Document_And_Entity_Informatio
Document And Entity Information | 9 Months Ended | |
Sep. 30, 2014 | Oct. 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 | ' | 1,281,848,134 |
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 | 30-Sep-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Consolidated_Statements_of_Inc
Consolidated Statements of Income (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Net sales | $2,540 | $2,067 | $7,311 | $5,863 |
Cost of sales | 1,451 | 1,166 | 4,255 | 3,309 |
Gross margin | 1,089 | 901 | 3,056 | 2,554 |
Operating expenses: | ' | ' | ' | ' |
Selling, general and administrative expenses | 256 | 265 | 969 | 790 |
Research, development and engineering expenses | 199 | 184 | 605 | 541 |
Amortization of purchased intangibles | 9 | 8 | 25 | 23 |
Restructuring, impairment and other charges (Note 2) | ' | ' | 51 | ' |
Asbestos litigation charge | 5 | 5 | 11 | 13 |
Operating income | 620 | 439 | 1,395 | 1,187 |
Equity in earnings of affiliated companies (Note 9) | 95 | 138 | 243 | 477 |
Interest income | 5 | 1 | 21 | 5 |
Interest expense | -31 | -28 | -91 | -92 |
Transaction-related gain, net (Note 10) | ' | ' | 74 | ' |
Other income (expense), net (Note 1) | 720 | -1 | 589 | 329 |
Income before income taxes | 1,409 | 549 | 2,231 | 1,906 |
Provision for income taxes (Note 5) | -395 | -141 | -747 | -366 |
Net income attributable to Corning Incorporated | $1,014 | $408 | $1,484 | $1,540 |
Earnings per common share attributable to Corning Incorporated: | ' | ' | ' | ' |
Basic (Note 6) (in Dollars per share) | $0.77 | $0.28 | $1.08 | $1.05 |
Diluted (Note 6) (in Dollars per share) | $0.72 | $0.28 | $1.03 | $1.04 |
Dividends declared per common share (in Dollars per share) | $0.10 | $0.10 | $0.30 | $0.29 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Net income attributable to Corning Incorporated | $1,014 | $408 | $1,484 | $1,540 |
Foreign currency translation (loss) gain | -676 | 317 | -539 | -484 |
Net unrealized (losses) gains on investments | -3 | -1 | 1 | 1 |
Unamortized gains and prior service costs for postretirement benefit plans | ' | 14 | 3 | 44 |
Net unrealized gains (losses) on designated hedges | 5 | -17 | 2 | 8 |
Other comprehensive (loss) income, net of tax | -674 | 313 | -533 | -431 |
Comprehensive income attributable to Corning Incorporated | $340 | $721 | $951 | $1,109 |
Consolidated_Balance_Sheets_Un
Consolidated Balance Sheets (Unaudited) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $5,353 | $4,704 |
Short-term investments, at fair value (Note 7) | 751 | 531 |
Total cash, cash equivalents and short-term investments | 6,104 | 5,235 |
Trade accounts receivable, net of doubtful accounts and allowances - $36 and $28 | 1,601 | 1,253 |
Inventories (Note 8) | 1,327 | 1,270 |
Deferred income taxes (Note 5) | 156 | 278 |
Other current assets | 825 | 855 |
Total current assets | 10,013 | 8,891 |
Investments (Note 9) | 2,002 | 5,537 |
Property, net of accumulated depreciation - $8,412 and $7,865 (Note 11) | 13,033 | 9,801 |
Goodwill and other intangible assets, net (Note 12) | 1,653 | 1,542 |
Deferred income taxes (Note 5) | 1,944 | 2,234 |
Other assets | 1,170 | 473 |
Total Assets | 29,815 | 28,478 |
Current liabilities: | ' | ' |
Current portion of long-term debt (Note 4) | 455 | 21 |
Accounts payable | 716 | 771 |
Other accrued liabilities (Note 3) | 967 | 954 |
Total current liabilities | 2,138 | 1,746 |
Long-term debt (Note 4) | 3,228 | 3,272 |
Postretirement benefits other than pensions | 757 | 766 |
Other liabilities (Note 3) | 1,842 | 1,483 |
Total liabilities | 7,965 | 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: 1,671 million and 1,661 million | 836 | 831 |
Additional paid-in capital – common stock | 13,336 | 13,066 |
Retained earnings | 12,339 | 11,320 |
Treasury stock, at cost; Shares held: 389 million and 262 million | -6,543 | -4,099 |
Accumulated other comprehensive (loss) income | -489 | 44 |
Total Corning Incorporated shareholders’ equity | 21,779 | 21,162 |
Noncontrolling interests | 71 | 49 |
Total equity | 21,850 | 21,211 |
Total Liabilities and Equity | $29,815 | $28,478 |
Consolidated_Balance_Sheets_Un1
Consolidated Balance Sheets (Unaudited) (Parentheticals) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Millions, except Share data, unless otherwise specified | ||
Doubtful accounts and allowances (in Dollars) | $36 | $28 |
Accumulated depreciation (in Dollars) | $8,412 | $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 | 1,671,000,000 | 1,661,000,000 |
Treasury stock, at cost, shares held | 389,000,000 | 262,000,000 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (Unaudited) (USD $) | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | |
Cash Flows from Operating Activities: | ' | ' | |
Net income | $1,484 | $1,540 | |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' | |
Depreciation | 877 | 730 | |
Amortization of purchased intangibles | 25 | 23 | |
Restructuring, impairment and other charges | 51 | ' | |
Stock compensation charges | 47 | 40 | |
Equity in earnings of affiliated companies | -243 | -477 | |
Dividends received from affiliated companies | 1,673 | 221 | |
Deferred tax provision | 414 | 141 | |
Restructuring payments | -30 | -30 | |
Employee benefit payments (in excess of) less than expense | -5 | 34 | |
Gains on translated earnings contracts | -600 | -205 | |
Contingent consideration fair value adjustment | -77 | ' | |
Changes in certain working capital items: | ' | ' | |
Trade accounts receivable | -63 | -139 | |
Inventories | 27 | -238 | |
Other current assets | 17 | 14 | |
Accounts payable and other current liabilities | -339 | -278 | |
Other, net | 339 | 127 | |
Net cash provided by operating activities | 3,597 | 1,503 | |
Cash Flows from Investing Activities: | ' | ' | |
Capital expenditures | -740 | -682 | |
Acquisitions of business, net of cash received | 66 | -66 | |
Investment in unconsolidated entities | -109 | -19 | |
Proceeds from loan repayments from unconsolidated entities | 15 | ' | |
Short-term investments – acquisitions | -1,170 | -1,183 | |
Short-term investments – liquidations | 954 | 1,449 | |
Premium on purchased collars | ' | -107 | |
Realized gains on translated earnings contracts | 226 | 33 | |
Other, net | 5 | ' | |
Net cash used in investing activities | -753 | -575 | |
Cash Flows from Financing Activities: | ' | ' | |
Retirement of long-term debt | ' | -498 | |
Net repayments of short-term borrowings and current portion of long-term debt | -50 | -69 | |
Principal payments under capital lease obligations | -1 | -2 | |
Proceeds from issuance of short-term debt | 22 | ' | |
Proceeds from issuance of commercial paper, net | 424 | ' | |
Proceeds from issuance of preferred stock (1) | 400 | [1] | ' |
Proceeds received for incentives | ' | 82 | |
Payments to acquire noncontrolling interest | ' | -47 | |
Proceeds from the exercise of stock options | 98 | 54 | |
Repurchases of common stock for treasury | -2,300 | -441 | |
Dividends paid | -439 | -426 | |
Net cash used in by financing activities | -1,846 | -1,347 | |
Effect of exchange rates on cash | -349 | -9 | |
Net increase (decrease) in cash and cash equivalents | 649 | -428 | |
Cash and cash equivalents at beginning of period | 4,704 | 4,988 | |
Cash and cash equivalents at end of period | $5,353 | $4,560 | |
[1] | 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). Corning also issued to Samsung Display an additional amount of Preferred Stock at closing, for an issue price of $400 million in cash (Note 16). |
Supplemental_Cash_Flow_Informa
Supplemental Cash Flow Information | 9 Months Ended | |
Sep. 30, 2014 | ||
Supplemental Cash Flow Elements [Abstract] | ' | |
Cash Flow, Supplemental Disclosures [Text Block] | ' | |
(1) | 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). Corning also issued to Samsung Display an additional amount of Preferred Stock at closing, for an issue price of $400 million in cash (Note 16). | |
Note_1_Significant_Accounting_
Note 1 - Significant Accounting Policies | 9 Months Ended | |||||||||||
Sep. 30, 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 Co., Ltd. (“Corning Precision Materials”), the former Samsung Corning Precision Materials organization and operations were integrated into the Display Technologies segment in the first quarter of 2014. | ||||||||||||
Other Income (Expense), Net | ||||||||||||
“Other income (expense), net” in Corning’s consolidated statements of income includes the following (in millions): | ||||||||||||
Three months ended | Nine months ended | |||||||||||
September 30, | September 30, | |||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||
Royalty income from Samsung Corning Precision Materials | $ | 14 | $ | 43 | ||||||||
Foreign currency exchange and hedge gain (loss), net | $ | 744 | -33 | $ | 596 | 248 | ||||||
Net (gain) loss attributable to noncontrolling interests | -2 | 1 | ||||||||||
Other, net | -22 | 18 | -7 | 37 | ||||||||
Total | $ | 720 | $ | -1 | $ | 589 | $ | 329 | ||||
Beginning in the first quarter of 2014, due to the Acquisition and consolidation of Samsung Corning Precision Materials (now Corning Precision Materials), royalty income from Corning Precision Materials is no longer recognized in Corning’s consolidated statements of income. | ||||||||||||
Included in the line item Foreign currency exchange and hedge gain (loss), net, for the three and nine months ended September 30, 2014 and 2013 is the impact of 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 three and nine months ended September 30, 2014, we recorded net pre-tax gains on our yen-denominated hedging programs in the amounts of $764 million and $621 million, respectively. These gains were driven by the mark-to-market of the purchased collars and average forward contracts, and occurred due to the significant weakening of the Japanese yen in the third quarter of 2014. We recorded a net loss in the amount of $46 million in the third quarter of 2013 and a net gain in the amount of $206 million for the nine months ended September 30, 2013. The gross notional value outstanding for purchase collars and average rate forwards which hedge our exposure to the Japanese yen at September 30, 2014 and December 31, 2013 was $11 billion and $6.8 billion, respectively. | ||||||||||||
In the second quarter of 2014, following the Acquisition, we entered into a portfolio of zero cost collars to hedge our exposure to movements in the Korean won and its impact on our net earnings. These zero cost collars have a gross notional value outstanding at September 30, 2014 of $3 billion, and began settling quarterly in the third quarter of 2014 and will conclude at the end of 2015. The loss on the mark-to-market of these zero cost collars, which is also included in the line item Foreign currency exchange and hedge (loss) gain, net, was $25 million and $21 million, respectively, for the three and nine months ended September 30, 2014. | ||||||||||||
New Accounting Standards | ||||||||||||
In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. (ASU) 2014-09, Revenue from Contracts with Customers, as a new Topic, Accounting Standards Codification (ASC) Topic 606. The new revenue recognition standard provides a five-step analysis of transactions to determine when and how revenue is recognized. The core principle is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This ASU is effective for annual periods beginning after December 15, 2016, including interim periods within that reporting period, and shall be applied retrospectively to each period presented or as a cumulative-effect adjustment as of the date of adoption. Early adoption is not permitted. We are currently assessing the potential impact of adopting this ASU on our financial statements and related disclosures. | ||||||||||||
Note_2_Restructuring_Impairmen
Note 2 - Restructuring, Impairment and Other Charges | 9 Months Ended | ||||||||||||||
Sep. 30, 2014 | |||||||||||||||
Restructuring and Related Activities [Abstract] | ' | ||||||||||||||
Restructuring and Related Activities Disclosure [Text Block] | ' | ||||||||||||||
2. Restructuring, Impairment and Other Charges | |||||||||||||||
2014 Activity | |||||||||||||||
For the nine months ended September 30, 2014, we recorded charges of $51 million for workforce reductions, asset disposals and write-offs, and exit costs for restructuring activities in the Display Technologies, Optical Communications and Specialty Materials segments, with total cash expenditures estimated to be $11 million. | |||||||||||||||
In the fourth quarter of 2013, Corning implemented a global restructuring plan within several of our segments to better align our cost position. These actions consisted 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. | |||||||||||||||
The following table summarizes the restructuring, impairment and other charges for the nine months ended September 30, 2014 (in millions): | |||||||||||||||
Reserve at | Net | Non cash | Cash | Reserve at | |||||||||||
January 1, | charges/ | adjustments | payments | September 30, | |||||||||||
2014 | (reversals) | 2014 | |||||||||||||
Restructuring: | |||||||||||||||
Employee related costs | $ | 36 | $ | 32 | $ | -2 | $ | -27 | $ | 39 | |||||
Other charges | 8 | 5 | -1 | -3 | 9 | ||||||||||
Total restructuring activity | $ | 44 | $ | 37 | $ | -3 | $ | -30 | $ | 48 | |||||
Impairment charges and disposal of long-lived assets | $ | 14 | |||||||||||||
Total restructuring, impairment and other charges | $ | 51 | |||||||||||||
Cash payments for employee-related costs related to the 2014 and 2013 restructuring actions are expected to be substantially completed in 2015. | |||||||||||||||
2013 Activity | |||||||||||||||
The following table summarizes the restructuring reserve activity for the nine months ended September 30, 2013 (in millions): | |||||||||||||||
Reserve at | Net | Cash | Reserve at | ||||||||||||
January 1, | charges/ | payments | September 30, | ||||||||||||
2013 | (reversals) | 2013 | |||||||||||||
Restructuring: | |||||||||||||||
Employee-related costs | $ | 38 | $ | -1 | $ | -27 | $ | 10 | |||||||
Other charges (credits) | 4 | -3 | 1 | ||||||||||||
Total restructuring activity | $ | 42 | $ | -1 | $ | -30 | $ | 11 | |||||||
Cash payments for the above restructuring activities were substantially completed in 2013. | |||||||||||||||
Note_3_Commitments_Contingenci
Note 3 - Commitments, Contingencies, and Guarantees | 9 Months Ended |
Sep. 30, 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 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. | |
Under the Plan, Dow Corning has established and is funding a Settlement Trust and a Litigation Facility to provide a means for tort claimants to settle or litigate their claims. Inclusive of insurance, Dow Corning has paid approximately $1.8 billion to the Settlement Trust. As of September 30, 2014, Dow Corning had recorded a liability of $1.7 billion for future funding of the Settlement Trust. This amount reflects Dow Corning’s estimate of the remaining obligation to fund the resolution of breast implant claims pursuant to the Plan. Future filing behaviors and the remaining level of funding that will be required are uncertain. Actual funding amounts may be materially different than the recorded liability. Dow Corning, with the assistance of a third party advisor, is in the process of assessing the impact of recent information about potential future claims experience, and, as a result, it is reasonably possible Dow Corning’s estimate of the remaining obligation could materially change in the near term. Although Dow Corning is not yet able to estimate the impact of these matters, the implant liability currently reflects the maximum capped amount under the Plan; therefore, any future revision to the estimate is expected to result in a lower recorded liability. Any adjustment to Dow Corning’s breast implant liability would impact the Company’s earnings in proportion to the Company’s 50 percent ownership interest in Dow Corning. | |
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 September 30, 2014, Dow Corning has estimated the potential liability to these creditors to be within the range of $98 million to $320 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 $98 million, net of applicable tax benefits. | |
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 were 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 confirming an Amended PCC Plan of Reorganization (the “Amended PCC Plan”). On September 30, 2014, the United States District Court for the Western District of Pennsylvania (the “District Court”) affirmed the Bankruptcy Court’s decision confirming the Amended PCC Plan. The lone objector may appeal that decision to the United States Court of Appeals for the Third Circuit. If that occurs, it would likely take many months for the confirmation of the Amended PCC Plan to be finally affirmed. | |
Under the Amended PCC 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 Amended PCC Plan requires Corning to make: 1) one payment of $70 million one year from the date the Amended PCC 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. | |
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 Bankruptcy 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 September 30, 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 finally 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 $701 million at September 30, 2014, compared with an estimate of liability of $690 million at December 31, 2013. This $701 million liability is comprised of $261 million of the fair value of PCE, $290 million for the fixed series of payments, and $150 million for the non-PCC asbestos litigation, all referenced in the preceding paragraphs. With respect to the PCE liability, at September 30, 2014 and December 31, 2013, the fair value of $261 million of our interest in PCE significantly exceeded its carrying value of $164 million and $167 million, respectively. There have been no impairment indicators for our investment in PCE and we continue to recognize equity earnings of this affiliate. At the time Corning recorded this liability, it determined it lacked the ability to recover the carrying amount of its investment in PCC and its investment was other than temporarily impaired. As a result, we reduced our investment in PCC to zero. As the fair value in PCE is significantly higher than book value, management believes that the risk of an additional loss in an amount materially higher than the fair value of the liability is remote. With respect to the liability for other asbestos litigation, the liability for non-PCC claims was estimated based upon industry data for asbestos claims since Corning does not have recent claim history due to the injunction issued by the Bankruptcy Court. The estimated liability represents the undiscounted projection of claims and related legal fees over the next 20 years. The amount may need to be adjusted in future periods as more data becomes available; however, we cannot estimate any additional losses at this time. 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 September 30, 2014 and December 31, 2013, contingent guarantees totaled a notional value of $153 million and $151 million, respectively. We believe a significant majority of these contingent guarantees will expire without being funded. We also were contingently liable for purchase obligations of $300 million and $126 million, at September 30, 2014 and December 31, 2013, respectively. The increase in purchase obligations from December 31, 2013 to September 30, 2014, was attributable to the acquisition of the remaining interests of Samsung Corning Precision Materials, which increased the amount of obligations at September 30, 2014 by $166 million. | |
Product warranty liability accruals were considered insignificant at September 30, 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 15 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 September 30, 2014 and December 31, 2013, Corning had accrued approximately $28 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 | 9 Months Ended |
Sep. 30, 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 $3.6 billion at September 30, 2014 and $3.5 billion at December 31, 2013, compared to recorded book values of $3.2 billion at September 30, 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 | |
In the third quarter of 2014, we amended and restated our existing revolving credit facility. The amended facility provides a $2 billion unsecured multi-currency line of credit and expires on September 30, 2019. At September 30, 2014, there were no outstanding amounts on this credit facility. The facility includes affirmative and negative covenants that Corning must comply with, including a leverage (debt to capital ratio) financial covenant. As of September 30, 2014, we were in compliance with all of the covenants. | |
At September 30, 2014, Corning had $424 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 second quarter of 2013, the Company established a commercial paper program on a private placement basis, pursuant to which we may issue short-term, unsecured commercial paper notes up to a maximum aggregate principal amount outstanding at any time of $1 billion. Under this program, the Company may issue the notes from time to time and will use the proceeds for general corporate purposes. The maturities of the notes will vary, but may not exceed 390 days from the date of issue. The interest rates will vary based on market conditions and the ratings assigned to the notes by credit rating agencies at the time of issuance. The Company’s revolving credit facility is available to support obligations under the commercial paper program, if needed. | |
In the first quarter of 2013, we amended and restated our then-existing revolving credit facility. The 2013 amended facility provided a $1 billion unsecured multi-currency line of credit that would have expired in March 2018. This facility was amended and restated by the $2 billion facility entered into in the third quarter of 2014. | |
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 billion. The total amount repaid was approximately $500 million. Upon repayment, the facility was terminated. | |
Note_5_Income_Taxes
Note 5 - Income Taxes | 9 Months Ended | |||||||||||
Sep. 30, 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 | Nine months ended | |||||||||||
September 30, | September 30, | |||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||
Provision for income taxes | $ | -395 | $ | -141 | $ | -747 | $ | -366 | ||||
Effective tax rate | 28.00% | 25.70% | 33.50% | 19.20% | ||||||||
For the three and nine months ended September 30, 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 offset by discrete tax charges of $102 million related to South Korean withholding tax on a dividend paid by Samsung Corning Precision Materials to Corning wholly owned foreign subsidiaries, and $146 million attributable to a change in judgment on the realizability of certain foreign deferred taxes assets for the nine months ended September 30, 2014. | ||||||||||||
For the three and nine months ended September 30, 2013, the effective income tax rate differed from the U.S. statutory rate of 35% primarily due to the following benefits: | ||||||||||||
· | Rate differences on income (loss) of consolidated foreign companies; | |||||||||||
· | Equity in earnings of nonconsolidated affiliates reported in the financials, net of tax; and | |||||||||||
· | Tax incentives in foreign jurisdictions, primarily Taiwan. | |||||||||||
In addition to the items noted above, the tax provision for the nine months ended September 30, 2013 reflects a $54 million tax benefit to record the impact of the American Taxpayer Relief Act enacted on January 3, 2013 and made retroactive to 2012. | ||||||||||||
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 0.3 and 1.7 percentage points for the three months ended September 30, 2014 and 2013, respectively. The impact of the tax holiday on our effective tax rate is a reduction in the rate of 0.6 and 1.3 percentage points for the nine months ended September 30, 2014 and 2013, respectively. | ||||||||||||
In April 2011, South Korean tax authorities completed a tax audit of Samsung Corning Precision Materials. As a result, the tax authorities issued a pre-assessment of approximately $46 million for an asserted underpayment of withholding tax on dividends paid from September 2006 through March 2009. Our first level of appeal was denied on October 5, 2011 and a formal assessment was issued. The assessment was paid in full in the fourth quarter of 2011, allowing us to continue the appeal process. On May 30, 2014, the Korean Tax Tribunal issued a ruling partially in favor of Samsung Corning Precision Materials, resulting in an $18 million refund to Corning. Samsung Corning Precision Materials and Corning continue to appeal the remainder of the assessment and believe we will prevail when all available appeal remedies have been exhausted. | ||||||||||||
Corning continues to indefinitely reinvest substantially all of its foreign earnings, with the exception of approximately $9 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, derivative contract settlements 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 | 9 Months Ended | |||||||||||
Sep. 30, 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 | Nine months ended | |||||||||||
September 30, | September 30, | |||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||
Net income attributable to Corning Incorporated | $ | 1,014 | $ | 408 | $ | 1,484 | $ | 1,540 | ||||
Less: Series A convertible preferred stock dividend | 24 | 70 | ||||||||||
Net income available to common stockholders - basic | 990 | 408 | 1,414 | 1,540 | ||||||||
Plus: Series A convertible preferred stock dividend | 24 | 70 | ||||||||||
Net income available to common stockholders - diluted | $ | 1,014 | $ | 408 | $ | 1,484 | $ | 1,540 | ||||
Weighted-average common shares outstanding - basic | 1,284 | 1,454 | 1,315 | 1,465 | ||||||||
Effect of dilutive securities: | ||||||||||||
Stock options and other dilutive securities | 12 | 9 | 12 | 9 | ||||||||
Series A convertible preferred stock dividend | 115 | 109 | ||||||||||
Weighted-average common shares outstanding - diluted | 1,411 | 1,463 | 1,436 | 1,474 | ||||||||
Basic earnings per common share | $ | 0.77 | $ | 0.28 | $ | 1.08 | $ | 1.05 | ||||
Diluted earnings per common share | $ | 0.72 | $ | 0.28 | $ | 1.03 | $ | 1.04 | ||||
Anti-dilutive potential shares excluded from diluted earnings per common share: | ||||||||||||
Employee stock options and awards | 23 | 36 | 24 | 40 | ||||||||
Accelerated share repurchase forward contract | 4 | |||||||||||
Total | 23 | 36 | 28 | 40 | ||||||||
Note_7_AvailableforSale_Invest
Note 7 - Available-for-Sale Investments | 9 Months Ended | |||||||||||||
Sep. 30, 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 | |||||||||||||
September 30, | December 31, | September 30, | December 31, | |||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||
Bonds, notes and other securities: | ||||||||||||||
U.S. government and agencies | $ | 743 | $ | 530 | $ | 744 | $ | 531 | ||||||
Equity securities | $ | 6 | $ | 7 | ||||||||||
Total short-term investments | $ | 749 | $ | 530 | $ | 751 | $ | 531 | ||||||
Asset-backed securities | $ | 43 | $ | 46 | $ | 38 | $ | 38 | ||||||
Total long-term investments | $ | 43 | $ | 46 | $ | 38 | $ | 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 September 30, 2014 (in millions): | ||||||||||||||
Less than one year | $451 | |||||||||||||
Due in 1-5 years | 293 | |||||||||||||
Due in 5-10 years | ||||||||||||||
Due after 10 years (1) | 38 | |||||||||||||
Total | $782 | |||||||||||||
-1 | Includes $38 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 income in shareholders’ equity until realized. | ||||||||||||||
The following tables provide the fair value and gross unrealized losses of the Company’s investments aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at September 30, 2014 and December 31, 2013 (dollars in millions): | ||||||||||||||
September 30, 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 | 21 | $ | 38 | $ | -4 | $ | 38 | $ | -4 | |||||
Total long-term investments | 21 | $ | 38 | $ | -4 | $ | 38 | $ | -4 | |||||
-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 September 30, 2014 and December 31, 2013, for securities that have credit losses, an unrealized loss on other than temporary impaired securities of $4 million and $6 million, respectively, is recognized in accumulated other comprehensive income. | ||||||||||||||
Proceeds from sales and maturities of short-term investments totaled approximately $954 million and $1,449 million for the nine months ended September 30, 2014 and 2013, respectively. | ||||||||||||||
Note_8_Inventories
Note 8 - Inventories | 9 Months Ended | |||||
Sep. 30, 2014 | ||||||
Inventory Disclosure [Abstract] | ' | |||||
Inventory Disclosure [Text Block] | ' | |||||
8. Inventories | ||||||
Inventories comprise the following (in millions): | ||||||
September 30, | December 31, | |||||
2014 | 2013 | |||||
Finished goods | $ | 457 | $ | 486 | ||
Work in process | 245 | 234 | ||||
Raw materials and accessories | 323 | 311 | ||||
Supplies and packing materials | 302 | 239 | ||||
Total inventories | $ | 1,327 | $ | 1,270 | ||
Note_9_Investments
Note 9 - Investments | 9 Months Ended |
Sep. 30, 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 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 57.5%. Because this transaction did not result in a change in control based on the governing documents 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 acquisition of the common shares of Samsung Corning Precision Materials previously held by Samsung Display. As a result of these transactions, Corning became the owner of 100% of the common shares of Samsung Corning Precision Materials, which were 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 were 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 and nine months ended September 30, 2014 and prior year comparative periods: net sales $1,520 million and $4,545 million (2013: $1,427 million and $4,120 million), gross profit(1) $351 million and $1,071 million (2013: $265 million and $868 million) and net income attributable to Dow Corning $176 million and $476 million (2013: $117 million and $267 million). Dow Corning’s net income in the three and nine months ended September 30, 2014 includes an after-tax (loss) gain on a derivative instrument of $(20) million and $63 million, respectively (2013: $32 million and $32 million). Additionally, for the three months ended September 30, 2014, Dow Corning’s net income includes an energy tax credit of $17 million and foreign tax credit of $82 million. | |
(1)Gross profit for the three months ended September 30, 2014 includes R&D costs of $70 million (2013: $59 million) and selling expense of $3 million (2013: $4 million). Gross profit for the nine months ended September 30, 2014 includes R&D cost of $207 million (2013: $186 million) and selling expenses of $9 million (2013: $10 million). | |
Note_10_Acquisition
Note 10 - Acquisition | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Business Combinations [Abstract] | ' | ||||||||
Business Combination Disclosure [Text Block] | ' | ||||||||
10. Acquisition | |||||||||
On January 15, 2014, Corning consummated 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 remaining equity interest of Samsung Display’s shares. | |||||||||
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 shares of Preferred Stock 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 Preferred Stock. That measure is based on Level 2 inputs observable in the market such as Corning’s common stock price and dividend yield. | |||||||||
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 the 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 was estimated by applying an option pricing model using the Company’s projections of Corning Precision Materials’ future revenues. Changes in the fair value of the contingent consideration in future periods are valued using an option pricing model and are recorded in Corning’s results in the period of the change. In the third quarter of 2014, we recorded a pre-tax adjustment in Selling, general and administrative expenses in the amount of $77 million to reflect the increase in the fair value of the potential receipt of the contingent consideration. | |||||||||
The following table summarizes the total fair value of Samsung Corning Precision Materials at the acquisition date including the net consideration transferred to acquire the remaining 42.5% of Samsung Corning Precision Materials, the fair value of Corning’s non-controlling interest in Samsung Corning Precision Materials pre- and post-acquisition and the amount of the implied fair value of the total entity for the purpose of allocating the purchase price to the acquired net assets. | |||||||||
Net consideration applied to acquired assets | Samsung | Corning | Samsung | ||||||
Display | Incorporated | Corning | |||||||
Precision | |||||||||
Materials | |||||||||
Ownership percentage | 42.50% | 57.50% | 100% | ||||||
Fair value based on $1.9 billion consideration transferred | $ | 1,911 | $ | 2,588 | $ | 4,499 | |||
Less contingent consideration - receivable | -196 | -265 | -461 | ||||||
Net fair value of consideration @ 100% | 1,715 | 2,323 | 4,038 | ||||||
Corning’s loss on royalty contract | -136 | -184 | -320 | ||||||
Fair value post-acquisition | $ | 1,579 | $ | 2,139 | $ | 3,718 | |||
Corning’s fair value 57.5% post-acquisition | 2,139 | ||||||||
Total fair value at January 15, 2014 | $ | 3,718 | |||||||
The $1.9 billion fair value of consideration transferred for the remaining 42.5% interest in Samsung Corning Precision Materials plus the fair value of Corning’s pre-acquisition fair value less the contingent consideration due Corning as of the acquisition date results in a net fair value for the total entity of $4 billion. | |||||||||
As a result of the acquisition of Samsung Corning Precision Materials, Corning reacquired its technology license rights and effectively settled its pre-existing royalty contract with the acquired entity, Samsung Corning Precision Materials. With regard to the reacquired right, Corning engaged a third-party specialist to assist in assessing the fair value of this right and determined that the reacquired right had a value of zero. In addition, the Company assessed whether this royalty contract was favorable or unfavorable to Corning. It was determined that the contractual royalty rate of 3% as compared to the then current market rate of 12% was unfavorable to Corning. The effective settlement of the contract was valued using the Income Approach; specifically, a relief from royalty method. The amount by which the contract was unfavorable to Corning when compared to current market transactions for similar items resulted in a loss of $320 million which was recorded on the acquisition date, representing 100% of the loss on the effective settlement of the contract. There were no stated contractual settlement provisions or previously recorded assets or liabilities to consider when determining the value associated with the settlement. | |||||||||
Because the pre-existing contract was unfavorable to Corning, a portion of the consideration transferred was deemed to be applicable to the effective settlement of the royalty contract between Corning and the acquiree, Samsung Corning Precision Materials. The $320 million loss attributable to the settlement of the pre-existing arrangement was accounted for as a separate transaction from the business combination as follows: | |||||||||
· | At acquisition, since the contract with Samsung Corning Precision Materials was effectively settled, Corning recognized a loss of $320 million. Of the $320 million, $184 million effectively offset the portion of the gain on previously held equity investment attributable to Corning’s interest in the royalty contract. As a result, the pre-acquisition fair value of Corning’s 57.5% share of $2.3 billion decreased to the fair value of $2.1 billion post-acquisition; and | ||||||||
· | At acquisition, since the seller, Samsung Display, was a 42.5% shareholder of Samsung Corning Precision Materials, 42.5%, or $136 million, of the $320 million loss to effectively settle the contract reduced the consideration transferred to acquire Samsung Display’s interest in Samsung Corning Precision Materials. Accordingly, $136 million of the consideration transferred was treated separately from the purchase price, resulting in the implied consideration transferred of approximately $1.6 billion. | ||||||||
The net economic effect to Corning following the transaction was a net loss of $136 million, constituting a $320 million loss due to Corning’s unfavorable contract and its share of the favorable contract in Samsung Corning Precision Materials of $184 million. | |||||||||
The gain on the previously held equity investment was calculated based on the fair value of the entity immediately preceding the Acquisition. As the pre-existing contract was treated as a separate transaction, the pre-existing contract was not taken into consideration when calculating the gain on the previously held equity interest. | |||||||||
The net gain on previously owned equity was calculated as follows: | |||||||||
December 2013 Investment Balance | $ | 3,709 | |||||||
Dividend (1) | -1,574 | ||||||||
Other | -18 | ||||||||
Net investment book balance at 1/15/2014 | $ | 2,117 | |||||||
Fair value Samsung Corning Precision Materials | $ | 4,038 | |||||||
57.5% of Samsung Corning Precision Materials (2) | 2,323 | ||||||||
Working capital adjustment and other | 52 | ||||||||
57.5% of the pre-acquisition fair value of assets | $ | 2,375 | |||||||
Gain on previously held equity investment (2) | $ | 258 | |||||||
Translation gain | 136 | ||||||||
Net gain | $ | 394 | |||||||
-1 | In conjunction with the Framework Agreement, the parties agreed to have Samsung Corning Precision Materials distribute all cash and cash equivalents as a dividend to the shareholders of record as of December 31, 2013. The dividend was not part of the purchase price as the agreement was to distribute cash and cash equivalents as a dividend to the shareholders as soon as practicable. As such, at acquisition Corning did not have legal title to the cash to be distributed, although the dividend was distributed subsequent to the acquisition date. Therefore, the portion of Corning’s share of the $1.6 billion dividend received was accounted for in Corning’s consolidated financial statements as if the dividend occurred at or immediately prior to the date of acquisition at which time Samsung Corning Precision Materials was still an equity method investment in Corning’s consolidated financial statements. | ||||||||
-2 | As Corning was a 57.5% shareholder at the date of acquisition, immediately preceding the acquisition of Samsung Corning Precision Materials, Corning recognized an asset and respective gain as part of the calculation of its previously held equity investment which included approximately $184 million attributed to its economic interest in the royalty contract. | ||||||||
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 (3) | 116 | ||||||||
Property, plant and equipment (3) | 3,615 | ||||||||
Other current and non-current assets (3) | 74 | ||||||||
Debt – current | -32 | ||||||||
Accounts payable and accrued expenses (3) | -356 | ||||||||
Other current and non-current liabilities (3) | -307 | ||||||||
Total identified net assets (3) | 3,596 | ||||||||
Non-controlling interests | 15 | ||||||||
Fair value of Samsung Corning Precision Materials on acquisition date | -3,718 | ||||||||
Goodwill (2)(3) | $ | 107 | |||||||
-1 | Cash and cash equivalents are presented net of the 2014 dividend distributed 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 Technologies segment. | ||||||||
-3 | In the second and third quarters of 2014, the company recorded total measurement period adjustments of $39 million for the Acquisition of Corning Precision Materials primarily related to accrual of contingent liabilities and employee benefit obligations. | ||||||||
The goodwill is primarily attributable to the workforce of the acquired business and the synergies expected to result from the integration of Corning Precision Materials. Acquisition-related costs of $92 million in the nine months ended September 30, 2014 included costs for post-Acquisition compensation expense, legal, accounting, valuation and other professional services and were included in selling, general and administrative expenses in the Consolidated Statements of Income. Since the date of acquisition, the consolidation of Corning Precision Materials added $1,331 million to Net sales. The impact to Net income of the consolidation of Corning Precision Materials is impracticable to calculate due to the level of integration within the Display Technologies segment and the significant amount of estimates that would be required. | |||||||||
Unaudited Pro Forma Financial Information | |||||||||
The unaudited pro forma combined consolidated statement of income for the three and nine months ended September 30, 2013, was derived from the unaudited financial statements of Corning and Samsung Corning Precision Materials for the three and nine months ended September 30, 2013, and is presented to show how Corning might have appeared 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 SEC. 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. | |||||||||
Unaudited Pro Forma Financial Information (in millions, except per share data): | |||||||||
Three months | Nine months | ||||||||
ended | ended | ||||||||
September 30, | September 30, | ||||||||
2013 | 2013 | ||||||||
Net sales | $ | 2,554 | $ | 7,431 | |||||
Net income from continuing operations – basic | $ | 480 | $ | 1,837 | |||||
Net income from continuing operations – diluted | $ | 505 | $ | 1,910 | |||||
Earnings per common share attributable to common shareholders | |||||||||
Basic | $ | 0.33 | $ | 1.25 | |||||
Diluted | $ | 0.32 | $ | 1.2 | |||||
Shares used in computing per share amounts | |||||||||
Basic | $ | 1,454 | $ | 1,465 | |||||
Diluted | $ | 1,578 | $ | 1,589 | |||||
There were no other significant acquisitions for the nine months ended September 30, 2014, and for the year ended December 31, 2013. | |||||||||
Note_11_Property_Net_of_Accumu
Note 11 - Property, Net of Accumulated Depreciation | 9 Months Ended | |||||
Sep. 30, 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): | ||||||
September 30, | December 31, | |||||
2014 | 2013 | |||||
Land | $ | 474 | $ | 121 | ||
Buildings | 5,607 | 4,175 | ||||
Equipment | 14,089 | 12,286 | ||||
Construction in progress | 1,275 | 1,084 | ||||
21,445 | 17,666 | |||||
Accumulated depreciation | -8,412 | -7,865 | ||||
Total | $ | 13,033 | $ | 9,801 | ||
The increase in Property, net of accumulated depreciation in 2014 is primarily driven by the Acquisition of Samsung Corning Precision Materials, which added $3.6 billion to this balance at acquisition. | ||||||
In the three months ended September 30, 2014 and 2013, interest costs capitalized as part of Property, net of accumulated depreciation were $9 million and $8 million, respectively. In the nine months ended September 30, 2014 and 2013, interest costs capitalized as part of Property, net of accumulated depreciation, were $31 million and $25 million, respectively. | ||||||
Manufacturing equipment includes certain components of production equipment that are constructed of precious metals. At September 30, 2014 and December 31, 2013, the recorded value of precious metals totaled $3.2 billion and $2.2 billion, respectively. Depletion expense for precious metals in the three months ended September 30, 2014 and 2013 was $3 million and $4 million, respectively. Depletion expense for precious metals in the nine months ended September 30, 2014 and 2013 totaled $16 million and $15 million, respectively. The consolidation of Corning Precision Materials added approximately $1.1 billion in precious metals and approximately $3 million of depletion expense for the nine months ended September 30, 2014. | ||||||
Note_12_Goodwill_and_Other_Int
Note 12 - Goodwill and Other Intangible Assets | 9 Months Ended | |||||||||||||||||
Sep. 30, 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 September 30, 2014 and December 31, 2013 is as follows (in millions): | ||||||||||||||||||
Display | Optical | Specialty | Life | Total | ||||||||||||||
Technologies | Communications | Materials | Sciences | |||||||||||||||
Balance at December 31, 2013 | $ | 9 | $ | 240 | $ | 150 | $ | 603 | $ | 1,002 | ||||||||
Goodwill (1) | 68 | 54 | 122 | |||||||||||||||
Measurement period adjustments (2) | 39 | 39 | ||||||||||||||||
Foreign currency translation adjustment | -1 | -1 | -4 | -15 | -21 | |||||||||||||
Balance at September 30, 2014 | $ | 115 | 239 | 200 | 588 | 1,142 | ||||||||||||
(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. | |||||||||||||||||
(2) | In the second and third quarters of 2014, the company recorded measurement period adjustments of $39 million for the Acquisition of Samsung Corning Precision Materials primarily related to the accrual of contingent liabilities and employee benefit obligations. | |||||||||||||||||
Corning’s gross goodwill balances for the periods ended September 30, 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 September 30, 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): | ||||||||||||||||||
September 30, 2014 | December 31, 2013 | |||||||||||||||||
Gross | Accumulated | Net | Gross | Accumulated | Net | |||||||||||||
amortization | amortization | |||||||||||||||||
Amortized intangible assets: | ||||||||||||||||||
Patents, trademarks, and trade names | $ | 304 | $ | 147 | $ | 157 | $ | 290 | $ | 138 | $ | 152 | ||||||
Customer lists and other | 416 | 62 | 354 | 436 | 48 | 388 | ||||||||||||
Total | $ | 720 | $ | 209 | $ | 511 | $ | 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 decreased during the first nine months of 2014, primarily due to amortization of $25 million and foreign currency translation adjustments, offset by a small acquisition. | ||||||||||||||||||
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 | 9 Months Ended | |||||||||||||||||||||||
Sep. 30, 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 | Nine months ended | Three months ended | Nine months ended | |||||||||||||||||||||
September 30, | September 30, | September 30, | September 30, | |||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||
Service cost | $ | 30 | $ | 16 | $ | 62 | $ | 53 | $ | 4 | $ | 3 | $ | 9 | $ | 10 | ||||||||
Interest cost | 42 | 33 | 118 | 99 | 10 | 10 | 28 | 29 | ||||||||||||||||
Expected return on plan assets | -45 | -42 | -131 | -126 | ||||||||||||||||||||
Amortization of net loss | 3 | 11 | ||||||||||||||||||||||
Amortization of prior service cost (credit) | 1 | 1 | 4 | 3 | -3 | -1 | -5 | -4 | ||||||||||||||||
Recognition of actuarial gain | -41 | |||||||||||||||||||||||
Total pension and postretirement benefit expense (credit) | $ | 28 | $ | 8 | $ | 53 | $ | -12 | $ | 11 | $ | 15 | $ | 32 | $ | 46 | ||||||||
Note_14_Hedging_Activities
Note 14 - Hedging Activities | 9 Months Ended | |||||||||||||||||||||
Sep. 30, 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 $13.9 billion at September 30, 2014 (at December 31, 2013: $6.8 billion), including purchased and zero cost collars of $4.4 billion (at December 31, 2013: $5.9 billion) and average rate forwards of $9.5 billion (at December 31, 2013: $0.9 billion). With respect to the purchased collars and zero cost collars, the gross notional amount includes the value of both the put and call options. However, due to the nature of the purchased and zero cost collars, either the put or the call option can be exercised at maturity. As of September 30, 2014, the total net notional value of the purchased collars and zero cost collars was $2.3 billion (at December 31, 2013: $3 billion). | ||||||||||||||||||||||
The following tables summarize the gross notional amounts and respective fair values of Corning’s derivative financial instruments on a gross basis for September 30, 2014 and December 31, 2013 (in millions): | ||||||||||||||||||||||
U.S. Dollar | Asset derivatives | Liability derivatives | ||||||||||||||||||||
Gross notional amount | Balance | Fair value | Balance | Fair value | ||||||||||||||||||
sheet | sheet | |||||||||||||||||||||
2014 | 2013 | location | 2014 | 2013 | location | 2014 | 2013 | |||||||||||||||
Derivatives designated as hedging instruments | ||||||||||||||||||||||
Foreign exchange contracts | $ | 150 | $ | 433 | Other current assets | $ | 8 | $ | 8 | Other accrued liabilities | $ | -3 | ||||||||||
Other assets | 1 | |||||||||||||||||||||
Interest rate contracts | 550 | 550 | Other liabilities | $ | -18 | -28 | ||||||||||||||||
Derivatives not designated as hedging instruments | ||||||||||||||||||||||
Foreign exchange contracts | 1,118 | 804 | Other current assets | 17 | 20 | Other accrued liabilities | -11 | -3 | ||||||||||||||
Translated earnings contracts | 13,899 | 6,826 | Other current assets | 378 | 344 | Other accrued liabilities | -18 | -3 | ||||||||||||||
Other assets | 477 | 90 | Other liabilities | -8 | ||||||||||||||||||
Total derivatives | $ | 15,717 | $ | 8,613 | $ | 881 | $ | 462 | $ | -55 | $ | -37 | ||||||||||
The following table summarizes the effect of derivative financial instruments on Corning’s consolidated financial statements for the three months ended September 30, 2014 and 2013 (in millions): | ||||||||||||||||||||||
Effect of derivative instruments on the consolidated financial statements | ||||||||||||||||||||||
for the three months ended September 30 | ||||||||||||||||||||||
Derivatives in hedging relationships | Gain recognized | Location of gain | Gain reclassified from | |||||||||||||||||||
in other comprehensive | reclassified from | accumulated OCI into | ||||||||||||||||||||
income (OCI) | accumulated OCI into | income (effective) (1) | ||||||||||||||||||||
2014 | 2013 | income (effective) | 2014 | 2013 | ||||||||||||||||||
- | Sales | $ | 1 | |||||||||||||||||||
Interest rate contracts | $ | 3 | Cost of sales | 2 | $ | 9 | ||||||||||||||||
Foreign exchange contracts | $ | 11 | -3 | Other (expense) income, net | 17 | |||||||||||||||||
Total cash flow hedges | $ | 11 | $ | 0 | $ | 3 | $ | 26 | ||||||||||||||
-1 | The amount of hedge ineffectiveness for the three months ended September 30, 2014 and 2013 was insignificant. | |||||||||||||||||||||
The following table summarizes the effect of derivative financial instruments on Corning’s consolidated financial statements for the nine months ended September 30, 2014 and 2013 (in millions): | ||||||||||||||||||||||
Effect of derivative instruments on the consolidated financial statements | ||||||||||||||||||||||
for the nine months ended September 30 | ||||||||||||||||||||||
Derivatives in hedging relationships | Gain/(loss) recognized | Location of gain | Gain reclassified from | |||||||||||||||||||
in other comprehensive | reclassified from | accumulated OCI into | ||||||||||||||||||||
income (OCI) | accumulated OCI into | income (effective) (1) | ||||||||||||||||||||
2014 | 2013 | income (effective) | 2014 | 2013 | ||||||||||||||||||
- | Sales | $ | 1 | |||||||||||||||||||
Interest rate contracts | $ | 40 | Cost of sales | 2 | $ | 28 | ||||||||||||||||
Foreign exchange contracts | $ | 6 | 48 | Other (expense) income, net | 48 | |||||||||||||||||
Total cash flow hedges | $ | 6 | $ | 88 | $ | 3 | $ | 76 | ||||||||||||||
-1 | The amount of hedge ineffectiveness for the nine months ended September 30, 2014 and 2013 was insignificant. | |||||||||||||||||||||
The following table summarizes the effect on the consolidated financial statements relating to Corning’s derivative financial instruments (in millions): | ||||||||||||||||||||||
Undesignated derivatives | Location of gain/(loss) | Gain/(loss) recognized in income (1) | ||||||||||||||||||||
recognized in income | Three months ended | Nine months ended | ||||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||
Foreign exchange contracts – balance sheet | Other income (expense), net | $ | 21 | $ | -6 | $ | 16 | $ | 82 | |||||||||||||
Foreign exchange contracts – loans | Other income (expense), net | 5 | -2 | 6 | 83 | |||||||||||||||||
Translated earnings contracts | Other income (expense), net | 739 | -46 | 600 | 205 | |||||||||||||||||
Total undesignated | $ | 765 | $ | -54 | $ | 622 | $ | 370 | ||||||||||||||
-1 | Certain amounts for prior periods were reclassified to conform to the current year presentation. | |||||||||||||||||||||
Note_15_Fair_Value_Measurement
Note 15 - Fair Value Measurements | 9 Months Ended | |||||||||||
Sep. 30, 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 | ||||||||||||
September 30, | 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 | $ | 762 | $ | 762 | ||||||||
Other current assets (1) | $ | 404 | $ | 404 | ||||||||
Non-current assets: | ||||||||||||
Other assets (1)(2) | $ | 789 | $ | 516 | $ | 273 | ||||||
Current liabilities: | ||||||||||||
Other accrued liabilities (1) | $ | 29 | $ | 29 | ||||||||
Non-current liabilities: | ||||||||||||
Other liabilities (1) | $ | 26 | $ | 26 | ||||||||
-1 | Derivative assets and liabilities include foreign exchange contracts, including forwards, zero-cost and purchased collars, together with 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 and a contingent consideration asset which was measured by applying an option pricing model using projected future Corning Precision Materials’ revenue. | |||||||||||
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 contracts, including forwards and purchased collars, together with 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 Corning Precision Materials for the period between the 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 are valued using an option pricing model and are recorded in Corning’s results in the period of the change. In the third quarter of 2014, the fair value of the potential receipt of the contingent consideration in 2018 is estimated to be $273 million. Corning recorded a pre-tax adjustment in the amount of $77 million to reflect the increase in the fair value which is mainly due to the movement in foreign exchange rate. | ||||||||||||
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 | 9 Months Ended | |||||||||||
Sep. 30, 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 its 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. As of September 30, 2014, the Preferred Stock has not been converted, and none of the anti-dilution provisions have been triggered. 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 share repurchase program announced on April 24, 2013 (the “2013 Repurchase Program”), 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. Additionally, in 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 2013 Repurchase Program. The 2013 Repurchase Program was completed 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, 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. On May 28, 2014, the ASR agreement with Citi was completed, and Corning received an additional 8.7 million shares to settle the ASR agreement. In total, Corning purchased 61.2 million shares based on the average daily volume weighted-average price of Corning’s common stock during the term of the ASR agreement with Citi, less a discount. | ||||||||||||
In addition to the shares repurchased through the ASR agreement, in the three and nine months ended September 30, 2014, we repurchased 9.6 million and 27.6 million shares of common stock on the open market for approximately $200 million and $567 million, respectively, as part of the share repurchase program made effective on January 15, 2014. | ||||||||||||
Accumulated Other Comprehensive Income | ||||||||||||
In the nine months ended September 30, 2014 and 2013, the primary changes in accumulated other comprehensive income (“AOCI”) were related to the foreign currency translation component. A summary of changes in the foreign currency translation adjustment component of AOCI is as follows (in millions): | ||||||||||||
Three months ended | Nine months ended | |||||||||||
September 30, | September 30, | |||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||
Beginning balance | $ | 629 | $ | 373 | $ | 492 | $ | 1,174 | ||||
Other comprehensive (loss) income | -600 | 76 | -313 | -477 | ||||||||
Equity method affiliates | -76 | 241 | -226 | -7 | ||||||||
Net current-period other comprehensive (loss) income | -676 | 317 | -539 | -484 | ||||||||
Ending balance | $ | -47 | $ | 690 | $ | -47 | $ | 690 | ||||
In the first quarter of 2014, a $136 million cumulative foreign currency translation gain was released to income as a result of the step acquisition of Corning Precision Materials and included in the gain on previously held equity investment. | ||||||||||||
There were no material tax effects related to foreign currency translation gains and losses. | ||||||||||||
Note_17_Sharebased_Compensatio
Note 17 - Share-based Compensation | 9 Months Ended | |||||||||||||||
Sep. 30, 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 $19 million and $15 million for the three months ended September 30, 2014 and 2013, respectively, and approximately $47 million and $40 million for the nine months ended September 30, 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 a stock option is 10 years from the grant date. | ||||||||||||||||
The following table summarizes information concerning stock options outstanding including the related transactions under the stock option plans for the nine months ended September 30, 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 | 1,591 | 21.01 | ||||||||||||||
Exercised | (8,000) | 12.33 | ||||||||||||||
Forfeited and Expired | (606) | 17.30 | ||||||||||||||
Options Outstanding as of September 30, 2014 | 50,124 | 18.81 | 4.67 | $156,052 | ||||||||||||
Options Expected to Vest as of September 30, 2014 | 49,998 | 18.82 | 4.67 | 155,206 | ||||||||||||
Options Exercisable as of September 30, 2014 | 36,845 | 20.39 | 3.47 | 78,022 | ||||||||||||
The aggregate intrinsic value (market value of stock less option exercise price) in the preceding table represents the total pretax intrinsic value, based on the Company’s closing stock price on September 30, 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 September 30, 2014, there was approximately $15 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 $9 million and $7 million for the three months ended September 30, 2014 and 2013, respectively, and approximately $20 million and $18 million for the nine months ended September 30, 2014 and 2013, respectively. | ||||||||||||||||
Proceeds received from the exercise of stock options were $98 million and $54 million for the nine months ended September 30, 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 nine months ended September 30, 2014 and 2013 was approximately $60 million and $38 million, respectively, which is currently deductible for tax purposes. However, these tax benefits were not fully recognized due to net operating loss and credit carryforwards available to the Company. Refer to Note 5 (Income Taxes) to the consolidated financial statements. | ||||||||||||||||
The following range of inputs were used for the valuation of option grants under our Stock Option Plans: | ||||||||||||||||
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Expected volatility | 45.7 | - | 45.70% | 46.6 | - | 47.00% | 45.7 | - | 46.20% | 46.6 | - | 47.40% | ||||
Weighted-average volatility | 45.7 | - | 45.70% | 46.7 | - | 46.70% | 45.7 | - | 46.20% | 46.7 | - | 47.30% | ||||
Expected dividends | 1.98 | - | 1.98% | 2.68 | - | 2.68% | 1.9 | - | 2.09% | 2.68 | - | 3.02% | ||||
Risk-free rate | 2 | - | 2.00% | 1.8 | - | 2.20% | 2 | - | 2.20% | 0.8 | - | 2.20% | ||||
Average risk-free rate | 2 | - | 2.00% | 2.2 | - | 2.20% | 2 | - | 2.20% | 1.1 | - | 2.20% | ||||
Expected term (in years) | 7.2 | - | 7.2 | 5.8 | - | 7.2 | 7.2 | - | 7.2 | 5.8 | - | 7.1 | ||||
Pre-vesting departure rate | 0.5 | - | 0.50% | 0.4 | - | 4.10% | 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 and, 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 nine months ended September 30, 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 | 1,476 | 20.44 | ||||||||||||||
Vested | -1,587 | 17.34 | ||||||||||||||
Forfeited | -119 | 14.73 | ||||||||||||||
Non-vested shares and share units at September 30, 2014 | 5,878 | $ | 15.3 | |||||||||||||
As of September 30, 2014, there was approximately $31 million of unrecognized compensation cost related to non-vested time-based restricted stock and restricted stock units compensation arrangements granted under the Incentive Stock Plan. The cost is expected to be recognized over a weighted-average period of 1.7 years. Compensation cost related to time-based restricted stock and restricted stock units was approximately $10 million and $8 million for the three months ended September 30, 2014 and 2013, respectively, and approximately $27 million and $22 million for the nine months ended September 30, 2014 and 2013, respectively. | ||||||||||||||||
Note_18_Significant_Customers
Note 18 - Significant Customers | 9 Months Ended |
Sep. 30, 2014 | |
Significant Customers [Abstract] | ' |
Significant Customers [Text Block] | ' |
18. Significant Customers | |
For the three and nine months ended September 30, 2014, Corning had one customer that individually accounted for 10% or more of the Company’s consolidated net sales. For the three months ended September 30, 2013, Corning had one customer that individually accounted for 10% or more of the Company’s consolidated net sales. For the nine months ended September 30, 2013, Corning did not have a customer that individually accounted for 10% or more of the Company’s consolidated net sales. | |
Note_19_Reportable_Segments
Note 19 - Reportable Segments | 9 Months Ended | ||||||||||||||||||||
Sep. 30, 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. | ||||||||||||||||||||
· | 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 | |||||||||||||||||||||
September 30, 2014 | |||||||||||||||||||||
Net sales | $ | 1,009 | $ | 698 | $ | 282 | $ | 327 | $ | 214 | $ | 10 | $ | 2,540 | |||||||
Depreciation (1) | $ | 166 | $ | 38 | $ | 29 | $ | 30 | $ | 15 | $ | 9 | $ | 287 | |||||||
Amortization of purchased intangibles | $ | 3 | $ | 6 | $ | 9 | |||||||||||||||
Research, development and engineering expenses (2) | $ | 31 | $ | 35 | $ | 23 | $ | 35 | $ | 6 | $ | 43 | $ | 173 | |||||||
Restructuring, impairment & other charges | $ | 3 | $ | -3 | |||||||||||||||||
Equity in earnings of affiliated companies | $ | -3 | $ | 4 | $ | 1 | |||||||||||||||
Income tax (provision) benefit | $ | -136 | $ | -35 | $ | -28 | $ | -25 | $ | -9 | $ | 21 | $ | -212 | |||||||
Net income (loss) (3) | $ | 387 | $ | 68 | $ | 57 | $ | 43 | $ | 19 | $ | -41 | $ | 533 | |||||||
Display | Optical | Environmental | Specialty | Life | All | Total | |||||||||||||||
Technologies | Communications | Technologies | Materials | Sciences | Other | ||||||||||||||||
Three months ended | |||||||||||||||||||||
September 30, 2013 | |||||||||||||||||||||
Net sales | $ | 648 | $ | 650 | $ | 225 | $ | 326 | $ | 215 | $ | 3 | $ | 2,067 | |||||||
Depreciation (1) | $ | 121 | $ | 38 | $ | 30 | $ | 30 | $ | 14 | $ | 4 | $ | 237 | |||||||
Amortization of purchased intangibles | $ | 3 | $ | 5 | $ | 8 | |||||||||||||||
Research, development and engineering expenses (2) | $ | 23 | $ | 37 | $ | 23 | $ | 33 | $ | 5 | $ | 33 | $ | 154 | |||||||
Equity in earnings of affiliated companies | $ | 73 | $ | 1 | $ | 4 | $ | 78 | |||||||||||||
Income tax (provision) benefit | $ | -86 | $ | -32 | $ | -16 | $ | -32 | $ | -10 | $ | 16 | $ | -160 | |||||||
Net income (loss) (3) | $ | 318 | $ | 62 | $ | 32 | $ | 65 | $ | 20 | $ | -32 | $ | 465 | |||||||
Display | Optical | Environmental | Specialty | Life | All | Total | |||||||||||||||
Technologies | Communications | Technologies | Materials | Sciences | Other | ||||||||||||||||
Nine months ended | |||||||||||||||||||||
September 30, 2014 | |||||||||||||||||||||
Net sales | $ | 2,925 | $ | 1,977 | $ | 842 | $ | 886 | $ | 647 | $ | 34 | $ | 7,311 | |||||||
Depreciation (1) | $ | 510 | $ | 111 | $ | 89 | $ | 86 | $ | 46 | $ | 21 | $ | 863 | |||||||
Amortization of purchased intangibles | $ | 7 | $ | 18 | $ | 25 | |||||||||||||||
Research, development and engineering expenses (2) | $ | 117 | $ | 106 | $ | 65 | $ | 102 | $ | 16 | $ | 119 | $ | 525 | |||||||
Restructuring, impairment & other charges | $ | 42 | $ | 12 | $ | -3 | $ | 51 | |||||||||||||
Equity in earnings of affiliated companies | $ | -16 | $ | 2 | $ | 13 | $ | -1 | |||||||||||||
Income tax (provision) benefit | $ | -453 | $ | -85 | $ | -72 | $ | -62 | $ | -26 | $ | 59 | $ | -639 | |||||||
Net income (loss) (3) | $ | 878 | $ | 156 | $ | 147 | $ | 113 | $ | 54 | $ | -140 | $ | 1,208 | |||||||
Display | Optical | Environmental | Specialty | Life | All | Total | |||||||||||||||
Technologies | Communications | Technologies | Materials | Sciences | Other | ||||||||||||||||
Nine months ended | |||||||||||||||||||||
September 30, 2013 | |||||||||||||||||||||
Net sales | $ | 1,929 | $ | 1,721 | $ | 681 | $ | 885 | $ | 641 | $ | 6 | $ | 5,863 | |||||||
Depreciation (1) | $ | 362 | $ | 110 | $ | 91 | $ | 104 | $ | 42 | $ | 13 | $ | 722 | |||||||
Amortization of purchased intangibles | $ | 7 | $ | 16 | $ | 23 | |||||||||||||||
Research, development and engineering expenses (2) | $ | 60 | $ | 103 | $ | 68 | $ | 108 | $ | 15 | $ | 104 | $ | 458 | |||||||
Equity in earnings of affiliated companies | $ | 314 | $ | 2 | $ | 1 | $ | 4 | $ | 13 | $ | 334 | |||||||||
Income tax (provision) benefit | $ | -250 | $ | -87 | $ | -47 | $ | -79 | $ | -28 | $ | 46 | $ | -445 | |||||||
Net income (loss) (3) | $ | 1,004 | $ | 173 | $ | 95 | $ | 162 | $ | 57 | $ | -91 | $ | 1,400 | |||||||
-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 | Nine months ended | ||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||
Net income of reportable segments | $ | 574 | $ | 497 | $ | 1,348 | $ | 1,491 | |||||||||||||
Non-reportable segments | -41 | -32 | -140 | -91 | |||||||||||||||||
Unallocated amounts: | |||||||||||||||||||||
Net financing costs (1) | -27 | -3 | -86 | -65 | |||||||||||||||||
Stock-based compensation expense | -19 | -15 | -47 | -40 | |||||||||||||||||
Exploratory research | -24 | -29 | -75 | -80 | |||||||||||||||||
Corporate contributions | -19 | -7 | -35 | -32 | |||||||||||||||||
Equity in earnings of affiliated companies, net of impairments (2) | 94 | 59 | 245 | 142 | |||||||||||||||||
Asbestos settlement | -5 | -5 | -11 | -13 | |||||||||||||||||
Purchased collars and average rate forward contracts, net of tax | 478 | -46 | 405 | 206 | |||||||||||||||||
Other corporate items (3) | 3 | -11 | -120 | 22 | |||||||||||||||||
Net income | $ | 1,014 | $ | 408 | $ | 1,484 | $ | 1,540 | |||||||||||||
-1 | Net financing costs include interest income, interest expense and investment gains associated with benefit plans. | ||||||||||||||||||||
-2 | Primarily represents the equity earnings of Dow Corning, which, for the three months ended September 30, 2014, includes our portion of a mark-to-market loss on a derivative instrument of $(8) million (after-tax), an energy tax credit of $8 million (after-tax), and a foreign tax credit of $38 million (after-tax). For the nine months ended September 30, 2014, the equity earnings of Dow Corning included our portion of a mark-to-market gain on a derivative instrument of $29 million (after-tax). For the three and nine months ended September 30, 2013, the equity earnings of Dow Corning includes our portion of gains in the amounts of approximately $30 million for the resolution of contract disputes against customers relating to enforcement of long-term supply agreements and $16 million for the positive impact of the settlement of a derivative, along with a charge of $4 million related to the impact of a tax valuation allowance. Also included in the nine months ended September 30, 2013, an $11 million restructuring charge for our share of costs for headcount reductions and asset write-offs. | ||||||||||||||||||||
-3 | For the nine months ended September 30, 2013, Corning recorded a $54 million tax benefit for the impact of the American Taxpayer Relief Act enacted on January 3, 2013 and made retroactive to 2012. | ||||||||||||||||||||
The sales of each of our reportable segments are concentrated across a relatively small number of customers. In the three months ended September 30, 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, three customers accounted for 60% of total segment sales. | ||||||||||||||||||||
· | In the Optical Communications segment, one customer accounted for 13% of total segment sales. | ||||||||||||||||||||
· | In the Environmental Technologies segment, three customers accounted for 89% 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 47% of total segment sales. | ||||||||||||||||||||
In the nine months ended September 30, 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, three customers accounted for 61% of total segment sales. | ||||||||||||||||||||
· | In the Optical Communications segment, one 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 48% of total segment sales. | ||||||||||||||||||||
· | In the Life Sciences segment, two customers accounted for 45% 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) | 9 Months Ended | |||||||||||
Sep. 30, 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 Co., Ltd. (“Corning Precision Materials”), the former Samsung Corning Precision Materials organization and operations were integrated into the Display Technologies segment in the first quarter of 2014. | ||||||||||||
Other Income and Other Expense Disclosure [Text Block] | ' | |||||||||||
Other Income (Expense), Net | ||||||||||||
“Other income (expense), net” in Corning’s consolidated statements of income includes the following (in millions): | ||||||||||||
Three months ended | Nine months ended | |||||||||||
September 30, | September 30, | |||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||
Royalty income from Samsung Corning Precision Materials | $ | 14 | $ | 43 | ||||||||
Foreign currency exchange and hedge gain (loss), net | $ | 744 | -33 | $ | 596 | 248 | ||||||
Net (gain) loss attributable to noncontrolling interests | -2 | 1 | ||||||||||
Other, net | -22 | 18 | -7 | 37 | ||||||||
Total | $ | 720 | $ | -1 | $ | 589 | $ | 329 | ||||
Beginning in the first quarter of 2014, due to the Acquisition and consolidation of Samsung Corning Precision Materials (now Corning Precision Materials), royalty income from Corning Precision Materials is no longer recognized in Corning’s consolidated statements of income. | ||||||||||||
Included in the line item Foreign currency exchange and hedge gain (loss), net, for the three and nine months ended September 30, 2014 and 2013 is the impact of 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 three and nine months ended September 30, 2014, we recorded net pre-tax gains on our yen-denominated hedging programs in the amounts of $764 million and $621 million, respectively. These gains were driven by the mark-to-market of the purchased collars and average forward contracts, and occurred due to the significant weakening of the Japanese yen in the third quarter of 2014. We recorded a net loss in the amount of $46 million in the third quarter of 2013 and a net gain in the amount of $206 million for the nine months ended September 30, 2013. The gross notional value outstanding for purchase collars and average rate forwards which hedge our exposure to the Japanese yen at September 30, 2014 and December 31, 2013 was $11 billion and $6.8 billion, respectively. | ||||||||||||
In the second quarter of 2014, following the Acquisition, we entered into a portfolio of zero cost collars to hedge our exposure to movements in the Korean won and its impact on our net earnings. These zero cost collars have a gross notional value outstanding at September 30, 2014 of $3 billion, and began settling quarterly in the third quarter of 2014 and will conclude at the end of 2015. The loss on the mark-to-market of these zero cost collars, which is also included in the line item Foreign currency exchange and hedge (loss) gain, net, was $25 million and $21 million, respectively, for the three and nine months ended September 30, 2014. | ||||||||||||
New Accounting Pronouncements, Policy [Policy Text Block] | ' | |||||||||||
New Accounting Standards | ||||||||||||
In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. (ASU) 2014-09, Revenue from Contracts with Customers, as a new Topic, Accounting Standards Codification (ASC) Topic 606. The new revenue recognition standard provides a five-step analysis of transactions to determine when and how revenue is recognized. The core principle is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This ASU is effective for annual periods beginning after December 15, 2016, including interim periods within that reporting period, and shall be applied retrospectively to each period presented or as a cumulative-effect adjustment as of the date of adoption. Early adoption is not permitted. We are currently assessing the potential impact of adopting this ASU on our financial statements and related disclosures. |
Note_1_Significant_Accounting_1
Note 1 - Significant Accounting Policies (Tables) | 9 Months Ended | |||||||||||
Sep. 30, 2014 | ||||||||||||
Accounting Policies [Abstract] | ' | |||||||||||
Schedule of Other Nonoperating Income (Expense) [Table Text Block] | ' | |||||||||||
Three months ended | Nine months ended | |||||||||||
September 30, | September 30, | |||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||
Royalty income from Samsung Corning Precision Materials | $ | 14 | $ | 43 | ||||||||
Foreign currency exchange and hedge gain (loss), net | $ | 744 | -33 | $ | 596 | 248 | ||||||
Net (gain) loss attributable to noncontrolling interests | -2 | 1 | ||||||||||
Other, net | -22 | 18 | -7 | 37 | ||||||||
Total | $ | 720 | $ | -1 | $ | 589 | $ | 329 |
Note_2_Restructuring_Impairmen1
Note 2 - Restructuring, Impairment and Other Charges (Tables) | 9 Months Ended | ||||||||||||||||||||||||||
Sep. 30, 2014 | Sep. 30, 2013 | ||||||||||||||||||||||||||
Restructuring and Related Activities [Abstract] | ' | ' | |||||||||||||||||||||||||
Schedule of Restructuring Reserve by Type of Cost [Table Text Block] | ' | ' | |||||||||||||||||||||||||
Reserve at | Net | Non cash | Cash | Reserve at | Reserve at | Net | Cash | Reserve at | |||||||||||||||||||
January 1, | charges/ | adjustments | payments | September 30, | January 1, | charges/ | payments | September 30, | |||||||||||||||||||
2014 | (reversals) | 2014 | 2013 | (reversals) | 2013 | ||||||||||||||||||||||
Restructuring: | Restructuring: | ||||||||||||||||||||||||||
Employee related costs | $ | 36 | $ | 32 | $ | -2 | $ | -27 | $ | 39 | Employee-related costs | $ | 38 | $ | -1 | $ | -27 | $ | 10 | ||||||||
Other charges | 8 | 5 | -1 | -3 | 9 | Other charges (credits) | 4 | -3 | 1 | ||||||||||||||||||
Total restructuring activity | $ | 44 | $ | 37 | $ | -3 | $ | -30 | $ | 48 | Total restructuring activity | $ | 42 | $ | -1 | $ | -30 | $ | 11 | ||||||||
Impairment charges and disposal of long-lived assets | $ | 14 | |||||||||||||||||||||||||
Total restructuring, impairment and other charges | $ | 51 |
Note_5_Income_Taxes_Tables
Note 5 - Income Taxes (Tables) | 9 Months Ended | |||||||||||
Sep. 30, 2014 | ||||||||||||
Income Tax Disclosure [Abstract] | ' | |||||||||||
Schedule of Income Tax Provisions and Rates [Table Text Block] | ' | |||||||||||
Three months ended | Nine months ended | |||||||||||
September 30, | September 30, | |||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||
Provision for income taxes | $ | -395 | $ | -141 | $ | -747 | $ | -366 | ||||
Effective tax rate | 28.00% | 25.70% | 33.50% | 19.20% |
Note_6_Earnings_Per_Common_Sha1
Note 6 - Earnings Per Common Share (Tables) | 9 Months Ended | |||||||||||
Sep. 30, 2014 | ||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | ' | |||||||||||
Three months ended | Nine months ended | |||||||||||
September 30, | September 30, | |||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||
Net income attributable to Corning Incorporated | $ | 1,014 | $ | 408 | $ | 1,484 | $ | 1,540 | ||||
Less: Series A convertible preferred stock dividend | 24 | 70 | ||||||||||
Net income available to common stockholders - basic | 990 | 408 | 1,414 | 1,540 | ||||||||
Plus: Series A convertible preferred stock dividend | 24 | 70 | ||||||||||
Net income available to common stockholders - diluted | $ | 1,014 | $ | 408 | $ | 1,484 | $ | 1,540 | ||||
Weighted-average common shares outstanding - basic | 1,284 | 1,454 | 1,315 | 1,465 | ||||||||
Effect of dilutive securities: | ||||||||||||
Stock options and other dilutive securities | 12 | 9 | 12 | 9 | ||||||||
Series A convertible preferred stock dividend | 115 | 109 | ||||||||||
Weighted-average common shares outstanding - diluted | 1,411 | 1,463 | 1,436 | 1,474 | ||||||||
Basic earnings per common share | $ | 0.77 | $ | 0.28 | $ | 1.08 | $ | 1.05 | ||||
Diluted earnings per common share | $ | 0.72 | $ | 0.28 | $ | 1.03 | $ | 1.04 | ||||
Anti-dilutive potential shares excluded from diluted earnings per common share: | ||||||||||||
Employee stock options and awards | 23 | 36 | 24 | 40 | ||||||||
Accelerated share repurchase forward contract | 4 | |||||||||||
Total | 23 | 36 | 28 | 40 |
Note_7_AvailableforSale_Invest1
Note 7 - Available-for-Sale Investments (Tables) | 9 Months Ended | |||||||||||||
Sep. 30, 2014 | ||||||||||||||
Available For Sale Investments [Abstract] | ' | |||||||||||||
Schedule of Available-for-sale Securities Reconciliation [Table Text Block] | ' | |||||||||||||
Amortized cost | Fair value | |||||||||||||
September 30, | December 31, | September 30, | December 31, | |||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||
Bonds, notes and other securities: | ||||||||||||||
U.S. government and agencies | $ | 743 | $ | 530 | $ | 744 | $ | 531 | ||||||
Equity securities | $ | 6 | $ | 7 | ||||||||||
Total short-term investments | $ | 749 | $ | 530 | $ | 751 | $ | 531 | ||||||
Asset-backed securities | $ | 43 | $ | 46 | $ | 38 | $ | 38 | ||||||
Total long-term investments | $ | 43 | $ | 46 | $ | 38 | $ | 38 | ||||||
Investments Classified by Contractual Maturity Date [Table Text Block] | ' | |||||||||||||
Less than one year | $451 | |||||||||||||
Due in 1-5 years | 293 | |||||||||||||
Due in 5-10 years | ||||||||||||||
Due after 10 years (1) | 38 | |||||||||||||
Total | $782 | |||||||||||||
Schedule of Fair Value and Gross Unrealized Losses of Investments by Category and Length of Time in Continuous Unrealized Loss Position [Table Text Block] | ' | |||||||||||||
September 30, 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 | 21 | $ | 38 | $ | -4 | $ | 38 | $ | -4 | |||||
Total long-term investments | 21 | $ | 38 | $ | -4 | $ | 38 | $ | -4 | |||||
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) | 9 Months Ended | |||||
Sep. 30, 2014 | ||||||
Inventory Disclosure [Abstract] | ' | |||||
Schedule of Inventory, Current [Table Text Block] | ' | |||||
September 30, | December 31, | |||||
2014 | 2013 | |||||
Finished goods | $ | 457 | $ | 486 | ||
Work in process | 245 | 234 | ||||
Raw materials and accessories | 323 | 311 | ||||
Supplies and packing materials | 302 | 239 | ||||
Total inventories | $ | 1,327 | $ | 1,270 |
Note_10_Acquisition_Tables
Note 10 - Acquisition (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Business Combinations [Abstract] | ' | ||||||||
Schedule of Business Acquisition Net Consideration Applied to Acquired Assets [Table Text Block] | ' | ||||||||
Net consideration applied to acquired assets | Samsung | Corning | Samsung | ||||||
Display | Incorporated | Corning | |||||||
Precision | |||||||||
Materials | |||||||||
Ownership percentage | 42.50% | 57.50% | 100% | ||||||
Fair value based on $1.9 billion consideration transferred | $ | 1,911 | $ | 2,588 | $ | 4,499 | |||
Less contingent consideration - receivable | -196 | -265 | -461 | ||||||
Net fair value of consideration @ 100% | 1,715 | 2,323 | 4,038 | ||||||
Corning’s loss on royalty contract | -136 | -184 | -320 | ||||||
Fair value post-acquisition | $ | 1,579 | $ | 2,139 | $ | 3,718 | |||
Corning’s fair value 57.5% post-acquisition | 2,139 | ||||||||
Total fair value at January 15, 2014 | $ | 3,718 | |||||||
Schedule of Business Acquisitions, by Acquisition [Table Text Block] | ' | ||||||||
December 2013 Investment Balance | $ | 3,709 | |||||||
Dividend (1) | -1,574 | ||||||||
Other | -18 | ||||||||
Net investment book balance at 1/15/2014 | $ | 2,117 | |||||||
Fair value Samsung Corning Precision Materials | $ | 4,038 | |||||||
57.5% of Samsung Corning Precision Materials (2) | 2,323 | ||||||||
Working capital adjustment and other | 52 | ||||||||
57.5% of the pre-acquisition fair value of assets | $ | 2,375 | |||||||
Gain on previously held equity investment (2) | $ | 258 | |||||||
Translation gain | 136 | ||||||||
Net gain | $ | 394 | |||||||
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | ' | ||||||||
Cash and cash equivalents (1) | $ | 133 | |||||||
Trade receivables | 353 | ||||||||
Inventory (3) | 116 | ||||||||
Property, plant and equipment (3) | 3,615 | ||||||||
Other current and non-current assets (3) | 74 | ||||||||
Debt – current | -32 | ||||||||
Accounts payable and accrued expenses (3) | -356 | ||||||||
Other current and non-current liabilities (3) | -307 | ||||||||
Total identified net assets (3) | 3,596 | ||||||||
Non-controlling interests | 15 | ||||||||
Fair value of Samsung Corning Precision Materials on acquisition date | -3,718 | ||||||||
Goodwill (2)(3) | $ | 107 | |||||||
Business Acquisition, Pro Forma Information [Table Text Block] | ' | ||||||||
Three months | Nine months | ||||||||
ended | ended | ||||||||
September 30, | September 30, | ||||||||
2013 | 2013 | ||||||||
Net sales | $ | 2,554 | $ | 7,431 | |||||
Net income from continuing operations – basic | $ | 480 | $ | 1,837 | |||||
Net income from continuing operations – diluted | $ | 505 | $ | 1,910 | |||||
Earnings per common share attributable to common shareholders | |||||||||
Basic | $ | 0.33 | $ | 1.25 | |||||
Diluted | $ | 0.32 | $ | 1.2 | |||||
Shares used in computing per share amounts | |||||||||
Basic | $ | 1,454 | $ | 1,465 | |||||
Diluted | $ | 1,578 | $ | 1,589 |
Note_11_Property_Net_of_Accumu1
Note 11 - Property, Net of Accumulated Depreciation (Tables) | 9 Months Ended | |||||
Sep. 30, 2014 | ||||||
Property, Plant and Equipment [Abstract] | ' | |||||
Property, Plant and Equipment [Table Text Block] | ' | |||||
September 30, | December 31, | |||||
2014 | 2013 | |||||
Land | $ | 474 | $ | 121 | ||
Buildings | 5,607 | 4,175 | ||||
Equipment | 14,089 | 12,286 | ||||
Construction in progress | 1,275 | 1,084 | ||||
21,445 | 17,666 | |||||
Accumulated depreciation | -8,412 | -7,865 | ||||
Total | $ | 13,033 | $ | 9,801 |
Note_12_Goodwill_and_Other_Int1
Note 12 - Goodwill and Other Intangible Assets (Tables) | 9 Months Ended | |||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||||||||
Schedule of Goodwill [Table Text Block] | ' | |||||||||||||||||
Display | Optical | Specialty | Life | Total | ||||||||||||||
Technologies | Communications | Materials | Sciences | |||||||||||||||
Balance at December 31, 2013 | $ | 9 | $ | 240 | $ | 150 | $ | 603 | $ | 1,002 | ||||||||
Goodwill (1) | 68 | 54 | 122 | |||||||||||||||
Measurement period adjustments (2) | 39 | 39 | ||||||||||||||||
Foreign currency translation adjustment | -1 | -1 | -4 | -15 | -21 | |||||||||||||
Balance at September 30, 2014 | $ | 115 | 239 | 200 | 588 | 1,142 | ||||||||||||
Schedule of Finite-Lived Intangible Assets [Table Text Block] | ' | |||||||||||||||||
September 30, 2014 | December 31, 2013 | |||||||||||||||||
Gross | Accumulated | Net | Gross | Accumulated | Net | |||||||||||||
amortization | amortization | |||||||||||||||||
Amortized intangible assets: | ||||||||||||||||||
Patents, trademarks, and trade names | $ | 304 | $ | 147 | $ | 157 | $ | 290 | $ | 138 | $ | 152 | ||||||
Customer lists and other | 416 | 62 | 354 | 436 | 48 | 388 | ||||||||||||
Total | $ | 720 | $ | 209 | $ | 511 | $ | 726 | $ | 186 | $ | 540 |
Note_13_Employee_Retirement_Pl1
Note 13 - Employee Retirement Plans (Tables) | 9 Months Ended | |||||||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | |||||||||||||||||||||||
Schedule of Net Benefit Costs [Table Text Block] | ' | |||||||||||||||||||||||
Pension benefits | Postretirement benefits | |||||||||||||||||||||||
Three months ended | Nine months ended | Three months ended | Nine months ended | |||||||||||||||||||||
September 30, | September 30, | September 30, | September 30, | |||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||
Service cost | $ | 30 | $ | 16 | $ | 62 | $ | 53 | $ | 4 | $ | 3 | $ | 9 | $ | 10 | ||||||||
Interest cost | 42 | 33 | 118 | 99 | 10 | 10 | 28 | 29 | ||||||||||||||||
Expected return on plan assets | -45 | -42 | -131 | -126 | ||||||||||||||||||||
Amortization of net loss | 3 | 11 | ||||||||||||||||||||||
Amortization of prior service cost (credit) | 1 | 1 | 4 | 3 | -3 | -1 | -5 | -4 | ||||||||||||||||
Recognition of actuarial gain | -41 | |||||||||||||||||||||||
Total pension and postretirement benefit expense (credit) | $ | 28 | $ | 8 | $ | 53 | $ | -12 | $ | 11 | $ | 15 | $ | 32 | $ | 46 |
Note_14_Hedging_Activities_Tab
Note 14 - Hedging Activities (Tables) | 9 Months Ended | |||||||||||||||||||||
Sep. 30, 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 | ||||||||||||||||||
sheet | sheet | |||||||||||||||||||||
2014 | 2013 | location | 2014 | 2013 | location | 2014 | 2013 | |||||||||||||||
Derivatives designated as hedging instruments | ||||||||||||||||||||||
Foreign exchange contracts | $ | 150 | $ | 433 | Other current assets | $ | 8 | $ | 8 | Other accrued liabilities | $ | -3 | ||||||||||
Other assets | 1 | |||||||||||||||||||||
Interest rate contracts | 550 | 550 | Other liabilities | $ | -18 | -28 | ||||||||||||||||
Derivatives not designated as hedging instruments | ||||||||||||||||||||||
Foreign exchange contracts | 1,118 | 804 | Other current assets | 17 | 20 | Other accrued liabilities | -11 | -3 | ||||||||||||||
Translated earnings contracts | 13,899 | 6,826 | Other current assets | 378 | 344 | Other accrued liabilities | -18 | -3 | ||||||||||||||
Other assets | 477 | 90 | Other liabilities | -8 | ||||||||||||||||||
Total derivatives | $ | 15,717 | $ | 8,613 | $ | 881 | $ | 462 | $ | -55 | $ | -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 three months ended September 30 | ||||||||||||||||||||||
Derivatives in hedging relationships | Gain recognized | Location of gain | Gain reclassified from | |||||||||||||||||||
in other comprehensive | reclassified from | accumulated OCI into | ||||||||||||||||||||
income (OCI) | accumulated OCI into | income (effective) (1) | ||||||||||||||||||||
2014 | 2013 | income (effective) | 2014 | 2013 | ||||||||||||||||||
- | Sales | $ | 1 | |||||||||||||||||||
Interest rate contracts | $ | 3 | Cost of sales | 2 | $ | 9 | ||||||||||||||||
Foreign exchange contracts | $ | 11 | -3 | Other (expense) income, net | 17 | |||||||||||||||||
Total cash flow hedges | $ | 11 | $ | 0 | $ | 3 | $ | 26 | ||||||||||||||
Effect of derivative instruments on the consolidated financial statements | ||||||||||||||||||||||
for the nine months ended September 30 | ||||||||||||||||||||||
Derivatives in hedging relationships | Gain/(loss) recognized | Location of gain | Gain reclassified from | |||||||||||||||||||
in other comprehensive | reclassified from | accumulated OCI into | ||||||||||||||||||||
income (OCI) | accumulated OCI into | income (effective) (1) | ||||||||||||||||||||
2014 | 2013 | income (effective) | 2014 | 2013 | ||||||||||||||||||
- | Sales | $ | 1 | |||||||||||||||||||
Interest rate contracts | $ | 40 | Cost of sales | 2 | $ | 28 | ||||||||||||||||
Foreign exchange contracts | $ | 6 | 48 | Other (expense) income, net | 48 | |||||||||||||||||
Total cash flow hedges | $ | 6 | $ | 88 | $ | 3 | $ | 76 | ||||||||||||||
Not Designated as Hedging Instrument [Member] | ' | |||||||||||||||||||||
Note 14 - Hedging Activities (Tables) [Line Items] | ' | |||||||||||||||||||||
Schedule of Derivative Instruments, Effect on Other Comprehensive Income (Loss) [Table Text Block] | ' | |||||||||||||||||||||
Undesignated derivatives | Location of gain/(loss) | Gain/(loss) recognized in income (1) | ||||||||||||||||||||
recognized in income | Three months ended | Nine months ended | ||||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||
Foreign exchange contracts – balance sheet | Other income (expense), net | $ | 21 | $ | -6 | $ | 16 | $ | 82 | |||||||||||||
Foreign exchange contracts – loans | Other income (expense), net | 5 | -2 | 6 | 83 | |||||||||||||||||
Translated earnings contracts | Other income (expense), net | 739 | -46 | 600 | 205 | |||||||||||||||||
Total undesignated | $ | 765 | $ | -54 | $ | 622 | $ | 370 |
Note_15_Fair_Value_Measurement1
Note 15 - Fair Value Measurements (Tables) | 9 Months Ended | |||||||||||
Sep. 30, 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 | ||||||||||||
September 30, | 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 | $ | 762 | $ | 762 | ||||||||
Other current assets (1) | $ | 404 | $ | 404 | ||||||||
Non-current assets: | ||||||||||||
Other assets (1)(2) | $ | 789 | $ | 516 | $ | 273 | ||||||
Current liabilities: | ||||||||||||
Other accrued liabilities (1) | $ | 29 | $ | 29 | ||||||||
Non-current liabilities: | ||||||||||||
Other liabilities (1) | $ | 26 | $ | 26 | ||||||||
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_16_Shareholders_Equity_Ta
Note 16 - Shareholders' Equity (Tables) (Accumulated Translation Adjustment [Member]) | 9 Months Ended | |||||||||||
Sep. 30, 2014 | ||||||||||||
Accumulated Translation Adjustment [Member] | ' | |||||||||||
Note 16 - Shareholders' Equity (Tables) [Line Items] | ' | |||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | ' | |||||||||||
Three months ended | Nine months ended | |||||||||||
September 30, | September 30, | |||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||
Beginning balance | $ | 629 | $ | 373 | $ | 492 | $ | 1,174 | ||||
Other comprehensive (loss) income | -600 | 76 | -313 | -477 | ||||||||
Equity method affiliates | -76 | 241 | -226 | -7 | ||||||||
Net current-period other comprehensive (loss) income | -676 | 317 | -539 | -484 | ||||||||
Ending balance | $ | -47 | $ | 690 | $ | -47 | $ | 690 |
Note_17_Sharebased_Compensatio1
Note 17 - Share-based Compensation (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 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 | 1,591 | 21.01 | ||||||||||||||
Exercised | (8,000) | 12.33 | ||||||||||||||
Forfeited and Expired | (606) | 17.30 | ||||||||||||||
Options Outstanding as of September 30, 2014 | 50,124 | 18.81 | 4.67 | $156,052 | ||||||||||||
Options Expected to Vest as of September 30, 2014 | 49,998 | 18.82 | 4.67 | 155,206 | ||||||||||||
Options Exercisable as of September 30, 2014 | 36,845 | 20.39 | 3.47 | 78,022 | ||||||||||||
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | ' | |||||||||||||||
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Expected volatility | 45.7 | - | 45.70% | 46.6 | - | 47.00% | 45.7 | - | 46.20% | 46.6 | - | 47.40% | ||||
Weighted-average volatility | 45.7 | - | 45.70% | 46.7 | - | 46.70% | 45.7 | - | 46.20% | 46.7 | - | 47.30% | ||||
Expected dividends | 1.98 | - | 1.98% | 2.68 | - | 2.68% | 1.9 | - | 2.09% | 2.68 | - | 3.02% | ||||
Risk-free rate | 2 | - | 2.00% | 1.8 | - | 2.20% | 2 | - | 2.20% | 0.8 | - | 2.20% | ||||
Average risk-free rate | 2 | - | 2.00% | 2.2 | - | 2.20% | 2 | - | 2.20% | 1.1 | - | 2.20% | ||||
Expected term (in years) | 7.2 | - | 7.2 | 5.8 | - | 7.2 | 7.2 | - | 7.2 | 5.8 | - | 7.1 | ||||
Pre-vesting departure rate | 0.5 | - | 0.50% | 0.4 | - | 4.10% | 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 | 1,476 | 20.44 | ||||||||||||||
Vested | -1,587 | 17.34 | ||||||||||||||
Forfeited | -119 | 14.73 | ||||||||||||||
Non-vested shares and share units at September 30, 2014 | 5,878 | $ | 15.3 |
Note_19_Reportable_Segments_Ta
Note 19 - Reportable Segments (Tables) | 9 Months Ended | ||||||||||||||||||||
Sep. 30, 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 | |||||||||||||||||||||
September 30, 2014 | |||||||||||||||||||||
Net sales | $ | 1,009 | $ | 698 | $ | 282 | $ | 327 | $ | 214 | $ | 10 | $ | 2,540 | |||||||
Depreciation (1) | $ | 166 | $ | 38 | $ | 29 | $ | 30 | $ | 15 | $ | 9 | $ | 287 | |||||||
Amortization of purchased intangibles | $ | 3 | $ | 6 | $ | 9 | |||||||||||||||
Research, development and engineering expenses (2) | $ | 31 | $ | 35 | $ | 23 | $ | 35 | $ | 6 | $ | 43 | $ | 173 | |||||||
Restructuring, impairment & other charges | $ | 3 | $ | -3 | |||||||||||||||||
Equity in earnings of affiliated companies | $ | -3 | $ | 4 | $ | 1 | |||||||||||||||
Income tax (provision) benefit | $ | -136 | $ | -35 | $ | -28 | $ | -25 | $ | -9 | $ | 21 | $ | -212 | |||||||
Net income (loss) (3) | $ | 387 | $ | 68 | $ | 57 | $ | 43 | $ | 19 | $ | -41 | $ | 533 | |||||||
Display | Optical | Environmental | Specialty | Life | All | Total | |||||||||||||||
Technologies | Communications | Technologies | Materials | Sciences | Other | ||||||||||||||||
Three months ended | |||||||||||||||||||||
September 30, 2013 | |||||||||||||||||||||
Net sales | $ | 648 | $ | 650 | $ | 225 | $ | 326 | $ | 215 | $ | 3 | $ | 2,067 | |||||||
Depreciation (1) | $ | 121 | $ | 38 | $ | 30 | $ | 30 | $ | 14 | $ | 4 | $ | 237 | |||||||
Amortization of purchased intangibles | $ | 3 | $ | 5 | $ | 8 | |||||||||||||||
Research, development and engineering expenses (2) | $ | 23 | $ | 37 | $ | 23 | $ | 33 | $ | 5 | $ | 33 | $ | 154 | |||||||
Equity in earnings of affiliated companies | $ | 73 | $ | 1 | $ | 4 | $ | 78 | |||||||||||||
Income tax (provision) benefit | $ | -86 | $ | -32 | $ | -16 | $ | -32 | $ | -10 | $ | 16 | $ | -160 | |||||||
Net income (loss) (3) | $ | 318 | $ | 62 | $ | 32 | $ | 65 | $ | 20 | $ | -32 | $ | 465 | |||||||
Display | Optical | Environmental | Specialty | Life | All | Total | |||||||||||||||
Technologies | Communications | Technologies | Materials | Sciences | Other | ||||||||||||||||
Nine months ended | |||||||||||||||||||||
September 30, 2014 | |||||||||||||||||||||
Net sales | $ | 2,925 | $ | 1,977 | $ | 842 | $ | 886 | $ | 647 | $ | 34 | $ | 7,311 | |||||||
Depreciation (1) | $ | 510 | $ | 111 | $ | 89 | $ | 86 | $ | 46 | $ | 21 | $ | 863 | |||||||
Amortization of purchased intangibles | $ | 7 | $ | 18 | $ | 25 | |||||||||||||||
Research, development and engineering expenses (2) | $ | 117 | $ | 106 | $ | 65 | $ | 102 | $ | 16 | $ | 119 | $ | 525 | |||||||
Restructuring, impairment & other charges | $ | 42 | $ | 12 | $ | -3 | $ | 51 | |||||||||||||
Equity in earnings of affiliated companies | $ | -16 | $ | 2 | $ | 13 | $ | -1 | |||||||||||||
Income tax (provision) benefit | $ | -453 | $ | -85 | $ | -72 | $ | -62 | $ | -26 | $ | 59 | $ | -639 | |||||||
Net income (loss) (3) | $ | 878 | $ | 156 | $ | 147 | $ | 113 | $ | 54 | $ | -140 | $ | 1,208 | |||||||
Display | Optical | Environmental | Specialty | Life | All | Total | |||||||||||||||
Technologies | Communications | Technologies | Materials | Sciences | Other | ||||||||||||||||
Nine months ended | |||||||||||||||||||||
September 30, 2013 | |||||||||||||||||||||
Net sales | $ | 1,929 | $ | 1,721 | $ | 681 | $ | 885 | $ | 641 | $ | 6 | $ | 5,863 | |||||||
Depreciation (1) | $ | 362 | $ | 110 | $ | 91 | $ | 104 | $ | 42 | $ | 13 | $ | 722 | |||||||
Amortization of purchased intangibles | $ | 7 | $ | 16 | $ | 23 | |||||||||||||||
Research, development and engineering expenses (2) | $ | 60 | $ | 103 | $ | 68 | $ | 108 | $ | 15 | $ | 104 | $ | 458 | |||||||
Equity in earnings of affiliated companies | $ | 314 | $ | 2 | $ | 1 | $ | 4 | $ | 13 | $ | 334 | |||||||||
Income tax (provision) benefit | $ | -250 | $ | -87 | $ | -47 | $ | -79 | $ | -28 | $ | 46 | $ | -445 | |||||||
Net income (loss) (3) | $ | 1,004 | $ | 173 | $ | 95 | $ | 162 | $ | 57 | $ | -91 | $ | 1,400 | |||||||
Reconciliation of Revenue from Segments to Consolidated [Table Text Block] | ' | ||||||||||||||||||||
Three months ended | Nine months ended | ||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||
Net income of reportable segments | $ | 574 | $ | 497 | $ | 1,348 | $ | 1,491 | |||||||||||||
Non-reportable segments | -41 | -32 | -140 | -91 | |||||||||||||||||
Unallocated amounts: | |||||||||||||||||||||
Net financing costs (1) | -27 | -3 | -86 | -65 | |||||||||||||||||
Stock-based compensation expense | -19 | -15 | -47 | -40 | |||||||||||||||||
Exploratory research | -24 | -29 | -75 | -80 | |||||||||||||||||
Corporate contributions | -19 | -7 | -35 | -32 | |||||||||||||||||
Equity in earnings of affiliated companies, net of impairments (2) | 94 | 59 | 245 | 142 | |||||||||||||||||
Asbestos settlement | -5 | -5 | -11 | -13 | |||||||||||||||||
Purchased collars and average rate forward contracts, net of tax | 478 | -46 | 405 | 206 | |||||||||||||||||
Other corporate items (3) | 3 | -11 | -120 | 22 | |||||||||||||||||
Net income | $ | 1,014 | $ | 408 | $ | 1,484 | $ | 1,540 |
Supplemental_Cash_Flow_Informa1
Supplemental Cash Flow Information (Details) (Convertible Preferred Stock, Series A [Member], Samsung Corning Precision Materials Co., Ltd. [Member], USD $) | 0 Months Ended | 3 Months Ended |
In Millions, except Share data, unless otherwise specified | Jan. 15, 2014 | Mar. 31, 2014 |
Supplemental Cash Flow Information (Details) [Line Items] | ' | ' |
Stock Issued During Period, Shares, Acquisitions | 1,900 | 1,900 |
Additional Amount Issued at Closing [Member] | ' | ' |
Supplemental Cash Flow Information (Details) [Line Items] | ' | ' |
Stock Issued During Period, Value, New Issues | $400 | $400 |
Note_1_Significant_Accounting_2
Note 1 - Significant Accounting Policies (Details) (USD $) | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 0 Months Ended | ||||||||||||||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Jan. 15, 2014 | |||||
Gross Notional Value [Member] | Gross Notional Value [Member] | Gross Notional Value [Member] | Gross Notional Value [Member] | Gross Notional Value [Member] | Other Income [Member] | Other Income [Member] | Other Income [Member] | Other Income [Member] | Other Income [Member] | Other Income [Member] | Other Income [Member] | Other Expense [Member] | Other Expense [Member] | Other Expense [Member] | Samsung Corning Precision Materials Co., Ltd. [Member] | |||||||
Not Designated as Hedging Instrument [Member] | Not Designated as Hedging Instrument [Member] | Not Designated as Hedging Instrument [Member] | Not Designated as Hedging Instrument [Member] | Not Designated as Hedging Instrument [Member] | Japan, Yen | Japan, Yen | Japan, Yen | Translated Earnings Contracts [Member] | Translated Earnings Contracts [Member] | Translated Earnings Contracts [Member] | Translated Earnings Contracts [Member] | Japan, Yen | Korea (South), Won | Korea (South), Won | ||||||||
Japan, Yen | Japan, Yen | Korea (South), Won | Translated Earnings Contracts [Member] | Translated Earnings Contracts [Member] | Foreign Exchange Contract [Member] | Foreign Exchange Contract [Member] | Foreign Exchange Contract [Member] | Foreign Exchange Contract [Member] | Foreign Exchange Contract [Member] | Foreign Exchange Contract [Member] | ||||||||||||
Translated Earnings Contracts [Member] | Translated Earnings Contracts [Member] | Translated Earnings Contracts [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 | $600,000,000 | $205,000,000 | ' | ' | ' | ' | ' | $764,000,000 | $621,000,000 | $206,000,000 | $739,000,000 | [1] | ($46,000,000) | [1] | $600,000,000 | [1] | $205,000,000 | [1] | ($46,000,000) | ($25,000,000) | ($21,000,000) | ' |
Derivative, Notional Amount | ' | ' | $11,000,000,000 | $6,800,000,000 | $3,000,000,000 | $13,900,000,000 | $6,800,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
[1] | Certain amounts for prior periods were reclassified to conform to the current year presentation. |
Note_1_Significant_Accounting_3
Note 1 - Significant Accounting Policies (Details) - Other Income, Net (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Note 1 - Significant Accounting Policies (Details) - Other Income, Net [Line Items] | ' | ' | ' | ' |
Foreign currency exchange and hedge gain (loss), net | $744 | ($33) | $596 | $248 |
Net (gain) loss attributable to noncontrolling interests | -2 | ' | ' | 1 |
Other, net | -22 | 18 | -7 | 37 |
Total | 720 | -1 | 589 | 329 |
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 | ' | $14 | ' | $43 |
Note_2_Restructuring_Impairmen2
Note 2 - Restructuring, Impairment and Other Charges (Details) (USD $) | 3 Months Ended | 9 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2014 |
Restructuring and Related Activities [Abstract] | ' | ' |
Restructuring and Related Cost, Incurred Cost | $67 | $51 |
Expected Cash Expenditures for Restructuring Costs | $40 | $11 |
Note_2_Restructuring_Impairmen3
Note 2 - Restructuring, Impairment and Other Charges (Details) - Restructuring, Impairment and Other Charges (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Note 2 - Restructuring, Impairment and Other Charges (Details) - Restructuring, Impairment and Other Charges [Line Items] | ' | ' |
Reserve | $44 | $42 |
Net charges/reversals | 37 | -1 |
Non cash adjustments | -3 | ' |
Cash payments | -30 | -30 |
Reserve | 48 | 11 |
Impairment charges and disposal of long-lived assets | 14 | ' |
Total restructuring, impairment and other charges | 51 | ' |
Employee Severance [Member] | ' | ' |
Note 2 - Restructuring, Impairment and Other Charges (Details) - Restructuring, Impairment and Other Charges [Line Items] | ' | ' |
Reserve | 36 | 38 |
Net charges/reversals | 32 | -1 |
Non cash adjustments | -2 | ' |
Cash payments | -27 | -27 |
Reserve | 39 | 10 |
Other Restructuring [Member] | ' | ' |
Note 2 - Restructuring, Impairment and Other Charges (Details) - Restructuring, Impairment and Other Charges [Line Items] | ' | ' |
Reserve | 8 | 4 |
Net charges/reversals | 5 | ' |
Non cash adjustments | -1 | ' |
Cash payments | -3 | -3 |
Reserve | $9 | $1 |
Note_2_Restructuring_Impairmen4
Note 2 - Restructuring, Impairment and Other Charges (Details) - Restructuring, Impairment and Other Charges (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Note 2 - Restructuring, Impairment and Other Charges (Details) - Restructuring, Impairment and Other Charges [Line Items] | ' | ' |
Reserve | $44 | $42 |
Net charges/reversals | 37 | -1 |
Cash payments | -30 | -30 |
Reserve | 48 | 11 |
Employee Severance [Member] | ' | ' |
Note 2 - Restructuring, Impairment and Other Charges (Details) - Restructuring, Impairment and Other Charges [Line Items] | ' | ' |
Reserve | 36 | 38 |
Net charges/reversals | 32 | -1 |
Cash payments | -27 | -27 |
Reserve | 39 | 10 |
Other Restructuring [Member] | ' | ' |
Note 2 - Restructuring, Impairment and Other Charges (Details) - Restructuring, Impairment and Other Charges [Line Items] | ' | ' |
Reserve | 8 | 4 |
Net charges/reversals | 5 | ' |
Cash payments | -3 | -3 |
Reserve | $9 | $1 |
Note_3_Commitments_Contingenci1
Note 3 - Commitments, Contingencies, and Guarantees (Details) (USD $) | 9 Months Ended | 9 Months Ended | 124 Months Ended | 9 Months Ended | |||||||||||||||||||||||||
Sep. 30, 2014 | Jan. 15, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Nov. 12, 2013 | Nov. 12, 2013 | Nov. 12, 2013 | Nov. 12, 2013 | Nov. 12, 2013 | Nov. 12, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Nov. 12, 2013 | Apr. 16, 2000 | Sep. 30, 2014 | Sep. 30, 2014 | Apr. 16, 2000 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | |
Environmental Cleanup And Related Litigation [Member] | Environmental Cleanup And Related Litigation [Member] | Non-PCC [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] | 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 Europe (PCE) [Member] | Pittsburgh Corning Europe (PCE) [Member] | Bankruptcy Proceedings [Member] | Bankruptcy Proceedings [Member] | Asbestos Litigation [Member] | Asbestos Litigation [Member] | Asbestos Litigation [Member] | ||||
Asbestos Litigation [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] | Amended Pittsburgh Corning Corporation Plan [Member] | Asbestos Litigation [Member] | Corning Inc. [Member] | PPG Industries, Inc. [Member] | Minimum [Member] | Maximum [Member] | Corning Inc. [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] | Corning Inc. [Member] | Dow Corning Corporation [Member] | Dow Corning Corporation [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% | ' | ' | ' | ' | ' | ' | ' | ' |
Payments for Legal Settlements | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1,800,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Estimated Litigation Liability | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,700,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loss Contingency, Estimate of Possible Loss | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 98,000,000 | 320,000,000 | ' | 701,000,000 | 690,000,000 |
Loss Contingency, Pending Claims, Number | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 11,800 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loss Contingency, Required Payments Per Reorganization Plan | ' | ' | ' | ' | ' | ' | ' | ' | 70,000,000 | 35,000,000 | 50,000,000 | 35,000,000 | 50,000,000 | 50,000,000 | ' | ' | ' | 290,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
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 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 19,000,000 | ' | ' |
Loss Contingency Accrual, Period Increase (Decrease) | ' | ' | ' | ' | ' | 150,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Equity Method Investments, Fair Value Disclosure | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 261,000,000 | ' | ' | ' | ' | ' | ' |
Equity Method Investments | ' | 2,117,000,000 | 3,709,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 164,000,000 | 167,000,000 | ' | ' | ' | ' | ' |
Undiscounted Projection of Claims and Related Legal Fees, Period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '20 years | ' |
Guarantor Obligations, Maximum Exposure, Undiscounted | ' | ' | ' | ' | ' | ' | 153,000,000 | 151,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Recorded Unconditional Purchase Obligation | 300,000,000 | ' | 126,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Recorded Unconditional Purchase Obligation, Increase (Decrease) | 166,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of Hazardous Waste Sites | 15 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accrual for Environmental Loss Contingencies | ' | ' | ' | $28,000,000 | $15,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Note_4_Debt_Details
Note 4 - Debt (Details) | 3 Months Ended | 3 Months Ended | |||||||
Mar. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2013 | Sep. 30, 2014 | Mar. 31, 2013 | Sep. 30, 2014 | Jun. 30, 2013 | Mar. 31, 2013 | |
USD ($) | USD ($) | USD ($) | Commercial Paper [Member] | Amended Credit Facility [Member] | Amended Credit Facility [Member] | Commercial Paper [Member] | Commercial Paper [Member] | Foreign Line of Credit [Member] | |
Maximum [Member] | USD ($) | USD ($) | USD ($) | USD ($) | CNY | ||||
Note 4 - Debt (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Fair Value Disclosure | ' | $3,600,000,000 | $3,500,000,000 | ' | ' | ' | ' | ' | ' |
Long-term Debt and Capital Lease Obligations | ' | 3,228,000,000 | 3,272,000,000 | ' | ' | ' | ' | ' | ' |
Line of Credit Facility, Maximum Borrowing Capacity | ' | ' | ' | ' | 2,000,000,000 | 1,000,000,000 | ' | 1,000,000,000 | 4,000,000,000 |
Long-term Line of Credit | ' | ' | ' | ' | 0 | ' | 424,000,000 | ' | ' |
Debt Instrument, Term | ' | ' | ' | '390 days | ' | ' | ' | ' | ' |
Repayments of Lines of Credit | $500,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Note_5_Income_Taxes_Details
Note 5 - Income Taxes (Details) (USD $) | 3 Months Ended | 9 Months Ended | 1 Months Ended | ||||||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Apr. 30, 2011 | 30-May-14 |
Korean Withholding Tax [Member] | Foreign Tax Authority [Member] | Low Or No Tax Cost [Member] | South Korean Tax Authorities [Member] | South Korean Tax Authorities [Member] | |||||
Note 5 - Income Taxes (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 35.00% | 35.00% | 35.00% | 35.00% | ' | ' | ' | ' | ' |
Income Tax Expense (Benefit), Continuing Operations, Adjustment for Equity Investment Dividend (in Dollars) | ' | ' | ' | ' | $102 | ' | ' | ' | ' |
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount (in Dollars) | ' | ' | ' | ' | ' | 146 | ' | ' | ' |
Tax Adjustments, Settlements, and Unusual Provisions (in Dollars) | ' | ' | ' | -54 | ' | ' | ' | ' | ' |
Effective Income Tax Rate Reconciliation, Tax Holiday, Percent | 0.30% | 1.70% | 0.60% | 1.30% | ' | ' | ' | ' | ' |
Income Tax Examination, Estimate of Possible Loss (in Dollars) | ' | ' | ' | ' | ' | ' | ' | 46 | ' |
Income Tax Examination, Liability (Refund) Adjustment from Settlement with Taxing Authority (in Dollars) | ' | ' | ' | ' | ' | ' | ' | ' | -18 |
Undistributed Earnings of Foreign Subsidiaries (in Dollars) | ' | ' | ' | ' | ' | ' | $9 | ' | ' |
Note_5_Income_Taxes_Details_Pr
Note 5 - Income Taxes (Details) - Provision for Income Taxes (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Provision for Income Taxes [Abstract] | ' | ' | ' | ' |
Provision for income taxes | ($395) | ($141) | ($747) | ($366) |
Effective tax rate | 28.00% | 25.70% | 33.50% | 19.20% |
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 | 9 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 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) | $1,014 | $408 | $1,484 | $1,540 |
Net income available to common stockholders - diluted (in Dollars) | 1,014 | 408 | 1,484 | 1,540 |
Weighted-average common shares outstanding - basic | 1,284 | 1,454 | 1,315 | 1,465 |
Effect of dilutive securities: | ' | ' | ' | ' |
Weighted-average common shares outstanding - diluted | 1,411 | 1,463 | 1,436 | 1,474 |
Basic earnings per common share (in Dollars per share) | $0.77 | $0.28 | $1.08 | $1.05 |
Diluted earnings per common share (in Dollars per share) | $0.72 | $0.28 | $1.03 | $1.04 |
Anti-dilutive potential shares excluded from diluted earnings per common share: | ' | ' | ' | ' |
Antidilutive shares | 23 | 36 | 28 | 40 |
Net income available to common stockholders - basic (in Dollars) | 990 | 408 | 1,414 | 1,540 |
Convertible Preferred Stock, Series A [Member] | ' | ' | ' | ' |
Note 6 - Earnings Per Common Share (Details) - Computation of Basic and Diluted Earnings per Common Share [Line Items] | ' | ' | ' | ' |
Series A convertible preferred stock dividend (in Dollars) | $24 | ' | $70 | ' |
Effect of dilutive securities: | ' | ' | ' | ' |
Effect of dilutive securities | 115 | ' | 109 | ' |
Stock Compensation Plan [Member] | ' | ' | ' | ' |
Anti-dilutive potential shares excluded from diluted earnings per common share: | ' | ' | ' | ' |
Antidilutive shares | 23 | 36 | 24 | 40 |
Forward Contracts [Member] | ' | ' | ' | ' |
Anti-dilutive potential shares excluded from diluted earnings per common share: | ' | ' | ' | ' |
Antidilutive shares | ' | ' | 4 | ' |
Stock Options and Other Dilutive Securities [Member] | ' | ' | ' | ' |
Effect of dilutive securities: | ' | ' | ' | ' |
Effect of dilutive securities | 12 | 9 | 12 | 9 |
Note_7_AvailableforSale_Invest2
Note 7 - Available-for-Sale Investments (Details) (USD $) | 9 Months Ended | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | |
Available For Sale Investments [Abstract] | ' | ' | ' | |
Available-for-sale Securities, Debt Maturities, after Ten Years, Fair Value | $38 | [1] | ' | ' |
Marketable Securities, Realized Loss, Other than Temporary Impairments, Amount | 4 | ' | 6 | |
Proceeds from Sale of Short-term Investments | $954 | $1,449 | ' | |
[1] | Includes $38 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 $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
US Government Agencies Debt Securities [Member] | ' | ' |
Bonds, notes and other securities: | ' | ' |
Amortized cost | $743 | $530 |
Fair value | 744 | 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 | 749 | 530 |
Fair value | 751 | 531 |
Asset-backed Securities [Member] | ' | ' |
Bonds, notes and other securities: | ' | ' |
Amortized cost | 43 | 46 |
Fair value | 38 | 38 |
Total Long-Term Investments [Member] | ' | ' |
Bonds, notes and other securities: | ' | ' |
Amortized cost | 43 | 46 |
Fair value | $38 | $38 |
Note_7_AvailableforSale_Invest4
Note 7 - Available-for-Sale Investments (Details) - Summary of Maturities of Available-for-Sale Securities (USD $) | Sep. 30, 2014 | |
In Millions, unless otherwise specified | ||
Summary of Maturities of Available-for-Sale Securities [Abstract] | ' | |
Less than one year | $451 | |
Due in 1-5 years | 293 | |
Due after 10 years (1) | 38 | [1] |
Total | $782 | |
[1] | Includes $38 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 $) | 9 Months Ended | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 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 | 21 | 20 | ||
12 months or Greater, Fair Value | $38 | $38 | ||
12 months or Greater, Unrealized Losses | -4 | [1] | -8 | [1] |
Total, Fair Value | 38 | 38 | ||
Total, Unrealized Losses | ($4) | ($8) | ||
[1] | Unrealized losses in securities less than 12 months were not significant. |
Note_8_Inventories_Details_Inv
Note 8 - Inventories (Details) - Inventories (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Inventories [Abstract] | ' | ' |
Finished goods | $457 | $486 |
Work in process | 245 | 234 |
Raw materials and accessories | 323 | 311 |
Supplies and packing materials | 302 | 239 |
Total inventories | $1,327 | $1,270 |
Note_9_Investments_Details
Note 9 - Investments (Details) (USD $) | 9 Months Ended | 3 Months Ended | 0 Months Ended | 3 Months Ended | 3 Months Ended | 9 Months Ended | ||||||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2013 | Nov. 30, 2013 | Dec. 31, 2013 | Nov. 30, 2013 | Nov. 30, 2013 | Jan. 15, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
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] | Dow Corning Corporation [Member] | Dow Corning Corporation [Member] | Dow Corning Corporation [Member] | Dow Corning Corporation [Member] | ||
Three Minority Shareholders [Member] | Three Minority Shareholders [Member] | Corning Inc. [Member] | Corning Inc. [Member] | Samsung Display Co., Ltd. [Member] | Energy Tax Credit [Member] | Foreign Tax Credit [Member] | Corning Inc. [Member] | |||||||
Note 9 - Investments (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Equity Method Investment, Ownership Percentage | ' | ' | 7.00% | 57.50% | 50.00% | 42.50% | ' | ' | ' | 50.00% | ' | ' | ' | ' |
Payments to Noncontrolling Interests | $47 | $506 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sale of Stock, Percentage of Ownership after Transaction | ' | ' | ' | ' | ' | ' | 100.00% | ' | ' | ' | ' | ' | ' | ' |
Equity Method Investment, Summarized Financial Information, Revenue | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,520 | 1,427 | 4,545 | 4,120 |
Equity Method Investment, Summarized Financial Information, Gross Profit (Loss) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 351 | 265 | 1,071 | 868 |
Equity Method Investment, Summarized Financial Information, Net Income (Loss) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 176 | 117 | 476 | 267 |
Equity Method Investment, Summarized Financial Information, Derivative, Loss on Derivative | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 20 | ' | ' | ' |
Equity Method Investment, Summarized Financial Information, Derivative, Gain on Derivative | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 32 | 63 | 32 |
Equity Method Investment, Summarized Financial Information, Tax Credit | ' | ' | ' | ' | ' | ' | ' | 17 | 82 | ' | ' | ' | ' | ' |
Research and Development Expense | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 70 | 59 | 207 | 186 |
Selling Expense | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $3 | $4 | $9 | $10 |
Note_10_Acquisition_Details
Note 10 - Acquisition (Details) (USD $) | 0 Months Ended | 9 Months Ended | 0 Months Ended | 3 Months Ended | 0 Months Ended | 3 Months Ended | 6 Months Ended | 9 Months Ended | |||||||||||
Jan. 15, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Jan. 15, 2014 | Jan. 15, 2014 | Mar. 31, 2014 | Jan. 15, 2014 | Jan. 15, 2014 | Jan. 15, 2014 | Nov. 30, 2013 | Dec. 31, 2013 | Nov. 30, 2013 | Jan. 15, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | |||
Convertible Preferred Stock, Series A [Member] | Convertible Preferred Stock, Series A [Member] | Convertible Preferred Stock, Series A [Member] | Convertible Preferred Stock, Series A [Member] | Revenues Generated by Samsung Corning Precision Materials [Member] | Volume of Certain Sales [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] | Samsung Corning Precision Materials Co., Ltd. [Member] | Samsung Corning Precision Materials Co., Ltd. [Member] | Samsung Corning Precision Materials Co., Ltd. [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] | Samsung Display Co., Ltd. [Member] | Corning Inc. [Member] | Corning Inc. [Member] | ||||||||||||
Samsung Corning Precision Materials Co., Ltd. [Member] | |||||||||||||||||||
Note 10 - Acquisition (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
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 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High | ' | ' | ' | ' | ' | ' | ' | 665,000,000 | 100,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ||
Business Combination, Contingent Consideration, Asset | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 196,000,000 | 273,000,000 | 273,000,000 | 273,000,000 | 273,000,000 | ||
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Asset | ' | 77,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 77,000,000 | ' | ' | ' | ||
Equity Method Investment, Ownership Percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | 42.50% | 57.50% | 50.00% | ' | ' | ' | ' | ' | ||
Business Combination, Consideration Transferred, Equity Interests Issued and Issuable | ' | ' | ' | ' | 1,900,000,000 | ' | ' | ' | ' | ' | ' | ' | 1,911,000,000 | ' | ' | ' | ' | ||
Business Combination, Net Fair Value Of Consideration Including Subsequent Acquisition | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,038,000,000 | [1] | ' | ' | ' | ' | |
Fair Value of Reacquired Right | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ||
Contractual Royalty Rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3.00% | ' | ' | ' | ' | ||
Current Market Rate of Royalty Contract | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 12.00% | ' | ' | ' | ' | ||
Settlement Of Preexisting Customer Relationship Including Subsequent Acquisition | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 320,000,000 | ' | ' | ' | ' | ||
Percentage of Loss on Effective Settlement of Contract | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% | ' | ' | ' | ' | ||
Settlement Of Preexisting Customer Relationship Before Subsequent Acquisition | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 184,000,000 | ' | ' | ' | ' | ||
Business Combination, Net Fair Value Of Consideration Before Subsequent Acquisition | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,323,000,000 | [1] | ' | ' | ' | ' | |
Business Combination, Step Acquisition, Equity Interest in Acquiree, Fair Value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,139,000,000 | ' | ' | ' | ' | ||
Settlement of Pre-Existing Customer Relationship | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 136,000,000 | ' | ' | ' | ' | ||
Business Combination, Consideration Transferred | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,579,000,000 | ' | ' | ' | ' | ||
Proceeds from Equity Method Investment, Dividends or Distributions | 1,574,000,000 | [2] | 1,673,000,000 | 221,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,600,000,000 | ' | ' | ' | ' | |
Cash Dividends Paid by Consolidated Subsidiaries | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,800,000,000 | ' | ' | ' | ' | ||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Consideration Transferred | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 39,000,000 | ' | ' | ||
Business Combination, Acquisition Related Costs | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 92,000,000 | ||
Business Combination, Increase in Net Sales from Consolidation of the Acquiree | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1,331,000,000 | ' | ||
[1] | As Corning was a 57.5% shareholder at the date of acquisition, immediately preceding the acquisition of Samsung Corning Precision Materials, Corning recognized an asset and respective gain as part of the calculation of its previously held equity investment which included approximately $184 million attributed to its economic interest in the royalty contract. | ||||||||||||||||||
[2] | In conjunction with the Framework Agreement, the parties agreed to have Samsung Corning Precision Materials distribute all cash and cash equivalents as a dividend to the shareholders of record as of December 31, 2013. The dividend was not part of the purchase price as the agreement was to distribute cash and cash equivalents as a dividend to the shareholders as soon as practicable. As such, at acquisition Corning did not have legal title to the cash to be distributed, although the dividend was distributed subsequent to the acquisition date. Therefore, the portion of Corning's share of the $1.6 billion dividend received was accounted for in Corning's consolidated financial statements as if the dividend occurred at or immediately prior to the date of acquisition at which time Samsung Corning Precision Materials was still an equity method investment in Corning's consolidated financial statements. |
Note_10_Acquisition_Details_To
Note 10 - Acquisition (Details) - Total Fair Value of Samsung Corning Precision Materials at Acquisition Date (Samsung Corning Precision Materials Co., Ltd. [Member], USD $) | 0 Months Ended | ||
In Millions, unless otherwise specified | Jan. 15, 2014 | Sep. 30, 2014 | |
Samsung Corning Precision Materials Co., Ltd. [Member] | ' | ' | |
Note 10 - Acquisition (Details) - Total Fair Value of Samsung Corning Precision Materials at Acquisition Date [Line Items] | ' | ' | |
Ownership percentage | 42.50% | ' | |
Ownership percentage | 57.50% | ' | |
Ownership percentage | 100.00% | ' | |
Fair value based on $1.9 billion consideration transferred | $1,911 | ' | |
Fair value based on $1.9 billion consideration transferred | 2,588 | ' | |
Fair value based on $1.9 billion consideration transferred | 4,499 | ' | |
Less contingent consideration - receivable | -196 | -273 | |
Less contingent consideration - receivable | -265 | ' | |
Less contingent consideration - receivable | -461 | ' | |
Net fair value of consideration @ 100% | 1,715 | ' | |
Net fair value of consideration @ 100% | 2,323 | [1] | ' |
Net fair value of consideration @ 100% | 4,038 | [1] | ' |
Corning’s loss on royalty contract | -136 | ' | |
Corning’s loss on royalty contract | -184 | ' | |
Corning’s loss on royalty contract | -320 | ' | |
Fair value post-acquisition | 1,579 | ' | |
Fair value post-acquisition | 2,139 | ' | |
Fair value post-acquisition | 3,718 | ' | |
Corning’s fair value 57.5% post-acquisition | 2,139 | ' | |
Total fair value at January 15, 2014 | $3,718 | ' | |
[1] | As Corning was a 57.5% shareholder at the date of acquisition, immediately preceding the acquisition of Samsung Corning Precision Materials, Corning recognized an asset and respective gain as part of the calculation of its previously held equity investment which included approximately $184 million attributed to its economic interest in the royalty contract. |
Note_10_Acquisition_Details_Ne
Note 10 - Acquisition (Details) - Net Gain on Previously Owned Equity (USD $) | 0 Months Ended | 3 Months Ended | 9 Months Ended | |||
In Millions, unless otherwise specified | Jan. 15, 2014 | Mar. 31, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | |
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | |
December 2013 Investment Balance | $2,117 | ' | ' | ' | $3,709 | |
Dividend (1) | -1,574 | [1] | ' | -1,673 | -221 | ' |
Other | -18 | ' | ' | ' | ' | |
Net investment book balance at 1/15/2014 | 2,117 | ' | ' | ' | 3,709 | |
Translation gain | ' | 136 | ' | ' | ' | |
Samsung Corning Precision Materials Co., Ltd. [Member] | ' | ' | ' | ' | ' | |
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | |
Dividend (1) | -1,600 | ' | ' | ' | ' | |
Fair value Samsung Corning Precision Materials | 4,038 | [2] | ' | ' | ' | ' |
57.5% of Samsung Corning Precision Materials (2) | 2,323 | [2] | ' | ' | ' | ' |
Working capital adjustment and other | 52 | ' | ' | ' | ' | |
57.5% of the pre-acquisition fair value of assets | 2,375 | ' | ' | ' | ' | |
Gain on previously held equity investment (2) | 258 | [2] | ' | ' | ' | ' |
Translation gain | 136 | ' | ' | ' | ' | |
Net gain | $394 | ' | ' | ' | ' | |
[1] | In conjunction with the Framework Agreement, the parties agreed to have Samsung Corning Precision Materials distribute all cash and cash equivalents as a dividend to the shareholders of record as of December 31, 2013. The dividend was not part of the purchase price as the agreement was to distribute cash and cash equivalents as a dividend to the shareholders as soon as practicable. As such, at acquisition Corning did not have legal title to the cash to be distributed, although the dividend was distributed subsequent to the acquisition date. Therefore, the portion of Corning's share of the $1.6 billion dividend received was accounted for in Corning's consolidated financial statements as if the dividend occurred at or immediately prior to the date of acquisition at which time Samsung Corning Precision Materials was still an equity method investment in Corning's consolidated financial statements. | |||||
[2] | As Corning was a 57.5% shareholder at the date of acquisition, immediately preceding the acquisition of Samsung Corning Precision Materials, Corning recognized an asset and respective gain as part of the calculation of its previously held equity investment which included approximately $184 million attributed to its economic interest in the royalty contract. |
Note_10_Acquisition_Details_Re
Note 10 - Acquisition (Details) - Recognized Amounts of Identified Assets Acquired and Liabilities Assumed (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Jan. 15, 2014 | |
In Millions, unless otherwise specified | 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 (3) | ' | ' | 116 | [2] |
Property, plant and equipment (3) | ' | ' | 3,615 | [2] |
Other current and non-current assets (3) | ' | ' | 74 | [2] |
Debt – current | ' | ' | -32 | |
Accounts payable and accrued expenses (3) | ' | ' | -356 | [2] |
Other current and non-current liabilities (3) | ' | ' | -307 | [2] |
Total identified net assets (3) | ' | ' | 3,596 | [2] |
Non-controlling interests | ' | ' | 15 | |
Fair value of Samsung Corning Precision Materials on acquisition date | ' | ' | -3,718 | |
Goodwill (2)(3) | $1,142 | $1,002 | $107 | [2],[3] |
[1] | Cash and cash equivalents are presented net of the 2014 dividend distributed subsequent to the Acquisition, in the amount of $2.8 billion. | |||
[2] | In the second and third quarters of 2014, the company recorded total measurement period adjustments of $39 million for the Acquisition of Corning Precision Materials primarily related to accrual of contingent liabilities and employee benefit obligations. | |||
[3] | The goodwill recognized is not deductible for U.S. income tax purposes. The goodwill was allocated to the Display Technologies segment. |
Note_10_Acquisition_Details_Un
Note 10 - Acquisition (Details) - Unaudited Pro Forma Financial Information (USD $) | 3 Months Ended | 9 Months Ended |
In Millions, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2013 |
Unaudited Pro Forma Financial Information [Abstract] | ' | ' |
Net sales | $2,554 | $7,431 |
Net income from continuing operations – basic | 480 | 1,837 |
Net income from continuing operations – diluted | $505 | $1,910 |
Earnings per common share attributable to common shareholders | ' | ' |
Basic (in Dollars per share) | $0.33 | $1.25 |
Diluted (in Dollars per share) | $0.32 | $1.20 |
Shares used in computing per share amounts | ' | ' |
Basic (in Shares) | 1,454 | 1,465 |
Diluted (in Shares) | 1,578 | 1,589 |
Note_11_Property_Net_of_Accumu2
Note 11 - Property, Net of Accumulated Depreciation (Details) (USD $) | 3 Months Ended | 9 Months Ended | 9 Months Ended | |||||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Sep. 30, 2014 | Jan. 15, 2014 | ||
Increase from Consolidation of Samsung Corning Precision Materials [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 | ' | ' | ' | ' | ' | ' | $3,615,000,000 | [1] |
Interest Costs Capitalized | 9,000,000 | 8,000,000 | 31,000,000 | 25,000,000 | ' | ' | ' | |
Precious Metals | 3,200,000,000 | ' | 3,200,000,000 | ' | 2,200,000,000 | 1,100,000,000 | ' | |
Depletion | $3,000,000 | $4,000,000 | $16,000,000 | $15,000,000 | ' | $3,000,000 | ' | |
[1] | In the second and third quarters of 2014, the company recorded total measurement period adjustments of $39 million for the Acquisition of Corning Precision Materials primarily related to accrual of contingent liabilities and employee benefit obligations. |
Note_11_Property_Net_of_Accumu3
Note 11 - Property, Net of Accumulated Depreciation (Details) - Property, Net (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ' | ' |
Property, plant and equipment, gross | $21,445 | $17,666 |
Accumulated depreciation | -8,412 | -7,865 |
Total | 13,033 | 9,801 |
Land [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, plant and equipment, gross | 474 | 121 |
Building [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, plant and equipment, gross | 5,607 | 4,175 |
Machinery and Equipment [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, plant and equipment, gross | 14,089 | 12,286 |
Construction in Progress [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, plant and equipment, gross | $1,275 | $1,084 |
Note_12_Goodwill_and_Other_Int2
Note 12 - Goodwill and Other Intangible Assets (Details) (USD $) | 3 Months Ended | 9 Months Ended | 6 Months Ended | ||||||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | ||
Optical Communications [Member] | Optical Communications [Member] | Samsung Corning Precision Materials Co., Ltd. [Member] | |||||||
Note 12 - Goodwill and Other Intangible Assets (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | |
Goodwill, Purchase Accounting Adjustments | ' | ' | $39,000,000 | [1] | ' | ' | ' | ' | $39,000,000 |
Goodwill, Gross | 7,600,000,000 | ' | 7,600,000,000 | ' | 7,500,000,000 | ' | ' | ' | |
Goodwill, Impaired, Accumulated Impairment Loss | ' | ' | ' | ' | ' | 6,500,000,000 | 6,500,000,000 | ' | |
Amortization of Intangible Assets | 9,000,000 | 8,000,000 | 25,000,000 | 23,000,000 | ' | ' | ' | ' | |
Finite-Lived Intangible Assets, Amortization Expense, Remainder of Fiscal Year | 34,000,000 | ' | 34,000,000 | ' | ' | ' | ' | ' | |
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 33,000,000 | ' | 33,000,000 | ' | ' | ' | ' | ' | |
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 32,000,000 | ' | 32,000,000 | ' | ' | ' | ' | ' | |
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 32,000,000 | ' | 32,000,000 | ' | ' | ' | ' | ' | |
Finite-Lived Intangible Assets, Amortization Expense, Year Five | 32,000,000 | ' | 32,000,000 | ' | ' | ' | ' | ' | |
Finite-Lived Intangible Assets, Amortization Expense, after Year Five | $32,000,000 | ' | $32,000,000 | ' | ' | ' | ' | ' | |
[1] | In the second and third quarters of 2014, the company recorded measurement period adjustments of $39 million for the Acquisition of Samsung Corning Precision Materials primarily related to the accrual of contingent liabilities and employee benefit obligations. |
Note_12_Goodwill_and_Other_Int3
Note 12 - Goodwill and Other Intangible Assets (Details) - Carrying Amount of Goodwill by Segment (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2014 | |
Goodwill [Line Items] | ' | |
Balance | $1,002 | |
Goodwill (1) | 122 | [1] |
Measurement period adjustments (2) | 39 | [2] |
Foreign currency translation adjustment | -21 | |
Balance | 1,142 | |
Display Technologies [Member] | ' | |
Goodwill [Line Items] | ' | |
Balance | 9 | |
Goodwill (1) | 68 | [1] |
Measurement period adjustments (2) | 39 | [2] |
Foreign currency translation adjustment | -1 | |
Balance | 115 | |
Optical Communications [Member] | ' | |
Goodwill [Line Items] | ' | |
Balance | 240 | |
Foreign currency translation adjustment | -1 | |
Balance | 239 | |
Specialty Materials [Member] | ' | |
Goodwill [Line Items] | ' | |
Balance | 150 | |
Goodwill (1) | 54 | [1] |
Foreign currency translation adjustment | -4 | |
Balance | 200 | |
Life Sciences [Member] | ' | |
Goodwill [Line Items] | ' | |
Balance | 603 | |
Foreign currency translation adjustment | -15 | |
Balance | $588 | |
[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. | |
[2] | In the second and third quarters of 2014, the company recorded measurement period adjustments of $39 million for the Acquisition of Samsung Corning Precision Materials primarily related to the accrual of contingent liabilities and employee benefit obligations. |
Note_12_Goodwill_and_Other_Int4
Note 12 - Goodwill and Other Intangible Assets (Details) - Other Intangible Assets (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Other intangible assets, gross | $720 | $726 |
Other intangible assets, accumulated amortization | 209 | 186 |
Other intangible assets, net | 511 | 540 |
Patents, Trademarks, and Trade Names [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Other intangible assets, gross | 304 | 290 |
Other intangible assets, accumulated amortization | 147 | 138 |
Other intangible assets, net | 157 | 152 |
Customer Lists and Other [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Other intangible assets, gross | 416 | 436 |
Other intangible assets, accumulated amortization | 62 | 48 |
Other intangible assets, net | $354 | $388 |
Note_13_Employee_Retirement_Pl2
Note 13 - Employee Retirement Plans (Details) - Summary of Net Periodic Benefit Cost (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Recognition of Actuarial Gain [Member] | Pension Plan [Member] | ' | ' | ' | ' |
Note 13 - Employee Retirement Plans (Details) - Summary of Net Periodic Benefit Cost [Line Items] | ' | ' | ' | ' |
Recognition of actuarial gain | ' | ' | ' | ($41) |
Pension Plan [Member] | ' | ' | ' | ' |
Note 13 - Employee Retirement Plans (Details) - Summary of Net Periodic Benefit Cost [Line Items] | ' | ' | ' | ' |
Service cost | 30 | 16 | 62 | 53 |
Interest cost | 42 | 33 | 118 | 99 |
Expected return on plan assets | -45 | -42 | -131 | -126 |
Amortization of prior service cost (credit) | 1 | 1 | 4 | 3 |
Total pension and postretirement benefit expense (credit) | 28 | 8 | 53 | -12 |
Other Pension Plan, Postretirement or Supplemental Plans [Member] | ' | ' | ' | ' |
Note 13 - Employee Retirement Plans (Details) - Summary of Net Periodic Benefit Cost [Line Items] | ' | ' | ' | ' |
Service cost | 4 | 3 | 9 | 10 |
Interest cost | 10 | 10 | 28 | 29 |
Amortization of net loss | ' | 3 | ' | 11 |
Amortization of prior service cost (credit) | -3 | -1 | -5 | -4 |
Total pension and postretirement benefit expense (credit) | $11 | $15 | $32 | $46 |
Note_14_Hedging_Activities_Det
Note 14 - Hedging Activities (Details) (Not Designated as Hedging Instrument [Member], USD $) | Sep. 30, 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 | $13.90 | $6.80 |
Gross Notional Value [Member] | Collar Options [Member] | ' | ' |
Note 14 - Hedging Activities (Details) [Line Items] | ' | ' |
Derivative, Notional Amount | 4.4 | 5.9 |
Gross Notional Value [Member] | Foreign Exchange Forward [Member] | ' | ' |
Note 14 - Hedging Activities (Details) [Line Items] | ' | ' |
Derivative, Notional Amount | 9.5 | 0.9 |
Net Notional Value [Member] | Collar Options [Member] | ' | ' |
Note 14 - Hedging Activities (Details) [Line Items] | ' | ' |
Derivative, Notional Amount | $2.30 | $3 |
Note_14_Hedging_Activities_Det1
Note 14 - Hedging Activities (Details) - Summary of Notional Amounts and Respective Fair Values of Derivative Financial Instruments (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Derivatives designated as hedging instruments | ' | ' |
Notional amount | $15,717 | $8,613 |
Asset derivatives, fair value | 881 | 462 |
Liability derivatives, fair value | -55 | -37 |
Designated as Hedging Instrument [Member] | Foreign Exchange Contract [Member] | ' | ' |
Derivatives designated as hedging instruments | ' | ' |
Notional amount | 150 | 433 |
Asset derivatives, fair value | 8 | 8 |
Liability derivatives, fair value | ' | -3 |
Designated as Hedging Instrument [Member] | Interest Rate Swap [Member] | ' | ' |
Derivatives designated as hedging instruments | ' | ' |
Notional amount | 550 | 550 |
Liability derivatives, fair value | -18 | -28 |
Designated as Hedging Instrument [Member] | ' | ' |
Derivatives designated as hedging instruments | ' | ' |
Asset derivatives, fair value | 1 | ' |
Not Designated as Hedging Instrument [Member] | Foreign Exchange Contract [Member] | ' | ' |
Derivatives designated as hedging instruments | ' | ' |
Notional amount | 1,118 | 804 |
Asset derivatives, fair value | 17 | 20 |
Liability derivatives, fair value | -11 | -3 |
Not Designated as Hedging Instrument [Member] | Translated Earnings Contracts [Member] | ' | ' |
Derivatives designated as hedging instruments | ' | ' |
Notional amount | 13,899 | 6,826 |
Asset derivatives, fair value | 378 | 344 |
Liability derivatives, fair value | -18 | -3 |
Not Designated as Hedging Instrument [Member] | ' | ' |
Derivatives designated as hedging instruments | ' | ' |
Asset derivatives, fair value | 477 | 90 |
Liability derivatives, fair value | ($8) | ' |
Note_14_Hedging_Activities_Det2
Note 14 - Hedging Activities (Details) - Effect on Consolidated financial statements (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | ||||
Sales [Member] | Interest Rate Hedges [Member] | ' | ' | ' | ' | ||||
Note 14 - Hedging Activities (Details) - Effect on Consolidated financial statements [Line Items] | ' | ' | ' | ' | ||||
Gain Reclassified into Income | $1 | [1] | ' | $1 | [2] | ' | ||
Cost of Sales [Member] | Interest Rate Hedges [Member] | ' | ' | ' | ' | ||||
Note 14 - Hedging Activities (Details) - Effect on Consolidated financial statements [Line Items] | ' | ' | ' | ' | ||||
Gain (Loss) Recognized in OCI | ' | 3 | ' | 40 | ||||
Gain Reclassified into Income | 2 | [1] | 9 | [1] | 2 | [2] | 28 | [2] |
Other Income [Member] | Foreign Exchange Contract [Member] | ' | ' | ' | ' | ||||
Note 14 - Hedging Activities (Details) - Effect on Consolidated financial statements [Line Items] | ' | ' | ' | ' | ||||
Gain (Loss) Recognized in OCI | 11 | -3 | 6 | 48 | ||||
Gain Reclassified into Income | ' | 17 | [1] | ' | 48 | [2] | ||
Cash Flow Hedging [Member] | ' | ' | ' | ' | ||||
Note 14 - Hedging Activities (Details) - Effect on Consolidated financial statements [Line Items] | ' | ' | ' | ' | ||||
Gain (Loss) Recognized in OCI | 11 | 0 | 6 | 88 | ||||
Gain Reclassified into Income | $3 | [1] | $26 | [1] | $3 | [2] | $76 | [2] |
[1] | The amount of hedge ineffectiveness for the three months ended September 30, 2014 and 2013 was insignificant. | |||||||
[2] | The amount of hedge ineffectiveness for the nine months ended September 30, 2014 and 2013 was insignificant. |
Note_14_Hedging_Activities_Det3
Note 14 - Hedging Activities (Details) - Effect on Consolidated financial statements (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | ||||
Note 14 - Hedging Activities (Details) - Effect on Consolidated financial statements [Line Items] | ' | ' | ' | ' | ||||
Gain (loss) recognized in income | ' | ' | $600 | $205 | ||||
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 | 21 | [1] | -6 | [1] | 16 | [1] | 82 | [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 | 5 | [1] | -2 | [1] | 6 | [1] | 83 | [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 | 739 | [1] | -46 | [1] | 600 | [1] | 205 | [1] |
Undesignated [Member] | ' | ' | ' | ' | ||||
Note 14 - Hedging Activities (Details) - Effect on Consolidated financial statements [Line Items] | ' | ' | ' | ' | ||||
Gain (loss) recognized in income | $765 | [1] | ($54) | [1] | $622 | [1] | $370 | [1] |
[1] | Certain amounts for prior periods were reclassified to conform to the current year presentation. |
Note_15_Fair_Value_Measurement2
Note 15 - Fair Value Measurements (Details) (USD $) | 9 Months Ended | 3 Months Ended | |||
In Millions, unless otherwise specified | Sep. 30, 2014 | Jan. 15, 2014 | Jan. 15, 2014 | Sep. 30, 2014 | Jan. 15, 2014 |
Revenues Generated by Samsung Corning Precision Materials [Member] | Volume of Certain Sales [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] | ||||
Note 15 - Fair Value Measurements (Details) [Line Items] | ' | ' | ' | ' | ' |
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High | ' | $665 | $100 | ' | ' |
Business Combination, Contingent Consideration, Asset | ' | ' | ' | 273 | 196 |
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Asset | $77 | ' | ' | $77 | ' |
Note_15_Fair_Value_Measurement3
Note 15 - Fair Value Measurements (Details) - Major Categories of Financial Assets and Liabilities Measured on a Recurring Basis (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | ||
In Millions, unless otherwise specified | ||||
Non-current assets: | ' | ' | ||
Other assets | $1,170 | $473 | ||
Current Assets [Member] | Fair Value, Inputs, Level 1 [Member] | ' | ' | ||
Current assets: | ' | ' | ||
Short-term investments | 762 | 531 | ||
Current Assets [Member] | Fair Value, Inputs, Level 2 [Member] | ' | ' | ||
Current assets: | ' | ' | ||
Other current assets | 404 | [1] | 372 | [2] |
Current Assets [Member] | ' | ' | ||
Current assets: | ' | ' | ||
Short-term investments | 762 | 531 | ||
Other current assets | 404 | [1] | 372 | [2] |
Non Current Assets [Member] | Fair Value, Inputs, Level 2 [Member] | ' | ' | ||
Non-current assets: | ' | ' | ||
Other assets | 516 | [1],[3] | 128 | [2],[4] |
Non Current Assets [Member] | Fair Value, Inputs, Level 3 [Member] | ' | ' | ||
Non-current assets: | ' | ' | ||
Other assets | 273 | [1],[3] | ' | |
Non Current Assets [Member] | ' | ' | ||
Non-current assets: | ' | ' | ||
Other assets | 789 | [1],[3] | 128 | [2],[4] |
Current Liabilities [Member] | Fair Value, Inputs, Level 2 [Member] | ' | ' | ||
Current liabilities: | ' | ' | ||
Other liabilities | 29 | [1] | 9 | [2] |
Current Liabilities [Member] | ' | ' | ||
Current liabilities: | ' | ' | ||
Other liabilities | 29 | [1] | 9 | [2] |
Non Current Liabilities [Member] | Fair Value, Inputs, Level 2 [Member] | ' | ' | ||
Current liabilities: | ' | ' | ||
Other liabilities | 26 | [1] | 28 | [2] |
Non Current Liabilities [Member] | ' | ' | ||
Current liabilities: | ' | ' | ||
Other liabilities | $26 | [1] | $28 | [2] |
[1] | Derivative assets and liabilities include foreign exchange contracts, including forwards, zero-cost and purchased collars, together with interest rate swaps which are measured using observable quoted prices for similar assets and liabilities. | |||
[2] | Derivative assets and liabilities include foreign exchange contracts, including forwards and purchased collars, together with interest rate swaps which are measured using observable quoted prices for similar assets and liabilities. | |||
[3] | Other assets include asset-backed securities which are measured using observable quoted prices for similar assets and a contingent consideration asset which was measured by applying an option pricing model using projected future Corning Precision Materials' revenue. | |||
[4] | 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 $) | 0 Months Ended | 3 Months Ended | 0 Months Ended | 3 Months Ended | 0 Months Ended | 3 Months Ended | 0 Months Ended | 1 Months Ended | 4 Months Ended | 0 Months Ended | 3 Months Ended | 0 Months Ended | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||||
Jan. 15, 2014 | Mar. 31, 2014 | Sep. 30, 2014 | Jan. 15, 2014 | Mar. 31, 2014 | Jan. 15, 2014 | Mar. 31, 2014 | Jan. 15, 2014 | Jan. 15, 2014 | Jan. 31, 2014 | Oct. 31, 2013 | Jan. 31, 2014 | Jan. 15, 2014 | Mar. 31, 2014 | Oct. 22, 2013 | Mar. 03, 2014 | 28-May-14 | 28-May-14 | Sep. 30, 2014 | Sep. 30, 2014 | |
Convertible Preferred Stock, Series A [Member] | Convertible Preferred Stock, Series A [Member] | Convertible Preferred Stock, Series A [Member] | Convertible Preferred Stock, Series A [Member] | Convertible Preferred Stock, Series A [Member] | Common Stock [Member] | April 24, 2013 [Member] | April 24, 2013 [Member] | April 24, 2013 [Member] | Samsung Corning Precision Materials Co., Ltd. [Member] | April 24, 2013 [Member] | Oct. 22, 2013 [Member] | March 3, 2014 [Member] | March 3, 2014 [Member] | March 3, 2014 [Member] | Jan 15, 2014 [Member] | Jan 15, 2014 [Member] | ||||
Additional Amount Issued at Closing [Member] | Additional Amount Issued at Closing [Member] | Samsung Corning Precision Materials Co., Ltd. [Member] | Samsung Corning Precision Materials Co., Ltd. [Member] | JP Morgan Chase [Member] | JP Morgan Chase [Member] | JP Morgan Chase [Member] | Open Market [Member] | Citibank [Member] | Citibank [Member] | Citibank [Member] | Open Market [Member] | Open Market [Member] | ||||||||
Samsung Corning Precision Materials Co., Ltd. [Member] | Samsung Corning Precision Materials 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 | 400,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred Stock, Dividend Rate, Percentage | ' | ' | ' | ' | ' | ' | ' | 4.25% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Convertible Preferred Stock, Shares Issued upon Conversion (in Shares) | ' | ' | ' | ' | ' | ' | ' | ' | 50,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Convertible Preferred Stock, Threshold Trading Days | ' | ' | ' | ' | ' | ' | ' | '25 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Convertible Preferred Stock, Threshold Consecutive Trading Days | ' | ' | ' | ' | ' | ' | ' | '40 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
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 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,000,000,000 | ' | ' | ' | 2,000,000,000 | 1,250,000,000 | ' | ' | ' | ' |
Treasury Stock, Shares, Acquired (in Shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10,500,000 | 47,100,000 | 57,600,000 | ' | 26,700,000 | ' | 52,500,000 | 8,700,000 | 61,200,000 | 9,600,000 | 27,600,000 |
Accelerated Share Repurchases, Settlement (Payment) or Receipt | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -1,000,000,000 | ' | ' | ' | ' | -1,250,000,000 | ' | ' | ' | ' |
Treasury Stock, Value, Acquired, Cost Method | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 800,000,000 | ' | ' | 484,000,000 | ' | ' | ' | ' | 200,000,000 | 567,000,000 |
Adjustments to Additional Paid in Capital, Other | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -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 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $136,000,000 | ' | ' | ' | ' | ' | ' | ' |
Note_16_Shareholders_Equity_De1
Note 16 - Shareholders' Equity (Details) - Summary of Changes in the Foreign Currency Translation Adjustment Component of AOCI (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
In Millions, unless otherwise specified | Accumulated Translation Adjustment [Member] | Accumulated Translation Adjustment [Member] | Accumulated Translation Adjustment [Member] | Accumulated Translation Adjustment [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' | ' | ' |
Beginning balance | ($489) | $44 | $629 | $373 | $492 | $1,174 |
Other comprehensive (loss) income | ' | ' | -600 | 76 | -313 | -477 |
Equity method affiliates | ' | ' | -76 | 241 | -226 | -7 |
Net current-period other comprehensive (loss) income | ' | ' | -676 | 317 | -539 | -484 |
Ending balance | ($489) | $44 | ($47) | $690 | ($47) | $690 |
Note_17_Sharebased_Compensatio2
Note 17 - Share-based Compensation (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Note 17 - Share-based Compensation (Details) [Line Items] | ' | ' | ' | ' |
Share-based Compensation | $19 | $15 | $47 | $40 |
Maximum Term for Non-Qualified and Incentive Stock Options | ' | ' | '10 years | ' |
Proceeds from Stock Options Exercised | ' | ' | 98 | 54 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value | ' | ' | 60 | 38 |
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 | 15 | ' | 15 | ' |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | ' | ' | '1 year 146 days | ' |
Allocated Share-based Compensation Expense | 9 | 7 | 20 | 18 |
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 | ' |
Restricted Stock [Member] | ' | ' | ' | ' |
Note 17 - Share-based Compensation (Details) [Line Items] | ' | ' | ' | ' |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | 31 | ' | 31 | ' |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | ' | ' | '1 year 255 days | ' |
Allocated Share-based Compensation Expense | $10 | $8 | $27 | $22 |
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 | '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 | '7 years 73 days | '7 years 36 days |
Note_17_Sharebased_Compensatio3
Note 17 - Share-based Compensation (Details) - Summary of Information Concerning Stock Options Outstanding Including the Related Transactions under the Stock Option Plans (USD $) | 9 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 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 | 1,591 | ' |
Granted | $21.01 | ' |
Exercised | -8,000 | ' |
Exercised | $12.33 | ' |
Forfeited and Expired | -606 | ' |
Forfeited and Expired | $17.30 | ' |
Options Outstanding as of September 30, 2014 | 50,124 | 57,139 |
Options Outstanding as of September 30, 2014 | $18.81 | $17.83 |
Options Outstanding as of September 30, 2014 | '4 years 244 days | ' |
Options Outstanding as of September 30, 2014 | $156,052 | ' |
Options Expected to Vest as of September 30, 2014 | 49,998 | ' |
Options Expected to Vest as of September 30, 2014 | $18.82 | ' |
Options Expected to Vest as of September 30, 2014 | '4 years 244 days | ' |
Options Expected to Vest as of September 30, 2014 | 155,206 | ' |
Options Exercisable as of September 30, 2014 | 36,845 | ' |
Options Exercisable as of September 30, 2014 | $20.39 | ' |
Options Exercisable as of September 30, 2014 | '3 years 171 days | ' |
Options Exercisable as of September 30, 2014 | $78,022 | ' |
Note_17_Sharebased_Compensatio4
Note 17 - Share-based Compensation (Details) - Inputs Used for Valuation of Option Grants under Stock Option Plans | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
Minimum [Member] | ' | ' | ' | ' |
Note 17 - Share-based Compensation (Details) - Inputs Used for Valuation of Option Grants under Stock Option Plans [Line Items] | ' | ' | ' | ' |
Expected volatility | 45.70% | 46.60% | 45.70% | 46.60% |
Weighted-average volatility | 45.70% | 46.70% | 45.70% | 46.70% |
Expected dividends | 1.98% | 2.68% | 1.90% | 2.68% |
Risk-free rate | 2.00% | 1.80% | 2.00% | 0.80% |
Average risk-free rate | 2.00% | 2.20% | 2.00% | 1.10% |
Expected term (in years) | '7 years 73 days | '5 years 292 days | '7 years 73 days | '5 years 292 days |
Pre-vesting departure rate | 0.50% | 0.40% | 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 | 45.70% | 47.00% | 46.20% | 47.40% |
Weighted-average volatility | 45.70% | 46.70% | 46.20% | 47.30% |
Expected dividends | 1.98% | 2.68% | 2.09% | 3.02% |
Risk-free rate | 2.00% | 2.20% | 2.20% | 2.20% |
Average risk-free rate | 2.00% | 2.20% | 2.20% | 2.20% |
Expected term (in years) | '7 years 73 days | '7 years 73 days | '7 years 73 days | '7 years 36 days |
Pre-vesting departure rate | 0.50% | 4.10% | 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 $) | 9 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 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 | 1,476 |
Granted | $20.44 |
Vested | -1,587 |
Vested | $17.34 |
Forfeited | -119 |
Forfeited | $14.73 |
Non-vested shares and share units at September 30, 2014 | 5,878 |
Non-vested shares and share units at September 30, 2014 | $15.30 |
Note_18_Significant_Customers_
Note 18 - Significant Customers (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
Significant Customers [Abstract] | ' | ' | ' | ' |
Number of Significant Customers | 1 | 1 | 1 | 0 |
Note_19_Reportable_Segments_De
Note 19 - Reportable Segments (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Note 19 - Reportable Segments (Details) [Line Items] | ' | ' | ' | ' |
Restructuring Costs and Asset Impairment Charges (in Dollars) | ' | ' | $51 | ' |
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) | 3 | ' | 42 | ' |
Number of Customers Individually Accounting for 10% or More of Each Segment's Sales | 3 | ' | 3 | ' |
Percent of Total Segment Sales | 60.00% | ' | 61.00% | ' |
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 | 1 | ' | 1 | ' |
Percent of Total Segment Sales | 13.00% | ' | 10.00% | ' |
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 | ' | 3 | ' |
Percent of Total Segment Sales | 89.00% | ' | 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 | ' | 3 | ' |
Percent of Total Segment Sales | 50.00% | ' | 48.00% | ' |
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 | ' | 2 | ' |
Percent of Total Segment Sales | 47.00% | ' | 45.00% | ' |
Dow Corning Corporation [Member] | Energy Tax Credit [Member] | ' | ' | ' | ' |
Note 19 - Reportable Segments (Details) [Line Items] | ' | ' | ' | ' |
Income Tax Credits and Adjustments (in Dollars) | 8 | ' | ' | ' |
Dow Corning Corporation [Member] | Foreign Tax Credit [Member] | ' | ' | ' | ' |
Note 19 - Reportable Segments (Details) [Line Items] | ' | ' | ' | ' |
Income Tax Credits and Adjustments (in Dollars) | 38 | ' | ' | ' |
Dow Corning Corporation [Member] | Equity Investment [Member] | ' | ' | ' | ' |
Note 19 - Reportable Segments (Details) [Line Items] | ' | ' | ' | ' |
Restructuring Costs and Asset Impairment Charges (in Dollars) | ' | ' | ' | 11 |
Dow Corning Corporation [Member] | ' | ' | ' | ' |
Note 19 - Reportable Segments (Details) [Line Items] | ' | ' | ' | ' |
Derivative, Loss on Derivative (in Dollars) | 8 | ' | ' | ' |
Derivative, Gain on Derivative (in Dollars) | ' | 16 | 29 | 16 |
Gain (Loss) on Contract Termination (in Dollars) | ' | 30 | ' | 30 |
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount (in Dollars) | ' | $4 | ' | $4 |
Minimum [Member] | ' | ' | ' | ' |
Note 19 - Reportable Segments (Details) [Line Items] | ' | ' | ' | ' |
Number of Material Formulations | ' | ' | 150 | ' |
Note_19_Reportable_Segments_De1
Note 19 - Reportable Segments (Details) - Reportable Segments (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
Net sales | $2,540 | $2,067 | $7,311 | $5,863 | ||||
Restructuring, impairment & other charges | ' | ' | 51 | ' | ||||
Operating Segments [Member] | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
Net sales | 2,540 | 2,067 | 7,311 | 5,863 | ||||
Depreciation | 287 | [1] | 237 | [1] | 863 | [1] | 722 | [1] |
Amortization of purchased intangibles | 9 | 8 | 25 | 23 | ||||
Research, development and engineering expenses | 173 | [2] | 154 | [2] | 525 | [2] | 458 | [2] |
Restructuring, impairment & other charges | ' | ' | 51 | ' | ||||
Equity in earnings of affiliated companies | 1 | 78 | -1 | 334 | ||||
Income tax (provision) benefit | -212 | -160 | -639 | -445 | ||||
Net income (loss) | 533 | [3] | 465 | [3] | 1,208 | [3] | 1,400 | [3] |
Display Technologies [Member] | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
Net sales | 1,009 | 648 | 2,925 | 1,929 | ||||
Depreciation | 166 | [1] | 121 | [1] | 510 | [1] | 362 | [1] |
Research, development and engineering expenses | 31 | [2] | 23 | [2] | 117 | [2] | 60 | [2] |
Restructuring, impairment & other charges | 3 | ' | 42 | ' | ||||
Equity in earnings of affiliated companies | -3 | 73 | -16 | 314 | ||||
Income tax (provision) benefit | -136 | -86 | -453 | -250 | ||||
Net income (loss) | 387 | [3] | 318 | [3] | 878 | [3] | 1,004 | [3] |
Optical Communications [Member] | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
Net sales | 698 | 650 | 1,977 | 1,721 | ||||
Depreciation | 38 | [1] | 38 | [1] | 111 | [1] | 110 | [1] |
Amortization of purchased intangibles | 3 | 3 | 7 | 7 | ||||
Research, development and engineering expenses | 35 | [2] | 37 | [2] | 106 | [2] | 103 | [2] |
Restructuring, impairment & other charges | ' | ' | 12 | ' | ||||
Equity in earnings of affiliated companies | ' | ' | ' | 2 | ||||
Income tax (provision) benefit | -35 | -32 | -85 | -87 | ||||
Net income (loss) | 68 | [3] | 62 | [3] | 156 | [3] | 173 | [3] |
Environmental Technologies [Member] | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
Net sales | 282 | 225 | 842 | 681 | ||||
Depreciation | 29 | [1] | 30 | [1] | 89 | [1] | 91 | [1] |
Research, development and engineering expenses | 23 | [2] | 23 | [2] | 65 | [2] | 68 | [2] |
Equity in earnings of affiliated companies | ' | ' | 2 | 1 | ||||
Income tax (provision) benefit | -28 | -16 | -72 | -47 | ||||
Net income (loss) | 57 | [3] | 32 | [3] | 147 | [3] | 95 | [3] |
Specialty Materials [Member] | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
Net sales | 327 | 326 | 886 | 885 | ||||
Depreciation | 30 | [1] | 30 | [1] | 86 | [1] | 104 | [1] |
Research, development and engineering expenses | 35 | [2] | 33 | [2] | 102 | [2] | 108 | [2] |
Equity in earnings of affiliated companies | ' | 1 | ' | 4 | ||||
Income tax (provision) benefit | -25 | -32 | -62 | -79 | ||||
Net income (loss) | 43 | [3] | 65 | [3] | 113 | [3] | 162 | [3] |
Life Sciences [Member] | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
Net sales | 214 | 215 | 647 | 641 | ||||
Depreciation | 15 | [1] | 14 | [1] | 46 | [1] | 42 | [1] |
Amortization of purchased intangibles | 6 | 5 | 18 | 16 | ||||
Research, development and engineering expenses | 6 | [2] | 5 | [2] | 16 | [2] | 15 | [2] |
Income tax (provision) benefit | -9 | -10 | -26 | -28 | ||||
Net income (loss) | 19 | [3] | 20 | [3] | 54 | [3] | 57 | [3] |
All Other [Member] | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
Net sales | 10 | 3 | 34 | 6 | ||||
Depreciation | 9 | [1] | 4 | [1] | 21 | [1] | 13 | [1] |
Research, development and engineering expenses | 43 | [2] | 33 | [2] | 119 | [2] | 104 | [2] |
Restructuring, impairment & other charges | -3 | ' | -3 | ' | ||||
Equity in earnings of affiliated companies | 4 | 4 | 13 | 13 | ||||
Income tax (provision) benefit | 21 | 16 | 59 | 46 | ||||
Net income (loss) | ($41) | [3] | ($32) | [3] | ($140) | [3] | ($91) | [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 | 9 Months Ended | ||||||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' | ' | ||||
Net Income | $1,014 | $408 | $1,484 | $1,540 | ||||
Unallocated amounts: | ' | ' | ' | ' | ||||
Net financing costs (1) | -27 | [1] | -3 | [1] | -86 | [1] | -65 | [1] |
Stock-based compensation expense | -19 | -15 | -47 | -40 | ||||
Exploratory research | -24 | -29 | -75 | -80 | ||||
Corporate contributions | -19 | -7 | -35 | -32 | ||||
Equity in earnings of affiliated companies, net of impairments (2) | 94 | [2] | 59 | [2] | 245 | [2] | 142 | [2] |
Asbestos settlement | -5 | -5 | -11 | -13 | ||||
Purchased collars and average rate forward contracts, net of tax | 478 | -46 | 405 | 206 | ||||
Other corporate items (3) | 3 | [3] | -11 | [3] | -120 | [3] | 22 | [3] |
Reportable Segments [Member] | ' | ' | ' | ' | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' | ' | ||||
Net Income | 574 | 497 | 1,348 | 1,491 | ||||
Non Reportable Segments [Member] | ' | ' | ' | ' | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' | ' | ||||
Net Income | ($41) | ($32) | ($140) | ($91) | ||||
[1] | Net financing costs include interest income, interest expense and investment gains associated with benefit plans. | |||||||
[2] | Primarily represents the equity earnings of Dow Corning, which, for the three months ended September 30, 2014, includes our portion of a mark-to-market loss on a derivative instrument of $(8) million (after-tax), an energy tax credit of $8 million (after-tax), and a foreign tax credit of $38 million (after-tax). For the nine months ended September 30, 2014, the equity earnings of Dow Corning included our portion of a mark-to-market gain on a derivative instrument of $29 million (after-tax). For the three and nine months ended September 30, 2013, the equity earnings of Dow Corning includes our portion of gains in the amounts of approximately $30 million for the resolution of contract disputes against customers relating to enforcement of long-term supply agreements and $16 million for the positive impact of the settlement of a derivative, along with a charge of $4 million related to the impact of a tax valuation allowance. Also included in the nine months ended September 30, 2013, an $11 million restructuring charge for our share of costs for headcount reductions and asset write-offs. | |||||||
[3] | For the nine months ended September 30, 2013, Corning recorded a $54 million tax benefit for the impact of the American Taxpayer Relief Act enacted on January 3, 2013 and made retroactive to 2012. |