||||||||||||||||
Note_18_Significant_Customers
Note 18 - Significant Customers | 9 Months Ended |
Sep. 30, 2013 | |
Significant Customers [Abstract] | |
Significant Customers [Text Block] | 18. Significant Customers |
For the three months ended September 30, 2013, Corning had one customer that individually accounted for 10% or more of the Company’s consolidated net sales. For the three months ended September 30, 2012, Corning did not have a customer that individually accounted for 10% or more of the Company’s consolidated net sales. For the nine months ended September 30, 2013 and 2012, Corning did not have a customer that individually accounted for 10% or more of the Company’s consolidated net sales. | |
Note_19_Reportable_Segments
Note 19 - Reportable Segments | 9 Months Ended | ||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||
Segment Reporting Disclosure [Text Block] | 19. Reportable Segments | ||||||||||||||||||||
Our reportable segments are as follows: | |||||||||||||||||||||
· | Display Technologies – manufactures liquid crystal display (LCD) glass for flat panel displays. | ||||||||||||||||||||
· | Telecommunications – manufactures optical fiber and cable, and hardware and equipment components for the telecommunications industry. | ||||||||||||||||||||
· | Environmental Technologies – manufactures ceramic substrates and filters for automotive and diesel applications. This reportable segment is an aggregation of our Automotive and Diesel operating segments, as these two segments share similar economic characteristics, products, customer types, production processes and distribution methods. | ||||||||||||||||||||
· | Specialty Materials – manufactures products that provide more than 150 material formulations for glass, glass ceramics and fluoride crystals to meet demand for unique customer needs. | ||||||||||||||||||||
· | Life Sciences – manufactures glass and plastic labware, equipment, media and reagents to provide workflow solutions for scientific applications. | ||||||||||||||||||||
All other reportable segments that do not meet the quantitative threshold for separate reporting are grouped as “All Other.” This group is primarily comprised of development projects and results for new product lines. | |||||||||||||||||||||
We prepared the financial results for our reportable segments on a basis that is consistent with the manner in which we internally disaggregate financial information to assist in making internal operating decisions. We included the earnings of equity affiliates that are closely associated with our reportable segments in the respective segment’s net income. We have allocated certain common expenses among segments differently than we would for stand-alone financial information prepared in accordance with U.S. GAAP. Segment net income may not be consistent with measures used by other companies. The accounting policies of our reportable segments are the same as those applied in the consolidated financial statements. | |||||||||||||||||||||
Reportable Segments (in millions) | |||||||||||||||||||||
Display | Telecom- | Environmental | Specialty | Life | All | Total | |||||||||||||||
Technologies | munications | Technologies | Materials | Sciences | Other | ||||||||||||||||
Three months ended | |||||||||||||||||||||
September 30, 2013 | |||||||||||||||||||||
Net sales | $ | 648 | $ | 650 | $ | 225 | $ | 326 | $ | 215 | $ | 3 | $ | 2,067 | |||||||
Depreciation (1) | $ | 121 | $ | 38 | $ | 30 | $ | 30 | $ | 14 | $ | 4 | $ | 237 | |||||||
Amortization of purchased intangibles | $ | 3 | $ | 5 | $ | 8 | |||||||||||||||
Research, development and engineering expenses (2) | $ | 23 | $ | 37 | $ | 23 | $ | 33 | $ | 5 | $ | 33 | $ | 154 | |||||||
Equity in earnings of affiliated companies | $ | 73 | $ | 1 | $ | 4 | $ | 78 | |||||||||||||
Income tax (provision) benefit | $ | -86 | $ | -32 | $ | -16 | $ | -32 | $ | -10 | $ | 16 | $ | -160 | |||||||
Net income (loss) (3) | $ | 318 | $ | 62 | $ | 32 | $ | 65 | $ | 20 | $ | -32 | $ | 465 | |||||||
Display | Telecom- | Environmental | Specialty | Life | All | Total | |||||||||||||||
Technologies | munications | Technologies | Materials | Sciences | Other | ||||||||||||||||
Three months ended | |||||||||||||||||||||
September 30, 2012 | |||||||||||||||||||||
Net sales | $ | 763 | $ | 523 | $ | 233 | $ | 363 | $ | 155 | $ | 1 | $ | 2,038 | |||||||
Depreciation (1) | $ | 123 | $ | 34 | $ | 30 | $ | 40 | $ | 11 | $ | 5 | $ | 243 | |||||||
Amortization of purchased intangibles | $ | 2 | $ | 2 | $ | 4 | |||||||||||||||
Research, development and engineering expenses (2)(4) | $ | 24 | $ | 35 | $ | 23 | $ | 27 | $ | 5 | $ | 35 | $ | 149 | |||||||
Equity in earnings of affiliated companies | $ | 187 | $ | 1 | $ | 1 | $ | 189 | |||||||||||||
Income tax (provision) benefit (4) | $ | -83 | $ | -17 | $ | -13 | $ | -29 | $ | -4 | $ | 15 | $ | -131 | |||||||
Net income (loss) (3)(4) | $ | 441 | $ | 35 | $ | 27 | $ | 59 | $ | 9 | $ | -30 | $ | 541 | |||||||
Display | Telecom- | Environmental | Specialty | Life | All | Total | |||||||||||||||
Technologies | munications | Technologies | Materials | Sciences | Other | ||||||||||||||||
Nine months ended | |||||||||||||||||||||
September 30, 2013 | |||||||||||||||||||||
Net sales | $ | 1,929 | $ | 1,721 | $ | 681 | $ | 885 | $ | 641 | $ | 6 | $ | 5,863 | |||||||
Depreciation (1) | $ | 362 | $ | 110 | $ | 91 | $ | 104 | $ | 42 | $ | 13 | $ | 722 | |||||||
Amortization of purchased intangibles | $ | 7 | $ | 16 | $ | 23 | |||||||||||||||
Research, development and engineering expenses (2) | $ | 60 | $ | 103 | $ | 68 | $ | 108 | $ | 15 | $ | 104 | $ | 458 | |||||||
Equity in earnings of affiliated companies | $ | 314 | $ | 2 | $ | 1 | $ | 4 | $ | 13 | $ | 334 | |||||||||
Income tax (provision) benefit | $ | -250 | $ | -87 | $ | -47 | $ | -79 | $ | -28 | $ | 46 | $ | -445 | |||||||
Net income (loss) (3) | $ | 1,004 | $ | 173 | $ | 95 | $ | 162 | $ | 57 | $ | -91 | $ | 1,400 | |||||||
Display | Telecom- | Environmental | Specialty | Life | All | Total | |||||||||||||||
Technologies | munications | Technologies | Materials | Sciences | Other | ||||||||||||||||
Nine months ended | |||||||||||||||||||||
September 30, 2012 | |||||||||||||||||||||
Net sales | $ | 2,109 | $ | 1,590 | $ | 745 | $ | 947 | $ | 472 | $ | 3 | $ | 5,866 | |||||||
Depreciation (1) | $ | 377 | $ | 98 | $ | 87 | $ | 110 | $ | 31 | $ | 11 | $ | 714 | |||||||
Amortization of purchased intangibles | $ | 7 | $ | 6 | $ | 13 | |||||||||||||||
Research, development and engineering expenses (2)(4) | $ | 77 | $ | 105 | $ | 75 | $ | 101 | $ | 16 | $ | 91 | $ | 465 | |||||||
Equity in earnings of affiliated companies | $ | 553 | $ | -1 | $ | 1 | $ | 14 | $ | 567 | |||||||||||
Income tax (provision) benefit (4) | $ | -257 | $ | -46 | $ | -50 | $ | -57 | $ | -15 | $ | 38 | $ | -387 | |||||||
Net income (loss) (3)(4) | $ | 1,235 | $ | 93 | $ | 102 | $ | 115 | $ | 32 | $ | -66 | $ | 1,511 | |||||||
-1 | Depreciation expense for Corning’s reportable segments includes an allocation of depreciation of corporate property not specifically identifiable to a segment. | ||||||||||||||||||||
-2 | Research, development, and engineering expenses include direct project spending that is identifiable to a segment. | ||||||||||||||||||||
-3 | Many of Corning’s administrative and staff functions are performed on a centralized basis. Where practicable, Corning charges these expenses to segments based upon the extent to which each business uses a centralized function. Other staff functions, such as corporate finance, human resources and legal, are allocated to segments, primarily as a percentage of sales. | ||||||||||||||||||||
-4 | As revised for the change in our method of recognizing pension expense. See Note 1 of Notes to Consolidated Financial Statements for a discussion of the change and the impacts of the change for the three and nine months ended September 30, 2012. | ||||||||||||||||||||
A reconciliation of reportable segment net income to consolidated net income follows (in millions): | |||||||||||||||||||||
Three months ended | Nine months ended | ||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||
Net income of reportable segments (4) | $ | 497 | $ | 571 | $ | 1,491 | $ | 1,577 | |||||||||||||
Non-reportable segments | -32 | -30 | -91 | -66 | |||||||||||||||||
Unallocated amounts: | |||||||||||||||||||||
Net financing costs (1) | -3 | -55 | -65 | -139 | |||||||||||||||||
Stock-based compensation expense | -15 | -16 | -40 | -56 | |||||||||||||||||
Exploratory research | -29 | -27 | -80 | -74 | |||||||||||||||||
Corporate contributions | -7 | -13 | -32 | -36 | |||||||||||||||||
Equity in earnings of affiliated companies, net of impairments (2) | 59 | 52 | 142 | 151 | |||||||||||||||||
Asbestos settlement (3) | -5 | -3 | -13 | -9 | |||||||||||||||||
Purchased collars and average rate forward contracts (6) | -46 | 206 | |||||||||||||||||||
Other corporate items (4)(5) | -11 | 54 | 22 | 133 | |||||||||||||||||
Net income (4) | $ | 408 | $ | 533 | $ | 1,540 | $ | 1,481 | |||||||||||||
-1 | Net financing costs include interest income, interest expense, and interest costs and investment gains associated with benefit plans. | ||||||||||||||||||||
-2 | Primarily represents the equity earnings of Dow Corning Corporation, which includes gains in the three and nine months ended September 30, 2013 in the amounts of approximately $30 million for the resolution of contract disputes against customers relating to enforcement of long-term supply agreements and $16 million for the positive impact of the settlement of a derivative, along with a charge of $4 million related to the impact of a tax valuation allowance. Also included in the nine months ended September 30, 2013 are restructuring charges in the amount of $11 million. In the three and nine months ended September 30, 2012, Corning recorded a $10 million credit for our share of Dow Corning Corporation’s settlement of a dispute related to long-term supply agreements. | ||||||||||||||||||||
-3 | In the three and nine months ended September 30, 2013, Corning recorded a charge of $5 million and $13 million, respectively, to adjust the asbestos liability for the change in value of components of the Amended PCC Plan. In the three and nine month ended September 30, 2012, Corning recorded a charge of $3 million and $9 million, respectively, to adjust the asbestos liability for the change in value of components of the Amended PCC Plan. | ||||||||||||||||||||
-4 | As revised for the change in our method of recognizing pension expense. See Note 1 of Notes to Consolidated Financial Statements for a discussion of the change and the impacts of the change for the three and nine months ended September 30, 2012. | ||||||||||||||||||||
-5 | For the nine months ended September 30, 2013, Corning recorded a $54 million tax benefit for the impact of the American Taxpayer Relief Act enacted on January 3, 2013 and made retroactive to 2012. | ||||||||||||||||||||
-6 | For the three and nine months ended September 30, 2013, Corning recorded a net loss of $46 million and a net gain of $206 million, respectively, related to its purchased collars and average rate forward contracts. | ||||||||||||||||||||
In the Specialty Materials operating segment, assets decreased from $1.7 billion at December 31, 2012 to $1.4 billion at September 30, 2013. The decrease is due primarily to the decrease in accounts receivables from lower sales in the third quarter of 2013, when compared to the fourth quarter of 2012 and the impact of translating fixed assets held in foreign locations. In the Telecommunications segment, assets increased from $1.4 billion at December 31, 2012, to $1.7 billion at September 30, 2013. The increase is due primarily to an increase in inventory driven by our fiber-to-the-home initiative in Australia, and the impacts of the consolidation of an equity company due to change in control and a small acquisition completed in the third quarter of 2013. | |||||||||||||||||||||
The sales of each of our reportable segments are concentrated across a relatively small number of customers. In the third quarter of 2013, the following number of customers, which individually accounted for 10% or more of each segment’s sales, represented the following concentration of segment sales: | |||||||||||||||||||||
· | In the Display Technologies segment, four customers accounted for 97% of total segment sales. | ||||||||||||||||||||
· | In the Telecommunications segment, no customers accounted for 10% of total segment sales. | ||||||||||||||||||||
· | In the Environmental Technologies segment, three customers accounted for 87% of total segment sales. | ||||||||||||||||||||
· | In the Specialty Materials segment, three customers accounted for 55% of total segment sales. | ||||||||||||||||||||
· | In the Life Sciences segment, two customers accounted for 48% of total segment sales. | ||||||||||||||||||||
In the first nine months of 2013, the following number of customers, which individually accounted for 10% or more of each segment’s sales, represented the following concentration of segment sales: | |||||||||||||||||||||
· | In the Display Technologies segment, four customers accounted for 94% of total segment sales. | ||||||||||||||||||||
· | In the Telecommunications segment, one customer accounted for 10% of total segment sales. | ||||||||||||||||||||
· | In the Environmental Technologies segment, three customers accounted for 87% of total segment sales. | ||||||||||||||||||||
· | In the Specialty Materials segment, three customers accounted for 46% of total segment sales. | ||||||||||||||||||||
· | In the Life Sciences segment, two customers accounted for 44% of total segment sales. | ||||||||||||||||||||
A significant amount of specialized manufacturing capacity for our Display Technologies segment is concentrated in Asia. It is at least reasonably possible that the operation of a facility could be disrupted. Due to the specialized nature of the assets, it would not be possible to find replacement capacity quickly. Accordingly, loss of these facilities could produce a near-term severe impact on our display business and the Company as a whole. | |||||||||||||||||||||
Note_20_Subsequent_Events
Note 20 - Subsequent Events | 9 Months Ended | |
Sep. 30, 2013 | ||
Subsequent Events [Abstract] | ||
Subsequent Events [Text Block] | 20. Subsequent Events | |
On October 22, 2013, Corning announced that it is entering into a series of strategic and financial agreements with Samsung Display Co., Ltd. (Samsung Display), intended to strengthen product and technology collaborations between the two companies. The series of transactions, subject to closing conditions being met, will result in: | ||
· | Corning obtaining full ownership of Samsung Corning Precision Materials Co., Ltd. (SCP), an unconsolidated equity venture with Samsung Display that manufactures LCD glass in South Korea. Samsung Display currently owns 43% of SCP. | |
· | After redemption of their interest in SCP, Samsung Display’s investment in new convertible preferred shares of Corning with an aggregate face amount of $1.9 billion. | |
· | Corning’s acquisition of the other shareholders’ minority interests in SCP for an expected proportional cash payment. | |
· | Samsung Display’s additional $400 million investment in Corning by subscribing to new convertible preferred shares. | |
· | Using Corning’s current share count, Samsung Display’s combined investment in Corning would result in approximately 7.4% ownership on an as-converted basis. | |
· | A new long-term LCD display glass supply agreement between Corning and Samsung Display through 2023. | |
In addition, Corning’s board of directors has authorized an additional $2 billion of share repurchases through December 31, 2015, dependent upon the transaction closing. | ||
These agreements will allow Corning to extend its leadership in specialty glass and drive earnings growth. Corning expects the transactions to close in the first quarter of 2014. | ||
Accounting_Policies_by_Policy_
Accounting Policies, by Policy (Policies) | 9 Months Ended |
Sep. 30, 2013 | |
Accounting Policies [Abstract] | |
Consolidation, Policy [Policy Text Block] | Basis of Presentation |
In these notes, the terms “Corning,” “Company,” “we,” “us,” or “our” mean Corning Incorporated and subsidiary companies. | |
The accompanying unaudited consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (SEC) and in accordance with U.S. GAAP for interim financial information. Certain information and note disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been omitted or condensed. These interim consolidated financial statements should be read in conjunction with Corning’s consolidated financial statements and notes thereto included in its Annual Report on Form 10-K for the year ended December 31, 2012 (2012 Form 10-K). | |
The unaudited consolidated financial statements reflect all adjustments which, in the opinion of management, are necessary for a fair statement of the results of operations, financial position and cash flows for the interim periods presented. All such adjustments are of a normal recurring nature. The results for interim periods are not necessarily indicative of results which may be expected for any other interim period or for the full year. | |
Postemployment Benefit Plans, Policy [Policy Text Block] | Employee Retirement Plans |
In the first quarter of 2013, we elected to change our method of recognizing actuarial gains and losses for our defined benefit pension plans. Previously, we recognized the actuarial gains and losses as a component of Stockholders’ Equity on our consolidated balance sheets on an annual basis. These amounts were amortized into our operating results over the average remaining service period of employees expected to receive benefits under the plan, to the extent such gains and losses were outside of the corridor, where the corridor is equal to 10% of the greater of the benefit obligation or the market-related value of plan assets at the beginning of the year. In addition, we used a calculated market-related value of plan assets for purposes of calculating the expected return on plan assets that spread asset gains and losses over a 3-year period. We have elected to recognize the change in the fair value of plan assets in full and net actuarial gains and losses outside of the corridor annually in the fourth quarter of each year and whenever the plan is remeasured or valuation estimates are finalized. The remaining components of pension expense will be recorded on a quarterly basis. While the historical policy of recognizing pension expense was considered acceptable, we believe that the new policy is preferable as it recognizes the change in the fair value of plan assets in full and eliminates the delay in recognition of net actuarial gains and losses outside of the corridor. We have applied these changes retrospectively, adjusting all prior periods, as if the new accounting methodology was in effect during those periods. | |
Other Income and Other Expense Disclosure [Text Block] | “Other (expense) income, net” in Corning’s consolidated statements of income includes the following (in millions): |
New Accounting Pronouncements, Policy [Policy Text Block] | New Accounting Standards |
In July 2013, the FASB issued Accounting Standards Update No. 2013-11 Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss or a Tax Credit Carryforward Exists. With certain exceptions, ASU 2013-11 requires entities to present an unrecognized tax benefit, or portion of an unrecognized tax benefit, as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss or a tax credit carryforward. The guidance is effective for interim and annual periods beginning after December 15, 2013 on either a prospective or retrospective basis with early adoption permitted. Corning does not expect adoption of this guidance to have a material impact on its consolidated results of operations and financial condition. | |
In July 2013, the FASB issued Accounting Standards Update No. 2013-10 Derivatives and Hedging (Topic 815): Inclusion of the Fed Funds Effective Swap Rate (or Overnight Index Swap Rate) as a Benchmark Interest Rate. ASU 2013-10 permits the use of the Fed Funds Effective Swap Rate as a benchmark interest rate for hedge accounting in addition to interest rates on direct Treasury obligation of the United States government and the LIBOR. In addition, the guidance removes the restriction on using different benchmark rates for similar hedges. The guidance became effective on a prospective basis for qualifying new or redesignated hedging relationships entered into on or after July 17, 2013. We are evaluating the potential impact of this guidance on our future hedge transactions. | |
In March 2013, the FASB issued Accounting Standards Update No. 2013-05 Foreign Currency Matters (Topic 830): Parent’s Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity. ASU 2013-05 clarifies when to release the cumulative translation adjustment into net income for transactions involving the disposition of some or all of an investment or a business combination achieved in stages (step acquisitions). The amendments are effective prospectively for interim and annual periods beginning on or after December 15, 2013. Corning does not expect adoption of this guidance to have a material impact on its consolidated results of operations and financial condition. | |
In February 2013, the FASB issued Accounting Standards Update No. 2013-04 Liabilities (Topic 405): Obligations Resulting from Joint and Several Liability Arrangements for Which the Total Amount of the Obligation Is Fixed at the Reporting Date. ASU 2013-04 requires an entity to measure such obligations as the sum of the amount that the reporting entity agreed to pay on the basis of its arrangement with co-obligors and any additional amount the reporting entity expects to pay on behalf of its co-obligors. The guidance is effective for interim and annual periods beginning after December 15, 2013. Retrospective presentation for all comparative period presented is required with early adoption permitted. Corning does not expect adoption of this guidance to have a material impact on its consolidated results of operations and financial condition. |
Note_1_Significant_Accounting_1
Note 1 - Significant Accounting Policies (Tables) | 9 Months Ended | |||||||||||
Sep. 30, 2013 | ||||||||||||
Disclosure Text Block [Abstract] | ||||||||||||
Schedule of New Accounting Pronouncements and Changes in Accounting Principles [Table Text Block] | Three months ended September 30, 2013 | |||||||||||
Previous | Reported | Effect of | ||||||||||
accounting | accounting | |||||||||||
method | change | |||||||||||
Cost of sales | $ | 1,179 | $ | 1,166 | $ | -13 | ||||||
Gross margin | 888 | 901 | 13 | |||||||||
Selling, general and administrative expenses | 272 | 265 | -7 | |||||||||
Research, development and engineering expenses | 188 | 184 | -4 | |||||||||
Operating income | 415 | 439 | 24 | |||||||||
Income before income taxes | 525 | 549 | 24 | |||||||||
Provision for income taxes | -132 | -141 | -9 | |||||||||
Net income attributable to Corning Incorporated | $ | 393 | $ | 408 | $ | 15 | ||||||
Earnings per common share attributable to Corning Incorporated – Basic | $ | 0.27 | $ | 0.28 | $ | 0.01 | ||||||
Earnings per common share attributable to Corning Incorporated – Diluted | $ | 0.27 | $ | 0.28 | $ | 0.01 | ||||||
Three months ended September 30, 2012 | ||||||||||||
Previously | Revised | Effect of | ||||||||||
reported | (after | accounting | ||||||||||
(before | accounting | change | ||||||||||
accounting | change) | |||||||||||
change) | ||||||||||||
Cost of sales | $ | 1,159 | $ | 1,149 | $ | -10 | ||||||
Gross margin | 879 | 889 | 10 | |||||||||
Selling, general and administrative expenses | 295 | 289 | -6 | |||||||||
Research, development and engineering expenses | 185 | 182 | -3 | |||||||||
Operating income | 392 | 411 | 19 | |||||||||
Income before income taxes | 608 | 627 | 19 | |||||||||
Provision for income taxes | -87 | -94 | -7 | |||||||||
Net income attributable to Corning Incorporated | $ | 521 | $ | 533 | $ | 12 | ||||||
Earnings per common share attributable to Corning Incorporated – Basic | $ | 0.35 | $ | 0.36 | $ | 0.01 | ||||||
Earnings per common share attributable to Corning Incorporated – Diluted | $ | 0.35 | $ | 0.36 | $ | 0.01 | ||||||
Nine months ended September 30, 2013 | ||||||||||||
Previous | Reported | Effect of | ||||||||||
accounting | accounting | |||||||||||
method | change | |||||||||||
Cost of sales | $ | 3,349 | $ | 3,309 | $ | -40 | ||||||
Gross margin | 2,514 | 2,554 | 40 | |||||||||
Selling, general and administrative expenses | 810 | 790 | -20 | |||||||||
Research, development and engineering expenses | 553 | 541 | -12 | |||||||||
Operating income | 1,115 | 1,187 | 72 | |||||||||
Income before income taxes | 1,834 | 1,906 | 72 | |||||||||
Provision for income taxes | -340 | -366 | -26 | |||||||||
Net income attributable to Corning Incorporated | $ | 1,494 | $ | 1,540 | $ | 46 | ||||||
Earnings per common share attributable to Corning Incorporated – Basic | $ | 1.02 | $ | 1.05 | $ | 0.03 | ||||||
Earnings per common share attributable to Corning Incorporated – Diluted | $ | 1.01 | $ | 1.04 | $ | 0.03 | ||||||
Nine months ended September 30, 2012 | ||||||||||||
Previously | Revised | Effect of | ||||||||||
reported | (after | accounting | ||||||||||
(before | accounting | change | ||||||||||
accounting | change) | |||||||||||
change) | ||||||||||||
Cost of sales | $ | 3,376 | $ | 3,345 | $ | -31 | ||||||
Gross margin | 2,490 | 2,521 | 31 | |||||||||
Selling, general and administrative expenses | 865 | 848 | -17 | |||||||||
Research, development and engineering expenses | 560 | 551 | -9 | |||||||||
Operating income | 1,043 | 1,100 | 57 | |||||||||
Income before income taxes | 1,736 | 1,793 | 57 | |||||||||
Provision for income taxes | -291 | -312 | -21 | |||||||||
Net income attributable to Corning Incorporated | $ | 1,445 | $ | 1,481 | $ | 36 | ||||||
Earnings per common share attributable to Corning Incorporated – Basic | $ | 0.96 | $ | 0.99 | $ | 0.03 | ||||||
Earnings per common share attributable to Corning Incorporated – Diluted | $ | 0.95 | $ | 0.98 | $ | 0.03 | ||||||
Three months ended September 30, 2013 | ||||||||||||
Previous | Reported | Effect of | ||||||||||
accounting | accounting | |||||||||||
method | change | |||||||||||
Net income attributable to Corning Incorporated | $ | 393 | $ | 408 | $ | 15 | ||||||
Other comprehensive income, net of tax | 326 | 313 | -13 | |||||||||
Comprehensive income attributable to Corning Incorporated | $ | 719 | $ | 721 | $ | 2 | ||||||
Three months ended September 30, 2012 | ||||||||||||
Previously | Revised | Effect of | ||||||||||
reported | (after | accounting | ||||||||||
(before | accounting | change | ||||||||||
accounting | change) | |||||||||||
change) | ||||||||||||
Net income attributable to Corning Incorporated | $ | 521 | $ | 533 | $ | 12 | ||||||
Other comprehensive income, net of tax | 241 | 231 | -10 | |||||||||
Comprehensive income attributable to Corning Incorporated | $ | 762 | $ | 764 | $ | 2 | ||||||
Nine months ended September 30, 2013 | ||||||||||||
Previous | Reported | Effect of | ||||||||||
accounting | accounting | |||||||||||
method | change | |||||||||||
Net income attributable to Corning Incorporated | $ | 1,494 | $ | 1,540 | $ | 46 | ||||||
Other comprehensive loss, net of tax | -390 | -431 | -41 | |||||||||
Comprehensive income attributable to Corning Incorporated | $ | 1,104 | $ | 1,109 | $ | 5 | ||||||
Nine months ended September 30, 2012 | ||||||||||||
Previously | Revised | Effect of | ||||||||||
reported | (after | accounting | ||||||||||
(before | accounting | change | ||||||||||
accounting | change) | |||||||||||
change) | ||||||||||||
Net income attributable to Corning Incorporated | $ | 1,445 | $ | 1,481 | $ | 36 | ||||||
Other comprehensive income, net of tax | 194 | 183 | -11 | |||||||||
Comprehensive income attributable to Corning Incorporated | $ | 1,639 | $ | 1,664 | $ | 25 | ||||||
September 30, 2013 | ||||||||||||
Previous | Reported | Effect of | ||||||||||
accounting | accounting | |||||||||||
method | change | |||||||||||
Retained earnings | $ | 11,632 | $ | 11,017 | $ | -615 | ||||||
Accumulated other comprehensive loss | $ | -690 | $ | -75 | $ | 615 | ||||||
December 31, 2012 | ||||||||||||
Previously | Revised | Effect of | ||||||||||
reported | (after | accounting | ||||||||||
(before | accounting | change | ||||||||||
accounting | change) | |||||||||||
change) | ||||||||||||
Retained earnings | $ | 10,588 | $ | 9,932 | $ | -656 | ||||||
Accumulated other comprehensive (loss) income | $ | -300 | $ | 356 | $ | 656 | ||||||
Nine months ended September 30, 2013 | ||||||||||||
Previous | Reported | Effect of | ||||||||||
accounting | accounting | |||||||||||
method | change | |||||||||||
Cash flows from operating activities: | ||||||||||||
Net income | $ | 1,494 | $ | 1,540 | $ | 46 | ||||||
Deferred tax provision | $ | 115 | $ | 141 | $ | 26 | ||||||
Employee benefit payments less than expense | $ | 106 | $ | 34 | $ | -72 | ||||||
Nine months ended September 30, 2012 | ||||||||||||
Previously | Revised | Effect of | ||||||||||
reported | (after | accounting | ||||||||||
(before | accounting | change | ||||||||||
accounting | change) | |||||||||||
change) | ||||||||||||
Cash flows from operating activities: | ||||||||||||
Net income | $ | 1,445 | $ | 1,481 | $ | 36 | ||||||
Deferred tax provision | $ | 44 | $ | 65 | $ | 21 | ||||||
Employee benefit payments in excess of expense | $ | -57 | $ | -57 | ||||||||
Schedule of Other Nonoperating Income, by Component [Table Text Block] | Three months ended | Nine months ended | ||||||||||
September 30, | September 30, | |||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||
Royalty income from Samsung Corning Precision | $ | 14 | $ | 20 | $ | 43 | $ | 63 | ||||
Foreign currency exchange and hedge (losses) gains, net | -33 | -1 | 248 | 4 | ||||||||
Net loss attributable to noncontrolling interests | 1 | 1 | 4 | |||||||||
Other, net | 18 | -15 | 37 | -29 | ||||||||
Total | $ | -1 | $ | 5 | $ | 329 | $ | 42 |
Note_2_Restructuring_Impairmen1
Note 2 - Restructuring, Impairment and Other Charges (Credits) (Tables) | 9 Months Ended | |||||||||||
Sep. 30, 2013 | ||||||||||||
Restructuring and Related Activities [Abstract] | ||||||||||||
Schedule of Restructuring Reserve by Type of Cost [Table Text Block] | Reserve at | Net | Cash | Reserve at | ||||||||
January 1, | charges/ | payments | September 30, | |||||||||
2013 | (reversals) | 2013 | ||||||||||
Restructuring: | ||||||||||||
Employee-related costs | $ | 38 | $ | -1 | $ | -27 | $ | 10 | ||||
Other charges | 4 | -3 | 1 | |||||||||
Total restructuring activity | $ | 42 | $ | -1 | $ | -30 | $ | 11 |
Note_5_Income_Taxes_Tables
Note 5 - Income Taxes (Tables) | 9 Months Ended | |||||||||||
Sep. 30, 2013 | ||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||
Schedule of Income Tax Provisions and Rates [Table Text Block] | Three months ended | Nine months ended | ||||||||||
September 30, | September 30, | |||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||
Provision for income taxes (1) | $ | -141 | $ | -94 | $ | -366 | $ | -312 | ||||
Effective tax rate (1) | 25.70% | 15.00% | 19.20% | 17.40% |
Note_6_Earnings_per_Common_Sha1
Note 6 - Earnings per Common Share (Tables) | 9 Months Ended | |||||||||||
Sep. 30, 2013 | ||||||||||||
Earnings Per Share [Abstract] | ||||||||||||
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Three months ended September 30, | |||||||||||
2013 | 2012 | |||||||||||
Net | Weighted- | Per | Net | Weighted- | Per | |||||||
income | average | share | income | average | share | |||||||
attributable | shares | amount | attributable | shares | amount | |||||||
to Corning | to Corning | |||||||||||
Incorporated | Incorporated | |||||||||||
Basic earnings per common share | $408 | 1,454 | $0.28 | $533 | 1,483 | $0.36 | ||||||
Effect of dilutive securities: | ||||||||||||
Stock options and other dilutive securities | 9 | 11 | ||||||||||
Diluted earnings per common share | $408 | 1,463 | $0.28 | $533 | 1,494 | $0.36 | ||||||
Nine months ended September 30, | ||||||||||||
2013 | 2012 | |||||||||||
Net | Weighted- | Per | Net | Weighted- | Per | |||||||
income | average | share | income | average | share | |||||||
attributable | shares | amount | attributable | shares | amount | |||||||
to Corning | to Corning | |||||||||||
Incorporated | Incorporated | |||||||||||
Basic earnings per common share | $1,540 | 1,465 | $1.05 | $1,481 | 1,502 | $0.99 | ||||||
Effect of dilutive securities: | ||||||||||||
Stock options and other dilutive securities | 9 | 12 | ||||||||||
Diluted earnings per common share | $1,540 | 1,474 | $1.04 | $1,481 | 1,514 | $0.98 | ||||||
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block] | Three months ended | Nine months ended | ||||||||||
September 30, | September 30, | |||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||
Stock options and other dilutive securities excluded from the calculation of diluted earnings per common share | 36 | 44 | 40 | 43 |
Note_7_AvailableforSale_Invest1
Note 7 - Available-for-Sale Investments (Tables) | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Available For Sale Investments [Abstract] | ||||||||||||||
Schedule of Available-for-sale Securities Reconciliation [Table Text Block] | Amortized cost | Fair value | ||||||||||||
September 30, | December 31, | September 30, | December 31, | |||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
Bonds, notes and other securities: | ||||||||||||||
U.S. government and agencies | $ | 884 | $ | 1,153 | $ | 886 | $ | 1,156 | ||||||
Total short-term investments | $ | 884 | $ | 1,153 | $ | 886 | $ | 1,156 | ||||||
Asset-backed securities | $ | 47 | $ | 51 | $ | 39 | $ | 40 | ||||||
Total long-term investments | $ | 47 | $ | 51 | $ | 39 | $ | 40 | ||||||
Investments Classified by Contractual Maturity Date [Table Text Block] | Less than one year | $634 | ||||||||||||
Due in 1-5 years | 252 | |||||||||||||
Due in 5-10 years | ||||||||||||||
Due after 10 years (1) | 39 | |||||||||||||
Total | $925 | |||||||||||||
Schedule of Fair Value and Gross Unrealized Losses of Investments by Category and Length of Time in Continuous Unrealized Loss Position [Table Text Block] | September 30, 2013 | |||||||||||||
12 months or greater | Total | |||||||||||||
Number of | Fair | Unrealized | Fair | Unrealized | ||||||||||
securities | value | losses | value | losses (1) | ||||||||||
in a loss | ||||||||||||||
position | ||||||||||||||
Asset-backed securities | 20 | $ | 38 | $ | -8 | $ | 38 | $ | -8 | |||||
Total long-term investments | 20 | $ | 38 | $ | -8 | $ | 38 | $ | -8 | |||||
December 31, 2012 | ||||||||||||||
12 months or greater | Total | |||||||||||||
Number of | Fair | Unrealized | Fair | Unrealized | ||||||||||
securities | value | losses (1) | value | losses | ||||||||||
in a loss | ||||||||||||||
position | ||||||||||||||
Asset-backed securities | 22 | $ | 40 | $ | -11 | $ | 40 | $ | -11 | |||||
Total long-term investments | 22 | $ | 40 | $ | -11 | $ | 40 | $ | -11 |
Note_8_Inventories_Tables
Note 8 - Inventories (Tables) | 9 Months Ended | |||||
Sep. 30, 2013 | ||||||
Inventory Disclosure [Abstract] | ||||||
Schedule of Inventory, Current [Table Text Block] | September 30, | December 31, | ||||
2013 | 2012 | |||||
Finished goods | $ | 487 | $ | 392 | ||
Work in process | 225 | 168 | ||||
Raw materials and accessories | 329 | 271 | ||||
Supplies and packing materials | 234 | 220 | ||||
Total inventories | $ | 1,275 | $ | 1,051 |
Note_9_Investments_Tables
Note 9 - Investments (Tables) | 9 Months Ended | |||||||||||
Sep. 30, 2013 | ||||||||||||
Note 9 - Investments (Tables) [Line Items] | ||||||||||||
Equity Method Investments [Table Text Block] | Ownership | September 30, | December 31, | |||||||||
interest (1) | 2013 | 2012 | ||||||||||
Affiliated companies accounted for by the equity method | ||||||||||||
Samsung Corning Precision Materials Co., Ltd. | 50% | $ | 3,506 | $ | 3,346 | |||||||
Dow Corning Corporation | 50% | 1,260 | 1,191 | |||||||||
All other | 20% | to | 50% | 376 | 375 | |||||||
5,142 | 4,912 | |||||||||||
Other investments | 18 | 3 | ||||||||||
Total | $ | 5,160 | $ | 4,915 | ||||||||
Schedule of Related Party Information for Investments in Affiliates [Table Text Block] | Three months ended | Nine months ended | ||||||||||
September 30, | September 30, | |||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||
Related Party Transactions: | ||||||||||||
Corning sales to affiliated companies | $ | 3 | $ | 10 | $ | 9 | $ | 38 | ||||
Corning purchases from affiliated companies | $ | 33 | $ | 49 | $ | 170 | $ | 117 | ||||
Corning transfers of assets, at cost, to affiliated companies | $ | 12 | $ | 11 | $ | 25 | $ | 36 | ||||
Dividends received from affiliated companies | $ | 39 | $ | 56 | $ | 221 | $ | 577 | ||||
Royalty income from affiliated companies | $ | 15 | $ | 20 | $ | 45 | $ | 64 | ||||
Corning services to affiliates | $ | 6 | $ | 2 | $ | 22 | ||||||
Samsung Corning Precision Materials Co., Ltd. [Member] | ||||||||||||
Note 9 - Investments (Tables) [Line Items] | ||||||||||||
Schedule of Affiliate Result of Operations [Table Text Block] | Three months ended | Nine months ended | ||||||||||
September 30, | September 30, | |||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||
Statement of Operations: | ||||||||||||
Net sales | $ | 541 | $ | 783 | $ | 1,790 | $ | 2,352 | ||||
Gross profit | $ | 286 | $ | 534 | $ | 1,034 | $ | 1,598 | ||||
Net income attributable to Samsung Corning Precision | $ | 154 | $ | 367 | $ | 650 | $ | 1,140 | ||||
Corning’s equity in earnings of Samsung Corning Precision | $ | 74 | $ | 186 | $ | 319 | $ | 562 | ||||
Related Party Transactions: | ||||||||||||
Corning purchases from Samsung Corning Precision | $ | 27 | $ | 31 | $ | 150 | $ | 83 | ||||
Dividends received from Samsung Corning Precision | $ | 518 | ||||||||||
Royalty income from Samsung Corning Precision | $ | 14 | $ | 20 | $ | 43 | $ | 63 | ||||
Corning transfers of machinery and equipment to Samsung Corning Precision at cost (1) | $ | 12 | $ | 13 | $ | 25 | $ | 53 | ||||
Dow Corning Corporation [Member] | ||||||||||||
Note 9 - Investments (Tables) [Line Items] | ||||||||||||
Schedule of Affiliate Result of Operations [Table Text Block] | Three months ended | Nine months ended | ||||||||||
September 30, | September 30, | |||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||
Statement of Operations: | ||||||||||||
Net sales | $ | 1,427 | $ | 1,545 | $ | 4,120 | $ | 4,638 | ||||
Gross profit (1) | $ | 265 | $ | 382 | $ | 868 | $ | 1,114 | ||||
Net income attributable to Dow Corning | $ | 117 | $ | 97 | $ | 267 | $ | 288 | ||||
Corning’s equity in earnings of Dow Corning | $ | 57 | $ | 48 | $ | 137 | $ | 144 | ||||
Related Party Transactions: | ||||||||||||
Corning purchases from Dow Corning | $ | 5 | $ | 6 | $ | 16 | $ | 18 | ||||
Dividends received from Dow Corning | $ | 31 | $ | 50 | $ | 69 | $ | 50 |
Note_10_Acquisition_Tables
Note 10 - Acquisition (Tables) | 9 Months Ended | ||
Sep. 30, 2013 | |||
Business Combinations [Abstract] | |||
Schedule of Business Acquisitions, by Acquisition [Table Text Block] | Inventory and other current assets | $ | 74 |
Fixed Assets | 81 | ||
Other intangible assets | 279 | ||
Net tangible and intangible assets | $ | 434 | |
Purchase price | 739 | ||
Goodwill (1) | $ | 305 |
Note_11_Property_Net_of_Accumu1
Note 11 - Property, Net of Accumulated Depreciation (Tables) | 9 Months Ended | |||||
Sep. 30, 2013 | ||||||
Property, Plant and Equipment [Abstract] | ||||||
Property, Plant and Equipment [Table Text Block] | September 30, | December 31, | ||||
2013 | 2012 | |||||
Land | $ | 115 | $ | 112 | ||
Buildings | 4,218 | 4,324 | ||||
Equipment | 12,402 | 12,571 | ||||
Construction in progress | 1,139 | 1,270 | ||||
17,874 | 18,277 | |||||
Accumulated depreciation | -7,897 | -7,652 | ||||
Total | $ | 9,977 | $ | 10,625 |
Note_12_Goodwill_and_Other_Int1
Note 12 - Goodwill and Other Intangible Assets (Tables) | 9 Months Ended | |||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||
Schedule of Goodwill [Table Text Block] | Telecom- | Display | Specialty | Life | Total | |||||||||||||
munications | Technologies | Materials | Sciences | |||||||||||||||
Balance at December 31, 2012 | $ | 209 | $ | 9 | $ | 150 | $ | 606 | $ | 974 | ||||||||
Acquired goodwill (1) | 32 | 32 | ||||||||||||||||
Measurement period adjustment (2) | -4 | -4 | ||||||||||||||||
Foreign currency translation adjustment | -1 | -1 | ||||||||||||||||
Balance at September 30, 2013 | $ | 240 | $ | 9 | $ | 150 | $ | 602 | $ | 1,001 | ||||||||
Intangible Assets Disclosure [Text Block] | September 30, 2013 | December 31, 2012 | ||||||||||||||||
Gross | Accumulated | Net | Gross | Accumulated | Net | |||||||||||||
amortization | amortization | |||||||||||||||||
Amortized intangible assets: | ||||||||||||||||||
Patents, trademarks, and trade names | $ | 290 | $ | -135 | $ | 155 | $ | 282 | $ | -128 | $ | 154 | ||||||
Customer lists and other | 437 | -42 | 395 | 394 | -26 | 368 | ||||||||||||
Total | $ | 727 | $ | -177 | $ | 550 | $ | 676 | $ | -154 | $ | 522 |
Note_13_Employee_Retirement_Pl1
Note 13 - Employee Retirement Plans (Tables) | 9 Months Ended | |||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ||||||||||||||||||||||||
Net Periodic Benefit Expense for Employee Retirement Plans [Table Text Block] | Pension benefits | Postretirement benefits | ||||||||||||||||||||||
Three months ended | Nine months ended | Three months ended | Nine months ended | |||||||||||||||||||||
September 30, | September 30, | September 30, | September 30, | |||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||
Service cost | $ | 16 | $ | 16 | $ | 53 | $ | 46 | $ | 3 | $ | 3 | $ | 10 | $ | 9 | ||||||||
Interest cost | 33 | 38 | 99 | 114 | 10 | 11 | 29 | 33 | ||||||||||||||||
Expected return on plan assets (1) | -42 | -41 | -126 | -123 | ||||||||||||||||||||
Amortization of net loss (1) | 3 | 4 | 11 | 12 | ||||||||||||||||||||
Amortization of prior service cost | 1 | 1 | 3 | 3 | -1 | -1 | -4 | -3 | ||||||||||||||||
Recognition of actuarial gain | -41 | |||||||||||||||||||||||
Total pension and postretirement benefit expense (1) | $ | 8 | $ | 14 | $ | -12 | $ | 40 | $ | 15 | $ | 17 | $ | 46 | $ | 51 |
Note_14_Hedging_Activities_Tab
Note 14 - Hedging Activities (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Note 14 - Hedging Activities (Tables) [Line Items] | ||||||||||||||||
Schedule of Notional Amounts of Outstanding Derivative Positions [Table Text Block] | U.S. Dollar | Asset derivatives | Liability derivatives | |||||||||||||
Gross notional amount | Balance | Fair value | Balance | Fair value | ||||||||||||
Sept. 30, | Dec. 31, | sheet location | Sept. 30, | Dec. 31, | sheet location | Sept. 30, | Dec. 31, | |||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | |||||||||||
Derivatives designated as hedging instruments | ||||||||||||||||
Foreign exchange contracts | $ 308 | $ 719 | Other current assets | $ 28 | $ 57 | Other accrued liabilities | $ (2) | $ (3) | ||||||||
Interest rate contracts | $ 1,300 | $ 550 | Other assets | $ 40 | Other liabilities | ($22) | ||||||||||
Derivatives not designated as hedging instruments | ||||||||||||||||
Foreign exchange contracts | $ 591 | $1,939 | Other current assets | $ 8 | $109 | Other accrued liabilities | $ (8) | ($10) | ||||||||
Translated earnings contracts | $ 8,174 | Other current assets | $172 | Other accrued liabilities | ($13) | |||||||||||
Other assets | $ 95 | Other liabilities | $ (9) | |||||||||||||
Total derivatives | $10,373 | $3,208 | $343 | $166 | ($54) | ($13) | ||||||||||
Designated as Hedging Instrument [Member] | ||||||||||||||||
Note 14 - Hedging Activities (Tables) [Line Items] | ||||||||||||||||
Schedule of Derivative Instruments, Effect on Other Comprehensive Income (Loss) [Table Text Block] | Effect of derivative instruments on the consolidated financial statements | |||||||||||||||
for the three months ended September 30 (2) | ||||||||||||||||
Derivatives in hedging relationships | Gain/(loss) | Location of gain | Gain reclassified from | |||||||||||||
recognized in other | reclassified from | accumulated OCI into | ||||||||||||||
comprehensive income | accumulated OCI into | income (effective) (1) | ||||||||||||||
(OCI) | income (effective) | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
- | Sales | $1 | ||||||||||||||
Interest rate contracts | $3 | Cost of sales | $ 9 | 3 | ||||||||||||
Foreign exchange contracts | (3) | ($3) | Royalties | 17 | ||||||||||||
Total cash flow hedges | $0 | ($3) | $26 | $4 | ||||||||||||
Effect of derivative instruments on the consolidated financial statements | ||||||||||||||||
for the nine months ended September 30 (2) | ||||||||||||||||
Derivatives in hedging relationships | Gain recognized in other | Location of gain | Gain reclassified from | |||||||||||||
comprehensive income | reclassified from | accumulated OCI into | ||||||||||||||
(OCI) | accumulated OCI into | income (effective) (1) | ||||||||||||||
2013 | 2012 | income (effective) | 2013 | 2012 | ||||||||||||
- | Sales | $ 1 | ||||||||||||||
Interest rate contracts | $40 | $15 | Cost of sales | $28 | 9 | |||||||||||
Foreign exchange contracts | 48 | 29 | Royalties | 48 | 6 | |||||||||||
Total cash flow hedges | $88 | $44 | $76 | $16 | ||||||||||||
Not Designated as Hedging Instrument [Member] | ||||||||||||||||
Note 14 - Hedging Activities (Tables) [Line Items] | ||||||||||||||||
Schedule of Derivative Instruments, Effect on Other Comprehensive Income (Loss) [Table Text Block] | Undesignated derivatives | Location of gain/(loss) | Gain/(loss) recognized in income | |||||||||||||
recognized in income | Three months ended | Nine months ended | ||||||||||||||
September 30, | September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Foreign exchange contracts | Other income, net | $ 14 | ($61) | $219 | $73 | |||||||||||
Translated earnings contracts | Other income, net | (46) | 205 | |||||||||||||
Total undesignated | ($32) | ($61) | $424 | $73 |
Note_15_Fair_Value_Measurement1
Note 15 - Fair Value Measurements (Tables) | 9 Months Ended | ||||||||||
Sep. 30, 2013 | |||||||||||
Fair Value Disclosures [Abstract] | |||||||||||
Fair Value, Measurement Inputs, Disclosure [Text Block] | Fair value measurements at reporting date using | ||||||||||
September 30, | Quoted prices in | Significant other | Significant | ||||||||
2013 | active markets for | observable | unobservable | ||||||||
identical assets | inputs | inputs | |||||||||
(Level 1) | (Level 2) | (Level 3) | |||||||||
Current assets: | |||||||||||
Short-term investments | $ | 886 | $ | 886 | |||||||
Other current assets (1) | $ | 208 | $ | 208 | |||||||
Non-current assets: | |||||||||||
Other assets (1)(2) | $ | 174 | $ | 174 | |||||||
Current liabilities: | |||||||||||
Other accrued liabilities (1) | $ | 23 | $ | 23 | |||||||
Non-current liabilities: | |||||||||||
Other liabilities (1) | $ | 31 | $ | 31 | |||||||
Fair value measurements at reporting date using | |||||||||||
December 31, | Quoted prices in | Significant other | Significant | ||||||||
2012 | active markets for | observable | unobservable | ||||||||
identical assets | inputs | inputs | |||||||||
(Level 1) | (Level 2) | (Level 3) | |||||||||
Current assets: | |||||||||||
Short-term investments | $ | 1,156 | $ | 1,156 | |||||||
Other current assets (1) | $ | 166 | $ | 166 | |||||||
Non-current assets: | |||||||||||
Other assets (2) | $ | 40 | $ | 40 | |||||||
Current liabilities: | |||||||||||
Other accrued liabilities (1) | $ | 13 | $ | 13 |
Note_16_Accumulated_Other_Comp1
Note 16 - Accumulated Other Comprehensive Income (Tables) | 9 Months Ended | ||||||||||||||
Sep. 30, 2013 | |||||||||||||||
Disclosure Text Block [Abstract] | |||||||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | Changes in Accumulated Other Comprehensive (Loss) Income by Component (1) | ||||||||||||||
for the three months ended September 30, 2013 | |||||||||||||||
Foreign | Unamortized | Net | Net | Accumulated | |||||||||||
currency | actuarial | unrealized | unrealized | other | |||||||||||
translation | losses and | gains | gains | comprehensive | |||||||||||
adjustment | prior service | (losses) on | (losses) on | income (loss) | |||||||||||
and other | costs | investments | designated | ||||||||||||
hedges | |||||||||||||||
Balance at June 30, 2013 | $ | 373 | $ | -790 | $ | -14 | $ | 43 | $ | -388 | |||||
Other comprehensive income before reclassifications (2) | 76 | 1 | 77 | ||||||||||||
Amounts reclassified from accumulated other comprehensive income (3) | 1 | -17 | -16 | ||||||||||||
Equity method affiliates (4) | 241 | 12 | -1 | 252 | |||||||||||
Net current-period other comprehensive income (loss) | 317 | 14 | -1 | -17 | 313 | ||||||||||
Balance at September 30, 2013 | $ | 690 | $ | -776 | $ | -15 | $ | 26 | $ | -75 | |||||
Changes in Accumulated Other Comprehensive (Loss) Income by Component (1) | |||||||||||||||
for the nine months ended September 30, 2013 | |||||||||||||||
Foreign | Unamortized | Net | Net | Accumulated | |||||||||||
currency | actuarial | unrealized | unrealized | other | |||||||||||
translation | losses and | gains | gains | comprehensive | |||||||||||
adjustment | prior service | (losses) on | (losses) on | income (loss) | |||||||||||
and other | costs | investments | designated | ||||||||||||
hedges | |||||||||||||||
Balance at December 31, 2012 | $ | 1,174 | $ | -820 | $ | -16 | $ | 18 | $ | 356 | |||||
Other comprehensive income before reclassifications (2) | -477 | 15 | 56 | -406 | |||||||||||
Amounts reclassified from accumulated other comprehensive income (3) | 6 | -49 | -43 | ||||||||||||
Equity method affiliates (4) | -7 | 23 | 1 | 1 | 18 | ||||||||||
Net current-period other comprehensive (loss) income | -484 | 44 | 1 | 8 | -431 | ||||||||||
Balance at September 30, 2013 | $ | 690 | $ | -776 | $ | -15 | $ | 26 | $ | -75 | |||||
Changes in Accumulated Other Comprehensive (Loss) Income by Component (1) | |||||||||||||||
for the three months ended September 30, 2012 | |||||||||||||||
Foreign | Unamortized | Net | Net | Accumulated | |||||||||||
currency | actuarial | unrealized | unrealized | other | |||||||||||
translation | losses and | gains | gains | comprehensive | |||||||||||
adjustment | prior service | (losses) on | (losses) on | income (loss) | |||||||||||
and other | costs | investments | designated | ||||||||||||
hedges | |||||||||||||||
Balance at June 30, 2012 | $ | 1,268 | $ | -809 | $ | -24 | $ | -7 | $ | 428 | |||||
Other comprehensive income before reclassifications (2) | 106 | 4 | -2 | 108 | |||||||||||
Amounts reclassified from accumulated other comprehensive income (3) | 3 | -2 | 1 | ||||||||||||
Equity method affiliates (4) | 111 | 8 | 2 | 1 | 122 | ||||||||||
Net current-period other comprehensive income (loss) | 217 | 11 | 6 | -3 | 231 | ||||||||||
Balance at September 30, 2012 | $ | 1,485 | $ | -798 | $ | -18 | $ | -10 | $ | 659 | |||||
Changes in Accumulated Other Comprehensive (Loss) Income by Component (1) | |||||||||||||||
for the nine months ended September 30, 2012 | |||||||||||||||
Foreign | Unamortized | Net | Net | Accumulated | |||||||||||
currency | actuarial | unrealized | unrealized | other | |||||||||||
translation | losses and | gains | gains | comprehensive | |||||||||||
adjustment | prior service | (losses) on | (losses) on | income (loss) | |||||||||||
and other | costs | investments | designated | ||||||||||||
hedges | |||||||||||||||
Balance at December 31, 2011 | $ | 1,353 | $ | -819 | $ | -29 | $ | -29 | $ | 476 | |||||
Other comprehensive income before reclassifications (2) | -37 | 1 | 10 | 28 | 2 | ||||||||||
Amounts reclassified from accumulated other comprehensive income (3) | 7 | -7 | -10 | -10 | |||||||||||
Equity method affiliates (4) | 169 | 13 | 8 | 1 | 191 | ||||||||||
Net current-period other comprehensive income | 132 | 21 | 11 | 19 | 183 | ||||||||||
Balance at September 30, 2012 | $ | 1,485 | $ | -798 | $ | -18 | $ | -10 | $ | 659 | |||||
Reclassification out of Accumulated Other Comprehensive Income [Table Text Block] | Reclassifications Out of Accumulated Other Comprehensive Income (AOCI) by Component (1) | ||||||||||||||
Details about AOCI Components | Amount reclassified from AOCI | Affected line item | |||||||||||||
Three months ended | Nine months ended | in the consolidated | |||||||||||||
September 30, | September 30, | statements of income | |||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Amortization of net actuarial loss | $ | -3 | $ | -5 | $ | -11 | $ | -12 | -2 | ||||||
Amortization of prior service cost | 1 | -2 | |||||||||||||
-3 | -5 | -10 | -12 | Total before tax | |||||||||||
2 | 2 | 4 | 5 | Tax benefit | |||||||||||
$ | -1 | $ | -3 | $ | -6 | $ | -7 | Net of tax | |||||||
Realized gains on investments | $ | 10 | Other income, net | ||||||||||||
-3 | Tax expense | ||||||||||||||
7 | Net of tax | ||||||||||||||
Realized gains on designated hedges | $ | 1 | $ | 1 | Sales | ||||||||||
$ | 9 | 3 | $ | 28 | 9 | Cost of sales | |||||||||
17 | 48 | 6 | Royalties | ||||||||||||
26 | 4 | 76 | 16 | Total before tax | |||||||||||
-9 | -2 | -27 | -6 | Tax expense | |||||||||||
17 | 2 | 49 | 10 | Net of tax | |||||||||||
Total reclassifications for the period | $ | 16 | $ | -1 | $ | 43 | $ | 10 | Net of tax |
Note_17_Sharebased_Compensatio1
Note 17 - Share-based Compensation (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||||||
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | Number | Weighted- | Weighted- | Aggregate | ||||||||||||
of Shares | Average | Average | Intrinsic | |||||||||||||
(in thousands) | Exercise | Remaining | Value | |||||||||||||
Price | Contractual | (in thousands) | ||||||||||||||
Term in | ||||||||||||||||
Years | ||||||||||||||||
Options Outstanding as of December 31, 2012 | 64,061 | $16.63 | ||||||||||||||
Granted | 4,430 | 14.34 | ||||||||||||||
Exercised | -6,688 | 7.99 | ||||||||||||||
Forfeited and Expired | -1,666 | 13.23 | ||||||||||||||
Options Outstanding as of September 30, 2013 | 60,137 | 17.52 | 4.99 | $81,887 | ||||||||||||
Options Expected to Vest as of September 30, 2013 | 59,951 | 17.53 | 4.99 | 81,617 | ||||||||||||
Options Exercisable as of September 30, 2013 | 46,445 | 18.41 | 3.94 | 64,678 | ||||||||||||
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | Three months ended | Nine months ended | ||||||||||||||
September 30, | September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Expected volatility | 46.6 | - | 47.00% | 47.8 | - | 48.10% | 46.6 | - | 47.40% | 47.8 | - | 48.90% | ||||
Weighted-average volatility | 46.7 | - | 46.70% | 48.1 | - | 48.10% | 46.7 | - | 47.30% | 48.1 | - | 48.50% | ||||
Expected dividends | 2.68 | - | 2.68% | 2.59 | - | 2.59% | 2.68 | - | 3.02% | 2.28 | - | 2.59% | ||||
Risk-free rate | 1.8 | - | 2.20% | 1 | - | 1.30% | 0.8 | - | 2.20% | 0.9 | - | 1.30% | ||||
Average risk-free rate | 2.2 | - | 2.20% | 1.2 | - | 1.20% | 1.1 | - | 2.20% | 1.2 | - | 1.30% | ||||
Expected term (in years) | 5.8 | - | 7.2 | 5.7 | - | 7.1 | 5.8 | - | 7.1 | 5.7 | - | 7.1 | ||||
Pre-vesting departure rate | 0.4 | - | 4.10% | 0.4 | - | 4.20% | 0.4 | - | 4.10% | 0.4 | - | 4.20% | ||||
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity [Table Text Block] | Shares | Weighted | ||||||||||||||
(000’s) | Average | |||||||||||||||
Grant-Date | ||||||||||||||||
Fair Value | ||||||||||||||||
Non-vested shares and share units at December 31, 2012 | 5,363 | $ | 15.97 | |||||||||||||
Granted | 2,580 | 13.45 | ||||||||||||||
Vested | -1,693 | 17.57 | ||||||||||||||
Forfeited | -96 | 15.45 | ||||||||||||||
Non-vested shares and share units at September 30, 2013 | 6,154 | $ | 14.48 |
Note_19_Reportable_Segments_Ta
Note 19 - Reportable Segments (Tables) | 9 Months Ended | ||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Display | Telecom- | Environmental | Specialty | Life | All | Total | ||||||||||||||
Technologies | munications | Technologies | Materials | Sciences | Other | ||||||||||||||||
Three months ended | |||||||||||||||||||||
September 30, 2013 | |||||||||||||||||||||
Net sales | $ | 648 | $ | 650 | $ | 225 | $ | 326 | $ | 215 | $ | 3 | $ | 2,067 | |||||||
Depreciation (1) | $ | 121 | $ | 38 | $ | 30 | $ | 30 | $ | 14 | $ | 4 | $ | 237 | |||||||
Amortization of purchased intangibles | $ | 3 | $ | 5 | $ | 8 | |||||||||||||||
Research, development and engineering expenses (2) | $ | 23 | $ | 37 | $ | 23 | $ | 33 | $ | 5 | $ | 33 | $ | 154 | |||||||
Equity in earnings of affiliated companies | $ | 73 | $ | 1 | $ | 4 | $ | 78 | |||||||||||||
Income tax (provision) benefit | $ | -86 | $ | -32 | $ | -16 | $ | -32 | $ | -10 | $ | 16 | $ | -160 | |||||||
Net income (loss) (3) | $ | 318 | $ | 62 | $ | 32 | $ | 65 | $ | 20 | $ | -32 | $ | 465 | |||||||
Display | Telecom- | Environmental | Specialty | Life | All | Total | |||||||||||||||
Technologies | munications | Technologies | Materials | Sciences | Other | ||||||||||||||||
Three months ended | |||||||||||||||||||||
September 30, 2012 | |||||||||||||||||||||
Net sales | $ | 763 | $ | 523 | $ | 233 | $ | 363 | $ | 155 | $ | 1 | $ | 2,038 | |||||||
Depreciation (1) | $ | 123 | $ | 34 | $ | 30 | $ | 40 | $ | 11 | $ | 5 | $ | 243 | |||||||
Amortization of purchased intangibles | $ | 2 | $ | 2 | $ | 4 | |||||||||||||||
Research, development and engineering expenses (2)(4) | $ | 24 | $ | 35 | $ | 23 | $ | 27 | $ | 5 | $ | 35 | $ | 149 | |||||||
Equity in earnings of affiliated companies | $ | 187 | $ | 1 | $ | 1 | $ | 189 | |||||||||||||
Income tax (provision) benefit (4) | $ | -83 | $ | -17 | $ | -13 | $ | -29 | $ | -4 | $ | 15 | $ | -131 | |||||||
Net income (loss) (3)(4) | $ | 441 | $ | 35 | $ | 27 | $ | 59 | $ | 9 | $ | -30 | $ | 541 | |||||||
Display | Telecom- | Environmental | Specialty | Life | All | Total | |||||||||||||||
Technologies | munications | Technologies | Materials | Sciences | Other | ||||||||||||||||
Nine months ended | |||||||||||||||||||||
September 30, 2013 | |||||||||||||||||||||
Net sales | $ | 1,929 | $ | 1,721 | $ | 681 | $ | 885 | $ | 641 | $ | 6 | $ | 5,863 | |||||||
Depreciation (1) | $ | 362 | $ | 110 | $ | 91 | $ | 104 | $ | 42 | $ | 13 | $ | 722 | |||||||
Amortization of purchased intangibles | $ | 7 | $ | 16 | $ | 23 | |||||||||||||||
Research, development and engineering expenses (2) | $ | 60 | $ | 103 | $ | 68 | $ | 108 | $ | 15 | $ | 104 | $ | 458 | |||||||
Equity in earnings of affiliated companies | $ | 314 | $ | 2 | $ | 1 | $ | 4 | $ | 13 | $ | 334 | |||||||||
Income tax (provision) benefit | $ | -250 | $ | -87 | $ | -47 | $ | -79 | $ | -28 | $ | 46 | $ | -445 | |||||||
Net income (loss) (3) | $ | 1,004 | $ | 173 | $ | 95 | $ | 162 | $ | 57 | $ | -91 | $ | 1,400 | |||||||
Display | Telecom- | Environmental | Specialty | Life | All | Total | |||||||||||||||
Technologies | munications | Technologies | Materials | Sciences | Other | ||||||||||||||||
Nine months ended | |||||||||||||||||||||
September 30, 2012 | |||||||||||||||||||||
Net sales | $ | 2,109 | $ | 1,590 | $ | 745 | $ | 947 | $ | 472 | $ | 3 | $ | 5,866 | |||||||
Depreciation (1) | $ | 377 | $ | 98 | $ | 87 | $ | 110 | $ | 31 | $ | 11 | $ | 714 | |||||||
Amortization of purchased intangibles | $ | 7 | $ | 6 | $ | 13 | |||||||||||||||
Research, development and engineering expenses (2)(4) | $ | 77 | $ | 105 | $ | 75 | $ | 101 | $ | 16 | $ | 91 | $ | 465 | |||||||
Equity in earnings of affiliated companies | $ | 553 | $ | -1 | $ | 1 | $ | 14 | $ | 567 | |||||||||||
Income tax (provision) benefit (4) | $ | -257 | $ | -46 | $ | -50 | $ | -57 | $ | -15 | $ | 38 | $ | -387 | |||||||
Net income (loss) (3)(4) | $ | 1,235 | $ | 93 | $ | 102 | $ | 115 | $ | 32 | $ | -66 | $ | 1,511 | |||||||
Reconciliation of Revenue from Segments to Consolidated [Table Text Block] | Three months ended | Nine months ended | |||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||
Net income of reportable segments (4) | $ | 497 | $ | 571 | $ | 1,491 | $ | 1,577 | |||||||||||||
Non-reportable segments | -32 | -30 | -91 | -66 | |||||||||||||||||
Unallocated amounts: | |||||||||||||||||||||
Net financing costs (1) | -3 | -55 | -65 | -139 | |||||||||||||||||
Stock-based compensation expense | -15 | -16 | -40 | -56 | |||||||||||||||||
Exploratory research | -29 | -27 | -80 | -74 | |||||||||||||||||
Corporate contributions | -7 | -13 | -32 | -36 | |||||||||||||||||
Equity in earnings of affiliated companies, net of impairments (2) | 59 | 52 | 142 | 151 | |||||||||||||||||
Asbestos settlement (3) | -5 | -3 | -13 | -9 | |||||||||||||||||
Purchased collars and average rate forward contracts (6) | -46 | 206 | |||||||||||||||||||
Other corporate items (4)(5) | -11 | 54 | 22 | 133 | |||||||||||||||||
Net income (4) | $ | 408 | $ | 533 | $ | 1,540 | $ | 1,481 |
Note_1_Significant_Accounting_2
Note 1 - Significant Accounting Policies (Details) | 9 Months Ended |
Sep. 30, 2013 | |
Disclosure Text Block [Abstract] | |
Benchmark Percentage of Benefit Obligation or Market-related Value of Plan Assets | 10.00% |
Defined Benefit Plan, Expected Return on Plan Assets, Asset Gains and Losses Spread Period | 3 years |
Note_1_Significant_Accounting_3
Note 1 - Significant Accounting Policies (Details) - Changes to Financial Statement Line Items as a Result of Accounting Methodology Change (USD $) | 3 Months Ended | 9 Months Ended | ||||||||||||||
In Millions, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Jun. 30, 2013 | Dec. 31, 2012 | Jun. 30, 2012 | Dec. 31, 2011 | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||||
Cost of sales | $1,166 | $1,149 | $3,309 | $3,345 | ||||||||||||
Gross margin | 901 | 889 | 2,554 | 2,521 | ||||||||||||
Selling, general and administrative expenses | 265 | 289 | 790 | 848 | ||||||||||||
Research, development and engineering expenses | 184 | 182 | 541 | 551 | ||||||||||||
Operating income | 439 | 411 | 1,187 | 1,100 | ||||||||||||
Income before income taxes | 549 | 627 | 1,906 | 1,793 | ||||||||||||
Provision for income taxes | -141 | [1] | -94 | [1] | -366 | [1] | -312 | [1] | ||||||||
Net income attributable to Corning Incorporated | 408 | [2] | 533 | [2] | 1,540 | [2] | 1,481 | [2] | ||||||||
Earnings per common share attributable to Corning Incorporated – Basic (in Dollars per share) | $0.28 | $0.36 | $1.05 | $0.99 | ||||||||||||
Earnings per common share attributable to Corning Incorporated – Diluted (in Dollars per share) | $0.28 | $0.36 | $1.04 | $0.98 | ||||||||||||
Other comprehensive loss, net of tax | 313 | [3] | 231 | [3] | -431 | [3] | 183 | [3] | ||||||||
Comprehensive income attributable to Corning Incorporated | 721 | 764 | 1,109 | 1,664 | ||||||||||||
Retained earnings | 11,017 | 11,017 | 9,932 | |||||||||||||
Accumulated other comprehensive (loss) income | -75 | [3] | 659 | [3] | -75 | [3] | 659 | [3] | -388 | [3] | 356 | [3] | 428 | [3] | 476 | [3] |
Cash flows from operating activities: | ||||||||||||||||
Deferred tax provision | 141 | 65 | ||||||||||||||
Employee benefit payments | 34 | -57 | ||||||||||||||
Previous Accounting Method [Member] | ||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||||
Cost of sales | 1,179 | 1,159 | 3,349 | 3,376 | ||||||||||||
Gross margin | 888 | 879 | 2,514 | 2,490 | ||||||||||||
Selling, general and administrative expenses | 272 | 295 | 810 | 865 | ||||||||||||
Research, development and engineering expenses | 188 | 185 | 553 | 560 | ||||||||||||
Operating income | 415 | 392 | 1,115 | 1,043 | ||||||||||||
Income before income taxes | 525 | 608 | 1,834 | 1,736 | ||||||||||||
Provision for income taxes | -132 | -87 | -340 | -291 | ||||||||||||
Net income attributable to Corning Incorporated | 393 | 521 | 1,494 | 1,445 | ||||||||||||
Earnings per common share attributable to Corning Incorporated – Basic (in Dollars per share) | $0.27 | $0.35 | $1.02 | $0.96 | ||||||||||||
Earnings per common share attributable to Corning Incorporated – Diluted (in Dollars per share) | $0.27 | $0.35 | $1.01 | $0.95 | ||||||||||||
Other comprehensive loss, net of tax | 326 | 241 | -390 | 194 | ||||||||||||
Comprehensive income attributable to Corning Incorporated | 719 | 762 | 1,104 | 1,639 | ||||||||||||
Retained earnings | 11,632 | 11,632 | 10,588 | |||||||||||||
Accumulated other comprehensive (loss) income | -690 | -690 | -300 | |||||||||||||
Cash flows from operating activities: | ||||||||||||||||
Deferred tax provision | 115 | 44 | ||||||||||||||
Employee benefit payments | 106 | |||||||||||||||
Effect of Accounting Change [Member] | ||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||||
Cost of sales | -13 | -10 | -40 | -31 | ||||||||||||
Gross margin | 13 | 10 | 40 | 31 | ||||||||||||
Selling, general and administrative expenses | -7 | -6 | -20 | -17 | ||||||||||||
Research, development and engineering expenses | -4 | -3 | -12 | -9 | ||||||||||||
Operating income | 24 | 19 | 72 | 57 | ||||||||||||
Income before income taxes | 24 | 19 | 72 | 57 | ||||||||||||
Provision for income taxes | -9 | -7 | -26 | -21 | ||||||||||||
Net income attributable to Corning Incorporated | 15 | 12 | 46 | 36 | ||||||||||||
Earnings per common share attributable to Corning Incorporated – Basic (in Dollars per share) | $0.01 | $0.01 | $0.03 | $0.03 | ||||||||||||
Earnings per common share attributable to Corning Incorporated – Diluted (in Dollars per share) | $0.01 | $0.01 | $0.03 | $0.03 | ||||||||||||
Other comprehensive loss, net of tax | -13 | -10 | -41 | -11 | ||||||||||||
Comprehensive income attributable to Corning Incorporated | 2 | 2 | 5 | 25 | ||||||||||||
Retained earnings | -615 | -615 | -656 | |||||||||||||
Accumulated other comprehensive (loss) income | 615 | 615 | 656 | |||||||||||||
Cash flows from operating activities: | ||||||||||||||||
Deferred tax provision | 26 | 21 | ||||||||||||||
Employee benefit payments | ($72) | ($57) | ||||||||||||||
[1] | Results for 2012 include the impact of defined benefit pension plan methodology change implemented in the first quarter of 2013 and retrospectively applied to prior periods. See Note 1 of Notes to Consolidated Financial Statements for a discussion of the change and the impacts of the change for the three and nine months ended September 30, 2012. | |||||||||||||||
[2] | As revised for the change in our method of recognizing pension expense. See Note 1 of Notes to Consolidated Financial Statements for a discussion of the change and the impacts of the change for the three and nine months ended September 30, 2012. | |||||||||||||||
[3] | All amounts are after tax. Amounts in parentheses indicate debits to accumulated other comprehensive income. |
Note_1_Significant_Accounting_4
Note 1 - Significant Accounting Policies (Details) - Other Income, Net (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Note 1 - Significant Accounting Policies (Details) - Other Income, Net [Line Items] | ||||
Foreign currency exchange and hedge (losses) gains, net | ($33) | ($1) | $248 | $4 |
Net loss attributable to noncontrolling interests | 1 | 1 | 4 | |
Other, net | 18 | -15 | 37 | -29 |
Total | -1 | 5 | 329 | 42 |
Samsung Corning Precision Materials Co., Ltd. [Member] | ||||
Note 1 - Significant Accounting Policies (Details) - Other Income, Net [Line Items] | ||||
Royalty income from Samsung Corning Precision | $14 | $20 | $43 | $63 |
Note_2_Restructuring_Impairmen2
Note 2 - Restructuring, Impairment and Other Charges (Credits) (Details) - Restructuring, Impairment and Other Charges (Credits) (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Note 2 - Restructuring, Impairment and Other Charges (Credits) (Details) - Restructuring, Impairment and Other Charges (Credits) [Line Items] | ||
Reserve | $42 | |
Net charges/ reversals | -1 | |
Cash payments | -30 | -3 |
Reserve | 11 | |
Employee-Related Costs [Member] | ||
Note 2 - Restructuring, Impairment and Other Charges (Credits) (Details) - Restructuring, Impairment and Other Charges (Credits) [Line Items] | ||
Reserve | 38 | |
Net charges/ reversals | -1 | |
Cash payments | -27 | |
Reserve | 10 | |
Other Charges (Credits) [Member] | ||
Note 2 - Restructuring, Impairment and Other Charges (Credits) (Details) - Restructuring, Impairment and Other Charges (Credits) [Line Items] | ||
Reserve | 4 | |
Cash payments | -3 | |
Reserve | $1 |
Note_3_Commitments_Contingenci1
Note 3 - Commitments, Contingencies, and Guarantees (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 |
Note 3 - Commitments, Contingencies, and Guarantees (Details) [Line Items] | |||||
Equity Method Investments | $5,142 | $5,142 | $4,912 | ||
Asbestos Litigation Expense | 5 | 3 | 13 | 9 | |
Recorded Unconditional Purchase Obligation | 129 | 129 | 89 | ||
Number of Hazardous Waste Sites | 16 | 16 | |||
Contingent Guarantees [Member] | |||||
Note 3 - Commitments, Contingencies, and Guarantees (Details) [Line Items] | |||||
Guarantor Obligations, Maximum Exposure, Undiscounted | 150 | 150 | 142 | ||
Corning Inc. [Member] | Asbestos Litigation [Member] | |||||
Note 3 - Commitments, Contingencies, and Guarantees (Details) [Line Items] | |||||
Loss Contingency, Estimate of Possible Loss | 150 | 150 | |||
Corning Inc. [Member] | |||||
Note 3 - Commitments, Contingencies, and Guarantees (Details) [Line Items] | |||||
Equity Method Investment, Ownership Percentage | 50.00% | 50.00% | |||
PPG Industries, Inc. [Member] | |||||
Note 3 - Commitments, Contingencies, and Guarantees (Details) [Line Items] | |||||
Equity Method Investment, Ownership Percentage | 50.00% | 50.00% | |||
Pittsburgh Corning Europe (PCE) [Member] | |||||
Note 3 - Commitments, Contingencies, and Guarantees (Details) [Line Items] | |||||
Equity Method Investments | 160 | 160 | 149 | ||
Asbestos Litigation [Member] | |||||
Note 3 - Commitments, Contingencies, and Guarantees (Details) [Line Items] | |||||
Loss Contingency, Pending Claims, Number | 9,800 | 9,800 | |||
Loss Contingency Accrual, Product Liability, Gross | 684 | 684 | 671 | ||
Environmental Cleanup And Related Litigation [Member] | |||||
Note 3 - Commitments, Contingencies, and Guarantees (Details) [Line Items] | |||||
Accrual for Environmental Loss Contingencies | $16 | $16 | $21 |
Note_4_Debt_Details
Note 4 - Debt (Details) | 3 Months Ended | 3 Months Ended | ||||||
Mar. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Mar. 31, 2012 | Mar. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | |
USD ($) | USD ($) | USD ($) | Notes 4.70% [Member] | Notes 4.75% [Member] | Commercial Paper [Member] | Letter of Credit [Member] | Foreign Letter of Credit [Member] | |
USD ($) | USD ($) | USD ($) | USD ($) | CNY | ||||
Note 4 - Debt (Details) [Line Items] | ||||||||
Debt Instrument, Fair Value Disclosure | $3,000,000,000 | $3,700,000,000 | ||||||
Line of Credit Facility, Maximum Borrowing Capacity | 1,000,000,000 | 1,000,000,000 | 4,000,000,000 | |||||
Repayments of Lines of Credit | 500,000,000 | |||||||
Par Value of Issued Senior Unsecured Notes | 250,000,000 | 500,000,000 | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 4.70% | 4.75% | ||||||
Proceeds from Issuance of Long-term Debt and Capital Securities, Net | $247,000,000 | $495,000,000 |
Note_5_Income_Taxes_Details
Note 5 - Income Taxes (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Note 5 - Income Taxes (Details) [Line Items] | ||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 35.00% | 35.00% | 35.00% | 35.00% |
Tax Adjustments, Settlements, and Unusual Provisions (in Dollars) | ($54) | |||
Effective Income Tax Rate Reconciliation, Tax Holiday, Percent | 1.70% | 1.60% | 1.30% | 1.50% |
Foreign Tax Authority [Member] | ||||
Note 5 - Income Taxes (Details) [Line Items] | ||||
Income Tax Expense (Benefit), Continuing Operations, Adjustment of Deferred Tax (Asset) Liability (in Dollars) | 28 | |||
State and Local Jurisdiction [Member] | ||||
Note 5 - Income Taxes (Details) [Line Items] | ||||
Income Tax Expense (Benefit), Continuing Operations, Adjustment of Deferred Tax (Asset) Liability (in Dollars) | 20 |
Note_5_Income_Taxes_Details_Pr
Note 5 - Income Taxes (Details) - Provision for Income Taxes and Effective Income Tax Rates (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||||
Provision for Income Taxes and Effective Income Tax Rates [Abstract] | ||||||||
Provision for income taxes (1) (in Dollars) | ($141) | [1] | ($94) | [1] | ($366) | [1] | ($312) | [1] |
Effective tax rate (1) | 25.70% | [1] | 15.00% | [1] | 19.20% | [1] | 17.40% | [1] |
[1] | Results for 2012 include the impact of defined benefit pension plan methodology change implemented in the first quarter of 2013 and retrospectively applied to prior periods. See Note 1 of Notes to Consolidated Financial Statements for a discussion of the change and the impacts of the change for the three and nine months ended September 30, 2012. |
Note_6_Earnings_per_Common_Sha2
Note 6 - Earnings per Common Share (Details) - Reconciliation of Amounts Used in Basic and Diluted Earnings per Common Share (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Millions, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||||
Reconciliation of Amounts Used in Basic and Diluted Earnings per Common Share [Abstract] | ||||||||
Basic earnings per common share (in Dollars) | $408 | [1] | $533 | [1] | $1,540 | [1] | $1,481 | [1] |
Basic earnings per common share | 1,454 | 1,483 | 1,465 | 1,502 | ||||
Basic earnings per common share (in Dollars per share) | $0.28 | $0.36 | $1.05 | $0.99 | ||||
Effect of dilutive securities: | ||||||||
Stock options and other dilutive securities | 9 | 11 | 9 | 12 | ||||
Diluted earnings per common share (in Dollars) | $408 | $533 | $1,540 | $1,481 | ||||
Diluted earnings per common share | 1,463 | 1,494 | 1,474 | 1,514 | ||||
Diluted earnings per common share (in Dollars per share) | $0.28 | $0.36 | $1.04 | $0.98 | ||||
[1] | As revised for the change in our method of recognizing pension expense. See Note 1 of Notes to Consolidated Financial Statements for a discussion of the change and the impacts of the change for the three and nine months ended September 30, 2012. |
Note_6_Earnings_per_Common_Sha3
Note 6 - Earnings per Common Share (Details) - Potential Common Shares Excluded from the Calculation of Diluted Earnings Per Common Share | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Potential Common Shares Excluded from the Calculation of Diluted Earnings Per Common Share [Abstract] | ||||
Stock options and other dilutive securities excluded from the calculation of diluted earnings per common share | 36 | 44 | 40 | 43 |
Note_7_AvailableforSale_Invest2
Note 7 - Available-for-Sale Investments (Details) (USD $) | 9 Months Ended | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | |
Available For Sale Investments [Abstract] | ||||
Available-for-sale Securities, Debt Maturities, after Ten Years, Fair Value | $39 | [1] | ||
Marketable Securities, Realized Loss, Other than Temporary Impairments, Amount | 6 | 9 | ||
Proceeds from Sale of Short-term Investments | $1,449 | $1,618 | ||
[1] | Includes $39 million of asset-backed securities that mature over time and are being reported at their final maturity dates. |
Note_7_AvailableforSale_Invest3
Note 7 - Available-for-Sale Investments (Details) - Summary of Fair Value of Available-for-Sale Investments (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
U.S. Government and Agencies [Member] | ||
Note 7 - Available-for-Sale Investments (Details) - Summary of Fair Value of Available-for-Sale Investments [Line Items] | ||
Amortized cost | $884 | $1,153 |
Fair value | 886 | 1,156 |
Total Short-Term Investments [Member] | ||
Note 7 - Available-for-Sale Investments (Details) - Summary of Fair Value of Available-for-Sale Investments [Line Items] | ||
Amortized cost | 884 | 1,153 |
Fair value | 886 | 1,156 |
Asset-backed Securities [Member] | ||
Note 7 - Available-for-Sale Investments (Details) - Summary of Fair Value of Available-for-Sale Investments [Line Items] | ||
Amortized cost | 47 | 51 |
Fair value | 39 | 40 |
Total Long-Term Investments [Member] | ||
Note 7 - Available-for-Sale Investments (Details) - Summary of Fair Value of Available-for-Sale Investments [Line Items] | ||
Amortized cost | 47 | 51 |
Fair value | $39 | $40 |
Note_7_AvailableforSale_Invest4
Note 7 - Available-for-Sale Investments (Details) - Summary of Maturities of Available-for-Sale Securities (USD $) | Sep. 30, 2013 | |
In Millions, unless otherwise specified | ||
Summary of Maturities of Available-for-Sale Securities [Abstract] | ||
Less than one year | $634 | |
Due in 1-5 years | 252 | |
Due after 10 years (1) | 39 | [1] |
Total | $925 | |
[1] | Includes $39 million of asset-backed securities that mature over time and are being reported at their final maturity dates. |
Note_7_AvailableforSale_Invest5
Note 7 - Available-for-Sale Investments (Details) - Fair Value and Gross Unrealized Losses of Investments by Length of Time in Continuous Unrealized Loss Position (USD $) | 9 Months Ended | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 | ||
Fair Value and Gross Unrealized Losses of Investments by Length of Time in Continuous Unrealized Loss Position [Abstract] | ||||
Number of securities in a loss position | 20 | 22 | ||
12 months or greater, fair value | $38 | $40 | ||
12 months or greater, unrealized losses | -8 | -11 | [1] | |
Total, fair value | 38 | 40 | ||
Total, unrealized losses | ($8) | [1] | ($11) | |
[1] | Unrealized losses in securities less than 12 months were not significant. |
Note_8_Inventories_Details_Inv
Note 8 - Inventories (Details) - Inventories (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Inventories [Abstract] | ||
Finished goods | $487 | $392 |
Work in process | 225 | 168 |
Raw materials and accessories | 329 | 271 |
Supplies and packing materials | 234 | 220 |
Total inventories | $1,275 | $1,051 |
Note_9_Investments_Details
Note 9 - Investments (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2011 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | |||
Note 9 - Investments (Details) [Line Items] | ||||||||
Due to Affiliate | $20,000,000 | $20,000,000 | $37,000,000 | |||||
Due from Affiliates | 43,000,000 | 43,000,000 | 61,000,000 | |||||
Pre Assessment Tax Notice | 46,000,000 | |||||||
Research and Development Expense | 59,000,000 | 73,000,000 | 186,000,000 | 211,000,000 | ||||
Selling Expense | 4,000,000 | 4,000,000 | 10,000,000 | 11,000,000 | ||||
Income (Loss) from Equity Method Investments | 138,000,000 | 240,000,000 | 477,000,000 | 717,000,000 | ||||
Countervailing Duties, Percent | 6.50% | 6.50% | ||||||
Subsequent Event [Member] | Scenario, Forecast [Member] | ||||||||
Note 9 - Investments (Details) [Line Items] | ||||||||
Effective Income Tax Rate Reconciliation, Tax Contingency, Foreign, Percent | 53.30% | |||||||
Subsequent Event [Member] | Minimum [Member] | ||||||||
Note 9 - Investments (Details) [Line Items] | ||||||||
Effective Income Tax Rate Reconciliation, Tax Contingency, Foreign, Percent | 2.40% | |||||||
Subsequent Event [Member] | Maximum [Member] | ||||||||
Note 9 - Investments (Details) [Line Items] | ||||||||
Effective Income Tax Rate Reconciliation, Tax Contingency, Foreign, Percent | 57.00% | |||||||
Polycrystalline Silicon Business [Member] | Dow Corning Corporation [Member] | ||||||||
Note 9 - Investments (Details) [Line Items] | ||||||||
Equity Method Investment, Underlying Equity in Net Assets | 800,000,000 | 800,000,000 | ||||||
Samsung Corning Precision Materials Co., Ltd. [Member] | Parent Company [Member] | ||||||||
Note 9 - Investments (Details) [Line Items] | ||||||||
Equity Method Investment, Ownership Percentage | 50.00% | [1] | 50.00% | [1] | ||||
Samsung Corning Precision Materials Co., Ltd. [Member] | Samsung Display Co., Ltd. [Member] | ||||||||
Note 9 - Investments (Details) [Line Items] | ||||||||
Equity Method Investment, Ownership Percentage | 43.00% | 43.00% | ||||||
Samsung Corning Precision Materials Co., Ltd. [Member] | Other Shareholders [Member] | ||||||||
Note 9 - Investments (Details) [Line Items] | ||||||||
Equity Method Investment, Ownership Percentage | 7.00% | 7.00% | ||||||
Samsung Corning Precision Materials Co., Ltd. [Member] | ||||||||
Note 9 - Investments (Details) [Line Items] | ||||||||
Due from Related Parties | 8,000,000 | 8,000,000 | 15,000,000 | |||||
Due to Related Parties | 18,000,000 | 18,000,000 | 34,000,000 | |||||
Income (Loss) from Equity Method Investments | 74,000,000 | 186,000,000 | 319,000,000 | 562,000,000 | ||||
Dow Corning Corporation [Member] | Parent Company [Member] | ||||||||
Note 9 - Investments (Details) [Line Items] | ||||||||
Equity Method Investment, Ownership Percentage | 50.00% | [1] | 50.00% | [1] | ||||
Dow Corning Corporation [Member] | Dow Chemical Company [Member] | ||||||||
Note 9 - Investments (Details) [Line Items] | ||||||||
Equity Method Investment, Ownership Percentage | 50.00% | 50.00% | ||||||
Dow Corning Corporation [Member] | Commercial Creditors [Member] | ||||||||
Note 9 - Investments (Details) [Line Items] | ||||||||
Loss Contingency, Range of Possible Loss, Minimum | 93,000,000 | 93,000,000 | ||||||
Loss Contingency, Range of Possible Loss, Maximum | 304,000,000 | 304,000,000 | ||||||
Income (Loss) from Equity Method Investments | 93,000,000 | |||||||
Dow Corning Corporation [Member] | ||||||||
Note 9 - Investments (Details) [Line Items] | ||||||||
Marketable Securities | 73,000,000 | 73,000,000 | ||||||
Payments for Legal Settlements | 1,800,000,000 | |||||||
Estimated Litigation Liability | 1,600,000,000 | 1,600,000,000 | ||||||
Income (Loss) from Equity Method Investments | 57,000,000 | 48,000,000 | 137,000,000 | 144,000,000 | ||||
Result of Korean Tax Holiday Partial Expiration [Member] | ||||||||
Note 9 - Investments (Details) [Line Items] | ||||||||
Other Tax Expense (Benefit) | $14,000,000 | $41,000,000 | ||||||
[1] | Amounts reflect Corning's direct ownership interests in the respective affiliated companies. Corning does not exercise voting control nor control the operations of any of these entities. |
Note_9_Investments_Details_Equ
Note 9 - Investments (Details) - Equity Method Investments (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | |||
In Millions, unless otherwise specified | Samsung Corning Precision Materials Co., Ltd. [Member] | Samsung Corning Precision Materials Co., Ltd. [Member] | Samsung Corning Precision Materials Co., Ltd. [Member] | Dow Corning Corporation [Member] | Dow Corning Corporation [Member] | Dow Corning Corporation [Member] | All Other [Member] | All Other [Member] | All Other [Member] | |||||
Parent Company [Member] | Parent Company [Member] | Parent Company [Member] | ||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||
Ownership interest percentage, minimum | 20.00% | [1] | ||||||||||||
Ownership interest percentage | 50.00% | [1] | 50.00% | [1] | ||||||||||
Ownership interest percentage, maximum | 50.00% | [1] | ||||||||||||
Investment, amount | $5,142 | $4,912 | $3,506 | $3,346 | $1,260 | $1,191 | $376 | $375 | ||||||
Other investments | 18 | 3 | ||||||||||||
Total | $5,160 | $4,915 | ||||||||||||
[1] | Amounts reflect Corning's direct ownership interests in the respective affiliated companies. Corning does not exercise voting control nor control the operations of any of these entities. |
Note_9_Investments_Details_Rel
Note 9 - Investments (Details) - Related Party Information for Investments in Affiliates (Affiliated Companies [Member], USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Affiliated Companies [Member] | ||||
Note 9 - Investments (Details) - Related Party Information for Investments in Affiliates [Line Items] | ||||
Corning sales to affiliated companies | $3 | $10 | $9 | $38 |
Corning purchases from affiliated companies | 33 | 49 | 170 | 117 |
Corning transfers of assets, at cost, to affiliated companies | 12 | 11 | 25 | 36 |
Dividends received from affiliated companies | 39 | 56 | 221 | 577 |
Royalty income from affiliated companies | 15 | 20 | 45 | 64 |
Corning services to affiliates | $6 | $2 | $22 |
Note_9_Investments_Details_Aff
Note 9 - Investments (Details) - Affiliate Results of Operations (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||||
Note 9 - Investments (Details) - Affiliate Results of Operations [Line Items] | ||||||||
Corning’s equity in earnings of Samsung Corning Precision | $138 | $240 | $477 | $717 | ||||
Samsung Corning Precision Materials Co., Ltd. [Member] | ||||||||
Note 9 - Investments (Details) - Affiliate Results of Operations [Line Items] | ||||||||
Net sales | 541 | 783 | 1,790 | 2,352 | ||||
Gross profit | 286 | 534 | 1,034 | 1,598 | ||||
Net income attributable to Samsung Corning Precision | 154 | 367 | 650 | 1,140 | ||||
Corning’s equity in earnings of Samsung Corning Precision | 74 | 186 | 319 | 562 | ||||
Corning purchases from Samsung Corning Precision | 27 | 31 | 150 | 83 | ||||
Dividends received from Samsung Corning Precision | 518 | |||||||
Royalty income from Samsung Corning Precision | 14 | 20 | 43 | 63 | ||||
Corning transfers of machinery and equipment to Samsung Corning Precision at cost (1) | $12 | [1] | $13 | [1] | $25 | [1] | $53 | [1] |
[1] | Corning purchases machinery and equipment on behalf of Samsung Corning Precision to support its capital expansion initiatives. The machinery and equipment are transferred to Samsung Corning Precision at our cost basis. |
Note_9_Investments_Details_Aff1
Note 9 - Investments (Details) - Affiliate Results of Operations (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||||
Statement of Operations: | ||||||||
Corning’s equity in earnings of Dow Corning | $138 | $240 | $477 | $717 | ||||
Dow Corning Corporation [Member] | ||||||||
Statement of Operations: | ||||||||
Net sales | 1,427 | 1,545 | 4,120 | 4,638 | ||||
Gross profit (1) | 265 | [1] | 382 | [1] | 868 | [1] | 1,114 | [1] |
Net income attributable to Dow Corning | 117 | 97 | 267 | 288 | ||||
Corning’s equity in earnings of Dow Corning | 57 | 48 | 137 | 144 | ||||
Related Party Transactions: | ||||||||
Corning purchases from Dow Corning | 5 | 6 | 16 | 18 | ||||
Dividends received from Dow Corning | $31 | $50 | $69 | $50 | ||||
[1] | Gross profit for the three months ended September 30, 2013 includes R&D cost of $59 million (2012: $73 million) and selling expenses of $4 million (2012: $4 million). Gross profit for the nine months ended September 30, 2013 includes R&D cost of $186 million (2012: $211 million) and selling expenses of $10 million (2012: $11 million). |
Note_10_Acquisition_Details
Note 10 - Acquisition (Details) (USD $) | 9 Months Ended | 12 Months Ended | 1 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 | Oct. 31, 2012 |
Becton Dickinson [Member] | |||
Note 10 - Acquisition (Details) [Line Items] | |||
Payments to Acquire Businesses, Net of Cash Acquired | $66 | $739 | |
Finite-Lived Intangible Asset, Useful Life | 20 years | ||
Business Combination, Acquisition Related Costs | $22 |
Note_10_Acquisition_Details_Bu
Note 10 - Acquisition (Details) - Business Acquisitions (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | |
In Thousands, unless otherwise specified | Purchased Assets [Member] | |||
Business Acquisition [Line Items] | ||||
Inventory and other current assets | $74 | |||
Fixed Assets | 81 | |||
Other intangible assets | 279 | |||
Net tangible and intangible assets | 434 | |||
Purchase price | 739 | |||
Goodwill (1) | $1,001,000 | $974,000 | $305 | [1] |
[1] | The goodwill recognized is partly deductible for U.S. income tax purposes. The goodwill was allocated to the Life Sciences segment. |
Note_11_Property_Net_of_Accumu2
Note 11 - Property, Net of Accumulated Depreciation (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | |
Property, Plant and Equipment [Abstract] | |||||
Interest Costs Capitalized | $8,000,000 | $19,000,000 | $25,000,000 | $62,000,000 | |
Precious Metals | 2,300,000,000 | 2,300,000,000 | 2,400,000,000 | ||
Depletion | $4,000,000 | $4,000,000 | $15,000,000 | $14,000,000 |
Note_11_Property_Net_of_Accumu3
Note 11 - Property, Net of Accumulated Depreciation (Details) - Property, Net (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $17,874 | $18,277 |
Accumulated depreciation | -7,897 | -7,652 |
Total | 9,977 | 10,625 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 115 | 112 |
Building [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 4,218 | 4,324 |
Machinery and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 12,402 | 12,571 |
Construction in Progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $1,139 | $1,270 |
Note_12_Goodwill_and_Other_Int2
Note 12 - Goodwill and Other Intangible Assets (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | |
Note 12 - Goodwill and Other Intangible Assets (Details) [Line Items] | |||||
Goodwill, Gross | $7,500,000,000 | $7,500,000,000 | $7,400,000,000 | ||
Finite-Lived Intangible Assets, Period Increase (Decrease) | 28,000,000 | ||||
Amortization of Intangible Assets | 8,000,000 | 4,000,000 | 23,000,000 | 13,000,000 | |
Finite-Lived Intangible Assets, Translation Adjustments | 4,000,000 | ||||
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | 32,000,000 | 32,000,000 | |||
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 32,000,000 | 32,000,000 | |||
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 32,000,000 | 32,000,000 | |||
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 32,000,000 | 32,000,000 | |||
Finite-Lived Intangible Assets, Amortization Expense, Year Five | 32,000,000 | 32,000,000 | |||
Finite-Lived Intangible Assets, Amortization Expense, after Year Five | 32,000,000 | 32,000,000 | |||
Telecommunications [Member] | |||||
Note 12 - Goodwill and Other Intangible Assets (Details) [Line Items] | |||||
Goodwill, Impaired, Accumulated Impairment Loss | $6,500,000,000 | $6,500,000,000 | $6,500,000,000 |
Note_12_Goodwill_and_Other_Int3
Note 12 - Goodwill and Other Intangible Assets (Details) - Carrying Amount of Goodwill by Segment (USD $) | 9 Months Ended | 9 Months Ended | ||||||||
Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | ||||
Telecommunications [Member] | Display Technologies [Member] | Display Technologies [Member] | Specialty Materials [Member] | Specialty Materials [Member] | Life Sciences [Member] | |||||
Goodwill [Line Items] | ||||||||||
Balance | $974,000,000 | $209,000,000 | $9,000,000 | $9,000,000 | $150,000,000 | $150,000,000 | $606,000,000 | |||
Acquired goodwill (1) | 32,000,000 | [1] | 32,000,000 | [1] | ||||||
Measurement period adjustment (2) | -4,000,000 | [2] | -4,000,000 | [2] | ||||||
Foreign currency translation adjustment | -1,000,000 | -1,000,000 | ||||||||
Balance | $1,001,000,000 | $240,000,000 | $9,000,000 | $9,000,000 | $150,000,000 | $150,000,000 | $602,000,000 | |||
[1] | The company recorded a small acquisition and consolidated an equity company due to a change in control in the second quarter of 2013. | |||||||||
[2] | The Company recorded the acquisition of the Discovery Labware business of Becton Dickinson and Company in the fourth quarter of 2012. In the second quarter of 2013, Corning recorded measurement period adjustments. |
Note_12_Goodwill_and_Other_Int4
Note 12 - Goodwill and Other Intangible Assets (Details) - Other Intangible Assets (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Note 12 - Goodwill and Other Intangible Assets (Details) - Other Intangible Assets [Line Items] | ||
Other intangible assets, gross | $727 | $676 |
Other intangible assets, accumulated amortization | -177 | -154 |
Other intangible assets, net | 550 | 522 |
Patents, Trademarks, and Trade Names [Member] | ||
Note 12 - Goodwill and Other Intangible Assets (Details) - Other Intangible Assets [Line Items] | ||
Other intangible assets, gross | 290 | 282 |
Other intangible assets, accumulated amortization | -135 | -128 |
Other intangible assets, net | 155 | 154 |
Customer Lists and Other [Member] | ||
Note 12 - Goodwill and Other Intangible Assets (Details) - Other Intangible Assets [Line Items] | ||
Other intangible assets, gross | 437 | 394 |
Other intangible assets, accumulated amortization | -42 | -26 |
Other intangible assets, net | $395 | $368 |
Note_13_Employee_Retirement_Pl2
Note 13 - Employee Retirement Plans (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Jun. 30, 2013 | Sep. 30, 2013 |
Compensation and Retirement Disclosure [Abstract] | ||
Defined Benefit Plan, Actuarial Gain (Loss) (in Dollars) | ($41) | |
Cap on Contribution Toward Future Retiree Medical Coverage | 120.00% | |
Percentage of Cost to be Paid by Employees for Retiree Medical Upon Retirement | 100.00% |
Note_13_Employee_Retirement_Pl3
Note 13 - Employee Retirement Plans (Details) - Summary of the Components of Net Periodic Benefit Cost (USD $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | |||||||||||||
In Millions, unless otherwise specified | Jun. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||||||||
Pension Plan, Defined Benefit [Member] | Pension Plan, Defined Benefit [Member] | Pension Plan, Defined Benefit [Member] | Pension Plan, Defined Benefit [Member] | Postretirement Benefits [Member] | Postretirement Benefits [Member] | Postretirement Benefits [Member] | Postretirement Benefits [Member] | ||||||||||
Note 13 - Employee Retirement Plans (Details) - Summary of the Components of Net Periodic Benefit Cost [Line Items] | |||||||||||||||||
Service cost | $16 | $16 | $53 | $46 | $3 | $3 | $10 | $9 | |||||||||
Interest cost | 33 | 38 | 99 | 114 | 10 | 11 | 29 | 33 | |||||||||
Expected return on plan assets (1) | -42 | [1] | -41 | [1] | -126 | [1] | -123 | [1] | |||||||||
Amortization of net loss (1) | 3 | [1] | 4 | [1] | 11 | [1] | 12 | [1] | |||||||||
Amortization of prior service cost | 1 | 1 | 3 | 3 | -1 | -1 | -4 | -3 | |||||||||
Recognition of actuarial gain | 41 | -41 | |||||||||||||||
Total pension and postretirement benefit expense (1) | $8 | [1] | $14 | [1] | ($12) | [1] | $40 | [1] | $15 | [1] | $17 | [1] | $46 | [1] | $51 | [1] | |
[1] | Amounts for 2012 were revised for the change in our method of recognizing pension expense. See Note 1 of Notes to Consolidated Financial Statements for a discussion of the change and the impacts of the change for the three and nine months ended September 30, 2012. |
Note_14_Hedging_Activities_Det
Note 14 - Hedging Activities (Details) (USD $) | 9 Months Ended | ||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Oct. 31, 2012 | Sep. 30, 2013 |
Interest Rate Swap [Member] | Interest Rate Swap [Member] | Collar Options [Member] | |||
Note 14 - Hedging Activities (Details) [Line Items] | |||||
Maximum Length of Time Hedged in Cash Flow Hedge | 36 months | ||||
Derivative Instruments, Gain Reclassified from Accumulated OCI into Income, Effective Portion | $26 | ||||
Derivative Asset, Notional Amount | 550 | 550 | |||
Derivative, Notional Amount | $10,373 | $3,208 | $3,700 |
Note_14_Hedging_Activities_Det1
Note 14 - Hedging Activities (Details) - Summary of Notional Amounts and Respective Fair Value of Derivative Financial Instruments (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Oct. 31, 2012 | Sep. 30, 2013 |
In Millions, unless otherwise specified | Designated as Hedging Instrument [Member] | Designated as Hedging Instrument [Member] | Designated as Hedging Instrument [Member] | Designated as Hedging Instrument [Member] | Not Designated as Hedging Instrument [Member] | Not Designated as Hedging Instrument [Member] | Not Designated as Hedging Instrument [Member] | Not Designated as Hedging Instrument [Member] | Interest Rate Swap [Member] | Interest Rate Swap [Member] | Collar Options [Member] | ||
Foreign Exchange Contract [Member] | Foreign Exchange Contract [Member] | Interest Rate Swap [Member] | Interest Rate Swap [Member] | Balance Sheet Location #2 [Member] | Foreign Exchange Contract [Member] | Foreign Exchange Contract [Member] | Collar Options [Member] | ||||||
Collar Options [Member] | |||||||||||||
Note 14 - Hedging Activities (Details) - Summary of Notional Amounts and Respective Fair Value of Derivative Financial Instruments [Line Items] | |||||||||||||
Derivatives designated as hedging instruments - gross notional amount | $308 | $719 | $1,300 | $550 | $591 | $1,939 | $8,174 | $550 | $550 | ||||
Derivatives designated as hedging instruments - asset derivatives, fair value | 343 | 166 | 28 | 57 | 40 | ||||||||
Derivatives designated as hedging instruments - liability derivatives, fair value | -54 | -13 | -2 | -3 | -22 | -9 | -8 | -10 | -13 | ||||
Derivatives not designated as hedging instruments - gross notional amount | 308 | 719 | 1,300 | 550 | 591 | 1,939 | 8,174 | 550 | 550 | ||||
Derivatives not designated as hedging instruments - asset derivatives, fair value | 95 | 8 | 109 | 172 | |||||||||
Derivatives not designated as hedging instruments - liability derivatives, fair value | -54 | -13 | -2 | -3 | -22 | -9 | -8 | -10 | -13 | ||||
Total derivatives | 10,373 | 3,208 | 3,700 | ||||||||||
Total derivatives | 343 | 166 | 28 | 57 | 40 | ||||||||
Total derivatives | ($54) | ($13) | ($2) | ($3) | ($22) | ($9) | ($8) | ($10) | ($13) |
Note_14_Hedging_Activities_Det2
Note 14 - Hedging Activities (Details) - Effect of Derivative Financial Instruments on Consolidated Financial Statements and Undesignated Derivatives (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||||
Cash Flow Hedging [Member] | ||||||||
Note 14 - Hedging Activities (Details) - Effect of Derivative Financial Instruments on Consolidated Financial Statements and Undesignated Derivatives [Line Items] | ||||||||
Gain/(loss) recognized in other comprehensive income (OCI) | $0 | [1] | ($3) | [1] | $88 | [1] | $44 | [1] |
Gain reclassified from accumulated OCI into income (effective) | 26 | [1],[2] | 4 | [1],[2] | 76 | [1],[2] | 16 | [1],[2] |
Sales [Member] | Interest Rate Hedges [Member] | ||||||||
Note 14 - Hedging Activities (Details) - Effect of Derivative Financial Instruments on Consolidated Financial Statements and Undesignated Derivatives [Line Items] | ||||||||
Gain reclassified from accumulated OCI into income (effective) | 1 | [1],[2] | 1 | [1],[2] | ||||
Cost of Sales [Member] | Interest Rate Hedges [Member] | ||||||||
Note 14 - Hedging Activities (Details) - Effect of Derivative Financial Instruments on Consolidated Financial Statements and Undesignated Derivatives [Line Items] | ||||||||
Gain/(loss) recognized in other comprehensive income (OCI) | 3 | [1] | 40 | [1] | 15 | [1] | ||
Gain reclassified from accumulated OCI into income (effective) | 9 | [1],[2] | 3 | [1],[2] | 28 | [1],[2] | 9 | [1],[2] |
Royalties [Member] | Foreign Exchange Contract [Member] | ||||||||
Note 14 - Hedging Activities (Details) - Effect of Derivative Financial Instruments on Consolidated Financial Statements and Undesignated Derivatives [Line Items] | ||||||||
Gain/(loss) recognized in other comprehensive income (OCI) | -3 | [1] | -3 | [1] | 48 | [1] | 29 | [1] |
Gain reclassified from accumulated OCI into income (effective) | $17 | [1],[2] | $48 | [1],[2] | $6 | [1],[2] | ||
[1] | Certain amounts for prior periods were reclassified to conform to the current year presentation. | |||||||
[2] | The amount of hedge ineffectiveness for the three months ended September 30, 2013 and 2012 was insignificant. |
Note_14_Hedging_Activities_Det3
Note 14 - Hedging Activities (Details) - Effect of Derivative Financial Instruments on Consolidated Financial Statements and Undesignated Derivatives (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Undesignated [Member] | ||||
Note 14 - Hedging Activities (Details) - Effect of Derivative Financial Instruments on Consolidated Financial Statements and Undesignated Derivatives [Line Items] | ||||
Gain/(loss) recognized in income | ($32) | ($61) | $424 | $73 |
Other Income [Member] | Foreign Exchange Contract [Member] | ||||
Note 14 - Hedging Activities (Details) - Effect of Derivative Financial Instruments on Consolidated Financial Statements and Undesignated Derivatives [Line Items] | ||||
Gain/(loss) recognized in income | 14 | -61 | 219 | 73 |
Other Income [Member] | Collar Options [Member] | ||||
Note 14 - Hedging Activities (Details) - Effect of Derivative Financial Instruments on Consolidated Financial Statements and Undesignated Derivatives [Line Items] | ||||
Gain/(loss) recognized in income | ($46) | $205 |
Note_15_Fair_Value_Measurement2
Note 15 - Fair Value Measurements (Details) - Major Categories of Financial Assets and Liabilities Measured on a Recurring Basis (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | ||
In Millions, unless otherwise specified | ||||
Note 15 - Fair Value Measurements (Details) - Major Categories of Financial Assets and Liabilities Measured on a Recurring Basis [Line Items] | ||||
Other assets | $495 | $301 | ||
Current Assets [Member] | Fair Value, Inputs, Level 1 [Member] | ||||
Note 15 - Fair Value Measurements (Details) - Major Categories of Financial Assets and Liabilities Measured on a Recurring Basis [Line Items] | ||||
Short-term investments | 886 | 1,156 | ||
Current Assets [Member] | Fair Value, Inputs, Level 2 [Member] | ||||
Note 15 - Fair Value Measurements (Details) - Major Categories of Financial Assets and Liabilities Measured on a Recurring Basis [Line Items] | ||||
Other current assets | 208 | [1] | 166 | [2] |
Current Assets [Member] | ||||
Note 15 - Fair Value Measurements (Details) - Major Categories of Financial Assets and Liabilities Measured on a Recurring Basis [Line Items] | ||||
Short-term investments | 886 | 1,156 | ||
Other current assets | 208 | [1] | 166 | [2] |
Non Current Assets [Member] | Fair Value, Inputs, Level 2 [Member] | ||||
Note 15 - Fair Value Measurements (Details) - Major Categories of Financial Assets and Liabilities Measured on a Recurring Basis [Line Items] | ||||
Other assets | 174 | [1],[3] | 40 | [3] |
Non Current Assets [Member] | ||||
Note 15 - Fair Value Measurements (Details) - Major Categories of Financial Assets and Liabilities Measured on a Recurring Basis [Line Items] | ||||
Other assets | 174 | [1],[3] | 40 | [3] |
Current Liabilities [Member] | Fair Value, Inputs, Level 2 [Member] | ||||
Note 15 - Fair Value Measurements (Details) - Major Categories of Financial Assets and Liabilities Measured on a Recurring Basis [Line Items] | ||||
Other liabilities | 23 | [1] | 13 | [2] |
Current Liabilities [Member] | ||||
Note 15 - Fair Value Measurements (Details) - Major Categories of Financial Assets and Liabilities Measured on a Recurring Basis [Line Items] | ||||
Other liabilities | 23 | [1] | 13 | [2] |
Non Current Liabilities [Member] | Fair Value, Inputs, Level 2 [Member] | ||||
Note 15 - Fair Value Measurements (Details) - Major Categories of Financial Assets and Liabilities Measured on a Recurring Basis [Line Items] | ||||
Other liabilities | 31 | [1] | ||
Non Current Liabilities [Member] | ||||
Note 15 - Fair Value Measurements (Details) - Major Categories of Financial Assets and Liabilities Measured on a Recurring Basis [Line Items] | ||||
Other liabilities | $31 | [1] | ||
[1] | Derivative assets and liabilities include foreign exchange contracts, interest rate contracts, and translated earnings contracts which are measured using observable quoted prices for similar assets and liabilities. | |||
[2] | Derivative assets and liabilities include foreign exchange contracts which are measured using observable quoted prices for similar assets and liabilities. | |||
[3] | Other assets include asset-backed securities which are measured using observable quoted prices for similar assets. |
Note_16_Accumulated_Other_Comp2
Note 16 - Accumulated Other Comprehensive Income (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Note 16 - Accumulated Other Comprehensive Income (Details) [Line Items] | ||||
Other Comprehensive Income (Loss), Tax, Portion Attributable to Parent | ($2) | $2 | $40 | $22 |
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Tax, Portion Attributable to Parent | -1 | -1 | 32 | 16 |
Other Comprehensive Income (Loss), Available-for-sale Securities, Tax, Portion Attributable to Parent | -1 | 3 | 6 | |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Tax | 9 | 2 | 27 | 6 |
Other Comprehensive (Income) Loss, Reclassification Adjustment from AOCI, Pension and Other Postretirement Benefit Plans, Tax | 2 | 2 | 4 | 5 |
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, before Reclassification Adjustments, Tax | -8 | |||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Tax | 3 | |||
Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||
Note 16 - Accumulated Other Comprehensive Income (Details) [Line Items] | ||||
Other Comprehensive Income (Loss), Tax, Portion Attributable to Parent | ($7) | ($23) | ($4) |
Note_16_Accumulated_Other_Comp3
Note 16 - Accumulated Other Comprehensive Income (Details) - Changes in Accumulated Other Comprehensive Income (Loss) by Component (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Accumulated other comprehensive income | ($388) | [1] | $428 | [1] | $356 | [1] | $476 | [1] |
Other comprehensive income before reclassifications | 77 | [1],[2] | 108 | [1],[3] | -406 | [1],[4] | 2 | [1],[5] |
Amounts reclassified from accumulated other comprehensive income | -16 | [1],[6] | 1 | [1],[7] | -43 | [1],[8] | -10 | [1],[9] |
Equity method affiliates | 252 | [1],[10] | 122 | [1],[10] | 18 | [1],[10] | 191 | |
Net current-period other comprehensive income | 313 | [1] | 231 | [1] | -431 | [1] | 183 | [1] |
Accumulated other comprehensive income | -75 | [1] | 659 | [1] | -75 | [1] | 659 | [1] |
Accumulated Translation Adjustment [Member] | ||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Accumulated other comprehensive income | 373 | [1] | 1,268 | [1] | 1,174 | [1] | 1,353 | [1] |
Other comprehensive income before reclassifications | 76 | [1],[2] | 106 | [1],[3] | -477 | [1],[4] | -37 | [1],[5] |
Equity method affiliates | 241 | [1],[10] | 111 | [1],[10] | -7 | [1],[10] | 169 | [1],[10] |
Net current-period other comprehensive income | 317 | [1] | 217 | [1] | -484 | [1] | 132 | [1] |
Accumulated other comprehensive income | 690 | [1] | 1,485 | [1] | 690 | [1] | 1,485 | [1] |
Accumulated Defined Benefit Plans Adjustment [Member] | ||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Accumulated other comprehensive income | -790 | [1] | -809 | [1] | -820 | [1] | -819 | [1] |
Other comprehensive income before reclassifications | 1 | [1],[2] | 15 | [1],[4] | 1 | [1],[5] | ||
Amounts reclassified from accumulated other comprehensive income | 1 | [1],[6] | 3 | [1],[7] | 6 | [1],[8] | 7 | [1],[9] |
Equity method affiliates | 12 | [1],[10] | 8 | [1],[10] | 23 | [1],[10] | 13 | [1],[10] |
Net current-period other comprehensive income | 14 | [1] | 11 | [1] | 44 | [1] | 21 | [1] |
Accumulated other comprehensive income | -776 | [1] | -798 | [1] | -776 | [1] | -798 | [1] |
Accumulated Net Unrealized Investment Gain (Loss) [Member] | ||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Accumulated other comprehensive income | -14 | [1] | -24 | [1] | -16 | [1] | -29 | [1] |
Other comprehensive income before reclassifications | 4 | [1],[3] | 10 | [1],[5] | ||||
Amounts reclassified from accumulated other comprehensive income | -7 | [1],[9] | ||||||
Equity method affiliates | -1 | [1],[10] | 2 | [1],[10] | 1 | [1],[10] | 8 | [1],[10] |
Net current-period other comprehensive income | -1 | [1] | 6 | [1] | 1 | [1] | 11 | [1] |
Accumulated other comprehensive income | -15 | [1] | -18 | [1] | -15 | [1] | -18 | [1] |
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | ||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Accumulated other comprehensive income | 43 | [1] | -7 | [1] | 18 | [1] | -29 | [1] |
Other comprehensive income before reclassifications | -2 | [1],[3] | 56 | [1],[4] | 28 | [1],[5] | ||
Amounts reclassified from accumulated other comprehensive income | -17 | [1],[6] | -2 | [1],[7] | -49 | [1],[8] | -10 | [1],[9] |
Equity method affiliates | 1 | [1],[10] | 1 | [1],[10] | 1 | [1],[10] | ||
Net current-period other comprehensive income | -17 | [1] | -3 | [1] | 8 | [1] | 19 | [1] |
Accumulated other comprehensive income | $26 | [1] | ($10) | [1] | $26 | [1] | ($10) | [1] |
[1] | All amounts are after tax. Amounts in parentheses indicate debits to accumulated other comprehensive income. | |||||||
[2] | Amounts are net of total tax benefit of $2 million, including $1 million related to the hedges component and $1 million related to the investments component. | |||||||
[3] | Amounts are net of total tax expense of $(2) million, including $1 million related to the hedges component and $(3) million related to the investments component. | |||||||
[4] | Amounts are net of total tax expense of $(40) million, including $(32) million related to the hedges component and $(8) million related to the retirement plans component. | |||||||
[5] | Amounts are net of total tax expense of $(22) million, including $(16) million related to the hedges component and $(6) million related to the investments component. | |||||||
[6] | Amounts are net of total tax benefit of $7 million, including $9 million related to the hedges component and $(2) million related to the retirement plans component. | |||||||
[7] | Amounts include tax benefit of $2 million related to the hedges component and tax expense of $(2) million related to the retirement plans component. | |||||||
[8] | Amounts are net of total tax benefit of $23 million, including $27 million related to the hedges component and $(4) million related to the retirement plans component. | |||||||
[9] | Amounts are net of total tax benefit of $4 million, including $6 million related to the hedges component, $3 million related to the investments component and $(5) million related to the retirement plans component. | |||||||
[10] | Tax effects related to equity method affiliates are not significant. |
Note_16_Accumulated_Other_Comp4
Note 16 - Accumulated Other Comprehensive Income (Details) - Reclassifications Out of Accumulated Other Comprehensive Income by Component (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||||||
Income before tax | $549 | $627 | $1,906 | $1,793 | ||||
Provision for income taxes | -141 | [1] | -94 | [1] | -366 | [1] | -312 | [1] |
Net income | 408 | [2] | 533 | [2] | 1,540 | [2] | 1,481 | [2] |
Realized gains on designated hedges | 2,067 | 2,038 | 5,863 | 5,866 | ||||
1,166 | 1,149 | 3,309 | 3,345 | |||||
Realized gains on investments | -1 | 5 | 329 | 42 | ||||
Accumulated Defined Benefit Plans Adjustment [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||||||
Amortization of net actuarial loss | -3 | [3],[4] | -5 | [3],[4] | -11 | [3],[4] | -12 | [3],[4] |
Amortization of prior service cost | 1 | [3],[4] | ||||||
Income before tax | -3 | [3] | -5 | [3] | -10 | [3] | -12 | [3] |
Provision for income taxes | 2 | [3] | 2 | [3] | 4 | [3] | 5 | [3] |
Net income | -1 | [3] | -3 | [3] | -6 | [3] | -7 | [3] |
Accumulated Net Unrealized Investment Gain (Loss) [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||||||
Provision for income taxes | -3 | [3] | ||||||
Net income | 7 | [3] | ||||||
Realized gains on investments | 10 | [3] | ||||||
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||||||
Income before tax | 26 | [3] | 4 | [3] | 76 | [3] | 16 | [3] |
Provision for income taxes | -9 | [3] | -2 | [3] | -27 | [3] | -6 | [3] |
Net income | 17 | [3] | 2 | [3] | 49 | [3] | 10 | [3] |
Realized gains on designated hedges | 1 | [3] | 1 | [3] | ||||
9 | [3] | 3 | [3] | 28 | [3] | 9 | [3] | |
17 | [3] | 48 | [3] | 6 | [3] | |||
Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||||||
Net income | $16 | [3] | ($1) | [3] | $43 | [3] | $10 | [3] |
[1] | Results for 2012 include the impact of defined benefit pension plan methodology change implemented in the first quarter of 2013 and retrospectively applied to prior periods. See Note 1 of Notes to Consolidated Financial Statements for a discussion of the change and the impacts of the change for the three and nine months ended September 30, 2012. | |||||||
[2] | As revised for the change in our method of recognizing pension expense. See Note 1 of Notes to Consolidated Financial Statements for a discussion of the change and the impacts of the change for the three and nine months ended September 30, 2012. | |||||||
[3] | Amounts in parentheses indicate debits to the statement of income. | |||||||
[4] | These accumulated other comprehensive income components are included in net periodic pension cost. See Note 13 - Employee Retirement Plans for additional details. |
Note_17_Sharebased_Compensatio2
Note 17 - Share-based Compensation (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Note 17 - Share-based Compensation (Details) [Line Items] | ||||
Share-based Compensation | $15 | $16 | $40 | $56 |
Maximum Term for Non-Qualified and Incentive Stock Options | 10 years | |||
Proceeds from Stock Options Exercised | 54 | 26 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value | 38 | 31 | ||
Employee Stock Option [Member] | ||||
Note 17 - Share-based Compensation (Details) [Line Items] | ||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | 26 | 26 | ||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 1 year 146 days | |||
Allocated Share-based Compensation Expense | 7 | 9 | 18 | 30 |
Restricted Stock [Member] | ||||
Note 17 - Share-based Compensation (Details) [Line Items] | ||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | 31 | 31 | ||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 1 year 292 days | |||
Allocated Share-based Compensation Expense | 8 | 7 | 22 | 24 |
Incentive Stock Plans Vest Over a Period, Minimum | 1 year | |||
Incentive Stock Plans Vest Over a Period, Maximum | 10 years | |||
Restricted Stock [Member] | Minimum [Member] | ||||
Note 17 - Share-based Compensation (Details) [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | 1 year | |||
Restricted Stock [Member] | Maximum [Member] | ||||
Note 17 - Share-based Compensation (Details) [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | 10 years | |||
Performance Shares [Member] | ||||
Note 17 - Share-based Compensation (Details) [Line Items] | ||||
Allocated Share-based Compensation Expense | $2 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | |||
Minimum [Member] | ||||
Note 17 - Share-based Compensation (Details) [Line Items] | ||||
Stock Options Exercisable Period from Date of Grant | 1 year | |||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | 5 years 292 days | 5 years 255 days | 5 years 292 days | 5 years 255 days |
Maximum [Member] | ||||
Note 17 - Share-based Compensation (Details) [Line Items] | ||||
Stock Options Exercisable Period from Date of Grant | 5 years | |||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | 7 years 73 days | 7 years 36 days | 7 years 36 days | 7 years 36 days |
Note_17_Sharebased_Compensatio3
Note 17 - Share-based Compensation (Details) - Summary of Information Concerning Stock Options Outstanding Including the Related Transactions Under the Stock Option Plans (USD $) | 9 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 |
Summary of Information Concerning Stock Options Outstanding Including the Related Transactions Under the Stock Option Plans [Abstract] | |
Options Outstanding as of December 31, 2012 | 64,061 |
Options Outstanding as of December 31, 2012 (in Dollars per share) | $16.63 |
Granted | 4,430 |
Granted (in Dollars per share) | $14.34 |
Exercised | -6,688 |
Exercised (in Dollars per share) | $7.99 |
Forfeited and Expired | -1,666 |
Forfeited and Expired (in Dollars per share) | $13.23 |
Options Outstanding as of September 30, 2013 | 60,137 |
Options Outstanding as of September 30, 2013 (in Dollars per share) | $17.52 |
Options Outstanding as of September 30, 2013 | 4 years 361 days |
Options Outstanding as of September 30, 2013 (in Dollars) | $81,887 |
Options Expected to Vest as of September 30, 2013 | 59,951 |
Options Expected to Vest as of September 30, 2013 (in Dollars per share) | $17.53 |
Options Expected to Vest as of September 30, 2013 | 4 years 361 days |
Options Expected to Vest as of September 30, 2013 (in Dollars) | 81,617 |
Options Exercisable as of September 30, 2013 | 46,445 |
Options Exercisable as of September 30, 2013 (in Dollars per share) | $18.41 |
Options Exercisable as of September 30, 2013 | 3 years 343 days |
Options Exercisable as of September 30, 2013 (in Dollars) | $64,678 |
Note_17_Sharebased_Compensatio4
Note 17 - Share-based Compensation (Details) - Inputs Used for Valuation of Option Grants Under Stock Option Plans | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Minimum [Member] | ||||
Note 17 - Share-based Compensation (Details) - Inputs Used for Valuation of Option Grants Under Stock Option Plans [Line Items] | ||||
Expected volatility | 46.60% | 47.80% | 46.60% | 47.80% |
Weighted-average volatility | 46.70% | 48.10% | 46.70% | 48.10% |
Expected dividends | 2.68% | 2.59% | 2.68% | 2.28% |
Risk-free rate | 1.80% | 1.00% | 0.80% | 0.90% |
Average risk-free rate | 2.20% | 1.20% | 1.10% | 1.20% |
Expected term (in years) | 5 years 292 days | 5 years 255 days | 5 years 292 days | 5 years 255 days |
Pre-vesting departure rate | 0.40% | 0.40% | 0.40% | 0.40% |
Maximum [Member] | ||||
Note 17 - Share-based Compensation (Details) - Inputs Used for Valuation of Option Grants Under Stock Option Plans [Line Items] | ||||
Expected volatility | 47.00% | 48.10% | 47.40% | 48.90% |
Weighted-average volatility | 46.70% | 48.10% | 47.30% | 48.50% |
Expected dividends | 2.68% | 2.59% | 3.02% | 2.59% |
Risk-free rate | 2.20% | 1.30% | 2.20% | 1.30% |
Average risk-free rate | 2.20% | 1.20% | 2.20% | 1.30% |
Expected term (in years) | 7 years 73 days | 7 years 36 days | 7 years 36 days | 7 years 36 days |
Pre-vesting departure rate | 4.10% | 4.20% | 4.10% | 4.20% |
Note_17_Sharebased_Compensatio5
Note 17 - Share-based Compensation (Details) - Summary of the Status of Non-Vested Time-Based Restricted Stock and Restricted Stock Units (USD $) | 9 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 |
Summary of the Status of Non-Vested Time-Based Restricted Stock and Restricted Stock Units [Abstract] | |
Non-vested shares and share units at December 31, 2012 | 5,363 |
Non-vested shares and share units at December 31, 2012 (in Dollars per share) | $15.97 |
Granted | 2,580 |
Granted (in Dollars per share) | $13.45 |
Vested | -1,693 |
Vested (in Dollars per share) | $17.57 |
Forfeited | -96 |
Forfeited (in Dollars per share) | $15.45 |
Non-vested shares and share units at September 30, 2013 | 6,154 |
Non-vested shares and share units at September 30, 2013 (in Dollars per share) | $14.48 |
Note_18_Significant_Customers_
Note 18 - Significant Customers (Details) | 3 Months Ended |
Sep. 30, 2013 | |
Significant Customers [Abstract] | |
Number of Significant Customers | 1 |
Note_19_Reportable_Segments_De
Note 19 - Reportable Segments (Details) (USD $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | ||||||||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |||||
Specialty Materials [Member] | Specialty Materials [Member] | Specialty Materials [Member] | Telecommunications [Member] | Telecommunications [Member] | Telecommunications [Member] | Display Technologies [Member] | Display Technologies [Member] | Environmental Technologies [Member] | Environmental Technologies [Member] | Life Sciences [Member] | Life Sciences [Member] | Dow Corning Corporation [Member] | Dow Corning Corporation [Member] | Dow Corning Corporation [Member] | Dow Corning Corporation [Member] | |||||||||
Note 19 - Reportable Segments (Details) [Line Items] | ||||||||||||||||||||||||
Gain (Loss) on Contract Termination | $30,000,000 | $10,000,000 | $30,000,000 | $10,000,000 | ||||||||||||||||||||
Derivative, Gain on Derivative | 16,000,000 | 16,000,000 | ||||||||||||||||||||||
Valuation Allowance, Deferred Tax Asset, Change in Amount | 4,000,000 | 4,000,000 | ||||||||||||||||||||||
Restructuring Charges | -1,000,000 | 11,000,000 | ||||||||||||||||||||||
5,000,000 | [1] | 3,000,000 | [1] | 13,000,000 | [1] | 9,000,000 | [1] | |||||||||||||||||
Tax Adjustments, Settlements, and Unusual Provisions | -54,000,000 | |||||||||||||||||||||||
Purchased Collar Options | -46,000,000 | [2] | 206,000,000 | [2] | ||||||||||||||||||||
Assets, Net | $1,400,000,000 | $1,400,000,000 | $1,700,000,000 | $1,700,000,000 | $1,700,000,000 | $1,400,000,000 | ||||||||||||||||||
Number of Customers Individually Accounting for 10% or More of Each Segment's Sales | 3 | 3 | 0 | 1 | 4 | 4 | 3 | 3 | 2 | 2 | ||||||||||||||
Percent of Total Segment Sales | 55.00% | 46.00% | 10.00% | 97.00% | 94.00% | 87.00% | 87.00% | 48.00% | 44.00% | |||||||||||||||
[1] | In the three and nine months ended September 30, 2013, Corning recorded a charge of $5 million and $13 million, respectively, to adjust the asbestos liability for the change in value of components of the Amended PCC Plan. In the three and nine month ended September 30, 2012, Corning recorded a charge of $3 million and $9 million, respectively, to adjust the asbestos liability for the change in value of components of the Amended PCC Plan. | |||||||||||||||||||||||
[2] | For the three and nine months ended September 30, 2013, Corning recorded a net loss of $46 million and a net gain of $206 million, respectively, related to its purchased collars and average rate forward contracts. |
Note_19_Reportable_Segments_De1
Note 19 - Reportable Segments (Details) - Reportable Segments (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||||
Segment Reporting Information [Line Items] | ||||||||
Net sales | $2,067 | $2,038 | $5,863 | $5,866 | ||||
Depreciation | 237 | [1] | 243 | [1] | 722 | [1] | 714 | [1] |
Amortization of purchased intangibles | 8 | 4 | 23 | 13 | ||||
Research, development and engineering expenses | 154 | [2] | 149 | [2],[3] | 458 | [2] | 465 | [2],[3] |
Equity in earnings of affiliated companies | 78 | 189 | 334 | 567 | ||||
Income tax (provision) benefit | -160 | -131 | [3] | -445 | -387 | [3] | ||
Net income (loss) | 465 | [4] | 541 | [3],[4] | 1,400 | [4] | 1,511 | [3],[4] |
Display Technologies [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Net sales | 648 | 763 | 1,929 | 2,109 | ||||
Depreciation | 121 | [1] | 123 | [1] | 362 | [1] | 377 | [1] |
Research, development and engineering expenses | 23 | [2] | 24 | [2],[3] | 60 | [2] | 77 | [2],[3] |
Equity in earnings of affiliated companies | 73 | 187 | 314 | 553 | ||||
Income tax (provision) benefit | -86 | -83 | [3] | -250 | -257 | [3] | ||
Net income (loss) | 318 | [4] | 441 | [3],[4] | 1,004 | [4] | 1,235 | [3],[4] |
Telecommunications [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Net sales | 650 | 523 | 1,721 | 1,590 | ||||
Depreciation | 38 | [1] | 34 | [1] | 110 | [1] | 98 | [1] |
Amortization of purchased intangibles | 3 | 2 | 7 | 7 | ||||
Research, development and engineering expenses | 37 | [2] | 35 | [2],[3] | 103 | [2] | 105 | [2],[3] |
Equity in earnings of affiliated companies | 1 | 2 | -1 | |||||
Income tax (provision) benefit | -32 | -17 | [3] | -87 | -46 | [3] | ||
Net income (loss) | 62 | [4] | 35 | [3],[4] | 173 | [4] | 93 | [3],[4] |
Environmental Technologies [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Net sales | 225 | 233 | 681 | 745 | ||||
Depreciation | 30 | [1] | 30 | [1] | 91 | [1] | 87 | [1] |
Research, development and engineering expenses | 23 | [2] | 23 | [2],[3] | 68 | [2] | 75 | [2],[3] |
Equity in earnings of affiliated companies | 1 | 1 | ||||||
Income tax (provision) benefit | -16 | -13 | [3] | -47 | -50 | [3] | ||
Net income (loss) | 32 | [4] | 27 | [3],[4] | 95 | [4] | 102 | [3],[4] |
Specialty Materials [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Net sales | 326 | 363 | 885 | 947 | ||||
Depreciation | 30 | [1] | 40 | [1] | 104 | [1] | 110 | [1] |
Research, development and engineering expenses | 33 | [2] | 27 | [2],[3] | 108 | [2] | 101 | [2],[3] |
Equity in earnings of affiliated companies | 1 | 4 | ||||||
Income tax (provision) benefit | -32 | -29 | [3] | -79 | -57 | [3] | ||
Net income (loss) | 65 | [4] | 59 | [3],[4] | 162 | [4] | 115 | [3],[4] |
Life Sciences [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Net sales | 215 | 155 | 641 | 472 | ||||
Depreciation | 14 | [1] | 11 | [1] | 42 | [1] | 31 | [1] |
Amortization of purchased intangibles | 5 | 2 | 16 | 6 | ||||
Research, development and engineering expenses | 5 | [2] | 5 | [2],[3] | 15 | [2] | 16 | [2],[3] |
Income tax (provision) benefit | -10 | -4 | [3] | -28 | -15 | [3] | ||
Net income (loss) | 20 | [4] | 9 | [3],[4] | 57 | [4] | 32 | [3],[4] |
All Other [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Net sales | 3 | 1 | 6 | 3 | ||||
Depreciation | 4 | [1] | 5 | [1] | 13 | [1] | 11 | [1] |
Research, development and engineering expenses | 33 | [2] | 35 | [2],[3] | 104 | [2] | 91 | [2],[3] |
Equity in earnings of affiliated companies | 4 | 1 | 13 | 14 | ||||
Income tax (provision) benefit | 16 | 15 | [3] | 46 | 38 | [3] | ||
Net income (loss) | ($32) | [4] | ($30) | [3],[4] | ($91) | [4] | ($66) | [3],[4] |
[1] | Depreciation expense for Corning's reportable segments includes an allocation of depreciation of corporate property not specifically identifiable to a segment. | |||||||
[2] | Research, development, and engineering expenses include direct project spending that is identifiable to a segment. | |||||||
[3] | As revised for the change in our method of recognizing pension expense. See Note 1 of Notes to Consolidated Financial Statements for a discussion of the change and the impacts of the change for the three and nine months ended September 30, 2012. | |||||||
[4] | Many of Corning's administrative and staff functions are performed on a centralized basis. Where practicable, Corning charges these expenses to segments based upon the extent to which each business uses a centralized function. Other staff functions, such as corporate finance, human resources and legal, are allocated to segments, primarily as a percentage of sales. |
Note_19_Reportable_Segments_De2
Note 19 - Reportable Segments (Details) - Reconciliation of Reportable Segment Net Income to Consolidated Net Income (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||||
Net Income | $465 | [1] | $541 | [1],[2] | $1,400 | [1] | $1,511 | [1],[2] |
Net financing costs (1) | -3 | [3] | -55 | [3] | -65 | [3] | -139 | [3] |
Stock-based compensation expense | -15 | -16 | -40 | -56 | ||||
Exploratory research | -29 | -27 | -80 | -74 | ||||
Corporate contributions | -7 | -13 | -32 | -36 | ||||
Equity in earnings of affiliated companies, net of impairments (2) | 59 | [4] | 52 | [4] | 142 | [4] | 151 | [4] |
Asbestos settlement (3) | -5 | [5] | -3 | [5] | -13 | [5] | -9 | [5] |
Purchased collars and average rate forward contracts (6) | -46 | [6] | 206 | [6] | ||||
Other corporate items (4)(5) | -11 | [2],[7] | 54 | [2],[7] | 22 | [2],[7] | 133 | [2],[7] |
Net income (4) | 408 | [2] | 533 | [2] | 1,540 | [2] | 1,481 | [2] |
Reportable Segments [Member] | ||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||||
Net Income | 497 | [2] | 571 | [2] | 1,491 | [2] | 1,577 | [2] |
Non Reportable Segments [Member] | ||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||||
Net Income | ($32) | ($30) | ($91) | ($66) | ||||
[1] | Many of Corning's administrative and staff functions are performed on a centralized basis. Where practicable, Corning charges these expenses to segments based upon the extent to which each business uses a centralized function. Other staff functions, such as corporate finance, human resources and legal, are allocated to segments, primarily as a percentage of sales. | |||||||
[2] | As revised for the change in our method of recognizing pension expense. See Note 1 of Notes to Consolidated Financial Statements for a discussion of the change and the impacts of the change for the three and nine months ended September 30, 2012. | |||||||
[3] | Net financing costs include interest income, interest expense, and interest costs and investment gains associated with benefit plans. | |||||||
[4] | Primarily represents the equity earnings of Dow Corning Corporation, which includes gains in the three and nine months ended September 30, 2013 in the amounts of approximately $30 million for the resolution of contract disputes against customers relating to enforcement of long-term supply agreements and $16 million for the positive impact of the settlement of a derivative, along with a charge of $4 million related to the impact of a tax valuation allowance. Also included in the nine months ended September 30, 2013 are restructuring charges in the amount of $11 million. In the three and nine months ended September 30, 2012, Corning recorded a $10 million credit for our share of Dow Corning Corporation's settlement of a dispute related to long-term supply agreements. | |||||||
[5] | In the three and nine months ended September 30, 2013, Corning recorded a charge of $5 million and $13 million, respectively, to adjust the asbestos liability for the change in value of components of the Amended PCC Plan. In the three and nine month ended September 30, 2012, Corning recorded a charge of $3 million and $9 million, respectively, to adjust the asbestos liability for the change in value of components of the Amended PCC Plan. | |||||||
[6] | For the three and nine months ended September 30, 2013, Corning recorded a net loss of $46 million and a net gain of $206 million, respectively, related to its purchased collars and average rate forward contracts. | |||||||
[7] | For the nine months ended September 30, 2013, Corning recorded a $54 million tax benefit for the impact of the American Taxpayer Relief Act enacted on January 3, 2013 and made retroactive to 2012. |
Note_20_Subsequent_Events_Deta
Note 20 - Subsequent Events (Details) (Subsequent Event [Member], Scenario, Plan [Member], USD $) | Oct. 22, 2013 | Oct. 22, 2013 | Oct. 22, 2013 | Oct. 22, 2013 | Dec. 31, 2015 |
Preferred Stock [Member] | Convertible Preferred Stock [Member] | Samsung Corning Precision Materials Co., Ltd. [Member] | Corning Inc. [Member] | ||
Corning Inc. [Member] | Corning Inc. [Member] | Samsung Display Co., Ltd. [Member] | Samsung Display Co., Ltd. [Member] | ||
Samsung Display Co., Ltd. [Member] | Samsung Display Co., Ltd. [Member] | ||||
Note 20 - Subsequent Events (Details) [Line Items] | |||||
Equity Method Investment, Ownership Percentage | 43.00% | ||||
Available-for-sale Securities | $1,900,000,000 | $400,000,000 | |||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 7.40% | ||||
Stock Repurchase Program, Authorized Amount | $2,000,000,000 |