Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2015 | Oct. 16, 2015 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | CORNING INC /NY | |
Trading Symbol | glw | |
Document Type | 10-Q | |
Current Fiscal Year End Date | --12-31 | |
Entity Common Stock, Shares Outstanding | 1,182,984,475 | |
Amendment Flag | false | |
Entity Central Index Key | 24,741 | |
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 | Sep. 30, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q3 |
Consolidated Statements of Inco
Consolidated Statements of Income (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | ||
Net sales | $ 2,272 | $ 2,540 | $ 6,880 | $ 7,311 | |
Cost of sales | 1,380 | 1,451 | 4,084 | 4,255 | |
Gross margin | 892 | 1,089 | 2,796 | 3,056 | |
Operating expenses: | |||||
Selling, general and administrative expenses | 307 | 261 | 960 | 980 | |
Research, development and engineering expenses | 181 | 199 | 561 | 605 | |
Amortization of purchased intangibles | 12 | 9 | 40 | 25 | |
Restructuring, impairment and other charges | 51 | ||||
Operating income | 392 | 620 | 1,235 | 1,395 | |
Equity in earnings of affiliated companies | 39 | 95 | 195 | 243 | |
Interest income | 6 | 5 | 16 | 21 | |
Interest expense | (38) | (31) | (101) | (91) | |
Transaction-related gain, net | 74 | ||||
Foreign currency hedge (loss) gain, net | (154) | 765 | 52 | 622 | |
Other expense, net | (27) | (45) | (80) | (33) | |
Income before income taxes | 218 | 1,409 | 1,317 | 2,231 | |
Provision for income taxes (Note 4) | (6) | (395) | (202) | (747) | |
Net income attributable to Corning Incorporated | $ 212 | $ 1,014 | $ 1,115 | $ 1,484 | |
Earnings per common share attributable to Corning Incorporated: | |||||
Basic (Note 5) (in Dollars per share) | $ 0.16 | $ 0.77 | $ 0.84 | $ 1.08 | |
Diluted (Note 5) (in Dollars per share) | 0.15 | 0.72 | 0.82 | 1.03 | |
Dividends declared per common share (1) (in Dollars per share) | [1] | $ 0.12 | $ 0.10 | $ 0.24 | $ 0.30 |
[1] | The first quarter 2015 dividend was declared on December 3, 2014. |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Net income attributable to Corning Incorporated | $ 212 | $ 1,014 | $ 1,115 | $ 1,484 |
Foreign currency translation adjustments and other | (181) | (676) | (477) | (539) |
Net unrealized (losses) gains on investments | (3) | 1 | 1 | |
Unamortized gains and prior service credits for postretirement benefit plans | 6 | 12 | 3 | |
Net unrealized (losses) gains on designated hedges | (37) | 5 | (32) | 2 |
Other comprehensive loss, net of tax (Note 14) | (212) | (674) | (496) | (533) |
Comprehensive income attributable to Corning Incorporated | $ 0 | $ 340 | $ 619 | $ 951 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 4,440 | $ 5,309 |
Short-term investments, at fair value (Note 6) | 573 | 759 |
Total cash, cash equivalents and short-term investments | 5,013 | 6,068 |
Trade accounts receivable, net of doubtful accounts and allowances - $48 and $47 | 1,479 | 1,501 |
Inventories, net of inventory reserves - $130 and $127 (Note 7) | 1,374 | 1,322 |
Deferred income taxes (Note 4) | 315 | 248 |
Other current assets | 1,072 | 1,099 |
Total current assets | 9,253 | 10,238 |
Investments (Note 8) | 1,826 | 1,801 |
Property, plant and equipment, net of accumulated depreciation - $9,027 and $8,332 | 12,549 | 12,766 |
Goodwill, net (Note 10) | 1,330 | 1,150 |
Other intangible assets, net (Note 10) | 678 | 497 |
Deferred income taxes (Note 4) | 1,711 | 1,889 |
Other assets | 1,551 | 1,722 |
Total Assets | 28,898 | 30,063 |
Current liabilities: | ||
Current portion of long-term debt (Note 3) | 101 | 36 |
Accounts payable | 909 | 997 |
Other accrued liabilities (Note 2) | 956 | 1,291 |
Total current liabilities | 1,966 | 2,324 |
Long-term debt (Note 3) | 3,915 | 3,227 |
Postretirement benefits other than pensions (Note 11) | 782 | 814 |
Other liabilities (Note 2) | 2,165 | 2,046 |
Total liabilities | $ 8,828 | $ 8,411 |
Commitments and contingencies (Note 2) | ||
Shareholders’ equity (Note 14): | ||
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: 1,680 million and 1,672 million | 840 | 836 |
Additional paid-in capital – common stock | 13,590 | 13,456 |
Retained earnings | 13,769 | 13,021 |
Treasury stock, at cost; Shares held: 496 million and 398 million | (8,699) | (6,727) |
Accumulated other comprehensive loss | (1,803) | (1,307) |
Total Corning Incorporated shareholders’ equity | 19,997 | 21,579 |
Noncontrolling interests | 73 | 73 |
Total equity | 20,070 | 21,652 |
Total Liabilities and Equity | $ 28,898 | $ 30,063 |
Consolidated Balance Sheets (U5
Consolidated Balance Sheets (Unaudited) (Parentheticals) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Doubtful accounts and allowances (in Dollars) | $ 48 | $ 47 |
Inventory reserves (in Dollars) | 130 | 127 |
Accumulated depreciation (in Dollars) | $ 9,027 | $ 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 | 1,680,000,000 | 1,672,000,000 |
Treasury stock, at cost, shares held | 496,000,000 | 398,000,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | ||
Cash Flows from Operating Activities: | |||
Net income | $ 1,115 | $ 1,484 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation | 842 | 877 | |
Amortization of purchased intangibles | 40 | 25 | |
Restructuring, impairment and other charges | 51 | ||
Stock compensation charges | 36 | 47 | |
Equity in earnings of affiliated companies | (195) | (243) | |
Dividends received from affiliated companies | 143 | 1,673 | |
Deferred tax expense provision | 187 | 414 | |
Restructuring payments | (38) | (30) | |
Employee benefit payments less than (in excess) of expense | 5 | (5) | |
Gains on foreign currency hedges related to translated earnings | (42) | (600) | |
Unrealized translation losses on transactions | 303 | 239 | |
Contingent consideration for fair value adjustment | (77) | ||
Changes in certain working capital items: | |||
Trade accounts receivable | 52 | (63) | |
Inventories | (60) | 27 | |
Other current assets | (204) | 17 | |
Accounts payable and other current liabilities | (294) | (339) | |
Other, net | (45) | 100 | |
Net cash provided by operating activities | 1,845 | 3,597 | |
Cash Flows from Investing Activities: | |||
Capital expenditures | (939) | (740) | |
Acquisitions of business, net of cash (paid) received | (531) | 66 | |
Investment in unconsolidated entities | (33) | (109) | |
Proceeds from loan repayments from unconsolidated entities | 6 | 15 | |
Short-term investments – acquisitions | (859) | (1,170) | |
Short-term investments – liquidations | 1,046 | 954 | |
Realized gains on foreign currency hedges related to translated earnings | 489 | 226 | |
Other, net | (1) | 5 | |
Net cash used in investing activities | (822) | (753) | |
Cash Flows from Financing Activities: | |||
Net repayments of short-term borrowings and current portion of long-term debt | (50) | ||
Principal payments under capital lease obligations | (1) | (1) | |
Proceeds from issuance of short-term debt | 2 | 22 | |
Proceeds from issuance of long-term debt | 745 | ||
Proceeds from issuance of commercial paper | 424 | ||
Proceeds from issuance of preferred stock (1) | [1] | 400 | |
Payments from settlement of interest rate swap arrangements | (10) | ||
Proceeds from the exercise of stock options | 99 | 98 | |
Repurchases of common stock for treasury | (1,905) | (2,300) | |
Dividends paid | (519) | (439) | |
Net cash used in financing activities | (1,589) | (1,846) | |
Effect of exchange rates on cash | (303) | (349) | |
Net (decrease) increase in cash and cash equivalents | (869) | 649 | |
Cash and cash equivalents at beginning of period | 5,309 | 4,704 | |
Cash and cash equivalents at end of period | $ 4,440 | $ 5,353 | |
[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 Informat
Supplemental Cash Flow Information | 9 Months Ended |
Sep. 30, 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 | 9 Months Ended |
Sep. 30, 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. 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. In August 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers (Topic 606), deferring the effective date of ASU 2014-09 by one year. We can elect to adopt the provisions of ASU 2014-09 for annual periods beginning after December 15, 2017, including interim periods within that reporting period. The FASB also agreed to allow entities to choose to adopt the standard as of the original effective date. |
Note 2 - Commitments, Contingen
Note 2 - Commitments, Contingencies, and Guarantees | 9 Months Ended |
Sep. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | 2. Commitments, Contingencies and Guarantees Pittsburgh Corning Corporation and Asbestos Litigation. 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 September 30, 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 $687 million at September 30, 2015, compared with an estimate of liability of $681 million at December 31, 2014. The $687 million liability is comprised of $247 million of the fair value of PCE, $290 million for the fixed series of payments, and $150 million for the non-PCC asbestos litigation, all referenced in the preceding paragraphs. With respect to the PCE liability, at September 30, 2015 and December 31, 2014, the fair value of $247 million and $241 million of our interest in PCE significantly exceeded its carrying value of $155 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. 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 has resolved these issues with a majority of its relevant insurers, and is vigorously contesting these cases with the remaining relevant insurers. Management is unable to predict the outcome of the litigation with these remaining insurers. Other Commitments and Contingencies We are required, at the time a guarantee is issued, to recognize a liability for the fair value or market value of the obligation it assumes. In the normal course of our business, we do not routinely provide significant third-party guarantees. Generally, any third party guarantees provided by Corning are limited to certain financial guarantees including stand-by letters of credit and performance bonds, and the incurrence of contingent liabilities in the form of purchase price adjustments related to attainment of milestones. When provided, these guarantees have various terms, and none of these guarantees are individually significant. As of September 30, 2015 and December 31, 2014, contingent guarantees totaled a notional value of $179 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 $313 million and $287 million, at September 30, 2015 and December 31, 2014, respectively. Product warranty liability accruals were considered insignificant at September 30, 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 18 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 September 30, 2015 and December 31, 2014, Corning had accrued approximately $38 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 September 30, 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 | 9 Months Ended |
Sep. 30, 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 $4.2 billion at September 30, 2015 and $3.6 billion at December 31, 2014, compared to recorded book values of $3.9 billion at September 30, 2015 and $3.2 billion at 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. Debt Issuances 2015 In the second quarter of 2015, we issued $375 million of 1.50% senior unsecured notes that mature on May 8, 2018 and $375 million of 2.90% senior unsecured notes that mature on May 15, 2022. The net proceeds of $745 million will be used for general corporate purposes. We can redeem these debentures at any time, subject to certain stipulations. 2014 In the third quarter of 2014, we amended and restated our existing revolving credit facility. The amended facility provides a $2 billion unsecured multi-currency line of credit and expires on September 30, 2019. At September 30, 2015, there were no outstanding amounts on this credit facility. The facility includes affirmative and negative covenants that Corning must comply with, including a leverage (debt to capital ratio) financial covenant. As of September 30, 2015, we were in compliance with all of the covenants. |
Note 4 - Income Taxes
Note 4 - Income Taxes | 9 Months Ended |
Sep. 30, 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 September 30, Nine months ended September 30, 2015 2014 2015 2014 Provision for income taxes $ (6) $ (395) $ (202) $ (747) Effective tax rate 2.8% 28.0% 15.3% 33.5% For the three and nine months ended September 30, 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 the inclusion of high-taxed foreign earnings in U.S. income; and · The impact of equity in earnings of nonconsolidated affiliates reported in the financials, net of tax. For the three and nine months ended September 30, 2014, the effective income tax rate differed from the U.S. statutory rate of 35% primarily due to the following benefits: · Rate differences on income (loss) of consolidated foreign companies, including the benefit of excess foreign tax credits resulting from the inclusion of high-taxed foreign earnings in U.S. income; · 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 by discrete tax charges of: 1) $102 million related to South Korean withholding tax on a dividend paid by Samsung Corning Precision Materials to Corning wholly owned foreign subsidiaries for the nine months ended September 30, 2014; and 2) $163 million attributable to a change in judgment on the realizability of certain foreign deferred tax assets for the nine months ended September 30, 2014. 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 Sh
Note 5 - Earnings Per Common Share | 9 Months Ended |
Sep. 30, 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 September 30, Nine months ended September 30, 2015 2014 2015 2014 Net income attributable to Corning Incorporated $ 212 $ 1,014 $ 1,115 $ 1,484 Less: Series A convertible preferred stock dividend 24 24 73 70 Net income available to common stockholders - basic 188 990 1,042 1,414 Plus: Series A convertible preferred stock dividend (1) 24 73 70 Net income available to common stockholders - diluted $ 188 $ 1,014 $ 1,115 $ 1,484 Weighted-average common shares outstanding - basic 1,210 1,284 1,241 1,315 Effect of dilutive securities: Stock options and other dilutive securities 8 12 10 12 Series A convertible preferred stock (1) 115 115 109 Weighted-average common shares outstanding - diluted 1,218 1,411 1,366 1,436 Basic earnings per common share $ 0.16 $ 0.77 $ 0.84 $ 1.08 Diluted earnings per common share $ 0.15 $ 0.72 $ 0.82 $ 1.03 Antidilutive potential shares excluded from diluted earnings per common share: Series A convertible preferred stock (1) 115 Employee stock options and awards 29 23 22 24 Accelerated share repurchase forward contract 4 Total 144 23 22 28 (1) In the three months ended September 30, 2015, the Series A convertible preferred stock was anti-dilutive and therefore excluded from the calculation of diluted earnings per share. |
Note 6 - Available-for-Sale Inv
Note 6 - Available-for-Sale Investments | 9 Months Ended |
Sep. 30, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [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 September 30, 2015 December 31, 2014 September 30, 2015 December 31, 2014 Bonds, notes and other securities: U.S. government and agencies $ 573 $ 759 $ 573 $ 759 Total short-term investments $ 573 $ 759 $ 573 $ 759 Asset-backed securities $ 39 $ 42 $ 35 $ 38 Total long-term investments $ 39 $ 42 $ 35 $ 38 We do not intend to sell, nor do we believe it is more likely than not that we would be required to sell, the long-term investment asset-backed securities (which are collateralized by mortgages) before recovery of their amortized cost basis. It is possible that a significant degradation in the delinquency or foreclosure rates in the underlying assets could cause further temporary or other-than-temporary impairments in the future. The following table summarizes the contractual maturities of available-for-sale securities at September 30, 2015 (in millions): Less than one year $545 Due in 1-5 years 28 Due in 5-10 years Due after 10 years (1) 35 Total $608 (1) Includes $35 million of asset-based securities that mature over time and are being reported at their final maturity dates. For the nine months ended September 30, 2015 and 2014, proceeds from sales and maturities of short-term investments each totaled approximately $1.0 billion. |
Note 7 - Inventories, Net of In
Note 7 - Inventories, Net of Inventory Reserves | 9 Months Ended |
Sep. 30, 2015 | |
Inventory Disclosure [Abstract] | |
Inventory Disclosure [Text Block] | 7. Inventories, Net of Inventory Reserves Inventories, net of inventory reserves comprise the following (in millions): September 30, 2015 December 31, 2014 Finished goods $ 583 $ 486 Work in process 257 255 Raw materials and accessories 246 302 Supplies and packing materials 288 279 Total inventories, net of inventory reserves $ 1,374 $ 1,322 |
Note 8 - Investments
Note 8 - Investments | 9 Months Ended |
Sep. 30, 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 September 30, Nine months ended September 30, 2015 2014 2015 2014 Statement of Operations: Net sales $ 1,389 $ 1,520 $ 4,177 $ 4,545 Gross profit (1) $ 336 $ 351 $ 1,058 $ 1,071 Net income attributable to Dow Corning $ 72 $ 176 $ 370 $ 476 Corning’s equity in earnings of Dow Corning $ 36 $ 88 $ 185 $ 234 (1) Gross profit for the three and nine months ended September 30, 2015 includes research and development costs of $54 million and $179 million (2014: $70 million and $207 million). Dow Corning’s net income in the three and nine months ended September 30, 2015 includes a pre-tax loss of $56 million and $98 million, respectively, on a derivative instrument. Additionally, in the first quarter of 2015, Dow Corning recorded a pre-tax gain of $178 million on the settlement of long-term sales agreements. Dow Corning’s net income in the three and nine months ended September 30, 2014 includes a pre-tax (loss) gain of $(24) million and $90 million, respectively, on a derivative instrument. Additionally, for the three months ended September 30, 2014 Dow Corning’s net income includes a foreign tax credit of $82 million. |
Note 9 - Acquisitions
Note 9 - Acquisitions | 9 Months Ended |
Sep. 30, 2015 | |
Business Combinations [Abstract] | |
Business Combination Disclosure [Text Block] | 9. Acquisitions Corning completed four acquisitions during the first quarter of 2015. During the period ending September 30, 2015, minor adjustments were made to the preliminary allocation of the total purchase consideration related to working capital adjustments and true-up of the fair value of assets acquired for the four acquisitions. Corning has not completed its accounting for the acquisitions; therefore, amounts are subject to change. 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 242 Other current and non-current assets 22 Current and non-current liabilities (59) Total identified net assets 321 Purchase consideration (534) Goodwill (1) $ 213 (1) The goodwill was allocated to the Optical Communications segment. The total consideration related to the acquisitions 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 and $10 million as of September 30, 2015. The change in fair value of contingent consideration of $3 million was recorded as an adjustment to selling, general and administrative expenses. 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. The acquired amortizable 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 nine months ended September 30, 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 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 - Goodwill and Other In
Note 10 - Goodwill and Other Intangible Assets | 9 Months Ended |
Sep. 30, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets Disclosure [Text Block] | 10. Goodwill and Other Intangible Assets The carrying amount of goodwill by segment for the periods ended September 30, 2015 and December 31, 2014 is as follows (in millions): Optical Communications Display Technologies Specialty Materials Life Sciences Total Balance at December 31, 2014 $ 238 $ 134 $ 198 $ 580 $ 1,150 Acquired goodwill (1) 220 220 Measurement period adjustments (7) (7) Foreign currency translation adjustment (10) (7) (3) (13) (33) Balance at September 30, 2015 $ 441 $ 127 $ 195 $ 567 $ 1,330 (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 September 30, 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 September 30, 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): September 30, 2015 December 31, 2014 Gross Accumulated amortization Net Gross Accumulated amortization Net Amortized intangible assets: Patents, trademarks, and trade names $ 353 $ 159 $ 194 $ 302 $ 149 $ 153 Customer lists and other 579 95 484 411 67 344 Total $ 932 $ 254 $ 678 $ 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 nine months of 2015, primarily due to acquisitions of $242 million in other intangible assets offset by amortization of $40 million and foreign currency translation adjustments of $20 million. Amortization expense related to these intangible assets is estimated to be $57 million for 2015, $56 million annually from 2016 to 2019, and $51 million for 2020. |
Note 11 - Employee Retirement P
Note 11 - Employee Retirement Plans | 9 Months Ended |
Sep. 30, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Pension and Other Postretirement Benefits Disclosure [Text Block] | 11. 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 September 30, Nine months ended September 30, Three months ended September 30, Nine months ended September 30, 2015 2014 2015 2014 2015 2014 2015 2014 Service cost $ 22 $ 30 $ 67 $ 62 $ 3 $ 4 $ 10 $ 9 Interest cost 36 42 109 118 8 10 24 28 Expected return on plan assets (44) (45) (133) (131) Amortization of net loss 1 3 Amortization of prior service cost (credit) 2 1 5 4 (2) (3) (5) (5) Recognition of actuarial loss 8 Total pension and postretirement benefit expense $ 16 $ 28 $ 56 $ 53 $ 10 $ 11 $ 32 $ 32 |
Note 12 - Hedging Activities
Note 12 - Hedging Activities | 9 Months Ended |
Sep. 30, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities Disclosure [Text Block] | 12. Hedging Activities Undesignated Hedges The table below includes a total gross notional value for the foreign currency hedges related to translated earnings of $12.7 billion at September 30, 2015 (at December 31, 2014: $12.1 billion), including zero-cost collars of $5.7 billion (at December 31, 2014: $2.3 billion) and average rate forwards of $7.0 billion (at December 31, 2014: $9.8 billion). With respect to the zero-cost collars, the gross notional amount includes the value of both the put and call options. However, due to the nature of the zero-cost collars, either the put or the call option can be exercised at maturity. As of September 30, 2015, the total net notional value of the zero-cost collars was $3.0 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 September 30, 2015 and December 31, 2014 (in millions): U.S. Dollar Asset derivatives Liability derivatives Gross notional amount Balance sheet location Fair value Balance sheet location Fair value Sept. 30, 2015 Dec. 31, 2014 Sept. 30, 2015 Dec. 31, 2014 Sept. 30, 2015 Dec. 31, 2014 Derivatives designated as hedging instruments Foreign exchange contracts $ 803 $ 487 Other current assets $ 7 $ 22 Other accrued liabilities $ (10) $ (6) Other assets 1 Other liabilities (28) Interest rate contracts 550 1,300 Other assets 2 1 Other liabilities (15) Derivatives not designated as hedging instruments Foreign exchange contracts, other 592 1,285 Other current assets 2 17 Other accrued liabilities (5) (5) Foreign currency hedges related to translated earnings 12,678 12,126 Other current assets 540 649 Other accrued liabilities (59) (33) Other assets 605 846 Other liabilities (72) Total derivatives $14,623 $15,198 $1,157 $1,535 $(174) $(59) The following tables summarize the effect of derivative financial instruments on Corning’s consolidated financial statements for the three months ended September 30, 2015 and 2014 (in millions): Effect of derivative instruments on the consolidated financial statements for the three months ended September 30 Derivatives in hedging relationships Gain/(loss) recognized in other comprehensive income (OCI) Location of gain/(loss) reclassified from accumulated OCI into income (effective) Gain reclassified from accumulated OCI into income (effective) (1) 2015 2014 2015 2014 Interest rate hedges Sales $4 $1 Foreign exchange contracts $(58) $11 Cost of sales 1 2 Total cash flow hedges $(58) $11 $5 $3 (1) The amount of hedge ineffectiveness at September 30, 2015 and 2014 was insignificant. The following tables summarize the effect of derivative financial instruments on Corning’s consolidated financial statements for the nine months ended September 30, 2015 and 2014 (in millions): Effect of derivative instruments on the consolidated financial statements for the nine months ended September 30 Derivatives in hedging relationships Gain/(loss) recognized in other comprehensive income (OCI) Location of gain/(loss) reclassified from accumulated OCI into income (effective) Gain reclassified from accumulated OCI into income (effective) (1) 2015 2014 2015 2014 Interest rate hedges $ (7) Sales $14 $1 Foreign exchange contracts (24) $6 Cost of sales 7 2 Total cash flow hedges $(31) $6 $21 $3 (1) The amount of hedge ineffectiveness at September 30, 2015 and 2014 was insignificant. The following table summarizes the effect on the consolidated financial statements relating to Corning’s derivative financial instruments (in millions): Undesignated derivatives Location of gain/(loss) recognized in income Gain (loss) recognized in income Three months ended September 30, Nine months ended September 30, 2015 2014 2015 2014 Foreign exchange contracts – balance sheet Foreign currency hedge gain (loss), net $ (6) $ 21 $ 7 $ 16 Foreign exchange contracts – loans Foreign currency hedge gain (loss), net 1 5 3 6 Foreign currency hedges related to translated earnings Foreign currency hedge gain (loss), net (149) 739 42 600 Total undesignated $ (154) $ 765 $ 52 $ 622 |
Note 13 - Fair Value Measuremen
Note 13 - Fair Value Measurements | 9 Months Ended |
Sep. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures [Text Block] | 13. Fair Value Measurements Fair value standards under U.S. GAAP define fair value, establish a framework for measuring fair value in applying generally accepted accounting principles, and require disclosures about fair value measurements. The standards also identify two kinds of inputs that are used to determine the fair value of assets and liabilities: observable and unobservable. Observable inputs are based on market data or independent sources while unobservable inputs are based on the Company’s own market assumptions. Once inputs have been characterized, the inputs are prioritized into one of three broad levels (provided in the table below) used to measure fair value. Fair value standards apply whenever an entity is measuring fair value under other accounting pronouncements that require or permit fair value measurement and require the use of observable market data when available. The following tables provide fair value measurement information for the Company’s major categories of financial assets and liabilities measured on a recurring basis (in millions): Fair value measurements at reporting date using September 30, 2015 Quoted prices in active markets for identical assets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Current assets: Short-term investments $ 573 $ 513 $ 60 Other current assets (1) $ 549 $ 549 Non-current assets: Other assets (1)(2) $ 1,088 $ 643 $ 445 Current liabilities: Other accrued liabilities (1) $ 74 $ 74 Non-current liabilities: Other liabilities (1)(3) $ 110 $ 100 $ 10 (1) Derivative assets and liabilities include foreign exchange forward and zero-cost 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 liabilities include Level 3 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, 2014 Quoted prices in active markets for identical assets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (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 zero-cost 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 September 30, 2015 and December 31, 2014, the fair value of the potential receipt of the contingent consideration in 2018 was $445 million and $445 million, respectively. 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 September 30, 2015, the fair value of the contingent consideration payable is $10 million. There were no significant financial assets and liabilities measured on a nonrecurring basis during the nine months ended September 30, 2015. |
Note 14 - Shareholders' Equity
Note 14 - Shareholders' Equity | 9 Months Ended |
Sep. 30, 2015 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity Note Disclosure [Text Block] | 14. 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 September 30, 2015, the Preferred Stock has not been converted, and none of the anti-dilution provisions have been triggered. Share Repurchases During the three and nine months ended September 30, 2015, we repurchased 46.5 million and 97.0 million shares of common stock for $827 million and $1,955 million, respectively, as part of a $1.5 billion share repurchase program announced on December 3, 2014 and as part of a $2 billion share repurchase program announced on July 15, 2015. The program announced on December 3, 2014 was completed in the third quarter of 2015. Accumulated Other Comprehensive Income In the three and nine months ended September 30, 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 September 30, Nine months ended September 30, 2015 2014 2015 2014 Beginning balance $ (877) $ 629 $ (581) $ 492 Other comprehensive loss (163) (600) (399) (313) Equity method affiliates (18) (76) (78) (226) Net current-period other comprehensive loss (181) (676) (477) (539) Ending balance $ (1,058) $ (47) $ (1,058) $ (47) 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 15 - Share-based Compensat
Note 15 - Share-based Compensation | 9 Months Ended |
Sep. 30, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | 15. 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 $11 million and $19 million for the three months ended September 30, 2015 and 2014, respectively, and approximately $36 million and $47 million for the nine months ended September 30, 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 nine months ended September 30, 2015: Number of Shares (in thousands) Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term in Years Aggregate Intrinsic Value (in thousands) Options Outstanding as of December 31, 2014 48,724 $18.94 Granted 1,578 21.48 Exercised (6,080) 16.31 Forfeited and Expired (247) 18.83 Options Outstanding as of September 30, 2015 43,975 19.40 4.10 $67,066 Options Expected to Vest as of September 30, 2015 43,923 19.40 4.09 67,027 Options Exercisable as of September 30, 2015 36,470 19.84 3.26 54,856 The aggregate intrinsic value (market value of stock less option exercise price) in the preceding table represents the total pretax intrinsic value, based on the Company’s closing stock price on September 30, 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 September 30, 2015, there was approximately $9 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 1.8 years. Compensation cost related to stock options was approximately $2 million and $9 million for the three months ended September 30, 2015 and 2014, respectively, and approximately $13 million and $20 million for the nine months ended September 30, 2015 and 2014, respectively. Proceeds received from the exercise of stock options were $99 million and $98 million for the nine months ended September 30, 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 nine months ended September 30, 2015 and 2014 was approximately $46 million and $60 million, respectively. The income tax benefit realized from share-based compensation was not significant for the three and nine months ended September 30, 2015. There was an immaterial amount of income tax benefits realized from share-based compensation for the three and nine months ended September 30, 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 September 30, Nine months ended September 30, 2015 2014 2015 2014 Expected volatility 44.2 - 44.2% 45.7 - 45.7% 44.2 - 44.9% 45.7 - 46.2% Weighted-average volatility 44.2 - 44.2% 45.7 - 45.7% 44.2 - 44.9% 45.7 - 46.2% Expected dividends 2.67 - 2.67% 1.98 - 1.98% 1.92 - 2.67% 1.90 - 2.09% Risk-free rate 2.0 - 2.0% 2.0 - 2.0% 1.9 - 2.0% 2.0 - 2.2% Average risk-free rate 2.0 - 2.0% 2.0 - 2.0% 1.9 - 2.0% 2.0 - 2.2% Expected term (in years) 7.2 - 7.2 7.2 - 7.2 7.2 - 7.2 7.2 - 7.2 Pre-vesting departure rate 0.6 - 0.6% 0.5 - 0.5% 0.6 - 0.6% 0.5 - 0.5% 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 is based on the grant date closing price of the Company’s stock. 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 nine months ended September 30, 2015: Shares (000’s) Weighted Average Grant-Date Fair Value Non-vested shares and share units at December 31, 2014 5,737 $ 15.43 Granted 1,525 22.14 Vested (1,836) 13.94 Forfeited (59) 21.21 Non-vested shares and share units at September 30, 2015 5,367 $ 17.78 As of September 30, 2015, there was approximately $30 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 1.9 years. Compensation cost related to time-based restricted stock and restricted stock units was approximately $9 million and $10 million for the three months ended September 30, 2015 and 2014, respectively, and approximately $23 million and $27 million for the nine months ended September 30, 2015 and 2014, respectively. |
Note 16 - Reportable Segments
Note 16 - Reportable Segments | 9 Months Ended |
Sep. 30, 2015 | |
Segment Reporting [Abstract] | |
Segment Reporting Disclosure [Text Block] | 16. Reportable Segments Our reportable segments are as follows: · Display Technologies – manufactures glass substrates primarily 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 the results of Corning Precision Materials’ non-LCD business and new product lines and development projects that involve the use of various technologies for new products such as advanced flow reactors and adjacency businesses in pursuit of thin, strong glass. 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 Display Technologies Optical Communications Environmental Technologies Specialty Materials Life Sciences All Other Total Three months ended September 30, 2015 Net sales $ 757 $ 747 $ 257 $ 288 $ 211 $ 12 $ 2,272 Depreciation (1) $ 147 $ 41 $ 32 $ 29 $ 15 $ 9 $ 273 Amortization of purchased intangibles $ 7 $ 5 $ 12 Research, development and engineering expenses (2) $ 28 $ 33 $ 21 $ 27 $ 6 $ 34 $ 149 Restructuring, impairment and other charges $ 2 $ 2 Equity in earnings of affiliated companies $ (3) $ 4 $ 1 Income tax (provision) benefit $ (119) $ (34) $ (19) $ (23) $ (9) $ 19 $ (185) Net income (loss) (3) $ 255 $ 70 $ 38 $ 46 $ 18 $ (38) $ 389 Display Technologies Optical Communications Environmental Technologies Specialty Materials Life Sciences All Other Total Three months ended September 30, 2014 Net sales $ 1,009 $ 698 $ 282 $ 327 $ 214 $ 10 $ 2,540 Depreciation (1) $ 166 $ 38 $ 29 $ 30 $ 15 $ 9 $ 287 Amortization of purchased intangibles $ 3 $ 6 $ 9 Research, development and engineering expenses (2) $ 31 $ 35 $ 23 $ 35 $ 6 $ 43 $ 173 Restructuring, impairment and other charges $ 3 $ (3) Equity in earnings of affiliated companies $ (3) $ 4 $ 1 Income tax (provision) benefit $ (136) $ (35) $ (28) $ (25) $ (9) $ 21 $ (212) Net income (loss) (3) $ 387 $ 68 $ 57 $ 43 $ 19 $ (41) $ 533 Display Technologies Optical Communications Environmental Technologies Specialty Materials Life Sciences All Other Total Nine months ended September 30, 2015 Net sales $ 2,354 $ 2,244 $ 799 $ 832 $ 619 $ 32 $ 6,880 Depreciation (1) $ 455 $ 122 $ 93 $ 82 $ 45 $ 29 $ 826 Amortization of purchased intangibles $ 24 $ 15 $ 39 Research, development and engineering expenses (2) $ 78 $ 101 $ 67 $ 87 $ 17 $ 123 $ 473 Restructuring, impairment and other charges $ (1) $ 5 $ 4 Equity in earnings of affiliated companies $ (8) $ 12 $ 4 Income tax (provision) benefit $ (387) $ (100) $ (64) $ (66) $ (26) $ 63 $ (580) Net income (loss) (3) $ 852 $ 204 $ 132 $ 128 $ 52 $ (131) $ 1,237 Display Technologies Optical Communications Environmental Technologies Specialty Materials Life Sciences All Other Total Nine months ended September 30, 2014 Net sales $ 2,925 $ 1,977 $ 842 $ 886 $ 647 $ 34 $ 7,311 Depreciation (1) $ 510 $ 111 $ 89 $ 86 $ 46 $ 21 $ 863 Amortization of purchased intangibles $ 7 $ 18 $ 25 Research, development and engineering expenses (2) $ 117 $ 106 $ 65 $ 102 $ 16 $ 119 $ 525 Restructuring, impairment and other charges $ 42 $ 12 $ (3) $ 51 Equity in earnings of affiliated companies $ (16) $ 2 $ 13 $ (1) Income tax (provision) benefit $ (453) $ (85) $ (72) $ (62) $ (26) $ 59 $ (639) Net income (loss) (3) $ 878 $ 156 $ 147 $ 113 $ 54 $ (140) $ 1,208 (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 September 30, Nine months ended September 30, 2015 2014 2015 2014 Net income of reportable segments $ 427 $ 574 $ 1,368 $ 1,348 Non-reportable segments (38) (41) (131) (140) Unallocated amounts: Net financing costs (1) (31) (27) (80) (86) Stock-based compensation expense (11) (19) (36) (47) Exploratory research (32) (24) (86) (75) Corporate contributions (13) (19) (37) (35) Equity in earnings of affiliated companies, net of impairments (2) 38 94 191 245 Asbestos settlement 9 (5) 6 (11) Unrealized (loss) gain on foreign currency hedges related to translated earnings (200) 431 (282) 282 Other corporate items 63 50 202 3 Net income $ 212 $ 1,014 $ 1,115 $ 1,484 (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 foreign currency hedges related to translated earnings. |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 9 Months Ended |
Sep. 30, 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. |
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. In August 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers (Topic 606), deferring the effective date of ASU 2014-09 by one year. We can elect to adopt the provisions of ASU 2014-09 for annual periods beginning after December 15, 2017, including interim periods within that reporting period. The FASB also agreed to allow entities to choose to adopt the standard as of the original effective date. |
Note 4 - Income Taxes (Tables)
Note 4 - Income Taxes (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income Tax Provisions and Rates [Table Text Block] | Three months ended September 30, Nine months ended September 30, 2015 2014 2015 2014 Provision for income taxes $ (6) $ (395) $ (202) $ (747) Effective tax rate 2.8% 28.0% 15.3% 33.5% |
Note 5 - Earnings Per Common 26
Note 5 - Earnings Per Common Share (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Three months ended September 30, Nine months ended September 30, 2015 2014 2015 2014 Net income attributable to Corning Incorporated $ 212 $ 1,014 $ 1,115 $ 1,484 Less: Series A convertible preferred stock dividend 24 24 73 70 Net income available to common stockholders - basic 188 990 1,042 1,414 Plus: Series A convertible preferred stock dividend (1) 24 73 70 Net income available to common stockholders - diluted $ 188 $ 1,014 $ 1,115 $ 1,484 Weighted-average common shares outstanding - basic 1,210 1,284 1,241 1,315 Effect of dilutive securities: Stock options and other dilutive securities 8 12 10 12 Series A convertible preferred stock (1) 115 115 109 Weighted-average common shares outstanding - diluted 1,218 1,411 1,366 1,436 Basic earnings per common share $ 0.16 $ 0.77 $ 0.84 $ 1.08 Diluted earnings per common share $ 0.15 $ 0.72 $ 0.82 $ 1.03 Antidilutive potential shares excluded from diluted earnings per common share: Series A convertible preferred stock (1) 115 Employee stock options and awards 29 23 22 24 Accelerated share repurchase forward contract 4 Total 144 23 22 28 |
Note 6 - Available-for-Sale I27
Note 6 - Available-for-Sale Investments (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Available-for-sale Securities Reconciliation [Table Text Block] | Amortized cost Fair value September 30, 2015 December 31, 2014 September 30, 2015 December 31, 2014 Bonds, notes and other securities: U.S. government and agencies $ 573 $ 759 $ 573 $ 759 Total short-term investments $ 573 $ 759 $ 573 $ 759 Asset-backed securities $ 39 $ 42 $ 35 $ 38 Total long-term investments $ 39 $ 42 $ 35 $ 38 |
Investments Classified by Contractual Maturity Date [Table Text Block] | Less than one year $545 Due in 1-5 years 28 Due in 5-10 years Due after 10 years (1) 35 Total $608 |
Note 7 - Inventories, Net of 28
Note 7 - Inventories, Net of Inventory Reserves (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory, Current [Table Text Block] | September 30, 2015 December 31, 2014 Finished goods $ 583 $ 486 Work in process 257 255 Raw materials and accessories 246 302 Supplies and packing materials 288 279 Total inventories, net of inventory reserves $ 1,374 $ 1,322 |
Note 8 - Investments (Tables)
Note 8 - Investments (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of Affiliate Result of Operations [Table Text Block] | Three months ended September 30, Nine months ended September 30, 2015 2014 2015 2014 Statement of Operations: Net sales $ 1,389 $ 1,520 $ 4,177 $ 4,545 Gross profit (1) $ 336 $ 351 $ 1,058 $ 1,071 Net income attributable to Dow Corning $ 72 $ 176 $ 370 $ 476 Corning’s equity in earnings of Dow Corning $ 36 $ 88 $ 185 $ 234 |
Note 9 - Acquisitions (Tables)
Note 9 - Acquisitions (Tables) | 9 Months Ended |
Sep. 30, 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 242 Other current and non-current assets 22 Current and non-current liabilities (59) Total identified net assets 321 Purchase consideration (534) Goodwill (1) $ 213 |
Note 10 - Goodwill and Other 31
Note 10 - Goodwill and Other Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill [Table Text Block] | Optical Communications Display Technologies Specialty Materials Life Sciences Total Balance at December 31, 2014 $ 238 $ 134 $ 198 $ 580 $ 1,150 Acquired goodwill (1) 220 220 Measurement period adjustments (7) (7) Foreign currency translation adjustment (10) (7) (3) (13) (33) Balance at September 30, 2015 $ 441 $ 127 $ 195 $ 567 $ 1,330 |
Schedule of Finite-Lived Intangible Assets [Table Text Block] | September 30, 2015 December 31, 2014 Gross Accumulated amortization Net Gross Accumulated amortization Net Amortized intangible assets: Patents, trademarks, and trade names $ 353 $ 159 $ 194 $ 302 $ 149 $ 153 Customer lists and other 579 95 484 411 67 344 Total $ 932 $ 254 $ 678 $ 713 $ 216 $ 497 |
Note 11 - Employee Retirement32
Note 11 - Employee Retirement Plans (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Schedule of Net Benefit Costs [Table Text Block] | Pension benefits Postretirement benefits Three months ended September 30, Nine months ended September 30, Three months ended September 30, Nine months ended September 30, 2015 2014 2015 2014 2015 2014 2015 2014 Service cost $ 22 $ 30 $ 67 $ 62 $ 3 $ 4 $ 10 $ 9 Interest cost 36 42 109 118 8 10 24 28 Expected return on plan assets (44) (45) (133) (131) Amortization of net loss 1 3 Amortization of prior service cost (credit) 2 1 5 4 (2) (3) (5) (5) Recognition of actuarial loss 8 Total pension and postretirement benefit expense $ 16 $ 28 $ 56 $ 53 $ 10 $ 11 $ 32 $ 32 |
Note 12 - Hedging Activities (T
Note 12 - Hedging Activities (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Note 12 - 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 sheet location Fair value Balance sheet location Fair value Sept. 30, 2015 Dec. 31, 2014 Sept. 30, 2015 Dec. 31, 2014 Sept. 30, 2015 Dec. 31, 2014 Derivatives designated as hedging instruments Foreign exchange contracts $ 803 $ 487 Other current assets $ 7 $ 22 Other accrued liabilities $ (10) $ (6) Other assets 1 Other liabilities (28) Interest rate contracts 550 1,300 Other assets 2 1 Other liabilities (15) Derivatives not designated as hedging instruments Foreign exchange contracts, other 592 1,285 Other current assets 2 17 Other accrued liabilities (5) (5) Foreign currency hedges related to translated earnings 12,678 12,126 Other current assets 540 649 Other accrued liabilities (59) (33) Other assets 605 846 Other liabilities (72) Total derivatives $14,623 $15,198 $1,157 $1,535 $(174) $(59) |
Designated as Hedging Instrument [Member] | |
Note 12 - Hedging Activities (Tables) [Line Items] | |
Schedule of Derivative Instruments, Effect on Other Comprehensive Income (Loss) [Table Text Block] | Effect of derivative instruments on the consolidated financial statements for the three months ended September 30 Derivatives in hedging relationships Gain/(loss) recognized in other comprehensive income (OCI) Location of gain/(loss) reclassified from accumulated OCI into income (effective) Gain reclassified from accumulated OCI into income (effective) (1) 2015 2014 2015 2014 Interest rate hedges Sales $4 $1 Foreign exchange contracts $(58) $11 Cost of sales 1 2 Total cash flow hedges $(58) $11 $5 $3 Effect of derivative instruments on the consolidated financial statements for the nine months ended September 30 Derivatives in hedging relationships Gain/(loss) recognized in other comprehensive income (OCI) Location of gain/(loss) reclassified from accumulated OCI into income (effective) Gain reclassified from accumulated OCI into income (effective) (1) 2015 2014 2015 2014 Interest rate hedges $ (7) Sales $14 $1 Foreign exchange contracts (24) $6 Cost of sales 7 2 Total cash flow hedges $(31) $6 $21 $3 |
Not Designated as Hedging Instrument [Member] | |
Note 12 - Hedging Activities (Tables) [Line Items] | |
Schedule of Derivative Instruments, Effect on Other Comprehensive Income (Loss) [Table Text Block] | Undesignated derivatives Location of gain/(loss) recognized in income Gain (loss) recognized in income Three months ended September 30, Nine months ended September 30, 2015 2014 2015 2014 Foreign exchange contracts – balance sheet Foreign currency hedge gain (loss), net $ (6) $ 21 $ 7 $ 16 Foreign exchange contracts – loans Foreign currency hedge gain (loss), net 1 5 3 6 Foreign currency hedges related to translated earnings Foreign currency hedge gain (loss), net (149) 739 42 600 Total undesignated $ (154) $ 765 $ 52 $ 622 |
Note 13 - Fair Value Measurem34
Note 13 - Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 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 September 30, 2015 Quoted prices in active markets for identical assets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Current assets: Short-term investments $ 573 $ 513 $ 60 Other current assets (1) $ 549 $ 549 Non-current assets: Other assets (1)(2) $ 1,088 $ 643 $ 445 Current liabilities: Other accrued liabilities (1) $ 74 $ 74 Non-current liabilities: Other liabilities (1)(3) $ 110 $ 100 $ 10 Fair value measurements at reporting date using December 31, 2014 Quoted prices in active markets for identical assets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (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 14 - Shareholders' Equity
Note 14 - Shareholders' Equity (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Stockholders' Equity Note [Abstract] | |
Comprehensive Income (Loss) [Table Text Block] | Three months ended September 30, Nine months ended September 30, 2015 2014 2015 2014 Beginning balance $ (877) $ 629 $ (581) $ 492 Other comprehensive loss (163) (600) (399) (313) Equity method affiliates (18) (76) (78) (226) Net current-period other comprehensive loss (181) (676) (477) (539) Ending balance $ (1,058) $ (47) $ (1,058) $ (47) |
Note 15 - Share-based Compens36
Note 15 - Share-based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | Number of Shares (in thousands) Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term in Years Aggregate Intrinsic Value (in thousands) Options Outstanding as of December 31, 2014 48,724 $18.94 Granted 1,578 21.48 Exercised (6,080) 16.31 Forfeited and Expired (247) 18.83 Options Outstanding as of September 30, 2015 43,975 19.40 4.10 $67,066 Options Expected to Vest as of September 30, 2015 43,923 19.40 4.09 67,027 Options Exercisable as of September 30, 2015 36,470 19.84 3.26 54,856 |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | Three months ended September 30, Nine months ended September 30, 2015 2014 2015 2014 Expected volatility 44.2 - 44.2% 45.7 - 45.7% 44.2 - 44.9% 45.7 - 46.2% Weighted-average volatility 44.2 - 44.2% 45.7 - 45.7% 44.2 - 44.9% 45.7 - 46.2% Expected dividends 2.67 - 2.67% 1.98 - 1.98% 1.92 - 2.67% 1.90 - 2.09% Risk-free rate 2.0 - 2.0% 2.0 - 2.0% 1.9 - 2.0% 2.0 - 2.2% Average risk-free rate 2.0 - 2.0% 2.0 - 2.0% 1.9 - 2.0% 2.0 - 2.2% Expected term (in years) 7.2 - 7.2 7.2 - 7.2 7.2 - 7.2 7.2 - 7.2 Pre-vesting departure rate 0.6 - 0.6% 0.5 - 0.5% 0.6 - 0.6% 0.5 - 0.5% |
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity [Table Text Block] | Shares (000’s) Weighted Average Grant-Date Fair Value Non-vested shares and share units at December 31, 2014 5,737 $ 15.43 Granted 1,525 22.14 Vested (1,836) 13.94 Forfeited (59) 21.21 Non-vested shares and share units at September 30, 2015 5,367 $ 17.78 |
Note 16 - Reportable Segments (
Note 16 - Reportable Segments (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Display Technologies Optical Communications Environmental Technologies Specialty Materials Life Sciences All Other Total Three months ended September 30, 2015 Net sales $ 757 $ 747 $ 257 $ 288 $ 211 $ 12 $ 2,272 Depreciation (1) $ 147 $ 41 $ 32 $ 29 $ 15 $ 9 $ 273 Amortization of purchased intangibles $ 7 $ 5 $ 12 Research, development and engineering expenses (2) $ 28 $ 33 $ 21 $ 27 $ 6 $ 34 $ 149 Restructuring, impairment and other charges $ 2 $ 2 Equity in earnings of affiliated companies $ (3) $ 4 $ 1 Income tax (provision) benefit $ (119) $ (34) $ (19) $ (23) $ (9) $ 19 $ (185) Net income (loss) (3) $ 255 $ 70 $ 38 $ 46 $ 18 $ (38) $ 389 Display Technologies Optical Communications Environmental Technologies Specialty Materials Life Sciences All Other Total Three months ended September 30, 2014 Net sales $ 1,009 $ 698 $ 282 $ 327 $ 214 $ 10 $ 2,540 Depreciation (1) $ 166 $ 38 $ 29 $ 30 $ 15 $ 9 $ 287 Amortization of purchased intangibles $ 3 $ 6 $ 9 Research, development and engineering expenses (2) $ 31 $ 35 $ 23 $ 35 $ 6 $ 43 $ 173 Restructuring, impairment and other charges $ 3 $ (3) Equity in earnings of affiliated companies $ (3) $ 4 $ 1 Income tax (provision) benefit $ (136) $ (35) $ (28) $ (25) $ (9) $ 21 $ (212) Net income (loss) (3) $ 387 $ 68 $ 57 $ 43 $ 19 $ (41) $ 533 Display Technologies Optical Communications Environmental Technologies Specialty Materials Life Sciences All Other Total Nine months ended September 30, 2015 Net sales $ 2,354 $ 2,244 $ 799 $ 832 $ 619 $ 32 $ 6,880 Depreciation (1) $ 455 $ 122 $ 93 $ 82 $ 45 $ 29 $ 826 Amortization of purchased intangibles $ 24 $ 15 $ 39 Research, development and engineering expenses (2) $ 78 $ 101 $ 67 $ 87 $ 17 $ 123 $ 473 Restructuring, impairment and other charges $ (1) $ 5 $ 4 Equity in earnings of affiliated companies $ (8) $ 12 $ 4 Income tax (provision) benefit $ (387) $ (100) $ (64) $ (66) $ (26) $ 63 $ (580) Net income (loss) (3) $ 852 $ 204 $ 132 $ 128 $ 52 $ (131) $ 1,237 Display Technologies Optical Communications Environmental Technologies Specialty Materials Life Sciences All Other Total Nine months ended September 30, 2014 Net sales $ 2,925 $ 1,977 $ 842 $ 886 $ 647 $ 34 $ 7,311 Depreciation (1) $ 510 $ 111 $ 89 $ 86 $ 46 $ 21 $ 863 Amortization of purchased intangibles $ 7 $ 18 $ 25 Research, development and engineering expenses (2) $ 117 $ 106 $ 65 $ 102 $ 16 $ 119 $ 525 Restructuring, impairment and other charges $ 42 $ 12 $ (3) $ 51 Equity in earnings of affiliated companies $ (16) $ 2 $ 13 $ (1) Income tax (provision) benefit $ (453) $ (85) $ (72) $ (62) $ (26) $ 59 $ (639) Net income (loss) (3) $ 878 $ 156 $ 147 $ 113 $ 54 $ (140) $ 1,208 |
Reconciliation of Revenue from Segments to Consolidated [Table Text Block] | Three months ended September 30, Nine months ended September 30, 2015 2014 2015 2014 Net income of reportable segments $ 427 $ 574 $ 1,368 $ 1,348 Non-reportable segments (38) (41) (131) (140) Unallocated amounts: Net financing costs (1) (31) (27) (80) (86) Stock-based compensation expense (11) (19) (36) (47) Exploratory research (32) (24) (86) (75) Corporate contributions (13) (19) (37) (35) Equity in earnings of affiliated companies, net of impairments (2) 38 94 191 245 Asbestos settlement 9 (5) 6 (11) Unrealized (loss) gain on foreign currency hedges related to translated earnings (200) 431 (282) 282 Other corporate items 63 50 202 3 Net income $ 212 $ 1,014 $ 1,115 $ 1,484 |
Supplemental Cash Flow Inform38
Supplemental Cash Flow Information (Details) - Samsung Corning Precision Materials Co., Ltd. [Member] - Convertible Preferred Stock, Series A [Member] - USD ($) $ in Millions | 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 2 - Commitments, Conting39
Note 2 - Commitments, Contingencies, and Guarantees (Details) $ in Millions | 9 Months Ended | |||
Sep. 30, 2015USD ($) | Dec. 31, 2014USD ($) | Nov. 12, 2013USD ($) | Apr. 16, 2000USD ($) | |
Note 2 - Commitments, Contingencies, and Guarantees (Details) [Line Items] | ||||
Recorded Unconditional Purchase Obligation | $ 313 | $ 287 | ||
Number of Hazardous Waste Sites | 18 | |||
Contingent Guarantees [Member] | ||||
Note 2 - Commitments, Contingencies, and Guarantees (Details) [Line Items] | ||||
Guarantor Obligations, Maximum Exposure, Undiscounted | $ 179 | 150 | ||
Pittsburgh Corning Corporation (PCC) [Member] | ||||
Note 2 - Commitments, Contingencies, and Guarantees (Details) [Line Items] | ||||
Equity Method Investment, Ownership Percentage | 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 | $ 247 | 241 | ||
Equity Method Investments | 155 | 162 | ||
Environmental Cleanup And Related Litigation [Member] | ||||
Note 2 - Commitments, Contingencies, and Guarantees (Details) [Line Items] | ||||
Accrual for Environmental Loss Contingencies | $ 38 | 43 | ||
PPG Industries, Inc. [Member] | Pittsburgh Corning Corporation (PCC) [Member] | ||||
Note 2 - Commitments, Contingencies, and Guarantees (Details) [Line Items] | ||||
Equity Method Investment, Ownership Percentage | 50.00% | |||
Asbestos Litigation [Member] | Amended Pittsburgh Corning Corporation Plan [Member] | ||||
Note 2 - Commitments, Contingencies, and Guarantees (Details) [Line Items] | ||||
Loss Contingency, Required Payments Per Reorganization Plan | $ 290 | |||
Asbestos Litigation [Member] | First Payment [Member] | Amended Pittsburgh Corning Corporation Plan [Member] | ||||
Note 2 - Commitments, Contingencies, and Guarantees (Details) [Line Items] | ||||
Loss Contingency, Required Payments Per Reorganization Plan | 70 | |||
Asbestos Litigation [Member] | First Subsequent Anniversary [Member] | Amended Pittsburgh Corning Corporation Plan [Member] | ||||
Note 2 - Commitments, Contingencies, and Guarantees (Details) [Line Items] | ||||
Loss Contingency, Required Payments Per Reorganization Plan | 35 | |||
Asbestos Litigation [Member] | Second Subsequent Anniversary [Member] | Amended Pittsburgh Corning Corporation Plan [Member] | ||||
Note 2 - Commitments, Contingencies, and Guarantees (Details) [Line Items] | ||||
Loss Contingency, Required Payments Per Reorganization Plan | 50 | |||
Asbestos Litigation [Member] | Third Subsequent Anniversary [Member] | Amended Pittsburgh Corning Corporation Plan [Member] | ||||
Note 2 - Commitments, Contingencies, and Guarantees (Details) [Line Items] | ||||
Loss Contingency, Required Payments Per Reorganization Plan | 35 | |||
Asbestos Litigation [Member] | Fourth Subsequent Anniversary [Member] | Amended Pittsburgh Corning Corporation Plan [Member] | ||||
Note 2 - Commitments, Contingencies, and Guarantees (Details) [Line Items] | ||||
Loss Contingency, Required Payments Per Reorganization Plan | 50 | |||
Asbestos Litigation [Member] | Fifth Subsequent Anniversary [Member] | Amended Pittsburgh Corning Corporation Plan [Member] | ||||
Note 2 - Commitments, Contingencies, and Guarantees (Details) [Line Items] | ||||
Loss Contingency, Required Payments Per Reorganization Plan | $ 50 | |||
Asbestos Litigation [Member] | Pittsburgh Corning Corporation (PCC) [Member] | ||||
Note 2 - Commitments, Contingencies, and Guarantees (Details) [Line Items] | ||||
Loss Contingency, Pending Claims, Number | 11,800 | |||
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 | |||
Loss Contingency Accrual, Period Increase (Decrease) | $ 150 | |||
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 | $ 687 | $ 681 |
Note 3 - Debt (Details)
Note 3 - Debt (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |
Jun. 30, 2015 | Sep. 30, 2015 | Dec. 31, 2014 | |
Note 3 - Debt (Details) [Line Items] | |||
Debt Instrument, Fair Value Disclosure | $ 4,200 | $ 3,600 | |
Long-term Debt and Capital Lease Obligations | 3,915 | $ 3,227 | |
Proceeds from Issuance of Unsecured Debt | 745 | ||
Senior Notes [Member] | |||
Note 3 - Debt (Details) [Line Items] | |||
Proceeds from Issuance of Unsecured Debt | $ 745 | ||
Amended Credit Facility [Member] | |||
Note 3 - Debt (Details) [Line Items] | |||
Line of Credit Facility, Maximum Borrowing Capacity | 2,000 | ||
Long-term Line of Credit | $ 0 | ||
1.50% Due May 8, 2018 [Member] | Senior Notes [Member] | |||
Note 3 - Debt (Details) [Line Items] | |||
Debt Instrument, Face Amount | $ 375 | ||
Debt Instrument, Interest Rate, Stated Percentage | 1.50% | ||
2.90% Due May 15, 2022 [Member] | Senior Notes [Member] | |||
Note 3 - Debt (Details) [Line Items] | |||
Debt Instrument, Face Amount | $ 375 | ||
Debt Instrument, Interest Rate, Stated Percentage | 2.90% |
Note 4 - Income Taxes (Details)
Note 4 - Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Note 4 - Income Taxes (Details) [Line Items] | ||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 35.00% | 35.00% | 35.00% | 35.00% |
Low Or No Tax Cost [Member] | ||||
Note 4 - Income Taxes (Details) [Line Items] | ||||
Undistributed Earnings of Foreign Subsidiaries (in Dollars) | $ 6 | $ 6 | ||
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 | |||
Foreign Tax Authority [Member] | ||||
Note 4 - Income Taxes (Details) [Line Items] | ||||
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount (in Dollars) | $ 163 |
Note 4 - Income Taxes (Detail42
Note 4 - Income Taxes (Details) - Provision for Income Taxes - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Provision for Income Taxes [Abstract] | ||||
Provision for income taxes | $ (6) | $ (395) | $ (202) | $ (747) |
Effective tax rate | 2.80% | 28.00% | 15.30% | 33.50% |
Note 5 - Earnings Per Common 43
Note 5 - Earnings Per Common Share (Details) - Computation of Basic and Diluted Earnings per Common Share - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 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) | $ 212 | $ 1,014 | $ 1,115 | $ 1,484 |
Net income available to common stockholders - basic (in Dollars) | 188 | 990 | 1,042 | 1,414 |
Net income available to common stockholders - diluted (in Dollars) | $ 188 | $ 1,014 | $ 1,115 | $ 1,484 |
Weighted-average common shares outstanding - basic | 1,210 | 1,284 | 1,241 | 1,315 |
Effect of dilutive securities: | ||||
Weighted-average common shares outstanding - diluted | 1,218 | 1,411 | 1,366 | 1,436 |
Basic earnings per common share (in Dollars per share) | $ 0.16 | $ 0.77 | $ 0.84 | $ 1.08 |
Diluted earnings per common share (in Dollars per share) | $ 0.15 | $ 0.72 | $ 0.82 | $ 1.03 |
Antidilutive potential shares excluded from diluted earnings per common share: | ||||
Anti-dilutive potential shares excluded from diluted earnings per common share | 144 | 23 | 22 | 28 |
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 | 115 | |||
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 | 29 | 23 | 22 | 24 |
Forward Contracts [Member] | ||||
Antidilutive potential shares excluded from diluted earnings per common share: | ||||
Anti-dilutive potential shares excluded from diluted earnings per common share | 4 | |||
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 | $ 24 | $ 73 | $ 70 |
Plus: Series A convertible preferred stock dividend (1) (in Dollars) | $ 24 | $ 24 | $ 73 | $ 70 |
Effect of dilutive securities: | ||||
Effect of dilutive securities | 115 | 115 | 109 | |
Stock Options and Other Dilutive Securities [Member] | ||||
Effect of dilutive securities: | ||||
Effect of dilutive securities | 8 | 12 | 10 | 12 |
Note 6 - Available-for-Sale I44
Note 6 - Available-for-Sale Investments (Details) - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | ||
Investments, Debt and Equity Securities [Abstract] | |||
Available-for-sale Securities, Debt Maturities, after Ten Years, Fair Value | [1] | $ 35 | |
Proceeds from Sale of Short-term Investments | $ 1,046 | $ 954 | |
[1] | Includes $35 million of asset-based securities that mature over time and are being reported at their final maturity dates. |
Note 6 - Available-for-Sale I45
Note 6 - Available-for-Sale Investments (Details) - Summary of Fair Value of Available-for-Sale Investments - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
US Government Agencies Debt Securities [Member] | ||
Bonds, notes and other securities: | ||
Amortized cost | $ 573 | $ 759 |
Fair value | 573 | 759 |
Total Short-Term Investments [Member] | ||
Bonds, notes and other securities: | ||
Amortized cost | 573 | 759 |
Fair value | 573 | 759 |
Asset-backed Securities [Member] | ||
Bonds, notes and other securities: | ||
Amortized cost | 39 | 42 |
Fair value | 35 | 38 |
Total Long-Term Investments [Member] | ||
Bonds, notes and other securities: | ||
Amortized cost | 39 | 42 |
Fair value | $ 35 | $ 38 |
Note 6 - Available-for-Sale I46
Note 6 - Available-for-Sale Investments (Details) - Summary of Maturities of Available-for-Sale Securities $ in Millions | Sep. 30, 2015USD ($) | |
Summary of Maturities of Available-for-Sale Securities [Abstract] | ||
Less than one year | $ 545 | |
Due in 1-5 years | 28 | |
Due in 5-10 years | ||
Due after 10 years (1) | 35 | [1] |
Total | $ 608 | |
[1] | Includes $35 million of asset-based securities that mature over time and are being reported at their final maturity dates. |
Note 7 - Inventories, Net of 47
Note 7 - Inventories, Net of Inventory Reserves (Details) - Inventories, Net - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Inventories, Net [Abstract] | ||
Finished goods | $ 583 | $ 486 |
Work in process | 257 | 255 |
Raw materials and accessories | 246 | 302 |
Supplies and packing materials | 288 | 279 |
Total inventories, net of inventory reserves | $ 1,374 | $ 1,322 |
Note 8 - Investments (Details)
Note 8 - Investments (Details) - Dow Corning Corporation [Member] - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Mar. 31, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Note 8 - Investments (Details) [Line Items] | |||||
Research and Development Expense | $ 54 | $ 70 | $ 179 | $ 207 | |
Equity Method Investment, Summarized Financial Information, Derivative, Loss on Derivative | $ 56 | 24 | $ 98 | ||
Gain (Loss) on Contract Termination | $ 178 | ||||
Equity Method Investment, Summarized Financial Information, Derivative, Gain on Derivative | $ 90 | ||||
Foreign Tax Credit [Member] | |||||
Note 8 - Investments (Details) [Line Items] | |||||
Equity Method Investment, Summarized Financial Information, Tax Credit | $ 82 |
Note 8 - Investments (Details)
Note 8 - Investments (Details) - Results of Operations - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | ||
Statement of Operations: | |||||
Corning’s equity in earnings of Dow Corning | $ 39 | $ 95 | $ 195 | $ 243 | |
Dow Corning Corporation [Member] | |||||
Statement of Operations: | |||||
Net sales | 1,389 | 1,520 | 4,177 | 4,545 | |
Gross profit (1) | [1] | 336 | 351 | 1,058 | 1,071 |
Net income attributable to Dow Corning | 72 | 176 | 370 | 476 | |
Corning’s equity in earnings of Dow Corning | $ 36 | $ 88 | $ 185 | $ 234 | |
[1] | Gross profit for the three and nine months ended September 30, 2015 includes research and development costs of $54 million and $179 million (2014: $70 million and $207 million). |
Note 9 - Acquisitions (Details)
Note 9 - Acquisitions (Details) $ in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended |
Mar. 31, 2015USD ($) | Sep. 30, 2015USD ($) | Sep. 30, 2015USD ($) | |
Note 9 - Acquisitions (Details) [Line Items] | |||
Number of Businesses Acquired | 4 | ||
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Liability | $ 3 | ||
Selling, General and Administrative Expenses [Member] | |||
Note 9 - Acquisitions (Details) [Line Items] | |||
Business Combination, Acquisition Related Costs | $ 9 | ||
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 | $ 10 | $ 10 |
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 |
Note 9 - Acquisitions (Detail51
Note 9 - Acquisitions (Details) - Recognized Amounts of Identified Assets Acquired and Liabilities Assumed - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2015 | Dec. 31, 2014 | ||
Note 9 - Acquisitions (Details) - Recognized Amounts of Identified Assets Acquired and Liabilities Assumed [Line Items] | |||
Goodwill (1) | $ 1,330 | $ 1,150 | |
Optical Communications [Member] | |||
Note 9 - Acquisitions (Details) - Recognized Amounts of Identified Assets Acquired and Liabilities Assumed [Line Items] | |||
Goodwill (1) | 441 | $ 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 | 242 | ||
Other current and non-current assets | 22 | ||
Current and non-current liabilities | (59) | ||
Total identified net assets | 321 | ||
Purchase consideration | (534) | ||
Four Acquisitions [Member] | Optical Communications [Member] | |||
Note 9 - Acquisitions (Details) - Recognized Amounts of Identified Assets Acquired and Liabilities Assumed [Line Items] | |||
Goodwill (1) | [1] | $ 213 | |
[1] | The goodwill was allocated to the Optical Communications segment. |
Note 10 - Goodwill and Other 52
Note 10 - Goodwill and Other Intangible Assets (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Note 10 - Goodwill and Other Intangible Assets (Details) [Line Items] | |||||
Goodwill, Gross | $ 7,800 | $ 7,800 | $ 7,600 | ||
Finite-lived Intangible Assets Acquired | 242 | ||||
Amortization of Intangible Assets | 12 | $ 9 | 40 | $ 25 | |
Finite-Lived Intangible Assets, Translation Adjustments | 20 | ||||
Finite-Lived Intangible Assets, Amortization Expense, Remainder of Fiscal Year | 57 | 57 | |||
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 56 | 56 | |||
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 56 | 56 | |||
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 56 | 56 | |||
Finite-Lived Intangible Assets, Amortization Expense, Year Five | 56 | 56 | |||
Finite-Lived Intangible Assets, Amortization Expense, after Year Five | 51 | 51 | |||
Optical Communications [Member] | |||||
Note 10 - Goodwill and Other Intangible Assets (Details) [Line Items] | |||||
Goodwill, Impaired, Accumulated Impairment Loss | $ 6,500 | $ 6,500 | $ 6,500 |
Note 10 - Goodwill and Other 53
Note 10 - Goodwill and Other Intangible Assets (Details) - Carrying Amount of Goodwill by Segment $ in Millions | 9 Months Ended | |
Sep. 30, 2015USD ($) | ||
Goodwill [Line Items] | ||
Balance at December 31, 2014 | $ 1,150 | |
Acquired goodwill (1) | 220 | [1] |
Measurement period adjustments | (7) | |
Foreign currency translation adjustment | (33) | |
Balance at September 30, 2015 | 1,330 | |
Optical Communications [Member] | ||
Goodwill [Line Items] | ||
Balance at December 31, 2014 | 238 | |
Acquired goodwill (1) | 220 | [1] |
Measurement period adjustments | (7) | |
Foreign currency translation adjustment | (10) | |
Balance at September 30, 2015 | 441 | |
Display Technologies [Member] | ||
Goodwill [Line Items] | ||
Balance at December 31, 2014 | 134 | |
Foreign currency translation adjustment | (7) | |
Balance at September 30, 2015 | 127 | |
Specialty Materials [Member] | ||
Goodwill [Line Items] | ||
Balance at December 31, 2014 | 198 | |
Foreign currency translation adjustment | (3) | |
Balance at September 30, 2015 | 195 | |
Life Sciences [Member] | ||
Goodwill [Line Items] | ||
Balance at December 31, 2014 | 580 | |
Foreign currency translation adjustment | (13) | |
Balance at September 30, 2015 | $ 567 | |
[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 10 - Goodwill and Other 54
Note 10 - Goodwill and Other Intangible Assets (Details) - Other Intangible Assets - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Amortized intangible assets: | ||
Other intangible assets, gross | $ 932 | $ 713 |
Other intangible assets, accumulated amortization | 254 | 216 |
Other intangible assets, net | 678 | 497 |
Patents, Trademarks, and Trade Names [Member] | ||
Amortized intangible assets: | ||
Other intangible assets, gross | 353 | 302 |
Other intangible assets, accumulated amortization | 159 | 149 |
Other intangible assets, net | 194 | 153 |
Customer Lists and Other [Member] | ||
Amortized intangible assets: | ||
Other intangible assets, gross | 579 | 411 |
Other intangible assets, accumulated amortization | 95 | 67 |
Other intangible assets, net | $ 484 | $ 344 |
Note 11 - Employee Retirement55
Note 11 - Employee Retirement Plans (Details) - Summary of Net Periodic Benefit Cost - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Pension Plan [Member] | ||||
Note 11 - Employee Retirement Plans (Details) - Summary of Net Periodic Benefit Cost [Line Items] | ||||
Service cost | $ 22 | $ 30 | $ 67 | $ 62 |
Interest cost | 36 | 42 | 109 | 118 |
Expected return on plan assets | (44) | (45) | (133) | (131) |
Amortization of prior service cost (credit) | 2 | 1 | 5 | 4 |
Recognition of actuarial loss | 8 | |||
Total pension and postretirement benefit expense | 16 | 28 | 56 | 53 |
Other Postretirement Benefit Plan [Member] | ||||
Note 11 - Employee Retirement Plans (Details) - Summary of Net Periodic Benefit Cost [Line Items] | ||||
Service cost | 3 | 4 | 10 | 9 |
Interest cost | 8 | 10 | 24 | 28 |
Amortization of net loss | 1 | 3 | ||
Amortization of prior service cost (credit) | (2) | (3) | (5) | (5) |
Total pension and postretirement benefit expense | $ 10 | $ 11 | $ 32 | $ 32 |
Note 12 - Hedging Activities (D
Note 12 - Hedging Activities (Details) - Not Designated as Hedging Instrument [Member] - USD ($) $ in Billions | Sep. 30, 2015 | Dec. 31, 2014 |
Gross Notional Value [Member] | Translated Earnings Contracts [Member] | ||
Note 12 - Hedging Activities (Details) [Line Items] | ||
Derivative, Notional Amount | $ 12.7 | $ 12.1 |
Gross Notional Value [Member] | Collar Options [Member] | ||
Note 12 - Hedging Activities (Details) [Line Items] | ||
Derivative, Notional Amount | 5.7 | 2.3 |
Gross Notional Value [Member] | Foreign Exchange Forward [Member] | ||
Note 12 - Hedging Activities (Details) [Line Items] | ||
Derivative, Notional Amount | 7 | 9.8 |
Net Notional Value [Member] | Collar Options [Member] | ||
Note 12 - Hedging Activities (Details) [Line Items] | ||
Derivative, Notional Amount | $ 3 | $ 1.2 |
Note 12 - Hedging Activities 57
Note 12 - Hedging Activities (Details) - Summary of Notional Amounts and Respective Fair Values of Derivative Financial Instruments - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Derivatives designated as hedging instruments | ||
Notional amount | $ 14,623 | $ 15,198 |
Asset derivatives, fair value | 1,157 | 1,535 |
Liability derivatives, fair value | (174) | (59) |
Designated as Hedging Instrument [Member] | ||
Derivatives designated as hedging instruments | ||
Asset derivatives, fair value | 1 | |
Liability derivatives, fair value | (28) | |
Designated as Hedging Instrument [Member] | Foreign Exchange Contract [Member] | ||
Derivatives designated as hedging instruments | ||
Notional amount | 803 | 487 |
Asset derivatives, fair value | 7 | 22 |
Liability derivatives, fair value | (10) | (6) |
Designated as Hedging Instrument [Member] | Interest Rate Swap [Member] | ||
Derivatives designated as hedging instruments | ||
Notional amount | 550 | 1,300 |
Asset derivatives, fair value | 2 | 1 |
Liability derivatives, fair value | (15) | |
Not Designated as Hedging Instrument [Member] | ||
Derivatives designated as hedging instruments | ||
Asset derivatives, fair value | 605 | 846 |
Liability derivatives, fair value | (72) | |
Not Designated as Hedging Instrument [Member] | Foreign Exchange Contract [Member] | ||
Derivatives designated as hedging instruments | ||
Notional amount | 592 | 1,285 |
Asset derivatives, fair value | 2 | 17 |
Liability derivatives, fair value | (5) | (5) |
Not Designated as Hedging Instrument [Member] | Translated Earnings Contracts [Member] | ||
Derivatives designated as hedging instruments | ||
Notional amount | 12,678 | 12,126 |
Asset derivatives, fair value | 540 | 649 |
Liability derivatives, fair value | $ (59) | $ (33) |
Note 12 - Hedging Activities 58
Note 12 - Hedging Activities (Details) - Effect on Consolidated Financial Statements - Cash Flow Hedging [Member] - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | ||
Note 12 - Hedging Activities (Details) - Effect on Consolidated Financial Statements [Line Items] | |||||
Gain/(loss) recognized in other comprehensive income (OCI) | $ (58) | $ 11 | $ (31) | $ 6 | |
Gain reclassified from accumulated OCI into income (effective) | [1] | 5 | 3 | 21 | 3 |
Sales [Member] | Interest Rate Hedges [Member] | |||||
Note 12 - Hedging Activities (Details) - Effect on Consolidated Financial Statements [Line Items] | |||||
Gain/(loss) recognized in other comprehensive income (OCI) | (7) | ||||
Gain reclassified from accumulated OCI into income (effective) | [1] | 4 | 1 | 14 | 1 |
Cost of Sales [Member] | Foreign Exchange Contract [Member] | |||||
Note 12 - Hedging Activities (Details) - Effect on Consolidated Financial Statements [Line Items] | |||||
Gain/(loss) recognized in other comprehensive income (OCI) | (58) | 11 | (24) | 6 | |
Gain reclassified from accumulated OCI into income (effective) | [1] | $ 1 | $ 2 | $ 7 | $ 2 |
[1] | The amount of hedge ineffectiveness at September 30, 2015 and 2014 was insignificant. |
Note 12 - Hedging Activities 59
Note 12 - Hedging Activities (Details) - Effect on Consolidated Financial Statements - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Note 12 - Hedging Activities (Details) - Effect on Consolidated Financial Statements [Line Items] | ||||
Gain (loss) recognized in income | $ 42 | $ 600 | ||
Undesignated [Member] | ||||
Note 12 - Hedging Activities (Details) - Effect on Consolidated Financial Statements [Line Items] | ||||
Gain (loss) recognized in income | $ (154) | $ 765 | 52 | 622 |
Foreign Currency Transaction and Hedge Gain (Loss), Net [Member] | Foreign Exchange Contracts, Balance Sheet [Member] | ||||
Note 12 - Hedging Activities (Details) - Effect on Consolidated Financial Statements [Line Items] | ||||
Gain (loss) recognized in income | (6) | 21 | 7 | 16 |
Foreign Currency Transaction and Hedge Gain (Loss), Net [Member] | Foreign Exchange Contracts, Loans [Member] | ||||
Note 12 - Hedging Activities (Details) - Effect on Consolidated Financial Statements [Line Items] | ||||
Gain (loss) recognized in income | 1 | 5 | 3 | 6 |
Foreign Currency Transaction and Hedge Gain (Loss), Net [Member] | Translated Earnings Contracts [Member] | ||||
Note 12 - Hedging Activities (Details) - Effect on Consolidated Financial Statements [Line Items] | ||||
Gain (loss) recognized in income | $ (149) | $ 739 | $ 42 | $ 600 |
Note 13 - Fair Value Measurem60
Note 13 - Fair Value Measurements (Details) - USD ($) | Sep. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 |
Note 13 - Fair Value Measurements (Details) [Line Items] | |||
Liabilities, Fair Value Disclosure, Nonrecurring | $ 0 | ||
Assets, Fair Value Disclosure, Nonrecurring | 0 | ||
Samsung Corning Precision Materials Co., Ltd. [Member] | |||
Note 13 - Fair Value Measurements (Details) [Line Items] | |||
Business Combination, Contingent Consideration, Asset | 445,000,000 | $ 445,000,000 | |
IBwave Solutions and Fiberoptics [Member] | |||
Note 13 - Fair Value Measurements (Details) [Line Items] | |||
Business Combination, Contingent Consideration, Liability | $ 10,000,000 | $ 13,000,000 |
Note 13 - Fair Value Measurem61
Note 13 - Fair Value Measurements (Details) - Major Categories of Financial Assets and Liabilities Measured on a Recurring Basis - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 | |
Non-current assets: | |||
Other assets | $ 1,551 | $ 1,722 | |
Current liabilities: | |||
Other accrued liabilities (1) | 956 | 1,291 | |
Non-current liabilities: | |||
Other liabilities (1)(3) | 2,165 | 2,046 | |
Current Assets [Member] | |||
Current assets: | |||
Short-term investments | 573 | 759 | |
Other current assets | [1] | 549 | 687 |
Non Current Assets [Member] | |||
Non-current assets: | |||
Other assets | [1],[2] | 1,088 | 1,330 |
Current Liabilities [Member] | |||
Current liabilities: | |||
Other liabilities | [1] | 44 | |
Current liabilities: | |||
Other accrued liabilities (1) | [1],[3] | 74 | |
Non Current Liabilities [Member] | |||
Current liabilities: | |||
Other liabilities | [1] | 15 | |
Non-current liabilities: | |||
Other liabilities (1)(3) | [1],[3] | 110 | |
Fair Value, Inputs, Level 1 [Member] | Current Assets [Member] | |||
Current assets: | |||
Short-term investments | 513 | 759 | |
Fair Value, Inputs, Level 2 [Member] | Current Assets [Member] | |||
Current assets: | |||
Short-term investments | 60 | ||
Other current assets | [1] | 549 | 687 |
Fair Value, Inputs, Level 2 [Member] | Non Current Assets [Member] | |||
Non-current assets: | |||
Other assets | [1],[2] | 643 | 885 |
Fair Value, Inputs, Level 2 [Member] | Current Liabilities [Member] | |||
Current liabilities: | |||
Other liabilities | [1] | 44 | |
Current liabilities: | |||
Other accrued liabilities (1) | [1],[3] | 74 | |
Fair Value, Inputs, Level 2 [Member] | Non Current Liabilities [Member] | |||
Current liabilities: | |||
Other liabilities | [1] | 15 | |
Non-current liabilities: | |||
Other liabilities (1)(3) | [1],[3] | 100 | |
Fair Value, Inputs, Level 3 [Member] | Non Current Assets [Member] | |||
Non-current assets: | |||
Other assets | [1],[2] | 445 | $ 445 |
Fair Value, Inputs, Level 3 [Member] | Non Current Liabilities [Member] | |||
Non-current liabilities: | |||
Other liabilities (1)(3) | [1],[3] | $ 10 | |
[1] | Derivative assets and liabilities include foreign exchange forward and zero-cost 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 liabilities include Level 3 contingent consideration payables which are measured by applying an option pricing model using projected future revenues. |
Note 14 - Shareholders' Equit62
Note 14 - Shareholders' Equity (Details) - USD ($) $ / shares in Units, $ in Millions | Jan. 15, 2014 | Sep. 30, 2015 | Mar. 31, 2014 | Sep. 30, 2015 | Jul. 15, 2015 | Dec. 31, 2014 | Dec. 03, 2014 |
Note 14 - Shareholders' Equity (Details) [Line Items] | |||||||
Preferred Stock, Par or Stated Value Per Share (in Dollars per share) | $ 100 | $ 100 | $ 100 | ||||
Treasury Stock, Shares, Acquired (in Shares) | 46,500,000 | 97,000,000 | |||||
Treasury Stock, Value, Acquired, Cost Method | $ 827 | $ 1,955 | |||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Reclassification Adjustment from AOCI, Realized upon Sale or Liquidation, before Tax | $ 136 | ||||||
Dec. 3, 2014 [Member] | |||||||
Note 14 - Shareholders' Equity (Details) [Line Items] | |||||||
Stock Repurchase Program, Authorized Amount | $ 1,500 | ||||||
July 15, 2015 [Member] | |||||||
Note 14 - Shareholders' Equity (Details) [Line Items] | |||||||
Stock Repurchase Program, Authorized Amount | $ 2,000 | ||||||
Common Stock [Member] | |||||||
Note 14 - Shareholders' Equity (Details) [Line Items] | |||||||
Convertible Preferred Stock, Shares Issued upon Conversion (in Shares) | 50,000 | ||||||
Convertible Preferred Stock, Series A [Member] | |||||||
Note 14 - Shareholders' Equity (Details) [Line Items] | |||||||
Preferred Stock, Par or Stated Value Per Share (in Dollars per share) | $ 100 | ||||||
Samsung Corning Precision Materials Co., Ltd. [Member] | Convertible Preferred Stock, Series A [Member] | |||||||
Note 14 - Shareholders' Equity (Details) [Line Items] | |||||||
Stock Issued During Period, Shares, Acquisitions (in Shares) | 2,300 | 1,900 | |||||
Share Price (in Dollars per share) | $ 1,000,000 | ||||||
Stock Issued During Period, Value, Acquisitions | $ 2,300 |
Note 14 - Shareholders' Equit63
Note 14 - Shareholders' Equity (Details) - Accumulated Other Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Note 14 - Shareholders' Equity (Details) - Accumulated Other Comprehensive Income [Line Items] | ||||
Beginning balance | $ (1,307) | |||
Ending balance | $ (1,803) | (1,803) | ||
Accumulated Foreign Currency Adjustment Attributable to Parent [Member] | ||||
Note 14 - Shareholders' Equity (Details) - Accumulated Other Comprehensive Income [Line Items] | ||||
Beginning balance | (877) | $ 629 | (581) | $ 492 |
Other comprehensive loss | (163) | (600) | (399) | (313) |
Equity method affiliates | (18) | (76) | (78) | (226) |
Net current-period other comprehensive loss | (181) | (676) | (477) | (539) |
Ending balance | $ (1,058) | $ (47) | $ (1,058) | $ (47) |
Note 15 - Share-based Compens64
Note 15 - Share-based Compensation (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Note 15 - Share-based Compensation (Details) [Line Items] | ||||
Allocated Share-based Compensation Expense | $ 11 | $ 19 | $ 36 | $ 47 |
Proceeds from Stock Options Exercised | 99 | 98 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value | $ 46 | 60 | ||
Years of Historical Volatility Included in Most Recent Volatility | 15 years | |||
Employee Stock Option [Member] | ||||
Note 15 - Share-based Compensation (Details) [Line Items] | ||||
Allocated Share-based Compensation Expense | 2 | 9 | $ 13 | 20 |
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 10 years | |||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | 9 | $ 9 | ||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 1 year 292 days | |||
Proceeds from Stock Options Exercised | $ 99 | 98 | ||
Restricted Stock [Member] | ||||
Note 15 - Share-based Compensation (Details) [Line Items] | ||||
Allocated Share-based Compensation Expense | 9 | $ 10 | 23 | $ 27 |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 30 | $ 30 | ||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 1 year 328 days | |||
Minimum [Member] | ||||
Note 15 - 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 | 7 years 73 days | 7 years 73 days |
Minimum [Member] | Restricted Stock [Member] | ||||
Note 15 - 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 | |||
Maximum [Member] | ||||
Note 15 - Share-based Compensation (Details) [Line Items] | ||||
Stock Options Exercisable Period from Date of Grant | 5 years | |||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | 7 years 73 days | 7 years 73 days | 7 years 73 days | 7 years 73 days |
Maximum [Member] | Restricted Stock [Member] | ||||
Note 15 - 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 |
Note 15 - Share-based Compens65
Note 15 - Share-based Compensation (Details) - Summary of Information Concerning Stock Options Outstanding Including the Related Transactions under the Stock Option Plans $ / shares in Units, shares in Thousands, $ in Thousands | 9 Months Ended |
Sep. 30, 2015USD ($)$ / sharesshares | |
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 | $ / shares | $ 18.94 |
Granted | 1,578 |
Granted | $ / shares | $ 21.48 |
Exercised | (6,080) |
Exercised | $ / shares | $ 16.31 |
Forfeited and Expired | (247) |
Forfeited and Expired | $ / shares | $ 18.83 |
Options Outstanding as of September 30, 2015 | 43,975 |
Options Outstanding as of September 30, 2015 | $ / shares | $ 19.40 |
Options Outstanding as of September 30, 2015 | 4 years 36 days |
Options Outstanding as of September 30, 2015 | $ | $ 67,066 |
Options Expected to Vest as of September 30, 2015 | 43,923 |
Options Expected to Vest as of September 30, 2015 | $ / shares | $ 19.40 |
Options Expected to Vest as of September 30, 2015 | 4 years 32 days |
Options Expected to Vest as of September 30, 2015 | $ | $ 67,027 |
Options Exercisable as of September 30, 2015 | 36,470 |
Options Exercisable as of September 30, 2015 | $ / shares | $ 19.84 |
Options Exercisable as of September 30, 2015 | 3 years 94 days |
Options Exercisable as of September 30, 2015 | $ | $ 54,856 |
Note 15 - Share-based Compens66
Note 15 - Share-based Compensation (Details) - Inputs Used for Valuation of Option Grants under Stock Option Plans | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Minimum [Member] | ||||
Note 15 - Share-based Compensation (Details) - Inputs Used for Valuation of Option Grants under Stock Option Plans [Line Items] | ||||
Expected volatility | 44.20% | 45.70% | 44.20% | 45.70% |
Weighted-average volatility | 44.20% | 45.70% | 44.20% | 45.70% |
Expected dividends | 2.67% | 1.98% | 1.92% | 1.90% |
Risk-free rate | 2.00% | 2.00% | 1.90% | 2.00% |
Average risk-free rate | 2.00% | 2.00% | 1.90% | 2.00% |
Expected term (in years) | 7 years 73 days | 7 years 73 days | 7 years 73 days | 7 years 73 days |
Pre-vesting departure rate | 0.60% | 0.50% | 0.60% | 0.50% |
Maximum [Member] | ||||
Note 15 - Share-based Compensation (Details) - Inputs Used for Valuation of Option Grants under Stock Option Plans [Line Items] | ||||
Expected volatility | 44.20% | 45.70% | 44.90% | 46.20% |
Weighted-average volatility | 44.20% | 45.70% | 44.90% | 46.20% |
Expected dividends | 2.67% | 1.98% | 2.67% | 2.09% |
Risk-free rate | 2.00% | 2.00% | 2.00% | 2.20% |
Average risk-free rate | 2.00% | 2.00% | 2.00% | 2.20% |
Expected term (in years) | 7 years 73 days | 7 years 73 days | 7 years 73 days | 7 years 73 days |
Pre-vesting departure rate | 0.60% | 0.50% | 0.60% | 0.50% |
Note 15 - Share-based Compens67
Note 15 - 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] shares in Thousands | 9 Months Ended |
Sep. 30, 2015$ / sharesshares | |
Note 15 - 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 | $ / shares | $ 15.43 |
Granted | 1,525 |
Granted | $ / shares | $ 22.14 |
Vested | (1,836) |
Vested | $ / shares | $ 13.94 |
Forfeited | (59) |
Forfeited | $ / shares | $ 21.21 |
Non-vested shares and share units at September 30, 2015 | 5,367 |
Non-vested shares and share units at September 30, 2015 | $ / shares | $ 17.78 |
Note 16 - Reportable Segments68
Note 16 - Reportable Segments (Details) | 9 Months Ended |
Sep. 30, 2015 | |
Minimum [Member] | |
Note 16 - Reportable Segments (Details) [Line Items] | |
Number of Material Formulations | 150 |
Note 16 - Reportable Segments69
Note 16 - Reportable Segments (Details) - Reportable Segments - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | ||
Segment Reporting Information [Line Items] | |||||
Net sales | $ 2,272 | $ 2,540 | $ 6,880 | $ 7,311 | |
Depreciation | 842 | 877 | |||
Amortization of purchased intangibles | 12 | 9 | 40 | 25 | |
Research, development and engineering expenses | 181 | 199 | 561 | 605 | |
Restructuring, impairment & other charges | 51 | ||||
Equity in earnings of affiliated companies | 39 | 95 | 195 | 243 | |
Income tax (provision) benefit | (6) | (395) | (202) | (747) | |
Net income (loss) | 212 | 1,014 | 1,115 | 1,484 | |
Operating Segments [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 2,272 | 2,540 | 6,880 | 7,311 | |
Depreciation | [1] | 273 | 287 | 826 | 863 |
Amortization of purchased intangibles | 12 | 9 | 39 | 25 | |
Research, development and engineering expenses | [2] | 149 | 173 | 473 | 525 |
Restructuring, impairment & other charges | 2 | 4 | 51 | ||
Equity in earnings of affiliated companies | 1 | 1 | 4 | (1) | |
Income tax (provision) benefit | (185) | (212) | (580) | (639) | |
Net income (loss) | [3] | 389 | 533 | 1,237 | 1,208 |
Display Technologies [Member] | Operating Segments [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 757 | 1,009 | 2,354 | 2,925 | |
Depreciation | [1] | 147 | 166 | 455 | 510 |
Research, development and engineering expenses | [2] | 28 | 31 | 78 | 117 |
Restructuring, impairment & other charges | 3 | 42 | |||
Equity in earnings of affiliated companies | (3) | (3) | (8) | (16) | |
Income tax (provision) benefit | (119) | (136) | (387) | (453) | |
Net income (loss) | [3] | 255 | 387 | 852 | 878 |
Optical Communications [Member] | Operating Segments [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 747 | 698 | 2,244 | 1,977 | |
Depreciation | [1] | 41 | 38 | 122 | 111 |
Amortization of purchased intangibles | 7 | 3 | 24 | 7 | |
Research, development and engineering expenses | [2] | 33 | 35 | 101 | 106 |
Restructuring, impairment & other charges | (1) | 12 | |||
Income tax (provision) benefit | (34) | (35) | (100) | (85) | |
Net income (loss) | [3] | 70 | 68 | 204 | 156 |
Environmental Technologies [Member] | Operating Segments [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 257 | 282 | 799 | 842 | |
Depreciation | [1] | 32 | 29 | 93 | 89 |
Research, development and engineering expenses | [2] | 21 | 23 | 67 | 65 |
Equity in earnings of affiliated companies | 2 | ||||
Income tax (provision) benefit | (19) | (28) | (64) | (72) | |
Net income (loss) | [3] | 38 | 57 | 132 | 147 |
Specialty Materials [Member] | Operating Segments [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 288 | 327 | 832 | 886 | |
Depreciation | [1] | 29 | 30 | 82 | 86 |
Research, development and engineering expenses | [2] | 27 | 35 | 87 | 102 |
Restructuring, impairment & other charges | 2 | 5 | |||
Income tax (provision) benefit | (23) | (25) | (66) | (62) | |
Net income (loss) | [3] | 46 | 43 | 128 | 113 |
Life Sciences [Member] | Operating Segments [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 211 | 214 | 619 | 647 | |
Depreciation | [1] | 15 | 15 | 45 | 46 |
Amortization of purchased intangibles | 5 | 6 | 15 | 18 | |
Research, development and engineering expenses | [2] | 6 | 6 | 17 | 16 |
Income tax (provision) benefit | (9) | (9) | (26) | (26) | |
Net income (loss) | [3] | 18 | 19 | 52 | 54 |
Other Segments [Member] | Operating Segments [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 12 | 10 | 32 | 34 | |
Depreciation | [1] | 9 | 9 | 29 | 21 |
Research, development and engineering expenses | [2] | 34 | 43 | 123 | 119 |
Restructuring, impairment & other charges | (3) | (3) | |||
Equity in earnings of affiliated companies | 4 | 4 | 12 | 13 | |
Income tax (provision) benefit | 19 | 21 | 63 | 59 | |
Net income (loss) | [3] | $ (38) | $ (41) | $ (131) | $ (140) |
[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 16 - Reportable Segments70
Note 16 - Reportable Segments (Details) - Reconciliation of Reportable Segment Net Income (Loss) to Consolidated Net Income - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||
Net income | $ 212 | $ 1,014 | $ 1,115 | $ 1,484 | |
Unallocated amounts: | |||||
Net financing costs (1) | [1] | (31) | (27) | (80) | (86) |
Stock-based compensation expense | (11) | (19) | (36) | (47) | |
Exploratory research | (32) | (24) | (86) | (75) | |
Corporate contributions | (13) | (19) | (37) | (35) | |
Equity in earnings of affiliated companies, net of impairments (2) | [2] | 38 | 94 | 191 | 245 |
Asbestos settlement | 9 | (5) | 6 | (11) | |
Unrealized (loss) gain on foreign currency hedges related to translated earnings | (200) | 431 | (282) | 282 | |
Other corporate items (3) | [3] | 63 | 50 | 202 | 3 |
Reportable Segments [Member] | |||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||
Net income | 427 | 574 | 1,368 | 1,348 | |
Non Reportable Segments [Member] | |||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||
Net income | $ (38) | $ (41) | $ (131) | $ (140) | |
[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 foreign currency hedges related to translated earnings. |