Document_And_Entity_Informatio
Document And Entity Information | 3 Months Ended | |
Mar. 31, 2014 | Apr. 15, 2014 | |
Document and Entity Information [Abstract] | ' | ' |
Entity Registrant Name | 'CORNING INC /NY | ' |
Document Type | '10-Q | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Common Stock, Shares Outstanding | ' | 1,308,476,050 |
Amendment Flag | 'false | ' |
Entity Central Index Key | '0000024741 | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Voluntary Filers | 'No | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Entity Well-known Seasoned Issuer | 'Yes | ' |
Document Period End Date | 31-Mar-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q1 | ' |
Consolidated_Statements_of_Inc
Consolidated Statements of Income (Unaudited) (USD $) | 3 Months Ended | |
In Millions, except Per Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Net sales | $2,289 | $1,814 |
Cost of sales | 1,354 | 1,044 |
Gross margin | 935 | 770 |
Operating expenses: | ' | ' |
Selling, general and administrative expenses | 395 | 259 |
Research, development and engineering expenses | 198 | 178 |
Amortization of purchased intangibles | 8 | 7 |
Restructuring, impairment and other charges (Note 2) | 17 | ' |
Asbestos litigation charge | 2 | 2 |
Operating income | 315 | 324 |
Equity in earnings of affiliated companies | 86 | 173 |
Interest income | 12 | 2 |
Interest expense | -30 | -36 |
Transaction-related gain, net (Note 10) | 74 | ' |
Other income, net (Note 1) | 24 | 65 |
Income before income taxes | 481 | 528 |
Provision for income taxes (Note 5) | -180 | -34 |
Net income attributable to Corning Incorporated | $301 | $494 |
Basic (Note 6) (in Dollars per share) | $0.21 | $0.33 |
Diluted (Note 6) (in Dollars per share) | $0.20 | $0.33 |
Dividends declared per common share (in Dollars per share) | $0.10 | $0.09 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (Unaudited) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Net income attributable to Corning Incorporated | $301 | $494 |
Other comprehensive income (loss), net of tax: | ' | ' |
Foreign currency translation adjustments | -132 | -505 |
Net unrealized gains on investments | 13 | 7 |
Unamortized gains (losses) and prior service costs for postretirement benefit plans | 9 | -1 |
Net unrealized (losses) gains on designated hedges | -4 | 11 |
-114 | -488 | |
Comprehensive income attributable to Corning Incorporated | $187 | $6 |
Consolidated_Balance_Sheets_Un
Consolidated Balance Sheets (Unaudited) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $4,968 | $4,704 |
Short-term investments, at fair value (Note 7) | 644 | 531 |
Total cash, cash equivalents and short-term investments | 5,612 | 5,235 |
Trade accounts receivable, net of doubtful accounts and allowances - $32 and $28 | 1,588 | 1,253 |
Inventories (Note 8) | 1,395 | 1,270 |
Deferred income taxes (Note 5) | 321 | 278 |
Other current assets | 697 | 855 |
Total current assets | 9,613 | 8,891 |
Investments (Note 9) | 1,976 | 5,537 |
Property, net of accumulated depreciation - $8,141 and $7,865 (Note 11) | 13,344 | 9,801 |
Goodwill and other intangible assets, net (Note 12) | 1,665 | 1,542 |
Deferred income taxes (Note 5) | 2,180 | 2,234 |
Other assets | 766 | 473 |
Total Assets | 29,544 | 28,478 |
Current liabilities: | ' | ' |
Current portion of long-term debt (Note 4) | 468 | 21 |
Accounts payable | 732 | 771 |
Other accrued liabilities (Note 3) | 846 | 954 |
Total current liabilities | 2,046 | 1,746 |
Long-term debt (Note 4) | 3,224 | 3,272 |
Postretirement benefits other than pensions | 766 | 766 |
Other liabilities (Note 3) | 1,789 | 1,483 |
Total liabilities | 7,825 | 7,267 |
Commitments and contingencies (Note 3) | ' | ' |
Shareholders’ equity (Note 16): | ' | ' |
Convertible preferred stock, Series A – Par value $100 per share; Shares authorized 3,100; Shares issued: 2,300 | 2,300 | ' |
Common stock – Par value $0.50 per share; Shares authorized 3.8 billion; Shares issued: 1,667 million and 1,661 million | 833 | 831 |
Additional paid-in capital – common stock | 13,072 | 13,066 |
Retained earnings | 11,465 | 11,320 |
Treasury stock, at cost; Shares held: 361 million and 262 million | -5,950 | -4,099 |
Accumulated other comprehensive (loss) income | -70 | 44 |
Total Corning Incorporated shareholders’ equity | 21,650 | 21,162 |
Noncontrolling interests | 69 | 49 |
Total equity | 21,719 | 21,211 |
Total Liabilities and Equity | $29,544 | $28,478 |
Consolidated_Balance_Sheets_Un1
Consolidated Balance Sheets (Unaudited) (Parentheticals) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, except Share data, unless otherwise specified | ||
Doubtful accounts and allowances (in Dollars) | $32 | $28 |
Accumulated depreciation (in Dollars) | $8,141 | $7,865 |
Convertible preferred stock, par value (in Dollars per share) | $100 | ' |
Convertible preferred stock, shares authorized | 3,100 | ' |
Convertible preferred stock, shares issued | 2,300 | ' |
Common stock par value (in Dollars per share) | $0.50 | $0.50 |
Common stock, shares authorized | 3,800,000,000 | 3,800,000,000 |
Common stock, shares issued | 1,667,000,000 | 1,661,000,000 |
Treasury stock, at cost, shares held | 361,000,000 | 262,000,000 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (Unaudited) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Cash Flows from Operating Activities: | ' | ' |
Net income | $301 | $494 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Depreciation | 289 | 248 |
Amortization of purchased intangibles | 8 | 7 |
Restructuring, impairment and other charges | 17 | ' |
Stock compensation charges | 15 | 11 |
Equity in earnings of affiliated companies | -86 | -173 |
Dividends received from affiliated companies | 1,610 | 161 |
Deferred tax expense (benefit) provision | 22 | -30 |
Restructuring payments | -11 | -16 |
Employee benefit payments (in excess of) less than expense | -17 | 15 |
Gains on translated earnings contracts | -2 | -24 |
Changes in certain working capital items: | ' | ' |
Trade accounts receivable | 21 | 17 |
Inventories | -3 | -138 |
Other current assets | 28 | -2 |
Accounts payable and other current liabilities | -413 | -112 |
Other, net | -42 | 165 |
Net cash provided by operating activities | 1,737 | 623 |
Cash Flows from Investing Activities: | ' | ' |
Capital expenditures | -246 | -194 |
Acquisitions of business, net of cash received | 66 | ' |
Investment in unconsolidated entities | -109 | ' |
Short-term investments – acquisitions | -445 | -291 |
Short-term investments – liquidations | 338 | 469 |
Premium on purchased collars | ' | -107 |
Realized gains on translated earnings contracts | 89 | ' |
Other, net | 6 | 1 |
Net cash used in investing activities | -301 | -122 |
Cash Flows from Financing Activities: | ' | ' |
Retirement of long-term debt | ' | -498 |
Net repayments of short-term borrowings and current portion of long-term debt | -8 | -9 |
Principal payments under capital lease obligations | ' | -1 |
Proceeds from issuance of commercial paper | 418 | ' |
Proceeds from issuance of preferred stock | 400 | ' |
Proceeds from the exercise of stock options | 50 | 12 |
Repurchases of common stock for treasury | -1,901 | ' |
Dividends paid | -136 | -133 |
Net cash used in by financing activities | -1,177 | -629 |
Effect of exchange rates on cash | 5 | -63 |
Net increase (decrease) in cash and cash equivalents | 264 | -191 |
Cash and cash equivalents at beginning of period | 4,704 | 4,988 |
Cash and cash equivalents at end of period | $4,968 | $4,797 |
Supplemental_Cash_Flow_Informa
Supplemental Cash Flow Information | 3 Months Ended |
Mar. 31, 2014 | |
Supplemental Cash Flow Elements [Abstract] | ' |
Cash Flow, Supplemental Disclosures [Text Block] | ' |
In the first quarter of 2014, Corning issued 1,900 shares of Preferred Stock to Samsung Display Co., Ltd. in connection with the acquisition of their equity interests in Samsung Corning Precision Materials Co., Ltd. (Note 10). | |
Note_1_Significant_Accounting_
Note 1 - Significant Accounting Policies | 3 Months Ended | |||||
Mar. 31, 2014 | ||||||
Accounting Policies [Abstract] | ' | |||||
Significant Accounting Policies [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, 2013 (“2013 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. | ||||||
Samsung Corning Precision Materials Co., Ltd. (“Samsung Corning Precision Materials”) | ||||||
As further discussed in Note 10 (Acquisition), on January 15, 2014, Corning completed a series of strategic and financial agreements to acquire the common shares of Samsung Corning Precision Materials (“Acquisition”) previously held by Samsung Display Co., Ltd. (“Samsung Display”). As a result of these transactions, Corning is now the owner of 100% of the common shares of Samsung Corning Precision Materials, which we have consolidated into our results beginning in the first quarter of 2014. Operating under the name of Corning Precision Materials Korea Co., Ltd., (“Corning Precision Materials”), the former Samsung Corning Precision Materials organization and operations was integrated into the Display Technologies segment in the first quarter of 2014. | ||||||
Other Income, Net | ||||||
“Other income, net” in Corning’s consolidated statements of income includes the following (in millions): | ||||||
Three months ended | ||||||
March 31, | ||||||
2014 | 2013 | |||||
Royalty income from Samsung Corning Precision Materials | $ | 15 | ||||
Foreign currency exchange and hedge (loss) gain, net | $ | -6 | 31 | |||
Net loss attributable to noncontrolling interests | 3 | 1 | ||||
Other, net | 27 | 18 | ||||
Total | $ | 24 | $ | 65 | ||
Beginning in the first quarter of 2014, due to the Acquisition and subsequent consolidation of Samsung Corning Precision Materials (now Corning Precision Materials), royalty income from Corning Precision Materials is no longer recognized in Corning’s consolidated statement of income. | ||||||
Included in the line item Foreign currency exchange and hedge (loss) gain, net for the three months ended March 31, 2014 and 2013 is the impact of the purchased collars and average forward contracts, which hedge our exposure to movements in the Japanese yen and its impact on our net earnings, in the amount of $2 million and $24 million, respectively. | ||||||
New Accounting Standards | ||||||
At March 31, 2014, there are no recently issued accounting standards that will have a material impact on Corning when adopted in a future period. | ||||||
Note_2_Restructuring_Impairmen
Note 2 - Restructuring, Impairment and Other Charges | 3 Months Ended | |||||||||||
Mar. 31, 2014 | ||||||||||||
Restructuring and Related Activities [Abstract] | ' | |||||||||||
Restructuring and Related Activities Disclosure [Text Block] | ' | |||||||||||
2. Restructuring, Impairment and Other Charges | ||||||||||||
2014 Activity | ||||||||||||
In the first quarter of 2014, we recorded charges of $17 million, pre-tax, for employee related costs and assets impairment charges associated with some minor restructuring activities in the Optical Communications and Specialty Materials segments, with total cash expenditures estimated to be $3 million. Annualized savings from these actions are anticipated to be approximately $5 million and will be reflected primarily in gross margin and operating expenses. | ||||||||||||
To better align our 2014 cost position in several of our businesses, Corning implemented a global restructuring plan within several of our segments in the fourth quarter of 2013, consisting of workforce reductions, asset disposals and write-offs, and exit costs. We recorded charges of $67 million associated with these actions, with total cash expenditures expected to be approximately $40 million. Annualized savings from these actions are estimated to be approximately $40 million and will be reflected largely in selling, general, and administrative expenses. | ||||||||||||
The following table summarizes the restructuring, impairment and other charges for the three months ended March 31, 2014 (in millions): | ||||||||||||
Reserve at | Net | Cash | Reserve at | |||||||||
January 1, | Charges/ | payments | March 31, | |||||||||
2014 | Reversals | 2014 | ||||||||||
Restructuring: | ||||||||||||
Employee related costs | $ | 36 | $ | 3 | $ | -11 | $ | 28 | ||||
Other charges | 8 | 8 | ||||||||||
Total restructuring activity | $ | 44 | $ | 3 | $ | -11 | $ | 36 | ||||
Impairment charges and disposal of long-lived assets | $ | 14 | ||||||||||
Total restructuring, impairment and other charges | $ | 17 | ||||||||||
Cash payments for employee-related costs related to the 2014 and 2013 restructuring actions are expected to be substantially completed in 2014. | ||||||||||||
2013 Activity | ||||||||||||
The following table summarizes the restructuring reserve activity related to the 2012 corporate-wide restructuring plan for the three months ended March 31, 2013 (in millions): | ||||||||||||
Reserve at | Cash | Reserve at | ||||||||||
January 1, | payments | March 31, | ||||||||||
2013 | 2013 | |||||||||||
Restructuring: | ||||||||||||
Employee-related costs | $ | 38 | $ | -15 | $ | 23 | ||||||
Other charges (credits) | 4 | -1 | 3 | |||||||||
Total restructuring activity | $ | 42 | $ | -16 | $ | 26 | ||||||
Cash payments for the above restructuring activities were substantially completed in 2013. | ||||||||||||
Note_3_Commitments_Contingenci
Note 3 - Commitments, Contingencies, and Guarantees | 3 Months Ended |
Mar. 31, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Commitments and Contingencies Disclosure [Text Block] | ' |
3. Commitments, Contingencies, and Guarantees | |
Dow Corning Corporation | |
Corning and The Dow Chemical Company (“Dow”) each own 50% of the common stock of Dow Corning Corporation (“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. The Plan also included releases for Corning and Dow as shareholders in exchange for contributions to the Plan. | |
As a separate matter arising from its 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 March 31, 2014, Dow Corning has estimated the liability to commercial creditors to be within the range of $94 million to $309 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 $94 million, net of applicable tax benefits. There are a number of other claims in the bankruptcy proceedings against Dow Corning awaiting resolution by the U.S. District Court, and it is reasonably possible that Dow Corning may record bankruptcy-related charges in the future. | |
Pittsburgh Corning Corporation and Other Asbestos Litigation | |
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. At the time PCC filed for bankruptcy protection, there were approximately 11,800 claims pending against Corning in state court lawsuits alleging various theories of liability based on exposure to PCC’s asbestos products and typically requesting monetary damages in excess of one million dollars per claim. Corning has defended those claims on the basis of the separate corporate status of PCC and the absence of any facts supporting claims of direct liability arising from PCC’s asbestos products. | |
PCC Plan of Reorganization | |
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 courts and parties. On November 12, 2013, the Bankruptcy Court issued a decision finally confirming an Amended PCC Plan of Reorganization (the “Amended PCC Plan” or the “Plan”). | |
Under this Plan, Corning is required to contribute its equity interests in PCC and Pittsburgh Corning Europe N.V. (“PCE”), a Belgian corporation, and to contribute $290 million in a fixed series of payments, recorded at present value. Corning has the option to use its shares rather than cash to make these payments, but the liability is fixed by dollar value and not the number of shares. The Plan requires Corning to make: (1) one payment of $70 million one year from the date the Plan becomes effective and certain conditions are met; and (2) five additional payments of $35 million, $50 million, $35 million, $50 million, and $50 million, respectively, on each of the five subsequent anniversaries of the first payment, the final payment of which is subject to reduction based on the application of credits under certain circumstances. | |
The Bankruptcy Court’s confirmation of the Plan must be affirmed by the District Court, and one objector to the Plan continues to appeal the Bankruptcy Court’s confirmation of the Plan to the District Court. Assuming the District Court affirms the confirmation, that decision may be appealed. If that occurs, it could take many months for the confirmation of the Plan to be finally affirmed. | |
Other Asbestos Litigation | |
In addition to the claims against Corning related to its ownership interest in PCC, Corning is also the defendant in approximately 9,700 other cases (approximately 37,400 claims) alleging injuries from asbestos related to its Corhart business and similar amounts of monetary damages per case. When PCC filed for bankruptcy protection, the Court granted a preliminary injunction to suspend all asbestos cases against PCC, PPG and Corning – including these non-PCC asbestos cases (the “stay”). The stay remains in place as of the date of this filing. Under the Bankruptcy Court’s order confirming the Amended PCC Plan, the stay will remain in place until the Amended PCC Plan is finally affirmed. These non-PCC asbestos cases have been covered by insurance without material impact to Corning to date. As of March 31, 2014, Corning had received for these cases approximately $19 million in insurance payments related to those claims. If and when the Bankruptcy Court’s confirmation of the Amended PCC Plan is affirmed, these non-PCC asbestos claims would be allowed to proceed against Corning. Corning has recorded in its estimated asbestos litigation liability an additional $150 million for these and any future non-PCC asbestos cases. | |
Total Estimated Liability for the Amended PCC Plan and the Other Asbestos Litigation | |
The liability for the Amended PCC Plan and the other asbestos litigation was estimated to be $692 million at March 31, 2014, compared with an estimate of liability of $690 million at December 31, 2013. The entire obligation is classified as a non-current liability as installment payments for the cash portion of the obligation under the Amended PCC Plan are not scheduled to commence until more than 12 months after the 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). | |
Non-PCC Asbestos Cases Insurance Litigation | |
Several of Corning’s insurers have commenced litigation in state courts for a declaration of the rights and obligations of the parties under insurance policies affecting the non-PCC asbestos cases, including rights that may be affected by the potential resolutions described above. Corning is vigorously contesting these cases, and management is unable to predict the outcome of the litigation. | |
Other Commitments and Contingencies | |
We are required, at the time a guarantee is issued, to recognize a liability for the fair value or market value of the obligation it assumes. 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. | |
As of March 31, 2014 and December 31, 2013, contingent guarantees totaled a notional value of $174 million and $152 million, respectively. We believe a significant majority of these contingent guarantees will expire without being funded. Included in these contingent guarantees is a credit facility of $25 million to 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 also were contingently liable for purchase obligations of $123 million and $126 million, at March 31, 2014 and December 31, 2013, respectively. | |
Product warranty liability accruals were considered insignificant at March 31, 2014 and December 31, 2013. | |
Corning is a defendant in various lawsuits, including environmental litigation, product-related suits, 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. Other than certain asbestos related claims, there are no other material loss contingencies related to litigation. | |
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. It is Corning’s policy to accrue 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 March 31, 2014, and December 31, 2013, Corning had accrued approximately $34 million (undiscounted) and $15 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 | 3 Months Ended |
Mar. 31, 2014 | |
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 $3.5 billion at March 31, 2014 and December 31, 2013, compared to recorded book values of $3.2 billion at March 31, 2014 and $3.3 billion at December 31, 2013. 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. | |
2014 | |
At March 31, 2014, Corning had $418 million in outstanding commercial paper as part of the Company’s commercial paper program established in the second quarter of 2013. The estimated fair value of this commercial paper approximates its carrying value due to the short-term maturities. | |
2013 | |
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 March 31, 2014, we were in compliance with this covenant. | |
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. | |
Note_5_Income_Taxes
Note 5 - Income Taxes | 3 Months Ended | |||||
Mar. 31, 2014 | ||||||
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 | ||||||
March 31, | ||||||
2014 | 2013 | |||||
Provision for income taxes | $ | -180 | $ | -34 | ||
Effective tax rate | 37.40% | 6.40% | ||||
For the three months ended March 31, 2014, the effective income tax rate differed from the U.S. statutory rate of 35% primarily due to the following benefits: | ||||||
· | Rate differences on income (loss) of consolidated foreign companies, including the benefit of excess foreign tax credits attributable to a deemed distribution to the U.S. of a portion of foreign current year earnings; | |||||
· | Equity in earnings of nonconsolidated affiliates reported in the financials net of tax; and | |||||
· | Tax incentives in foreign jurisdictions, primarily Taiwan. | |||||
These benefits were more than offset principally by a discrete tax charge in the first quarter of 2014 in the amount of $102 million related to South Korean withholding tax on a dividend paid by Samsung Corning Precision Materials to Corning wholly owned foreign subsidiaries. | ||||||
For the three months ended March 31, 2013, the effective income tax rate differed from the U.S. statutory rate of 35% primarily due to the following benefits: | ||||||
· | Rate differences on income (loss) of consolidated foreign companies; | |||||
· | Equity in earnings of nonconsolidated affiliates reported in the financials net of tax; | |||||
· | $54 million to record the impact of the American Taxpayer Relief Act enacted on January 3, 2013 retroactive to 2012; and | |||||
· | 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 1.2 and 1.5 percentage points for the three months ended March 31, 2014 and 2013, respectively. | ||||||
Corning continues to indefinitely reinvest substantially all of its foreign earnings, with the exception of approximately $7 million of current earnings in 2014 that have very low or no tax cost associated with their repatriation. 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 or the development of tax planning ideas that allow us to repatriate earnings at little or no tax cost, 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 | 3 Months Ended | |||||
Mar. 31, 2014 | ||||||
Earnings Per Share [Abstract] | ' | |||||
Earnings Per Share [Text Block] | ' | |||||
6. Earnings per Common Share | ||||||
The following table sets forth the computation of basic and diluted earnings per common share (in millions, except per share amounts): | ||||||
Three months ended | ||||||
March 31, | ||||||
2014 | 2013 | |||||
Net income attributable to Corning Incorporated | $ | 301 | $ | 494 | ||
Less: Series A convertible preferred stock dividend | -21 | |||||
Net income available to common stockholders - basic | 280 | 494 | ||||
Net income available to common stockholders - diluted | $ | 280 | $ | 494 | ||
Weighted-average common shares outstanding - basic | 1,359 | 1,472 | ||||
Effect of dilutive securities: | ||||||
Stock options and other dilutive securities | 11 | 9 | ||||
Weighted-average common shares outstanding - diluted | 1,370 | 1,481 | ||||
Basic earnings per common share | $ | 0.21 | $ | 0.33 | ||
Diluted earnings per common share | $ | 0.20 | $ | 0.33 | ||
Antidilutive potential shares excluded from diluted earnings per common share: | ||||||
Series A convertible preferred stock | 97 | |||||
Employee stock options and awards | 29 | 47 | ||||
Accelerated share repurchase forward contract | 12 | |||||
Total | 138 | 47 | ||||
Note_7_AvailableforSale_Invest
Note 7 - Available-for-Sale Investments | 3 Months Ended | |||||||||||||
Mar. 31, 2014 | ||||||||||||||
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 | |||||||||||||
March 31, | December 31, | March 31, | December 31, | |||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||
Bonds, notes and other securities: | ||||||||||||||
U.S. government and agencies | $ | 637 | $ | 530 | $ | 637 | $ | 531 | ||||||
Equity securities | $ | 6 | $ | 7 | ||||||||||
Total short-term investments | $ | 643 | $ | 530 | $ | 644 | $ | 531 | ||||||
Asset-backed securities | $ | 45 | $ | 46 | $ | 40 | $ | 38 | ||||||
Total long-term investments | $ | 45 | $ | 46 | $ | 40 | $ | 38 | ||||||
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 contractual maturities of available-for-sale securities at March 31, 2014 (in millions): | ||||||||||||||
Less than one year | $468 | |||||||||||||
Due in 1-5 years | 169 | |||||||||||||
Due in 5-10 years | ||||||||||||||
Due after 10 years (1) | 40 | |||||||||||||
Total | $677 | |||||||||||||
-1 | Includes $40 million of asset-based 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 March 31, 2014 and December 31, 2013 (dollars in millions): | ||||||||||||||
March 31, 2014 | ||||||||||||||
12 months or greater | Total | |||||||||||||
Number of | Fair | Unrealized | Fair | Unrealized | ||||||||||
securities | value | losses (1) | value | losses | ||||||||||
in a loss | ||||||||||||||
position | ||||||||||||||
Asset-backed securities | 20 | $ | 39 | $ | -5 | $ | 39 | $ | -5 | |||||
Total long-term investments | 20 | $ | 39 | $ | -5 | $ | 39 | $ | -5 | |||||
-1 | Unrealized losses in securities less than 12 months were not significant. | |||||||||||||
December 31, 2013 | ||||||||||||||
12 months or greater | Total | |||||||||||||
Number of | Fair | Unrealized | Fair | Unrealized | ||||||||||
securities | value | losses (1) | value | losses | ||||||||||
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. | |||||||||||||
As of March 31, 2014 and December 31, 2013, for securities that have credit losses, an other than temporary impairment loss of $4 and $6 million, respectively, is recognized in accumulated other comprehensive (loss) income. | ||||||||||||||
Proceeds from sales and maturities of short-term investments totaled approximately $0.3 billion and $0.5 billion for the three months ended March 31, 2014 and 2013, respectively. | ||||||||||||||
Note_8_Inventories
Note 8 - Inventories | 3 Months Ended | |||||
Mar. 31, 2014 | ||||||
Inventory Disclosure [Abstract] | ' | |||||
Inventory Disclosure [Text Block] | ' | |||||
8. Inventories | ||||||
Inventories comprise the following (in millions): | ||||||
March 31, | December 31, | |||||
2014 | 2013 | |||||
Finished goods | $ | 535 | $ | 486 | ||
Work in process | 238 | 234 | ||||
Raw materials and accessories | 317 | 311 | ||||
Supplies and packing materials | 305 | 239 | ||||
Total inventories | $ | 1,395 | $ | 1,270 | ||
Note_9_Investments
Note 9 - Investments | 3 Months Ended |
Mar. 31, 2014 | |
Equity Method Investments and Joint Ventures [Abstract] | ' |
Equity Method Investments and Joint Ventures Disclosure [Text Block] | ' |
9. Investments | |
Samsung Corning Precision Materials | |
Prior to December 2013, Corning owned 50% of its equity affiliate, Samsung Corning Precision Materials, Samsung Display owned 42.5% and three shareholders owned the remaining 7%. In the fourth quarter of 2013, in connection with a series of strategic and financial agreements with Samsung Display announced in October 2013, Corning acquired the minority interests of three shareholders in Samsung Corning Precision Materials for $506 million, which included payment for the transfer of non-operating assets and the pro-rata portion of cash on the Samsung Corning Precision Materials balance sheet at September 30, 2013. The resulting transfer of shares to Corning increased Corning’s ownership percentage of Samsung Corning Precision Materials from 50% to 57%. Because this transaction did not result in a change in control based on the governing articles of this entity, Corning did not consolidate this entity as of December 31, 2013. | |
As further discussed in Note 10 (Acquisition), on January 15, 2014, Corning completed the series of strategic and financial agreements to acquire the common shares of Samsung Corning Precision Materials previously held by Samsung Display. As a result of these transactions, Corning is now the owner of 100% of the common shares of Samsung Corning Precision Materials, which we have consolidated into our results beginning in the first quarter of 2014. Operating under the name of Corning Precision Materials, the former Samsung Corning Precision Materials organization and operations was integrated into the Display Technologies segment in the first quarter of 2014. | |
Dow Corning Corporation (“Dow Corning”) | |
Summarized income statement information for Dow Corning is as follows for the three months ended March 31, 2014 and prior year comparative period: net sales $1,524 million (2013: $1,264 million), gross profit $483 million (2013: $324 million) and net income attributable to Dow Corning $191 million (2013: $62 million). Dow Corning’s net income in the first quarter of 2014 includes a pre-tax gain on a derivative instrument of $99 million (after tax and non-controlling interests, Corning’s share was approximately $32 million). | |
Note_10_Acquisition
Note 10 - Acquisition | 3 Months Ended | ||
Mar. 31, 2014 | |||
Business Combinations [Abstract] | ' | ||
Business Combination Disclosure [Text Block] | ' | ||
10. Acquisition | |||
On January 15, 2014, Corning entered into a series of strategic and financial agreements pursuant to the Framework Agreement with Samsung Display, previously announced on October 22, 2013, to acquire the remaining common shares of Samsung Corning Precision Materials. The transaction is expected to strengthen product and technology collaborations between the two companies and allow Corning to extend its leadership in specialty glass and drive earnings growth. | |||
The Acquisition was accounted for under the purchase method of accounting in accordance with business combination accounting guidance. Accordingly, the preliminary purchase price was allocated to the assets acquired and liabilities assumed based on their fair value on the date of Acquisition. The fair value was determined based on the fair value of consideration transferred for the 42.5% of Samsung Display’s shares. Corning recognized a gain in the amount of $394 million in current period earnings, which was calculated from the pre-acquisition fair value of its previously held equity investment. | |||
The following table summarizes the consideration transferred to acquire Samsung Corning Precision Materials, as well as the fair value of the non-controlling interest in Samsung Corning Precision Materials at the acquisition date. | |||
Fair Value of Samsung Corning Precision Materials on Acquisition Date (in millions): | |||
Corning Preferred Shares | $ | 1,911 | |
Settlement of pre-existing contract | -136 | ||
Contingent consideration | -196 | ||
Total consideration transferred | 1,579 | ||
Fair value of equity investment | 2,139 | ||
Total | $ | 3,718 | |
In connection with the purchase of Samsung Display’s equity interest in Samsung Corning Precision Materials pursuant to the Framework Agreement, the Company designated a new series of its preferred stock as Fixed Rate Cumulative Convertible Preferred Stock, Series A, par value $100 per share (“Preferred Stock”). As contemplated by the Framework Agreement, Samsung Display became the owner of 2,300 shares of Preferred Stock (with an issue price of $1 million per share), of which 1,900 shares were issued in connection with the Acquisition and 400 shares were issued for cash. | |||
Corning issued 1,900 Preferred Shares as consideration in the Acquisition of Samsung Corning Precision Materials which had a fair value of $1.9 billion on the acquisition date. The fair value was determined using an option pricing model based on the features of the instrument. That measure is based on Level 2 inputs observable in the market such as Corning’s common stock price and dividend yield. | |||
At Acquisition, in addition to the $394 million gain on our previously held equity investment, the Company also recorded the effective settlement of a pre-existing contract with Samsung Corning Precision Materials related to a technology license agreement. The contract was valued using the Income Approach, specifically a relief from royalty method. As a result, a loss of $320 million was recorded in the first quarter of 2014. | |||
The Acquisition also includes a contingent consideration arrangement that potentially requires additional consideration to be paid between the parties in 2018: one based on projections of future revenues generated by the business of Samsung Corning Precision Materials for the period between acquisition date and December 31, 2017, which is subject to a cap of $665 million; and another based on the volumes of certain sales during the same period, which is subject to a separate cap of $100 million. The fair value of the potential receipt of the contingent consideration in 2018 in the amount of $196 million recognized on the acquisition date was estimated by applying an option pricing model using the Company’s projections of future revenues generated by Corning Precision Materials. | |||
As of March 31, 2014, there were no significant changes in the recognized amounts or range of outcomes for the contingent consideration recognized as a result of the Acquisition of Samsung Corning Precision Materials. | |||
The following table summarizes the amounts of identified assets acquired and liabilities assumed at acquisition date. Corning has not completed its accounting for the Acquisition and its review of deferred taxes; therefore, amounts are subject to change. | |||
Recognized amounts of identified assets acquired and liabilities assumed (in millions): | |||
Cash and cash equivalents (1) | $ | 133 | |
Trade Receivables | 353 | ||
Inventory | 119 | ||
Property, plant and equipment | 3,603 | ||
Other current and non-current assets | 80 | ||
Debt – current | -32 | ||
Accounts payable and accrued expenses | -343 | ||
Other current and non-current liabilities | -278 | ||
Total identified net assets | 3,635 | ||
Non-controlling interests | 15 | ||
Fair value of Samsung Corning Precision Materials on acquisition date | -3,718 | ||
Goodwill (2) | $ | 68 | |
-1 | Cash and cash equivalents acquired is presented net of the 2014 dividend distribution subsequent to the Acquisition, in the amount of $2.8 billion. | ||
-2 | The goodwill recognized is not deductible for U.S. income tax purposes. The goodwill was allocated to the Display segment. | ||
The goodwill is primarily attributable to the workforce of the acquired business and the synergies expected to arise after the Acquisition of Samsung Corning Precision Materials. Acquisition-related costs of $90 million in the three months ended March 31, 2014 included costs for post combination compensation expense, legal, accounting, valuation and other professional services and were included in selling, general and administrative expenses in the Consolidated Statements of Income. In the first quarter of 2014, the consolidation of Corning Precision Materials added $428 million to Net sales and $113 million to Net income attributable to Corning Incorporated. | |||
Unaudited Pro Forma Financial Information | |||
The unaudited pro forma combined consolidated statement of income for the quarter ended March 31, 2013, was derived from the unaudited financial statements of Corning and Samsung Corning Precision Materials for the quarter ended March 31, 2013, and is presented to show how Corning might have looked had the Acquisition occurred as of January 1, 2013. | |||
The unaudited pro forma combined consolidated financial information was prepared pursuant to the rules and regulations of the Securities and Exchange Commission. The unaudited pro forma adjustments reflecting the Acquisition have been prepared in accordance with the business combination accounting guidance and reflect the preliminary allocation of the purchase price to the acquired assets and liabilities based upon the preliminary estimate of fair values, using the assumptions set forth above. | |||
(in millions, except per share data) | Three months | ||
ended | |||
March 31, 2013 | |||
Net sales | $ | 2,388 | |
Net income from continuing operations - basic | $ | 620 | |
Net income from continuing operations - diluted | $ | 644 | |
Earnings per common share attributable to common shareholders | |||
Basic | $ | 0.42 | |
Diluted | $ | 0.4 | |
Shares used in computing per share amounts | |||
Basic | 1,472 | ||
Diluted | 1,596 | ||
There were no other significant acquisitions for the three months ended March 31, 2014, and for the year ended December 31, 2013. | |||
Note_11_Property_Net_of_Accumu
Note 11 - Property, Net of Accumulated Depreciation | 3 Months Ended | |||||
Mar. 31, 2014 | ||||||
Property, Plant and Equipment [Abstract] | ' | |||||
Property, Plant and Equipment Disclosure [Text Block] | ' | |||||
11. Property, Net of Accumulated Depreciation | ||||||
Property, net of accumulated depreciation follows (in millions): | ||||||
March 31, | December 31, | |||||
2014 | 2013 | |||||
Land | $ | 496 | $ | 121 | ||
Buildings | 5,619 | 4,175 | ||||
Equipment | 13,683 | 12,286 | ||||
Construction in progress | 1,687 | 1,084 | ||||
21,485 | 17,666 | |||||
Accumulated depreciation | -8,141 | -7,865 | ||||
Total | $ | 13,344 | $ | 9,801 | ||
The increase in Property, net of accumulated depreciation, in the first quarter of 2014 is entirely driven by the Acquisition of Samsung Corning Precision Materials, which added $3.6 billion to this balance. | ||||||
In the three months ended March 31, 2014 and 2013, interest costs capitalized as part of Property, net of accumulated depreciation, were $10 million and $9 million, respectively. | ||||||
Manufacturing equipment includes certain components of production equipment that are constructed of precious metals. At March 31, 2014 and December 31, 2013, the recorded value of precious metals each totaled $3.3 billion and $2.2 billion, respectively. Depletion expense for precious metals in the three months ended March 31, 2014 and 2013 totaled $8 million and $6 million, respectively. The consolidation of Corning Precision Materials added approximately $1.1 billion in precious metals and approximately $2 million of depletion expense in the first quarter of 2014. | ||||||
Note_12_Goodwill_and_Other_Int
Note 12 - Goodwill and Other Intangible Assets | 3 Months Ended | |||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||
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 March 31, 2014 and December 31, 2013 is as follows (in millions): | ||||||||||||||||||
Optical | Display | Specialty | Life | Total | ||||||||||||||
Communications | Technologies | Materials | Sciences | |||||||||||||||
Balance at December 31, 2013 | $ | 240 | $ | 9 | $ | 150 | $ | 603 | $ | 1,002 | ||||||||
Acquired goodwill (1) | 68 | 54 | 122 | |||||||||||||||
Foreign currency translation adjustment | 1 | 1 | ||||||||||||||||
Balance at March 31, 2014 | $ | 240 | $ | 77 | $ | 204 | $ | 604 | $ | 1,125 | ||||||||
(1) | The Company recorded the acquisition of Samsung Corning Precision Materials and a small acquisition in the Specialty Materials segment in the first quarter of 2014. Refer to Note 10 (Acquisition) to the Consolidated Financial Statements for additional information on the Acquisition of Samsung Corning Precision Materials. | |||||||||||||||||
Corning’s gross goodwill balances for the periods ended March 31, 2014 and December 31, 2013 were $7.6 billion and $7.5 billion, respectively. Accumulated impairment losses were $6.5 billion for the periods ended March 31, 2014 and December 31, 2013, and were generated entirely through goodwill impairments related to the Optical Communications segment recorded primarily in 2001. | ||||||||||||||||||
Other intangible assets are as follows (in millions): | ||||||||||||||||||
March 31, 2014 | December 31, 2013 | |||||||||||||||||
Gross | Accumulated | Net | Gross | Accumulated | Net | |||||||||||||
amortization | amortization | |||||||||||||||||
Amortized intangible assets: | ||||||||||||||||||
Patents, trademarks, and trade names | $ | 307 | $ | 141 | $ | 166 | $ | 290 | $ | 138 | $ | 152 | ||||||
Customer lists and other | 427 | 53 | 374 | 436 | 48 | 388 | ||||||||||||
Total | $ | 734 | $ | 194 | $ | 540 | $ | 726 | $ | 186 | $ | 540 | ||||||
Corning’s amortized intangible assets are primarily related to the Optical Communications and Life Sciences segments. The net carrying amount of intangible assets remained the same during the first three months of 2014, primarily due to amortization of $8 million offset by a small acquisition and foreign currency translation adjustments. | ||||||||||||||||||
Amortization expense related to these intangible assets is estimated to be $34 million for 2014, $33 million for 2015 and $32 million annually from 2016 to 2019. | ||||||||||||||||||
Note_13_Employee_Retirement_Pl
Note 13 - Employee Retirement Plans | 3 Months Ended | |||||||||||
Mar. 31, 2014 | ||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | |||||||||||
Pension and Other Postretirement Benefits Disclosure [Text Block] | ' | |||||||||||
13. Employee Retirement Plans | ||||||||||||
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 | Three months ended | |||||||||||
March 31, | March 31, | |||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||
Service cost | $ | 16 | $ | 19 | $ | 3 | $ | 4 | ||||
Interest cost | 38 | 34 | 9 | 10 | ||||||||
Expected return on plan assets | -43 | -42 | ||||||||||
Amortization of net loss | 4 | |||||||||||
Amortization of prior service cost (credit) | 2 | 1 | -1 | -2 | ||||||||
Total pension and postretirement benefit expense | $ | 13 | $ | 12 | $ | 11 | $ | 16 | ||||
Note_14_Hedging_Activities
Note 14 - Hedging Activities | 3 Months Ended | |||||||||||||||
Mar. 31, 2014 | ||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | |||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Text Block] | ' | |||||||||||||||
14. Hedging Activities | ||||||||||||||||
Undesignated Hedges | ||||||||||||||||
The table below includes a total gross notional value for the translated earnings contracts of $11.6 billion at March 31, 2014 (at December 31, 2013: $6.8 billion), comprising purchased collars of $4.5 billion (at December 31, 2013: $5.9 billion) and average rate forwards of $7.1 billion (at December 31, 2013: $0.9 billion). With respect to the purchased collars, the gross notional amount includes the value of both the put and call options. However, due to the nature of the purchased collar instruments, either the put or the call option can be exercised at maturity. As of March 31, 2014, the total net notional value of the purchased collars was $2 billion (at December 31, 2013: $3 billion). | ||||||||||||||||
The following tables summarize the notional amounts and respective fair values of Corning’s derivative financial instruments on a gross basis for March 31, 2014 and December 31, 2013 (in millions): | ||||||||||||||||
U.S. Dollar | Asset derivatives | Liability derivatives | ||||||||||||||
Gross notional amount | Balance | Fair value | Balance | Fair value | ||||||||||||
2014 | 2013 | sheet location | 2014 | 2013 | sheet location | 2014 | 2013 | |||||||||
Derivatives designated as hedging instruments | ||||||||||||||||
Foreign exchange contracts | $ 388 | $ 433 | Other current assets | $ 2 | $ 8 | Other accrued liabilities | $ (3) | $ (3) | ||||||||
Interest rate contracts | $ 550 | $ 550 | Other liabilities | ($23) | ($28) | |||||||||||
Derivatives not designated as hedging instruments | ||||||||||||||||
Foreign exchange contracts | $ 1,100 | $ 804 | Other current assets | $ 9 | $ 20 | Other accrued liabilities | $ (4) | $ (3) | ||||||||
Translated earnings contracts | $11,615 | $6,826 | Other current assets | $248 | $344 | Other accrued liabilities | $ (1) | $ (3) | ||||||||
Other assets | $120 | $ 90 | ||||||||||||||
Total derivatives | $13,653 | $8,613 | $379 | $462 | ($31) | ($37) | ||||||||||
The following tables summarize the effect of derivative financial instruments on Corning’s consolidated financial statements for the three months ended March 31, 2014 and 2013 (in millions): | ||||||||||||||||
Effect of derivative instruments on the consolidated financial statements | ||||||||||||||||
for the quarter ended March 31 | ||||||||||||||||
Derivatives in hedging relationships | Gain/(loss) | Location of gain/(loss) | Gain reclassified from | |||||||||||||
recognized in other | reclassified from | accumulated OCI into | ||||||||||||||
comprehensive income | accumulated OCI into | income (effective) (1) | ||||||||||||||
(OCI) | income (effective) | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Interest rate hedges | Cost of sales | $0 | $ 8 | |||||||||||||
Foreign exchange contracts | ($7) | $37 | Other income, net | $0 | $13 | |||||||||||
Total cash flow hedges | ($7) | $37 | $0 | $21 | ||||||||||||
-1 | The amount of hedge ineffectiveness at March 31, 2014 and 2013 was insignificant. | |||||||||||||||
Gain (loss) recognized in income (1) | ||||||||||||||||
Undesignated | Location | 2014 | 2013 | |||||||||||||
derivatives | ||||||||||||||||
Foreign exchange contracts – balance sheet | Other income, net | $ | -12 | $ | 47 | |||||||||||
Foreign exchange contracts – loans | Other income, net | 4 | 58 | |||||||||||||
Translated earnings contracts | Other income, net | 2 | 24 | |||||||||||||
Total undesignated | $ | -6 | $ | 129 | ||||||||||||
-1 | Certain amounts for prior periods were reclassified to conform to the current presentation. The gain (loss) on foreign exchange contracts is now disclosed in two categories, Foreign exchange contracts – balance sheet, and Foreign exchange contracts – loans. | |||||||||||||||
Note_15_Fair_Value_Measurement
Note 15 - Fair Value Measurements | 3 Months Ended | |||||||||||
Mar. 31, 2014 | ||||||||||||
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 other accounting pronouncements that require or permit fair value measurement and require the use of observable market data when available. | ||||||||||||
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 | ||||||||||||
March 31, | Quoted prices in | Significant other | Significant | |||||||||
2014 | active markets for | observable | unobservable | |||||||||
identical assets | inputs | inputs | ||||||||||
(Level 1) | (Level 2) | (Level 3) | ||||||||||
Current assets: | ||||||||||||
Short-term investments | $ | 644 | $ | 644 | ||||||||
Other current assets (1) | $ | 259 | $ | 259 | ||||||||
Non-current assets: | ||||||||||||
Other assets (1)(2) | $ | 160 | $ | 160 | ||||||||
Current liabilities: | ||||||||||||
Other accrued liabilities (1) | $ | 8 | $ | 8 | ||||||||
Non-current liabilities: | ||||||||||||
Other liabilities (1) | $ | 23 | $ | 23 | ||||||||
-1 | Derivative assets and liabilities include foreign exchange forward and purchased collar contracts, and interest rate swaps 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 | |||||||||
2013 | active markets for | observable | unobservable | |||||||||
identical assets | inputs | inputs | ||||||||||
(Level 1) | (Level 2) | (Level 3) | ||||||||||
Current assets: | ||||||||||||
Short-term investments | $ | 531 | $ | 531 | ||||||||
Other current assets (1) | $ | 372 | $ | 372 | ||||||||
Non-current assets: | ||||||||||||
Other assets (1)(2) | $ | 128 | $ | 128 | ||||||||
Current liabilities: | ||||||||||||
Other accrued liabilities (1) | $ | 9 | $ | 9 | ||||||||
Non-current liabilities: | ||||||||||||
Other liabilities (1) | $ | 28 | $ | 28 | ||||||||
-1 | Derivative assets and liabilities include foreign exchange forward and purchased collar contracts, and interest rate swaps 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. | |||||||||||
As a result of the Acquisition of Samsung Corning Precision Materials, the Company has contingent consideration that was measured using unobservable (Level 3) inputs. This contingent consideration arrangement potentially requires additional consideration to be paid between the parties in 2018: one based on projections of future revenues generated by the business of Samsung Corning Precision Materials for the period between acquisition date and December 31, 2017, which is subject to a cap of $665 million; and another based on the volumes of certain sales during the same period, which is subject to a separate cap of $100 million. The fair value of the potential receipt of the contingent consideration in 2018 in the amount of $196 million recognized on the acquisition date was estimated by applying an option pricing model using the Company’s projection of future revenues generated by Corning Precision Materials. Changes in the fair value of the contingent consideration in future periods will be valued using an option pricing model and will be recorded in Corning’s results in the period of the change. As of March 31, 2014, there were no significant changes in the recognized amounts or range of outcomes for the contingent consideration recognized as a result of the Acquisition of Samsung Corning Precision Materials. As of December 31, 2013, the Company did not have any financial assets or liabilities that were measured on a recurring basis using unobservable (or Level 3) inputs. | ||||||||||||
Note_16_Shareholders_Equity
Note 16 - Shareholders' Equity | 3 Months Ended |
Mar. 31, 2014 | |
Stockholders' Equity Note [Abstract] | ' |
Stockholders' Equity Note Disclosure [Text Block] | ' |
16. Shareholders’ Equity | |
Fixed Rate Cumulative Convertible Preferred Stock, Series A | |
On January 15, 2014, Corning designated a new series of its preferred stock as Fixed Rate Cumulative Convertible Preferred Stock, Series A, par value $100 per share, and issued 1,900 shares of Preferred Stock at an issue price of $1 million per share, for an aggregate issue price of $1.9 billion, to Samsung Display in connection with the Acquisition of their equity interests in Samsung Corning Precision Materials. Corning also issued to Samsung Display an additional amount of Preferred Stock at closing, for an aggregate issue price of $400 million in cash. | |
Dividends on the Preferred Stock are cumulative and accrue at the annual rate of 4.25% on the per share issue price of $1 million. The dividends are payable quarterly as and when declared by the Company’s board of directors. The Preferred Stock ranks senior to our common stock with respect to payment of dividends and rights upon liquidation. The Preferred Stock is not redeemable except in the case of a certain deemed liquidation event, the occurrence of which is under the control of the Company. The Preferred Stock is convertible at the option of the holder and the Company upon certain events, at a conversion rate of 50,000 shares of Corning’s common stock per one share of Preferred Stock, subject to certain anti-dilution provisions. Following the seventh anniversary of the closing of the Acquisition, the Preferred Stock will be convertible, in whole or in part, at the option of the holder. The Company has the right, at its option, to cause some or all of the shares of Preferred Stock to be converted into Common Stock, if, for 25 trading days (whether or not consecutive) within any period of 40 consecutive trading days, the closing price of Common Stock exceeds $35 per share. If the aforementioned right becomes exercisable before the seventh anniversary of the closing, the Company must first obtain the written approval of the holders of a majority of the Preferred Stock before exercising its conversion right. The Preferred Stock does not have any voting rights except as may be required by law. | |
Share Repurchases | |
On October 31, 2013, as part of the previously authorized share repurchase program announced on April 24, 2013, Corning entered into an accelerated share repurchase (“ASR”) agreement with JP Morgan Chase Bank, National Association, London Branch (“JPMC”). Under the ASR agreement with JPMC, Corning agreed to purchase $1 billion of its common stock, in total, with an initial delivery by JPMC of 47.1 million shares based on the current market price, and payment of $1 billion made by Corning to JPMC. The payment to JPMC was recorded as a reduction to shareholders’ equity, consisting of an $800 million increase in treasury stock, which reflects the value of the initial 47.1 million shares received upon execution, and a $200 million decrease in other-paid-in capital, which reflects the value of the stock held back by JPMC pending final settlement. On January 28, 2014, the ASR agreement with JPMC was completed. Corning received an additional 10.5 million shares on January 31, 2014 to settle the ASR agreement. In total, Corning purchased 57.6 million shares based on the average daily volume weighted-average price of Corning’s common stock during the term of the ASR agreement with JPMC, less a discount. The program announced on April 24, 2013 was finalized in the first quarter of 2014. | |
On March 3, 2014, as part of the $2.0 billion share repurchase program announced on October 22, 2013 and made effective concurrent with the closing of Corning’s Acquisition of Samsung Corning Precision Materials on January 15, 2014, Corning entered into an ASR agreement with Citibank N.A. (“Citi”). Under the ASR agreement with Citi, Corning agreed to purchase $1.25 billion of its common stock, in total, with an initial delivery by Citi of 52.5 million shares based on the current market price, and payment of $1.25 billion made by Corning to Citi. The payment to Citi was recorded as a reduction to shareholders’ equity, consisting of a $1.0 billion increase in treasury stock, which reflects the value of the initial 52.5 million shares received upon execution, and a $250 million decrease in other-paid-in capital, which reflects the value of the stock held back by Citi pending final settlement. The ASR agreement with Citi is expected to be completed in the second quarter of 2014. | |
In addition to the ASR agreements, during the first quarter of 2014, we repurchased 26.7 million shares of common stock on the open market for approximately $484 million as part of the share repurchase program announced on April 24, 2013, and 8.7 million shares of common stock on the open market for approximately $167 million as part of the share repurchase program made effective on January 15, 2014. | |
Accumulated Other Comprehensive Income | |
In the first three months of 2014 and 2013, the primary changes in accumulated other comprehensive income (“AOCI”) were related to the foreign currency translation component. In the first three months of 2014, a $136 million cumulative foreign currency translation gain was released to income as a result of the step acquisition of Samsung Corning Precision Materials and included in the gain on previously held equity investment. In the first three months of 2013, foreign currency translation losses of $505 million were recognized in AOCI (Corning: $329 million; equity method affiliates: $176 million). There are no material tax effects related to foreign currency translation gain and losses. | |
Note_17_Sharebased_Compensatio
Note 17 - Share-based Compensation | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
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 $11 million for the three months ended March 31, 2014 and 2013, respectively. Amounts for all periods presented included compensation expense for employee stock options and time-based restricted stock and restricted stock units. | ||||||||
Stock Options | ||||||||
Corning’s 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 three months ended March 31, 2014: | ||||||||
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, 2013 | 57,139 | $17.83 | ||||||
Granted | 528 | 20.80 | ||||||
Exercised | (4,571) | 11.75 | ||||||
Forfeited and Expired | (161) | 15.85 | ||||||
Options Outstanding as of March 31, 2014 | 52,935 | 18.39 | 4.95 | $201,401 | ||||
Options Expected to Vest as of March 31, 2014 | 52,817 | 18.40 | 4.95 | 200,454 | ||||
Options Exercisable as of March 31, 2014 | 40,470 | 19.78 | 3.9 | 114,511 | ||||
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 March 31, 2014, 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 March 31, 2014, there was approximately $17 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 $6 million and $5 million for the three months ended March 31, 2014 and 2013, respectively. | ||||||||
Proceeds received from the exercise of stock options were $50 million and $12 million for the three months ended March 31, 2014 and 2013, 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 three months ended March 31, 2014 and 2013 was approximately $32 million and $13 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 March 31, | ||||||||
2014 | 2013 | |||||||
Expected volatility | 46.2 | - | 46.20% | 47.1 | - | 47.40% | ||
Weighted-average volatility | 46.2 | - | 46.20% | 47.1 | - | 47.40% | ||
Expected dividends | 2.09 | - | 2.09% | 3.02 | - | 3.02% | ||
Risk-free rate | 2.2 | - | 2.20% | 1.1 | - | 1.50% | ||
Average risk-free rate | 2.2 | - | 2.20% | 1.4 | - | 1.40% | ||
Expected term (in years) | 7.2 | - | 7.2 | 5.8 | - | 7.2 | ||
Pre-vesting departure rate | 0.5 | - | 0.50% | 0.4 | - | 4.10% | ||
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 Plan 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, 2013, and changes which occurred during the three months ended March 31, 2014: | ||||||||
Shares | Weighted | |||||||
(000’s) | Average | |||||||
Grant-Date | ||||||||
Fair Value | ||||||||
Non-vested shares and share units at December 31, 2013 | 6,108 | $ | 14.58 | |||||
Granted | 1,270 | 20.28 | ||||||
Vested | -1,011 | 18.57 | ||||||
Forfeited | -7 | 14.91 | ||||||
Non-vested shares and share units at March 31, 2014 | 6,360 | $ | 15.08 | |||||
As of March 31, 2014, there was approximately $44 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 $9 million and $6 million for the three months ended March 31, 2014 and 2013, respectively. | ||||||||
Note_18_Significant_Customers
Note 18 - Significant Customers | 3 Months Ended |
Mar. 31, 2014 | |
Significant Customers [Abstract] | ' |
Significant Customers [Text Block] | ' |
18. Significant Customers | |
For the three months ended March 31, 2014, Corning had one customer that individually accounted for 10% or more of the Company’s consolidated net sales. For the three months ended March 31, 2013, Corning had no customers that individually accounted for 10% or more of the Company’s consolidated net sales. | |
Note_19_Reportable_Segments
Note 19 - Reportable Segments | 3 Months Ended | |||||||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||||||
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. | |||||||||||||||||||||
· | Optical Communications – manufactures carrier network and enterprise network 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 | Optical | Environmental | Specialty | Life | All | Total | ||||||||||||||||
Technologies | Communications | Technologies | Materials | Sciences | Other | |||||||||||||||||
Three months ended | ||||||||||||||||||||||
March 31, 2014 | ||||||||||||||||||||||
Net sales | $ | 929 | $ | 593 | $ | 275 | $ | 261 | $ | 210 | $ | 21 | $ | 2,289 | ||||||||
Depreciation (1) | $ | 173 | $ | 36 | $ | 30 | $ | 27 | $ | 15 | $ | 5 | $ | 286 | ||||||||
Amortization of purchased intangibles | $ | 2 | $ | 6 | $ | 8 | ||||||||||||||||
Research, development and engineering expenses (2) | $ | 45 | $ | 37 | $ | 21 | $ | 33 | $ | 5 | $ | 28 | $ | 169 | ||||||||
Restructuring, impairment and other charges | $ | 5 | $ | 12 | $ | 17 | ||||||||||||||||
Equity in earnings of affiliated companies | $ | -9 | $ | 1 | $ | 2 | $ | -6 | ||||||||||||||
Income tax (provision) benefit | $ | -198 | $ | -19 | $ | -21 | $ | -16 | $ | -8 | $ | 16 | $ | -246 | ||||||||
Net income (loss) (3) | $ | 209 | $ | 27 | $ | 43 | $ | 31 | $ | 17 | $ | -40 | $ | 287 | ||||||||
Three months ended | ||||||||||||||||||||||
March 31, 2013 | ||||||||||||||||||||||
Net sales | $ | 650 | $ | 470 | $ | 228 | $ | 258 | $ | 207 | $ | 1 | $ | 1,814 | ||||||||
Depreciation (1) | $ | 124 | $ | 34 | $ | 31 | $ | 39 | $ | 14 | $ | 4 | $ | 246 | ||||||||
Amortization of purchased intangibles | $ | 2 | $ | 5 | $ | 7 | ||||||||||||||||
Research, development and engineering expenses (2) | $ | 19 | $ | 35 | $ | 23 | $ | 35 | $ | 5 | $ | 36 | $ | 153 | ||||||||
Equity in earnings of affiliated companies | $ | 133 | $ | 1 | $ | 5 | $ | 139 | ||||||||||||||
Income tax (provision) benefit | $ | -80 | $ | -17 | $ | -13 | $ | -19 | $ | -5 | $ | 15 | $ | -119 | ||||||||
Net income (loss) (3) | $ | 349 | $ | 35 | $ | 27 | $ | 39 | $ | 12 | $ | -28 | $ | 434 | ||||||||
-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. | |||||||||||||||||||||
A reconciliation of reportable segment net income to consolidated net income follows (in millions): | ||||||||||||||||||||||
Three months ended | ||||||||||||||||||||||
March 31, | ||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||
Net income of reportable segments | $ | 327 | $ | 462 | ||||||||||||||||||
Non-reportable segments | -40 | -28 | ||||||||||||||||||||
Unallocated amounts: | ||||||||||||||||||||||
Net financing costs (1) | -29 | -34 | ||||||||||||||||||||
Stock-based compensation expense | -15 | -11 | ||||||||||||||||||||
Exploratory research | -27 | -24 | ||||||||||||||||||||
Corporate contributions | -5 | -13 | ||||||||||||||||||||
Equity in earnings of affiliated companies, net of impairments (2) | 92 | 34 | ||||||||||||||||||||
Asbestos settlement | -2 | -2 | ||||||||||||||||||||
Purchased collars and average forward contracts | 2 | 24 | ||||||||||||||||||||
Other corporate items (3) | -2 | 86 | ||||||||||||||||||||
Net income | $ | 301 | $ | 494 | ||||||||||||||||||
-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, which includes our portion of a mark-to-market gain on a derivative instrument, totaling $32 million, for the three months ended March 31, 2014 and a $2 million restructuring charge for our share of costs for headcount reductions and asset write-offs for the three months ended March 31, 2013. | |||||||||||||||||||||
-3 | For the three months ended March 31, 2013, Corning recorded a $54 million tax benefit for the impact of the American Taxpayer Relief Act enacted on January 3, 2013 retroactive to 2012. | |||||||||||||||||||||
The sales of each of our reportable segments are concentrated across a relatively small number of customers. In the first quarter of 2014, 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 72% of total segment sales. | |||||||||||||||||||||
· | In the Optical Communications segment, no customer accounted for 10% of total segment sales. | |||||||||||||||||||||
· | In the Environmental Technologies segment, three customers accounted for 88% of total segment sales. | |||||||||||||||||||||
· | In the Specialty Materials segment, three customers accounted for 50% of total segment sales. | |||||||||||||||||||||
· | In the Life Sciences segment, two customers accounted for 43% 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. | ||||||||||||||||||||||
Accounting_Policies_by_Policy_
Accounting Policies, by Policy (Policies) | 3 Months Ended | |||||
Mar. 31, 2014 | ||||||
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, 2013 (“2013 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. | ||||||
Business Combinations Policy [Policy Text Block] | ' | |||||
Samsung Corning Precision Materials Co., Ltd. (“Samsung Corning Precision Materials”) | ||||||
As further discussed in Note 10 (Acquisition), on January 15, 2014, Corning completed a series of strategic and financial agreements to acquire the common shares of Samsung Corning Precision Materials (“Acquisition”) previously held by Samsung Display Co., Ltd. (“Samsung Display”). As a result of these transactions, Corning is now the owner of 100% of the common shares of Samsung Corning Precision Materials, which we have consolidated into our results beginning in the first quarter of 2014. Operating under the name of Corning Precision Materials Korea Co., Ltd., (“Corning Precision Materials”), the former Samsung Corning Precision Materials organization and operations was integrated into the Display Technologies segment in the first quarter of 2014 | ||||||
Other Income and Other Expense Disclosure [Text Block] | ' | |||||
Other Income, Net | ||||||
“Other income, net” in Corning’s consolidated statements of income includes the following (in millions): | ||||||
Three months ended | ||||||
March 31, | ||||||
2014 | 2013 | |||||
Royalty income from Samsung Corning Precision Materials | $ | 15 | ||||
Foreign currency exchange and hedge (loss) gain, net | $ | -6 | 31 | |||
Net loss attributable to noncontrolling interests | 3 | 1 | ||||
Other, net | 27 | 18 | ||||
Total | $ | 24 | $ | 65 | ||
Beginning in the first quarter of 2014, due to the Acquisition and subsequent consolidation of Samsung Corning Precision Materials (now Corning Precision Materials), royalty income from Corning Precision Materials is no longer recognized in Corning’s consolidated statement of income. | ||||||
Included in the line item Foreign currency exchange and hedge (loss) gain, net for the three months ended March 31, 2014 and 2013 is the impact of the purchased collars and average forward contracts, which hedge our exposure to movements in the Japanese yen and its impact on our net earnings, in the amount of $2 million and $24 million, respectively. | ||||||
New Accounting Pronouncements, Policy [Policy Text Block] | ' | |||||
New Accounting Standards | ||||||
At March 31, 2014, there are no recently issued accounting standards that will have a material impact on Corning when adopted in a future period. |
Note_1_Significant_Accounting_1
Note 1 - Significant Accounting Policies (Tables) | 3 Months Ended | |||||
Mar. 31, 2014 | ||||||
Accounting Policies [Abstract] | ' | |||||
Schedule of Other Nonoperating Income, by Component [Table Text Block] | ' | |||||
Three months ended | ||||||
March 31, | ||||||
2014 | 2013 | |||||
Royalty income from Samsung Corning Precision Materials | $ | 15 | ||||
Foreign currency exchange and hedge (loss) gain, net | $ | -6 | 31 | |||
Net loss attributable to noncontrolling interests | 3 | 1 | ||||
Other, net | 27 | 18 | ||||
Total | $ | 24 | $ | 65 |
Note_2_Restructuring_Impairmen1
Note 2 - Restructuring, Impairment and Other Charges (Tables) | 3 Months Ended | ||||||||||||||||||||
Mar. 31, 2014 | Mar. 31, 2013 | ||||||||||||||||||||
Restructuring and Related Activities [Abstract] | ' | ' | |||||||||||||||||||
Schedule of Restructuring Reserve by Type of Cost [Table Text Block] | ' | ' | |||||||||||||||||||
Reserve at | Net | Cash | Reserve at | Reserve at | Cash | Reserve at | |||||||||||||||
January 1, | Charges/ | payments | March 31, | January 1, | payments | March 31, | |||||||||||||||
2014 | Reversals | 2014 | 2013 | 2013 | |||||||||||||||||
Restructuring: | Restructuring: | ||||||||||||||||||||
Employee related costs | $ | 36 | $ | 3 | $ | -11 | $ | 28 | Employee-related costs | $ | 38 | $ | -15 | $ | 23 | ||||||
Other charges | 8 | 8 | Other charges (credits) | 4 | -1 | 3 | |||||||||||||||
Total restructuring activity | $ | 44 | $ | 3 | $ | -11 | $ | 36 | Total restructuring activity | $ | 42 | $ | -16 | $ | 26 | ||||||
Impairment charges and disposal of long-lived assets | $ | 14 | |||||||||||||||||||
Total restructuring, impairment and other charges | $ | 17 |
Note_5_Income_Taxes_Tables
Note 5 - Income Taxes (Tables) | 3 Months Ended | |||||
Mar. 31, 2014 | ||||||
Income Tax Disclosure [Abstract] | ' | |||||
Schedule of Income Tax Provisions and Rates [Table Text Block] | ' | |||||
Three months ended | ||||||
March 31, | ||||||
2014 | 2013 | |||||
Provision for income taxes | $ | -180 | $ | -34 | ||
Effective tax rate | 37.40% | 6.40% |
Note_6_Earnings_Per_Common_Sha1
Note 6 - Earnings Per Common Share (Tables) | 3 Months Ended | |||||
Mar. 31, 2014 | ||||||
Earnings Per Share [Abstract] | ' | |||||
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | ' | |||||
Three months ended | ||||||
March 31, | ||||||
2014 | 2013 | |||||
Net income attributable to Corning Incorporated | $ | 301 | $ | 494 | ||
Less: Series A convertible preferred stock dividend | -21 | |||||
Net income available to common stockholders - basic | 280 | 494 | ||||
Net income available to common stockholders - diluted | $ | 280 | $ | 494 | ||
Weighted-average common shares outstanding - basic | 1,359 | 1,472 | ||||
Effect of dilutive securities: | ||||||
Stock options and other dilutive securities | 11 | 9 | ||||
Weighted-average common shares outstanding - diluted | 1,370 | 1,481 | ||||
Basic earnings per common share | $ | 0.21 | $ | 0.33 | ||
Diluted earnings per common share | $ | 0.20 | $ | 0.33 | ||
Antidilutive potential shares excluded from diluted earnings per common share: | ||||||
Series A convertible preferred stock | 97 | |||||
Employee stock options and awards | 29 | 47 | ||||
Accelerated share repurchase forward contract | 12 | |||||
Total | 138 | 47 |
Note_7_AvailableforSale_Invest1
Note 7 - Available-for-Sale Investments (Tables) | 3 Months Ended | |||||||||||||
Mar. 31, 2014 | ||||||||||||||
Available For Sale Investments [Abstract] | ' | |||||||||||||
Schedule of Available-for-sale Securities Reconciliation [Table Text Block] | ' | |||||||||||||
Amortized cost | Fair value | |||||||||||||
March 31, | December 31, | March 31, | December 31, | |||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||
Bonds, notes and other securities: | ||||||||||||||
U.S. government and agencies | $ | 637 | $ | 530 | $ | 637 | $ | 531 | ||||||
Equity securities | $ | 6 | $ | 7 | ||||||||||
Total short-term investments | $ | 643 | $ | 530 | $ | 644 | $ | 531 | ||||||
Asset-backed securities | $ | 45 | $ | 46 | $ | 40 | $ | 38 | ||||||
Total long-term investments | $ | 45 | $ | 46 | $ | 40 | $ | 38 | ||||||
Investments Classified by Contractual Maturity Date [Table Text Block] | ' | |||||||||||||
Less than one year | $468 | |||||||||||||
Due in 1-5 years | 169 | |||||||||||||
Due in 5-10 years | ||||||||||||||
Due after 10 years (1) | 40 | |||||||||||||
Total | $677 | |||||||||||||
Schedule of Fair Value and Gross Unrealized Losses of Investments by Category and Length of Time in Continuous Unrealized Loss Position [Table Text Block] | ' | |||||||||||||
March 31, 2014 | ||||||||||||||
12 months or greater | Total | |||||||||||||
Number of | Fair | Unrealized | Fair | Unrealized | ||||||||||
securities | value | losses (1) | value | losses | ||||||||||
in a loss | ||||||||||||||
position | ||||||||||||||
Asset-backed securities | 20 | $ | 39 | $ | -5 | $ | 39 | $ | -5 | |||||
Total long-term investments | 20 | $ | 39 | $ | -5 | $ | 39 | $ | -5 | |||||
December 31, 2013 | ||||||||||||||
12 months or greater | Total | |||||||||||||
Number of | Fair | Unrealized | Fair | Unrealized | ||||||||||
securities | value | losses (1) | value | losses | ||||||||||
in a loss | ||||||||||||||
position | ||||||||||||||
Asset-backed securities | 20 | $ | 38 | $ | -8 | $ | 38 | $ | -8 | |||||
Total long-term investments | 20 | $ | 38 | $ | -8 | $ | 38 | $ | -8 |
Note_8_Inventories_Tables
Note 8 - Inventories (Tables) | 3 Months Ended | |||||
Mar. 31, 2014 | ||||||
Inventory Disclosure [Abstract] | ' | |||||
Schedule of Inventory, Current [Table Text Block] | ' | |||||
March 31, | December 31, | |||||
2014 | 2013 | |||||
Finished goods | $ | 535 | $ | 486 | ||
Work in process | 238 | 234 | ||||
Raw materials and accessories | 317 | 311 | ||||
Supplies and packing materials | 305 | 239 | ||||
Total inventories | $ | 1,395 | $ | 1,270 |
Note_10_Acquisition_Tables
Note 10 - Acquisition (Tables) | 3 Months Ended | ||
Mar. 31, 2014 | |||
Business Combinations [Abstract] | ' | ||
Schedule of Business Acquisitions, by Acquisition [Table Text Block] | ' | ||
Corning Preferred Shares | $ | 1,911 | |
Settlement of pre-existing contract | -136 | ||
Contingent consideration | -196 | ||
Total consideration transferred | 1,579 | ||
Fair value of equity investment | 2,139 | ||
Total | $ | 3,718 | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | ' | ||
Cash and cash equivalents (1) | $ | 133 | |
Trade Receivables | 353 | ||
Inventory | 119 | ||
Property, plant and equipment | 3,603 | ||
Other current and non-current assets | 80 | ||
Debt – current | -32 | ||
Accounts payable and accrued expenses | -343 | ||
Other current and non-current liabilities | -278 | ||
Total identified net assets | 3,635 | ||
Non-controlling interests | 15 | ||
Fair value of Samsung Corning Precision Materials on acquisition date | -3,718 | ||
Goodwill (2) | $ | 68 | |
Business Acquisition, Pro Forma Information [Table Text Block] | ' | ||
(in millions, except per share data) | Three months | ||
ended | |||
March 31, 2013 | |||
Net sales | $ | 2,388 | |
Net income from continuing operations - basic | $ | 620 | |
Net income from continuing operations - diluted | $ | 644 | |
Earnings per common share attributable to common shareholders | |||
Basic | $ | 0.42 | |
Diluted | $ | 0.4 | |
Shares used in computing per share amounts | |||
Basic | 1,472 | ||
Diluted | 1,596 |
Note_11_Property_Net_of_Accumu1
Note 11 - Property, Net of Accumulated Depreciation (Tables) | 3 Months Ended | |||||
Mar. 31, 2014 | ||||||
Property, Plant and Equipment [Abstract] | ' | |||||
Property, Plant and Equipment [Table Text Block] | ' | |||||
March 31, | December 31, | |||||
2014 | 2013 | |||||
Land | $ | 496 | $ | 121 | ||
Buildings | 5,619 | 4,175 | ||||
Equipment | 13,683 | 12,286 | ||||
Construction in progress | 1,687 | 1,084 | ||||
21,485 | 17,666 | |||||
Accumulated depreciation | -8,141 | -7,865 | ||||
Total | $ | 13,344 | $ | 9,801 |
Note_12_Goodwill_and_Other_Int1
Note 12 - Goodwill and Other Intangible Assets (Tables) | 3 Months Ended | |||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||||||||
Schedule of Goodwill [Table Text Block] | ' | |||||||||||||||||
Optical | Display | Specialty | Life | Total | ||||||||||||||
Communications | Technologies | Materials | Sciences | |||||||||||||||
Balance at December 31, 2013 | $ | 240 | $ | 9 | $ | 150 | $ | 603 | $ | 1,002 | ||||||||
Acquired goodwill (1) | 68 | 54 | 122 | |||||||||||||||
Foreign currency translation adjustment | 1 | 1 | ||||||||||||||||
Balance at March 31, 2014 | $ | 240 | $ | 77 | $ | 204 | $ | 604 | $ | 1,125 | ||||||||
Schedule of Finite-Lived Intangible Assets [Table Text Block] | ' | |||||||||||||||||
March 31, 2014 | December 31, 2013 | |||||||||||||||||
Gross | Accumulated | Net | Gross | Accumulated | Net | |||||||||||||
amortization | amortization | |||||||||||||||||
Amortized intangible assets: | ||||||||||||||||||
Patents, trademarks, and trade names | $ | 307 | $ | 141 | $ | 166 | $ | 290 | $ | 138 | $ | 152 | ||||||
Customer lists and other | 427 | 53 | 374 | 436 | 48 | 388 | ||||||||||||
Total | $ | 734 | $ | 194 | $ | 540 | $ | 726 | $ | 186 | $ | 540 |
Note_13_Employee_Retirement_Pl1
Note 13 - Employee Retirement Plans (Tables) | 3 Months Ended | |||||||||||
Mar. 31, 2014 | ||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | |||||||||||
Schedule of Net Benefit Costs [Table Text Block] | ' | |||||||||||
Pension benefits | Postretirement benefits | |||||||||||
Three months ended | Three months ended | |||||||||||
March 31, | March 31, | |||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||
Service cost | $ | 16 | $ | 19 | $ | 3 | $ | 4 | ||||
Interest cost | 38 | 34 | 9 | 10 | ||||||||
Expected return on plan assets | -43 | -42 | ||||||||||
Amortization of net loss | 4 | |||||||||||
Amortization of prior service cost (credit) | 2 | 1 | -1 | -2 | ||||||||
Total pension and postretirement benefit expense | $ | 13 | $ | 12 | $ | 11 | $ | 16 |
Note_14_Hedging_Activities_Tab
Note 14 - Hedging Activities (Tables) | 3 Months Ended | |||||||||||||||
Mar. 31, 2014 | ||||||||||||||||
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 | ||||||||||||
2014 | 2013 | sheet location | 2014 | 2013 | sheet location | 2014 | 2013 | |||||||||
Derivatives designated as hedging instruments | ||||||||||||||||
Foreign exchange contracts | $ 388 | $ 433 | Other current assets | $ 2 | $ 8 | Other accrued liabilities | $ (3) | $ (3) | ||||||||
Interest rate contracts | $ 550 | $ 550 | Other liabilities | ($23) | ($28) | |||||||||||
Derivatives not designated as hedging instruments | ||||||||||||||||
Foreign exchange contracts | $ 1,100 | $ 804 | Other current assets | $ 9 | $ 20 | Other accrued liabilities | $ (4) | $ (3) | ||||||||
Translated earnings contracts | $11,615 | $6,826 | Other current assets | $248 | $344 | Other accrued liabilities | $ (1) | $ (3) | ||||||||
Other assets | $120 | $ 90 | ||||||||||||||
Total derivatives | $13,653 | $8,613 | $379 | $462 | ($31) | ($37) | ||||||||||
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 quarter ended March 31 | ||||||||||||||||
Derivatives in hedging relationships | Gain/(loss) | Location of gain/(loss) | Gain reclassified from | |||||||||||||
recognized in other | reclassified from | accumulated OCI into | ||||||||||||||
comprehensive income | accumulated OCI into | income (effective) (1) | ||||||||||||||
(OCI) | income (effective) | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Interest rate hedges | Cost of sales | $0 | $ 8 | |||||||||||||
Foreign exchange contracts | ($7) | $37 | Other income, net | $0 | $13 | |||||||||||
Total cash flow hedges | ($7) | $37 | $0 | $21 | ||||||||||||
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] | ' | |||||||||||||||
Gain (loss) recognized in income (1) | ||||||||||||||||
Undesignated | Location | 2014 | 2013 | |||||||||||||
derivatives | ||||||||||||||||
Foreign exchange contracts – balance sheet | Other income, net | $ | -12 | $ | 47 | |||||||||||
Foreign exchange contracts – loans | Other income, net | 4 | 58 | |||||||||||||
Translated earnings contracts | Other income, net | 2 | 24 | |||||||||||||
Total undesignated | $ | -6 | $ | 129 |
Note_15_Fair_Value_Measurement1
Note 15 - Fair Value Measurements (Tables) | 3 Months Ended | |||||||||||
Mar. 31, 2014 | ||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | ' | |||||||||||
Fair value measurements at reporting date using | ||||||||||||
March 31, | Quoted prices in | Significant other | Significant | |||||||||
2014 | active markets for | observable | unobservable | |||||||||
identical assets | inputs | inputs | ||||||||||
(Level 1) | (Level 2) | (Level 3) | ||||||||||
Current assets: | ||||||||||||
Short-term investments | $ | 644 | $ | 644 | ||||||||
Other current assets (1) | $ | 259 | $ | 259 | ||||||||
Non-current assets: | ||||||||||||
Other assets (1)(2) | $ | 160 | $ | 160 | ||||||||
Current liabilities: | ||||||||||||
Other accrued liabilities (1) | $ | 8 | $ | 8 | ||||||||
Non-current liabilities: | ||||||||||||
Other liabilities (1) | $ | 23 | $ | 23 | ||||||||
Fair value measurements at reporting date using | ||||||||||||
December 31, | 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 | $ | 531 | $ | 531 | ||||||||
Other current assets (1) | $ | 372 | $ | 372 | ||||||||
Non-current assets: | ||||||||||||
Other assets (1)(2) | $ | 128 | $ | 128 | ||||||||
Current liabilities: | ||||||||||||
Other accrued liabilities (1) | $ | 9 | $ | 9 | ||||||||
Non-current liabilities: | ||||||||||||
Other liabilities (1) | $ | 28 | $ | 28 |
Note_17_Sharebased_Compensatio1
Note 17 - Share-based Compensation (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
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, 2013 | 57,139 | $17.83 | ||||||
Granted | 528 | 20.80 | ||||||
Exercised | (4,571) | 11.75 | ||||||
Forfeited and Expired | (161) | 15.85 | ||||||
Options Outstanding as of March 31, 2014 | 52,935 | 18.39 | 4.95 | $201,401 | ||||
Options Expected to Vest as of March 31, 2014 | 52,817 | 18.40 | 4.95 | 200,454 | ||||
Options Exercisable as of March 31, 2014 | 40,470 | 19.78 | 3.9 | 114,511 | ||||
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | ' | |||||||
Three months ended March 31, | ||||||||
2014 | 2013 | |||||||
Expected volatility | 46.2 | - | 46.20% | 47.1 | - | 47.40% | ||
Weighted-average volatility | 46.2 | - | 46.20% | 47.1 | - | 47.40% | ||
Expected dividends | 2.09 | - | 2.09% | 3.02 | - | 3.02% | ||
Risk-free rate | 2.2 | - | 2.20% | 1.1 | - | 1.50% | ||
Average risk-free rate | 2.2 | - | 2.20% | 1.4 | - | 1.40% | ||
Expected term (in years) | 7.2 | - | 7.2 | 5.8 | - | 7.2 | ||
Pre-vesting departure rate | 0.5 | - | 0.50% | 0.4 | - | 4.10% | ||
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, 2013 | 6,108 | $ | 14.58 | |||||
Granted | 1,270 | 20.28 | ||||||
Vested | -1,011 | 18.57 | ||||||
Forfeited | -7 | 14.91 | ||||||
Non-vested shares and share units at March 31, 2014 | 6,360 | $ | 15.08 |
Note_19_Reportable_Segments_Ta
Note 19 - Reportable Segments (Tables) | 3 Months Ended | |||||||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||||||||
Schedule of Segment Reporting Information, by Segment [Table Text Block] | ' | |||||||||||||||||||||
Display | Optical | Environmental | Specialty | Life | All | Total | ||||||||||||||||
Technologies | Communications | Technologies | Materials | Sciences | Other | |||||||||||||||||
Three months ended | ||||||||||||||||||||||
March 31, 2014 | ||||||||||||||||||||||
Net sales | $ | 929 | $ | 593 | $ | 275 | $ | 261 | $ | 210 | $ | 21 | $ | 2,289 | ||||||||
Depreciation (1) | $ | 173 | $ | 36 | $ | 30 | $ | 27 | $ | 15 | $ | 5 | $ | 286 | ||||||||
Amortization of purchased intangibles | $ | 2 | $ | 6 | $ | 8 | ||||||||||||||||
Research, development and engineering expenses (2) | $ | 45 | $ | 37 | $ | 21 | $ | 33 | $ | 5 | $ | 28 | $ | 169 | ||||||||
Restructuring, impairment and other charges | $ | 5 | $ | 12 | $ | 17 | ||||||||||||||||
Equity in earnings of affiliated companies | $ | -9 | $ | 1 | $ | 2 | $ | -6 | ||||||||||||||
Income tax (provision) benefit | $ | -198 | $ | -19 | $ | -21 | $ | -16 | $ | -8 | $ | 16 | $ | -246 | ||||||||
Net income (loss) (3) | $ | 209 | $ | 27 | $ | 43 | $ | 31 | $ | 17 | $ | -40 | $ | 287 | ||||||||
Three months ended | ||||||||||||||||||||||
March 31, 2013 | ||||||||||||||||||||||
Net sales | $ | 650 | $ | 470 | $ | 228 | $ | 258 | $ | 207 | $ | 1 | $ | 1,814 | ||||||||
Depreciation (1) | $ | 124 | $ | 34 | $ | 31 | $ | 39 | $ | 14 | $ | 4 | $ | 246 | ||||||||
Amortization of purchased intangibles | $ | 2 | $ | 5 | $ | 7 | ||||||||||||||||
Research, development and engineering expenses (2) | $ | 19 | $ | 35 | $ | 23 | $ | 35 | $ | 5 | $ | 36 | $ | 153 | ||||||||
Equity in earnings of affiliated companies | $ | 133 | $ | 1 | $ | 5 | $ | 139 | ||||||||||||||
Income tax (provision) benefit | $ | -80 | $ | -17 | $ | -13 | $ | -19 | $ | -5 | $ | 15 | $ | -119 | ||||||||
Net income (loss) (3) | $ | 349 | $ | 35 | $ | 27 | $ | 39 | $ | 12 | $ | -28 | $ | 434 | ||||||||
Reconciliation of Revenue from Segments to Consolidated [Table Text Block] | ' | |||||||||||||||||||||
Three months ended | ||||||||||||||||||||||
March 31, | ||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||
Net income of reportable segments | $ | 327 | $ | 462 | ||||||||||||||||||
Non-reportable segments | -40 | -28 | ||||||||||||||||||||
Unallocated amounts: | ||||||||||||||||||||||
Net financing costs (1) | -29 | -34 | ||||||||||||||||||||
Stock-based compensation expense | -15 | -11 | ||||||||||||||||||||
Exploratory research | -27 | -24 | ||||||||||||||||||||
Corporate contributions | -5 | -13 | ||||||||||||||||||||
Equity in earnings of affiliated companies, net of impairments (2) | 92 | 34 | ||||||||||||||||||||
Asbestos settlement | -2 | -2 | ||||||||||||||||||||
Purchased collars and average forward contracts | 2 | 24 | ||||||||||||||||||||
Other corporate items (3) | -2 | 86 | ||||||||||||||||||||
Net income | $ | 301 | $ | 494 |
Supplemental_Cash_Flow_Informa1
Supplemental Cash Flow Information (Details) (Convertible Preferred Stock, Series A [Member], Samsung Display Co., Ltd. [Member]) | 0 Months Ended | 3 Months Ended |
Jan. 15, 2014 | Mar. 31, 2014 | |
Convertible Preferred Stock, Series A [Member] | Samsung Display Co., Ltd. [Member] | ' | ' |
Supplemental Cash Flow Information (Details) [Line Items] | ' | ' |
Stock Issued During Period, Shares, Acquisitions | 1,900 | 1,900 |
Note_1_Significant_Accounting_2
Note 1 - Significant Accounting Policies (Details) (USD $) | 3 Months Ended | 0 Months Ended | |||
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Jan. 15, 2014 |
Other Income [Member] | Other Income [Member] | Samsung Corning Precision Materials Co., Ltd. [Member] | |||
Foreign Exchange Contract [Member] | Foreign Exchange Contract [Member] | ||||
Note 1 - Significant Accounting Policies (Details) [Line Items] | ' | ' | ' | ' | ' |
Sale of Stock, Percentage of Ownership after Transaction | ' | ' | ' | ' | 100.00% |
Derivative, Gain (Loss) on Derivative, Net | $2 | $24 | $2 | $24 | ' |
Note_1_Significant_Accounting_3
Note 1 - Significant Accounting Policies (Details) - Other Income, Net (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Note 1 - Significant Accounting Policies (Details) - Other Income, Net [Line Items] | ' | ' |
Foreign currency exchange and hedge (loss) gain, net | ($6) | $31 |
Net loss attributable to noncontrolling interests | 3 | 1 |
Other, net | 27 | 18 |
Total | 24 | 65 |
Samsung Corning Precision Materials Co., Ltd. [Member] | ' | ' |
Note 1 - Significant Accounting Policies (Details) - Other Income, Net [Line Items] | ' | ' |
Royalty income from Samsung Corning Precision Materials | ' | $15 |
Note_2_Restructuring_Impairmen2
Note 2 - Restructuring, Impairment and Other Charges (Details) (USD $) | 3 Months Ended | 12 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2014 | Dec. 31, 2013 |
Restructuring and Related Activities [Abstract] | ' | ' |
Restructuring and Related Cost, Incurred Cost | $17 | $67 |
Expected Cash Expenditures for Restructuring Costs | 3 | 40 |
Savings from Restructuring | $5 | $40 |
Note_2_Restructuring_Impairmen3
Note 2 - Restructuring, Impairment and Other Charges (Details) - Restructuring, Impairment and Other Charges (USD $) | 3 Months Ended | ||||||
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 |
Employee Severance [Member] | Employee Severance [Member] | Other Restructuring [Member] | Other Restructuring [Member] | Other Restructuring [Member] | |||
Note 2 - Restructuring, Impairment and Other Charges (Details) - Restructuring, Impairment and Other Charges [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Reserve | $44 | $42 | $36 | $38 | $4 | $8 | $8 |
Net charges/reversals | 3 | ' | 3 | ' | ' | ' | ' |
Cash payments | -11 | -16 | -11 | -15 | -1 | ' | ' |
Reserve | 36 | 26 | 28 | 23 | 3 | 8 | 8 |
Impairment charges and disposal of long-lived assets | 14 | ' | ' | ' | ' | ' | ' |
Total restructuring, impairment and other charges | $17 | ' | ' | ' | ' | ' | ' |
Note_2_Restructuring_Impairmen4
Note 2 - Restructuring, Impairment and Other Charges (Details) - Restructuring Reserve Activity Related to the 2012 Restructuring Plan (USD $) | 3 Months Ended | ||||||
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 |
Employee Severance [Member] | Employee Severance [Member] | Other Restructuring [Member] | Other Restructuring [Member] | Other Restructuring [Member] | |||
Note 2 - Restructuring, Impairment and Other Charges (Details) - Restructuring Reserve Activity Related to the 2012 Restructuring Plan [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Reserve | $44 | $42 | $36 | $38 | $4 | $8 | $8 |
Cash payments | -11 | -16 | -11 | -15 | -1 | ' | ' |
Reserve | $36 | $26 | $28 | $23 | $3 | $8 | $8 |
Note_3_Commitments_Contingenci1
Note 3 - Commitments, Contingencies, and Guarantees (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Nov. 12, 2013 | Nov. 12, 2013 | Nov. 12, 2013 | Nov. 12, 2013 | Nov. 12, 2013 | Nov. 12, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Apr. 16, 2000 | Mar. 31, 2014 | Mar. 31, 2014 | Nov. 12, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | Credit Facility [Member] | Credit Facility [Member] | Contingent Guarantees [Member] | Contingent Guarantees [Member] | First Payment [Member] | First Subsequent Anniversary [Member] | Second Subsequent Anniversary [Member] | Third Subsequent Anniversary [Member] | Fourth Subsequent Anniversary [Member] | Fifth Subsequent Anniversary [Member] | Dow Corning Corporation [Member] | Dow Corning Corporation [Member] | Pittsburgh Corning Corporation (PCC) [Member] | Pittsburgh Corning Corporation (PCC) [Member] | Pittsburgh Corning Corporation (PCC) [Member] | Pittsburgh Corning Corporation (PCC) [Member] | Non-PCC [Member] | Environmental Cleanup And Related Litigation [Member] | Environmental Cleanup And Related Litigation [Member] | Corning Inc. [Member] | Dow Corning Corporation [Member] | Dow Corning Corporation [Member] | Asbestos Litigation [Member] | Asbestos Litigation [Member] | ||
Dow Corning Corporation [Member] | Dow Corning Corporation [Member] | Pittsburgh Corning Corporation (PCC) [Member] | Pittsburgh Corning Corporation (PCC) [Member] | Pittsburgh Corning Corporation (PCC) [Member] | Pittsburgh Corning Corporation (PCC) [Member] | Pittsburgh Corning Corporation (PCC) [Member] | Pittsburgh Corning Corporation (PCC) [Member] | Corning Inc. [Member] | Dow Chemical Company [Member] | Corning Inc. [Member] | Corning Inc. [Member] | PPG Industries, Inc. [Member] | Amended Pittsburgh Corning Corporation Plan [Member] | Asbestos Litigation [Member] | Asbestos Litigation [Member] | Minimum [Member] | Maximum [Member] | |||||||||
Amended Pittsburgh Corning Corporation Plan [Member] | Amended Pittsburgh Corning Corporation Plan [Member] | Amended Pittsburgh Corning Corporation Plan [Member] | Amended Pittsburgh Corning Corporation Plan [Member] | Amended Pittsburgh Corning Corporation Plan [Member] | Amended Pittsburgh Corning Corporation Plan [Member] | Asbestos Litigation [Member] | Asbestos Litigation [Member] | Bankruptcy Proceedings [Member] | Bankruptcy Proceedings [Member] | |||||||||||||||||
Asbestos Litigation [Member] | Asbestos Litigation [Member] | Asbestos Litigation [Member] | Asbestos Litigation [Member] | Asbestos Litigation [Member] | Asbestos Litigation [Member] | |||||||||||||||||||||
Note 3 - Commitments, Contingencies, and Guarantees (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Equity Method Investment, Ownership Percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50.00% | 50.00% | ' | 50.00% | 50.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loss Contingency, Estimate of Possible Loss | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $94 | $309 | $692 | $690 |
Loss Contingency, Pending Claims, Number | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 11,800 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loss Contingency, Required Payments Per Reorganization Plan | ' | ' | ' | ' | ' | ' | 70 | 35 | 50 | 35 | 50 | 50 | ' | ' | ' | ' | ' | 290 | ' | ' | ' | ' | ' | ' | ' | ' |
Number Of Other Cases Currently Involved Alleging Injuries From Asbestos And Similar Amounts Of Monetary Damages Per Case | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 9,700 | ' | ' | ' | ' |
Number Of Claims In Other Cases Currently Involved Alleging Injuries From Asbestos And Similar Amounts Of Monetary Damages Per Case | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 37,400 | ' | ' | ' | ' |
Insurance Recoveries | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 19 | ' | ' | ' | ' |
Loss Contingency Accrual, Period Increase (Decrease) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 150 | ' | ' | ' | ' | ' | ' | ' |
Guarantor Obligations, Maximum Exposure, Undiscounted | ' | ' | 25 | 25 | 174 | 152 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Recorded Unconditional Purchase Obligation | 123 | 126 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of Hazardous Waste Sites | 16 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accrual for Environmental Loss Contingencies | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $34 | $15 | ' | ' | ' | ' | ' |
Note_4_Debt_Details
Note 4 - Debt (Details) | 3 Months Ended | |||||
Mar. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2013 | |
USD ($) | USD ($) | USD ($) | Commercial Paper [Member] | Amended Credit Facility [Member] | Foreign Line of Credit [Member] | |
USD ($) | USD ($) | CNY | ||||
Note 4 - Debt (Details) [Line Items] | ' | ' | ' | ' | ' | ' |
Debt Instrument, Fair Value Disclosure | ' | $3,500,000,000 | $3,500,000,000 | ' | ' | ' |
Long-term Debt and Capital Lease Obligations | ' | 3,224,000,000 | 3,272,000,000 | ' | ' | ' |
Line of Credit Facility, Amount Outstanding | ' | ' | ' | 418,000,000 | ' | ' |
Line of Credit Facility, Maximum Borrowing Capacity | ' | ' | ' | ' | 1,000,000,000 | 4,000,000,000 |
Repayments of Lines of Credit | $500,000,000 | ' | ' | ' | ' | ' |
Note_5_Income_Taxes_Details
Note 5 - Income Taxes (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Note 5 - Income Taxes (Details) [Line Items] | ' | ' |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 35.00% | 35.00% |
Tax Adjustments, Settlements, and Unusual Provisions (in Dollars) | ' | ($54) |
Effective Income Tax Rate Reconciliation, Tax Holiday, Percent | 1.20% | 1.50% |
Korean Withholding Tax [Member] | ' | ' |
Note 5 - Income Taxes (Details) [Line Items] | ' | ' |
Income Tax Expense (Benefit), Continuing Operations, Adjustment for Equity Investment Dividend (in Dollars) | 102 | ' |
Low Or No Tax Cost [Member] | ' | ' |
Note 5 - Income Taxes (Details) [Line Items] | ' | ' |
Undistributed Earnings of Foreign Subsidiaries (in Dollars) | 7 | ' |
Note_5_Income_Taxes_Details_Pr
Note 5 - Income Taxes (Details) - Provision for Income Taxes (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Provision for Income Taxes [Abstract] | ' | ' |
Provision for income taxes | ($180) | ($34) |
Effective tax rate | 37.40% | 6.40% |
Note_6_Earnings_Per_Common_Sha2
Note 6 - Earnings Per Common Share (Details) - Computation of Basic and Diluted Earnings per Common Share (USD $) | 3 Months Ended | |
In Millions, except Per Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Note 6 - Earnings Per Common Share (Details) - Computation of Basic and Diluted Earnings per Common Share [Line Items] | ' | ' |
Net income attributable to Corning Incorporated (in Dollars) | $301 | $494 |
Net income available to common stockholders - basic (in Dollars) | 280 | 494 |
Net income available to common stockholders - diluted (in Dollars) | 280 | 494 |
Weighted-average common shares outstanding - basic | 1,359 | 1,472 |
Effect of dilutive securities: | ' | ' |
Stock options and other dilutive securities | 11 | 9 |
Weighted-average common shares outstanding - diluted | 1,370 | 1,481 |
Basic earnings per common share (in Dollars per share) | $0.21 | $0.33 |
Diluted earnings per common share (in Dollars per share) | $0.20 | $0.33 |
Antidilutive potential shares excluded from diluted earnings per common share: | ' | ' |
Antidilutive shares | 138 | 47 |
Stock Compensation Plan [Member] | ' | ' |
Antidilutive potential shares excluded from diluted earnings per common share: | ' | ' |
Antidilutive shares | 29 | 47 |
Forward Contracts [Member] | ' | ' |
Antidilutive potential shares excluded from diluted earnings per common share: | ' | ' |
Antidilutive shares | 12 | ' |
Convertible Preferred Stock, Series A [Member] | ' | ' |
Note 6 - Earnings Per Common Share (Details) - Computation of Basic and Diluted Earnings per Common Share [Line Items] | ' | ' |
Less: Series A convertible preferred stock dividend (in Dollars) | ($21) | ' |
Antidilutive potential shares excluded from diluted earnings per common share: | ' | ' |
Antidilutive shares | 97 | ' |
Note_7_AvailableforSale_Invest2
Note 7 - Available-for-Sale Investments (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | |
Available For Sale Investments [Abstract] | ' | ' | ' | |
Available-for-sale Securities, Debt Maturities, after Ten Years, Fair Value | $40 | [1] | ' | ' |
Marketable Securities, Realized Loss, Other than Temporary Impairments, Amount | 4 | ' | 6 | |
Proceeds from Sale of Short-term Investments | $338 | $469 | ' | |
[1] | Includes $40 million of asset-based 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 $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
US Government Agencies Debt Securities [Member] | ' | ' |
Bonds, notes and other securities: | ' | ' |
Amortized cost | $637 | $530 |
Fair value | 637 | 531 |
Equity Securities [Member] | ' | ' |
Bonds, notes and other securities: | ' | ' |
Amortized cost | 6 | ' |
Fair value | 7 | ' |
Total Short-Term Investments [Member] | ' | ' |
Bonds, notes and other securities: | ' | ' |
Amortized cost | 643 | 530 |
Fair value | 644 | 531 |
Asset-backed Securities [Member] | ' | ' |
Bonds, notes and other securities: | ' | ' |
Amortized cost | 45 | 46 |
Fair value | 40 | 38 |
Total Long-Term Investments [Member] | ' | ' |
Bonds, notes and other securities: | ' | ' |
Amortized cost | 45 | 46 |
Fair value | $40 | $38 |
Note_7_AvailableforSale_Invest4
Note 7 - Available-for-Sale Investments (Details) - Summary of Maturities of Available-for-Sale Securities (USD $) | Mar. 31, 2014 | |
In Millions, unless otherwise specified | ||
Summary of Maturities of Available-for-Sale Securities [Abstract] | ' | |
Less than one year | $468 | |
Due in 1-5 years | 169 | |
Due in 5-10 years | 0 | |
Due after 10 years (1) | 40 | [1] |
Total | $677 | |
[1] | Includes $40 million of asset-based 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 $) | 3 Months Ended | 12 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2014 | Dec. 31, 2013 | ||
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 | 20 | ||
12 months or Greater, Fair Value | $39 | $38 | ||
12 months or Greater, Unrealized Losses | -5 | [1] | -8 | [1] |
Total, Fair Value | 39 | 38 | ||
Total, Unrealized Losses | ($5) | ($8) | ||
[1] | Unrealized losses in securities less than 12 months were not significant. |
Note_8_Inventories_Details_Inv
Note 8 - Inventories (Details) - Inventories (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Inventories [Abstract] | ' | ' |
Finished goods | $535 | $486 |
Work in process | 238 | 234 |
Raw materials and accessories | 317 | 311 |
Supplies and packing materials | 305 | 239 |
Total inventories | $1,395 | $1,270 |
Note_9_Investments_Details
Note 9 - Investments (Details) (USD $) | Dec. 31, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Oct. 31, 2013 | Sep. 30, 2013 | Jan. 15, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2013 |
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] | 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] |
Corning Inc. [Member] | Corning Inc. [Member] | Samsung Display Co., Ltd. [Member] | Three Minority Shareholders [Member] | Three Minority Shareholders [Member] | Corning Inc. [Member] | ||||
Note 9 - Investments (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Equity Method Investment, Ownership Percentage | 57.00% | 50.00% | 42.50% | ' | 7.00% | ' | 50.00% | ' | ' |
Payments to Noncontrolling Interests | ' | ' | ' | $506 | ' | ' | ' | ' | ' |
Sale of Stock, Percentage of Ownership after Transaction | ' | ' | ' | ' | ' | 100.00% | ' | ' | ' |
Equity Method Investment, Summarized Financial Information, Revenue | ' | ' | ' | ' | ' | ' | ' | 1,524 | 1,264 |
Equity Method Investment, Summarized Financial Information, Gross Profit (Loss) | ' | ' | ' | ' | ' | ' | ' | 483 | 324 |
Equity Method Investment, Summarized Financial Information, Net Income (Loss) | ' | ' | ' | ' | ' | ' | ' | 191 | 62 |
Equity Method Investment, Summarized Financial Information, Derivative, Gain on Derivative | ' | ' | ' | ' | ' | ' | ' | 99 | ' |
Derivative, Gain on Derivative | ' | ' | ' | ' | ' | ' | ' | $32 | ' |
Note_10_Acquisition_Details
Note 10 - Acquisition (Details) (USD $) | Mar. 31, 2014 | Jan. 15, 2014 | Jan. 15, 2014 | Jan. 15, 2014 | Sep. 30, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jan. 15, 2014 | Mar. 31, 2014 | Jan. 15, 2014 | Mar. 31, 2014 | Jan. 15, 2014 |
Revenues Generated by Samsung Corning Precision Materials [Member] | Volume of Certain Sales [Member] | Additional Amount Issued at Closing [Member] | Samsung Corning Precision Materials Co., Ltd. [Member] | Samsung Corning Precision Materials Co., Ltd. [Member] | Samsung Corning Precision Materials Co., Ltd. [Member] | Samsung Corning Precision Materials Co., Ltd. [Member] | Convertible Preferred Stock, Series A [Member] | Convertible Preferred Stock, Series A [Member] | Convertible Preferred Stock, Series A [Member] | Samsung Corning Precision Materials Co., Ltd. [Member] | Samsung Corning Precision Materials Co., Ltd. [Member] | ||
Samsung Corning Precision Materials Co., Ltd. [Member] | Samsung Corning Precision Materials Co., Ltd. [Member] | Convertible Preferred Stock, Series A [Member] | Samsung Display 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] | |||||||||||||
Note 10 - Acquisition (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Equity Method Investment, Ownership Percentage | ' | ' | ' | ' | 42.50% | ' | 57.00% | 50.00% | ' | ' | ' | ' | ' |
Business Combination, Step Acquisition, Equity Interest in Acquiree, Remeasurement Gain | ' | ' | ' | ' | ' | $394,000,000 | ' | ' | ' | ' | ' | ' | ' |
Preferred Stock, Par or Stated Value Per Share (in Dollars per share) | $100 | ' | ' | ' | ' | ' | ' | ' | ' | ' | $100 | ' | ' |
Preferred Stock, Shares Issued (in Shares) | 2,300 | ' | ' | ' | ' | ' | ' | ' | 2,300 | ' | ' | ' | ' |
Share Price (in Dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | $1,000,000 | ' | ' | ' | ' |
Stock Issued During Period, Shares, Acquisitions (in Shares) | ' | ' | ' | ' | ' | ' | ' | ' | 1,900 | 1,900 | ' | ' | ' |
Stock Issued During Period, Shares, New Issues (in Shares) | ' | ' | ' | 400 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock Issued During Period, Value, Acquisitions | ' | ' | ' | ' | ' | ' | ' | ' | 1,900,000,000 | ' | ' | ' | ' |
Settlement of Pre-Existing Customer Relationship | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 320,000,000 | ' |
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High | ' | 665,000,000 | 100,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Business Combination, Contingent Consideration, Liability | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 196,000,000 |
Cash Dividends Paid by Consolidated Subsidiaries | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,800,000,000 | ' |
Business Combination, Acquisition Related Costs | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 90,000,000 | ' |
Business Combination, Increase in Net Sales from Consolidation of the Acquiree | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 428,000,000 | ' |
Business Combination, Increase in Net Income from Consolidation of the Acquiree | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $113,000,000 | ' |
Note_10_Acquisition_Details_Fa
Note 10 - Acquisition (Details) - Fair Value of Consideration Transferred (USD $) | 0 Months Ended |
In Millions, unless otherwise specified | Jan. 15, 2014 |
Fair Value of Consideration Transferred [Abstract] | ' |
Corning Preferred Shares | $1,911 |
Settlement of pre-existing contract | -136 |
Contingent consideration | -196 |
Total consideration transferred | 1,579 |
Fair value of equity investment | 2,139 |
Total | $3,718 |
Note_10_Acquisition_Details_Re
Note 10 - Acquisition (Details) - Recognized Amounts of Identified Assets Acquired and Liabilities Assumed (USD $) | 0 Months Ended | |||
In Millions, unless otherwise specified | Jan. 15, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | |
Note 10 - Acquisition (Details) - Recognized Amounts of Identified Assets Acquired and Liabilities Assumed [Line Items] | ' | ' | ' | |
Fair value of Samsung Corning Precision Materials on acquisition date | ($3,718) | ' | ' | |
Goodwill (2) | ' | 1,125 | 1,002 | |
Samsung Corning Precision Materials Co., Ltd. [Member] | ' | ' | ' | |
Note 10 - Acquisition (Details) - Recognized Amounts of Identified Assets Acquired and Liabilities Assumed [Line Items] | ' | ' | ' | |
Cash and cash equivalents (1) | 133 | [1] | ' | ' |
Trade Receivables | 353 | ' | ' | |
Inventory | 119 | ' | ' | |
Property, plant and equipment | 3,603 | 3,600 | ' | |
Other current and non-current assets | 80 | ' | ' | |
Debt – current | -32 | ' | ' | |
Accounts payable and accrued expenses | -343 | ' | ' | |
Other current and non-current liabilities | -278 | ' | ' | |
Total identified net assets | 3,635 | ' | ' | |
Non-controlling interests | 15 | ' | ' | |
Fair value of Samsung Corning Precision Materials on acquisition date | -3,718 | ' | ' | |
Goodwill (2) | $68 | [2] | ' | ' |
[1] | Cash and cash equivalents acquired is presented net of the 2014 dividend distribution subsequent to the Acquisition, in the amount of $2.8 billion. | |||
[2] | The goodwill recognized is not deductible for U.S. income tax purposes. The goodwill was allocated to the Display segment. |
Note_10_Acquisition_Details_Un
Note 10 - Acquisition (Details) - Unaudited Pro Forma Combined Consolidated Financial Information (USD $) | 3 Months Ended |
In Millions, except Per Share data, unless otherwise specified | Mar. 31, 2013 |
Unaudited Pro Forma Combined Consolidated Financial Information [Abstract] | ' |
Net sales | $2,388 |
Net income from continuing operations - basic | 620 |
Net income from continuing operations - diluted | $644 |
Earnings per common share attributable to common shareholders | ' |
Basic (in Dollars per share) | $0.42 |
Diluted (in Dollars per share) | $0.40 |
Shares used in computing per share amounts | ' |
Basic (in Shares) | 1,472 |
Diluted (in Shares) | 1,596 |
Note_11_Property_Net_of_Accumu2
Note 11 - Property, Net of Accumulated Depreciation (Details) (USD $) | 3 Months Ended | 3 Months Ended | ||||
Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Jan. 15, 2014 | |
Increase from Consolidation of Samsung Corning Precision Materials [Member] | Samsung Corning Precision Materials Co., Ltd. [Member] | Samsung Corning Precision Materials Co., Ltd. [Member] | ||||
Note 11 - Property, Net of Accumulated Depreciation (Details) [Line Items] | ' | ' | ' | ' | ' | ' |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment | ' | ' | ' | ' | $3,600,000,000 | $3,603,000,000 |
Interest Costs Capitalized | 10,000,000 | 9,000,000 | ' | ' | ' | ' |
Precious Metals | 3,300,000,000 | ' | 2,200,000,000 | 1,100,000,000 | ' | ' |
Depletion | $8,000,000 | $6,000,000 | ' | $2,000,000 | ' | ' |
Note_11_Property_Net_of_Accumu3
Note 11 - Property, Net of Accumulated Depreciation (Details) - Property, Net (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ' | ' |
Property, plant and equipment, gross | $21,485 | $17,666 |
Accumulated depreciation | -8,141 | -7,865 |
Total | 13,344 | 9,801 |
Land [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, plant and equipment, gross | 496 | 121 |
Building [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, plant and equipment, gross | 5,619 | 4,175 |
Machinery and Equipment [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, plant and equipment, gross | 13,683 | 12,286 |
Construction in Progress [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, plant and equipment, gross | $1,687 | $1,084 |
Note_12_Goodwill_and_Other_Int2
Note 12 - Goodwill and Other Intangible Assets (Details) (USD $) | 3 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | |
Note 12 - Goodwill and Other Intangible Assets (Details) [Line Items] | ' | ' | ' |
Goodwill, Gross | $7,600,000,000 | ' | $7,500,000,000 |
Amortization of Intangible Assets | 8,000,000 | 7,000,000 | ' |
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | 34,000,000 | ' | ' |
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 33,000,000 | ' | ' |
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 32,000,000 | ' | ' |
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 32,000,000 | ' | ' |
Finite-Lived Intangible Assets, Amortization Expense, Year Five | 32,000,000 | ' | ' |
Finite-Lived Intangible Assets, Amortization Expense, after Year Five | 32,000,000 | ' | ' |
Optical Communications [Member] | ' | ' | ' |
Note 12 - Goodwill and Other Intangible Assets (Details) [Line Items] | ' | ' | ' |
Goodwill, Impaired, Accumulated Impairment Loss | $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 $) | 3 Months Ended | 3 Months Ended | |||||||
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | |||
Optical Communications [Member] | Optical Communications [Member] | Display Technologies [Member] | Specialty Materials [Member] | Life Sciences [Member] | |||||
Goodwill [Line Items] | ' | ' | ' | ' | ' | ' | |||
Balance | $1,002 | $240 | $240 | $9 | $150 | $603 | |||
Acquired goodwill (1) | 122 | [1] | ' | ' | 68 | [1] | 54 | [1] | ' |
Foreign currency translation adjustment | 1 | ' | ' | ' | ' | 1 | |||
Balance | $1,125 | $240 | $240 | $77 | $204 | $604 | |||
[1] | The Company recorded the acquisition of Samsung Corning Precision Materials and a small acquisition in the Specialty Materials segment in the first quarter of 2014. Refer to Note 10 (Acquisition) to the Consolidated Financial Statements for additional information on the Acquisition of Samsung Corning Precision Materials. |
Note_12_Goodwill_and_Other_Int4
Note 12 - Goodwill and Other Intangible Assets (Details) - Other Intangible Assets (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Other intangible assets, gross | $734 | $726 |
Other intangible assets, accumulated amortization | 194 | 186 |
Other intangible assets, net | 540 | 540 |
Patents, Trademarks, and Trade Names [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Other intangible assets, gross | 307 | 290 |
Other intangible assets, accumulated amortization | 141 | 138 |
Other intangible assets, net | 166 | 152 |
Customer Lists and Other [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Other intangible assets, gross | 427 | 436 |
Other intangible assets, accumulated amortization | 53 | 48 |
Other intangible assets, net | $374 | $388 |
Note_13_Employee_Retirement_Pl2
Note 13 - Employee Retirement Plans (Details) - Summary of Net Periodic Benefit Cost (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Pension Plan, Defined Benefit [Member] | ' | ' |
Note 13 - Employee Retirement Plans (Details) - Summary of Net Periodic Benefit Cost [Line Items] | ' | ' |
Service cost | $16 | $19 |
Interest cost | 38 | 34 |
Expected return on plan assets | -43 | -42 |
Amortization of prior service cost (credit) | 2 | 1 |
Total pension and postretirement benefit expense | 13 | 12 |
Other Pension Plan, Postretirement or Supplemental Plans, Defined Benefit [Member] | ' | ' |
Note 13 - Employee Retirement Plans (Details) - Summary of Net Periodic Benefit Cost [Line Items] | ' | ' |
Service cost | 3 | 4 |
Interest cost | 9 | 10 |
Amortization of net loss | ' | 4 |
Amortization of prior service cost (credit) | -1 | -2 |
Total pension and postretirement benefit expense | $11 | $16 |
Note_14_Hedging_Activities_Det
Note 14 - Hedging Activities (Details) (Not Designated as Hedging Instrument [Member], USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Billions, unless otherwise specified | ||
Gross Notional Value [Member] | Translated Earnings Contracts [Member] | ' | ' |
Note 14 - Hedging Activities (Details) [Line Items] | ' | ' |
Derivative, Notional Amount | $11.60 | $6.80 |
Gross Notional Value [Member] | Collar Options [Member] | ' | ' |
Note 14 - Hedging Activities (Details) [Line Items] | ' | ' |
Derivative, Notional Amount | 4.5 | 5.9 |
Gross Notional Value [Member] | Foreign Exchange Forward [Member] | ' | ' |
Note 14 - Hedging Activities (Details) [Line Items] | ' | ' |
Derivative, Notional Amount | 7.1 | 0.9 |
Net Notional Value [Member] | Collar Options [Member] | ' | ' |
Note 14 - Hedging Activities (Details) [Line Items] | ' | ' |
Derivative, Notional Amount | $2 | $3 |
Note_14_Hedging_Activities_Det1
Note 14 - Hedging Activities (Details) - Summary of Notional Amounts and Respective Fair Values of Derivative Financial Instruments (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Note 14 - Hedging Activities (Details) - Summary of Notional Amounts and Respective Fair Values of Derivative Financial Instruments [Line Items] | ' | ' |
Notional amount | $13,653 | $8,613 |
Asset derivatives, fair value | 379 | 462 |
Liability derivatives, fair value | -31 | -37 |
Designated as Hedging Instrument [Member] | Foreign Exchange Contract [Member] | ' | ' |
Note 14 - Hedging Activities (Details) - Summary of Notional Amounts and Respective Fair Values of Derivative Financial Instruments [Line Items] | ' | ' |
Notional amount | 388 | 433 |
Asset derivatives, fair value | 2 | 8 |
Liability derivatives, fair value | -3 | -3 |
Designated as Hedging Instrument [Member] | Interest Rate Swap [Member] | ' | ' |
Note 14 - Hedging Activities (Details) - Summary of Notional Amounts and Respective Fair Values of Derivative Financial Instruments [Line Items] | ' | ' |
Notional amount | 550 | 550 |
Liability derivatives, fair value | -23 | -28 |
Not Designated as Hedging Instrument [Member] | Foreign Exchange Contract [Member] | ' | ' |
Note 14 - Hedging Activities (Details) - Summary of Notional Amounts and Respective Fair Values of Derivative Financial Instruments [Line Items] | ' | ' |
Notional amount | 1,100 | 804 |
Asset derivatives, fair value | 9 | 20 |
Liability derivatives, fair value | -4 | -3 |
Not Designated as Hedging Instrument [Member] | Translated Earnings Contracts [Member] | ' | ' |
Note 14 - Hedging Activities (Details) - Summary of Notional Amounts and Respective Fair Values of Derivative Financial Instruments [Line Items] | ' | ' |
Notional amount | 11,615 | 6,826 |
Asset derivatives, fair value | 248 | 344 |
Liability derivatives, fair value | -1 | -3 |
Not Designated as Hedging Instrument [Member] | ' | ' |
Note 14 - Hedging Activities (Details) - Summary of Notional Amounts and Respective Fair Values of Derivative Financial Instruments [Line Items] | ' | ' |
Asset derivatives, fair value | $120 | $90 |
Note_14_Hedging_Activities_Det2
Note 14 - Hedging Activities (Details) - Effect on Consolidated financial statements (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | |
Cash Flow Hedging [Member] | ' | ' | |
Note 14 - Hedging Activities (Details) - Effect on Consolidated financial statements [Line Items] | ' | ' | |
Gain/(loss) recognized in other comprehensive income (OCI) | ($7) | $37 | |
Gain/(loss) reclassified from accumulated OCI into income (effective) | 0 | 21 | [1] |
Cost of Sales [Member] | Interest Rate Hedges [Member] | ' | ' | |
Note 14 - Hedging Activities (Details) - Effect on Consolidated financial statements [Line Items] | ' | ' | |
Gain/(loss) reclassified from accumulated OCI into income (effective) | 0 | 8 | [1] |
Other Income [Member] | Foreign Exchange Contract [Member] | ' | ' | |
Note 14 - Hedging Activities (Details) - Effect on Consolidated financial statements [Line Items] | ' | ' | |
Gain/(loss) recognized in other comprehensive income (OCI) | -7 | 37 | |
Gain/(loss) reclassified from accumulated OCI into income (effective) | $0 | $13 | [1] |
[1] | The amount of hedge ineffectiveness at March 31, 2014 and 2013 was insignificant. |
Note_14_Hedging_Activities_Det3
Note 14 - Hedging Activities (Details) - Effect on Consolidated financial statements (USD $) | 3 Months Ended | |||
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | ||
Note 14 - Hedging Activities (Details) - Effect on Consolidated financial statements [Line Items] | ' | ' | ||
Gain (loss) recognized in income | $2 | $24 | ||
Undesignated [Member] | ' | ' | ||
Note 14 - Hedging Activities (Details) - Effect on Consolidated financial statements [Line Items] | ' | ' | ||
Gain (loss) recognized in income | -6 | [1] | 129 | [1] |
Other Income [Member] | Foreign Exchange Contracts, Balance Sheet [Member] | ' | ' | ||
Note 14 - Hedging Activities (Details) - Effect on Consolidated financial statements [Line Items] | ' | ' | ||
Gain (loss) recognized in income | -12 | [1] | 47 | [1] |
Other Income [Member] | Foreign Exchange Contracts, Loans [Member] | ' | ' | ||
Note 14 - Hedging Activities (Details) - Effect on Consolidated financial statements [Line Items] | ' | ' | ||
Gain (loss) recognized in income | 4 | [1] | 58 | [1] |
Other Income [Member] | Translated Earnings Contracts [Member] | ' | ' | ||
Note 14 - Hedging Activities (Details) - Effect on Consolidated financial statements [Line Items] | ' | ' | ||
Gain (loss) recognized in income | $2 | [1] | $24 | [1] |
[1] | Certain amounts for prior periods were reclassified to conform to the current presentation. The gain (loss) on foreign exchange contracts is now disclosed in two categories, Foreign exchange contracts - balance sheet, and Foreign exchange contracts - loans. |
Note_15_Fair_Value_Measurement2
Note 15 - Fair Value Measurements (Details) (Samsung Corning Precision Materials Co., Ltd. [Member], USD $) | Jan. 15, 2014 |
In Millions, unless otherwise specified | |
Note 15 - Fair Value Measurements (Details) [Line Items] | ' |
Business Combination, Contingent Consideration, Liability | $196 |
Revenues Generated by Samsung Corning Precision Materials [Member] | ' |
Note 15 - Fair Value Measurements (Details) [Line Items] | ' |
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High | 665 |
Volume of Certain Sales [Member] | ' |
Note 15 - Fair Value Measurements (Details) [Line Items] | ' |
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High | $100 |
Note_15_Fair_Value_Measurement3
Note 15 - Fair Value Measurements (Details) - Major Categories of Financial Assets and Liabilities Measured on a Recurring Basis (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | ||
In Millions, unless otherwise specified | ||||
Non-current assets: | ' | ' | ||
Other assets | $766 | $473 | ||
Current Assets [Member] | Fair Value, Inputs, Level 1 [Member] | ' | ' | ||
Current assets: | ' | ' | ||
Short-term investments | 644 | 531 | ||
Current Assets [Member] | Fair Value, Inputs, Level 2 [Member] | ' | ' | ||
Current assets: | ' | ' | ||
Other current assets | 259 | [1] | 372 | [1] |
Current Assets [Member] | ' | ' | ||
Current assets: | ' | ' | ||
Short-term investments | 644 | 531 | ||
Other current assets | 259 | [1] | 372 | [1] |
Non Current Assets [Member] | Fair Value, Inputs, Level 2 [Member] | ' | ' | ||
Non-current assets: | ' | ' | ||
Other assets | 160 | [1],[2] | 128 | [1],[2] |
Non Current Assets [Member] | ' | ' | ||
Non-current assets: | ' | ' | ||
Other assets | 160 | [1],[2] | 128 | [1],[2] |
Current Liabilities [Member] | Fair Value, Inputs, Level 2 [Member] | ' | ' | ||
Current liabilities: | ' | ' | ||
Other liabilities | 8 | [1] | 9 | [1] |
Current Liabilities [Member] | ' | ' | ||
Current liabilities: | ' | ' | ||
Other liabilities | 8 | [1] | 9 | [1] |
Non Current Liabilities [Member] | Fair Value, Inputs, Level 2 [Member] | ' | ' | ||
Current liabilities: | ' | ' | ||
Other liabilities | 23 | [1] | 28 | [1] |
Non Current Liabilities [Member] | ' | ' | ||
Current liabilities: | ' | ' | ||
Other liabilities | $23 | [1] | $28 | [1] |
[1] | Derivative assets and liabilities include foreign exchange forward and purchased collar contracts, and interest rate swaps 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_Shareholders_Equity_De
Note 16 - Shareholders' Equity (Details) (USD $) | 3 Months Ended | 0 Months Ended | 0 Months Ended | 3 Months Ended | 0 Months Ended | 1 Months Ended | 0 Months Ended | 3 Months Ended | 1 Months Ended | 4 Months Ended | |||||||
Mar. 31, 2014 | Mar. 31, 2013 | Jan. 15, 2014 | Mar. 31, 2014 | Jan. 15, 2014 | Mar. 31, 2014 | Jan. 15, 2014 | Oct. 22, 2013 | Mar. 03, 2014 | Mar. 03, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2013 | Jan. 31, 2014 | Oct. 31, 2013 | Jan. 31, 2014 | |
Additional Amount Issued at Closing [Member] | Common Stock [Member] | Convertible Preferred Stock, Series A [Member] | Convertible Preferred Stock, Series A [Member] | Convertible Preferred Stock, Series A [Member] | Oct. 22, 2013 [Member] | March 3, 2014 [Member] | April 24, 2013 [Member] | April 24, 2013 [Member] | Jan 15, 2014 [Member] | Corning Inc. [Member] | Equity Method Investee [Member] | JP Morgan Chase [Member] | JP Morgan Chase [Member] | JP Morgan Chase [Member] | |||
Convertible Preferred Stock, Series A [Member] | Samsung Display Co., Ltd. [Member] | Samsung Display Co., Ltd. [Member] | Citibank [Member] | Open Market [Member] | Open Market [Member] | Open Market [Member] | April 24, 2013 [Member] | April 24, 2013 [Member] | April 24, 2013 [Member] | ||||||||
Samsung Display Co., Ltd. [Member] | |||||||||||||||||
Note 16 - Shareholders' Equity (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred Stock, Par or Stated Value Per Share (in Dollars per share) | $100 | ' | ' | ' | ' | ' | $100 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock Issued During Period, Shares, Acquisitions (in Shares) | ' | ' | ' | ' | 1,900 | 1,900 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share Price (in Dollars per share) | ' | ' | ' | ' | $1,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock Issued During Period, Value, Acquisitions | ' | ' | ' | ' | $1,900,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock Issued During Period, Value, New Issues | ' | ' | 400,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred Stock, Dividend Rate, Percentage | ' | ' | ' | ' | ' | ' | 4.25% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Convertible Preferred Stock, Shares Issued upon Conversion (in Shares) | ' | ' | ' | 50,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Minimum Closing Price of Common Stock for the Company to Exercise Option to Convert Preferred Stock (in Dollars per share) | $35 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock Repurchase Program, Authorized Amount | ' | ' | ' | ' | ' | ' | ' | 2,000,000,000 | 1,250,000,000 | ' | ' | ' | ' | ' | ' | 1,000,000,000 | ' |
Treasury Stock, Shares, Acquired (in Shares) | ' | ' | ' | ' | ' | ' | ' | ' | 52,500,000 | ' | 26,700,000 | 8,700,000 | ' | ' | 10,500,000 | 47,100,000 | 57,600,000 |
Accelerated Share Repurchases, Settlement (Payment) or Receipt | ' | ' | ' | ' | ' | ' | ' | ' | -1,250,000,000 | ' | ' | ' | ' | ' | ' | -1,000,000,000 | ' |
Treasury Stock, Value, Acquired, Cost Method | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,000,000,000 | 484,000,000 | 167,000,000 | ' | ' | ' | 800,000,000 | ' |
Adjustments to Additional Paid in Capital, Other | ' | ' | ' | ' | ' | ' | ' | ' | -250,000,000 | ' | ' | ' | ' | ' | ' | -200,000,000 | ' |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Reclassification Adjustment from AOCI, Realized upon Sale or Liquidation, before Tax | 136,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | ($132,000,000) | ($505,000,000) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ($329,000,000) | ($176,000,000) | ' | ' | ' |
Note_17_Sharebased_Compensatio2
Note 17 - Share-based Compensation (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Note 17 - Share-based Compensation (Details) [Line Items] | ' | ' |
Share-based Compensation | $15 | $11 |
Maximum Term for Non-Qualified and Incentive Stock Options | '10 years | ' |
Proceeds from Stock Options Exercised | 50 | 12 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value | 32 | 13 |
Years of Historical Volatility Included in Most Recent Volatility | '15 years | ' |
Employee Stock Option [Member] | ' | ' |
Note 17 - Share-based Compensation (Details) [Line Items] | ' | ' |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | 17 | ' |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | '1 year 146 days | ' |
Allocated Share-based Compensation Expense | 6 | 5 |
Restricted Stock [Member] | ' | ' |
Note 17 - Share-based Compensation (Details) [Line Items] | ' | ' |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | 44 | ' |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | '1 year 292 days | ' |
Allocated Share-based Compensation Expense | $9 | $6 |
Restricted Stock [Member] | Minimum [Member] | ' | ' |
Note 17 - Share-based Compensation (Details) [Line Items] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | '1 year | ' |
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, Award Vesting Period | '10 years | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | '10 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 | '7 years 73 days | '5 years 292 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 73 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 $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2014 | 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, 2013 | ' | 57,139 |
Options Outstanding as of December 31, 2013 | ' | $17.83 |
Granted | 528 | ' |
Granted | $20.80 | ' |
Exercised | -4,571 | ' |
Exercised | $11.75 | ' |
Forfeited and Expired | -161 | ' |
Forfeited and Expired | $15.85 | ' |
Options Outstanding as of March 31, 2014 | 52,935 | 57,139 |
Options Outstanding as of March 31, 2014 | $18.39 | $17.83 |
Options Outstanding as of March 31, 2014 | '4 years 346 days | ' |
Options Outstanding as of March 31, 2014 | $201,401 | ' |
Options Expected to Vest as of March 31, 2014 | 52,817 | ' |
Options Expected to Vest as of March 31, 2014 | $18.40 | ' |
Options Expected to Vest as of March 31, 2014 | '4 years 346 days | ' |
Options Expected to Vest as of March 31, 2014 | 200,454 | ' |
Options Exercisable as of March 31, 2014 | 40,470 | ' |
Options Exercisable as of March 31, 2014 | $19.78 | ' |
Options Exercisable as of March 31, 2014 | '3 years 328 days | ' |
Options Exercisable as of March 31, 2014 | $114,511 | ' |
Note_17_Sharebased_Compensatio4
Note 17 - Share-based Compensation (Details) - Inputs Used for Valuation of Option Grants under Stock Option Plans | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Minimum [Member] | ' | ' |
Note 17 - Share-based Compensation (Details) - Inputs Used for Valuation of Option Grants under Stock Option Plans [Line Items] | ' | ' |
Expected volatility | 46.20% | 47.10% |
Weighted-average volatility | 46.20% | 47.10% |
Expected dividends | 2.09% | 3.02% |
Risk-free rate | 2.20% | 1.10% |
Average risk-free rate | 2.20% | 1.40% |
Expected term (in years) | '7 years 73 days | '5 years 292 days |
Pre-vesting departure rate | 0.50% | 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 | 46.20% | 47.40% |
Weighted-average volatility | 46.20% | 47.40% |
Expected dividends | 2.09% | 3.02% |
Risk-free rate | 2.20% | 1.50% |
Average risk-free rate | 2.20% | 1.40% |
Expected term (in years) | '7 years 73 days | '7 years 73 days |
Pre-vesting departure rate | 0.50% | 4.10% |
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 (Time-Based Restricted Stock and Restricted Stock Units [Member], USD $) | 3 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2014 |
Time-Based Restricted Stock and Restricted Stock Units [Member] | ' |
Note 17 - Share-based Compensation (Details) - Summary of the Status of Non-Vested Time-Based Restricted Stock and Restricted Stock Units [Line Items] | ' |
Non-vested shares and share units at December 31, 2013 | 6,108 |
Non-vested shares and share units at December 31, 2013 | $14.58 |
Granted | 1,270 |
Granted | $20.28 |
Vested | -1,011 |
Vested | $18.57 |
Forfeited | -7 |
Forfeited | $14.91 |
Non-vested shares and share units at March 31, 2014 | 6,360 |
Non-vested shares and share units at March 31, 2014 | $15.08 |
Note_18_Significant_Customers_
Note 18 - Significant Customers (Details) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Significant Customers [Abstract] | ' | ' |
Number of Significant Customers | 1 | 0 |
Note_19_Reportable_Segments_De
Note 19 - Reportable Segments (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Note 19 - Reportable Segments (Details) [Line Items] | ' | ' |
Restructuring Costs and Asset Impairment Charges (in Dollars) | $17 | ' |
Tax Adjustments, Settlements, and Unusual Provisions (in Dollars) | ' | -54 |
Other Segments [Member] | ' | ' |
Note 19 - Reportable Segments (Details) [Line Items] | ' | ' |
Tax Adjustments, Settlements, and Unusual Provisions (in Dollars) | ' | -54 |
Display Technologies [Member] | ' | ' |
Note 19 - Reportable Segments (Details) [Line Items] | ' | ' |
Restructuring Costs and Asset Impairment Charges (in Dollars) | 5 | ' |
Number of Customers Individually Accounting for 10% or More of Each Segment's Sales | 4 | ' |
Percent of Total Segment Sales | 72.00% | ' |
Optical Communications [Member] | ' | ' |
Note 19 - Reportable Segments (Details) [Line Items] | ' | ' |
Restructuring Costs and Asset Impairment Charges (in Dollars) | 12 | ' |
Number of Customers Individually Accounting for 10% or More of Each Segment's Sales | 0 | ' |
Environmental Technologies [Member] | ' | ' |
Note 19 - Reportable Segments (Details) [Line Items] | ' | ' |
Number of Customers Individually Accounting for 10% or More of Each Segment's Sales | 3 | ' |
Percent of Total Segment Sales | 88.00% | ' |
Specialty Materials [Member] | ' | ' |
Note 19 - Reportable Segments (Details) [Line Items] | ' | ' |
Number of Customers Individually Accounting for 10% or More of Each Segment's Sales | 3 | ' |
Percent of Total Segment Sales | 50.00% | ' |
Life Sciences [Member] | ' | ' |
Note 19 - Reportable Segments (Details) [Line Items] | ' | ' |
Number of Customers Individually Accounting for 10% or More of Each Segment's Sales | 2 | ' |
Percent of Total Segment Sales | 43.00% | ' |
Dow Corning Corporation [Member] | Equity Investment [Member] | ' | ' |
Note 19 - Reportable Segments (Details) [Line Items] | ' | ' |
Restructuring Costs and Asset Impairment Charges (in Dollars) | 2 | ' |
Dow Corning Corporation [Member] | ' | ' |
Note 19 - Reportable Segments (Details) [Line Items] | ' | ' |
Derivative, Gain on Derivative (in Dollars) | $32 | ' |
Note_19_Reportable_Segments_De1
Note 19 - Reportable Segments (Details) - Reportable Segments (USD $) | 3 Months Ended | |||
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Net sales | $2,289 | $1,814 | ||
Restructuring, impairment and other charges | 17 | ' | ||
Operating Segments [Member] | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Net sales | 2,289 | 1,814 | ||
Depreciation | 286 | [1] | 246 | [1] |
Amortization of purchased intangibles | 8 | 7 | ||
Research, development and engineering expenses | 169 | [2] | 153 | [2] |
Restructuring, impairment and other charges | 17 | ' | ||
Equity in earnings of affiliated companies | -6 | 139 | ||
Income tax (provision) benefit | -246 | -119 | ||
Net income (loss) | 287 | [3] | 434 | [3] |
Display Technologies [Member] | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Net sales | 929 | 650 | ||
Depreciation | 173 | [1] | 124 | [1] |
Research, development and engineering expenses | 45 | [2] | 19 | [2] |
Restructuring, impairment and other charges | 5 | ' | ||
Equity in earnings of affiliated companies | -9 | 133 | ||
Income tax (provision) benefit | -198 | -80 | ||
Net income (loss) | 209 | [3] | 349 | [3] |
Optical Communications [Member] | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Net sales | 593 | 470 | ||
Depreciation | 36 | [1] | 34 | [1] |
Amortization of purchased intangibles | 2 | 2 | ||
Research, development and engineering expenses | 37 | [2] | 35 | [2] |
Restructuring, impairment and other charges | 12 | ' | ||
Equity in earnings of affiliated companies | ' | 1 | ||
Income tax (provision) benefit | -19 | -17 | ||
Net income (loss) | 27 | [3] | 35 | [3] |
Environmental Technologies [Member] | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Net sales | 275 | 228 | ||
Depreciation | 30 | [1] | 31 | [1] |
Research, development and engineering expenses | 21 | [2] | 23 | [2] |
Equity in earnings of affiliated companies | 1 | ' | ||
Income tax (provision) benefit | -21 | -13 | ||
Net income (loss) | 43 | [3] | 27 | [3] |
Specialty Materials [Member] | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Net sales | 261 | 258 | ||
Depreciation | 27 | [1] | 39 | [1] |
Research, development and engineering expenses | 33 | [2] | 35 | [2] |
Income tax (provision) benefit | -16 | -19 | ||
Net income (loss) | 31 | [3] | 39 | [3] |
Life Sciences [Member] | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Net sales | 210 | 207 | ||
Depreciation | 15 | [1] | 14 | [1] |
Amortization of purchased intangibles | 6 | 5 | ||
Research, development and engineering expenses | 5 | [2] | 5 | [2] |
Income tax (provision) benefit | -8 | -5 | ||
Net income (loss) | 17 | [3] | 12 | [3] |
All Other [Member] | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Net sales | 21 | 1 | ||
Depreciation | 5 | [1] | 4 | [1] |
Research, development and engineering expenses | 28 | [2] | 36 | [2] |
Equity in earnings of affiliated companies | 2 | 5 | ||
Income tax (provision) benefit | 16 | 15 | ||
Net income (loss) | ($40) | [3] | ($28) | [3] |
[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. |
Note_19_Reportable_Segments_De2
Note 19 - Reportable Segments (Details) - Reconciliation of Reportable Segment Net Income (Loss) to Consolidated Net Income (USD $) | 3 Months Ended | |||
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ||
Net Income | $301 | $494 | ||
Unallocated amounts: | ' | ' | ||
Net financing costs (1) | -29 | [1] | -34 | [1] |
Stock-based compensation expense | -15 | -11 | ||
Exploratory research | -27 | -24 | ||
Corporate contributions | -5 | -13 | ||
Equity in earnings of affiliated companies, net of impairments (2) | 92 | [2] | 34 | [2] |
Asbestos settlement | -2 | -2 | ||
Purchased collars and average forward contracts | 2 | 24 | ||
Other corporate items (3) | -2 | [3] | 86 | [3] |
Reportable Segments [Member] | ' | ' | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ||
Net Income | 327 | 462 | ||
Non Reportable Segments [Member] | ' | ' | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ||
Net Income | ($40) | ($28) | ||
[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, which includes our portion of a mark-to-market gain on a derivative instrument, totaling $32 million, for the three months ended March 31, 2014 and a $2 million restructuring charge for our share of costs for headcount reductions and asset write-offs for the three months ended March 31, 2013. | |||
[3] | For the three months ended March 31, 2013, Corning recorded a $54 million tax benefit for the impact of the American Taxpayer Relief Act enacted on January 3, 2013 retroactive to 2012. |