Document_And_Entity_Informatio
Document And Entity Information | 3 Months Ended | |
Mar. 31, 2015 | Apr. 15, 2015 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | CORNING INC /NY | |
Document Type | 10-Q | |
Current Fiscal Year End Date | -19 | |
Entity Common Stock, Shares Outstanding | 1,258,553,209 | |
Amendment Flag | FALSE | |
Entity Central Index Key | 24741 | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Entity Filer Category | Large Accelerated Filer | |
Entity Well-known Seasoned Issuer | Yes | |
Document Period End Date | 31-Mar-15 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q1 |
Consolidated_Statements_of_Inc
Consolidated Statements of Income (Unaudited) (USD $) | 3 Months Ended | |||
In Millions, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | ||
Net sales | $2,265 | $2,289 | ||
Cost of sales | 1,336 | 1,354 | ||
Gross margin | 929 | 935 | ||
Operating expenses: | ||||
Selling, general and administrative expenses | 316 | 397 | ||
Research, development and engineering expenses | 189 | 198 | ||
Amortization of purchased intangibles | 12 | 8 | ||
Restructuring, impairment and other charges | 17 | |||
Operating income | 412 | 315 | ||
Equity in earnings of affiliated companies | 94 | 86 | ||
Interest income | 5 | 12 | ||
Interest expense | -30 | -30 | ||
Transaction-related gain, net | 74 | |||
Foreign currency transaction and hedge gain (loss), net | 33 | -6 | ||
Other (expense) income, net (Note 1) | -21 | 30 | ||
Income before income taxes | 493 | 481 | ||
Provision for income taxes (Note 4) | -86 | -180 | ||
Net income attributable to Corning Incorporated | $407 | $301 | ||
Earnings per common share attributable to Corning Incorporated: | ||||
Basic (Note 5) (in Dollars per share) | $0.30 | $0.21 | ||
Diluted (Note 5) (in Dollars per share) | $0.29 | $0.20 | ||
Dividends declared per common share (1) (in Dollars per share) | $0 | [1] | $0.10 | [1] |
[1] | The first quarter 2015 dividend was declared on December 3, 2014. |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (Unaudited) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Net income attributable to Corning Incorporated | $407 | $301 |
Other comprehensive loss, net of tax: | ||
Foreign currency translation adjustments and other | -256 | -132 |
Net unrealized gains on investments | 1 | 13 |
Unamortized gains (losses) and prior service credits (costs) for postretirement benefit plans | 1 | 9 |
Net unrealized gains (losses) on designated hedges | 5 | -4 |
-249 | -114 | |
Comprehensive income attributable to Corning Incorporated | $158 | $187 |
Consolidated_Balance_Sheets_Un
Consolidated Balance Sheets (Unaudited) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Assets | ||
Cash and cash equivalents | $4,304 | $5,309 |
Short-term investments, at fair value (Note 6) | 763 | 759 |
Total cash, cash equivalents and short-term investments | 5,067 | 6,068 |
Trade accounts receivable, net of doubtful accounts and allowances - $46 and $47 | 1,487 | 1,501 |
Inventories, net of inventory reserves - $100 and $127 (Note 7) | 1,331 | 1,322 |
Deferred income taxes (Note 4) | 262 | 248 |
Other current assets | 1,091 | 1,099 |
Total current assets | 9,238 | 10,238 |
Investments (Note 8) | 1,764 | 1,801 |
Property, plant and equipment, net of accumulated depreciation - $8,591 and $8,332 (Note 10) | 12,708 | 12,766 |
Goodwill, net (Note 11) | 1,343 | 1,150 |
Other intangible assets, net (Note 11) | 702 | 497 |
Deferred income taxes (Note 4) | 1,883 | 1,889 |
Other assets | 1,685 | 1,722 |
Total Assets | 29,323 | 30,063 |
Liabilities and Equity | ||
Current portion of long-term debt (Note 3) | 106 | 36 |
Accounts payable | 872 | 997 |
Other accrued liabilities (Note 2) | 917 | 1,291 |
Total current liabilities | 1,895 | 2,324 |
Long-term debt (Note 3) | 3,165 | 3,227 |
Postretirement benefits other than pensions (Note 12) | 810 | 814 |
Other liabilities (Note 2) | 2,081 | 2,046 |
Total liabilities | 7,951 | 8,411 |
Commitments and contingencies (Note 2) | ||
Shareholders’ equity (Note 15): | ||
Convertible preferred stock, Series A – Par value $100 per share; Shares authorized 3,100; Shares issued: 2,300 | 2,300 | 2,300 |
Common stock – Par value $0.50 per share; Shares authorized 3.8 billion; Shares issued: 1,679 million and 1,672 million | 840 | 836 |
Additional paid-in capital – common stock | 13,552 | 13,456 |
Retained earnings | 13,405 | 13,021 |
Treasury stock, at cost; Shares held: 420 million and 398 million | -7,243 | -6,727 |
Accumulated other comprehensive loss | -1,556 | -1,307 |
Total Corning Incorporated shareholders’ equity | 21,298 | 21,579 |
Noncontrolling interests | 74 | 73 |
Total equity | 21,372 | 21,652 |
Total Liabilities and Equity | $29,323 | $30,063 |
Consolidated_Balance_Sheets_Un1
Consolidated Balance Sheets (Unaudited) (Parentheticals) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, except Share data, unless otherwise specified | ||
Doubtful accounts and allowances (in Dollars) | $46 | $47 |
Inventory reserves (in Dollars) | 100 | 127 |
Accumulated depreciation (in Dollars) | $8,591 | $8,332 |
Convertible preferred stock, par value (in Dollars per share) | $100 | $100 |
Convertible preferred stock, shares authorized | 3,100 | 3,100 |
Convertible preferred stock, shares issued | 2,300 | 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 | 1,679,000,000 | 1,672,000,000 |
Treasury stock, at cost, shares held | 420,000,000 | 398,000,000 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (Unaudited) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | |
Cash Flows from Operating Activities: | |||
Net income | $407 | $301 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation | 279 | 289 | |
Amortization of purchased intangibles | 12 | 8 | |
Restructuring, impairment and other charges | 17 | ||
Stock compensation charges | 10 | 15 | |
Equity in earnings of affiliated companies | -94 | -86 | |
Dividends received from affiliated companies | 48 | 1,610 | |
Deferred tax (benefit) expense provision | -5 | 22 | |
Restructuring payments | -13 | -11 | |
Employee benefit payments in excess of expense | -6 | -17 | |
Gains on translated earnings contracts | -29 | -2 | |
Unrealized translation losses (gains) on transactions | 298 | -16 | |
Changes in certain working capital items: | |||
Trade accounts receivable | 35 | 21 | |
Inventories | -1 | -3 | |
Other current assets | -13 | 28 | |
Accounts payable and other current liabilities | -314 | -413 | |
Other, net | -13 | -26 | |
Net cash provided by operating activities | 601 | 1,737 | |
Cash Flows from Investing Activities: | |||
Capital expenditures | -333 | -246 | |
Acquisitions of business, net of cash (paid) received | -531 | 66 | |
Investment in unconsolidated entities | -109 | ||
Proceeds from loan repayments from unconsolidated entities | 4 | 5 | |
Short-term investments – acquisitions | -284 | -445 | |
Short-term investments – liquidations | 282 | 338 | |
Realized gains on translated earnings contracts | 149 | 89 | |
Other, net | 1 | ||
Net cash used in investing activities | -713 | -301 | |
Cash Flows from Financing Activities: | |||
Net repayments of short-term borrowings and current portion of long-term debt | -8 | ||
Proceeds from issuance of commercial paper | 418 | ||
Proceeds from issuance of preferred stock (1) | 400 | [1] | |
Payments from settlement of interest rate swap arrangements | -9 | ||
Proceeds from the exercise of stock options | 89 | 50 | |
Repurchases of common stock for treasury | -477 | -1,901 | |
Dividends paid | -177 | -136 | |
Net cash used in financing activities | -574 | -1,177 | |
Effect of exchange rates on cash | -319 | 5 | |
Net (decrease) increase in cash and cash equivalents | -1,005 | 264 | |
Cash and cash equivalents at beginning of period | 5,309 | 4,704 | |
Cash and cash equivalents at end of period | $4,304 | $4,968 | |
[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. ("Samsung Corning Precision Materials"). Corning also issued to Samsung Display an additional 400 shares of Preferred Stock at closing, for an issue price of $400 million in cash. |
Supplemental_Cash_Flow_Informa
Supplemental Cash Flow Information | 3 Months Ended | |
Mar. 31, 2015 | ||
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. (“Samsung Corning Precision Materials”). Corning also issued to Samsung Display an additional 400 shares of Preferred Stock at closing, for an issue price of $400 million in cash. |
Note_1_Significant_Accounting_
Note 1 - Significant Accounting Policies | 3 Months Ended | |||||
Mar. 31, 2015 | ||||||
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. Generally Accepted Accounting Principles (“GAAP”) for interim financial information. Certain information and note disclosures normally included in financial statements prepared in accordance with 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, 2014 (“2014 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. | ||||||
Certain prior year amounts have been reclassified to conform to the current-year presentation. These reclassifications had no impact on our results of operations, financial position, or changes in shareholders’ equity. | ||||||
Other (Expense) Income, Net | ||||||
“Other (expense) income, net” in Corning’s consolidated statements of income includes the following (in millions): | ||||||
Three months ended | ||||||
March 31, | ||||||
2015 | 2014 | |||||
Net (gain) loss attributable to noncontrolling interests | $ | -2 | $ | 3 | ||
Other, net | -19 | 27 | ||||
Total | $ | -21 | $ | 30 | ||
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. On April 1, 2015, the FASB voted to propose a one-year deferral of the effective date of ASU 2014-09. If finalized, we could elect to adopt the provisions of ASU 2014-09 for annual periods beginning after December 15, 2017, including interim periods within that reporting period. Under this proposal, early adoption for annual periods beginning after December 15, 2016, including interim periods within that reporting period, would also be permissible. We are currently assessing the potential impact of adopting this ASU on our financial statements and related disclosures. | ||||||
Note_2_Commitments_Contingenci
Note 2 - Commitments, Contingencies, and Guarantees | 3 Months Ended |
Mar. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | 2. 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”). | |
Dow Corning Breast Implant Litigation | |
In May 1995, Dow Corning filed for bankruptcy protection to address pending and claimed liabilities arising from many thousands of breast implant product lawsuits. On June 1, 2004, Dow Corning emerged from Chapter 11 with a Plan of Reorganization (the “Plan”) which provided for the settlement or other resolution of implant claims. The Plan also includes releases for Corning and Dow as shareholders in exchange for contributions to the Plan. | |
Under the terms of the Plan, Dow Corning has established and is funding a Settlement Trust and a Litigation Facility to provide a means for tort claimants to settle or litigate their claims. Inclusive of insurance, Dow Corning has paid approximately $1.8 billion to the Settlement Trust. At March 31, 2015 and December 31, 2014, Dow Corning had recorded a reserve for breast implant litigation of $363 million and $364 million, respectively. | |
Other Dow Corning Claims Arising From Bankruptcy Proceedings | |
As a separate matter arising from the bankruptcy proceedings, Dow Corning is defending claims asserted by a number of commercial creditors who claim additional interest at default rates and enforcement costs, during the period from May 1995 through June 2004. As of March 31, 2015, Dow Corning has estimated the liability to commercial creditors to be within the range of $100 million to $328 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 $100 million, net of applicable tax benefits. There are a number of other claims in the bankruptcy proceedings against Dow Corning awaiting resolution by the U.S. District Court, and it is reasonably possible that Dow Corning may record bankruptcy-related charges in the future. The remaining tort claims against Dow Corning are expected to be channeled by the Plan into facilities established by the Plan or otherwise defended by the Litigation Facility. | |
Pittsburgh Corning Corporation and 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 finally confirming an Amended PCC Plan of Reorganization (the “Amended PCC Plan” or the “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. On October 30, 2014, one of the objectors to the Plan appealed the District Court’s affirmation of the Plan to the United States Court of Appeals for the Third Circuit (the “Third Circuit Court of Appeals”). It will likely take many months for the Third Circuit Court of Appeals to render its decision. | |
Under the Plan as affirmed by the Bankruptcy Court and affirmed by the District Court, Corning is required to contribute its equity interests in PCC and Pittsburgh Corning Europe N.V. (“PCE”), a Belgian corporation, and to contribute $290 million in a fixed series of payments, recorded at present value. Corning has the option to use its shares rather than cash to make these payments, but the liability is fixed by dollar value and not the number of shares. The Plan requires Corning to make: (1) one payment of $70 million one year from the date the Plan becomes effective and certain conditions are met; and (2) five additional payments of $35 million, $50 million, $35 million, $50 million, and $50 million, respectively, on each of the five subsequent anniversaries of the first payment, the final payment of which is subject to reduction based on the application of credits under certain circumstances. | |
Non-PCC 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 37,300 claims) alleging injuries from asbestos related to its Corhart business and similar amounts of monetary damages per case. When PCC filed for bankruptcy protection, the Court granted a preliminary injunction to suspend all asbestos cases against PCC, PPG and Corning – including these non-PCC asbestos cases (the “stay”). The stay remains in place as of the date of this filing. Under the Bankruptcy Court’s order confirming the Amended PCC Plan, the stay will remain in place until the Amended PCC Plan is finally affirmed by the District Court and the Third Circuit Court of Appeals. These non-PCC asbestos cases have been covered by insurance without material impact to Corning to date. As of March 31, 2015, 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. In prior periods, Corning 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 Non-PCC Asbestos Claims | |
The liability for the Amended PCC Plan and the non-PCC asbestos claims was estimated to be $682 million at March 31, 2015, compared with an estimate of liability of $681 million at December 31, 2014. The $682 million liability is comprised of $242 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 March 31, 2015 and December 31, 2014, the fair value of $242 million and $241 million of our interest in PCE significantly exceeded its carrying value of $145 million and $162 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. For the three months ended March 31, 2015 and 2014, Corning recorded asbestos litigation expense of $1 million and $2 million, respectively. The entire obligation is classified as a non-current liability, as installment payments for the cash portion of the obligation are not planned to commence until more than 12 months after the Amended PCC Plan becomes effective and the PCE portion of the obligation will be fulfilled through the direct contribution of Corning’s investment in PCE (currently recorded as a non-current other equity method investment). | |
Non-PCC Asbestos Cases Insurance Litigation | |
Several of Corning’s insurers have commenced litigation in state courts for a declaration of the rights and obligations of the parties under insurance policies affecting the non-PCC asbestos cases, including rights that may be affected by the potential resolutions described above. Corning is vigorously contesting these cases, and management is unable to predict the outcome of the litigation. | |
Other Commitments and Contingencies | |
We are required, at the time a guarantee is issued, to recognize a liability for the fair value or market value of the obligation it assumes. In the normal course of our business, we do not routinely provide significant third-party guarantees. Generally, any third party guarantees provided by Corning are limited to certain financial guarantees including stand-by letters of credit and performance bonds, and the incurrence of contingent liabilities in the form of purchase price adjustments related to attainment of milestones. When provided, these guarantees have various terms, and none of these guarantees are individually significant. | |
As of March 31, 2015 and December 31, 2014, contingent guarantees totaled a notional value of $178 million and $150 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 $287 million, at March 31, 2015 and December 31, 2014, respectively. | |
Product warranty liability accruals were considered insignificant at March 31, 2015 and December 31, 2014. | |
Corning is a defendant in various lawsuits, including environmental, product-related suits, the Dow Corning and PCC matters, and is subject to various claims that 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 active hazardous waste sites. Under the Superfund Act, all parties who may have contributed any waste to a hazardous waste site, identified by the Agency, are jointly and severally liable for the cost of cleanup unless the Agency agrees otherwise. It is Corning’s policy to accrue for its estimated liability related to Superfund sites and other environmental liabilities related to property owned by Corning based on expert analysis and continual monitoring by both internal and external consultants. At March 31, 2015 and December 31, 2014, Corning had accrued approximately $41 million (undiscounted) and $43 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. | |
The ability of certain subsidiaries and affiliated companies to transfer funds is limited by provisions of foreign government regulations, affiliate agreements and certain loan agreements. At March 31, 2015, the amount of equity subject to such restrictions for consolidated subsidiaries and affiliated companies was not significant. While this amount is legally restricted, it does not result in operational difficulties since we have generally permitted subsidiaries to retain a majority of equity to support their growth programs. | |
Note_3_Debt
Note 3 - Debt | 3 Months Ended |
Mar. 31, 2015 | |
Debt Disclosure [Abstract] | |
Debt Disclosure [Text Block] | 3. 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 March 31, 2015 and December 31, 2014, compared to recorded book values of $3.2 billion at March 31, 2015 and December 31, 2014. 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. | |
Note_4_Income_Taxes
Note 4 - Income Taxes | 3 Months Ended | |||||
Mar. 31, 2015 | ||||||
Income Tax Disclosure [Abstract] | ||||||
Income Tax Disclosure [Text Block] | 4. Income Taxes | |||||
Our provision for income taxes and the related effective income tax rates were as follows (in millions): | ||||||
Three months ended | ||||||
March 31, | ||||||
2015 | 2014 | |||||
Provision for income taxes | $ | -86 | $ | -180 | ||
Effective tax rate | 17.40% | 37.40% | ||||
For the three months ended March 31, 2015, 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 resulting from a taxable intercompany loan made to the U.S. and the repatriation of a small portion of high-tax foreign current year earnings; and | |||||
· | The impact of equity in earnings of nonconsolidated affiliates reported in the financials net of tax. | |||||
These benefits were partially offset by a discrete tax charge of $11 million to restate deferred tax assets due to a law change enacted in Japan. | ||||||
For the three months ended March 31, 2014, the effective income tax rate differed from the U.S. statutory rate of 35% primarily due to the following benefits: | ||||||
· | Rate differences on income (loss) of consolidated foreign companies, including the benefit of excess foreign tax credits attributable to a taxable intercompany loan made to the U.S.; | |||||
· | The impact of equity in earnings of nonconsolidated affiliates reported in the financials net of tax; and | |||||
· | Tax incentives in foreign jurisdictions, primarily Taiwan. | |||||
These benefits were more than offset principally by a discrete tax charge in the first quarter of 2014 in the amount of $102 million related to South Korean withholding tax on a dividend paid by Samsung Corning Precision Materials to Corning wholly owned foreign subsidiaries. | ||||||
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 1.2 percentage points for the three months ended March 31, 2015 and 2014, respectively. | ||||||
Corning continues to indefinitely reinvest substantially all of its foreign earnings, with the exception of approximately $6 million of current earnings in 2015 that have a net tax benefit associated with their repatriation. Our current analysis indicates that we have sufficient U.S. liquidity, including borrowing capacity, to fund foreseeable U.S. cash needs without requiring the repatriation of foreign cash. One time or unusual items that may impact our ability or intent to keep our foreign earnings and cash indefinitely reinvested include significant U.S. acquisitions, stock repurchases, shareholder dividends, changes in tax laws or the development of tax planning ideas that allow us to repatriate earnings at little or no tax cost or with a tax benefit, 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_5_Earnings_Per_Common_Sha
Note 5 - Earnings Per Common Share | 3 Months Ended | |||||
Mar. 31, 2015 | ||||||
Earnings Per Share [Abstract] | ||||||
Earnings Per Share [Text Block] | 5. Earnings per Common Share | |||||
The following table sets forth the computation of basic and diluted earnings per common share (in millions, except per share amounts): | ||||||
Three months ended | ||||||
March 31, | ||||||
2015 | 2014 | |||||
Net income attributable to Corning Incorporated | $ | 407 | $ | 301 | ||
Less: Series A convertible preferred stock dividend | -24 | -21 | ||||
Net income available to common stockholders - basic | 383 | 280 | ||||
Plus: Series A convertible preferred stock dividend | 24 | |||||
Net income available to common stockholders - diluted | $ | 407 | $ | 280 | ||
Weighted-average common shares outstanding - basic | 1,266 | 1,359 | ||||
Effect of dilutive securities: | ||||||
Stock options and other dilutive securities | 13 | 11 | ||||
Series A convertible preferred stock dividend | 115 | |||||
Weighted-average common shares outstanding - diluted | 1,394 | 1,370 | ||||
Basic earnings per common share | $ | 0.30 | $ | 0.21 | ||
Diluted earnings per common share | $ | 0.29 | $ | 0.20 | ||
Antidilutive potential shares excluded from diluted earnings per common share: | ||||||
Series A convertible preferred stock | 97 | |||||
Employee stock options and awards | 14 | 29 | ||||
Accelerated share repurchase forward contract | 12 | |||||
Total | 14 | 138 | ||||
Note_6_AvailableforSale_Invest
Note 6 - Available-for-Sale Investments | 3 Months Ended | |||||||||||||
Mar. 31, 2015 | ||||||||||||||
Available For Sale Investments [Abstract] | ||||||||||||||
Available For Sale Investments [Text Block] | 6. Available-for-Sale Investments | |||||||||||||
The following is a summary of the fair value of available-for-sale investments (in millions): | ||||||||||||||
Amortized cost | Fair value | |||||||||||||
March 31, | December 31, | March 31, | December 31, | |||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||
Bonds, notes and other securities: | ||||||||||||||
U.S. government and agencies | $ | 761 | $ | 759 | $ | 763 | $ | 759 | ||||||
Total short-term investments | $ | 761 | $ | 759 | $ | 763 | $ | 759 | ||||||
Asset-backed securities | $ | 41 | $ | 42 | $ | 37 | $ | 38 | ||||||
Total long-term investments | $ | 41 | $ | 42 | $ | 37 | $ | 38 | ||||||
We do not intend to sell, nor do we believe it is more likely than not that we would be required to sell, the long-term investment asset-backed securities (which are collateralized by mortgages) before recovery of their amortized cost basis. It is possible that a significant degradation in the delinquency or foreclosure rates in the underlying assets could cause further temporary or other-than-temporary impairments in the future. | ||||||||||||||
The following table summarizes the contractual maturities of available-for-sale securities at March 31, 2015 (in millions): | ||||||||||||||
Less than one year | $535 | |||||||||||||
Due in 1-5 years | 228 | |||||||||||||
Due in 5-10 years | ||||||||||||||
Due after 10 years (1) | 37 | |||||||||||||
Total | $800 | |||||||||||||
-1 | Includes $37 million of asset-based securities that mature over time and are being reported at their final maturity dates. | |||||||||||||
Unrealized gains and losses, net of tax, are computed on a specific identification basis and are reported as a separate component of accumulated other comprehensive (loss) income in shareholders’ equity until realized. | ||||||||||||||
The following tables provide the fair value and gross unrealized losses of the Company’s investments aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at March 31, 2015 and December 31, 2014 (dollars in millions): | ||||||||||||||
March 31, 2015 | ||||||||||||||
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 | $ | 37 | $ | -4 | $ | 37 | $ | -4 | |||||
Total long-term investments | 21 | $ | 37 | $ | -4 | $ | 37 | $ | -4 | |||||
-1 | Unrealized losses in securities less than 12 months were not significant. | |||||||||||||
31-Dec-14 | ||||||||||||||
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 | $ | 37 | $ | -4 | $ | 37 | $ | -4 | |||||
Total long-term investments | 21 | $ | 37 | $ | -4 | $ | 37 | $ | -4 | |||||
-1 | Unrealized losses in securities less than 12 months were not significant. | |||||||||||||
As of March 31, 2015 and December 31, 2014, for securities that have credit losses, an other than temporary impairment loss of $4 million in both periods is recognized in accumulated other comprehensive (loss) income. | ||||||||||||||
For the three months ended March 31, 2015 and 2014, proceeds from sales and maturities of short-term investments totaled approximately $300 million in both periods. | ||||||||||||||
Note_7_Inventories_Net_of_Inve
Note 7 - Inventories, Net of Inventory Reserves | 3 Months Ended | |||||
Mar. 31, 2015 | ||||||
Inventory Disclosure [Abstract] | ||||||
Inventory Disclosure [Text Block] | 7. Inventories, net of inventory reserves | |||||
Inventories, net of inventory reserves comprise the following (in millions): | ||||||
March 31, | December 31, | |||||
2015 | 2014 | |||||
Finished goods | $ | 527 | $ | 486 | ||
Work in process | 257 | 255 | ||||
Raw materials and accessories | 268 | 302 | ||||
Supplies and packing materials | 279 | 279 | ||||
Total inventories, net of inventory reserves | $ | 1,331 | $ | 1,322 | ||
Note_8_Investments
Note 8 - Investments | 3 Months Ended | |||||
Mar. 31, 2015 | ||||||
Equity Method Investments and Joint Ventures [Abstract] | ||||||
Equity Method Investments and Joint Ventures Disclosure [Text Block] | 8. Investments | |||||
Dow Corning Corporation (“Dow Corning”) | ||||||
Dow Corning is a U.S.-based manufacturer of silicone products. Dow Corning’s results of operations follow (in millions): | ||||||
Three months ended | ||||||
March 31, | ||||||
2015 | 2014 | |||||
Statement of Operations: | ||||||
Net sales | $ | 1,364 | $ | 1,524 | ||
Gross profit (1) | $ | 358 | $ | 483 | ||
Net income attributable to Dow Corning | $ | 185 | $ | 191 | ||
Corning’s equity in earnings of Dow Corning | $ | 92 | $ | 92 | ||
-1 | Gross profit for the three months ended March 31, 2015 includes research and development costs of $62 million (2014: $67 million). | |||||
Dow Corning’s net income in the first quarters of 2015 and 2014 includes pre-tax gains on settlements of long-term sales agreements in the amounts of $178 million and $32 million, respectively, and a pre-tax loss of $27 million and a pre-tax gain of $99 million, respectively, on a derivative instrument. | ||||||
Note_9_Acquisitions
Note 9 - Acquisitions | 3 Months Ended | ||
Mar. 31, 2015 | |||
Business Combinations [Abstract] | |||
Business Combination Disclosure [Text Block] | 9. Acquisitions | ||
Corning completed four acquisitions during the first quarter of 2015. A summary of the preliminary allocation of the total purchase consideration for the four acquisitions is as follows (in millions): | |||
Cash and cash equivalents | $ | 2 | |
Trade receivables | 49 | ||
Inventory | 28 | ||
Property, plant and equipment | 37 | ||
Other intangible assets | 233 | ||
Other current and non-current assets | 32 | ||
Current and non-current liabilities | -54 | ||
Total identified net assets | 327 | ||
Purchase consideration | -547 | ||
Goodwill (1) | $ | 220 | |
-1 | The goodwill was allocated to the Optical Communications segment. | ||
The total consideration related to the acquisitions in the first quarter of 2015 primarily consisted of cash and, in two of the acquisitions, contingent consideration. The contingent consideration arrangements may require additional amounts to be paid in 2016 and 2017 based on projections of future revenues. The combined potential additional consideration is capped at $28 million. The total fair value of the contingent consideration for the two acquisitions was fair valued at $13 million as of the acquisition date of each acquisition. | |||
The goodwill generated from these acquisitions is primarily related to the value of the product portfolio and customer/distribution networks acquired, combined with Corning’s existing business segments, as well as market participant synergies and other intangibles that do not qualify for separate recognition. The goodwill is partially deductible for income tax purposes. | |||
For the acquisitions completed during the three months ended March 31, 2015, amortized intangible assets have a weighted-average useful life of approximately 10 years. | |||
Acquisition-related costs of $9 million included in selling, general and administrative expense in the Consolidated Statements of Income for the three months ended March 31, 2015 included costs for legal, accounting, valuation and other professional services. The Consolidated Financial Statements include the operating results of each business combination from the date of acquisition. Pro forma results of operations for the acquisitions completed during the quarter ended March 31, 2015 have not been presented because the effects of the acquisitions, individually and in the aggregate, were not material to Corning’s financial results. | |||
Note_10_Property_Plant_and_Equ
Note 10 - Property, Plant and Equipment, Net of Accumulated Depreciation | 3 Months Ended | |||||
Mar. 31, 2015 | ||||||
Property, Plant and Equipment [Abstract] | ||||||
Property, Plant and Equipment Disclosure [Text Block] | 10. Property, Plant and Equipment, Net of Accumulated Depreciation | |||||
Property, plant and equipment, net of accumulated depreciation follows (in millions): | ||||||
March 31, | December 31, | |||||
2015 | 2014 | |||||
Land | $ | 452 | $ | 458 | ||
Buildings | 5,472 | 5,470 | ||||
Equipment | 13,956 | 13,848 | ||||
Construction in progress | 1,419 | 1,322 | ||||
21,299 | 21,098 | |||||
Accumulated depreciation | -8,591 | -8,332 | ||||
Total | $ | 12,708 | $ | 12,766 | ||
In the three months ended March 31, 2015 and 2014, interest costs capitalized as part of Property, plant and equipment, net of accumulated depreciation, were $10 million in both periods. | ||||||
Manufacturing equipment includes certain components of production equipment that are constructed of precious metals. At March 31, 2015 and December 31, 2014, the recorded value of precious metals totaled $3.1 billion in both periods. Depletion expense for precious metals in the three months ended March 31, 2015 and 2014 totaled $7 million and $8 million, respectively. | ||||||
Note_11_Goodwill_and_Other_Int
Note 11 - Goodwill and Other Intangible Assets | 3 Months Ended | |||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Text Block] | 11. Goodwill and Other Intangible Assets | |||||||||||||||||
The carrying amount of goodwill by segment for the periods ended March 31, 2015 and December 31, 2014 is as follows (in millions): | ||||||||||||||||||
Optical | Display | Specialty | Life | Total | ||||||||||||||
Communications | Technologies | Materials | Sciences | |||||||||||||||
Balance at December 31, 2014 | $ | 238 | $ | 134 | $ | 198 | $ | 580 | $ | 1,150 | ||||||||
Acquired goodwill (1) | 220 | 220 | ||||||||||||||||
Foreign currency translation adjustment | -2 | -1 | -5 | -19 | -27 | |||||||||||||
Balance at March 31, 2015 | $ | 456 | $ | 133 | $ | 193 | $ | 561 | $ | 1,343 | ||||||||
-1 | The Company completed several acquisitions in the Optical Communications segment during the first quarter of 2015. Refer to Note 9 (Acquisitions) to the Consolidated Financial Statements for additional information on these acquisitions. | |||||||||||||||||
Corning’s gross goodwill balances for the periods ended March 31, 2015 and December 31, 2014 were $7.8 billion and $7.6 billion, respectively. Accumulated impairment losses were $6.5 billion for the periods ended March 31, 2015 and December 31, 2014, and were generated entirely through goodwill impairments related to the Optical Communications segment recorded primarily in 2001. | ||||||||||||||||||
Other intangible assets are as follows (in millions): | ||||||||||||||||||
March 31, 2015 | December 31, 2014 | |||||||||||||||||
Gross | Accumulated | Net | Gross | Accumulated | Net | |||||||||||||
amortization | amortization | |||||||||||||||||
Amortized intangible assets: | ||||||||||||||||||
Patents, trademarks, and trade names | $ | 353 | $ | 152 | $ | 201 | $ | 302 | $ | 149 | $ | 153 | ||||||
Customer lists and other | 575 | 74 | 501 | 411 | 67 | 344 | ||||||||||||
Total | $ | 928 | $ | 226 | $ | 702 | $ | 713 | $ | 216 | $ | 497 | ||||||
Corning’s amortized intangible assets are primarily related to the Optical Communications and Life Sciences segments. The net carrying amount of intangible assets increased during the first three months of 2015, primarily due to acquisitions of $233 million in other intangible assets offset by amortization of $12 million and foreign currency translation adjustments of $16 million. | ||||||||||||||||||
Amortization expense related to these intangible assets is estimated to be $57 million for 2015, $55 million annually from 2016 to 2019, and $50 million for 2020. | ||||||||||||||||||
Note_12_Employee_Retirement_Pl
Note 12 - Employee Retirement Plans | 3 Months Ended | |||||||||||
Mar. 31, 2015 | ||||||||||||
Compensation and Retirement Disclosure [Abstract] | ||||||||||||
Pension and Other Postretirement Benefits Disclosure [Text Block] | 12. Employee Retirement Plans | |||||||||||
The following table summarizes the components of net periodic benefit cost for Corning’s defined benefit pension and postretirement health care and life insurance plans (in millions): | ||||||||||||
Pension benefits | Postretirement benefits | |||||||||||
Three months ended | Three months ended | |||||||||||
March 31, | March 31, | |||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||
Service cost | $ | 23 | $ | 16 | $ | 3 | $ | 3 | ||||
Interest cost | 36 | 38 | 8 | 9 | ||||||||
Expected return on plan assets | -45 | -43 | ||||||||||
Amortization of net loss | 1 | |||||||||||
Amortization of prior service cost (credit) | 2 | 2 | -1 | -1 | ||||||||
Total pension and postretirement benefit expense | $ | 16 | $ | 13 | $ | 11 | $ | 11 | ||||
Note_13_Hedging_Activities
Note 13 - Hedging Activities | 3 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Text Block] | 13. Hedging Activities | |||||||||||||||
Undesignated Hedges | ||||||||||||||||
The table below includes a total gross notional value for the translated earnings contracts of $14.7 billion at March 31, 2015 (at December 31, 2014: $12.1 billion), including purchased and zero-cost collars of $5.8 billion (at December 31, 2014: $2.3 billion) and average rate forwards of $8.9 billion (at December 31, 2014: $9.8 billion). With respect to the purchased 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 March 31, 2015, the total net notional value of the purchased and zero-cost collars was $3 billion (at December 31, 2014: $1.2 billion). | ||||||||||||||||
The following tables summarize the notional amounts and respective fair values of Corning’s derivative financial instruments on a gross basis for March 31, 2015 and December 31, 2014 (in millions): | ||||||||||||||||
U.S. Dollar | Asset derivatives | Liability derivatives | ||||||||||||||
Gross notional amount | Balance | Fair value | Balance | Fair value | ||||||||||||
sheet | sheet | |||||||||||||||
March | December | location | March | December | location | March | December | |||||||||
31, 2015 | 31, 2014 | 31, 2015 | 31, 2014 | 31, 2015 | 31, 2014 | |||||||||||
Derivatives designated as hedging instruments | ||||||||||||||||
Foreign exchange contracts | $ 742 | $ 487 | Other current assets | $ 34 | $ 22 | Other accrued liabilities | $ (6) | $ (6) | ||||||||
Other assets | 8 | |||||||||||||||
Interest rate contracts | 1,300 | 1,300 | Other assets | 1 | Other liabilities | -10 | -15 | |||||||||
Derivatives not designated as hedging instruments | ||||||||||||||||
Foreign exchange contracts | 564 | 1,285 | Other current assets | 14 | 17 | Other accrued liabilities | -5 | -5 | ||||||||
Translated earnings contracts | 14,664 | 12,126 | Other current assets | 618 | 649 | Other accrued liabilities | -32 | -33 | ||||||||
Other assets | 811 | 846 | Other liabilities | -55 | ||||||||||||
Total derivatives | $17,270 | $15,198 | $1,485 | $1,535 | ($108) | ($59) | ||||||||||
The following tables summarize the effect of derivative financial instruments on Corning’s consolidated financial statements for the three months ended March 31, 2015 and 2014 (in millions): | ||||||||||||||||
Effect of derivative instruments on the consolidated financial statements | ||||||||||||||||
for the quarter ended March 31 | ||||||||||||||||
Derivatives in hedging relationships | Gain/(loss) | Location of gain/(loss) | Gain reclassified from | |||||||||||||
recognized in other | reclassified from | accumulated OCI into | ||||||||||||||
comprehensive income | accumulated OCI into | income (effective) (1) | ||||||||||||||
(OCI) | income (effective) | |||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
Interest rate hedges | ($13) | Sales | $5 | |||||||||||||
Cost of sales | 2 | |||||||||||||||
Foreign exchange contracts | 27 | ($7) | ||||||||||||||
Total cash flow hedges | $ 14 | ($7) | $7 | |||||||||||||
-1 | The amount of hedge ineffectiveness at March 31, 2015 and 2014 was insignificant. | |||||||||||||||
Gain (loss) recognized in income | ||||||||||||||||
Three months ended March 31, | ||||||||||||||||
Undesignated derivatives | Location | 2015 | 2014 | |||||||||||||
Foreign exchange contracts – balance sheet | Foreign currency transaction and hedge gain (loss), net | $ | 11 | $ | -12 | |||||||||||
Foreign exchange contracts – loans | Foreign currency transaction and hedge gain (loss), net | 2 | 4 | |||||||||||||
Translated earnings contracts | Foreign currency transaction and hedge gain (loss), net | 29 | 2 | |||||||||||||
Total undesignated | $ | 42 | $ | -6 | ||||||||||||
Note_14_Fair_Value_Measurement
Note 14 - Fair Value Measurements | 3 Months Ended | |||||||||||
Mar. 31, 2015 | ||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||
Fair Value Disclosures [Text Block] | 14. Fair Value Measurements | |||||||||||
Fair value standards under U.S. GAAP define fair value, establish a framework for measuring fair value in applying generally accepted accounting principles, and require disclosures about fair value measurements. The standards also identify two kinds of inputs that are used to determine the fair value of assets and liabilities: observable and unobservable. Observable inputs are based on market data or independent sources while unobservable inputs are based on the Company’s own market assumptions. Once inputs have been characterized, the inputs are prioritized into one of three broad levels (provided in the table below) used to measure fair value. Fair value standards apply whenever an entity is measuring fair value under other accounting pronouncements that require or permit fair value measurement and require the use of observable market data when available. | ||||||||||||
The following tables provide fair value measurement information for the Company’s major categories of financial assets and liabilities measured on a recurring basis (in millions): | ||||||||||||
Fair value measurements at reporting date using | ||||||||||||
March 31, | Quoted prices in | Significant other | Significant | |||||||||
2015 | active markets for | observable | unobservable | |||||||||
identical assets | inputs | inputs | ||||||||||
(Level 1) | (Level 2) | (Level 3) | ||||||||||
Current assets: | ||||||||||||
Short-term investments | $ | 763 | $ | 763 | ||||||||
Other current assets (1) | $ | 666 | $ | 666 | ||||||||
Non-current assets: | ||||||||||||
Other assets (1)(2) | $ | 1,301 | $ | 856 | $ | 445 | ||||||
Current liabilities: | ||||||||||||
Other accrued liabilities (1)(3) | $ | 45 | $ | 42 | $ | 3 | ||||||
Non-current liabilities: | ||||||||||||
Other liabilities (1)(3) | $ | 75 | $ | 65 | $ | 10 | ||||||
-1 | Derivative assets and liabilities include foreign exchange forward and purchased collar contracts, and interest rate swaps which are measured using observable quoted prices for similar assets and liabilities. | |||||||||||
-2 | Other assets include asset-backed securities which are measured using observable quoted prices for similar assets and contingent consideration assets which are measured by applying an option pricing model using projected future revenue. | |||||||||||
-3 | Other accrued liabilities and other liabilities include contingent consideration payables which are measured by applying an option pricing model using projected future revenues. | |||||||||||
Fair value measurements at reporting date using | ||||||||||||
December 31, | Quoted prices in | Significant other | Significant | |||||||||
2014 | active markets for | observable | unobservable | |||||||||
identical assets | inputs | inputs | ||||||||||
(Level 1) | (Level 2) | (Level 3) | ||||||||||
Current assets: | ||||||||||||
Short-term investments | $ | 759 | $ | 759 | ||||||||
Other current assets (1) | $ | 687 | $ | 687 | ||||||||
Non-current assets: | ||||||||||||
Other assets (1)(2) | $ | 1,330 | $ | 885 | $ | 445 | ||||||
Current liabilities: | ||||||||||||
Other accrued liabilities (1) | $ | 44 | $ | 44 | ||||||||
Non-current liabilities: | ||||||||||||
Other liabilities (1) | $ | 15 | $ | 15 | ||||||||
-1 | Derivative assets and liabilities include foreign exchange forward and purchased collar contracts, and interest rate swaps which are measured using observable quoted prices for similar assets and liabilities. | |||||||||||
-2 | Other assets include asset-backed securities which are measured using observable quoted prices for similar assets and contingent consideration assets which are measured by applying an option pricing model using projected future revenue. | |||||||||||
As a result of the acquisition of Samsung Corning Precision Materials in January 2014, the Company has contingent consideration that was measured using unobservable (Level 3) inputs. 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. As of March 31, 2015 and December 31, 2014, the fair value of the potential receipt of the contingent consideration in 2018 was $445 million. | ||||||||||||
As a result of the acquisitions of iBwave Solutions Inc. and the fiber-optics business of Samsung Electronics Co., Ltd., the Company has contingent consideration that was measured using unobservable (Level 3) inputs. As of March 31, 2015, the fair value of the contingent consideration payable is $13 million. | ||||||||||||
There were no significant financial assets and liabilities measured on a nonrecurring basis during the quarter ended March 31, 2015. | ||||||||||||
Note_15_Shareholders_Equity
Note 15 - Shareholders' Equity | 3 Months Ended | |||||
Mar. 31, 2015 | ||||||
Stockholders' Equity Note [Abstract] | ||||||
Stockholders' Equity Note Disclosure [Text Block] | 15. 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 2,300 shares of Preferred Stock at an issue price of $1 million per share, for an aggregate issue price of $2.3 billion. 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 March 31, 2015, the Preferred Stock has not been converted, and none of the anti-dilution provisions have been triggered. | ||||||
Share Repurchases | ||||||
During the three months ended March 31, 2015, we repurchased 21.1 million shares of common stock for $502 million as part of a $1.5 billion share repurchase program announced on December 3, 2014. | ||||||
Accumulated Other Comprehensive Income | ||||||
In the first three months of 2015 and 2014, 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 | ||||||
March 31, | ||||||
2015 | 2014 | |||||
Beginning balance | $ | -581 | $ | 492 | ||
Other comprehensive (loss) income | -174 | 25 | ||||
Equity method affiliates | -82 | -157 | ||||
Net current-period other comprehensive (loss) income | -256 | -132 | ||||
Ending balance | $ | -837 | $ | 360 | ||
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_16_Sharebased_Compensatio
Note 16 - Share-based Compensation | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | 16. 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 $10 million and $15 million for the three months ended March 31, 2015 and 2014, respectively. Amounts for all periods presented included compensation expense for employee stock options and time-based restricted stock and restricted stock units. | ||||||||
Stock Options | ||||||||
Corning’s stock option plans provide non-qualified and incentive stock options to purchase authorized but unissued shares, or treasury shares, at the market price on the grant date and generally become exercisable in installments from one to five years from the grant date. The maximum term of non-qualified and incentive stock options is 10 years from the grant date. | ||||||||
The following table summarizes information concerning stock options outstanding including the related transactions under the stock option plans for the three months ended March 31, 2015: | ||||||||
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, 2014 | 48,724 | $18.94 | ||||||
Granted | 501 | 22.70 | ||||||
Exercised | (5,351) | 16.66 | ||||||
Forfeited and Expired | (25) | 20.47 | ||||||
Options Outstanding as of March 31, 2015 | 43,849 | 19.26 | 4.43 | $188,767 | ||||
Options Expected to Vest as of March 31, 2015 | 43,782 | 19.26 | 4.42 | 188,505 | ||||
Options Exercisable as of March 31, 2015 | 37,293 | 19.73 | 3.72 | 148,763 | ||||
The aggregate intrinsic value (market value of stock less option exercise price) in the preceding table represents the total pretax intrinsic value, based on the Company’s closing stock price on March 31, 2015, which would have been received by the option holders had all option holders exercised their “in-the-money” options as of that date. | ||||||||
As of March 31, 2015, there was approximately $8 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 1.9 years. Compensation cost related to stock options was approximately $4 million and $6 million for the three months ended March 31, 2015 and 2014, respectively. | ||||||||
Proceeds received from the exercise of stock options were $89 million and $50 million for the three months ended March 31, 2015 and 2014, respectively. Proceeds received from the exercise of stock options were included in financing activities on the Company’s Consolidated Statements of Cash Flows. The total intrinsic value of options exercised for the three months ended March 31, 2015 and 2014 was approximately $40 million and $32 million, respectively. The income tax benefit realized from share-based compensation was not significant for the three months ended March 31, 2015. There was an immaterial amount of income tax benefits realized from share-based compensation for the three months ended March 31, 2014 due to net credit carryforwards available to the Company. Refer to Note 4 (Income Taxes) to the consolidated financial statements. | ||||||||
The following inputs were used for the valuation of option grants under our stock option plans: | ||||||||
Three months ended March 31, | ||||||||
2015 | 2014 | |||||||
Expected volatility | 44.9 | - | 44.90% | 46.2 | - | 46.20% | ||
Weighted-average volatility | 44.9 | - | 44.90% | 46.2 | - | 46.20% | ||
Expected dividends | 1.92 | - | 1.92% | 2.09 | - | 2.09% | ||
Risk-free rate | 1.9 | - | 1.90% | 2.2 | - | 2.20% | ||
Average risk-free rate | 1.9 | - | 1.90% | 2.2 | - | 2.20% | ||
Expected term (in years) | 7.2 | - | 7.2 | 7.2 | - | 7.2 | ||
Pre-vesting departure rate | 0.6 | - | 0.60% | 0.5 | - | 0.50% | ||
Expected volatility is based on a blended approach defined as the weighted average of the short-term implied volatility, the most recent volatility for the period equal to the expected term, and the most recent 15-year historical volatility. The expected term assumption is the period of time the options are expected to be outstanding, and is calculated using a combination of historical exercise experience adjusted to reflect the current vesting period of options being valued, and partial life cycles of outstanding options. The risk-free rate assumption is the implied rate for a zero-coupon U.S. Treasury bond with a term equal to the option’s expected term. The ranges in the table above reflect results from separate groups of employees exhibiting different exercise behavior. | ||||||||
Incentive Stock Plans | ||||||||
The Corning Incentive Stock Plan permits restricted stock and restricted stock unit grants, either determined by specific performance goals or issued directly, in most instances, subject to the possibility of forfeiture and without cash consideration. Restricted stock and restricted stock units under the Incentive Stock Plan are granted at the closing market price on the grant date, contingently vest over a period of generally one to ten years, and generally have contractual lives of one to ten years. The fair value of each restricted stock grant or restricted stock unit awarded under the Incentive Stock Plan was estimated on the date of grant. | ||||||||
Time-Based Restricted Stock and Restricted Stock Units: | ||||||||
Time-based restricted stock and restricted stock units are issued by the Company on a discretionary basis, and are payable in shares of the Company’s common stock upon vesting. The fair value is based on the closing market price of the Company’s stock on the grant date. Compensation cost is recognized over the requisite vesting period and adjusted for actual forfeitures before vesting. | ||||||||
The following table represents a summary of the status of the Company’s non-vested time-based restricted stock and restricted stock units as of December 31, 2014, and changes which occurred during the three months ended March 31, 2015: | ||||||||
Shares | Weighted | |||||||
(000’s) | Average | |||||||
Grant-Date | ||||||||
Fair Value | ||||||||
Non-vested shares and share units at December 31, 2014 | 5,737 | $ | 15.43 | |||||
Granted | 1,138 | 22.88 | ||||||
Vested | -1,454 | 13.48 | ||||||
Forfeited | ||||||||
Non-vested shares and share units at March 31, 2015 | 5,421 | $ | 17.52 | |||||
As of March 31, 2015, there was approximately $41 million of unrecognized compensation cost related to non-vested time-based restricted stock and restricted stock units compensation arrangements granted under the Plan. The cost is expected to be recognized over a weighted-average period of 1.7 years. Compensation cost related to time-based restricted stock and restricted stock units was approximately $6 million and $9 million for the three months ended March 31, 2015 and 2014, respectively. | ||||||||
Note_17_Significant_Customers
Note 17 - Significant Customers | 3 Months Ended |
Mar. 31, 2015 | |
Significant Customers [Abstract] | |
Significant Customers [Text Block] | 17. Significant Customers |
For the three months ended March 31, 2015 and March 31, 2014, Corning had one customer that individually accounted for 10% or more of the Company’s consolidated net sales. | |
Note_18_Reportable_Segments
Note 18 - Reportable Segments | 3 Months Ended | |||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||||||||
Segment Reporting Disclosure [Text Block] | 18. Reportable Segments | |||||||||||||||||||||
Our reportable segments are as follows: | ||||||||||||||||||||||
· | Display Technologies – manufactures glass substrates for flat panel liquid crystal 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 have been 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 reportable segments differently than we would for stand-alone financial information. Segment net income may not be consistent with measures used by other companies. The accounting policies of our reportable segments are the same as those applied in the consolidated financial statements. | ||||||||||||||||||||||
Reportable Segments (in millions) | ||||||||||||||||||||||
Display | Optical | Environmental | Specialty | Life | All | Total | ||||||||||||||||
Technologies | Communications | Technologies | Materials | Sciences | Other | |||||||||||||||||
Three months ended | ||||||||||||||||||||||
March 31, 2015 | ||||||||||||||||||||||
Net sales | $ | 808 | $ | 697 | $ | 282 | $ | 272 | $ | 197 | $ | 9 | $ | 2,265 | ||||||||
Depreciation (1) | $ | 156 | $ | 38 | $ | 29 | $ | 26 | $ | 15 | $ | 9 | $ | 273 | ||||||||
Amortization of purchased intangibles | $ | 6 | $ | 5 | $ | 11 | ||||||||||||||||
Research, development and engineering expenses (2) | $ | 24 | $ | 33 | $ | 23 | $ | 31 | $ | 5 | $ | 45 | $ | 161 | ||||||||
Restructuring, impairment and other charges | $ | -1 | $ | -1 | ||||||||||||||||||
Equity in earnings of affiliated companies | $ | -2 | $ | 2 | ||||||||||||||||||
Income tax (provision) benefit | $ | -132 | $ | -29 | $ | -23 | $ | -21 | $ | -8 | $ | 23 | $ | -190 | ||||||||
Net income (loss) (3) | $ | 294 | $ | 57 | $ | 48 | $ | 38 | $ | 16 | $ | -48 | $ | 405 | ||||||||
Three months ended | ||||||||||||||||||||||
March 31, 2014 | ||||||||||||||||||||||
Net sales | $ | 929 | $ | 593 | $ | 275 | $ | 261 | $ | 210 | $ | 21 | $ | 2,289 | ||||||||
Depreciation (1) | $ | 173 | $ | 36 | $ | 30 | $ | 27 | $ | 15 | $ | 5 | $ | 286 | ||||||||
Amortization of purchased intangibles | $ | 2 | $ | 6 | $ | 8 | ||||||||||||||||
Research, development and engineering expenses (2) | $ | 45 | $ | 37 | $ | 21 | $ | 33 | $ | 5 | $ | 28 | $ | 169 | ||||||||
Restructuring, impairment and other charges | $ | 5 | $ | 12 | $ | 17 | ||||||||||||||||
Equity in earnings of affiliated companies | $ | -9 | $ | 1 | $ | 2 | $ | -6 | ||||||||||||||
Income tax (provision) benefit | $ | -198 | $ | -19 | $ | -21 | $ | -16 | $ | -8 | $ | 16 | $ | -246 | ||||||||
Net income (loss) (3) | $ | 209 | $ | 27 | $ | 43 | $ | 31 | $ | 17 | $ | -40 | $ | 287 | ||||||||
-1 | Depreciation expense for Corning’s reportable segments includes an allocation of depreciation of corporate property not specifically identifiable to a segment. | |||||||||||||||||||||
-2 | Research, development, and engineering expenses include direct project spending that is identifiable to a segment. | |||||||||||||||||||||
-3 | Many of Corning’s administrative and staff functions are performed on a centralized basis. Where practicable, Corning charges these expenses to segments based upon the extent to which each business uses a centralized function. Other staff functions, such as corporate finance, human resources and legal, are allocated to segments, primarily as a percentage of sales. | |||||||||||||||||||||
A reconciliation of reportable segment net income to consolidated net income follows (in millions): | ||||||||||||||||||||||
Three months ended | ||||||||||||||||||||||
March 31, | ||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||
Net income of reportable segments | $ | 453 | $ | 327 | ||||||||||||||||||
Non-reportable segments | -48 | -40 | ||||||||||||||||||||
Unallocated amounts: | ||||||||||||||||||||||
Net financing costs (1) | -24 | -29 | ||||||||||||||||||||
Stock-based compensation expense | -10 | -15 | ||||||||||||||||||||
Exploratory research | -26 | -27 | ||||||||||||||||||||
Corporate contributions | -12 | -5 | ||||||||||||||||||||
Equity in earnings of affiliated companies, net of impairments (2) | 94 | 92 | ||||||||||||||||||||
Asbestos settlement | -1 | -2 | ||||||||||||||||||||
Purchased collars and average forward contracts | -76 | 2 | ||||||||||||||||||||
Other corporate items (3) | 57 | -2 | ||||||||||||||||||||
Net income | $ | 407 | $ | 301 | ||||||||||||||||||
-1 | Net financing costs include interest income, interest expense, and interest costs and investment gains associated with benefit plans. | |||||||||||||||||||||
-2 | Primarily represents the equity earnings of Dow Corning. | |||||||||||||||||||||
-3 | Other corporate items include the tax impact of the unallocated amounts, excluding purchased collars and average rate forward contracts. | |||||||||||||||||||||
The sales of each of our reportable segments are concentrated across a relatively small number of customers. In the first quarter of 2015, 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 62% 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 86% of total segment sales. | |||||||||||||||||||||
· | In the Specialty Materials segment, three customers accounted for 60% of total segment sales. | |||||||||||||||||||||
· | In the Life Sciences segment, two customers accounted for 45% of total segment sales. | |||||||||||||||||||||
Accounting_Policies_by_Policy_
Accounting Policies, by Policy (Policies) | 3 Months Ended | |||||
Mar. 31, 2015 | ||||||
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. Generally Accepted Accounting Principles (“GAAP”) for interim financial information. Certain information and note disclosures normally included in financial statements prepared in accordance with 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, 2014 (“2014 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. | ||||||
Certain prior year amounts have been reclassified to conform to the current-year presentation. These reclassifications had no impact on our results of operations, financial position, or changes in shareholders’ equity. | ||||||
Other Income and Other Expense Disclosure [Text Block] | Other (Expense) Income, Net | |||||
“Other (expense) income, net” in Corning’s consolidated statements of income includes the following (in millions): | ||||||
Three months ended | ||||||
March 31, | ||||||
2015 | 2014 | |||||
Net (gain) loss attributable to noncontrolling interests | $ | -2 | $ | 3 | ||
Other, net | -19 | 27 | ||||
Total | $ | -21 | $ | 30 | ||
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. On April 1, 2015, the FASB voted to propose a one-year deferral of the effective date of ASU 2014-09. If finalized, we could elect to adopt the provisions of ASU 2014-09 for annual periods beginning after December 15, 2017, including interim periods within that reporting period. Under this proposal, early adoption for annual periods beginning after December 15, 2016, including interim periods within that reporting period, would also be permissible. 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) | 3 Months Ended | |||||
Mar. 31, 2015 | ||||||
Accounting Policies [Abstract] | ||||||
Schedule of Other Nonoperating Income (Expense) [Table Text Block] | Three months ended | |||||
March 31, | ||||||
2015 | 2014 | |||||
Net (gain) loss attributable to noncontrolling interests | $ | -2 | $ | 3 | ||
Other, net | -19 | 27 | ||||
Total | $ | -21 | $ | 30 |
Note_4_Income_Taxes_Tables
Note 4 - Income Taxes (Tables) | 3 Months Ended | |||||
Mar. 31, 2015 | ||||||
Income Tax Disclosure [Abstract] | ||||||
Schedule of Income Tax Provisions and Rates [Table Text Block] | Three months ended | |||||
March 31, | ||||||
2015 | 2014 | |||||
Provision for income taxes | $ | -86 | $ | -180 | ||
Effective tax rate | 17.40% | 37.40% |
Note_5_Earnings_Per_Common_Sha1
Note 5 - Earnings Per Common Share (Tables) | 3 Months Ended | |||||
Mar. 31, 2015 | ||||||
Earnings Per Share [Abstract] | ||||||
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Three months ended | |||||
March 31, | ||||||
2015 | 2014 | |||||
Net income attributable to Corning Incorporated | $ | 407 | $ | 301 | ||
Less: Series A convertible preferred stock dividend | -24 | -21 | ||||
Net income available to common stockholders - basic | 383 | 280 | ||||
Plus: Series A convertible preferred stock dividend | 24 | |||||
Net income available to common stockholders - diluted | $ | 407 | $ | 280 | ||
Weighted-average common shares outstanding - basic | 1,266 | 1,359 | ||||
Effect of dilutive securities: | ||||||
Stock options and other dilutive securities | 13 | 11 | ||||
Series A convertible preferred stock dividend | 115 | |||||
Weighted-average common shares outstanding - diluted | 1,394 | 1,370 | ||||
Basic earnings per common share | $ | 0.30 | $ | 0.21 | ||
Diluted earnings per common share | $ | 0.29 | $ | 0.20 | ||
Antidilutive potential shares excluded from diluted earnings per common share: | ||||||
Series A convertible preferred stock | 97 | |||||
Employee stock options and awards | 14 | 29 | ||||
Accelerated share repurchase forward contract | 12 | |||||
Total | 14 | 138 |
Note_6_AvailableforSale_Invest1
Note 6 - Available-for-Sale Investments (Tables) | 3 Months Ended | |||||||||||||
Mar. 31, 2015 | ||||||||||||||
Available For Sale Investments [Abstract] | ||||||||||||||
Schedule of Available-for-sale Securities Reconciliation [Table Text Block] | Amortized cost | Fair value | ||||||||||||
March 31, | December 31, | March 31, | December 31, | |||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||
Bonds, notes and other securities: | ||||||||||||||
U.S. government and agencies | $ | 761 | $ | 759 | $ | 763 | $ | 759 | ||||||
Total short-term investments | $ | 761 | $ | 759 | $ | 763 | $ | 759 | ||||||
Asset-backed securities | $ | 41 | $ | 42 | $ | 37 | $ | 38 | ||||||
Total long-term investments | $ | 41 | $ | 42 | $ | 37 | $ | 38 | ||||||
Investments Classified by Contractual Maturity Date [Table Text Block] | Less than one year | $535 | ||||||||||||
Due in 1-5 years | 228 | |||||||||||||
Due in 5-10 years | ||||||||||||||
Due after 10 years (1) | 37 | |||||||||||||
Total | $800 | |||||||||||||
Schedule of Fair Value and Gross Unrealized Losses of Investments by Category and Length of Time in Continuous Unrealized Loss Position [Table Text Block] | March 31, 2015 | |||||||||||||
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 | $ | 37 | $ | -4 | $ | 37 | $ | -4 | |||||
Total long-term investments | 21 | $ | 37 | $ | -4 | $ | 37 | $ | -4 | |||||
31-Dec-14 | ||||||||||||||
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 | $ | 37 | $ | -4 | $ | 37 | $ | -4 | |||||
Total long-term investments | 21 | $ | 37 | $ | -4 | $ | 37 | $ | -4 |
Note_7_Inventories_Net_of_Inve1
Note 7 - Inventories, Net of Inventory Reserves (Tables) | 3 Months Ended | |||||
Mar. 31, 2015 | ||||||
Inventory Disclosure [Abstract] | ||||||
Schedule of Inventory, Current [Table Text Block] | March 31, | December 31, | ||||
2015 | 2014 | |||||
Finished goods | $ | 527 | $ | 486 | ||
Work in process | 257 | 255 | ||||
Raw materials and accessories | 268 | 302 | ||||
Supplies and packing materials | 279 | 279 | ||||
Total inventories, net of inventory reserves | $ | 1,331 | $ | 1,322 |
Note_8_Investments_Tables
Note 8 - Investments (Tables) | 3 Months Ended | |||||
Mar. 31, 2015 | ||||||
Equity Method Investments and Joint Ventures [Abstract] | ||||||
Schedule of Affiliate Result of Operations [Table Text Block] | Three months ended | |||||
March 31, | ||||||
2015 | 2014 | |||||
Statement of Operations: | ||||||
Net sales | $ | 1,364 | $ | 1,524 | ||
Gross profit (1) | $ | 358 | $ | 483 | ||
Net income attributable to Dow Corning | $ | 185 | $ | 191 | ||
Corning’s equity in earnings of Dow Corning | $ | 92 | $ | 92 |
Note_9_Acquisitions_Tables
Note 9 - Acquisitions (Tables) | 3 Months Ended | ||
Mar. 31, 2015 | |||
Business Combinations [Abstract] | |||
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | Cash and cash equivalents | $ | 2 |
Trade receivables | 49 | ||
Inventory | 28 | ||
Property, plant and equipment | 37 | ||
Other intangible assets | 233 | ||
Other current and non-current assets | 32 | ||
Current and non-current liabilities | -54 | ||
Total identified net assets | 327 | ||
Purchase consideration | -547 | ||
Goodwill (1) | $ | 220 |
Note_10_Property_Plant_and_Equ1
Note 10 - Property, Plant and Equipment, Net of Accumulated Depreciation (Tables) | 3 Months Ended | |||||
Mar. 31, 2015 | ||||||
Property, Plant and Equipment [Abstract] | ||||||
Property, Plant and Equipment [Table Text Block] | March 31, | December 31, | ||||
2015 | 2014 | |||||
Land | $ | 452 | $ | 458 | ||
Buildings | 5,472 | 5,470 | ||||
Equipment | 13,956 | 13,848 | ||||
Construction in progress | 1,419 | 1,322 | ||||
21,299 | 21,098 | |||||
Accumulated depreciation | -8,591 | -8,332 | ||||
Total | $ | 12,708 | $ | 12,766 |
Note_11_Goodwill_and_Other_Int1
Note 11 - Goodwill and Other Intangible Assets (Tables) | 3 Months Ended | |||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||
Schedule of Goodwill [Table Text Block] | Optical | Display | Specialty | Life | Total | |||||||||||||
Communications | Technologies | Materials | Sciences | |||||||||||||||
Balance at December 31, 2014 | $ | 238 | $ | 134 | $ | 198 | $ | 580 | $ | 1,150 | ||||||||
Acquired goodwill (1) | 220 | 220 | ||||||||||||||||
Foreign currency translation adjustment | -2 | -1 | -5 | -19 | -27 | |||||||||||||
Balance at March 31, 2015 | $ | 456 | $ | 133 | $ | 193 | $ | 561 | $ | 1,343 | ||||||||
Schedule of Finite-Lived Intangible Assets [Table Text Block] | March 31, 2015 | December 31, 2014 | ||||||||||||||||
Gross | Accumulated | Net | Gross | Accumulated | Net | |||||||||||||
amortization | amortization | |||||||||||||||||
Amortized intangible assets: | ||||||||||||||||||
Patents, trademarks, and trade names | $ | 353 | $ | 152 | $ | 201 | $ | 302 | $ | 149 | $ | 153 | ||||||
Customer lists and other | 575 | 74 | 501 | 411 | 67 | 344 | ||||||||||||
Total | $ | 928 | $ | 226 | $ | 702 | $ | 713 | $ | 216 | $ | 497 |
Note_12_Employee_Retirement_Pl1
Note 12 - Employee Retirement Plans (Tables) | 3 Months Ended | |||||||||||
Mar. 31, 2015 | ||||||||||||
Compensation and Retirement Disclosure [Abstract] | ||||||||||||
Schedule of Net Benefit Costs [Table Text Block] | Pension benefits | Postretirement benefits | ||||||||||
Three months ended | Three months ended | |||||||||||
March 31, | March 31, | |||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||
Service cost | $ | 23 | $ | 16 | $ | 3 | $ | 3 | ||||
Interest cost | 36 | 38 | 8 | 9 | ||||||||
Expected return on plan assets | -45 | -43 | ||||||||||
Amortization of net loss | 1 | |||||||||||
Amortization of prior service cost (credit) | 2 | 2 | -1 | -1 | ||||||||
Total pension and postretirement benefit expense | $ | 16 | $ | 13 | $ | 11 | $ | 11 |
Note_13_Hedging_Activities_Tab
Note 13 - Hedging Activities (Tables) | 3 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
Note 13 - 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 | |||||||||||||||
March | December | location | March | December | location | March | December | |||||||||
31, 2015 | 31, 2014 | 31, 2015 | 31, 2014 | 31, 2015 | 31, 2014 | |||||||||||
Derivatives designated as hedging instruments | ||||||||||||||||
Foreign exchange contracts | $ 742 | $ 487 | Other current assets | $ 34 | $ 22 | Other accrued liabilities | $ (6) | $ (6) | ||||||||
Other assets | 8 | |||||||||||||||
Interest rate contracts | 1,300 | 1,300 | Other assets | 1 | Other liabilities | -10 | -15 | |||||||||
Derivatives not designated as hedging instruments | ||||||||||||||||
Foreign exchange contracts | 564 | 1,285 | Other current assets | 14 | 17 | Other accrued liabilities | -5 | -5 | ||||||||
Translated earnings contracts | 14,664 | 12,126 | Other current assets | 618 | 649 | Other accrued liabilities | -32 | -33 | ||||||||
Other assets | 811 | 846 | Other liabilities | -55 | ||||||||||||
Total derivatives | $17,270 | $15,198 | $1,485 | $1,535 | ($108) | ($59) | ||||||||||
Designated as Hedging Instrument [Member] | ||||||||||||||||
Note 13 - Hedging Activities (Tables) [Line Items] | ||||||||||||||||
Schedule of Derivative Instruments, Effect on Other Comprehensive Income (Loss) [Table Text Block] | Effect of derivative instruments on the consolidated financial statements | |||||||||||||||
for the quarter ended March 31 | ||||||||||||||||
Derivatives in hedging relationships | Gain/(loss) | Location of gain/(loss) | Gain reclassified from | |||||||||||||
recognized in other | reclassified from | accumulated OCI into | ||||||||||||||
comprehensive income | accumulated OCI into | income (effective) (1) | ||||||||||||||
(OCI) | income (effective) | |||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
Interest rate hedges | ($13) | Sales | $5 | |||||||||||||
Cost of sales | 2 | |||||||||||||||
Foreign exchange contracts | 27 | ($7) | ||||||||||||||
Total cash flow hedges | $ 14 | ($7) | $7 | |||||||||||||
Not Designated as Hedging Instrument [Member] | ||||||||||||||||
Note 13 - Hedging Activities (Tables) [Line Items] | ||||||||||||||||
Schedule of Derivative Instruments, Effect on Other Comprehensive Income (Loss) [Table Text Block] | Gain (loss) recognized in income | |||||||||||||||
Three months ended March 31, | ||||||||||||||||
Undesignated derivatives | Location | 2015 | 2014 | |||||||||||||
Foreign exchange contracts – balance sheet | Foreign currency transaction and hedge gain (loss), net | $ | 11 | $ | -12 | |||||||||||
Foreign exchange contracts – loans | Foreign currency transaction and hedge gain (loss), net | 2 | 4 | |||||||||||||
Translated earnings contracts | Foreign currency transaction and hedge gain (loss), net | 29 | 2 | |||||||||||||
Total undesignated | $ | 42 | $ | -6 |
Note_14_Fair_Value_Measurement1
Note 14 - Fair Value Measurements (Tables) | 3 Months Ended | |||||||||||
Mar. 31, 2015 | ||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | Fair value measurements at reporting date using | |||||||||||
March 31, | Quoted prices in | Significant other | Significant | |||||||||
2015 | active markets for | observable | unobservable | |||||||||
identical assets | inputs | inputs | ||||||||||
(Level 1) | (Level 2) | (Level 3) | ||||||||||
Current assets: | ||||||||||||
Short-term investments | $ | 763 | $ | 763 | ||||||||
Other current assets (1) | $ | 666 | $ | 666 | ||||||||
Non-current assets: | ||||||||||||
Other assets (1)(2) | $ | 1,301 | $ | 856 | $ | 445 | ||||||
Current liabilities: | ||||||||||||
Other accrued liabilities (1)(3) | $ | 45 | $ | 42 | $ | 3 | ||||||
Non-current liabilities: | ||||||||||||
Other liabilities (1)(3) | $ | 75 | $ | 65 | $ | 10 | ||||||
Fair value measurements at reporting date using | ||||||||||||
December 31, | Quoted prices in | Significant other | Significant | |||||||||
2014 | active markets for | observable | unobservable | |||||||||
identical assets | inputs | inputs | ||||||||||
(Level 1) | (Level 2) | (Level 3) | ||||||||||
Current assets: | ||||||||||||
Short-term investments | $ | 759 | $ | 759 | ||||||||
Other current assets (1) | $ | 687 | $ | 687 | ||||||||
Non-current assets: | ||||||||||||
Other assets (1)(2) | $ | 1,330 | $ | 885 | $ | 445 | ||||||
Current liabilities: | ||||||||||||
Other accrued liabilities (1) | $ | 44 | $ | 44 | ||||||||
Non-current liabilities: | ||||||||||||
Other liabilities (1) | $ | 15 | $ | 15 |
Note_15_Shareholders_Equity_Ta
Note 15 - Shareholders' Equity (Tables) | 3 Months Ended | |||||
Mar. 31, 2015 | ||||||
Stockholders' Equity Note [Abstract] | ||||||
Comprehensive Income (Loss) [Table Text Block] | Three months ended | |||||
March 31, | ||||||
2015 | 2014 | |||||
Beginning balance | $ | -581 | $ | 492 | ||
Other comprehensive (loss) income | -174 | 25 | ||||
Equity method affiliates | -82 | -157 | ||||
Net current-period other comprehensive (loss) income | -256 | -132 | ||||
Ending balance | $ | -837 | $ | 360 |
Note_16_Sharebased_Compensatio1
Note 16 - Share-based Compensation (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
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, 2014 | 48,724 | $18.94 | ||||||
Granted | 501 | 22.70 | ||||||
Exercised | (5,351) | 16.66 | ||||||
Forfeited and Expired | (25) | 20.47 | ||||||
Options Outstanding as of March 31, 2015 | 43,849 | 19.26 | 4.43 | $188,767 | ||||
Options Expected to Vest as of March 31, 2015 | 43,782 | 19.26 | 4.42 | 188,505 | ||||
Options Exercisable as of March 31, 2015 | 37,293 | 19.73 | 3.72 | 148,763 | ||||
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | Three months ended March 31, | |||||||
2015 | 2014 | |||||||
Expected volatility | 44.9 | - | 44.90% | 46.2 | - | 46.20% | ||
Weighted-average volatility | 44.9 | - | 44.90% | 46.2 | - | 46.20% | ||
Expected dividends | 1.92 | - | 1.92% | 2.09 | - | 2.09% | ||
Risk-free rate | 1.9 | - | 1.90% | 2.2 | - | 2.20% | ||
Average risk-free rate | 1.9 | - | 1.90% | 2.2 | - | 2.20% | ||
Expected term (in years) | 7.2 | - | 7.2 | 7.2 | - | 7.2 | ||
Pre-vesting departure rate | 0.6 | - | 0.60% | 0.5 | - | 0.50% | ||
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, 2014 | 5,737 | $ | 15.43 | |||||
Granted | 1,138 | 22.88 | ||||||
Vested | -1,454 | 13.48 | ||||||
Forfeited | ||||||||
Non-vested shares and share units at March 31, 2015 | 5,421 | $ | 17.52 |
Note_18_Reportable_Segments_Ta
Note 18 - Reportable Segments (Tables) | 3 Months Ended | |||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||||||||
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Display | Optical | Environmental | Specialty | Life | All | Total | |||||||||||||||
Technologies | Communications | Technologies | Materials | Sciences | Other | |||||||||||||||||
Three months ended | ||||||||||||||||||||||
March 31, 2015 | ||||||||||||||||||||||
Net sales | $ | 808 | $ | 697 | $ | 282 | $ | 272 | $ | 197 | $ | 9 | $ | 2,265 | ||||||||
Depreciation (1) | $ | 156 | $ | 38 | $ | 29 | $ | 26 | $ | 15 | $ | 9 | $ | 273 | ||||||||
Amortization of purchased intangibles | $ | 6 | $ | 5 | $ | 11 | ||||||||||||||||
Research, development and engineering expenses (2) | $ | 24 | $ | 33 | $ | 23 | $ | 31 | $ | 5 | $ | 45 | $ | 161 | ||||||||
Restructuring, impairment and other charges | $ | -1 | $ | -1 | ||||||||||||||||||
Equity in earnings of affiliated companies | $ | -2 | $ | 2 | ||||||||||||||||||
Income tax (provision) benefit | $ | -132 | $ | -29 | $ | -23 | $ | -21 | $ | -8 | $ | 23 | $ | -190 | ||||||||
Net income (loss) (3) | $ | 294 | $ | 57 | $ | 48 | $ | 38 | $ | 16 | $ | -48 | $ | 405 | ||||||||
Three months ended | ||||||||||||||||||||||
March 31, 2014 | ||||||||||||||||||||||
Net sales | $ | 929 | $ | 593 | $ | 275 | $ | 261 | $ | 210 | $ | 21 | $ | 2,289 | ||||||||
Depreciation (1) | $ | 173 | $ | 36 | $ | 30 | $ | 27 | $ | 15 | $ | 5 | $ | 286 | ||||||||
Amortization of purchased intangibles | $ | 2 | $ | 6 | $ | 8 | ||||||||||||||||
Research, development and engineering expenses (2) | $ | 45 | $ | 37 | $ | 21 | $ | 33 | $ | 5 | $ | 28 | $ | 169 | ||||||||
Restructuring, impairment and other charges | $ | 5 | $ | 12 | $ | 17 | ||||||||||||||||
Equity in earnings of affiliated companies | $ | -9 | $ | 1 | $ | 2 | $ | -6 | ||||||||||||||
Income tax (provision) benefit | $ | -198 | $ | -19 | $ | -21 | $ | -16 | $ | -8 | $ | 16 | $ | -246 | ||||||||
Net income (loss) (3) | $ | 209 | $ | 27 | $ | 43 | $ | 31 | $ | 17 | $ | -40 | $ | 287 | ||||||||
Reconciliation of Revenue from Segments to Consolidated [Table Text Block] | Three months ended | |||||||||||||||||||||
March 31, | ||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||
Net income of reportable segments | $ | 453 | $ | 327 | ||||||||||||||||||
Non-reportable segments | -48 | -40 | ||||||||||||||||||||
Unallocated amounts: | ||||||||||||||||||||||
Net financing costs (1) | -24 | -29 | ||||||||||||||||||||
Stock-based compensation expense | -10 | -15 | ||||||||||||||||||||
Exploratory research | -26 | -27 | ||||||||||||||||||||
Corporate contributions | -12 | -5 | ||||||||||||||||||||
Equity in earnings of affiliated companies, net of impairments (2) | 94 | 92 | ||||||||||||||||||||
Asbestos settlement | -1 | -2 | ||||||||||||||||||||
Purchased collars and average forward contracts | -76 | 2 | ||||||||||||||||||||
Other corporate items (3) | 57 | -2 | ||||||||||||||||||||
Net income | $ | 407 | $ | 301 |
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 | 2,300 | 1,900 |
Additional Amount Issued at Closing [Member] | ||
Supplemental Cash Flow Information (Details) [Line Items] | ||
Stock Issued During Period, Shares, New Issues | 400 | |
Stock Issued During Period, Value, New Issues (in Dollars) | 400 |
Note_1_Significant_Accounting_2
Note 1 - Significant Accounting Policies (Details) - Other (Expense) Income, Net (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Other (Expense) Income, Net [Abstract] | ||
Net (gain) loss attributable to noncontrolling interests | ($2) | $3 |
Other, net | -19 | 27 |
Total | ($21) | $30 |
Note_2_Commitments_Contingenci1
Note 2 - Commitments, Contingencies, and Guarantees (Details) (USD $) | 3 Months Ended | 130 Months Ended | ||||
Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2015 | Dec. 31, 2014 | Nov. 12, 2013 | Apr. 16, 2000 | |
Note 2 - Commitments, Contingencies, and Guarantees (Details) [Line Items] | ||||||
Income (Loss) from Equity Method Investments | $94,000,000 | $86,000,000 | ||||
Recorded Unconditional Purchase Obligation | 300,000,000 | 300,000,000 | 287,000,000 | |||
Number of Hazardous Waste Sites | 15 | 15 | ||||
Environmental Cleanup And Related Litigation [Member] | ||||||
Note 2 - Commitments, Contingencies, and Guarantees (Details) [Line Items] | ||||||
Accrual for Environmental Loss Contingencies | 41,000,000 | 41,000,000 | 43,000,000 | |||
Commercial Creditors [Member] | Dow Corning Corporation [Member] | ||||||
Note 2 - Commitments, Contingencies, and Guarantees (Details) [Line Items] | ||||||
Income (Loss) from Equity Method Investments | 100,000,000 | |||||
Commercial Creditors [Member] | Dow Corning Corporation [Member] | ||||||
Note 2 - Commitments, Contingencies, and Guarantees (Details) [Line Items] | ||||||
Loss Contingency, Range of Possible Loss, Minimum | 100,000,000 | 100,000,000 | ||||
Loss Contingency, Range of Possible Loss, Maximum | 328,000,000 | 328,000,000 | ||||
Contingent Guarantees [Member] | ||||||
Note 2 - Commitments, Contingencies, and Guarantees (Details) [Line Items] | ||||||
Guarantor Obligations, Maximum Exposure, Undiscounted | 178,000,000 | 178,000,000 | 150,000,000 | |||
First Payment [Member] | Amended Pittsburgh Corning Corporation Plan [Member] | Asbestos Litigation [Member] | ||||||
Note 2 - Commitments, Contingencies, and Guarantees (Details) [Line Items] | ||||||
Loss Contingency, Required Payments Per Reorganization Plan | 70,000,000 | |||||
First Subsequent Anniversary [Member] | Amended Pittsburgh Corning Corporation Plan [Member] | Asbestos Litigation [Member] | ||||||
Note 2 - Commitments, Contingencies, and Guarantees (Details) [Line Items] | ||||||
Loss Contingency, Required Payments Per Reorganization Plan | 35,000,000 | |||||
Second Subsequent Anniversary [Member] | Amended Pittsburgh Corning Corporation Plan [Member] | Asbestos Litigation [Member] | ||||||
Note 2 - Commitments, Contingencies, and Guarantees (Details) [Line Items] | ||||||
Loss Contingency, Required Payments Per Reorganization Plan | 50,000,000 | |||||
Third Subsequent Anniversary [Member] | Amended Pittsburgh Corning Corporation Plan [Member] | Asbestos Litigation [Member] | ||||||
Note 2 - Commitments, Contingencies, and Guarantees (Details) [Line Items] | ||||||
Loss Contingency, Required Payments Per Reorganization Plan | 35,000,000 | |||||
Fourth Subsequent Anniversary [Member] | Amended Pittsburgh Corning Corporation Plan [Member] | Asbestos Litigation [Member] | ||||||
Note 2 - Commitments, Contingencies, and Guarantees (Details) [Line Items] | ||||||
Loss Contingency, Required Payments Per Reorganization Plan | 50,000,000 | |||||
Fifth Subsequent Anniversary [Member] | Amended Pittsburgh Corning Corporation Plan [Member] | Asbestos Litigation [Member] | ||||||
Note 2 - Commitments, Contingencies, and Guarantees (Details) [Line Items] | ||||||
Loss Contingency, Required Payments Per Reorganization Plan | 50,000,000 | |||||
Dow Corning Corporation [Member] | Dow Chemical Company [Member] | ||||||
Note 2 - Commitments, Contingencies, and Guarantees (Details) [Line Items] | ||||||
Equity Method Investment, Ownership Percentage | 50.00% | 50.00% | ||||
Dow Corning Corporation [Member] | ||||||
Note 2 - Commitments, Contingencies, and Guarantees (Details) [Line Items] | ||||||
Equity Method Investment, Ownership Percentage | 50.00% | 50.00% | ||||
Pittsburgh Corning Corporation (PCC) [Member] | Asbestos Litigation [Member] | ||||||
Note 2 - Commitments, Contingencies, and Guarantees (Details) [Line Items] | ||||||
Loss Contingency, Pending Claims, Number | 11,800 | |||||
Pittsburgh Corning Corporation (PCC) [Member] | PPG Industries, Inc. [Member] | ||||||
Note 2 - Commitments, Contingencies, and Guarantees (Details) [Line Items] | ||||||
Equity Method Investment, Ownership Percentage | 50.00% | 50.00% | ||||
Pittsburgh Corning Corporation (PCC) [Member] | ||||||
Note 2 - Commitments, Contingencies, and Guarantees (Details) [Line Items] | ||||||
Equity Method Investment, Ownership Percentage | 50.00% | 50.00% | ||||
Equity Method Investments | 0 | |||||
Pittsburgh Corning Europe (PCE) [Member] | ||||||
Note 2 - Commitments, Contingencies, and Guarantees (Details) [Line Items] | ||||||
Equity Method Investments, Fair Value Disclosure | 242,000,000 | 242,000,000 | 241,000,000 | |||
Equity Method Investments | 145,000,000 | 145,000,000 | 162,000,000 | |||
Amended Pittsburgh Corning Corporation Plan [Member] | Asbestos Litigation [Member] | ||||||
Note 2 - Commitments, Contingencies, and Guarantees (Details) [Line Items] | ||||||
Loss Contingency, Required Payments Per Reorganization Plan | 290,000,000 | |||||
Asbestos Litigation [Member] | ||||||
Note 2 - Commitments, Contingencies, and Guarantees (Details) [Line Items] | ||||||
Asbestos Settlement (Credit) Charge | 1,000,000 | 2,000,000 | ||||
Non-PCC Asbestos Litigation [Member] | ||||||
Note 2 - Commitments, Contingencies, and Guarantees (Details) [Line Items] | ||||||
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 | 37,300 | |||||
Insurance Recoveries | 19,000,000 | |||||
Loss Contingency Accrual, Period Increase (Decrease) | 150,000,000 | |||||
Undiscounted Projection of Claims and Related Legal Fees, Period | 20 years | |||||
Amended PCC Plan and Non-PCC Asbestos Claims [Member] | ||||||
Note 2 - Commitments, Contingencies, and Guarantees (Details) [Line Items] | ||||||
Loss Contingency, Estimate of Possible Loss | 682,000,000 | 682,000,000 | 681,000,000 | |||
Dow Corning Corporation [Member] | ||||||
Note 2 - Commitments, Contingencies, and Guarantees (Details) [Line Items] | ||||||
Payments for Legal Settlements | 1,800,000,000 | |||||
Estimated Litigation Liability | 363,000,000 | 363,000,000 | 364,000,000 | |||
Income (Loss) from Equity Method Investments | $92,000,000 | $92,000,000 |
Note_3_Debt_Details
Note 3 - Debt (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
Debt Disclosure [Abstract] | ||
Debt Instrument, Fair Value Disclosure | $3,600,000,000 | $3,600,000,000 |
Long-term Debt and Capital Lease Obligations | $3,165,000,000 | $3,227,000,000 |
Note_4_Income_Taxes_Details
Note 4 - Income Taxes (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Note 4 - Income Taxes (Details) [Line Items] | ||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 35.00% | 35.00% |
Effective Income Tax Rate Reconciliation, Tax Holiday, Percent | 0.30% | 1.20% |
Korean Withholding Tax [Member] | ||
Note 4 - Income Taxes (Details) [Line Items] | ||
Income Tax Expense (Benefit), Continuing Operations, Adjustment for Equity Investment Dividend (in Dollars) | 102 | |
Low Or No Tax Cost [Member] | ||
Note 4 - Income Taxes (Details) [Line Items] | ||
Undistributed Earnings of Foreign Subsidiaries (in Dollars) | 6 | |
National Tax Agency, Japan [Member] | ||
Note 4 - Income Taxes (Details) [Line Items] | ||
Income Tax Expense (Benefit), Continuing Operations, Adjustment of Deferred Tax (Asset) Liability (in Dollars) | 11 |
Note_4_Income_Taxes_Details_Pr
Note 4 - Income Taxes (Details) - Provision for Income Taxes (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Provision for Income Taxes [Abstract] | ||
Provision for income taxes | ($86) | ($180) |
Effective tax rate | 17.40% | 37.40% |
Note_5_Earnings_Per_Common_Sha2
Note 5 - Earnings Per Common Share (Details) - Computation of Basic and Diluted Earnings per Common Share (USD $) | 3 Months Ended | |
In Millions, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Note 5 - Earnings Per Common Share (Details) - Computation of Basic and Diluted Earnings per Common Share [Line Items] | ||
Net income attributable to Corning Incorporated (in Dollars) | $407 | $301 |
Net income available to common stockholders - basic (in Dollars) | 383 | 280 |
Net income available to common stockholders - diluted (in Dollars) | 407 | 280 |
Weighted-average common shares outstanding - basic | 1,266 | 1,359 |
Effect of dilutive securities: | ||
Weighted-average common shares outstanding - diluted | 1,394 | 1,370 |
Basic earnings per common share (in Dollars per share) | $0.30 | $0.21 |
Diluted earnings per common share (in Dollars per share) | $0.29 | $0.20 |
Antidilutive potential shares excluded from diluted earnings per common share: | ||
Anti-dilutive potential shares excluded from diluted earnings per common share | 14 | 138 |
Convertible Preferred Stock, Series A [Member] | ||
Note 5 - Earnings Per Common Share (Details) - Computation of Basic and Diluted Earnings per Common Share [Line Items] | ||
Less: Series A convertible preferred stock dividend (in Dollars) | -24 | -21 |
Plus: Series A convertible preferred stock dividend (in Dollars) | $24 | $21 |
Effect of dilutive securities: | ||
Effect of dilutive securities | 115 | |
Convertible Preferred Stock, Series A [Member] | ||
Antidilutive potential shares excluded from diluted earnings per common share: | ||
Anti-dilutive potential shares excluded from diluted earnings per common share | 97 | |
Stock Compensation Plan [Member] | ||
Antidilutive potential shares excluded from diluted earnings per common share: | ||
Anti-dilutive potential shares excluded from diluted earnings per common share | 14 | 29 |
Forward Contracts [Member] | ||
Antidilutive potential shares excluded from diluted earnings per common share: | ||
Anti-dilutive potential shares excluded from diluted earnings per common share | 12 | |
Stock Options and Other Dilutive Securities [Member] | ||
Effect of dilutive securities: | ||
Effect of dilutive securities | 13 | 11 |
Note_6_AvailableforSale_Invest2
Note 6 - Available-for-Sale Investments (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | |
Available For Sale Investments [Abstract] | ||||
Available-for-sale Securities, Debt Maturities, after Ten Years, Fair Value | $37 | [1] | ||
Marketable Securities, Realized Loss, Other than Temporary Impairments, Amount | 4 | 4 | ||
Proceeds from Sale of Short-term Investments | $282 | $338 | ||
[1] | Includes $37 million of asset-based securities that mature over time and are being reported at their final maturity dates. |
Note_6_AvailableforSale_Invest3
Note 6 - Available-for-Sale Investments (Details) - Summary of Fair Value of Available-for-Sale Investments (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
US Government Agencies Debt Securities [Member] | ||
Note 6 - Available-for-Sale Investments (Details) - Summary of Fair Value of Available-for-Sale Investments [Line Items] | ||
Amortized cost | $761 | $759 |
Fair value | 763 | 759 |
Total Short-Term Investments [Member] | ||
Note 6 - Available-for-Sale Investments (Details) - Summary of Fair Value of Available-for-Sale Investments [Line Items] | ||
Amortized cost | 761 | 759 |
Fair value | 763 | 759 |
Asset-backed Securities [Member] | ||
Note 6 - Available-for-Sale Investments (Details) - Summary of Fair Value of Available-for-Sale Investments [Line Items] | ||
Amortized cost | 41 | 42 |
Fair value | 37 | 38 |
Total Long-Term Investments [Member] | ||
Note 6 - Available-for-Sale Investments (Details) - Summary of Fair Value of Available-for-Sale Investments [Line Items] | ||
Amortized cost | 41 | 42 |
Fair value | $37 | $38 |
Note_6_AvailableforSale_Invest4
Note 6 - Available-for-Sale Investments (Details) - Summary of Maturities of Available-for-Sale Securities (USD $) | Mar. 31, 2015 | |
In Millions, unless otherwise specified | ||
Summary of Maturities of Available-for-Sale Securities [Abstract] | ||
Less than one year | $535 | |
Due in 1-5 years | 228 | |
Due after 10 years (1) | 37 | [1] |
Total | $800 | |
[1] | Includes $37 million of asset-based securities that mature over time and are being reported at their final maturity dates. |
Note_6_AvailableforSale_Invest5
Note 6 - Available-for-Sale Investments (Details) - Fair Value and Gross Unrealized Losses of Investments by Length of Time in Continuous Unrealized Loss Position (USD $) | 3 Months Ended | 12 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 | ||
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 | 21 | ||
12 months or Greater, Fair Value | $37 | $37 | ||
12 months or Greater, Unrealized Losses | -4 | [1] | -4 | [1] |
Total, Fair Value | 37 | 37 | ||
Total, Unrealized Losses | ($4) | ($4) | ||
[1] | Unrealized losses in securities less than 12 months were not significant. |
Note_7_Inventories_Net_of_Inve2
Note 7 - Inventories, Net of Inventory Reserves (Details) - Inventories, Net (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Inventories, Net [Abstract] | ||
Finished goods | $527 | $486 |
Work in process | 257 | 255 |
Raw materials and accessories | 268 | 302 |
Supplies and packing materials | 279 | 279 |
Total inventories, net of inventory reserves | $1,331 | $1,322 |
Note_8_Investments_Details
Note 8 - Investments (Details) (Dow Corning Corporation [Member], USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Dow Corning Corporation [Member] | ||
Note 8 - Investments (Details) [Line Items] | ||
Research and Development Expense | $62 | $67 |
Gain (Loss) on Contract Termination | 178 | 32 |
Equity Method Investment, Summarized Financial Information, Derivative, Loss on Derivative | 27 | |
Equity Method Investment, Summarized Financial Information, Derivative, Gain on Derivative | $99 |
Note_8_Investments_Details_Res
Note 8 - Investments (Details) - Results of Operations (USD $) | 3 Months Ended | |||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | ||
Statement of Operations: | ||||
Corning’s equity in earnings of Dow Corning | $94 | $86 | ||
Dow Corning Corporation [Member] | ||||
Statement of Operations: | ||||
Net sales | 1,364 | 1,524 | ||
Gross profit (1) | 358 | [1] | 483 | [1] |
Net income attributable to Dow Corning | 185 | 191 | ||
Corning’s equity in earnings of Dow Corning | $92 | $92 | ||
[1] | Gross profit for the three months ended March 31, 2015 includes research and development costs of $62 million (2014: $67 million). |
Note_9_Acquisitions_Details
Note 9 - Acquisitions (Details) (USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2015 |
Note 9 - Acquisitions (Details) [Line Items] | |
Number of Businesses Acquired | 4 |
Selling, General and Administrative Expenses [Member] | |
Note 9 - Acquisitions (Details) [Line Items] | |
Business Combination, Acquisition Related Costs | 9 |
Patents, Trademarks, Trade Names, Customer Lists and Other [Member] | |
Note 9 - Acquisitions (Details) [Line Items] | |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 10 years |
IBwave Solutions and Fiberoptics [Member] | |
Note 9 - Acquisitions (Details) [Line Items] | |
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High | 28 |
Business Combination, Contingent Consideration, Liability | 13 |
Note_9_Acquisitions_Details_Re
Note 9 - Acquisitions (Details) - Recognized Amounts of Identified Assets Acquired and Liabilities Assumed (USD $) | 3 Months Ended | |||
In Millions, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 | Dec. 30, 2014 | |
Note 9 - Acquisitions (Details) - Recognized Amounts of Identified Assets Acquired and Liabilities Assumed [Line Items] | ||||
Goodwill (1) | $1,343 | $1,150 | $1,150 | |
Optical Communications [Member] | Four Acquisitions [Member] | ||||
Note 9 - Acquisitions (Details) - Recognized Amounts of Identified Assets Acquired and Liabilities Assumed [Line Items] | ||||
Goodwill (1) | 220 | [1] | ||
Optical Communications [Member] | ||||
Note 9 - Acquisitions (Details) - Recognized Amounts of Identified Assets Acquired and Liabilities Assumed [Line Items] | ||||
Goodwill (1) | 456 | 238 | ||
Four Acquisitions [Member] | ||||
Note 9 - Acquisitions (Details) - Recognized Amounts of Identified Assets Acquired and Liabilities Assumed [Line Items] | ||||
Cash and cash equivalents | 2 | |||
Trade receivables | 49 | |||
Inventory | 28 | |||
Property, plant and equipment | 37 | |||
Other intangible assets | 233 | |||
Other current and non-current assets | 32 | |||
Current and non-current liabilities | -54 | |||
Total identified net assets | 327 | |||
Purchase consideration | ($547) | |||
[1] | The goodwill was allocated to the Optical Communications segment. |
Note_10_Property_Plant_and_Equ2
Note 10 - Property, Plant and Equipment, Net of Accumulated Depreciation (Details) (USD $) | 3 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | |
Property, Plant and Equipment [Abstract] | |||
Interest Costs Capitalized | $10,000,000 | $10,000,000 | |
Precious Metals | 3,100,000,000 | 3,100,000,000 | |
Depletion | $7,000,000 | $8,000,000 |
Note_10_Property_Plant_and_Equ3
Note 10 - Property, Plant and Equipment, Net of Accumulated Depreciation (Details) - Property, Net (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $21,299 | $21,098 |
Accumulated depreciation | -8,591 | -8,332 |
Total | 12,708 | 12,766 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 452 | 458 |
Building [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 5,472 | 5,470 |
Machinery and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 13,956 | 13,848 |
Construction in Progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $1,419 | $1,322 |
Note_11_Goodwill_and_Other_Int2
Note 11 - Goodwill and Other Intangible Assets (Details) (USD $) | 3 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | |
Note 11 - Goodwill and Other Intangible Assets (Details) [Line Items] | |||
Goodwill, Gross | $7,800,000,000 | $7,600,000,000 | |
Finite-lived Intangible Assets Acquired | 233,000,000 | ||
Amortization of Intangible Assets | 12,000,000 | 8,000,000 | |
Finite-Lived Intangible Assets, Translation Adjustments | 16,000,000 | ||
Finite-Lived Intangible Assets, Amortization Expense, Remainder of Fiscal Year | 57,000,000 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 55,000,000 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 55,000,000 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 55,000,000 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Five | 55,000,000 | ||
Finite-Lived Intangible Assets, Amortization Expense, after Year Five | 50,000,000 | ||
Optical Communications [Member] | |||
Note 11 - Goodwill and Other Intangible Assets (Details) [Line Items] | |||
Goodwill, Impaired, Accumulated Impairment Loss | $6,500,000,000 | $6,500,000,000 |
Note_11_Goodwill_and_Other_Int3
Note 11 - Goodwill and Other Intangible Assets (Details) - Carrying Amount of Goodwill by Segment (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2015 | Dec. 30, 2014 | |
Goodwill [Line Items] | |||
Balance | $1,150 | $1,150 | |
Acquired goodwill (1) | 220 | [1] | |
Foreign currency translation adjustment | -27 | ||
Balance | 1,343 | 1,150 | |
Optical Communications [Member] | |||
Goodwill [Line Items] | |||
Balance | 238 | ||
Acquired goodwill (1) | 220 | [1] | |
Foreign currency translation adjustment | -2 | ||
Balance | 456 | 238 | |
Display Technologies [Member] | |||
Goodwill [Line Items] | |||
Balance | 134 | ||
Foreign currency translation adjustment | -1 | ||
Balance | 133 | 134 | |
Specialty Materials [Member] | |||
Goodwill [Line Items] | |||
Balance | 198 | ||
Foreign currency translation adjustment | -5 | ||
Balance | 193 | 198 | |
Life Sciences [Member] | |||
Goodwill [Line Items] | |||
Balance | 580 | ||
Foreign currency translation adjustment | -19 | ||
Balance | $561 | $580 | |
[1] | The Company completed several acquisitions in the Optical Communications segment during the first quarter of 2015. Refer to Note 9 (Acquisitions) to the Consolidated Financial Statements for additional information on these acquisitions. |
Note_11_Goodwill_and_Other_Int4
Note 11 - Goodwill and Other Intangible Assets (Details) - Other Intangible Assets (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Finite-Lived Intangible Assets [Line Items] | ||
Other intangible assets, gross | $928 | $713 |
Other intangible assets, accumulated amortization | 226 | 216 |
Other intangible assets, net | 702 | 497 |
Patents, Trademarks, and Trade Names [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Other intangible assets, gross | 353 | 302 |
Other intangible assets, accumulated amortization | 152 | 149 |
Other intangible assets, net | 201 | 153 |
Customer Lists and Other [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Other intangible assets, gross | 575 | 411 |
Other intangible assets, accumulated amortization | 74 | 67 |
Other intangible assets, net | $501 | $344 |
Note_12_Employee_Retirement_Pl2
Note 12 - Employee Retirement Plans (Details) - Summary of Net Periodic Benefit Cost (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Pension Plan [Member] | ||
Note 12 - Employee Retirement Plans (Details) - Summary of Net Periodic Benefit Cost [Line Items] | ||
Service cost | $23 | $16 |
Interest cost | 36 | 38 |
Expected return on plan assets | -45 | -43 |
Amortization of prior service cost (credit) | 2 | 2 |
Total pension and postretirement benefit expense | 16 | 13 |
Other Postretirement Benefit Plan [Member] | ||
Note 12 - Employee Retirement Plans (Details) - Summary of Net Periodic Benefit Cost [Line Items] | ||
Service cost | 3 | 3 |
Interest cost | 8 | 9 |
Amortization of net loss | 1 | |
Amortization of prior service cost (credit) | -1 | -1 |
Total pension and postretirement benefit expense | $11 | $11 |
Note_13_Hedging_Activities_Det
Note 13 - Hedging Activities (Details) (Not Designated as Hedging Instrument [Member], USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Billions, unless otherwise specified | ||
Gross Notional Value [Member] | Translated Earnings Contracts [Member] | ||
Note 13 - Hedging Activities (Details) [Line Items] | ||
Derivative, Notional Amount | $14.70 | $12.10 |
Gross Notional Value [Member] | Collar Options [Member] | ||
Note 13 - Hedging Activities (Details) [Line Items] | ||
Derivative, Notional Amount | 5.8 | 2.3 |
Gross Notional Value [Member] | Foreign Exchange Forward [Member] | ||
Note 13 - Hedging Activities (Details) [Line Items] | ||
Derivative, Notional Amount | 8.9 | 9.8 |
Net Notional Value [Member] | Collar Options [Member] | ||
Note 13 - Hedging Activities (Details) [Line Items] | ||
Derivative, Notional Amount | $3 | $1.20 |
Note_13_Hedging_Activities_Det1
Note 13 - Hedging Activities (Details) - Summary of Notional Amounts and Respective Fair Values of Derivative Financial Instruments (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Derivatives designated as hedging instruments | ||
Notional amount | $17,270 | $15,198 |
Asset derivatives, fair value | 1,485 | 1,535 |
Liability derivatives, fair value | -108 | -59 |
Designated as Hedging Instrument [Member] | Foreign Exchange Contract [Member] | ||
Derivatives designated as hedging instruments | ||
Notional amount | 742 | 487 |
Asset derivatives, fair value | 34 | 22 |
Liability derivatives, fair value | -6 | -6 |
Designated as Hedging Instrument [Member] | Interest Rate Swap [Member] | ||
Derivatives designated as hedging instruments | ||
Notional amount | 1,300 | 1,300 |
Asset derivatives, fair value | 1 | |
Liability derivatives, fair value | -10 | -15 |
Designated as Hedging Instrument [Member] | ||
Derivatives designated as hedging instruments | ||
Asset derivatives, fair value | 8 | |
Not Designated as Hedging Instrument [Member] | Foreign Exchange Contract [Member] | ||
Derivatives designated as hedging instruments | ||
Notional amount | 564 | 1,285 |
Asset derivatives, fair value | 14 | 17 |
Liability derivatives, fair value | -5 | -5 |
Not Designated as Hedging Instrument [Member] | Translated Earnings Contracts [Member] | ||
Derivatives designated as hedging instruments | ||
Notional amount | 14,664 | 12,126 |
Asset derivatives, fair value | 618 | 649 |
Liability derivatives, fair value | -32 | -33 |
Not Designated as Hedging Instrument [Member] | ||
Derivatives designated as hedging instruments | ||
Asset derivatives, fair value | 811 | 846 |
Liability derivatives, fair value | ($55) |
Note_13_Hedging_Activities_Det2
Note 13 - Hedging Activities (Details) - Effect on Consolidated Financial Statements (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | |
Sales [Member] | Interest Rate Hedges [Member] | |||
Note 13 - Hedging Activities (Details) - Effect on Consolidated Financial Statements [Line Items] | |||
Gain/(loss) recognized in other comprehensive income (oci) | ($13) | ||
Gain reclassified from accumulated OCI into income (effective) | 5 | [1] | |
Cost of Sales [Member] | Interest Rate Hedges [Member] | |||
Note 13 - Hedging Activities (Details) - Effect on Consolidated Financial Statements [Line Items] | |||
Gain reclassified from accumulated OCI into income (effective) | 2 | [1] | |
Cash Flow Hedging [Member] | |||
Note 13 - Hedging Activities (Details) - Effect on Consolidated Financial Statements [Line Items] | |||
Gain/(loss) recognized in other comprehensive income (oci) | 14 | -7 | |
Gain reclassified from accumulated OCI into income (effective) | 7 | [1] | |
Foreign Exchange Contract [Member] | |||
Note 13 - Hedging Activities (Details) - Effect on Consolidated Financial Statements [Line Items] | |||
Gain/(loss) recognized in other comprehensive income (oci) | $27 | ($7) | |
[1] | The amount of hedge ineffectiveness at March 31, 2015 and 2014 was insignificant. |
Note_13_Hedging_Activities_Det3
Note 13 - Hedging Activities (Details) - Effect on Consolidated Financial Statements (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Note 13 - Hedging Activities (Details) - Effect on Consolidated Financial Statements [Line Items] | ||
Gain (loss) recognized in income | $29 | $2 |
Foreign Currency Transaction and Hedge Gain (Loss), Net [Member] | Foreign Exchange Contracts, Balance Sheet [Member] | ||
Note 13 - Hedging Activities (Details) - Effect on Consolidated Financial Statements [Line Items] | ||
Gain (loss) recognized in income | 11 | -12 |
Foreign Currency Transaction and Hedge Gain (Loss), Net [Member] | Foreign Exchange Contracts, Loans [Member] | ||
Note 13 - Hedging Activities (Details) - Effect on Consolidated Financial Statements [Line Items] | ||
Gain (loss) recognized in income | 2 | 4 |
Foreign Currency Transaction and Hedge Gain (Loss), Net [Member] | Translated Earnings Contracts [Member] | ||
Note 13 - Hedging Activities (Details) - Effect on Consolidated Financial Statements [Line Items] | ||
Gain (loss) recognized in income | 29 | 2 |
Undesignated [Member] | ||
Note 13 - Hedging Activities (Details) - Effect on Consolidated Financial Statements [Line Items] | ||
Gain (loss) recognized in income | $42 | ($6) |
Note_14_Fair_Value_Measurement2
Note 14 - Fair Value Measurements (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Samsung Corning Precision Materials Co., Ltd. [Member] | ||
Note 14 - Fair Value Measurements (Details) [Line Items] | ||
Business Combination, Contingent Consideration, Asset | $445 | $445 |
IBwave Solutions and Fiberoptics [Member] | ||
Note 14 - Fair Value Measurements (Details) [Line Items] | ||
Business Combination, Contingent Consideration, Liability | $13 |
Note_14_Fair_Value_Measurement3
Note 14 - Fair Value Measurements (Details) - Major Categories of Financial Assets and Liabilities Measured on a Recurring Basis (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | ||
In Millions, unless otherwise specified | ||||
Non-current assets: | ||||
Other assets | $1,685 | $1,722 | ||
Current liabilities: | ||||
Other accrued liabilities (1)(3) | 917 | 1,291 | ||
Non-current liabilities: | ||||
Other liabilities (1)(3) | 2,081 | 2,046 | ||
Current Assets [Member] | Fair Value, Inputs, Level 1 [Member] | ||||
Current assets: | ||||
Short-term investments | 763 | 759 | ||
Current Assets [Member] | Fair Value, Inputs, Level 2 [Member] | ||||
Current assets: | ||||
Other current assets | 666 | [1] | 687 | [1] |
Current Assets [Member] | ||||
Current assets: | ||||
Short-term investments | 763 | 759 | ||
Other current assets | 666 | [1] | 687 | [1] |
Non Current Assets [Member] | Fair Value, Inputs, Level 2 [Member] | ||||
Non-current assets: | ||||
Other assets | 856 | [1],[2] | 885 | [1],[2] |
Non Current Assets [Member] | Fair Value, Inputs, Level 3 [Member] | ||||
Non-current assets: | ||||
Other assets | 445 | [1],[2] | 445 | [1],[2] |
Non Current Assets [Member] | ||||
Non-current assets: | ||||
Other assets | 1,301 | [1],[2] | 1,330 | [1],[2] |
Current Liabilities [Member] | Fair Value, Inputs, Level 2 [Member] | ||||
Current liabilities: | ||||
Other liabilities | 44 | [1] | ||
Current liabilities: | ||||
Other accrued liabilities (1)(3) | 42 | [1],[3] | ||
Current Liabilities [Member] | Fair Value, Inputs, Level 3 [Member] | ||||
Current liabilities: | ||||
Other accrued liabilities (1)(3) | 3 | [1],[3] | ||
Current Liabilities [Member] | ||||
Current liabilities: | ||||
Other liabilities | 44 | [1] | ||
Current liabilities: | ||||
Other accrued liabilities (1)(3) | 45 | [1],[3] | ||
Non Current Liabilities [Member] | Fair Value, Inputs, Level 2 [Member] | ||||
Current liabilities: | ||||
Other liabilities | 15 | [1] | ||
Non-current liabilities: | ||||
Other liabilities (1)(3) | 65 | [1],[3] | ||
Non Current Liabilities [Member] | Fair Value, Inputs, Level 3 [Member] | ||||
Non-current liabilities: | ||||
Other liabilities (1)(3) | 10 | [1],[3] | ||
Non Current Liabilities [Member] | ||||
Current liabilities: | ||||
Other liabilities | 15 | [1] | ||
Non-current liabilities: | ||||
Other liabilities (1)(3) | $75 | [1],[3] | ||
[1] | Derivative assets and liabilities include foreign exchange forward and purchased collar contracts, and interest rate swaps which are measured using observable quoted prices for similar assets and liabilities. | |||
[2] | Other assets include asset-backed securities which are measured using observable quoted prices for similar assets and contingent consideration assets which are measured by applying an option pricing model using projected future revenue. | |||
[3] | Other accrued liabilities and other liabilities include contingent consideration payables which are measured by applying an option pricing model using projected future revenues. |
Note_15_Shareholders_Equity_De
Note 15 - Shareholders' Equity (Details) (USD $) | 3 Months Ended | 0 Months Ended | 3 Months Ended | ||
Mar. 31, 2014 | Jan. 15, 2014 | Mar. 31, 2015 | Dec. 31, 2014 | Dec. 03, 2014 | |
Note 15 - Shareholders' Equity (Details) [Line Items] | |||||
Preferred Stock, Par or Stated Value Per Share (in Dollars per share) | $100 | $100 | |||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Reclassification Adjustment from AOCI, Realized upon Sale or Liquidation, before Tax | $136,000,000 | ||||
Convertible Preferred Stock, Series A [Member] | Samsung Corning Precision Materials Co., Ltd. [Member] | |||||
Note 15 - Shareholders' Equity (Details) [Line Items] | |||||
Stock Issued During Period, Shares, Acquisitions (in Shares) | 1,900 | 2,300 | |||
Share Price (in Dollars per share) | $1,000,000 | ||||
Stock Issued During Period, Value, Acquisitions | 2,300,000,000 | ||||
Convertible Preferred Stock, Series A [Member] | |||||
Note 15 - Shareholders' Equity (Details) [Line Items] | |||||
Preferred Stock, Par or Stated Value Per Share (in Dollars per share) | $100 | ||||
Common Stock [Member] | |||||
Note 15 - Shareholders' Equity (Details) [Line Items] | |||||
Convertible Preferred Stock, Shares Issued upon Conversion (in Shares) | 50,000 | ||||
Dec. 3, 2014 [Member] | |||||
Note 15 - Shareholders' Equity (Details) [Line Items] | |||||
Treasury Stock, Shares, Acquired (in Shares) | 21,100,000 | ||||
Treasury Stock, Value, Acquired, Cost Method | 502,000,000 | ||||
Stock Repurchase Program, Authorized Amount | $1,500,000,000 |
Note_15_Shareholders_Equity_De1
Note 15 - Shareholders' Equity (Details) - Accumulated Other Comprehensive Income (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
Note 15 - Shareholders' Equity (Details) - Accumulated Other Comprehensive Income [Line Items] | |||
Beginning balance | ($1,307) | ||
Ending balance | -1,556 | -1,307 | |
Accumulated Translation Adjustment [Member] | |||
Note 15 - Shareholders' Equity (Details) - Accumulated Other Comprehensive Income [Line Items] | |||
Beginning balance | -581 | 492 | |
Other comprehensive (loss) income | -174 | 25 | |
Equity method affiliates | -82 | -157 | |
Net current-period other comprehensive (loss) income | -256 | -132 | |
Ending balance | ($837) | $360 |
Note_16_Sharebased_Compensatio2
Note 16 - Share-based Compensation (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Note 16 - Share-based Compensation (Details) [Line Items] | ||
Share-based Compensation | $10 | $15 |
Maximum Term for Non-Qualified and Incentive Stock Options | 10 years | |
Proceeds from Stock Options Exercised | 89 | 50 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value | 40 | 32 |
Years of Historical Volatility Included in Most Recent Volatility | 15 years | |
Employee Stock Option [Member] | ||
Note 16 - Share-based Compensation (Details) [Line Items] | ||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | 8 | |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 1 year 328 days | |
Allocated Share-based Compensation Expense | 4 | 6 |
Proceeds from Stock Options Exercised | 89 | 50 |
Restricted Stock [Member] | Minimum [Member] | ||
Note 16 - 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 16 - 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 16 - Share-based Compensation (Details) [Line Items] | ||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | 41 | |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 1 year 255 days | |
Allocated Share-based Compensation Expense | $6 | $9 |
Minimum [Member] | ||
Note 16 - 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 | 7 years 73 days |
Maximum [Member] | ||
Note 16 - Share-based Compensation (Details) [Line Items] | ||
Stock Options Exercisable Period from Date of Grant | 5 years | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | 7 years 73 days | 7 years 73 days |
Note_16_Sharebased_Compensatio3
Note 16 - Share-based Compensation (Details) - Summary of Information Concerning Stock Options Outstanding Including the Related Transactions under the Stock Option Plans (USD $) | 3 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2015 |
Summary of Information Concerning Stock Options Outstanding Including the Related Transactions under the Stock Option Plans [Abstract] | |
Options Outstanding as of December 31, 2014 | 48,724 |
Options Outstanding as of December 31, 2014 | $18.94 |
Granted | 501 |
Granted | $22.70 |
Exercised | -5,351 |
Exercised | $16.66 |
Forfeited and Expired | -25 |
Forfeited and Expired | $20.47 |
Options Outstanding as of March 31, 2015 | 43,849 |
Options Outstanding as of March 31, 2015 | $19.26 |
Options Outstanding as of March 31, 2015 | 4 years 156 days |
Options Outstanding as of March 31, 2015 | $188,767 |
Options Expected to Vest as of March 31, 2015 | 43,782 |
Options Expected to Vest as of March 31, 2015 | $19.26 |
Options Expected to Vest as of March 31, 2015 | 4 years 153 days |
Options Expected to Vest as of March 31, 2015 | 188,505 |
Options Exercisable as of March 31, 2015 | 37,293 |
Options Exercisable as of March 31, 2015 | $19.73 |
Options Exercisable as of March 31, 2015 | 3 years 262 days |
Options Exercisable as of March 31, 2015 | $148,763 |
Note_16_Sharebased_Compensatio4
Note 16 - Share-based Compensation (Details) - Inputs Used for Valuation of Option Grants under Stock Option Plans | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Minimum [Member] | ||
Note 16 - Share-based Compensation (Details) - Inputs Used for Valuation of Option Grants under Stock Option Plans [Line Items] | ||
Expected volatility | 44.90% | 46.20% |
Weighted-average volatility | 44.90% | 46.20% |
Expected dividends | 1.92% | 2.09% |
Risk-free rate | 1.90% | 2.20% |
Average risk-free rate | 1.90% | 2.20% |
Expected term (in years) | 7 years 73 days | 7 years 73 days |
Pre-vesting departure rate | 0.60% | 0.50% |
Maximum [Member] | ||
Note 16 - Share-based Compensation (Details) - Inputs Used for Valuation of Option Grants under Stock Option Plans [Line Items] | ||
Expected volatility | 44.90% | 46.20% |
Weighted-average volatility | 44.90% | 46.20% |
Expected dividends | 1.92% | 2.09% |
Risk-free rate | 1.90% | 2.20% |
Average risk-free rate | 1.90% | 2.20% |
Expected term (in years) | 7 years 73 days | 7 years 73 days |
Pre-vesting departure rate | 0.60% | 0.50% |
Note_16_Sharebased_Compensatio5
Note 16 - Share-based Compensation (Details) - Summary of the Status of Non-Vested Time-Based Restricted Stock and Restricted Stock Units (Time-Based Restricted Stock and Restricted Stock Units [Member], USD $) | 3 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2015 |
Time-Based Restricted Stock and Restricted Stock Units [Member] | |
Note 16 - 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, 2014 | 5,737 |
Non-vested shares and share units at December 31, 2014 | $15.43 |
Granted | 1,138 |
Granted | $22.88 |
Vested | -1,454 |
Vested | $13.48 |
Non-vested shares and share units at March 31, 2015 | 5,421 |
Non-vested shares and share units at March 31, 2015 | $17.52 |
Note_17_Significant_Customers_
Note 17 - Significant Customers (Details) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Significant Customers [Abstract] | ||
Number of Significant Customers | 1 | 1 |
Note_18_Reportable_Segments_De
Note 18 - Reportable Segments (Details) | 3 Months Ended |
Mar. 31, 2015 | |
Display Technologies [Member] | |
Note 18 - Reportable Segments (Details) [Line Items] | |
Number of Customers Individually Accounting for 10% or More of Each Segment's Sales | 3 |
Percent of Total Segment Sales | 62.00% |
Optical Communications [Member] | |
Note 18 - Reportable Segments (Details) [Line Items] | |
Number of Customers Individually Accounting for 10% or More of Each Segment's Sales | 1 |
Percent of Total Segment Sales | 10.00% |
Environmental Technologies [Member] | |
Note 18 - Reportable Segments (Details) [Line Items] | |
Number of Customers Individually Accounting for 10% or More of Each Segment's Sales | 3 |
Percent of Total Segment Sales | 86.00% |
Specialty Materials [Member] | |
Note 18 - Reportable Segments (Details) [Line Items] | |
Number of Customers Individually Accounting for 10% or More of Each Segment's Sales | 3 |
Percent of Total Segment Sales | 60.00% |
Life Sciences [Member] | |
Note 18 - Reportable Segments (Details) [Line Items] | |
Number of Customers Individually Accounting for 10% or More of Each Segment's Sales | 2 |
Percent of Total Segment Sales | 45.00% |
Minimum [Member] | |
Note 18 - Reportable Segments (Details) [Line Items] | |
Number of Material Formulations | 150 |
Note_18_Reportable_Segments_De1
Note 18 - Reportable Segments (Details) - Reportable Segments (USD $) | 3 Months Ended | |||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | ||
Segment Reporting Information [Line Items] | ||||
Net sales | $2,265 | $2,289 | ||
Restructuring, impairment and other charges | 17 | |||
Restructuring, impairment and other charges | -17 | |||
Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 2,265 | 2,289 | ||
Depreciation | 273 | [1] | 286 | [1] |
Amortization of purchased intangibles | 11 | 8 | ||
Research, development and engineering expenses | 161 | [2] | 169 | [2] |
Restructuring, impairment and other charges | 1 | 17 | ||
Restructuring, impairment and other charges | -1 | -17 | ||
Equity in earnings of affiliated companies | -6 | |||
Income tax (provision) benefit | -190 | -246 | ||
Net income (loss) | 405 | [3] | 287 | [3] |
Display Technologies [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 808 | 929 | ||
Depreciation | 156 | [1] | 173 | [1] |
Research, development and engineering expenses | 24 | [2] | 45 | [2] |
Restructuring, impairment and other charges | 5 | |||
Restructuring, impairment and other charges | -5 | |||
Equity in earnings of affiliated companies | -2 | -9 | ||
Income tax (provision) benefit | -132 | -198 | ||
Net income (loss) | 294 | [3] | 209 | [3] |
Optical Communications [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 697 | 593 | ||
Depreciation | 38 | [1] | 36 | [1] |
Amortization of purchased intangibles | 6 | 2 | ||
Research, development and engineering expenses | 33 | [2] | 37 | [2] |
Restructuring, impairment and other charges | 1 | 12 | ||
Restructuring, impairment and other charges | -1 | -12 | ||
Income tax (provision) benefit | -29 | -19 | ||
Net income (loss) | 57 | [3] | 27 | [3] |
Environmental Technologies [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 282 | 275 | ||
Depreciation | 29 | [1] | 30 | [1] |
Research, development and engineering expenses | 23 | [2] | 21 | [2] |
Equity in earnings of affiliated companies | 1 | |||
Income tax (provision) benefit | -23 | -21 | ||
Net income (loss) | 48 | [3] | 43 | [3] |
Specialty Materials [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 272 | 261 | ||
Depreciation | 26 | [1] | 27 | [1] |
Research, development and engineering expenses | 31 | [2] | 33 | [2] |
Income tax (provision) benefit | -21 | -16 | ||
Net income (loss) | 38 | [3] | 31 | [3] |
Life Sciences [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 197 | 210 | ||
Depreciation | 15 | [1] | 15 | [1] |
Amortization of purchased intangibles | 5 | 6 | ||
Research, development and engineering expenses | 5 | [2] | 5 | [2] |
Income tax (provision) benefit | -8 | -8 | ||
Net income (loss) | 16 | [3] | 17 | [3] |
All Other [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 9 | 21 | ||
Depreciation | 9 | [1] | 5 | [1] |
Research, development and engineering expenses | 45 | [2] | 28 | [2] |
Equity in earnings of affiliated companies | 2 | 2 | ||
Income tax (provision) benefit | 23 | 16 | ||
Net income (loss) | ($48) | [3] | ($40) | [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_18_Reportable_Segments_De2
Note 18 - Reportable Segments (Details) - Reconciliation of Reportable Segment Net Income (Loss) to Consolidated Net Income (USD $) | 3 Months Ended | |||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Net Income | $407 | $301 | ||
Unallocated amounts: | ||||
Net financing costs (1) | -24 | [1] | -29 | [1] |
Stock-based compensation expense | -10 | -15 | ||
Exploratory research | -26 | -27 | ||
Corporate contributions | -12 | -5 | ||
Equity in earnings of affiliated companies, net of impairments (2) | 94 | [2] | 92 | [2] |
Asbestos settlement | -1 | -2 | ||
Purchased collars and average forward contracts | -76 | 2 | ||
Other corporate items (3) | 57 | [3] | -2 | [3] |
Reportable Segments [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Net Income | 453 | 327 | ||
Non Reportable Segments [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Net Income | ($48) | ($40) | ||
[1] | Net financing costs include interest income, interest expense, and interest costs and investment gains associated with benefit plans. | |||
[2] | Primarily represents the equity earnings of Dow Corning. | |||
[3] | Other corporate items include the tax impact of the unallocated amounts, excluding purchased collars and average rate forward contracts. |