Document And Entity Information
Document And Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2018 | Jan. 31, 2019 | Jun. 30, 2018 | |
Document And Entity Information | |||
Entity Registrant Name | CORNING INC /NY | ||
Entity Central Index Key | 24,741 | ||
Trading Symbol | glw | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 22 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2018 | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 786,761,073 |
Consolidated Statements of Inco
Consolidated Statements of Income (Loss) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Consolidated Statements of Income (Loss) [Abstract] | ||||
Net sales | $ 11,290 | $ 10,116 | $ 9,390 | |
Cost of sales | 6,829 | 6,096 | 5,627 | |
Gross margin | 4,461 | 4,020 | 3,763 | |
Operating expenses: | ||||
Selling, general and administrative expenses | 1,799 | 1,473 | 1,462 | |
Research, development and engineering expenses | 993 | 864 | 736 | |
Amortization of purchased intangibles | 94 | 75 | 64 | |
Restructuring, impairment and other charges | 77 | |||
Operating income | 1,575 | 1,608 | 1,424 | |
Equity in earnings of affiliated companies (Note 5) | 390 | 361 | 284 | |
Interest income | 38 | 45 | 32 | |
Interest expense | (191) | (155) | (159) | |
Translated earnings contract loss, net | (93) | (121) | (448) | |
Gain on realignment of equity investment | 2,676 | |||
Other expense, net | (216) | (81) | (117) | |
Income before income taxes | 1,503 | 1,657 | 3,692 | |
(Provision) benefit for income taxes (Note 4) | (437) | (2,154) | [1] | 3 |
Net income (loss) attributable to Corning Incorporated | $ 1,066 | $ (497) | $ 3,695 | |
Earnings (loss) per common share attributable to Corning Incorporated: | ||||
Basic (Note 16) | $ 1.19 | $ (0.66) | $ 3.53 | |
Diluted (Note 16) | 1.13 | (0.66) | 3.23 | |
Dividends declared per common share | $ 0.72 | $ 0.62 | $ 0.54 | |
[1] | In December 2017, the U.S. enacted the 2017 Tax Act which resulted in significant changes to our provision for income taxes during the fourth quarter of 2017. Refer to Note 4 (Income Taxes) to the Consolidated Financial Statements for additional information. |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Consolidated Statements of Comprehensive Income [Abstract] | ||||
Net income (loss) attributable to Corning Incorporated | $ 1,066 | $ (497) | $ 3,695 | |
Foreign currency translation adjustments and other | (185) | 746 | (104) | |
Net unrealized (loss) gain on investments | (1) | 14 | (3) | |
Unamortized gains (losses) and prior service credits (costs) for postretirement benefit plans | 19 | 30 | 241 | |
Net unrealized (loss) gain on designated hedges | (1) | 44 | 1 | |
Other comprehensive (loss) income, net of tax (Note 15) | [1] | (168) | 834 | 135 |
Comprehensive income attributable to Corning Incorporated | $ 898 | $ 337 | $ 3,830 | |
[1] | All amounts are after tax. Amounts in parentheses indicate debits to accumulated other comprehensive income. |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 2,355 | $ 4,317 |
Trade accounts receivable, net of doubtful accounts and allowances - $64 and $60 | 1,940 | 1,807 |
Inventories, net of inventory reserves - $182 and $169 (Note 3) | 2,037 | 1,712 |
Other current assets (Note 9 and 13) | 702 | 991 |
Total current assets | 7,034 | 8,827 |
Investments (Note 5) | 376 | 340 |
Property, plant and equipment, net of accumulated depreciation - $11,932 and $10,809 (Note 7) | 14,895 | 14,017 |
Goodwill, net (Note 8) | 1,936 | 1,694 |
Other intangible assets, net (Note 8) | 1,292 | 869 |
Deferred income taxes (Note 4) | 951 | 813 |
Other assets (Note 9 and 13) | 1,021 | 934 |
Total Assets | 27,505 | 27,494 |
Current liabilities: | ||
Current portion of long-term debt and short-term borrowings (Note 10) | 4 | 379 |
Accounts payable | 1,456 | 1,439 |
Other accrued liabilities (Note 9 and Note 12) | 1,851 | 1,391 |
Total current liabilities | 3,311 | 3,209 |
Long-term debt (Note 10) | 5,994 | 4,749 |
Postretirement benefits other than pensions (Note 11) | 662 | 749 |
Other liabilities (Note 9 and Note 12) | 3,652 | 3,017 |
Total liabilities | 13,619 | 11,724 |
Commitments and contingencies (Note 12) | ||
Shareholders’ equity (Note 15): | ||
Convertible preferred stock, Series A – Par value $100 per share; Shares authorized 3,100; Shares issued: 2,300 | 2,300 | 2,300 |
Common stock – Par value $0.50 per share; Shares authorized 3.8 billion; Shares issued: 1,713 million and 1,708 million | 857 | 854 |
Additional paid-in capital – common stock | 14,212 | 14,089 |
Retained earnings | 16,303 | 15,930 |
Treasury stock, at cost; Shares held: 925 million and 850 million | (18,870) | (16,633) |
Accumulated other comprehensive loss | (1,010) | (842) |
Total Corning Incorporated shareholders’ equity | 13,792 | 15,698 |
Noncontrolling interests | 94 | 72 |
Total equity | 13,886 | 15,770 |
Total Liabilities and Equity | $ 27,505 | $ 27,494 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Consolidated Balance Sheets [Abstract] | ||
Doubtful accounts and allowances | $ 64 | $ 60 |
Inventory reserves | 182 | 169 |
Accumulated depreciation | $ 11,932 | $ 10,809 |
Convertible preferred stock, par value (in dollars per share) | $ 100 | $ 100 |
Convertible preferred stock, shares authorized (in shares) | 3,100 | 3,100 |
Convertible preferred stock, shares issued (in shares) | 2,300 | 2,300 |
Common stock, par value (in dollars per share) | $ 0.50 | $ 0.50 |
Common stock, shares authorized (in shares) | 3,800,000,000 | 3,800,000,000 |
Common stock, shares issued (in shares) | 1,713,000,000 | 1,708,000,000 |
Treasury stock, shares held (in shares) | 925,000,000 | 850,000,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Cash Flows from Operating Activities: | |||
Net income (loss) | $ 1,066 | $ (497) | $ 3,695 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Depreciation | 1,199 | 1,083 | 1,131 |
Amortization of purchased intangibles | 94 | 75 | 64 |
Restructuring, impairment and other charges | 77 | ||
Equity in earnings of affiliated companies | (390) | (361) | (284) |
Dividends received from affiliated companies | 241 | 201 | 85 |
Deferred tax (benefit) provision | (38) | 1,796 | (308) |
Customer incentives and deposits, net | 700 | 100 | 185 |
Translated earnings contract loss, net | 93 | 121 | 448 |
Unrealized translation loss (gain) on transactions | 55 | (339) | 1 |
Gain on realignment of equity investment | (2,676) | ||
Changes in certain working capital items: | |||
Trade accounts receivable | (154) | (225) | (106) |
Inventories | (346) | (170) | (68) |
Other current assets | (20) | (172) | 18 |
Accounts payable and other current liabilities | 358 | 169 | 259 |
Other, net | 61 | 223 | 16 |
Net cash provided by operating activities | 2,919 | 2,004 | 2,537 |
Cash Flows from Investing Activities: | |||
Capital expenditures | (2,242) | (1,804) | (1,130) |
Acquisitions of businesses, net of cash received | (842) | (171) | (333) |
Proceeds from settlement of initial contingent consideration asset | 196 | ||
Proceeds from sale of a business | 14 | ||
Cash received on realignment of equity investment | 4,818 | ||
Purchase of equipment for related party | (68) | ||
Short-term investments – acquisitions | (20) | ||
Short-term investments – liquidations | 29 | 121 | |
Realized gains on translated earnings contracts | 108 | 270 | 201 |
Other, net | (39) | (48) | 5 |
Net cash (used in) provided by investing activities | (2,887) | (1,710) | 3,662 |
Cash Flows from Financing Activities: | |||
Net repayments of short-term borrowings and current portion of long-term debt | (629) | (252) | (85) |
Proceeds from issuance of long-term debt | 1,485 | 1,445 | |
Payments from issuance of commercial paper | (481) | ||
Payments of employee withholding tax on stock award | (14) | (16) | (16) |
Proceeds from the exercise of stock options | 81 | 309 | 138 |
Repurchases of common stock for treasury | (2,227) | (2,452) | (4,227) |
Dividends paid | (685) | (651) | (645) |
Other, net | (6) | (7) | (6) |
Net cash used in financing activities | (1,995) | (1,624) | (5,322) |
Effect of exchange rates on cash | 1 | 356 | (86) |
Net (decrease) increase in cash and cash equivalents | (1,962) | (974) | 791 |
Cash and cash equivalents at beginning of year | 4,317 | 5,291 | 4,500 |
Cash and cash equivalents at end of year | $ 2,355 | $ 4,317 | $ 5,291 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity - USD ($) $ in Millions | Convertible Preferred Stock [Member] | Common Stock [Member] | Additional Paid-in Capital Common [Member] | Retained Earnings [Member] | Treasury Stock [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Parent [Member] | Non-controlling Interests [Member] | Total | |
Balance at Dec. 31, 2015 | $ 2,300 | $ 840 | $ 13,352 | $ 13,832 | $ (9,725) | $ (1,811) | $ 18,788 | $ 75 | $ 18,863 | |
Net (loss) income | 3,695 | 3,695 | 10 | 3,705 | ||||||
Other comprehensive income (loss) | 135 | 135 | (6) | 129 | ||||||
Purchase of common stock for treasury | 165 | (4,409) | (4,244) | (4,244) | ||||||
Shares issued to benefit plans and for option exercises | 6 | 178 | (2) | 182 | 182 | |||||
Dividends on shares | (647) | (647) | (647) | |||||||
Other, net | (16) | (16) | (12) | (28) | ||||||
Balance at Dec. 31, 2016 | 2,300 | 846 | 13,695 | 16,880 | (14,152) | (1,676) | 17,893 | 67 | 17,960 | |
Net (loss) income | (497) | (497) | 18 | (479) | ||||||
Other comprehensive income (loss) | 834 | 834 | 6 | 840 | ||||||
Purchase of common stock for treasury | 14 | (2,462) | (2,448) | (2,448) | ||||||
Shares issued to benefit plans and for option exercises | 8 | 349 | (2) | 355 | 355 | |||||
Dividends on shares | (654) | (654) | (654) | |||||||
Other, net | Accounting Standards Update 2016-09 [Member] | 233 | |||||||||
Other, net | [1] | 31 | 201 | (17) | 215 | (19) | 196 | |||
Balance at Dec. 31, 2017 | 2,300 | 854 | 14,089 | 15,930 | (16,633) | (842) | 15,698 | 72 | 15,770 | |
Net (loss) income | 1,066 | 1,066 | 24 | 1,090 | ||||||
Other comprehensive income (loss) | (168) | (168) | (1) | (169) | ||||||
Purchase of common stock for treasury | (2,230) | (2,230) | (2,230) | |||||||
Shares issued to benefit plans and for option exercises | 3 | 123 | 126 | 126 | ||||||
Dividends on shares | (688) | (688) | (688) | |||||||
Other, net | (5) | (7) | (12) | (1) | (13) | |||||
Balance at Dec. 31, 2018 | $ 2,300 | $ 857 | $ 14,212 | $ 16,303 | $ (18,870) | $ (1,010) | $ 13,792 | $ 94 | $ 13,886 | |
[1] | Adjustment to retained earnings includes the cumulative effect of the accounting change we recorded upon adoption of ASU 2016-09 in 2017 in the amount of $233 million. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2018 | |
Summary of Significant Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 1. Summary of Signif icant Accounting Policies Organization Corning Incorporated is a provider of high-performance glass for notebook computers, flat panel desktop monitors, display televisions, and other information display applications; carrier network and enterprise network products for the telecommunications industry; ceramic substrates for gasoline and diesel engines in automotive and heavy duty vehicle markets; laboratory products for the scientific community and specialized polymer products for biotechnology applications; advanced optical materials for the semiconductor industry and the scientific community; and other technologies. In these notes, the terms “Corning,” “Company,” “we,” “us,” or “our” mean Corning Incorporated and subsidiary companies. Basis of Presentation and Principles of Consolidation Our consolidated financial statements were prepared in conformity with generally accepted accounting principles in the U.S. and include the assets, liabilities, revenues and expenses of all majority-owned subsidiaries over which Corning exercises control. The equity method of accounting is used for investments in affiliated companies that are not controlled by Corning and in which our interest is generally between 20% and 50% and we have significant influence over the entity. Our share of earnings or losses of affiliated companies, in which at least 20% of the voting securities is owned and we have significant influence but not control over the entity, is included in consolidated operating results. For our investments in companies that we do not control and for which we do not have the ability to exercise significant influence over operating and financial policies, we use the fair value method to account for the investments if readily determinable fair values are available. For the investments without readily determinable fair values, we measure them at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment. All material intercompany accounts, transactions and profits are eliminated in consolidation. On January 1, 2018, we adopted Accounting Standards Update (“ASU”) No. 2014-09 ASC (Topic 606), Revenue from Contracts with Customers, and applied the modified retrospective method of accounting to those contracts which were not completed as of January 1, 2018. Results for reporting periods beginning after January 1, 2018 are presented under Topic 606, while prior period amounts are not adjusted and continue to be reported in accordance with our historic accounting under ASC Topic 605 “Revenue Recognition”. Because the impact of adopting the standard on Corning’s financial statements was immaterial, we have not made an adjustment to opening retained earnings. One of Corning’s equity affiliates is currently assessing the potential impact of adopting ASU 2014-09 on its financial statements and will adopt the standard on January 1, 2019. The current assessment indicates that the impact of adoption to Corning’s financial statements will be an adjustment to 2019 beginning retained earnings of approximately $2 3 0 million relating to timing of revenue recognition for open performance obligations as measured at January 1, 2019 under the new standard. On January 1, 2018, Corning adopted ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments, which refines the classification of certain aspects of the cash flow statement in regards to debt prepayment, settlement of debt instruments, contingent consideration payments, proceeds from insurance claims and life insurance policies, distribution from equity method investees, beneficial interests in securitization transactions and separately identifiable cash flows. The impact of adopting the standard on Corning’s financial statements was not material. 1. Summary of Significant Accounting Policies (continued) On January 1, 2018, we adopted ASU No. 2017-07, Compensation—Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost. The service cost component of net periodic pension and postretirement benefit cost is presented with other current compensation costs in operating income. The remaining components are included in the line item Other expense, net, in the consolidated statements of income (loss). Corning has applied the practical expedient which permits it to use the amounts disclosed in its pension and other postretirement benefit plan note for the prior comparative periods as the estimation basis for applying the retrospective presentation requirements . The impact of adopting the standard on Corning’s financial statements was not material. Certain prior year amounts have been reclassified to conform to the current year ’s presentation. These reclassifications had no impact on our results of operations, financial position, or changes in shareholders’ equity. Dow Corning Prior to May 31, 2016, Corning and Dow Chemical each owned half of Dow Corning, an equity company headquartered in Michigan that manufactures silicone products worldwide. Dow Corning was the majority-owner of HSG, a market leader in the production of high purity polycrystalline silicon for the semiconductor and solar energy industries. On May 31, 2016, Corning completed the strategic realignment of its equity investment in Dow Corning pursuant to the Transaction Agreement announced in December 2015. Under the terms of the Transaction Agreement, Corning exchanged with Dow Corning its 50% stock interest in Dow Corning for 100% of the stock of a newly formed entity, which held an equity interest in HSG and approximately $4.8 billion in cash. Prior to realignment, HSG, a consolidated subsidiary of Dow Corning, was an indirect equity investment of Corning. Upon completion of the exchange, Corning now has a direct equity investment in HSG. Refer to Note 5 (Investments) to the Consolidated Financial Statements for additional information. Use of Estimates The preparation of financial statements requires management to make estimates and assumptions that affect amounts reported in the consolidated financial statements and related notes. Significant estimates and assumptions in these consolidated financial statements include estimates associated with revenue recognition, restructuring charges, goodwill and long-lived asset impairment tests, estimates of acquired assets and liabilities, estimates of fair value of investments, equity interests, environmental and legal liabilities, income taxes and deferred tax valuation allowances, assumptions used in calculating pension and other postretirement employee benefit expenses and the fair value of share-based compensation. Due to the inherent uncertainty involved in making estimates, actual results reported in future periods may be different from these estimates. Revenue Recognition The majority of our revenues are generated by delivery of products to our customers and recognized at a point in time based on our evaluation of when the customer obtains control of the products. Revenue is recognized when all performance obligations under the terms of a contract with our customer are satisfied, and control of the product has been transferred to the customer. If customer acceptance clauses are present and it cannot be objectively determined that control has been transferred, revenue is only recorded when customer acceptance is received and all performance obligations have been satisfied. Sales of goods typically do not include multiple product and/or service elements. Revenue is measured as the amount of consideration we expect to receive in exchange for transferring goods or providing services. Sales tax, value-added tax, and other taxes we collect concurrent with revenue-producing activities are excluded from revenue. Incidental contract costs that are not material in the context of the delivery of goods and services are recognized as expense. 1. Summary of Significant Accounting Policies (continued) At the time revenue is recognized, allowances are recorded, with the related reduction to revenue, for estimated product returns, allowances and price discounts based upon historical experience and related terms of customer arrangements. Where we have offered product warranties, we also establish liabilities for estimated warranty costs based upon historical experience and specific warranty provisions. Warranty liabilities are adjusted when experience indicates the expected outcome will differ from initial estimates of the liability. In addition, Corning also has contractual arrangements with certain customers in which we recognize revenue over time. The performance obligations under these contracts generally require services to be performed over time, resulting in either a straight-line amortization method or an input method using incurred and forecasted expense to predict revenue recognition patterns which follows satisfaction of the performance obligation. Research and Development Costs Research and development costs are charged to expense as incurred. Research and development costs totaled $807 million in 2018, $689 million in 2017 and $637 million in 2016 . Foreign Currency Translation and Transactions The determination of the functional currency for Corning’s foreign subsidiaries is made based on the appropriate economic factors. For most foreign operations, the local currencies are generally considered to be the functional currencies. Corning’s most significant exception is our Taiwanese subsidiary, which uses the Japanese yen as its functional currency. For all transactions denominated in a currency other than a subsidiary’s functional currency, exchange rate gains and losses are included in income for the period in which the exchange rates changed. We recorded a net loss of $43 million and a net gain of $20 million for foreign currency transaction activity for the years ended December 31, 2018 and 2017, respectively. These amounts were recorded in the line item Other expense, net in the Consolidated Statements of Income (Loss). Foreign subsidiary functional currency balance sheet accounts are translated at current exchange rates, and statement of operations accounts are translated at average exchange rates for the year. Translation gains and losses are recorded as a separate component of accumulated other comprehensive income in shareholders’ equity. The effects of remeasuring non-functional currency assets and liabilities into the functional currency are included in current earnings, except for those related to intra-entity foreign currency transactions of a long-term investment nature, which are recorded together with translation gains and losses in accumulated other comprehensive loss in shareholders’ equity. Upon sale or substantially complete liquidation of an investment in a foreign entity, the amount of net translation gains or losses that have been accumulated in other comprehensive income attributable to that investment are reported as a gain or loss for the period in which the sale or liquidation occurs. Share-Based Compensation Corning maintains long-term incentive plans (the “Plans”) for key employees and non-employee members of our Board of Directors. The Plans allow us to grant equity-based compensation awards, including stock options, stock appreciation rights, performance share units, restricted stock units, restricted stock awards or a combination of awards (collectively, share-based awards). At December 31, 2018, there were approximately 62 million unissued common shares available for future grants authorized under the Plans. The Company measures and recognizes compensation cost for all share-based payment awards made to employees and directors based on estimated fair values. 1. Summary of Significant Accounting Policies (continued) Total share-based compensation expense was $51 million, $46 million and $42 million for the years ended December 31, 2018, 2017 and 2016, respectively. The income tax benefit realized from share-based compensation was not significant for the years ended December 31, 2018, 2017 and 2016. Refer to Note 4 (Income Taxes) to the Consolidated Financial Statements for additional information. Stock Options Corning’s stock option plans provide non-qualified and incentive stock options to purchase authorized but unissued common 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. An award is considered vested when the employee’s retention of the award is no longer contingent on providing subsequent service (the “non-substantive vesting period approach”). Awards to retirement eligible employees are fully vested at the date of grant, and the related compensation expense is recognized immediately upon grant or over the period from the grant date to the date of retirement eligibility for employees that become age 55 during the vesting period. Corning uses a multiple-point Black-Scholes valuation model to estimate the fair value of stock option grants. Corning utilizes a blended approach for calculating the volatility assumption used in the multiple-point Black-Scholes valuation model 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 rates used in the multiple-point Black-Scholes valuation model are the implied rates for a zero-coupon U.S. Treasury bond with a term equal to the option’s expected term. The ranges given below reflect results from separate groups of employees exhibiting different exercise behavior. The following inputs were used for the valuat ion of option grants under our stock option p lans: 2018 2017 2016 Expected volatility 30.6 - 31.4 % 32.4 - 36.1 % 37.1 - 43.1 % Weighted-average volatility 31.4% 36.1% 41.0% Expected dividends 2.22 - 2.66 % 1.98 - 2.28 % 2.28 - 2.94 % Risk-free rate 2.7 - 3.1 % 2.1 - 2.3 % 1.4 - 2.1 % Expected term (in years) 7.4 - 7.4 7.4 - 7.4 7.4 - 7.4 Pre-vesting departure rate 0.6 - 0.6 % 0.6 - 0.6 % 0.6 - 0.6 % 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. Cash and Cash Equivalents Cash equivalents consist of highly liquid investments that are readily convertible into cash. We consider securities with contractual maturities of three months or less, when purchased, to be cash equivalents. The carrying amount of these securities approximates fair value because of the short-term maturity of these instruments. 1. Summary of Significant Accounting Policies (continued) Supplemental disclosure of cash flow information follows (in millions): Years ended December 31, 2018 2017 2016 Non-cash transactions: Accruals for capital expenditures $ 412 $ 584 $ 381 Cash paid for interest and income taxes: Interest (1) $ 205 $ 178 $ 184 Income taxes, net of refunds received $ 567 $ 405 $ 293 (1) Included in this amount are approximately $49 million, $36 million, and $23 million of interest costs that were capitalized as part of property, plant and equipment , net of accumulated depreciation, in 201 8, 201 7 and 201 6, respectively . Allowance for Doubtful Accounts The Company’s allowance for doubtful accounts is determined based on a variety of factors that affect the potential collectability of the related receivables, including length of time receivables are past due, customer credit ratings, financial stability of customers, specific one-time events and past customer history. In addition, in circumstances where the Company is made aware of a specific customer’s inability to meet its financial obligations, a specific allowance is established. The majority of accounts are individually evaluated on a regular basis and appropriate reserves are established as deemed appropriate based on the above criteria. Environmental Liabilities The Company accrues for its environmental investigation, remediation, operating and maintenance costs when it is probable that a liability has been incurred and the amount can be reasonably estimated. For environmental matters, the most likely cost to be incurred is accrued based on an evaluation of currently available facts with respect to each individual site, current laws and regulations and prior remediation experience. For sites with multiple potentially responsible parties, the Company considers its likely proportionate share of the anticipated remediation costs and the ability of the other parties to fulfill obligations in establishing a provision for those costs. Where no amount within a range of estimates is more likely to occur than another, the minimum amount is accrued. When future liabilities are determined to be reimbursable by insurance coverage, an accrual is recorded for the potential liability and a receivable is recorded related to the insurance reimbursement when reimbursement is virtually certain. The uncertain nature inherent in such remediation and the possibility that initial estimates may not reflect the outcome could result in additional costs being recognized by the Company in future periods. Inventories Inventories are stated at the lower of cost (first-in, first-out basis) or market. Property, Plant and Equipment, Net of Accumulated Depreciation Land, buildings, and equipment, including precious metals, are recorded at cost. Depreciation is based on estimated useful lives of properties using the straight-line method. Except as described in Note 7 (Property, Plant and Equipment, Net of Accumulated Depreciation) to the Consolidated Financial Statements related to the depletion of precious metals, the estimated useful lives range from 10 to 40 years for buildings and 2 to 20 years for equipment. 1. Summary of Significant Accounting Policies (continued) Included in the subcategory of equipment are the following types of assets (excluding precious metals): Asset type Range of useful life Computer hardware and software 3 to 7 years Manufacturing equipment 2 to 15 years Furniture and fixtures 5 to 10 years Transportation equipment 3 to 20 years Manufacturing equipment includes certain components of production equipment that are constructed of precious metals. These assets are not depreciated because they have very low physical losses and are repeatedly reclaimed and reused in our manufacturing process over a very long useful life. We treat the physical loss of precious metals in the manufacturing and reclamation process as depletion and account for these losses as a period expense based on actual units lost. Precious metals are integral to many of our glass production processes. They are only acquired to support our operations and are not held for trading or other purposes. Goodwill and Other Intangible Assets Goodwill is the excess of cost of an acquired entity over the amounts assigned to assets acquired and liabilities assumed in a business combination. Goodwill relates to and is assigned directly to a specific reporting unit. Reporting units are either operating segments or one level below the operating segment. Impairment testing for goodwill is done at a reporting unit level. Goodwill is reviewed for indicators of impairment quarterly or if an event occurs or circumstances change that indicate that the carrying amount may be impaired. Corning also performs a detailed quantitative impairment test every three years if no indicators suggest a test should be performed in the interim. We use this calculation as quantitative validation of the qualitative process; this process does not represent an election to perform the quantitative impairment test in place of the qualitative review. The qualitative process includes an extensive review of expectations for the long-term growth of our businesses and forecasting future cash flows. If we are required to perform the quantitative impairment analysis, our valuation method is an “income approach” using a discounted cash flow model in which cash flows anticipated over several periods, plus a terminal value at the end of that time horizon, are discounted to present value using an appropriate rate of return. Our estimates are based upon our historical experience, our current knowledge from our commercial relationships, and available external information about future trends. If the fair value is less than the carrying value, a loss is recorded to reflect the difference between the fair value and carrying value. Other intangible assets include patents, trademarks, and other intangible assets acquired from an independent party. Such intangible assets have a definite life and are amortized on a straight-line basis over estimated useful lives ranging from 4 to 50 years. Impairment of Long-Lived Assets We review the recoverability of our long-lived assets, such as plant and equipment and intangible assets, when events or changes in circumstances occur that indicate the carrying value of the asset or asset group may not be recoverable. When impairment indicators are present, we compare estimated undiscounted future cash flows, including the eventual disposition of the asset group at market value, to the assets’ carrying value to determine if the asset group is recoverable. For an asset group that fails the test of recoverability, the estimated fair value of long-lived assets is determined using an “income approach” that starts with the forecast of all the expected future net cash flows including the eventual disposition at market value of long-lived assets, and considers the fair market value of all precious metals. We assess the recoverability of the carrying value of long-lived assets at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities. If there is an impairment, a loss is recorded to reflect the difference between the assets’ fair value and carrying value. 1. Summary of Significant Accounting Policies (continued) Employee Retirement Plans Corning offers employee retirement plans consisting of defined benefit pension plans covering certain domestic and international employees and postretirement plans that provide health care and life insurance benefits for eligible retirees and dependents. The costs and obligations related to these benefits reflect the Company’s assumptions related to general economic conditions (particularly interest rates), expected return on plan assets, rate of compensation increase for employees and health care trend rates. The cost of providing plan benefits depends on demographic assumptions including retirements, mortality, turnover and plan participation. Costs for our defined benefit pension plans consist of two elements: 1) on-going costs recognized quarterly, which are comprised of service and interest costs, expected return on plan assets and amortization of prior service costs; and 2) mark-to-market gains and losses outside of the corridor, where the corridor is equal to 10% of the greater of the benefit obligation or the market-related value of plan assets at the beginning of the year, which are recognized annually in the fourth quarter of each year. These gains and losses result from changes in actuarial assumptions and the differences between actual and expected return on plan assets. Any interim remeasurements triggered by a curtailment, settlement or significant plan changes, as well as any true-up to the annual valuation, are recognized as a mark-to-market adjustment in the quarter in which such event occurs. Costs for our postretirement benefit plans consist of on-going costs recognized quarterly, and are comprised of service and interest costs, amortization of prior service costs and amortization of actuarial gains and losses. We recognize the actuarial gains and losses resulting from changes in actuarial assumptions as a component of Shareholders’ Equity on our consolidated balance sheets on an annual basis and amortize them into our operating results over the average remaining service period of employees expected to receive benefits under the plans, to the extent such gains and losses are outside of the corridor. Refer to Note 11 (Employee Retirement Plans) to the Consolidated Financial Statements for additional detail. Income Taxes The Company accounts for income taxes using the asset and liability method. Under this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to operating loss and tax credit carryforwards and for differences between the carrying amounts of existing assets and liabilities and their respective tax bases. The effective income tax rate reflects our assessment of the ultimate outcome of tax audits. In evaluating the tax benefits associated with our various tax filing positions, we record a tax benefit for uncertain tax positions using the highest cumulative tax benefit that is more likely than not to be realized. Adjustments are made to our liability for unrecognized tax benefits in the period in which we determine the issue is effectively settled with the tax authorities, the statute of limitations expires for the return containing the tax position or when new information becomes available. Our liability for unrecognized tax benefits, including accrued penalties and interest, is included in other accrued liabilities and other long-term liabilities on our consolidated balance sheets and in income tax expense in our Consolidated Statements of Income (Loss). Discrete events such as audit settlements or changes in tax laws are recognized in the period in which they occur. Valuation allowances are established when management is unable to conclude that it is more likely than not that some portion, or all, of the deferred tax asset will ultimately be realized. 1. Summary of Significant Accounting Policies (continued) Beginning in 2018, Corning will indefinitely reinvest the foreign earnings of: (1) any of its subsidiaries located in jurisdictions where Corning lacks the ability to repatriate its earnings, (2) any of its subsidiaries where Corning’s intention is to reinvest those earnings in operations, (3) legal entities for which Corning holds a non-controlling interest, (4) any subsidiaries with an accumulated deficit in earnings and profits and (5) any subsidiaries which have a positive earnings and profits balance but for which the entity lacks sufficient local statutory earnings or stock basis from which to make a distribution. A company can make a policy election to account for the tax on GILTI as a period cost or to recognize deferred tax assets and liabilities when basis differences exist that are expected to affect the amount of GILTI inclusion upon reversal. Corning has elected to account for the GILTI provisions as a period cost. Equity Method Investments Our equity method investments are reviewed for impairment on a periodic basis or if an event occurs or circumstances change that indicate the carrying amount may be impaired. This assessment is based on a review of the equity investments’ performance and a review of indicators of impairment to determine if there is evidence of a loss in value of an equity investment. Factors we consider include: · Absence of our ability to recover the carrying amount; · Inability of the equity affiliate to sustain an earnings capacity which would justify the carrying amount of the investment; and · Significant litigation, bankruptcy or other events that could impact recoverability. For an equity investment with impairment indicators, we measure fair value on the basis of discounted cash flows or other appropriate valuation methods, depending on the nature of the company involved. If it is probable that we will not recover the carrying amount of our investment, the impairment is considered other-than-temporary and recorded in earnings, and the equity investment balance is reduced to its fair value accordingly. We require our material equity method affiliates to provide audited financial statements. Consequently, adjustments for asset recoverability are included in equity earnings. We also utilize these financial statements in our recoverability assessment. Fair Value of Financial Instruments Major categories of financial assets and liabilities, including short-term investments, other assets and derivatives are measured at fair value on a recurring basis. Certain assets and liabilities including long-lived assets, goodwill, asset retirement obligations, and cost and equity investments are measured at fair value on a nonrecurring basis. Fair value is the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required to be recorded at fair value, we consider the principal or most advantageous market in which we would transact and consider assumptions that market participants would use when pricing the asset or liability, such as inherent risk, transfer restrictions, and risk of nonperformance. Derivative Instruments We participate in a variety of foreign exchange forward contracts and foreign exchange option contracts entered into in connection with the management of our exposure to fluctuations in foreign exchange rates. We utilize interest rate swaps to reduce the risk of changes in a benchmark interest rate from the probable forecasted issuance of debt and manage the mix of fixed and floating rate debt. These financial exposures are managed in accordance with corporate policies and procedures. 1. Summary of Significant Accounting Policies (continued) All derivatives are recorded at fair value on the balance sheet. Changes in the fair value of derivatives designated as cash flow hedges and hedges of net investments in foreign operations are not recognized in current operating results but are recorded in accumulated other comprehensive income. Amounts related to cash flow hedges are reclassified from accumulated other comprehensive income when the underlying hedged item impacts earnings. This reclassification is recorded in the same line item of the Consolidated Statements of Income (Loss) as where the effects of the hedged item are recorded, typically sales, cost of sales or other expense, net. Changes in the fair value of derivatives not designated as hedging instruments are recorded in the Consolidated Statements of Income (Loss) in the Translated earnings contract loss, net and the Other expense, net lines. New Accounting Standards In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which supersedes all existing guidance on accounting for leases in ASC Topic 840. ASU 2016-02 will continue to classify leases as either finance or operating, with classification affecting the pattern of expense recognition in the statement of income. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. ASU 2016-02 may be applied with a modified retrospective approach with various practical expedients. The adoption of ASU 2016-02 will have no impact to retained earnings or income. Upon adoption of ASU 2016-02, we anticipate recording a right-of-use asset and an offsetting lease liability of approximately $450 million. Adoption of the new standard is effe |
Revenue
Revenue | 12 Months Ended |
Dec. 31, 2018 | |
Revenue [Abstract] | |
Revenue | 2. Revenue On January 1, 2018, we adopted ASC Topic 606 “Revenue from Contracts with Customer”, and all related amendments, using the modified retrospective method applied to those contracts which were not completed as of January 1, 2018. Results for reporting periods beginning after January 1, 2018 are presented under Topic 606, while prior period amounts are not adjusted and continue to be reported in accordance with our historic accounting under ASC Topic 605 “Revenue Recognition”. We have determined that the impact of transition to the new standard is immaterial to our revenue recognition model since the majority of our recognition is based on point in time transfer of control. Accordingly, we have not made any adjustment to opening retained earnings. Product Revenue (Point in Time) The majority of our revenues are generated by delivery of products to our customers and recognized at a point in time based on our evaluation of when the customer obtains control of the products. Revenue is recognized when all performance obligations under the terms of a contract with our customer are satisfied, and control of the product has been transferred to the customer. If customer acceptance clauses are present and it cannot be objectively determined that control has been transferred, revenue is only recorded when customer acceptance is received and all performance obligations have been satisfied. Sales of goods typically do not include multiple product and/or service elements. Revenue is measured as the amount of consideration we expect to receive in exchange for transferring goods or providing services. Sales tax, value-added tax, and other taxes we collect concurrent with revenue-producing activities are excluded from revenue. Incidental contract costs that are not material in the context of the delivery of goods and services are recognized as expense. 2. Revenue (continued) At the time revenue is recognized, allowances are recorded, with the related reduction to revenue, for estimated product returns, allowances and price discounts based upon historical experience and related terms of customer arrangements. Where we have offered product warranties, we also establish liabilities for estimated warranty costs based upon historical experience and specific warranty provisions. Warranty liabilities are adjusted when experience indicates the expected outcome will differ from initial estimates of the liability. Product warranty liabilities were not material at December 31, 2018 and December 31, 2017. Other Revenue (Over Time) Corning’s over time revenues are mainly related to Telecommunications products, and are comprised of design, installation, training and software maintenance services. The performance obligations under these contracts generally require services to be performed over time, resulting in either a straight-line amortization method or an input method using incurred and forecasted expense to predict revenue recognition patterns which follows satisfaction of the performance obligation. Corning’s other revenue is inconsequential to our results. Revenue Disaggregation Table The following table shows revenues by major product categories, similar to our reportable segment disclosure. Within each product category, contract terms, conditions and economic factors affecting the nature, amount, timing and uncertainty around revenue recognition and cash flows are substantially similar. The commercial markets and selling channels are also similar. Except for an inconsequential number of Telecommunications products, our product category revenues are recognized at point in time when control transfers to the customer. Prior year amounts are presented under the ASC 605 basis of revenue recognition. Our revenues by product category are as follows (in millions): December 31, 2018 2017 2016 Display products $ 3,168 $ 2,997 $ 3,238 Telecommunication products 4,192 3,545 3,005 Specialty glass products 1,479 1,403 1,124 Environmental substrate and filter products 1,289 1,106 1,032 Life science products 946 879 839 All Other 216 186 152 $ 11,290 $ 10,116 $ 9,390 Contract Assets and Liabilities Contract assets, such as incremental costs to obtain or fulfill contracts, are an insignificant component of Corning’s revenue recognition process. The majority of Corning’s cost of fulfillment as a manufacturer of products is classified as inventory, fixed assets and intangible assets, which are accounted for under the respective guidance for those asset types. Other costs of contract fulfillment are immaterial due to the nature of our products and their respective manufacturing processes. 2. Revenue (continued) Contract liabilities include deferred revenues, other advanced payments and customer deposits. Deferred revenue and other advanced payments are not significant to our operations and are classified as part of other accrued liabilities in our financial statements. Customer deposits are predominately related to Display products and are classified as part of other accrued liabilities and other liabilities as appropriate, and are disclosed below. Customer Deposits As of December 31, 2018 and 2017, Corning had customer deposits of approximately $1.0 billion and $0.4 billion, respectively. The majority of these represent non-refundable cash deposits for customers to secure rights to an amount of glass produced by Corning under long-term supply agreements. The duration of these long-term supply agreements ranges up to ten years. As glass is shipped to customers, Corning will recognize revenue and issue credit memoranda to reduce the amount of the customer deposit liability, which are applied against customer receivables resulting from the sale of glass. No credit memoranda were issued in 2018 and 2017. Practical Expedients and Exemptions We do not disclose the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less and (ii) contracts for which we recognize revenue at the amount to which we have the right to invoice for services performed. We treat shipping and handling fees as a fulfillment cost and not as a separate performance obligation under the terms of our revenue contracts due to the perfunctory nature of the shipping and handling obligations. Significant Customers For 2018 and 2017, no customers met or exceeded 10% of Corning’s consolidated net sales. For 2016, Corning’s sales to Samsung Display Co. Ltd., a customer of our Display Technologies and Specialty Materials segments, represented 11% of the Company’s consolidated net sales. |
Inventories, Net of Inventory R
Inventories, Net of Inventory Reserves | 12 Months Ended |
Dec. 31, 2018 | |
Inventories, Net of Inventory Reserves [Abstract] | |
Inventories, Net of Inventory Reserves | 3. Inventories, Net of Inv entory Reserves Inventories, net of inventory reserves comprise the following (in millions): December 31, 2018 2017 Finished goods $ 854 $ 739 Work in process 386 322 Raw materials and accessories 409 306 Supplies and packing materials 388 345 Total inventories, net of inventory reserves $ 2,037 $ 1,712 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2018 | |
Income Taxes [Abstract] | |
Income Taxes | 4. Inco me Taxes Income before income taxes follows (in millions): Years ended December 31, 2018 2017 2016 U.S. companies $ 472 $ 653 $ 2,658 Non-U.S. companies 1,031 1,004 1,034 Income before income taxes $ 1,503 $ 1,657 $ 3,692 4. Income Taxes (continued) The current and deferred amounts of the (provision) benefit for income taxes follow (in millions): Years ended December 31, 2018 2017 2016 Current: Federal $ (256) $ (20) $ (1) State and municipal (22) (21) (17) Foreign (196) (317) (287) Deferred: Federal (34) (1,617) 310 State and municipal 4 (109) 48 Foreign 67 (70) (50) (Provision) benefit for income taxes $ (437) $ (2,154) $ 3 Amounts are reflected in the preceding tables based on the location of the taxing authorities. Reconciliation of the U.S. statutory income tax rate to our effective tax rate for operations follows: Years ended December 31, 2018 2017 2016 Statutory U.S. income tax rate 21.0 % 35.0 % 35.0 % State income tax (benefit), net of federal effect 0.9 0.8 (0.3) Global intangible low-taxed income 3.6 Repatriation tax on accumulated previously untaxed foreign earnings (1.2) 67.4 Remeasurement of deferred tax assets and liabilities (0.1) 21.0 Rate difference on foreign earnings (2.3) (3.9) (9.2) Preliminary IRS settlement of 2013-2014 tax years 11.5 Equity earnings impact 0.1 (0.4) Valuation allowance (3.8) 6.8 1.2 Realignment of Dow Corning interest (28.2) Other items, net (0.5) 2.8 1.8 Effective income tax rate (benefit) 29.1 % 130.0 % (0.1) % In December 2017, the U.S. enacted the 2017 Tax Act which resulted in significant changes for our financial results, including, but not limited to, (1) reducing the U.S. federal corporate income tax rate to 21% , and (2) imposing a one-time toll charge on certain unrepatriated earnings of foreign subsidiaries of U.S. companies that had not been previously taxed in the U.S. The 2017 Tax Act also established new tax provisions affecting our 2018 results, including, but not limited to, (1) creating a new provision designed to tax GILTI; (2) generally eliminating U.S. federal taxes on dividends from foreign subsidiaries; (3) eliminating the corporate AMT; (4) creating the BEAT; (5) establishing a deduction for FDII; (6) establishing new limitations on deductible interest expense; and (7) establishing new limitations on deductibility of certain executive compensation. 4. Income Taxes (continued) Given the significant complexity of the 2017 Tax Act and the lack of clear tax and accounting regulatory guidance for this new law, the Securities Exchange Commission issued SAB 118 to provide registrants additional time to analyze and report the effects of tax reform during the “measurement period.” Under SAB 118, the registrant was required to record those items where ASC 740 analysis was complete; include reasonable estimates and label them as provisional where ASC 740 analysis was incomplete; and if reasonable estimates could not be made, record items under the previous tax law. The measurement period, not to exceed one year, ended on the date the entity obtained, prepared, and analyzed the information that was needed to complete the accounting requirements under ASC Topic 740. For the year ended December 31, 2018, Corning’s results included a worldwide tax provision of $437 million, inclusive of tax on ongoing operations of $412 million and the impacts of the 2017 Tax Act of $25 million. The impacts of the 2017 Tax Act include: GILTI tax of $55 million, FDII benefit of $10 million, and a $20 million benefit related to truing up the toll charge and our measurement of U.S. deferred taxes, offset by the recording of a provision related to lifting our assertion of indefinite reinvestment on certain foreign earnings. As of December 31, 2018, Corning has completed its analysis of the impact of the 2017 Tax Act as required by SAB 118. The GILTI tax of $55 million was largely driven by the receipt of customer deposits. See Note 2 (Revenue) to these Consolidated Financial Statements for more information. In response to the reduction of the U.S. Federal Corporate Tax Rate, the Company re-measured the U.S. deferred tax assets and liabilities based on the rates at which they are expected to reverse in the future, which is generally 21%. We recorded a provisional estimate of $347 million during 2017. This was adjusted by an immaterial amount upon completion of our analysis for the year ended December 31, 2018. We recorded a provisional expense of $1.1 billion for the Toll Charge at year end 2017 on unrepatriated earnings of certain foreign subsidiaries that were previously deferred. This charge was reduced by $35 million upon completion of our analysis. Corning has completed its analysis on the impact of the 2017 Tax Act on its assertion regarding its indefinitely reinvested foreign earnings. Corning has determined that it will no longer assert indefinite asset reinvestment on $15.4 billion of unremitted foreign earnings accumulated prior to 2018. This represents approximately 94% of Corning’s unremitted foreign earnings as of the end of 2017. Corning will continue to indefinitely reinvest the remaining 6% of historic foreign earnings as of December 31, 2017. Beginning in 2018, Corning will indefinitely reinvest the foreign earnings of: (1) any of its subsidiaries located in jurisdictions where Corning lacks the ability to repatriate its earnings, (2) any of its subsidiaries where Corning’s intention is to reinvest those earnings in operations, (3) legal entities for which Corning holds a non-controlling interest, (4) any subsidiaries with an accumulated deficit in earnings and profits and (5) any subsidiaries which have a positive earnings and profits balance but for which the entity lacks sufficient local statutory earnings or stock basis from which to make a distribution. During 2018, the Company distributed approximately $4.2 billion from foreign subsidiaries to their respective U.S. parent companies. There are no incremental taxes beyond the toll charge due with respect to these distributions. As of December 31, 2018, Corning has approximately $1.5 billion of indefinitely reinvested foreign earnings. It remains impracticable to calculate the tax cost of repatriating our unremitted earnings which are considered indefinitely reinvested. Under new guidance, a company can make a policy election to account for the tax on GILTI as a period cost or to recognize deferred tax assets and liabilities when basis differences exist that are expected to affect the amount of GILTI inclusion upon reversal. Corning’s has elected to account for the GILTI provisions as a period cost. 4. Income Taxes (continued) The tax effects of temporary differences and carryforwards that gave rise to significant portions of the deferred tax assets and liabilities follows (in millions): December 31, 2018 2017 Loss and tax credit carryforwards $ 479 $ 652 Other assets 45 43 Asset impairments and restructuring reserves 33 94 Postretirement medical and life benefits 162 191 Other accrued liabilities 265 Other employee benefits 289 278 Gross deferred tax assets 1,273 1,258 Valuation allowance (317) (456) Total deferred tax assets 956 802 Intangible and other assets (96) (101) Other accrued liabilities (94) Fixed assets (256) (245) Total deferred tax liabilities (352) (440) Net deferred tax assets $ 604 $ 362 The net deferred tax assets are classified in our consolidated balance sheets as follows (in millions): December 31, 2018 2017 Deferred tax assets $ 951 $ 813 Deferred tax liabilities (347) (451) Net deferred tax assets $ 604 $ 362 Details on deferred tax assets for loss and tax credit carryforwards at December 31, 201 8 follow (in millions): Expiration Amount 2018-2022 2023-2027 2028-2037 Indefinite Net operating losses $ 449 $ 121 $ 60 $ 25 $ 243 Tax credits 30 25 5 Totals as of December 31, 2018 $ 479 $ 121 $ 60 $ 50 $ 248 Deferred tax assets are to be reduced by a valuation allowance if, based on the weight of available positive and negative evidence, it is more likely than not (a likelihood of greater than 50 percent) that some portion or all deferred tax assets will not be realized. Corning has valuation allowances on certain shorter-lived deferred tax assets such as those represented by capital loss and state tax net operating loss carryforwards, as well as other foreign net operating loss carryforwards, because we cannot conclude that it is more likely than not that we will earn income of the character required to utilize these assets before they expire. The change in the other accrued liabilities is largely driven by the payment of certain withholding taxes and reclassification of a portion of our deferred tax liability to deferred tax payable. Also, during 2018, a benefit was recorded upon the release of valuation allowances on deferred tax that are now considered realizable outside of the U.S. The amount of U.S. and foreign deferred tax assets that have remaining valuation allowances at December 31, 2018 and 2017 was $317 million and $456 million, respectively. 4. Income Taxes (continued) The 2017 Tax Act makes the following key changes to U.S. tax law which will potentially impact Corning’s deferred tax assets. AMT has been eliminated. Net operating losses (“NOL’s”) generated prior to the 2017 Tax Act may still be carried back two years and forward 20 years. Corning has $35 million of Federal NOL’s that are subject to these provisions. The 2017 Tax Act limits and, in some cases, eliminates foreign tax credits. Corning has $22 million of foreign tax credit carryforwards that may be subject to these restrictions. In 2018, we adopted ASU 2016-16, Improvements to Intra-Entity Transfers of Assets Other Than Inventory. As a result, cumulative tax benefits totaling $5 million were recorded as an adjustment to beginning retained earnings. The following is a tabular reconciliation of the total amount of unrecognized tax benefits (in millions): 2018 2017 2016 Balance at January 1 $ 252 $ 243 $ 253 Additions based on tax positions related to the current year 204 1 10 Additions for tax positions of prior years 13 4 Reductions for tax positions of prior years (10) (18) Settlements and lapse of statute of limitations (11) (5) (6) Balance at December 31 $ 435 $ 252 $ 243 The additions for 2018 were primarily due to a preliminary agreement with the IRS to resolve its 2013-2014 audit. Included in the balance at December 31, 2018 , 2017 and 2016 are $263 million, $97 million and $92 million, respectively, of unrecognized tax benefits that would impact our effective tax rate if recognized. We recognize accrued interest and penalties associated with uncertain tax positions as part of tax expense. For the years ended December 31, 2018, 2017 and 2016 the amount recognized in interest expense and accrued for the payment of interest and penalties were not material. It is possible that the amount of unrecognized tax benefits will change due to one or more of the following events during the next twelve months: audit activity, tax payments, or final decisions in matters that are the subject of controversy in various jurisdictions within which we operate. The majority of the potential change relates to our ongoing U.S. tax audit. We believe we have provided adequate contingent reserves for these matters. However, if upon conclusion of these matters, the ultimate determination of taxes owed is for an amount materially different than our current reserves, our overall tax expense and effective tax rate could be materially impacted in the period of adjustment. Corning Incorporated, as the common parent company, and all 80% -or-more-owned of its U.S. subsidiaries join in the filing of co nsolidated U.S. federal income tax returns. The statute of limitations is closed for all periods ending through December 31, 2012. All returns for periods ended through December 31, 2004, have been audited by and settled with the Internal Revenue Service (IRS). Corning Incorporated and its U.S. subsidiaries file income tax returns on a combined, unitary or stand-alone basis in multiple state and local jurisdictions, which generally have statutes of limitations ranging from 3 to 5 years. Various state income tax returns are currently in the process of examination or administrative appeal. We do not expect any material proposed adjustments from any of these audits. Corning has reached a preliminary agreement with the IRS to resolve its 2013-2014 audit. This preliminary agreement resulted in $172 million of additional tax expense in the first quarter of 2018, of which $12 million relates to interest expense, net of tax benefit. Corning will use tax attributes to cover most of the tax expense. We expect to finalize this agreement during 2019. 4. Income Taxes (continued) Our foreign subsidiaries file income tax returns in the countries in which they have operations. Generally, these countries have statutes of limitations ranging from 3 to 10 years. The statute of limitations is closed through the following years in these major jurisdictions: Japan ( 20 11 ), Taiwan ( 2012 ) and South Korea ( 201 2 ). CPM is currently appealing certain tax assessments and tax refund claims for tax years 2006 through 2017. The Company is required to deposit the disputed tax amounts with the South Korean government as a condition of its appeal of any tax assessments. Because we believe that it is more likely than not that we will prevail in the appeals process, we have recorded a non-current receivable of $425 million for the amount on deposit with the South Korean government. |
Investments
Investments | 12 Months Ended |
Dec. 31, 2018 | |
Investments [Abstract] | |
Investments | 5. Invest ments Investments are comprised of the following (in millions): Ownership December 31, interest 2018 2017 Affiliated companies accounted for by the equity method (1)(2) 20% to 50% $ 354 $ 280 Other investments 22 60 Subtotal Investment Assets $ 376 $ 340 Affiliated companies accounted for by the equity method - HSG (1)(2) 50% $ $ 105 Subtotal Investment Liabilities $ $ 105 (1) Amount reflects Corning’s direct ownership interests in the affiliated companies at December 31, 2018 and December 31, 2017. Corning does not control any of such entities. (2) HSG indirectly holds an 80.5% interest in a HSG operating partnership. At December 31, 2018, the carrying value of the investment in HSG was $42 million and recorded in Investments. At December 31, 2017, the negative carrying value of the investment in HSG was $105 million and recorded in Other Liabilities. 5. Investments (continued) Affiliated Companies at Equity The results of operations and financial position of the investments accounted for under the equity method follow (in millions): Years ended December 31, 2018 2017 2016 Statement of operations: Net sales $ 1,759 $ 2,346 $ 4,024 Gross profit $ 424 $ 560 $ 1,006 Net income $ 835 $ 721 $ 565 Corning’s equity in earnings of affiliated companies $ 390 $ 361 $ 284 Related party transactions: Corning sales to affiliated companies $ 184 $ 108 $ 95 Corning purchases from affiliated companies $ 11 $ 12 $ 12 Corning transfers of assets, at cost, to affiliated companies $ 2 $ 22 $ 44 Dividends received from affiliated companies $ 241 $ 201 $ 85 Years ended December 31, 2018 2017 Balance sheet: Current assets $ 1,716 $ 1,593 Noncurrent assets $ 1,922 $ 1,999 Short-term borrowings, including current portion of long-term debt $ 8 $ 3 Other current liabilities $ 810 $ 700 Long-term debt $ 14 $ 16 Other long-term liabilities $ 1,708 $ 2,128 Non-controlling interest $ 259 $ 313 Related party transactions: Balances due from affiliated companies $ 95 $ 47 We have contractual agreements with several of our equity affiliates which include sales, purchasing, licensing and technology agreements. As of December 31, 2018 and 2017, the undistributed earnings of equity companies included in our retained earnings were not material. HSG and Dow Corning On May 31, 2016, Corning completed the strategic realignment of its equity investment in Dow Corning Corporation (”Dow Corning”) pursuant to the Transaction Agreement announced in December 2015. Under the terms of the Transaction Agreement, Corning exchanged with Dow Corning its 50% stock interest in Dow Corning for 100% of the stock of a newly formed entity, which held an equity interest in Hemlock Semiconductor Group (“HSG”) and approximately $4.8 billion in cash. 5. Investments (continued) Prior to realignment, HSG, a consolidated subsidiary of Dow Corning, was an indirect equity investment of Corning. Upon completion of the exchange, Corning received a direct equity investment in HSG. Because our ownership percentage in HSG did not change as a result of the realignment, the investment in HSG is recorded at its carrying value, which had a negative carrying value of $383 million at the transaction date. The negative carrying value resulted from a one-time charge to this entity in 2014 for the permanent abandonment of certain assets. Excluding this charge, the entity has been profitable and recovered its equity as of December 31, 2018. The carrying value of the investment in HSG as of December 31, 2018 was $42 million and recorded in Investments. Corning’s financial statements as of December 31, 2016 include the positive impact of the release of a deferred tax liability of $105 million related to Corning’s tax on Dow Corning’s earnings that were not distributed as of the date of the transaction and a non-taxable gain of $2,676 million on the realignment. Details of the gain are illustrated below (in millions): Cash $ 4,818 Carrying Value of Dow Corning Equity Investment (1,560) Carrying Value of HSG Equity Investment (383) Other (1) (199) Gain $ 2,676 (1) Primarily consists of the release of accumulated other comprehensive income items related to unamortized actuarial losses related to Dow Corning’s pension plan and foreign currency translation gains in the amounts of $260 million and $45 million, respectively. Corning began reporting HSG equity earnings and dividends on June 1, 2016. HSG information presented below is shown for the years ended December 31, 2018 and 2017 and the seven months ended December 31, 2016 (in millions): Years ended December 31, 2018 2017 2016 Statement of operations: Net sales $ 1,158 $ 1,716 $ 1,119 Gross profit $ 367 $ 469 $ 361 Net income $ 814 $ 706 $ 421 Corning’s equity in earnings of affiliated companies $ 388 $ 352 $ 212 Related party transactions: Dividends received from affiliated companies $ 241 $ 196 $ 65 Years ended December 31, 2018 2017 Balance sheet: Current assets $ 1,188 $ 1,206 Noncurrent assets $ 1,414 $ 1,522 Short-term borrowings, including current portion of long-term debt $ 3 $ 3 Other current liabilities $ 540 $ 484 Long-term debt $ 11 $ 15 Other long-term liabilities $ 1,708 $ 2,126 Non-controlling interest $ 259 $ 313 |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2018 | |
Acquisitions [Abstract] | |
Acquisitions | 6. Acquisit ions During 2018, Corning acquired substantially all of CMD in two cash transactions totaling $841 million. On June 1, 2018, Corning acquired a manufacturing facility and certain other assets (collectively referred to as “Purchased Assets”) for $801 million. The Purchased Assets constitute a business, which designs, manufactures and markets high bandwidth and optical fiber products. On December 3, 2018, as part of the acquisition of CMD, Corning acquired 100% of the German services company for $40 million. The acquisition was accounted for as a business combination. A summary of the preliminary allocation of the total purchase price to the net tangible and other intangible assets acquired, with the remainder recorded as goodwill based on fair value is as follows (in millions): Property, plant and equipment $ 32 Other intangible assets 525 Other net assets 16 Total identified net assets 573 Purchase consideration 841 Goodwill (1) (2) $ 268 (1) Amounts reflect measurement period adjustments. (2) The goodwill recognized is deductible for U.S. income tax purposes. The goodwill was allocated to the Optical Communications segment. Goodwill is related to the value of CMD’s product and customer portfolio and its combination with Corning’s existing optical communications platform, as well as synergies and other intangibles that do not qualify for separate recognition. Other intangible assets consist primarily of $434 million of customer relationships and $91 million of other intangibles that are amortized over the weighted average useful life of approximately 14 and 11 years, respectively . Acquisition-related costs of $18 million for the year ended December 31, 2018, included costs for legal, accounting, valuation and other professional services and were included in selling, general and administrative expense in the Consolidated Statements of Income. Supplemental pro forma information was not provided because the Purchased Assets are not material to Corning’s consolidated financial statements. There were no material acquisitions completed in 2017 or 2016. See Note 8 (Goodwill and Other Intangible Assets) to the Consolidated Financial Statements for further information on goodwill and intangibles acquired in 2017 and 2016. |
Property, Plant and Equipment,
Property, Plant and Equipment, Net of Accumulated Depreciation | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment, Net of Accumulated Depreciation [Abstract] | |
Property, Plant and Equipment, Net of Accumulated Depreciation | 7. Property, Plant and Equip ment, Net of Accumulated Depreciation Property, plant and equipment, net of accumulated depreciation follow (in millions): December 31, 2018 2017 Land $ 467 $ 482 Buildings 5,924 5,864 Equipment 18,218 16,648 Construction in progress 2,218 1,832 26,827 24,826 Accumulated depreciation (11,932) (10,809) Total $ 14,895 $ 14,017 Approximately $49 million, $36 million and $23 million of interest costs were capitalized as part of property, plant and equipment, net of accumulated depreciation, in 2018 , 2017 and 2016 , respectively. 7. Property, Plant and Equipment, Net of Accumulated Depreciation (continued) Manufacturing equipment includes certain components of production equipment that are constructed of precious metals. At December 31, 2018 and 2017 , the recorded value of precious metals totaled $3 billion in each period. Depletion expense for precious metals in the years ended December 31, 2018 , 2017 and 2016 was $14 million, $13 million and $20 million, respectively. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Other Intangible Assets [Abstract] | |
Goodwill and Other Intangible Assets | 8. Goodwill and Oth er Intangible Assets Goodwill Changes in the carrying amount of goodwill for the twelve months ended December 31, 2018 and 2017 were as follows (in millions): Display Technologies Optical Communications Specialty Materials Life Sciences All Other Total Balance at December 31, 2016 $ 126 $ 645 $ 150 $ 558 $ 98 $ 1,577 Acquired goodwill (1) 22 43 34 99 Measurement period adjustment (2) (1) 1 (28) (28) Foreign currency translation adjustment 10 5 21 10 46 Balance at December 31, 2017 $ 136 $ 671 $ 150 $ 623 $ 114 $ 1,694 Acquired goodwill (3) 257 2 259 Measurement period adjustment 11 11 Foreign currency translation adjustment (4) (13) (8) (3) (28) Balance at December 31, 2018 $ 132 $ 926 $ 150 $ 617 $ 111 $ 1,936 (1) The Company completed two small acquisitions in the third quarter of 2017 which are reported in the Optical Communications and Life Sciences segment and one small acquisition in the first quarter of 2017 which is reported in All Other. (2) In the second quarter of 2017, the Company recorded measurement period adjustments of $28 million related to an acquisition completed in a previous period. (3) The Company completed the acquisition of CMD during the second quarter and the fourth quarter of 2018. Corning’s gross goodwill balance for the years ended December 31, 2018 and 2017 were $8.4 billion and $8.2 billion, respectively. Accumulated impairment losses were $6.5 billion for the years ended December 31, 2018 and 2017 , respectively, and were generated primarily through goodwill impairments related to the Optical Communications segment. Other Intangible Assets Other intangible assets follow (in millions): December 31, 2018 2017 Gross Accumulated amortization Net Gross Accumulated amortization Net Amortized intangible assets: Patents, trademarks & trade names $ 465 $ 203 $ 262 $ 382 $ 188 $ 194 Customer list and other 1,308 278 1,030 884 209 675 Total $ 1,773 $ 481 $ 1,292 $ 1,266 $ 397 $ 869 8. Goodwill and Other Intangible Assets (continued) Amortized intangible assets are primarily related to the Optical Communications and Life Sciences segments. The net carrying amount of intangible assets increased by $ 423 million during the year ended December 31, 2018, primarily due to the acquisition of CMD of $5 25 million and other acquisition of $ 9 million of other intangible assets, offset by amortization of $ 94 million and foreign currency translation and other adjustments of $17 million. Amortization expense related to all intangible assets is estimated to be $11 5 million annually for 2019, $11 4 million annually for 20 20, $11 3 million annually for 2021 , $11 1 million annually for 202 2 , and $1 10 million annually for 2023 . |
Other Assets and Other Liabilit
Other Assets and Other Liabilities | 12 Months Ended |
Dec. 31, 2018 | |
Other Assets and Other Liabilities [Abstract] | |
Other Assets and Other Liabilities | 9. Other Assets and Ot her Liabilities Other assets follow (in millions): December 31, 2018 2017 Current assets: Contingent consideration asset $ 300 Derivative instruments $ 103 197 Other current assets 599 494 Other current assets $ 702 $ 991 Non-current assets: Derivative instruments $ 45 $ 68 South Korean tax deposits 425 319 Other non-current assets 551 547 Other assets $ 1,021 $ 934 South Korean tax deposits Corning is currently appealing certain tax assessments resulting from audits performed by the South Korean tax authorities. The Company is required to deposit the disputed tax amounts with the South Korean government as a condition of its appeal of these assessments. Because we believe that it is more likely than not that we will prevail in the appeal process, we have recorded a non-current receivable for the amount on deposit with the South Korean government. 9. Other Assets and Other Liabilities (continued) Other liabilities follow (in millions): December 31, 2018 2017 Current liabilities: Wages and employee benefits $ 642 $ 620 Income taxes 169 148 Derivative instruments 56 42 Asbestos and other litigation (Note 12) 113 41 Other current liabilities 871 540 Other accrued liabilities $ 1,851 $ 1,391 Non-current liabilities: Defined benefit pension plan liabilities $ 831 $ 713 Derivative instruments 386 333 Asbestos and other litigation (Note 12) 279 338 Investment in Hemlock Semiconductor Group (1) 105 Customer deposits (Note 2) 922 382 Deferred tax liabilities 347 451 Other non-current liabilities 887 695 Other liabilities $ 3,652 $ 3,017 (1) The negative carrying value resulted from a one-time charge to this entity in 2014 for the permanent abandonment of certain assets. Refer to Note 5 (Investments) to the Consolidated Financial Statements for additional information. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2018 | |
Debt [Abstract] | |
Debt | 10. Deb t (In millions) December 31, 2018 2017 Current portion of long-term debt $ 4 $ 379 Long-term debt Debentures, 1.5% , due 2018 $ 375 Debentures, 6.625% , due 2019 245 Debentures, 4.25% , due 2020 $ 291 288 Debentures, 8.875% , due 2021 65 66 Debentures, 2.90% , due 2022 373 373 Debentures, 3.70% , due 2023 249 249 Medium-term notes, average rate 7.66% , due through 2023 45 45 Debentures, 7.00% , due 2024 100 99 Yen-denominated Debentures, .698% , due 2024 191 185 Yen-denominated Debentures, .722% , due 2025 90 Yen-denominated Debentures, .992% , due 2027 426 414 Yen-denominated Debentures, 1.043% , due 2028 276 Debentures, 6.85% , due 2029 164 166 Yen-Denominated Debentures, 1.219% , due 2030 226 Debentures, callable, 7.25% , due 2036 248 248 Debentures, 4.70% , due 2037 295 248 Yen-denominated Debentures, 1.583% , due 2037 91 85 Debentures, 5.75% , due 2040 395 397 Debentures, 4.75% , due 2042 496 496 Debentures, 5.35% , due 2048 543 Debentures, 4.375% , due 2057 742 743 Debentures, 5.85% , due 2068 296 Other, average rate 5.08% , due through 2043 396 406 Total long-term debt 5,998 5,128 Less current portion of long-term debt 4 379 Long-term debt $ 5,994 $ 4,749 Corning did no t have outstanding commercial paper at December 31, 2018 and 2017. In the third quarter of 2018, Corning amended and restated its revolving credit agreement (the “Revolving Credit Agreement”). The Revolving Credit Agreement provides a committed $1.5 billion unsecured multi-currency line of credit and expires August 15, 2023 . At December 31, 2018, there were no outstanding amounts under the Revolving Credit Agreement. Based on borrowing rates currently available to us for loans with similar terms and maturities, the fair value of long-term debt was $6.0 billion at December 31, 2018 and $5.1 billion at December 31, 2017 . 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. The following table shows debt maturities by year at December 31, 2018 (in millions)*: 2019 2020 2021 2022 2023 Thereafter $ 4 $ 305 $ 68 $ 381 $ 420 $ 4,856 * Excludes interest rate swap gains and bond discounts. 10. Debt (continued) Debt Issuances and Retirements 2018 In the second quarter of 2018, Corning issued three Japanese yen-denominated debt securities (the “Notes”), as follows: · ¥10 billion 0.722% senior unsecured notes with a maturity of 7 years; · ¥30.5 billion 1.043% senior unsecured notes with a maturity of 10 years; and · ¥25 billion 1.219% senior unsecured notes with a maturity of 12 years. The proceeds from the Notes were received in Japanese yen and converted to U.S. dollars on the date of issuance. The net proceeds received in U.S. dollars, after deducting offering expenses, were $596 million. Payments of principle and interest on the Notes will be in Japanese yen, or should yen be unavailable due to circumstances beyond Corning’s control, a U.S. dollar equivalent. The net proceeds of $596 million will be used for general corporate purposes. In the fourth quarter of 2018, Corning issued three unsecured long-term notes as follows: · $50 million 4.70% senior unsecured notes with a maturity of 19 years; · $550 million 5.35% senior unsecured notes with a maturity of 30 years; and · $300 million 5.85% senior unsecured notes with a maturity of 50 years. The net proceeds of $889 million will be used for general corporate purposes. We can redeem these notes at any time, subject to certain terms and conditions. In the fourth quarter of 2018, Corning redeemed $250 million of 6.625% Notes due 2019, paying a nominal call premium. The bond redemption incurred an insignificant loss during the fourth quarter of 2018. 2017 In the third quarter of 2017, Corning issued three Japanese yen-denominated debt securities (the “Notes”), as follows: · ¥21 billion 0.698% senior unsecured notes with a maturity of 7 years; · ¥47 billion 0.992% senior unsecured notes with a maturity of 10 years; and · ¥10 billion 1.583% senior unsecured notes with a maturity of 20 years. The proceeds from these Notes were received in Japanese yen and converted to U.S. dollars on the date of issuance. The net proceeds received in U.S. dollars, after deducting offering expenses, was approximately $700 million. Payments of principal and interest on the Notes will be in Japanese yen, or should yen be unavailable due to circumstances beyond Corning’s control, a U.S. dollar equivalent. The net proceeds of $700 million were made available for general corporate purposes. In the fourth quarter of 2017, Corning issued $750 million of 4.375% senior unsecured notes that mature on November 15, 2057 . The net proceeds of $743 million will be used for general corporate purposes. We can redeem these notes at any time, subject to certain terms and conditions. On a quarterly basis, Corning will recognize the transaction gains and losses resulting from changes in the JPY/USD exchange rate in the Other expense, net line of the Consolidated Statements of Income (Loss). Cash proceeds from the offerings and payments for debt issuance costs are disclosed as financing activities, and cash payments to bondholders for interest will be disclosed as operating activities, in the Consolidated Statements of Cash Flows. |
Employee Retirement Plans
Employee Retirement Plans | 12 Months Ended |
Dec. 31, 2018 | |
Employee Retirement Plans [Abstract] | |
Employee Retirement Plans | 11. Employee Retire ment Plans Defined Benefit Plans We have defined benefit pension plans covering certain domestic and international employees. Our funding policy has been to contribute, as necessary, an amount in excess of the minimum requirements in order to achieve the Company’s long-term funding targets. In 2018, we made voluntary cash contributions to our domestic defined benefit pension plan and our international pension plans in the amount of $105 million and $12 million, respectively. In 2017 , we made no voluntary cash contributions to our domestic defined benefit pension plan and $29 million to our international pension plans. During 2019, we anticipate making cash contributions of $75 million to our U.S. qualified pension plan and $31 million to our international pension plans. Corning offers postretirement plans that provide health care and life insurance benefits for retirees and eligible dependents. Certain employees may become eligible for such postretirement benefits upon reaching retirement age and service requirements. For current retirees (including surviving spouses) and active employees eligible for the salaried retiree medical program, we have placed a “cap” on the amount we will contribute toward retiree medical coverage in the future. The cap is equal to 120% of our 2005 contributions toward retiree medical benefits. Once our contributions toward salaried retiree medical costs reach this cap, impacted retirees will have to pay the excess amount in addition to their regular contributions for coverage. This cap was attained for post-65 retirees in 2008 and attained for pre-65 retirees in 2010. Furthermore, employees hired or rehired on or after January 1, 2007 will be eligible for Corning retiree medical benefits upon retirement; however, these employees will pay 100% of the cost. 11. Employee Retirement Plans (continued) Obligations and Funded Status The change in benefit obligation and funded status of our employee retirement plans follows (in millions): Total pension benefits Domestic pension benefits International pension benefits December 31, 2018 2017 2018 2017 2018 2017 Change in benefit obligation Benefit obligation at beginning of year $ 4,188 $ 3,887 $ 3,522 $ 3,289 $ 666 $ 598 Service cost 103 92 78 66 25 26 Interest cost 132 126 116 112 16 14 Plan participants’ contributions 1 2 1 1 1 Plan amendments 21 20 1 Actuarial loss (gain) (210) 208 (200) 222 (10) (14) Other (1) 3 3 (1) Benefits paid (202) (195) (179) (171) (23) (24) Foreign currency translation (29) 65 (29) 65 Benefit obligation at end of year $ 4,003 $ 4,188 $ 3,358 $ 3,522 $ 645 $ 666 Change in plan assets Fair value of plan assets at beginning of year $ 3,539 $ 3,225 $ 3,004 $ 2,765 $ 535 $ 460 Actual return on plan assets (201) 413 (202) 395 1 18 Employer contributions 135 46 118 14 17 32 Plan participants’ contributions 1 1 1 1 Benefits paid (208) (195) (179) (171) (29) (24) Foreign currency translation (27) 49 (27) 49 Fair value of plan assets at end of year $ 3,239 $ 3,539 $ 2,742 $ 3,004 $ 497 $ 535 Funded status at end of year Fair value of plan assets $ 3,239 $ 3,539 $ 2,742 $ 3,004 $ 497 $ 535 Benefit obligations (4,003) (4,188) (3,358) (3,522) (645) (666) Funded status of plans $ (764) $ (649) $ (616) $ (518) $ (148) $ (131) Amounts recognized in the consolidated balance sheets consist of: Noncurrent asset $ 81 $ 76 $ 81 $ 76 Current liability (29) (20) $ (13) $ (12) (16) (8) Noncurrent liability (816) (705) (603) (506) (213) (199) Recognized liability $ (764) $ (649) $ (616) $ (518) $ (148) $ (131) Amounts recognized in accumulated other comprehensive income consist of: Net actuarial loss $ 338 $ 300 $ 324 $ 285 $ 14 $ 15 Prior service cost (credit) 36 22 37 25 (1) (3) Amount recognized at end of year $ 374 $ 322 $ 361 $ 310 $ 13 $ 12 The accumulated benefit obligation for defined benefit pension plans was $3.8 billion and $3.9 billion at December 31, 2018 and 2017 , respectively. 11. Employee Retirement Plans (continued) Postretirement benefits December 31, 2018 2017 Change in benefit obligation Benefit obligation at beginning of year $ 789 $ 776 Service cost 10 10 Interest cost 24 26 Plan participants’ contributions 8 8 Plan amendments (40) Actuarial loss (gain) (48) 17 Benefits paid (46) (50) Medicare subsidy received 2 2 Benefit obligation at end of year $ 699 $ 789 Funded status at end of year Fair value of plan assets Benefit obligations $ (699) $ (789) Funded status of plans $ (699) $ (789) Amounts recognized in the consolidated balance sheets consist of: Current liability $ (37) $ (40) Noncurrent liability (662) (749) Recognized liability $ (699) $ (789) Amounts recognized in accumulated other comprehensive income consist of: Net actuarial loss $ 21 $ 68 Prior service credit (44) (12) Amount recognized at end of year $ (23) $ 56 The following information is presented for pension plans where the projected benefit obligation as of December 31, 2018 and 2017 exceeded the fair value of plan assets (in millions): December 31, 2018 2017 Projected benefit obligation $ 3,754 $ 3,843 Fair value of plan assets $ 2,910 $ 3,173 In 2018, the fair value of plan assets exceeded the projected benefit obligation for the United Kingdom pension plan. In 2017, the fair value of plan assets exceeded the projected benefit obligation for the United Kingdom and one of the South Korean pension plans. The following information is presented for pension plans where the accumulated benefit obligation as of December 31, 2018 and 2017 exceeded the fair value of plan assets (in millions): December 31, 2018 2017 Accumulated benefit obligation $ 3,410 $ 3,555 Fair value of plan assets $ 2,766 $ 3,025 11. Employee Retirement Plans (continued) In 2018, the fair value of plan assets exceeded the accumulated benefit obligation for the United Kingdom, South Korea and one of the Taiwan pension plans. In 2017, the fair value of plan assets exceeded the accumulated benefit obligation for one of the Taiwan, the United Kingdom and the South Korea pension plans. The components of net periodic benefit cost for our employee retirement plans follow (in millions): Total pension benefits Domestic pension benefits International pension benefits December 31, 2018 2017 2016 2018 2017 2016 2018 2017 2016 Service cost $ 103 $ 92 $ 85 $ 78 $ 66 $ 61 $ 25 $ 26 $ 24 Interest cost 132 126 124 116 112 111 16 14 13 Expected return on plan assets (189) (174) (165) (178) (163) (153) (11) (11) (12) Amortization of prior service cost (credit) 6 5 6 7 6 6 (1) (1) Recognition of actuarial loss 145 21 67 143 18 55 2 3 12 Total net periodic benefit expense $ 197 $ 70 $ 117 $ 166 $ 39 $ 80 $ 31 $ 31 $ 37 Settlement charge (1) 1 1 (1) Total expense $ 196 $ 70 $ 118 $ 166 $ 39 $ 81 $ 30 $ 31 $ 37 Other changes in plan assets and benefit obligations recognized in other comprehensive income: Settlements $ 1 $ (2) $ (2) $ 1 Current year actuarial loss (gain) 180 $ (30) 84 $ 182 $ (8) 63 (2) $ (22) $ 21 Recognition of actuarial loss (145) (21) (64) (143) (18) (55) (2) (3) (9) Current year prior service cost 20 20 Amortization of prior service (cost) credit (6) (5) (6) (7) (6) (6) 1 1 Total recognized in other comprehensive loss (income) $ 50 $ (56) $ 12 $ 52 $ (32) $ 0 $ (2) $ (24) $ 12 Postretirement benefits 2018 2017 2016 Service cost $ 10 $ 10 $ 9 Interest cost 24 26 26 Amortization of actuarial net gain (1) (1) Amortization of prior service credit (7) (3) (4) Total net periodic benefit expense $ 27 $ 32 $ 30 Other changes in plan assets and benefit obligations recognized in other comprehensive income: Current year actuarial (gain) loss $ (47) $ 17 $ 15 Amortization of actuarial net gain 1 1 Current year prior service credit (40) Amortization of prior service credit 7 3 5 Total recognized in other comprehensive income (loss) $ (80) $ 21 $ 21 Total recognized in net periodic benefit cost and other comprehensive income $ (53) $ 53 $ 51 11. Employee Retirement Plans (continued) The Company expects to recognize $7 million of net prior service cost as a component of net periodic pension cost in 2019 for its defined benefit pension plans. The Company expects to recognize $1 million of net actuarial gain and $7 million of net prior service credit as components of net periodic postretirement benefit cost in 2019 . Corning uses a hypothetical yield curve and associated spot rate curve to discount the plan’s projected benefit payments. Once the present value of projected benefit payments is calculated, the suggested discount rate is equal to the level rate that results in the same present value. The yield curve is based on actual high-quality corporate bonds across the full maturity spectrum, which also includes private placements as well as Eurobonds that are denominated in U.S. currency. The curve is developed from yields on approximately 350 - 375 bonds from four grading sources, Moody’s, S&P, Fitch and the Dominion Bond Rating Service. A bond will be included if at least half of the grades from these sources are Aa, non-callable bonds. The very highest 10% yields and the lowest 40% yields are excluded from the curve to eliminate outliers in the bond population. Mortality is one of the key assumptions used in valuing liabilities of retirement plans. It is used to assign a probability of payment for future plan benefits that are contingent upon participants’ survival. To make this assumption, benefit plan sponsors typically use a base mortality table and an improvement scale that adjusts the rates of mortality for future anticipated changes to historical death rates. Corning last updated the adjustment factors applied to its base mortality assumption (RP-2014 white collar table and RP-2014 blue collar table for non-union and union participants, respectively) to value its U.S. benefit plan obligations as of December 31, 2017. In addition, Corning also updated to the MP-2017 projection scale for the year ended 2017 . As the Society of Actuaries publishes additional mortality improvement scales (MP-2018), Corning has considered these revised improvement scales in setting its future mortality improvement assumption. As of December 31, 2018, Corning decided to continue application of its future improvement scale to the MP-2017 scale. Furthermore, Corning updated for the year ended 2017 the mortality assumption applied to disabled participants to be the RP-2014 disabled mortality base table with future improvements using MP-2017. These assumptions were unchanged for the year end ed 2018. Measurement of postretirement benefit expense is based on assumptions used to value the postretirement benefit obligation at the beginning of the year. The weighted-average assumptions used to determine benefit obligations at December 31 follow: Pension benefits Domestic International Postretirement benefits 2018 2017 2016 2018 2017 2016 2018 2017 2016 Discount rate 4.28 % 3.58 % 4.01 % 1.96 % 1.93 % 2.29 % 4.33 % 3.63 % 4.07 % Rate of compensation increase 3.50 % 3.50 % 3.50 % 2.96 % 2.81 % 3.97 % The weighted-average assumptions used to determine net periodic benefit cost for years ended December 31 follow: Pension benefits Domestic International Postretirement benefits 2018 2017 2016 2018 2017 2016 2018 2017 2016 Discount rate 3.58 % 4.01 % 4.24 % 1.93 % 2.29 % 3.23 % 3.63 % 4.06 % 4.31 % Expected return on plan assets 6.00 % 6.00 % 6.00 % 2.13 % 3.97 % 3.92 % Rate of compensation increase 3.50 % 3.50 % 3.50 % 2.81 % 2.06 % 2.89 % 11. Employee Retirement Plans (continued) Expected long-term returns on plan assets is based on long-term expectations for future returns informed by historical data in conjunction with the investment policies further described within “Plan Assets” below. Reasonableness of the results is tested using models provided by the plan actuaries. Assumed health care trend rates at December 31 2018 2017 Health care cost trend rate assumed for next year 7.00% 6.50% Rate that the cost trend rate gradually declines to 5% 5% Year that the rate reaches the ultimate trend rate 2027 2024 Assumed health care cost trend rates have a significant effect on the amounts reported for the health care plans. A one-percentage-point change in assumed health care cost trend rates would have the following effects (in millions): One-percentage-point increase One-percentage-point decrease Effect on annual total of service and interest cost (credit) $ 3 $ (2) Effect on postretirement benefit obligation $ 45 $ (37) Plan Assets The Company’s primary objective is to ensure the plan has sufficient return on assets to fund the plan’s current and future obligations as they become due. Investments are made in public securities to ensure adequate liquidity to support benefit payments. Domestic and international stocks and bonds provide diversification to the portfolio. The target allocation range for global equity investment is 20% -25% which includes large, mid and small cap companies and investments in both developed and emerging markets. The target allocation for bond investments is 60% , which predominately includes corporate bonds. Long duration fixed income assets are utilized to mitigate the sensitivity of funding ratios to changes in interest rates. The target allocation range for non-public investments in private equity and real estate is 5% -15% , and is used to enhance returns and offer additional asset diversification. The target allocation range for commodities is 0% -5% , which provides some inflation protection to the portfolio. The following tables provide fair value measurement information for the Company’s major categories; Level 1 (quoted market prices in active markets for identical assets), Level 2 (significant other observable inputs) and Level 3 (significant unobservable inputs) of our domestic defined benefit plan assets: December 31, 2018 December 31, 2017 (in millions) Total (Level 1) (Level 2) (Level 3) Total (Level 1) (Level 2) (Level 3) Equity securities: U.S. companies $ 363 $ 2 $ 361 $ 374 $ 57 $ 317 International companies 324 324 420 117 303 Fixed income: U.S. corporate bonds 1,626 183 1,443 1,815 197 1,618 Private equity (1) 82 $ 82 105 $ 105 Real estate (2) 148 148 147 147 Cash equivalents 199 199 21 21 Commodities (3) 122 122 Total $ 2,742 $ 384 $ 2,128 $ 230 $ 3,004 $ 392 $ 2,360 $ 252 (1) This category includes venture capital, leverage buyouts and distressed debt limited partnerships invested primarily in U.S. companies. The inputs are valued by discounted cash flow analysis and comparable sale analysis. (2) This category includes industrial, office, apartments, hotels, infrastructure and retail investments which are limited partnerships predominately in the U.S. The inputs are valued by discounted cash flow analysis; comparable sale analysis and periodic external appraisals. (3) This category includes investments in energy, industrial metals, precious metals, agricultural and livestock primarily through futures, options, swaps and exchange traded funds. 11. Employee Retirement Plans (continued) The following tables provide fair value measurement information for the Company’s major categories; Level 1 (quoted market prices in active markets for identical assets), Level 2 (significant other observable inputs) and Level 3 (significant unobservable inputs) of our international defined benefit plan assets: December 31, 2018 December 31, 2017 (in millions) Total (Level 1) (Level 2) (Level 3) Total (Level 1) (Level 2) (Level 3) Equity securities: U.S. companies $ 8 $ 8 International companies 29 29 Fixed income: International fixed income $ 428 $ 361 $ 67 440 $ 367 73 Insurance contracts 2 $ 2 2 $ 2 Mortgages 22 22 16 16 Cash equivalents 45 45 40 40 Total $ 497 $ 406 $ 67 $ 24 $ 535 $ 407 $ 110 $ 18 The tables below set forth a summary of changes in the fair value of the defined benefit plans Level 3 assets for the years ended December 31, 2018 and 2017 : Level 3 assets – Domestic Level 3 assets – International Year ended December 2018 Year ended December 2018 (in millions) Private equity Real estate Mortgages Insurance contracts Beginning balance at December 31, 2017 $ 105 $ 147 $ 16 $ 2 Actual return on plan assets relating to assets still held at the reporting date 15 9 Transfers in and/or out of level 3 (38) (8) 6 Ending balance at December 31, 2018 $ 82 $ 148 $ 22 $ 2 Level 3 assets – Domestic Level 3 assets – International Year ended December 2017 Year ended December 2017 (in millions) Private equity Real estate Mortgages Insurance contracts Beginning balance at December 31, 2016 $ 137 $ 150 $ 2 Actual return on plan assets relating to assets still held at the reporting date 7 6 Transfers in and/or out of level 3 (39) (9) $ 16 Ending balance at December 31, 2017 $ 105 $ 147 $ 16 $ 2 Credit Risk 59% of domestic plan assets are invested in long duration bonds. The average rating for these bonds is A. These bonds are subject to credit risk, such that a decline in credit ratings for the underlying companies, countries or assets (for asset-backed securities) would result in a decline in the value of the bonds. These bonds are also subject to default risk. 11. Employee Retirement Plans (continued) Currency Risk 12% of domestic assets are valued in non-U.S. dollar denominated investments that are subject to currency fluctuations. The value of these securities will decline if the U.S. dollar increases in value relative to the value of the currencies in which these investments are denominated. Liquidity Risk 8% of the domestic securities are invested in Level 3 securities. These are long-term investments in private equity and private real estate investments that may not mature or be sellable in the near-term without significant loss. At December 31, 2018 and 2017 , the amount of Corning common stock included in equity securities was not significant. Cash Flow Data The following reflects the gross benefit payments that are expected to be paid for our domestic and international defined benefit pension plans, the postretirement medical and life plans and the gross amount of annual Medicare Part D federal subsidy expected to be received (in millions): Expected benefit payments Domestic pension benefits International pension benefits Postretirement benefits 2019 $ 199 $ 23 $ 37 2020 $ 203 $ 30 $ 40 2021 $ 212 $ 28 $ 40 2022 $ 220 $ 31 $ 42 2023 $ 229 $ 30 $ 42 2024-2028 $ 1,242 $ 196 $ 213 Other Benefit Plans We offer defined contribution plans covering employees meeting certain eligibility requirements. Total consolidated defined contribution plan expense was $67 million, $60 million and $53 million for the years ended December 31, 2018 , 2017 and 2016 , respectively. |
Commitments, Contingencies and
Commitments, Contingencies and Guarantees | 12 Months Ended |
Dec. 31, 2018 | |
Commitments, Contingencies and Guarantees [Abstract] | |
Commitments, Contingencies and Guarantees | 12. Commitments, Contingen cies and Guarantees The amounts of our obligations follow (in millions): Amount of commitment and contingency expiration per period Total Less than 1 year 1 to 3 years 3 to 5 years 5 years and thereafter Performance bonds and guarantees $ 152 $ 23 $ 4 $ 2 $ 123 Stand-by letters of credit (1) 84 71 8 5 Credit facility to equity company 4 4 Subtotal of commitment expirations per period $ 240 $ 98 $ 12 $ 2 $ 128 Purchase obligations (2) $ 339 $ 214 $ 56 $ 28 $ 41 Capital expenditure obligations (3) 412 412 Total debt (4) 5,642 362 670 4,610 Interest on long-term debt (5) 5,117 231 450 408 4,028 Capital leases and financing obligations 393 4 11 132 246 Imputed interest on capital leases and financing obligations 205 20 38 37 110 Minimum rental commitments 581 82 133 111 255 Amended PCC Plan 185 50 85 50 Uncertain tax positions (6) 95 Subtotal of contractual obligation payments due by period (6) $ 12,969 $ 1,013 $ 1,135 $ 1,436 $ 9,290 Total commitments and contingencies (6) $ 13,209 $ 1,111 $ 1,147 $ 1,438 $ 9,418 (1) At December 31, 2018, $39 million of the $84 million was included in other accrued liabilities on our consolidated balance sheets. (2) Purchase obligations are enforceable and legally binding obligations which primarily consist of raw material and energy-related take-or-pay contracts. (3) Capital expenditure obligations primarily reflect amounts associated with our capital expansion activities. (4) Total debt above is stated at maturity value, and excludes interest rate swap gains/losses and bond discounts. (5) The estimate of interest payments assumes interest is paid through the date of maturity or expiration of the related debt, based upon stated rates in the respective debt instruments. (6) At December 31, 2018, $95 million was included on our balance sheet related to uncertain tax positions. 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, 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. These guarantees have various terms, and none of these guarantees are individually significant. We believe a significant majority of these guarantees and contingent liabilities will expire without being funded. Minimum rental commitments under leases outstanding at December 31, 2018 follow (in millions): 2019 2020 2021 2022 2023 2024 and thereafter $ 82 72 $ 61 $ 53 $ 58 $ 255 Total rental expense was $156 million, $135 million and $105 million for 2018, 2017 and 2016, respectively . Product warranty liability accruals at December 31, 2018 and 2017 were insignificant. 12. Commitments, Contingencies and Guarantees (continued) 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 December 31, 2018, 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 growth programs. Corning is a defendant in various lawsuits and is subject to various claims that arise in the normal course of business, the most significant of which are summarized below. 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. Asbestos Claims Corning and PPG Industries, Inc. each owned 50% of the capital stock of Pittsburgh Corning Corporation (“PCC”). PCC filed for Chapter 11 reorganization in 2000 and the Modified Third Amended Plan of Reorganization for PCC (the “Plan”) became effective in April 2016. At December 31, 2016, the Company’s liability under the Plan was $290 million, which is required to be paid through a series of fixed payments beginning in the second quarter of 2017. Payments of $35 million and $70 million were made in June 2018 and June 2017, respectively. At December 31, 2018, the total amount of payments due in years 2019 through 2022 is $185 million, of which $50 million is due in the second quarter of 2019 and is classified as a current liability. The remaining $ 135 million is classified as a non-current liability. Non-PCC Asbestos Claims Corning is a defendant in certain cases alleging injuries from asbestos unrelated to PCC (the “non-PCC asbestos claims”) which had been stayed pending the confirmation of the Plan. The stay was lifted on August 25, 2016. At December 31, 2018 and December 31, 2017, the amount of the reserve for these non-PCC asbestos claims was estimated to be $146 million and $14 7 million, respectively. The reserve balance as of December 31, 2018 represents the undiscounted projection of claims and related legal fees for the estimated life of the litigation. Dow Corning Chapter 11 Related Matters Until June 1, 2016, Corning and The Dow Chemical Company (“Dow”) each owned 50% of the common stock of Dow Corning Corporation (“Dow Corning”). On May 31, 2016, Corning and Dow realigned their ownership interest in Dow Corning. In connection with the realignment, Corning retained its indirect ownership interest in the Hemlock Semiconductor Group (HSG) and formed a new entity which had been capitalized by Dow Corning with $4.8 billion . Following the realignment, Corning no longer owned any interest in Dow Corning. In connection with the realignment, Corning agreed to indemnify Dow Corning for 50% of Dow Corning’s non-ordinary course, pre-closing liabilities to the extent such liabilities exceed the amounts reserved for them by Dow Corning as of May 31, 2016, including two legacy Dow Corning matters: the Dow Corning Breast Implant Litigation, and the Dow Corning Bankruptcy Pendency Interest Claims. Dow Corning Breast Implant Litigation In May 1995, Dow Corning filed for bankruptcy protection to address pending and claimed liabilities arising from many thousands of breast implant product lawsuits. On June 1, 2004, Dow Corning emerged from Chapter 11 with a Plan of Reorganization (the “Plan”) which provided for the settlement or other resolution of implant claims. The Plan also includes releases for Corning and Dow as shareholders in exchange for contributions to the Plan. 12. Commitments, Contingencies and Guarantees (continued) Under the terms of the Plan, Dow Corning has established and funded a Settlement Trust and a Litigation Facility, referred to above, to provide a means for tort claimants to settle or litigate their claims. Inclusive of insurance, Dow Corning has paid approximately $1.8 billion to the Settlement Trust. As of May 31, 2016, Dow Corning had recorded a reserve for breast implant litigation of $290 million. In the event Dow Corning’s total liability for these claims exceeds such amount, Corning may be required to indemnify Dow Corning for up to 50% of the excess liability. At December 31, 2018, Dow Corning had recorded a reserve for breast implant litigation of $263 million. Dow Corning Bankruptcy Pendency Interest Claims As a separate matter arising from the bankruptcy proceedings, Dow Corning is defending claims asserted by a number of commercial creditors who claim additional compounded interest at default and state statutory judgment rates as well as attorneys’ fees and other enforcement costs, during the period from May 1995 through June 2004. As of May 31, 2016, Dow Corning had recorded a reserve for these claims of $107 million. In the event Dow Corning’s liability for these claims exceeds such amount, Corning may be required to indemnify Dow Corning for up to 50% of the excess liability, subject to certain conditions and limits. At December 31, 2018, Dow Corning estimated the liability to commercial creditors to be $82 million . Environmental Litigation Corning has been named by the Environmental Protection Agency (the Agency) under the Superfund Act, or by state governments under similar state laws, as a potentially responsible party for 15 active hazardous waste sites. Under the Superfund Act, all parties who may have contributed any waste to a hazardous waste site, identified by the Agency, are jointly and severally liable for the cost of cleanup unless the Agency agrees otherwise. It is Corning’s policy to accrue for its estimated liability related to Superfund sites and other environmental liabilities related to property owned by Corning based on expert analysis and continual monitoring by both internal and external consultants. At December 31, 2018 and December 31, 2017 , Corning had accrued approximately $30 million (undiscounted) and $38 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. |
Hedging Activities
Hedging Activities | 12 Months Ended |
Dec. 31, 2018 | |
Hedging Activities [Abstract] | |
Hedging Activities | 13. Hedging Activi ties Corning is exposed to interest rate and foreign currency risks due to the movement of these rates. The areas in which exchange rate fluctuations affect us include: · Financial instruments and transactions denominated in foreign currencies, which impact earnings; and · The translation of net assets in foreign subsidiaries for which the functional currency is not the U.S. dollar, which impacts our net equity. Our most significant foreign currency exposures relate to the Japanese yen, South Korean won, New Taiwan dollar, Chinese yuan, the euro and British pound. We seek to mitigate the impact of exchange rate movements in our income statement by using over-the-counter (OTC) derivative instruments including foreign exchange forward and option contracts. In general, these hedge expirations coincide with the timing of the underlying foreign currency commitments and transactions. We are exposed to potential losses in the event of non-performance by our counterparties to these derivative contracts. However, we minimize this risk by maintaining our portfolio with a diverse group of highly-rated major financial institutions. We do not expect to record any losses as a result of such counterparty default. Neither we nor our counterparties are required to post collateral for these financial instruments. The Company qualified for and elected the end-user exception to the mandatory swap clearing requirement of the Dodd-Frank Act. 13. Hedging Activities (continued) Cash Flow Hedges Our cash flow hedging activities utilize OTC foreign exchange forward contracts and options to reduce the risk that movements in exchange rates will adversely affect the net cash flows resulting from the sale of products to customers and purchases from suppliers. Our cash flow hedging activity also uses interest rate derivatives including Treasury rate lock agreements to reduce the risk of increases in benchmark interest rates on the probable issuance of debt. In the second quarter of 201 8 , the Company entered into Treasury rate lock agreements to hedge against the variability in cash flows due to changes in the benchmark interest rate related to an anticipated debt issuance. The instruments were designated as cash flow hedges , and were settled on October 31, 2018 concurrent with the debt issuance. The settlement amount of $16 million received will be released from other comprehensive income into earnings when the corresponding interest expense occurs each period. Corning uses a regression analysis to monitor the effectiveness of its cash flow hedges both prospectively and retrospectively. Through December 31, 2018 , the hedge ineffectiveness related to these instruments was not material. Corning defers net gains and losses related to the effective portion of cash flow hedges into accumulated other comprehensive loss on the consolidated balance sheet until the hedged item impacts earnings. At December 31, 2018 , the amount expected to be reclassified into earnings within the next 12 months is a pre-tax net gain of $2 million. Fair Value Hedges In October of 2012, we entered into two interest rate swaps that are designated as fair value hedges and economically exchange a notional amount of $550 million of previously issued fixed rate long-term debt to floating rate debt. Under the terms of the swap agreements, we pay the counterparty a floating rate that is indexed to the one-month LIBOR rate. In the fourth quarter of 2018, Corning unwound the two interest rate swaps and discontinued the fair value hedge relationship accordingly. The net losses recorded in current period earnings were not material in the Consolidated Statements of Income (Loss). Corning utilizes the long haul method for effectiveness analysis, both retrospectively and prospectively. The analysis excludes the impact of credit risk from the assessment of hedge effectiveness. The amount recorded in current period earnings is in other expense, net, relative to ineffectiveness, and is not material for the year ended December 31, 2018 . Net gains and losses from fair value hedges and the effects of the corresponding hedged item are recorded on the same line item in the Consolidated Statements of Income (Loss). Undesignated Hedges Corning also uses OTC foreign exchange forward and option contracts that are not designated as hedging instruments for accounting purposes. The undesignated hedges limit exposures to foreign functional currency fluctuations related to certain subsidiaries’ monetary assets, monetary liabilities and net earnings in foreign currencies. A significant portion of the Company’s non-U.S. revenues and expenses are denominated in Japanese yen, South Korean won, New Taiwan dollar, Chinese yuan and euro. When these revenues and expenses are translated back to U.S. dollars, the Company is exposed to foreign exchange rate movements. To protect translated earnings against movements in these currencies, the Company has entered into a series of average rate forwards and other derivative instruments. 13. Hedging Activities (continued) The Company continued its foreign exchange hedge program in 2018 and entered into a series of average rate forwards, and purchased put or call options. These will hedge a significant portion of its projected yen exposure for the period of 2019-2022. As of December 31, 2018 , the U.S. dollar gross notional value of the yen average rate forwards program is $9.1 billion and $2.6 billion for zero-cost collars and purchased put or call options. The average rate forward program was also expanded to partially hedge the impact of the South Korean won, Chinese yuan, euro and British pound translation on the Company’s projected net income. As of December 31, 2018, these average rate forwards have a total notional value of $2.0 billion. The entire average rate forward program will settle net without obligation to deliver Japanese yen, Korean won, Chinese yuan, euro and British pound . With respect to the zero-cost collars, the gross notional amount includes the value of both put and call options. However, due to the nature of the zero-cost collars, only the put or the call option can be exercised at maturity. The fair values of these derivative contracts are recorded as either assets (gain position) or liabilities (loss position) on the Consolidated Balance Sheets. Changes in the fair value of the derivative contracts are recorded currently in earnings in the Translated earnings contract loss, net line of the Consolidated Statement of Income (Loss). The following table summarizes the notional amounts and respective fair values of Corning’s derivative financial instruments on a gross basis for December 31, 2018 and December 31, 2017 (in millions): Asset derivatives Liability derivatives Notional amount Fair value Fair value 2018 2017 Balance sheet location 2018 2017 Balance sheet location 2018 2017 Derivatives designated as hedging instruments Foreign exchange contracts (1) $ 391 $ 294 Other current assets $ 4 $ 20 Other accrued liabilities $ (2) Other assets 2 1 Interest rate contracts 550 Other liabilities $ (8) Derivatives not designated as hedging instruments Foreign exchange contracts, other 900 599 Other current assets 5 2 Other accrued liabilities (7) (7) Translated earnings contracts 13,620 14,275 Other current assets 94 176 Other accrued liabilities (47) (34) Other assets 43 66 Other liabilities (386) (325) Total derivatives $ 14,911 $ 15,718 $ 148 $ 265 $ (442) $ (374) (1) Cash flow hedges with a typical duration of 24 months or less. 13. Hedging Activities (continued) The following tables summarize the effect on the consolidated financial statements relating to Corning’s derivative financial instruments (in millions): Effect of derivative instruments on the consolidated financial statements for the years ended December 31 Derivatives in hedging (Loss)/gain recognized in other comprehensive income (OCI) Location of gain/(loss) reclassified from accumulated OCI into income Gain/(loss) reclassified from accumulated OCI into income ineffective/effective (1) relationships 2018 2017 2016 effective/ineffective 2018 2017 2016 Cash flow hedges Net sales $ 1 $ 4 Interest rate hedge $ 16 Cost of sales $ 13 (12) (36) Foreign exchange contracts (5) $ 38 $ (33) Other (expense) income, net (1) (2) (2) Total cash flow hedges $ 11 $ 38 $ (33) $ 12 $ (13) $ (34) Gain (loss) recognized in income Undesignated derivatives Location of gain/(loss) recognized in income 2018 2017 2016 Foreign exchange contracts – balance sheet Translated earnings contract gain (loss), net $ 27 $ (11) $ 4 Foreign exchange contracts – loans Translated earnings contract (loss) gain, net (5) (5) (31) Translated earnings contracts Translated earnings contract (loss) gain, net (93) (121) (448) Total undesignated $ (71) $ (137) $ (475) (1) There were no material amounts of ineffectiveness for 2018, 2017 and 2016. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Measurements [Abstract] | |
Fair Value Measurements | 14. Fair Value Meas urements 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. 14. Fair Value Measurements (continued) The following tables provide fair value measurement information for the Company’s major categories of financial assets and liabilities measured on a recurring basis: Fair value measurements at reporting date using December 31, Quoted prices in active markets for identical assets Significant other observable inputs Significant unobservable inputs (in millions) 2018 (Level 1) (Level 2) (Level 3) Current assets: Other current assets (1) $ 103 $ 103 Non-current assets: Investments (2) $ 16 $ 16 Other assets (1) $ 45 $ 45 Current liabilities: Other accrued liabilities (1) $ 56 $ 56 Non-current liabilities: Other liabilities (1)(3) $ 406 $ 386 $ 20 (1) Derivative assets and liabilities include foreign exchange contracts which are measured using observable inputs for similar assets and liabilities. (2) One of the Company’s equity securities was measured using unobservable (Level 3) inputs, in the amount of $16 million. (3) Other liabilities include contingent consideration that was measured using unobservable (Level 3) inputs, in the amount of $20 million. Fair value measurements at reporting date using December 31, Quoted prices in active markets for identical assets Significant other observable inputs Significant unobservable inputs (in millions) 2017 (Level 1) (Level 2) (Level 3) Current assets: Short-term investments Other current assets (1) $ 497 $ 197 $ 300 Non-current assets: Other assets (1)(2) $ 68 $ 68 Current liabilities: Other accrued liabilities (1) $ 44 $ 42 $ 2 Non-current liabilities: Other liabilities (1)(2) $ 353 $ 333 $ 20 (1) Derivative assets and liabilities include foreign exchange contracts which are measured using observable quoted prices for similar assets and liabilities. (2) At December 31, 2017, other current assets, other accrued liabilities and other liabilities include contingent consideration that was measured using unobservable (level 3) inp uts, in the amounts of $300 million, $2 million and $20 million, respectively. As a result of the acquisition of Samsung Corning Precision Materials in January 2014, the Company had contingent consideration that was measured using unobservable (Level 3) inputs in an option pricing model. The fair value of the contingent consideration was calculated to be $ 300 million as of December 31, 2017. This amount was settled in cash and received in June 2018. There were no significant financial assets and liabilities measured on a nonrecurring basis during the years ended December 31, 2018 and 2017 . |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2018 | |
Shareholders' Equity [Abstract] | |
Shareholders' Equity | 15. Shareho lders’ Equity Common Stock Dividends On February 1, 2017, Corning’s Board of Directors declared a 14.8% increase in the Company’s quarterly common stock dividend, which increased the quarterly dividend from $0.135 to $0.155 per share of common stock, beginning with the dividend paid in the first quarter of 2017. On February 6, 2018, Corning’s Board of Directors declared a 16.1% increase in the Company’s quarterly common stock dividend, which increased the quarterly dividend from $0.155 to $0.18 per share of common stock, beginning with the dividend paid in the first quarter of 2018. On February 6, 2019, Corning’s Board of Directors declared an 11.1% increase in the Company’s quarterly common stock dividend, which increased the quarterly dividend from $0.18 to $0.20 per share of common stock, beginning with the dividend paid in the first quarter of 2019. This increase marks the eighth dividend increase since October 2011. Fixed Rate Cumulative Convertible Preferred Stock, Series A On January 15, 2014, Corning designated a new series of its preferred stock as Fixed Rate Cumulative Convertible Preferred Stock, Series A, par value $100 per share, and issued 1,900 shares of preferred stock at an issue price of $1 million per share, for an aggregate issue price of $1.9 billion, to Samsung Display with the acquisition of its equity interest in Samsung Corning Precision Materials. Corning also issued to Samsung Display an additional amount of preferred stock at closing, for an aggregate issue price of $400 million in cash. Dividends on the preferred stock are cumulative and accrue at the annual rate of 4.25% on the per share issue price of $1 million. The dividends are payable quarterly as and when declared by the Company’s Board of Directors. The preferred stock ranks senior to our common stock with respect to payment of dividends and rights upon liquidation. The preferred stock is not redeemable except in the case of a certain deemed liquidation event, the occurrence of which is under the control of the Company. The preferred stock is convertible at the option of the holder and the Company upon certain events, at a conversion rate of 50,000 shares of Corning’s common stock per one share of preferred stock, subject to certain anti-dilution provisions. As of December 31, 2018, the preferred stock has not been converted, and none of the anti-dilution provisions have been triggered. Following the seventh anniversary of the closing of the acquisition of Samsung Corning Precision Materials, the preferred stock will be convertible, in whole or in part, at the option of the holder. The Company has the right, at its option, to cause some or all the shares of preferred stock to be converted into common stock, if, for 25 trading days (whether or not consecutive) within any period of 40 consecutive trading days, the closing price of common stock exceeds $35 per share. If the right becomes exercisable before the seventh anniversary of the closing, the Company must first obtain the written approval of the holders of a majority of the preferred stock before exercising its conversion right. The preferred stock does not have any voting rights except as may be required by law. Share Repurchases 2016 Share Repurchases In July 2016, Corning entered into an accelerated share repurchase agreement (the “2016 ASR agreement”) under the 2015 Repurchase Program to repurchase Corning’s common stock. Under the 2016 ASR agreement, Corning made a $2.0 billion payment in July and received an initial delivery of approximately 74.4 million shares of Corning common stock on the same day. The transaction was structured with two tranches resulting in a total of 12.3 million shares being delivered to Corning in the fourth quarter of 2016, for a total of 86.7 million shares repurchased under the 2016 ASR agreement. In addition to the 2016 ASR agreement, during the year ended December 31, 2016, the Company repurchased 110 million shares of common stock on the open market for approximately $2.2 billion as part of its 2015 Repurchase Programs, resulting in a total of 197.1 million shares repurchased for $4.2 billion during 2016. 15. Shareholders’ Equity (continued) 2017 Share Repurchases In December 2016, Corning’s Board of Directors approved a $4 billion share repurchase program with no expiration (the “2016 Repurchase Program”). In the second quarter of 2017, Corning entered into and finalized an accelerated share repurchase agreement under which we paid $500 million for a total of 17.1 million shares. In the third quarter of 2017, Corning entered into and finalized an additional accelerated share repurchase agreement under which we paid $500 million for a total of 17.2 million shares. Collectively, these two agreements represent the “2017 ASR agreements”. In addition to the 2017 ASR agreements, during the year ended December 31, 2017, the Company repurchased 50.1 million shares of common stock on the open market for approximately $1.4 billion, resulting in a total of 84.4 million shares repurchased for approximately $2.4 billion during 2017. 2018 Share Repurchases On April 26, 2018, Corning’s Board of Directors approved a $2 billion share repurchase program with no expiration (the “2018 Repurchase Program”). During the year ended December 31, 2018, the Company repurchased 74.8 million shares of common stock on the open market for approximately $2.2 billion, respectively, as part of its 2016 and 2018 Repurchase Programs. The following table presents changes in capital stock for the period from January 1, 2016 to December 31, 2018 (in millions): Common stock Treasury stock Shares Par value Shares Cost Balance at December 31, 2015 1,681 $ 840 (551) $ (9,725) Shares issued to benefit plans and for option exercises 10 6 (2) Shares purchased for treasury (214) (4,409) Other, net (16) Balance at December 31, 2016 1,691 $ 846 (765) $ (14,152) Shares issued to benefit plans and for option exercises 17 8 (2) Shares purchased for treasury (84) (2,462) Other, net (1) (17) Balance at December 31, 2017 1,708 $ 854 (850) $ (16,633) Shares issued to benefit plans and for option exercises 5 3 Shares purchased for treasury (75) (2,230) Other, net (7) Balance at December 31, 2018 1,713 $ 857 (925) $ (18,870) 15. Shareholders’ Equity (continued) Accumulated Other Comprehensive Loss A summary of changes in the components of accumulated other comprehensive loss, including our proportionate share of equity method investee’s accumulated other comprehensive loss, is as follows (in millions) (1) : Foreign currency translation adjustments and other Unamortized actuarial gains (losses) and prior service (costs) credits Net unrealized gains (losses) on investments Net unrealized gains (losses) on designated hedges Accumulated other comprehensive loss Balance at December 31, 2015 $ (1,171) $ (588) $ (14) $ (38) $ (1,811) Other comprehensive income before reclassifications (4) $ (89) $ (63) $ (2) $ (21) $ (175) Amounts reclassified from accumulated other comprehensive income (loss) (2) 40 22 62 Equity method affiliates (3)(7) (15) 264 (1) 248 Net current-period other comprehensive (loss) income (104) 241 (3) 1 135 Balance at December 31, 2016 $ (1,275) $ (347) $ (17) $ (37) $ (1,676) Other comprehensive income before reclassifications (5) $ 711 $ 13 $ 33 $ 757 Amounts reclassified from accumulated other comprehensive income (loss) (2) 17 $ 14 11 42 Equity method affiliates (3) 35 35 Net current-period other comprehensive income 746 30 14 44 834 Balance at December 31, 2017 $ (529) $ (317) $ (3) $ 7 $ (842) Other comprehensive income before reclassifications (6) $ (180) $ (84) $ (1) $ 9 $ (256) Amounts reclassified from accumulated other comprehensive income (loss) (2) 103 (10) 93 Equity method affiliates (3) (5) (5) Net current-period other comprehensive (loss) income (185) 19 (1) (1) (168) Balance at December 31, 2018 $ (714) $ (298) $ (4) $ 6 $ (1,010) (1) All amounts are after tax. Amounts in parentheses indicate debits to accumulated other comprehensive income. (2) Tax effects of reclassifications are disclosed separately in this Note 15. (3) Tax effects related to equity method affiliates are not significant in the reported periods except for the tax expense of $20 million related to the pension component in 2016. (4) Amounts are net of total tax benefit of $52 million, including $36 million related to the retirement plans component, $12 million related to the hedges component, $3 million related to the foreign currency translation adjustments and $1 million related to the investments component. (5) Amounts are net of total tax expense of $97 million, including $88 million related to the foreign currency translation adjustments, $5 million related to the hedges component and $4 million related to the retirement plans component. (6) Amounts are net of total tax benefit of $64 million, including $34 million related to the foreign currency translation adjustments, $33 million related to the retirement plans component and $(3) million related to the hedges component. (7) Most of the changes in equity method affiliate accumulated other comprehensive income components in 2016 relate to disposal transactions with amounts reclassified to the income statement. 15. Shareholders’ Equity (continued) (In millions) Reclassifications Out of Accumulated Other Comprehensive Income (AOCI) by Component (1) Amount reclassified from AOCI Affected line item Years ended December 31, in the consolidated Details about AOCI Components 2018 2017 2016 statements of income (loss) Amortization of net actuarial loss $ (138) $ (20) $ (62) (2) Amortization of prior service cost (6) (2) (1) (2) (144) (22) (63) Total before tax 41 5 23 Tax benefit $ (103) $ (17) $ (40) Net of tax Realized losses on investments $ (3) Other expense, net (11) Tax expense $ (14) Net of tax Realized gains (losses) on designated hedges $ 1 $ 4 Sales $ 13 (12) (36) Cost of sales (1) (2) (2) Other expense, net 12 (13) (34) Total before tax (2) 2 12 Tax (expense) benefit $ 10 $ (11) $ (22) Net of tax Total reclassifications for the period $ (93) $ (42) $ (62) Net of tax (1) Amounts in parentheses indicate debits to the statement of income. (2) These accumulated other comprehensive income components are included in net periodic pension cost. See Note 11 (Employee Retirement Plans) to the Consolidated Financial Statements for additional details. |
Earnings (Loss) Per Common Shar
Earnings (Loss) Per Common Share | 12 Months Ended |
Dec. 31, 2018 | |
Earnings (Loss) Per Common Share [Abstract] | |
Earnings (Loss) Per Common Share | 16. Earnings (Loss) Per Com mon Share Basic earnings (loss) per common share are computed by dividing income attributable to common shareholders by the weighted-average number of common shares outstanding for the period. Diluted earnings (loss) per common share assumes the issuance of common shares for all potentially dilutive securities outstanding. The reconciliation of the amounts used to compute basic and diluted earnings (loss) per common share from operations follows (in millions, except per share amounts): Years ended December 31, 2018 2017 2016 Net income (loss) attributable to Corning Incorporated $ 1,066 $ (497) $ 3,695 Less: Series A convertible preferred stock dividend 98 98 98 Net income (loss) available to common stockholders - basic 968 (595) 3,597 Plus: Series A convertible preferred stock dividend 98 98 Net income (loss) available to common stockholders - diluted $ 1,066 $ (595) $ 3,695 Weighted-average common shares outstanding - basic 816 895 1,020 Effect of dilutive securities: Stock options and other dilutive securities 10 9 Series A convertible preferred stock (1) 115 115 Weighted-average common shares outstanding - diluted 941 895 1,144 Basic earnings (loss) per common share $ 1.19 $ (0.66) $ 3.53 Diluted earnings (loss) per common share $ 1.13 $ (0.66) $ 3.23 Anti-dilutive potential shares excluded from diluted earnings (loss) per common share: Series A convertible preferred stock dividend (1) 115 Employee stock options and awards 2 13 15 Accelerated share repurchase forward contract Total 2 128 15 (1) For the year ended December 31, 2017, the Series A preferred stock was anti-dilutive and therefore excluded from the calculation of diluted earnings (loss) per share. |
Reportable Segments
Reportable Segments | 12 Months Ended |
Dec. 31, 2018 | |
Reportable Segments [Abstract] | |
Reportable Segments | 17. Reportable Segm ents Our reportable segments are as follows: · Display Technologies – manufactures glass substrates for flat panel liquid crystal displays and other high performance display panels. · Optical Communications – manufactures carrier network and enterprise network components for the telecommunications industry. · 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. · Environmental Technologies – manufactures ceramic substrates and filters for automotive and diesel applications. · Life Sciences – manufactures glass and plastic labware, equipment, media and reagents to provide workflow solutions for scientific applications. All other 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 the pharmaceutical technologies, auto glass and new product lines and development projects, as well as certain corporate investments such as Eurokera and Keraglass equity affiliates. 17. Reportable Segments (continued) Effective beginning in the first quarter of 2018, the Company has changed its measurement of segment sales and segment net income, and has recast prior periods presented based on the new methodology. Included in this new measurement is a change in our segment tax rate to 21% to better reflect the new corporate tax rate under the 2017 Tax Act. Additionally, the impact of changes in the Japanese yen, Korean won, Chinese yuan and New Taiwan dollar will be excluded from segment sales and segment net income for the Display Technologies and Specialty Materials segments, and certain income and expenses that were previously allocated to our segments are now included in the unallocated amounts in the reconciliation of reportable segment net income to consolidated net income. These include items that are not used by our chief operating decision maker (“CODM”) in evaluating the results of or in allocating resources to our segments and include the following items: the impact of our translated earnings contracts; acquisition-related costs; discrete tax items and other tax-related adjustments; litigation, regulatory and other legal matters; restructuring, impairment and other charges; adjustments relating to acquisitions; and other non-recurring non-operational items. Although we exclude these amounts from segment results, they are included in reported consolidated results. 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. 17. Reportable Segments (continued) The following provides historical segment information as described above: Segment Information (in millions) Display Technologies Optical Communications Specialty Materials Environmental Technologies Life Sciences All Other Total For the year ended December 31, 2018 Segment net sales $ 3,276 $ 4,192 $ 1,479 $ 1,289 $ 946 $ 216 $ 11,398 Depreciation (1) $ 585 $ 218 $ 136 $ 119 $ 50 $ 38 $ 1,146 Research, development and engineering expenses (2) $ 106 $ 212 $ 163 $ 118 $ 20 $ 231 $ 850 Income tax (provision) benefit $ (221) $ (163) $ (83) $ (55) $ (31) $ 76 $ (477) Net income (loss) (3) $ 835 $ 592 $ 313 $ 208 $ 117 $ (281) $ 1,784 Investment in affiliated companies, at equity $ 131 $ 3 $ 6 $ 1 $ 171 $ 312 Segment assets (4) $ 8,794 $ 3,042 $ 2,176 $ 1,633 $ 585 $ 1,018 $ 17,248 Capital expenditures $ 755 $ 417 $ 242 $ 273 $ 55 $ 329 $ 2,071 For the year ended December 31, 2017 Segment net sales $ 3,137 $ 3,545 $ 1,403 $ 1,106 $ 879 $ 188 $ 10,258 Depreciation (1) $ 534 $ 193 $ 129 $ 124 $ 52 $ 45 $ 1,077 Research, development and engineering expenses (2) $ 88 $ 174 $ 152 $ 113 $ 22 $ 211 $ 760 Income tax (provision) benefit $ (234) $ (129) $ (79) $ (44) $ (25) $ 69 $ (442) Net income (loss) (3) $ 888 $ 469 $ 301 $ 165 $ 95 $ (259) $ 1,659 Investment in affiliated companies, at equity $ 134 $ 2 $ 3 $ 140 $ 279 Segment assets (4) $ 8,662 $ 2,599 $ 2,155 $ 1,402 $ 538 $ 824 $ 16,180 Capital expenditures $ 795 $ 505 $ 223 $ 157 $ 42 $ 156 $ 1,878 For the year ended December 31, 2016 Segment net sales $ 3,288 $ 3,005 $ 1,124 $ 1,032 $ 839 $ 152 $ 9,440 Depreciation (1) $ 598 $ 175 $ 109 $ 129 $ 58 $ 50 $ 1,119 Research, development and engineering expenses (2) $ 45 $ 147 $ 126 $ 102 $ 24 $ 191 $ 635 Income tax (provision) benefit $ (253) $ (96) $ (61) $ (42) $ (24) $ 55 $ (421) Net income (loss) (3) $ 953 $ 351 $ 228 $ 159 $ 90 $ (220) $ 1,561 Investment in affiliated companies, at equity $ 41 $ (1) $ 32 $ 252 $ 324 Segment assets (4) $ 8,032 $ 2,010 $ 1,604 $ 1,267 $ 504 $ 750 $ 14,167 Capital expenditures $ 464 $ 245 $ 120 $ 97 $ 39 $ 56 $ 1,021 (1) Depreciation expense for Corning’s reportable segments includes an allocation of depreciation of corporate property not specifically identifiable to a segment. (2) Research, development and engineering expenses include direct project spending that is identifiable to a segment. (3) Many of Corning’s administrative and staff functions are performed on a centralized basis. Where practicable, Corning charges these expenses to segments based upon the extent to which each business uses a centralized function. Other staff functions, such as corporate finance, human resources and legal are allocated to segments, primarily as a percentage of sales. (4) Segment assets include inventory, accounts receivable, property, plant and equipment, net of accumulated depreciation, and associated equity companies and cost investments. A reconciliation of reportable segments and All Other net sales to consolidated net sales follows (in millions): Years ended December 31, 2018 2017 2016 Net sales of reportable segments and All Other $ 11,398 $ 10,258 $ 9,440 Impact of foreign currency movements (1) (108) (142) (50) Net sales $ 11,290 $ 10,116 $ 9,390 (1) This amount primarily represents the impact of foreign currency adjustments in the Display Technologies segment. 17. Reportable Segments (continued) A reconciliation of reportable segment net income (loss) to consolidated net income follows (in millions): Years ended December 31, 2018 2017 2016 Net income of reportable segments $ 2,065 $ 1,918 $ 1,781 Net loss of All Other (281) (259) (220) Unallocated amounts: Impact of foreign currency movements not included in segment net income (loss) (157) (168) (85) Loss on foreign currency hedges related to translated earnings (78) (121) (448) Translation loss on Japanese yen-denominated debt (18) (14) Litigation, regulatory and other legal matters (124) 12 (153) Research, development, and engineering expense (134) (106) (107) Equity in earnings of affiliated companies (1) 390 352 288 Amortization of intangibles (93) (75) (64) Interest expense, net (149) (110) (127) Pension mark to market (145) (22) (67) Gain on realignment of equity investment 2,676 Income tax benefit (provision) 42 (1,709) 424 Other corporate items (252) (195) (203) Net income (loss) $ 1,066 $ (497) $ 3,695 (1) Primarily represents the equity earnings of HSG in 2018 and 2017, and Dow Corning in 2016. A reconciliation of reportable segment assets to consolidated total assets follows (in millions): December 31, 2018 2017 2016 Total assets of reportable segments $ 16,230 $ 15,356 $ 13,417 Non-reportable segments 1,018 824 750 Unallocated amounts: Current assets (1) 3,065 5,315 6,070 Investments (2) 64 61 12 Property, plant and equipment, net (3) 1,928 1,628 1,681 Other non-current assets (4) 5,200 4,310 5,969 Total assets $ 27,505 $ 27,494 $ 27,899 (1) Includes current corporate assets, primarily cash, short-term investments, current portion of long-term derivative assets and deferred taxes. (2) Primarily represents corporate equity and cost basis investments. Asset balance does not include equity method affiliate liability balance of $105 and $241 for HSG in 2017 and 2016, respectively. (3) Represents corporate property not specifically identifiable to an operating segment. (4) Includes non-current corporate assets, pension assets, long-term derivative assets and deferred taxes. 17. Reportable Segments (continued) Selected financial information concerning the Company’s product lines and reportable segments follow (in millions): Years Ended December 31, Revenues from External Customers 2018 2017 2016 Display Technologies $ 3,276 $ 3,137 $ 3,288 Optical Communications Carrier network 3,084 2,720 2,274 Enterprise network 1,108 825 731 Total Optical Communications 4,192 3,545 3,005 Specialty Materials Corning Gorilla Glass 1,069 1,044 807 Advanced optics and other specialty glass 410 359 317 Total Specialty Materials 1,479 1,403 1,124 Environmental Technologies Automotive and other 719 627 585 Diesel 570 479 447 Total Environmental Technologies 1,289 1,106 1,032 Life Sciences Labware 536 524 512 Cell culture products 410 355 327 Total Life Science 946 879 839 All Other 216 188 152 $ 11,398 $ 10,258 $ 9,440 17. Reportable Segments (continued) Information concerning principal geographic areas was as follows (in millions): 2018 2017 2016 Net sales (2) Long-lived assets (1) Net sales (2) Long-lived assets (1) Net sales (2) Long-lived assets (1) North America United States $ 3,569 $ 7,383 $ 3,146 $ 6,605 $ 2,625 $ 6,318 Canada 296 127 287 144 282 142 Mexico 53 200 27 174 50 134 Total North America 3,918 7,710 3,460 6,923 2,957 6,594 Asia Pacific Japan 415 1,148 476 1,119 455 1,008 Taiwan 921 2,326 900 2,357 857 2,347 China 2,716 2,811 2,247 2,125 2,092 1,524 Korea 1,259 3,736 1,337 3,869 1,464 3,413 Other 436 85 378 71 363 167 Total Asia Pacific 5,747 10,106 5,338 9,541 5,231 8,459 Europe Germany 451 508 426 236 363 154 Other 905 1,155 701 1,108 617 1,125 Total Europe 1,356 1,663 1,127 1,344 980 1,279 All Other 377 40 333 46 272 44 Total $ 11,398 $ 19,519 $ 10,258 $ 17,854 $ 9,440 $ 16,376 (1) Long-lived assets primarily include investments, plant and equipment, goodwill and other intangible assets. (2) Net sales are attributed to countries based on location of customer. |
Schedule II - Valuation Account
Schedule II - Valuation Accounts and Reserves | 12 Months Ended |
Dec. 31, 2018 | |
Valuation Accounts and Reserves [Abstract] | |
Schedule II - Valuation Accounts and Reserves | Corning Incorporated and S ubsidiary Companies Schedule II – Valuation and Qualifying Accounts (in millions) Year ended December 31, 2018 Balance at beginning of period Additions Net deductions and other Balance at end of period Doubtful accounts and allowances $ 60 $ 4 $ 64 Deferred tax valuation allowance $ 456 $ 17 $ 156 $ 317 Year ended December 31, 2017 Balance at beginning of period Additions Net deductions and other Balance at end of period Doubtful accounts and allowances $ 59 $ 1 $ 60 Deferred tax valuation allowance $ 270 $ 241 $ 55 $ 456 Reserves for accrued costs of business restructuring $ 5 $ 5 Year ended December 31, 2016 Balance at beginning of period Additions Net deductions and other Balance at end of period Doubtful accounts and allowances $ 48 $ 11 $ 59 Deferred tax valuation allowance $ 238 $ 55 $ 23 $ 270 Reserves for accrued costs of business restructuring $ 3 $ 15 $ 13 $ 5 |
Quarterly Operating Results
Quarterly Operating Results | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Operating Results [Abstract] | |
Quarterly Operating Results | Quarterly Opera ting Results (unaudited) (In millions, except per share amounts) 2018 First quarter Second quarter Third quarter Fourth quarter Total year Net sales $ 2,500 $ 2,747 $ 3,008 $ 3,035 $ 11,290 Gross margin $ 955 $ 1,072 $ 1,232 $ 1,202 $ 4,461 Equity in earnings of affiliated companies $ 39 $ 31 $ 32 $ 288 $ 390 Provision for income taxes $ (124) $ (126) $ (133) $ (54) $ (437) Net (loss) income attributable to Corning Incorporated $ (589) $ 738 $ 625 $ 292 $ 1,066 Basic (loss) earnings per common share $ (0.72) $ 0.87 $ 0.75 $ 0.27 $ 1.19 Diluted (loss) earnings per common share $ (0.72) $ 0.78 $ 0.67 $ 0.26 $ 1.13 2017 First quarter Second quarter Third quarter Fourth quarter Total year Net sales $ 2,375 $ 2,497 $ 2,607 $ 2,637 $ 10,116 Gross margin $ 951 $ 987 $ 1,050 $ 1,032 $ 4,020 Equity in earnings of affiliated companies $ 80 $ 37 $ 31 $ 213 $ 361 Benefit (provision) for income taxes (1) $ 66 $ (153) $ (89) $ (1,978) $ (2,154) Net income (loss) attributable to Corning Incorporated $ 86 $ 439 $ 390 $ (1,412) $ (497) Basic earnings (loss) per common share $ 0.07 $ 0.46 $ 0.41 $ (1.66) $ (0.66) Diluted earnings (loss) per common share $ 0.07 $ 0.42 $ 0.39 $ (1.66) $ (0.66) (1) In December 2017, the U.S. enacted the 2017 Tax Act which resulted in significant changes to our provision for income taxes during the fourth quarter of 2017. Refer t o Note 4 (Income Taxes) to the Consolidated F inancial S tatements for additional information. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policy) | 12 Months Ended |
Dec. 31, 2018 | |
Summary of Significant Accounting Policies [Abstract] | |
Organization | Organization Corning Incorporated is a provider of high-performance glass for notebook computers, flat panel desktop monitors, display televisions, and other information display applications; carrier network and enterprise network products for the telecommunications industry; ceramic substrates for gasoline and diesel engines in automotive and heavy duty vehicle markets; laboratory products for the scientific community and specialized polymer products for biotechnology applications; advanced optical materials for the semiconductor industry and the scientific community; and other technologies. In these notes, the terms “Corning,” “Company,” “we,” “us,” or “our” mean Corning Incorporated and subsidiary companies. |
Basis of Presentation and Principles of Consolidation | Basis of Presentation and Principles of Consolidation Our consolidated financial statements were prepared in conformity with generally accepted accounting principles in the U.S. and include the assets, liabilities, revenues and expenses of all majority-owned subsidiaries over which Corning exercises control. The equity method of accounting is used for investments in affiliated companies that are not controlled by Corning and in which our interest is generally between 20% and 50% and we have significant influence over the entity. Our share of earnings or losses of affiliated companies, in which at least 20% of the voting securities is owned and we have significant influence but not control over the entity, is included in consolidated operating results. For our investments in companies that we do not control and for which we do not have the ability to exercise significant influence over operating and financial policies, we use the fair value method to account for the investments if readily determinable fair values are available. For the investments without readily determinable fair values, we measure them at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment. All material intercompany accounts, transactions and profits are eliminated in consolidation. On January 1, 2018, we adopted Accounting Standards Update (“ASU”) No. 2014-09 ASC (Topic 606), Revenue from Contracts with Customers, and applied the modified retrospective method of accounting to those contracts which were not completed as of January 1, 2018. Results for reporting periods beginning after January 1, 2018 are presented under Topic 606, while prior period amounts are not adjusted and continue to be reported in accordance with our historic accounting under ASC Topic 605 “Revenue Recognition”. Because the impact of adopting the standard on Corning’s financial statements was immaterial, we have not made an adjustment to opening retained earnings. One of Corning’s equity affiliates is currently assessing the potential impact of adopting ASU 2014-09 on its financial statements and will adopt the standard on January 1, 2019. The current assessment indicates that the impact of adoption to Corning’s financial statements will be an adjustment to 2019 beginning retained earnings of approximately $2 3 0 million relating to timing of revenue recognition for open performance obligations as measured at January 1, 2019 under the new standard. On January 1, 2018, Corning adopted ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments, which refines the classification of certain aspects of the cash flow statement in regards to debt prepayment, settlement of debt instruments, contingent consideration payments, proceeds from insurance claims and life insurance policies, distribution from equity method investees, beneficial interests in securitization transactions and separately identifiable cash flows. The impact of adopting the standard on Corning’s financial statements was not material. 1. Summary of Significant Accounting Policies (continued) On January 1, 2018, we adopted ASU No. 2017-07, Compensation—Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost. The service cost component of net periodic pension and postretirement benefit cost is presented with other current compensation costs in operating income. The remaining components are included in the line item Other expense, net, in the consolidated statements of income (loss). Corning has applied the practical expedient which permits it to use the amounts disclosed in its pension and other postretirement benefit plan note for the prior comparative periods as the estimation basis for applying the retrospective presentation requirements . The impact of adopting the standard on Corning’s financial statements was not material. Certain prior year amounts have been reclassified to conform to the current year ’s presentation. These reclassifications had no impact on our results of operations, financial position, or changes in shareholders’ equity. |
Dow Corning | Dow Corning Prior to May 31, 2016, Corning and Dow Chemical each owned half of Dow Corning, an equity company headquartered in Michigan that manufactures silicone products worldwide. Dow Corning was the majority-owner of HSG, a market leader in the production of high purity polycrystalline silicon for the semiconductor and solar energy industries. On May 31, 2016, Corning completed the strategic realignment of its equity investment in Dow Corning pursuant to the Transaction Agreement announced in December 2015. Under the terms of the Transaction Agreement, Corning exchanged with Dow Corning its 50% stock interest in Dow Corning for 100% of the stock of a newly formed entity, which held an equity interest in HSG and approximately $4.8 billion in cash. Prior to realignment, HSG, a consolidated subsidiary of Dow Corning, was an indirect equity investment of Corning. Upon completion of the exchange, Corning now has a direct equity investment in HSG. Refer to Note 5 (Investments) to the Consolidated Financial Statements for additional information. |
Use of Estimates | Use of Estimates The preparation of financial statements requires management to make estimates and assumptions that affect amounts reported in the consolidated financial statements and related notes. Significant estimates and assumptions in these consolidated financial statements include estimates associated with revenue recognition, restructuring charges, goodwill and long-lived asset impairment tests, estimates of acquired assets and liabilities, estimates of fair value of investments, equity interests, environmental and legal liabilities, income taxes and deferred tax valuation allowances, assumptions used in calculating pension and other postretirement employee benefit expenses and the fair value of share-based compensation. Due to the inherent uncertainty involved in making estimates, actual results reported in future periods may be different from these estimates. |
Revenue Recognition | Revenue Recognition The majority of our revenues are generated by delivery of products to our customers and recognized at a point in time based on our evaluation of when the customer obtains control of the products. Revenue is recognized when all performance obligations under the terms of a contract with our customer are satisfied, and control of the product has been transferred to the customer. If customer acceptance clauses are present and it cannot be objectively determined that control has been transferred, revenue is only recorded when customer acceptance is received and all performance obligations have been satisfied. Sales of goods typically do not include multiple product and/or service elements. Revenue is measured as the amount of consideration we expect to receive in exchange for transferring goods or providing services. Sales tax, value-added tax, and other taxes we collect concurrent with revenue-producing activities are excluded from revenue. Incidental contract costs that are not material in the context of the delivery of goods and services are recognized as expense. 1. Summary of Significant Accounting Policies (continued) At the time revenue is recognized, allowances are recorded, with the related reduction to revenue, for estimated product returns, allowances and price discounts based upon historical experience and related terms of customer arrangements. Where we have offered product warranties, we also establish liabilities for estimated warranty costs based upon historical experience and specific warranty provisions. Warranty liabilities are adjusted when experience indicates the expected outcome will differ from initial estimates of the liability. In addition, Corning also has contractual arrangements with certain customers in which we recognize revenue over time. The performance obligations under these contracts generally require services to be performed over time, resulting in either a straight-line amortization method or an input method using incurred and forecasted expense to predict revenue recognition patterns which follows satisfaction of the performance obligation. |
Research and Development Costs | Research and Development Costs Research and development costs are charged to expense as incurred. Research and development costs totaled $807 million in 2018, $689 million in 2017 and $637 million in 2016 . |
Foreign Currency Translation and Transactions | Foreign Currency Translation and Transactions The determination of the functional currency for Corning’s foreign subsidiaries is made based on the appropriate economic factors. For most foreign operations, the local currencies are generally considered to be the functional currencies. Corning’s most significant exception is our Taiwanese subsidiary, which uses the Japanese yen as its functional currency. For all transactions denominated in a currency other than a subsidiary’s functional currency, exchange rate gains and losses are included in income for the period in which the exchange rates changed. We recorded a net loss of $43 million and a net gain of $20 million for foreign currency transaction activity for the years ended December 31, 2018 and 2017, respectively. These amounts were recorded in the line item Other expense, net in the Consolidated Statements of Income (Loss). Foreign subsidiary functional currency balance sheet accounts are translated at current exchange rates, and statement of operations accounts are translated at average exchange rates for the year. Translation gains and losses are recorded as a separate component of accumulated other comprehensive income in shareholders’ equity. The effects of remeasuring non-functional currency assets and liabilities into the functional currency are included in current earnings, except for those related to intra-entity foreign currency transactions of a long-term investment nature, which are recorded together with translation gains and losses in accumulated other comprehensive loss in shareholders’ equity. Upon sale or substantially complete liquidation of an investment in a foreign entity, the amount of net translation gains or losses that have been accumulated in other comprehensive income attributable to that investment are reported as a gain or loss for the period in which the sale or liquidation occurs. |
Share-Based Compensation | Share-Based Compensation Corning maintains long-term incentive plans (the “Plans”) for key employees and non-employee members of our Board of Directors. The Plans allow us to grant equity-based compensation awards, including stock options, stock appreciation rights, performance share units, restricted stock units, restricted stock awards or a combination of awards (collectively, share-based awards). At December 31, 2018, there were approximately 62 million unissued common shares available for future grants authorized under the Plans. The Company measures and recognizes compensation cost for all share-based payment awards made to employees and directors based on estimated fair values. 1. Summary of Significant Accounting Policies (continued) Total share-based compensation expense was $51 million, $46 million and $42 million for the years ended December 31, 2018, 2017 and 2016, respectively. The income tax benefit realized from share-based compensation was not significant for the years ended December 31, 2018, 2017 and 2016. Refer to Note 4 (Income Taxes) to the Consolidated Financial Statements for additional information. Stock Options Corning’s stock option plans provide non-qualified and incentive stock options to purchase authorized but unissued common 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. An award is considered vested when the employee’s retention of the award is no longer contingent on providing subsequent service (the “non-substantive vesting period approach”). Awards to retirement eligible employees are fully vested at the date of grant, and the related compensation expense is recognized immediately upon grant or over the period from the grant date to the date of retirement eligibility for employees that become age 55 during the vesting period. Corning uses a multiple-point Black-Scholes valuation model to estimate the fair value of stock option grants. Corning utilizes a blended approach for calculating the volatility assumption used in the multiple-point Black-Scholes valuation model 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 rates used in the multiple-point Black-Scholes valuation model are the implied rates for a zero-coupon U.S. Treasury bond with a term equal to the option’s expected term. The ranges given below reflect results from separate groups of employees exhibiting different exercise behavior. The following inputs were used for the valuat ion of option grants under our stock option p lans: 2018 2017 2016 Expected volatility 30.6 - 31.4 % 32.4 - 36.1 % 37.1 - 43.1 % Weighted-average volatility 31.4% 36.1% 41.0% Expected dividends 2.22 - 2.66 % 1.98 - 2.28 % 2.28 - 2.94 % Risk-free rate 2.7 - 3.1 % 2.1 - 2.3 % 1.4 - 2.1 % Expected term (in years) 7.4 - 7.4 7.4 - 7.4 7.4 - 7.4 Pre-vesting departure rate 0.6 - 0.6 % 0.6 - 0.6 % 0.6 - 0.6 % 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. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash equivalents consist of highly liquid investments that are readily convertible into cash. We consider securities with contractual maturities of three months or less, when purchased, to be cash equivalents. The carrying amount of these securities approximates fair value because of the short-term maturity of these instruments. 1. Summary of Significant Accounting Policies (continued) Supplemental disclosure of cash flow information follows (in millions): Years ended December 31, 2018 2017 2016 Non-cash transactions: Accruals for capital expenditures $ 412 $ 584 $ 381 Cash paid for interest and income taxes: Interest (1) $ 205 $ 178 $ 184 Income taxes, net of refunds received $ 567 $ 405 $ 293 Included in this amount are approximately $49 million, $36 million, and $23 million of interest costs that were capitalized as part of property, plant and equipment , net of accumulated depreciation, in 201 8, 201 7 and 201 6, respectively. |
Allowance for Doubtful Accounts | Allowance for Doubtful Accounts The Company’s allowance for doubtful accounts is determined based on a variety of factors that affect the potential collectability of the related receivables, including length of time receivables are past due, customer credit ratings, financial stability of customers, specific one-time events and past customer history. In addition, in circumstances where the Company is made aware of a specific customer’s inability to meet its financial obligations, a specific allowance is established. The majority of accounts are individually evaluated on a regular basis and appropriate reserves are established as deemed appropriate based on the above criteria. |
Environmental Liabilities | Environmental Liabilities The Company accrues for its environmental investigation, remediation, operating and maintenance costs when it is probable that a liability has been incurred and the amount can be reasonably estimated. For environmental matters, the most likely cost to be incurred is accrued based on an evaluation of currently available facts with respect to each individual site, current laws and regulations and prior remediation experience. For sites with multiple potentially responsible parties, the Company considers its likely proportionate share of the anticipated remediation costs and the ability of the other parties to fulfill obligations in establishing a provision for those costs. Where no amount within a range of estimates is more likely to occur than another, the minimum amount is accrued. When future liabilities are determined to be reimbursable by insurance coverage, an accrual is recorded for the potential liability and a receivable is recorded related to the insurance reimbursement when reimbursement is virtually certain. The uncertain nature inherent in such remediation and the possibility that initial estimates may not reflect the outcome could result in additional costs being recognized by the Company in future periods. |
Inventories | Inventories Inventories are stated at the lower of cost (first-in, first-out basis) or market. |
Property, Plant and Equipment, Net of Accumulated Depreciation | Property, Plant and Equipment, Net of Accumulated Depreciation Land, buildings, and equipment, including precious metals, are recorded at cost. Depreciation is based on estimated useful lives of properties using the straight-line method. Except as described in Note 7 (Property, Plant and Equipment, Net of Accumulated Depreciation) to the Consolidated Financial Statements related to the depletion of precious metals, the estimated useful lives range from 10 to 40 years for buildings and 2 to 20 years for equipment. 1. Summary of Significant Accounting Policies (continued) Included in the subcategory of equipment are the following types of assets (excluding precious metals): Asset type Range of useful life Computer hardware and software 3 to 7 years Manufacturing equipment 2 to 15 years Furniture and fixtures 5 to 10 years Transportation equipment 3 to 20 years Manufacturing equipment includes certain components of production equipment that are constructed of precious metals. These assets are not depreciated because they have very low physical losses and are repeatedly reclaimed and reused in our manufacturing process over a very long useful life. We treat the physical loss of precious metals in the manufacturing and reclamation process as depletion and account for these losses as a period expense based on actual units lost. Precious metals are integral to many of our glass production processes. They are only acquired to support our operations and are not held for trading or other purposes. |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Goodwill is the excess of cost of an acquired entity over the amounts assigned to assets acquired and liabilities assumed in a business combination. Goodwill relates to and is assigned directly to a specific reporting unit. Reporting units are either operating segments or one level below the operating segment. Impairment testing for goodwill is done at a reporting unit level. Goodwill is reviewed for indicators of impairment quarterly or if an event occurs or circumstances change that indicate that the carrying amount may be impaired. Corning also performs a detailed quantitative impairment test every three years if no indicators suggest a test should be performed in the interim. We use this calculation as quantitative validation of the qualitative process; this process does not represent an election to perform the quantitative impairment test in place of the qualitative review. The qualitative process includes an extensive review of expectations for the long-term growth of our businesses and forecasting future cash flows. If we are required to perform the quantitative impairment analysis, our valuation method is an “income approach” using a discounted cash flow model in which cash flows anticipated over several periods, plus a terminal value at the end of that time horizon, are discounted to present value using an appropriate rate of return. Our estimates are based upon our historical experience, our current knowledge from our commercial relationships, and available external information about future trends. If the fair value is less than the carrying value, a loss is recorded to reflect the difference between the fair value and carrying value. Other intangible assets include patents, trademarks, and other intangible assets acquired from an independent party. Such intangible assets have a definite life and are amortized on a straight-line basis over estimated useful lives ranging from 4 to 50 years. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets We review the recoverability of our long-lived assets, such as plant and equipment and intangible assets, when events or changes in circumstances occur that indicate the carrying value of the asset or asset group may not be recoverable. When impairment indicators are present, we compare estimated undiscounted future cash flows, including the eventual disposition of the asset group at market value, to the assets’ carrying value to determine if the asset group is recoverable. For an asset group that fails the test of recoverability, the estimated fair value of long-lived assets is determined using an “income approach” that starts with the forecast of all the expected future net cash flows including the eventual disposition at market value of long-lived assets, and considers the fair market value of all precious metals. We assess the recoverability of the carrying value of long-lived assets at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities. If there is an impairment, a loss is recorded to reflect the difference between the assets’ fair value and carrying value. |
Employee Retirement Plans | Employee Retirement Plans Corning offers employee retirement plans consisting of defined benefit pension plans covering certain domestic and international employees and postretirement plans that provide health care and life insurance benefits for eligible retirees and dependents. The costs and obligations related to these benefits reflect the Company’s assumptions related to general economic conditions (particularly interest rates), expected return on plan assets, rate of compensation increase for employees and health care trend rates. The cost of providing plan benefits depends on demographic assumptions including retirements, mortality, turnover and plan participation. Costs for our defined benefit pension plans consist of two elements: 1) on-going costs recognized quarterly, which are comprised of service and interest costs, expected return on plan assets and amortization of prior service costs; and 2) mark-to-market gains and losses outside of the corridor, where the corridor is equal to 10% of the greater of the benefit obligation or the market-related value of plan assets at the beginning of the year, which are recognized annually in the fourth quarter of each year. These gains and losses result from changes in actuarial assumptions and the differences between actual and expected return on plan assets. Any interim remeasurements triggered by a curtailment, settlement or significant plan changes, as well as any true-up to the annual valuation, are recognized as a mark-to-market adjustment in the quarter in which such event occurs. Costs for our postretirement benefit plans consist of on-going costs recognized quarterly, and are comprised of service and interest costs, amortization of prior service costs and amortization of actuarial gains and losses. We recognize the actuarial gains and losses resulting from changes in actuarial assumptions as a component of Shareholders’ Equity on our consolidated balance sheets on an annual basis and amortize them into our operating results over the average remaining service period of employees expected to receive benefits under the plans, to the extent such gains and losses are outside of the corridor. Refer to Note 11 (Employee Retirement Plans) to the Consolidated Financial Statements for additional detail. |
Income Taxes | Income Taxes The Company accounts for income taxes using the asset and liability method. Under this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to operating loss and tax credit carryforwards and for differences between the carrying amounts of existing assets and liabilities and their respective tax bases. The effective income tax rate reflects our assessment of the ultimate outcome of tax audits. In evaluating the tax benefits associated with our various tax filing positions, we record a tax benefit for uncertain tax positions using the highest cumulative tax benefit that is more likely than not to be realized. Adjustments are made to our liability for unrecognized tax benefits in the period in which we determine the issue is effectively settled with the tax authorities, the statute of limitations expires for the return containing the tax position or when new information becomes available. Our liability for unrecognized tax benefits, including accrued penalties and interest, is included in other accrued liabilities and other long-term liabilities on our consolidated balance sheets and in income tax expense in our Consolidated Statements of Income (Loss). Discrete events such as audit settlements or changes in tax laws are recognized in the period in which they occur. Valuation allowances are established when management is unable to conclude that it is more likely than not that some portion, or all, of the deferred tax asset will ultimately be realized. 1. Summary of Significant Accounting Policies (continued) Beginning in 2018, Corning will indefinitely reinvest the foreign earnings of: (1) any of its subsidiaries located in jurisdictions where Corning lacks the ability to repatriate its earnings, (2) any of its subsidiaries where Corning’s intention is to reinvest those earnings in operations, (3) legal entities for which Corning holds a non-controlling interest, (4) any subsidiaries with an accumulated deficit in earnings and profits and (5) any subsidiaries which have a positive earnings and profits balance but for which the entity lacks sufficient local statutory earnings or stock basis from which to make a distribution. A company can make a policy election to account for the tax on GILTI as a period cost or to recognize deferred tax assets and liabilities when basis differences exist that are expected to affect the amount of GILTI inclusion upon reversal. Corning has elected to account for the GILTI provisions as a period cost. |
Equity Method Investments | Equity Method Investments Our equity method investments are reviewed for impairment on a periodic basis or if an event occurs or circumstances change that indicate the carrying amount may be impaired. This assessment is based on a review of the equity investments’ performance and a review of indicators of impairment to determine if there is evidence of a loss in value of an equity investment. Factors we consider include: · Absence of our ability to recover the carrying amount; · Inability of the equity affiliate to sustain an earnings capacity which would justify the carrying amount of the investment; and · Significant litigation, bankruptcy or other events that could impact recoverability. For an equity investment with impairment indicators, we measure fair value on the basis of discounted cash flows or other appropriate valuation methods, depending on the nature of the company involved. If it is probable that we will not recover the carrying amount of our investment, the impairment is considered other-than-temporary and recorded in earnings, and the equity investment balance is reduced to its fair value accordingly. We require our material equity method affiliates to provide audited financial statements. Consequently, adjustments for asset recoverability are included in equity earnings. We also utilize these financial statements in our recoverability assessment. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Major categories of financial assets and liabilities, including short-term investments, other assets and derivatives are measured at fair value on a recurring basis. Certain assets and liabilities including long-lived assets, goodwill, asset retirement obligations, and cost and equity investments are measured at fair value on a nonrecurring basis. Fair value is the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required to be recorded at fair value, we consider the principal or most advantageous market in which we would transact and consider assumptions that market participants would use when pricing the asset or liability, such as inherent risk, transfer restrictions, and risk of nonperformance. |
Derivative Instruments | Derivative Instruments We participate in a variety of foreign exchange forward contracts and foreign exchange option contracts entered into in connection with the management of our exposure to fluctuations in foreign exchange rates. We utilize interest rate swaps to reduce the risk of changes in a benchmark interest rate from the probable forecasted issuance of debt and manage the mix of fixed and floating rate debt. These financial exposures are managed in accordance with corporate policies and procedures. 1. Summary of Significant Accounting Policies (continued) All derivatives are recorded at fair value on the balance sheet. Changes in the fair value of derivatives designated as cash flow hedges and hedges of net investments in foreign operations are not recognized in current operating results but are recorded in accumulated other comprehensive income. Amounts related to cash flow hedges are reclassified from accumulated other comprehensive income when the underlying hedged item impacts earnings. This reclassification is recorded in the same line item of the Consolidated Statements of Income (Loss) as where the effects of the hedged item are recorded, typically sales, cost of sales or other expense, net. Changes in the fair value of derivatives not designated as hedging instruments are recorded in the Consolidated Statements of Income (Loss) in the Translated earnings contract loss, net and the Other expense, net lines. |
New Accounting Standards | New Accounting Standards In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which supersedes all existing guidance on accounting for leases in ASC Topic 840. ASU 2016-02 will continue to classify leases as either finance or operating, with classification affecting the pattern of expense recognition in the statement of income. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. ASU 2016-02 may be applied with a modified retrospective approach with various practical expedients. The adoption of ASU 2016-02 will have no impact to retained earnings or income. Upon adoption of ASU 2016-02, we anticipate recording a right-of-use asset and an offsetting lease liability of approximately $450 million. Adoption of the new standard is effective January 1, 2019. In February 2018, the FASB issued ASU 2018-02, Income Statement - Reporting Comprehensive Income, which allows for reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act. ASU 2018-02 is effective for annual reporting periods beginning after December 15, 2018, and interim periods within those annual periods. We have determined that the impact of this standard will not be material. Adoption of the new standard is effective January 1, 2019. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Summary of Significant Accounting Policies [Abstract] | |
Valuation of Option Grants under Stock Option Plans | 2018 2017 2016 Expected volatility 30.6 - 31.4 % 32.4 - 36.1 % 37.1 - 43.1 % Weighted-average volatility 31.4% 36.1% 41.0% Expected dividends 2.22 - 2.66 % 1.98 - 2.28 % 2.28 - 2.94 % Risk-free rate 2.7 - 3.1 % 2.1 - 2.3 % 1.4 - 2.1 % Expected term (in years) 7.4 - 7.4 7.4 - 7.4 7.4 - 7.4 Pre-vesting departure rate 0.6 - 0.6 % 0.6 - 0.6 % 0.6 - 0.6 % |
Supplemental Disclosure of Cash Flow Information | Years ended December 31, 2018 2017 2016 Non-cash transactions: Accruals for capital expenditures $ 412 $ 584 $ 381 Cash paid for interest and income taxes: Interest (1) $ 205 $ 178 $ 184 Income taxes, net of refunds received $ 567 $ 405 $ 293 (1) Included in this amount are approximately $49 million, $36 million, and $23 million of interest costs that were capitalized as part of property, plant and equipment , net of accumulated depreciation, in 201 8, 201 7 and 201 6, respectively. |
Useful Life of Equipment | Asset type Range of useful life Computer hardware and software 3 to 7 years Manufacturing equipment 2 to 15 years Furniture and fixtures 5 to 10 years Transportation equipment 3 to 20 years |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Revenue [Abstract] | |
Disaggregation of Revenue | December 31, 2018 2017 2016 Display products $ 3,168 $ 2,997 $ 3,238 Telecommunication products 4,192 3,545 3,005 Specialty glass products 1,479 1,403 1,124 Environmental substrate and filter products 1,289 1,106 1,032 Life science products 946 879 839 All Other 216 186 152 $ 11,290 $ 10,116 $ 9,390 |
Inventories, Net of Inventory_2
Inventories, Net of Inventory Reserves (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Inventories, Net of Inventory Reserves [Abstract] | |
Inventories, Net | December 31, 2018 2017 Finished goods $ 854 $ 739 Work in process 386 322 Raw materials and accessories 409 306 Supplies and packing materials 388 345 Total inventories, net of inventory reserves $ 2,037 $ 1,712 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Taxes [Abstract] | |
Income Before Income Taxes | Years ended December 31, 2018 2017 2016 U.S. companies $ 472 $ 653 $ 2,658 Non-U.S. companies 1,031 1,004 1,034 Income before income taxes $ 1,503 $ 1,657 $ 3,692 |
Current and Deferred Amounts of Provision | Years ended December 31, 2018 2017 2016 Current: Federal $ (256) $ (20) $ (1) State and municipal (22) (21) (17) Foreign (196) (317) (287) Deferred: Federal (34) (1,617) 310 State and municipal 4 (109) 48 Foreign 67 (70) (50) (Provision) benefit for income taxes $ (437) $ (2,154) $ 3 |
Reconciliation of the U.S. Statutory Income Tax Rate to Effective Tax Rate | Years ended December 31, 2018 2017 2016 Statutory U.S. income tax rate 21.0 % 35.0 % 35.0 % State income tax (benefit), net of federal effect 0.9 0.8 (0.3) Global intangible low-taxed income 3.6 Repatriation tax on accumulated previously untaxed foreign earnings (1.2) 67.4 Remeasurement of deferred tax assets and liabilities (0.1) 21.0 Rate difference on foreign earnings (2.3) (3.9) (9.2) Preliminary IRS settlement of 2013-2014 tax years 11.5 Equity earnings impact 0.1 (0.4) Valuation allowance (3.8) 6.8 1.2 Realignment of Dow Corning interest (28.2) Other items, net (0.5) 2.8 1.8 Effective income tax rate (benefit) 29.1 % 130.0 % (0.1) % |
Tax Effects of Temporary Differences and Carryforwards of Deferred Tax Assets and Liabilities | December 31, 2018 2017 Loss and tax credit carryforwards $ 479 $ 652 Other assets 45 43 Asset impairments and restructuring reserves 33 94 Postretirement medical and life benefits 162 191 Other accrued liabilities 265 Other employee benefits 289 278 Gross deferred tax assets 1,273 1,258 Valuation allowance (317) (456) Total deferred tax assets 956 802 Intangible and other assets (96) (101) Other accrued liabilities (94) Fixed assets (256) (245) Total deferred tax liabilities (352) (440) Net deferred tax assets $ 604 $ 362 |
Net Deferred Tax Assets | December 31, 2018 2017 Deferred tax assets $ 951 $ 813 Deferred tax liabilities (347) (451) Net deferred tax assets $ 604 $ 362 |
Deferred Tax Assets for Loss and Tax Credit Carryforwards | Expiration Amount 2018-2022 2023-2027 2028-2037 Indefinite Net operating losses $ 449 $ 121 $ 60 $ 25 $ 243 Tax credits 30 25 5 Totals as of December 31, 2018 $ 479 $ 121 $ 60 $ 50 $ 248 |
Reconciliation of Unrecognized Tax Benefits | 2018 2017 2016 Balance at January 1 $ 252 $ 243 $ 253 Additions based on tax positions related to the current year 204 1 10 Additions for tax positions of prior years 13 4 Reductions for tax positions of prior years (10) (18) Settlements and lapse of statute of limitations (11) (5) (6) Balance at December 31 $ 435 $ 252 $ 243 |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Investments | Ownership December 31, interest 2018 2017 Affiliated companies accounted for by the equity method (1)(2) 20% to 50% $ 354 $ 280 Other investments 22 60 Subtotal Investment Assets $ 376 $ 340 Affiliated companies accounted for by the equity method - HSG (1)(2) 50% $ $ 105 Subtotal Investment Liabilities $ $ 105 (1) Amount reflects Corning’s direct ownership interests in the affiliated companies at December 31, 2018 and December 31, 2017. Corning does not control any of such entities. (2) HSG indirectly holds an 80.5% interest in a HSG operating partnership. At December 31, 2018, the carrying value of the investment in HSG was $42 million and recorded in Investments. At December 31, 2017, the negative carrying value of the investment in HSG was $105 million and recorded in Other Liabilities. |
Gain of Realignment | Cash $ 4,818 Carrying Value of Dow Corning Equity Investment (1,560) Carrying Value of HSG Equity Investment (383) Other (1) (199) Gain $ 2,676 Primarily consists of the release of accumulated other comprehensive income items related to unamortized actuarial losses related to Dow Corning’s pension plan and foreign currency translation gains in the amounts of $260 million and $45 million, respectively. |
Affiliated Companies [Member] | |
Results From Operations | Years ended December 31, 2018 2017 2016 Statement of operations: Net sales $ 1,759 $ 2,346 $ 4,024 Gross profit $ 424 $ 560 $ 1,006 Net income $ 835 $ 721 $ 565 Corning’s equity in earnings of affiliated companies $ 390 $ 361 $ 284 Related party transactions: Corning sales to affiliated companies $ 184 $ 108 $ 95 Corning purchases from affiliated companies $ 11 $ 12 $ 12 Corning transfers of assets, at cost, to affiliated companies $ 2 $ 22 $ 44 Dividends received from affiliated companies $ 241 $ 201 $ 85 Years ended December 31, 2018 2017 Balance sheet: Current assets $ 1,716 $ 1,593 Noncurrent assets $ 1,922 $ 1,999 Short-term borrowings, including current portion of long-term debt $ 8 $ 3 Other current liabilities $ 810 $ 700 Long-term debt $ 14 $ 16 Other long-term liabilities $ 1,708 $ 2,128 Non-controlling interest $ 259 $ 313 Related party transactions: Balances due from affiliated companies $ 95 $ 47 |
HSG [Member] | |
Results From Operations | Years ended December 31, 2018 2017 2016 Statement of operations: Net sales $ 1,158 $ 1,716 $ 1,119 Gross profit $ 367 $ 469 $ 361 Net income $ 814 $ 706 $ 421 Corning’s equity in earnings of affiliated companies $ 388 $ 352 $ 212 Related party transactions: Dividends received from affiliated companies $ 241 $ 196 $ 65 Years ended December 31, 2018 2017 Balance sheet: Current assets $ 1,188 $ 1,206 Noncurrent assets $ 1,414 $ 1,522 Short-term borrowings, including current portion of long-term debt $ 3 $ 3 Other current liabilities $ 540 $ 484 Long-term debt $ 11 $ 15 Other long-term liabilities $ 1,708 $ 2,126 Non-controlling interest $ 259 $ 313 |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Notes Tables | |
Recognized Amounts of Identified Assets Acquired and Liabilities Assumed | Property, plant and equipment $ 32 Other intangible assets 525 Other net assets 16 Total identified net assets 573 Purchase consideration 841 Goodwill (1) (2) $ 268 (1) Amounts reflect measurement period adjustments. (2) The goodwill recognized is deductible for U.S. income tax purposes. The goodwill was allocated to the Optical Communications segment. |
Property, Plant and Equipment_2
Property, Plant and Equipment, Net of Accumulated Depreciation (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Notes Tables | |
Property, Plant and Equipment, Net of Accumulated Depreciation | December 31, 2018 2017 Land $ 467 $ 482 Buildings 5,924 5,864 Equipment 18,218 16,648 Construction in progress 2,218 1,832 26,827 24,826 Accumulated depreciation (11,932) (10,809) Total $ 14,895 $ 14,017 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Other Intangible Assets [Abstract] | |
Carrying Amount of Goodwill by Segment | Display Technologies Optical Communications Specialty Materials Life Sciences All Other Total Balance at December 31, 2016 $ 126 $ 645 $ 150 $ 558 $ 98 $ 1,577 Acquired goodwill (1) 22 43 34 99 Measurement period adjustment (2) (1) 1 (28) (28) Foreign currency translation adjustment 10 5 21 10 46 Balance at December 31, 2017 $ 136 $ 671 $ 150 $ 623 $ 114 $ 1,694 Acquired goodwill (3) 257 2 259 Measurement period adjustment 11 11 Foreign currency translation adjustment (4) (13) (8) (3) (28) Balance at December 31, 2018 $ 132 $ 926 $ 150 $ 617 $ 111 $ 1,936 (1) The Company completed two small acquisitions in the third quarter of 2017 which are reported in the Optical Communications and Life Sciences segment and one small acquisition in the first quarter of 2017 which is reported in All Other. (2) In the second quarter of 2017, the Company recorded measurement period adjustments of $28 million related to an acquisition completed in a previous period. (3) The Company completed the acquisition of CMD during the second quarter and the fourth quarter of 2018. |
Other Intangible Assets | December 31, 2018 2017 Gross Accumulated amortization Net Gross Accumulated amortization Net Amortized intangible assets: Patents, trademarks & trade names $ 465 $ 203 $ 262 $ 382 $ 188 $ 194 Customer list and other 1,308 278 1,030 884 209 675 Total $ 1,773 $ 481 $ 1,292 $ 1,266 $ 397 $ 869 |
Other Assets and Other Liabil_2
Other Assets and Other Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Other Assets and Other Liabilities [Abstract] | |
Other Assets | December 31, 2018 2017 Current assets: Contingent consideration asset $ 300 Derivative instruments $ 103 197 Other current assets 599 494 Other current assets $ 702 $ 991 Non-current assets: Derivative instruments $ 45 $ 68 South Korean tax deposits 425 319 Other non-current assets 551 547 Other assets $ 1,021 $ 934 |
Other Liabilities | December 31, 2018 2017 Current liabilities: Wages and employee benefits $ 642 $ 620 Income taxes 169 148 Derivative instruments 56 42 Asbestos and other litigation (Note 12) 113 41 Other current liabilities 871 540 Other accrued liabilities $ 1,851 $ 1,391 Non-current liabilities: Defined benefit pension plan liabilities $ 831 $ 713 Derivative instruments 386 333 Asbestos and other litigation (Note 12) 279 338 Investment in Hemlock Semiconductor Group (1) 105 Customer deposits (Note 2) 922 382 Deferred tax liabilities 347 451 Other non-current liabilities 887 695 Other liabilities $ 3,652 $ 3,017 (1) The negative carrying value resulted from a one-time charge to this entity in 2014 for the permanent abandonment of certain assets. Refer to Note 5 (Investments) to the Consolidated Financial Statements for additional information. |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Debt [Abstract] | |
Long-term Debt | December 31, 2018 2017 Current portion of long-term debt $ 4 $ 379 Long-term debt Debentures, 1.5% , due 2018 $ 375 Debentures, 6.625% , due 2019 245 Debentures, 4.25% , due 2020 $ 291 288 Debentures, 8.875% , due 2021 65 66 Debentures, 2.90% , due 2022 373 373 Debentures, 3.70% , due 2023 249 249 Medium-term notes, average rate 7.66% , due through 2023 45 45 Debentures, 7.00% , due 2024 100 99 Yen-denominated Debentures, .698% , due 2024 191 185 Yen-denominated Debentures, .722% , due 2025 90 Yen-denominated Debentures, .992% , due 2027 426 414 Yen-denominated Debentures, 1.043% , due 2028 276 Debentures, 6.85% , due 2029 164 166 Yen-Denominated Debentures, 1.219% , due 2030 226 Debentures, callable, 7.25% , due 2036 248 248 Debentures, 4.70% , due 2037 295 248 Yen-denominated Debentures, 1.583% , due 2037 91 85 Debentures, 5.75% , due 2040 395 397 Debentures, 4.75% , due 2042 496 496 Debentures, 5.35% , due 2048 543 Debentures, 4.375% , due 2057 742 743 Debentures, 5.85% , due 2068 296 Other, average rate 5.08% , due through 2043 396 406 Total long-term debt 5,998 5,128 Less current portion of long-term debt 4 379 Long-term debt $ 5,994 $ 4,749 |
Debt Maturities | 2019 2020 2021 2022 2023 Thereafter $ 4 $ 305 $ 68 $ 381 $ 420 $ 4,856 |
Employee Retirement Plans (Tabl
Employee Retirement Plans (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Benefit Obligations in Excess of Fair Value of Plan Assets | December 31, 2018 2017 Projected benefit obligation $ 3,754 $ 3,843 Fair value of plan assets $ 2,910 $ 3,173 |
Accumulated Benefit Obligation in Excess of Fair Value of Plan Assets | December 31, 2018 2017 Accumulated benefit obligation $ 3,410 $ 3,555 Fair value of plan assets $ 2,766 $ 3,025 |
Net Periodic Benefit Expense | Postretirement benefits 2018 2017 2016 Service cost $ 10 $ 10 $ 9 Interest cost 24 26 26 Amortization of actuarial net gain (1) (1) Amortization of prior service credit (7) (3) (4) Total net periodic benefit expense $ 27 $ 32 $ 30 Other changes in plan assets and benefit obligations recognized in other comprehensive income: Current year actuarial (gain) loss $ (47) $ 17 $ 15 Amortization of actuarial net gain 1 1 Current year prior service credit (40) Amortization of prior service credit 7 3 5 Total recognized in other comprehensive income (loss) $ (80) $ 21 $ 21 Total recognized in net periodic benefit cost and other comprehensive income $ (53) $ 53 $ 51 |
Weighted-average Assumptions Used to Determine Benefit Obligations and Net Periodic Benefit Cost | Pension benefits Domestic International Postretirement benefits 2018 2017 2016 2018 2017 2016 2018 2017 2016 Discount rate 4.28 % 3.58 % 4.01 % 1.96 % 1.93 % 2.29 % 4.33 % 3.63 % 4.07 % Rate of compensation increase 3.50 % 3.50 % 3.50 % 2.96 % 2.81 % 3.97 % The weighted-average assumptions used to determine net periodic benefit cost for years ended December 31 follow: Pension benefits Domestic International Postretirement benefits 2018 2017 2016 2018 2017 2016 2018 2017 2016 Discount rate 3.58 % 4.01 % 4.24 % 1.93 % 2.29 % 3.23 % 3.63 % 4.06 % 4.31 % Expected return on plan assets 6.00 % 6.00 % 6.00 % 2.13 % 3.97 % 3.92 % Rate of compensation increase 3.50 % 3.50 % 3.50 % 2.81 % 2.06 % 2.89 % |
Assumed Health Care Trend Rates | Assumed health care trend rates at December 31 2018 2017 Health care cost trend rate assumed for next year 7.00% 6.50% Rate that the cost trend rate gradually declines to 5% 5% Year that the rate reaches the ultimate trend rate 2027 2024 |
Effect One-percent-point Change in Assumed Health Care Cost | One-percentage-point increase One-percentage-point decrease Effect on annual total of service and interest cost (credit) $ 3 $ (2) Effect on postretirement benefit obligation $ 45 $ (37) |
Estimated Future Benefit Payments and Gross Medicare to be Received | Expected benefit payments Domestic pension benefits International pension benefits Postretirement benefits 2019 $ 199 $ 23 $ 37 2020 $ 203 $ 30 $ 40 2021 $ 212 $ 28 $ 40 2022 $ 220 $ 31 $ 42 2023 $ 229 $ 30 $ 42 2024-2028 $ 1,242 $ 196 $ 213 |
Pension Benefits [Member] | |
Obligations and Funded Status Schedule | Total pension benefits Domestic pension benefits International pension benefits December 31, 2018 2017 2018 2017 2018 2017 Change in benefit obligation Benefit obligation at beginning of year $ 4,188 $ 3,887 $ 3,522 $ 3,289 $ 666 $ 598 Service cost 103 92 78 66 25 26 Interest cost 132 126 116 112 16 14 Plan participants’ contributions 1 2 1 1 1 Plan amendments 21 20 1 Actuarial loss (gain) (210) 208 (200) 222 (10) (14) Other (1) 3 3 (1) Benefits paid (202) (195) (179) (171) (23) (24) Foreign currency translation (29) 65 (29) 65 Benefit obligation at end of year $ 4,003 $ 4,188 $ 3,358 $ 3,522 $ 645 $ 666 Change in plan assets Fair value of plan assets at beginning of year $ 3,539 $ 3,225 $ 3,004 $ 2,765 $ 535 $ 460 Actual return on plan assets (201) 413 (202) 395 1 18 Employer contributions 135 46 118 14 17 32 Plan participants’ contributions 1 1 1 1 Benefits paid (208) (195) (179) (171) (29) (24) Foreign currency translation (27) 49 (27) 49 Fair value of plan assets at end of year $ 3,239 $ 3,539 $ 2,742 $ 3,004 $ 497 $ 535 Funded status at end of year Fair value of plan assets $ 3,239 $ 3,539 $ 2,742 $ 3,004 $ 497 $ 535 Benefit obligations (4,003) (4,188) (3,358) (3,522) (645) (666) Funded status of plans $ (764) $ (649) $ (616) $ (518) $ (148) $ (131) Amounts recognized in the consolidated balance sheets consist of: Noncurrent asset $ 81 $ 76 $ 81 $ 76 Current liability (29) (20) $ (13) $ (12) (16) (8) Noncurrent liability (816) (705) (603) (506) (213) (199) Recognized liability $ (764) $ (649) $ (616) $ (518) $ (148) $ (131) Amounts recognized in accumulated other comprehensive income consist of: Net actuarial loss $ 338 $ 300 $ 324 $ 285 $ 14 $ 15 Prior service cost (credit) 36 22 37 25 (1) (3) Amount recognized at end of year $ 374 $ 322 $ 361 $ 310 $ 13 $ 12 |
Net Periodic Benefit Expense | Total pension benefits Domestic pension benefits International pension benefits December 31, 2018 2017 2016 2018 2017 2016 2018 2017 2016 Service cost $ 103 $ 92 $ 85 $ 78 $ 66 $ 61 $ 25 $ 26 $ 24 Interest cost 132 126 124 116 112 111 16 14 13 Expected return on plan assets (189) (174) (165) (178) (163) (153) (11) (11) (12) Amortization of prior service cost (credit) 6 5 6 7 6 6 (1) (1) Recognition of actuarial loss 145 21 67 143 18 55 2 3 12 Total net periodic benefit expense $ 197 $ 70 $ 117 $ 166 $ 39 $ 80 $ 31 $ 31 $ 37 Settlement charge (1) 1 1 (1) Total expense $ 196 $ 70 $ 118 $ 166 $ 39 $ 81 $ 30 $ 31 $ 37 Other changes in plan assets and benefit obligations recognized in other comprehensive income: Settlements $ 1 $ (2) $ (2) $ 1 Current year actuarial loss (gain) 180 $ (30) 84 $ 182 $ (8) 63 (2) $ (22) $ 21 Recognition of actuarial loss (145) (21) (64) (143) (18) (55) (2) (3) (9) Current year prior service cost 20 20 Amortization of prior service (cost) credit (6) (5) (6) (7) (6) (6) 1 1 Total recognized in other comprehensive loss (income) $ 50 $ (56) $ 12 $ 52 $ (32) $ 0 $ (2) $ (24) $ 12 |
Changes in Fair Value of Level 3 Assets for Defined Benefit Plans | Level 3 assets – Domestic Level 3 assets – International Year ended December 2018 Year ended December 2018 (in millions) Private equity Real estate Mortgages Insurance contracts Beginning balance at December 31, 2017 $ 105 $ 147 $ 16 $ 2 Actual return on plan assets relating to assets still held at the reporting date 15 9 Transfers in and/or out of level 3 (38) (8) 6 Ending balance at December 31, 2018 $ 82 $ 148 $ 22 $ 2 Level 3 assets – Domestic Level 3 assets – International Year ended December 2017 Year ended December 2017 (in millions) Private equity Real estate Mortgages Insurance contracts Beginning balance at December 31, 2016 $ 137 $ 150 $ 2 Actual return on plan assets relating to assets still held at the reporting date 7 6 Transfers in and/or out of level 3 (39) (9) $ 16 Ending balance at December 31, 2017 $ 105 $ 147 $ 16 $ 2 |
Postretirement Benefits [Member] | |
Obligations and Funded Status Schedule | Postretirement benefits December 31, 2018 2017 Change in benefit obligation Benefit obligation at beginning of year $ 789 $ 776 Service cost 10 10 Interest cost 24 26 Plan participants’ contributions 8 8 Plan amendments (40) Actuarial loss (gain) (48) 17 Benefits paid (46) (50) Medicare subsidy received 2 2 Benefit obligation at end of year $ 699 $ 789 Funded status at end of year Fair value of plan assets Benefit obligations $ (699) $ (789) Funded status of plans $ (699) $ (789) Amounts recognized in the consolidated balance sheets consist of: Current liability $ (37) $ (40) Noncurrent liability (662) (749) Recognized liability $ (699) $ (789) Amounts recognized in accumulated other comprehensive income consist of: Net actuarial loss $ 21 $ 68 Prior service credit (44) (12) Amount recognized at end of year $ (23) $ 56 |
United States [Member] | Pension Benefits [Member] | |
Defined Benefit Plan Assets | December 31, 2018 December 31, 2017 (in millions) Total (Level 1) (Level 2) (Level 3) Total (Level 1) (Level 2) (Level 3) Equity securities: U.S. companies $ 363 $ 2 $ 361 $ 374 $ 57 $ 317 International companies 324 324 420 117 303 Fixed income: U.S. corporate bonds 1,626 183 1,443 1,815 197 1,618 Private equity (1) 82 $ 82 105 $ 105 Real estate (2) 148 148 147 147 Cash equivalents 199 199 21 21 Commodities (3) 122 122 Total $ 2,742 $ 384 $ 2,128 $ 230 $ 3,004 $ 392 $ 2,360 $ 252 (1) This category includes venture capital, leverage buyouts and distressed debt limited partnerships invested primarily in U.S. companies. The inputs are valued by discounted cash flow analysis and comparable sale analysis. (2) This category includes industrial, office, apartments, hotels, infrastructure and retail investments which are limited partnerships predominately in the U.S. The inputs are valued by discounted cash flow analysis; comparable sale analysis and periodic external appraisals. (3) This category includes investments in energy, industrial metals, precious metals, agricultural and livestock primarily through futures, options, swaps and exchange traded funds. |
International [Member] | Pension Benefits [Member] | |
Defined Benefit Plan Assets | December 31, 2018 December 31, 2017 (in millions) Total (Level 1) (Level 2) (Level 3) Total (Level 1) (Level 2) (Level 3) Equity securities: U.S. companies $ 8 $ 8 International companies 29 29 Fixed income: International fixed income $ 428 $ 361 $ 67 440 $ 367 73 Insurance contracts 2 $ 2 2 $ 2 Mortgages 22 22 16 16 Cash equivalents 45 45 40 40 Total $ 497 $ 406 $ 67 $ 24 $ 535 $ 407 $ 110 $ 18 |
Commitments, Contingencies an_2
Commitments, Contingencies and Guarantees (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Commitments, Contingencies and Guarantees [Abstract] | |
Obligations | Amount of commitment and contingency expiration per period Total Less than 1 year 1 to 3 years 3 to 5 years 5 years and thereafter Performance bonds and guarantees $ 152 $ 23 $ 4 $ 2 $ 123 Stand-by letters of credit (1) 84 71 8 5 Credit facility to equity company 4 4 Subtotal of commitment expirations per period $ 240 $ 98 $ 12 $ 2 $ 128 Purchase obligations (2) $ 339 $ 214 $ 56 $ 28 $ 41 Capital expenditure obligations (3) 412 412 Total debt (4) 5,642 362 670 4,610 Interest on long-term debt (5) 5,117 231 450 408 4,028 Capital leases and financing obligations 393 4 11 132 246 Imputed interest on capital leases and financing obligations 205 20 38 37 110 Minimum rental commitments 581 82 133 111 255 Amended PCC Plan 185 50 85 50 Uncertain tax positions (6) 95 Subtotal of contractual obligation payments due by period (6) $ 12,969 $ 1,013 $ 1,135 $ 1,436 $ 9,290 Total commitments and contingencies (6) $ 13,209 $ 1,111 $ 1,147 $ 1,438 $ 9,418 (1) At December 31, 2018, $39 million of the $84 million was included in other accrued liabilities on our consolidated balance sheets. (2) Purchase obligations are enforceable and legally binding obligations which primarily consist of raw material and energy-related take-or-pay contracts. (3) Capital expenditure obligations primarily reflect amounts associated with our capital expansion activities. (4) Total debt above is stated at maturity value, and excludes interest rate swap gains/losses and bond discounts. (5) The estimate of interest payments assumes interest is paid through the date of maturity or expiration of the related debt, based upon stated rates in the respective debt instruments. (6) At December 31, 2018, $95 million was included on our balance sheet related to uncertain tax positions. |
Minimum Rental Commitments Under Leases | 2019 2020 2021 2022 2023 2024 and thereafter $ 82 72 $ 61 $ 53 $ 58 $ 255 |
Hedging Activities (Tables)
Hedging Activities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Hedging Activities [Abstract] | |
Summary of Notional Amounts and Respective Fair Values of Derivative Financial Instruments | Asset derivatives Liability derivatives Notional amount Fair value Fair value 2018 2017 Balance sheet location 2018 2017 Balance sheet location 2018 2017 Derivatives designated as hedging instruments Foreign exchange contracts (1) $ 391 $ 294 Other current assets $ 4 $ 20 Other accrued liabilities $ (2) Other assets 2 1 Interest rate contracts 550 Other liabilities $ (8) Derivatives not designated as hedging instruments Foreign exchange contracts, other 900 599 Other current assets 5 2 Other accrued liabilities (7) (7) Translated earnings contracts 13,620 14,275 Other current assets 94 176 Other accrued liabilities (47) (34) Other assets 43 66 Other liabilities (386) (325) Total derivatives $ 14,911 $ 15,718 $ 148 $ 265 $ (442) $ (374) (1) Cash flow hedges with a typical duration of 24 months or less. |
Effect on Consolidated Financial Statements | Effect of derivative instruments on the consolidated financial statements for the years ended December 31 Derivatives in hedging (Loss)/gain recognized in other comprehensive income (OCI) Location of gain/(loss) reclassified from accumulated OCI into income Gain/(loss) reclassified from accumulated OCI into income ineffective/effective (1) relationships 2018 2017 2016 effective/ineffective 2018 2017 2016 Cash flow hedges Net sales $ 1 $ 4 Interest rate hedge $ 16 Cost of sales $ 13 (12) (36) Foreign exchange contracts (5) $ 38 $ (33) Other (expense) income, net (1) (2) (2) Total cash flow hedges $ 11 $ 38 $ (33) $ 12 $ (13) $ (34) Gain (loss) recognized in income Undesignated derivatives Location of gain/(loss) recognized in income 2018 2017 2016 Foreign exchange contracts – balance sheet Translated earnings contract gain (loss), net $ 27 $ (11) $ 4 Foreign exchange contracts – loans Translated earnings contract (loss) gain, net (5) (5) (31) Translated earnings contracts Translated earnings contract (loss) gain, net (93) (121) (448) Total undesignated $ (71) $ (137) $ (475) (1) There were no material amounts of ineffectiveness for 2018, 2017 and 2016. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Measurements [Abstract] | |
Major Categories of Financial Assets and Liabilities Measured on a Recurring Basis | Fair value measurements at reporting date using December 31, Quoted prices in active markets for identical assets Significant other observable inputs Significant unobservable inputs (in millions) 2018 (Level 1) (Level 2) (Level 3) Current assets: Other current assets (1) $ 103 $ 103 Non-current assets: Investments (2) $ 16 $ 16 Other assets (1) $ 45 $ 45 Current liabilities: Other accrued liabilities (1) $ 56 $ 56 Non-current liabilities: Other liabilities (1)(3) $ 406 $ 386 $ 20 (1) Derivative assets and liabilities include foreign exchange contracts which are measured using observable inputs for similar assets and liabilities. (2) One of the Company’s equity securities was measured using unobservable (Level 3) inputs, in the amount of $16 million. (3) Other liabilities include contingent consideration that was measured using unobservable (Level 3) inputs, in the amount of $20 million. Fair value measurements at reporting date using December 31, Quoted prices in active markets for identical assets Significant other observable inputs Significant unobservable inputs (in millions) 2017 (Level 1) (Level 2) (Level 3) Current assets: Short-term investments Other current assets (1) $ 497 $ 197 $ 300 Non-current assets: Other assets (1)(2) $ 68 $ 68 Current liabilities: Other accrued liabilities (1) $ 44 $ 42 $ 2 Non-current liabilities: Other liabilities (1)(2) $ 353 $ 333 $ 20 (1) Derivative assets and liabilities include foreign exchange contracts which are measured using observable quoted prices for similar assets and liabilities. (2) At December 31, 2017, other current assets, other accrued liabilities and other liabilities include contingent consideration that was measured using unobservable (level 3) inp uts, in the amounts of $300 million, $2 million and $20 million, respectively. |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Shareholders' Equity [Abstract] | |
Changes in Capital Stock | Common stock Treasury stock Shares Par value Shares Cost Balance at December 31, 2015 1,681 $ 840 (551) $ (9,725) Shares issued to benefit plans and for option exercises 10 6 (2) Shares purchased for treasury (214) (4,409) Other, net (16) Balance at December 31, 2016 1,691 $ 846 (765) $ (14,152) Shares issued to benefit plans and for option exercises 17 8 (2) Shares purchased for treasury (84) (2,462) Other, net (1) (17) Balance at December 31, 2017 1,708 $ 854 (850) $ (16,633) Shares issued to benefit plans and for option exercises 5 3 Shares purchased for treasury (75) (2,230) Other, net (7) Balance at December 31, 2018 1,713 $ 857 (925) $ (18,870) |
Accumulated Other Comprehensive Income (Loss) | Foreign currency translation adjustments and other Unamortized actuarial gains (losses) and prior service (costs) credits Net unrealized gains (losses) on investments Net unrealized gains (losses) on designated hedges Accumulated other comprehensive loss Balance at December 31, 2015 $ (1,171) $ (588) $ (14) $ (38) $ (1,811) Other comprehensive income before reclassifications (4) $ (89) $ (63) $ (2) $ (21) $ (175) Amounts reclassified from accumulated other comprehensive income (loss) (2) 40 22 62 Equity method affiliates (3)(7) (15) 264 (1) 248 Net current-period other comprehensive (loss) income (104) 241 (3) 1 135 Balance at December 31, 2016 $ (1,275) $ (347) $ (17) $ (37) $ (1,676) Other comprehensive income before reclassifications (5) $ 711 $ 13 $ 33 $ 757 Amounts reclassified from accumulated other comprehensive income (loss) (2) 17 $ 14 11 42 Equity method affiliates (3) 35 35 Net current-period other comprehensive income 746 30 14 44 834 Balance at December 31, 2017 $ (529) $ (317) $ (3) $ 7 $ (842) Other comprehensive income before reclassifications (6) $ (180) $ (84) $ (1) $ 9 $ (256) Amounts reclassified from accumulated other comprehensive income (loss) (2) 103 (10) 93 Equity method affiliates (3) (5) (5) Net current-period other comprehensive (loss) income (185) 19 (1) (1) (168) Balance at December 31, 2018 $ (714) $ (298) $ (4) $ 6 $ (1,010) (1) All amounts are after tax. Amounts in parentheses indicate debits to accumulated other comprehensive income. (2) Tax effects of reclassifications are disclosed separately in this Note 15. (3) Tax effects related to equity method affiliates are not significant in the reported periods except for the tax expense of $20 million related to the pension component in 2016. (4) Amounts are net of total tax benefit of $52 million, including $36 million related to the retirement plans component, $12 million related to the hedges component, $3 million related to the foreign currency translation adjustments and $1 million related to the investments component. (5) Amounts are net of total tax expense of $97 million, including $88 million related to the foreign currency translation adjustments, $5 million related to the hedges component and $4 million related to the retirement plans component. (6) Amounts are net of total tax benefit of $64 million, including $34 million related to the foreign currency translation adjustments, $33 million related to the retirement plans component and $(3) million related to the hedges component. Most of the changes in equity method affiliate accumulated other comprehensive income components in 2016 relate to disposal transactions with amounts reclassified to the income statement. |
Reclassifications Out of Accumulated Other Comprehensive Income by Component | Reclassifications Out of Accumulated Other Comprehensive Income (AOCI) by Component (1) Amount reclassified from AOCI Affected line item Years ended December 31, in the consolidated Details about AOCI Components 2018 2017 2016 statements of income (loss) Amortization of net actuarial loss $ (138) $ (20) $ (62) (2) Amortization of prior service cost (6) (2) (1) (2) (144) (22) (63) Total before tax 41 5 23 Tax benefit $ (103) $ (17) $ (40) Net of tax Realized losses on investments $ (3) Other expense, net (11) Tax expense $ (14) Net of tax Realized gains (losses) on designated hedges $ 1 $ 4 Sales $ 13 (12) (36) Cost of sales (1) (2) (2) Other expense, net 12 (13) (34) Total before tax (2) 2 12 Tax (expense) benefit $ 10 $ (11) $ (22) Net of tax Total reclassifications for the period $ (93) $ (42) $ (62) Net of tax (1) Amounts in parentheses indicate debits to the statement of income. (2) These accumulated other comprehensive income components are included in net periodic pension cost. See Note 11 (Employee Retirement Plans) to the Consolidated Financial Statements for additional details. |
Earnings (Loss) Per Common Sh_2
Earnings (Loss) Per Common Share (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Earnings (Loss) Per Common Share [Abstract] | |
Computation of Basic and Diluted Earnings (Loss) per Common Share | Years ended December 31, 2018 2017 2016 Net income (loss) attributable to Corning Incorporated $ 1,066 $ (497) $ 3,695 Less: Series A convertible preferred stock dividend 98 98 98 Net income (loss) available to common stockholders - basic 968 (595) 3,597 Plus: Series A convertible preferred stock dividend 98 98 Net income (loss) available to common stockholders - diluted $ 1,066 $ (595) $ 3,695 Weighted-average common shares outstanding - basic 816 895 1,020 Effect of dilutive securities: Stock options and other dilutive securities 10 9 Series A convertible preferred stock (1) 115 115 Weighted-average common shares outstanding - diluted 941 895 1,144 Basic earnings (loss) per common share $ 1.19 $ (0.66) $ 3.53 Diluted earnings (loss) per common share $ 1.13 $ (0.66) $ 3.23 Anti-dilutive potential shares excluded from diluted earnings (loss) per common share: Series A convertible preferred stock dividend (1) 115 Employee stock options and awards 2 13 15 Accelerated share repurchase forward contract Total 2 128 15 |
Reportable Segments (Tables)
Reportable Segments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Reportable Segments [Abstract] | |
Reportable Segments | Display Technologies Optical Communications Specialty Materials Environmental Technologies Life Sciences All Other Total For the year ended December 31, 2018 Segment net sales $ 3,276 $ 4,192 $ 1,479 $ 1,289 $ 946 $ 216 $ 11,398 Depreciation (1) $ 585 $ 218 $ 136 $ 119 $ 50 $ 38 $ 1,146 Research, development and engineering expenses (2) $ 106 $ 212 $ 163 $ 118 $ 20 $ 231 $ 850 Income tax (provision) benefit $ (221) $ (163) $ (83) $ (55) $ (31) $ 76 $ (477) Net income (loss) (3) $ 835 $ 592 $ 313 $ 208 $ 117 $ (281) $ 1,784 Investment in affiliated companies, at equity $ 131 $ 3 $ 6 $ 1 $ 171 $ 312 Segment assets (4) $ 8,794 $ 3,042 $ 2,176 $ 1,633 $ 585 $ 1,018 $ 17,248 Capital expenditures $ 755 $ 417 $ 242 $ 273 $ 55 $ 329 $ 2,071 For the year ended December 31, 2017 Segment net sales $ 3,137 $ 3,545 $ 1,403 $ 1,106 $ 879 $ 188 $ 10,258 Depreciation (1) $ 534 $ 193 $ 129 $ 124 $ 52 $ 45 $ 1,077 Research, development and engineering expenses (2) $ 88 $ 174 $ 152 $ 113 $ 22 $ 211 $ 760 Income tax (provision) benefit $ (234) $ (129) $ (79) $ (44) $ (25) $ 69 $ (442) Net income (loss) (3) $ 888 $ 469 $ 301 $ 165 $ 95 $ (259) $ 1,659 Investment in affiliated companies, at equity $ 134 $ 2 $ 3 $ 140 $ 279 Segment assets (4) $ 8,662 $ 2,599 $ 2,155 $ 1,402 $ 538 $ 824 $ 16,180 Capital expenditures $ 795 $ 505 $ 223 $ 157 $ 42 $ 156 $ 1,878 For the year ended December 31, 2016 Segment net sales $ 3,288 $ 3,005 $ 1,124 $ 1,032 $ 839 $ 152 $ 9,440 Depreciation (1) $ 598 $ 175 $ 109 $ 129 $ 58 $ 50 $ 1,119 Research, development and engineering expenses (2) $ 45 $ 147 $ 126 $ 102 $ 24 $ 191 $ 635 Income tax (provision) benefit $ (253) $ (96) $ (61) $ (42) $ (24) $ 55 $ (421) Net income (loss) (3) $ 953 $ 351 $ 228 $ 159 $ 90 $ (220) $ 1,561 Investment in affiliated companies, at equity $ 41 $ (1) $ 32 $ 252 $ 324 Segment assets (4) $ 8,032 $ 2,010 $ 1,604 $ 1,267 $ 504 $ 750 $ 14,167 Capital expenditures $ 464 $ 245 $ 120 $ 97 $ 39 $ 56 $ 1,021 (1) Depreciation expense for Corning’s reportable segments includes an allocation of depreciation of corporate property not specifically identifiable to a segment. (2) Research, development and engineering expenses include direct project spending that is identifiable to a segment. (3) Many of Corning’s administrative and staff functions are performed on a centralized basis. Where practicable, Corning charges these expenses to segments based upon the extent to which each business uses a centralized function. Other staff functions, such as corporate finance, human resources and legal are allocated to segments, primarily as a percentage of sales. (4) Segment assets include inventory, accounts receivable, property, plant and equipment, net of accumulated depreciation, and associated equity companies and cost investments. |
Reconciliation of Reportable Segment and All Other Net Sales to Consolidated Net Sales) | Years ended December 31, 2018 2017 2016 Net sales of reportable segments and All Other $ 11,398 $ 10,258 $ 9,440 Impact of foreign currency movements (1) (108) (142) (50) Net sales $ 11,290 $ 10,116 $ 9,390 (1) This amount primarily represents the impact of foreign currency adjustments in the Display Technologies segment. |
Reconciliation of Reportable Segment Net Income to Consolidated Net Income | Years ended December 31, 2018 2017 2016 Net income of reportable segments $ 2,065 $ 1,918 $ 1,781 Net loss of All Other (281) (259) (220) Unallocated amounts: Impact of foreign currency movements not included in segment net income (loss) (157) (168) (85) Loss on foreign currency hedges related to translated earnings (78) (121) (448) Translation loss on Japanese yen-denominated debt (18) (14) Litigation, regulatory and other legal matters (124) 12 (153) Research, development, and engineering expense (134) (106) (107) Equity in earnings of affiliated companies (1) 390 352 288 Amortization of intangibles (93) (75) (64) Interest expense, net (149) (110) (127) Pension mark to market (145) (22) (67) Gain on realignment of equity investment 2,676 Income tax benefit (provision) 42 (1,709) 424 Other corporate items (252) (195) (203) Net income (loss) $ 1,066 $ (497) $ 3,695 (1) Primarily represents the equity earnings of HSG in 2018 and 2017, and Dow Corning in 2016. |
Reconciliation of Reportable Segment Assets to Consolidated Total Assets | December 31, 2018 2017 2016 Total assets of reportable segments $ 16,230 $ 15,356 $ 13,417 Non-reportable segments 1,018 824 750 Unallocated amounts: Current assets (1) 3,065 5,315 6,070 Investments (2) 64 61 12 Property, plant and equipment, net (3) 1,928 1,628 1,681 Other non-current assets (4) 5,200 4,310 5,969 Total assets $ 27,505 $ 27,494 $ 27,899 (1) Includes current corporate assets, primarily cash, short-term investments, current portion of long-term derivative assets and deferred taxes. (2) Primarily represents corporate equity and cost basis investments. Asset balance does not include equity method affiliate liability balance of $105 and $241 for HSG in 2017 and 2016, respectively. (3) Represents corporate property not specifically identifiable to an operating segment. (4) Includes non-current corporate assets, pension assets, long-term derivative assets and deferred taxes. |
Selected Financial Information On Product Lines and Reportable Segments | Years Ended December 31, Revenues from External Customers 2018 2017 2016 Display Technologies $ 3,276 $ 3,137 $ 3,288 Optical Communications Carrier network 3,084 2,720 2,274 Enterprise network 1,108 825 731 Total Optical Communications 4,192 3,545 3,005 Specialty Materials Corning Gorilla Glass 1,069 1,044 807 Advanced optics and other specialty glass 410 359 317 Total Specialty Materials 1,479 1,403 1,124 Environmental Technologies Automotive and other 719 627 585 Diesel 570 479 447 Total Environmental Technologies 1,289 1,106 1,032 Life Sciences Labware 536 524 512 Cell culture products 410 355 327 Total Life Science 946 879 839 All Other 216 188 152 $ 11,398 $ 10,258 $ 9,440 |
Information Concerning Principal Geographic Areas | 2018 2017 2016 Net sales (2) Long-lived assets (1) Net sales (2) Long-lived assets (1) Net sales (2) Long-lived assets (1) North America United States $ 3,569 $ 7,383 $ 3,146 $ 6,605 $ 2,625 $ 6,318 Canada 296 127 287 144 282 142 Mexico 53 200 27 174 50 134 Total North America 3,918 7,710 3,460 6,923 2,957 6,594 Asia Pacific Japan 415 1,148 476 1,119 455 1,008 Taiwan 921 2,326 900 2,357 857 2,347 China 2,716 2,811 2,247 2,125 2,092 1,524 Korea 1,259 3,736 1,337 3,869 1,464 3,413 Other 436 85 378 71 363 167 Total Asia Pacific 5,747 10,106 5,338 9,541 5,231 8,459 Europe Germany 451 508 426 236 363 154 Other 905 1,155 701 1,108 617 1,125 Total Europe 1,356 1,663 1,127 1,344 980 1,279 All Other 377 40 333 46 272 44 Total $ 11,398 $ 19,519 $ 10,258 $ 17,854 $ 9,440 $ 16,376 (1) Long-lived assets primarily include investments, plant and equipment, goodwill and other intangible assets. (2) Net sales are attributed to countries based on location of customer. |
Quarterly Operating Results (Ta
Quarterly Operating Results (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Notes Tables | |
Quarterly Operating Results | (In millions, except per share amounts) 2018 First quarter Second quarter Third quarter Fourth quarter Total year Net sales $ 2,500 $ 2,747 $ 3,008 $ 3,035 $ 11,290 Gross margin $ 955 $ 1,072 $ 1,232 $ 1,202 $ 4,461 Equity in earnings of affiliated companies $ 39 $ 31 $ 32 $ 288 $ 390 Provision for income taxes $ (124) $ (126) $ (133) $ (54) $ (437) Net (loss) income attributable to Corning Incorporated $ (589) $ 738 $ 625 $ 292 $ 1,066 Basic (loss) earnings per common share $ (0.72) $ 0.87 $ 0.75 $ 0.27 $ 1.19 Diluted (loss) earnings per common share $ (0.72) $ 0.78 $ 0.67 $ 0.26 $ 1.13 2017 First quarter Second quarter Third quarter Fourth quarter Total year Net sales $ 2,375 $ 2,497 $ 2,607 $ 2,637 $ 10,116 Gross margin $ 951 $ 987 $ 1,050 $ 1,032 $ 4,020 Equity in earnings of affiliated companies $ 80 $ 37 $ 31 $ 213 $ 361 Benefit (provision) for income taxes (1) $ 66 $ (153) $ (89) $ (1,978) $ (2,154) Net income (loss) attributable to Corning Incorporated $ 86 $ 439 $ 390 $ (1,412) $ (497) Basic earnings (loss) per common share $ 0.07 $ 0.46 $ 0.41 $ (1.66) $ (0.66) Diluted earnings (loss) per common share $ 0.07 $ 0.42 $ 0.39 $ (1.66) $ (0.66) In December 2017, the U.S. enacted the 2017 Tax Act which resulted in significant changes to our provision for income taxes during the fourth quarter of 2017. Refer t o Note 4 (Income Taxes) to the Consolidated F inancial S tatements for additional information. |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Narrative) (Details) - USD ($) shares in Millions, $ in Millions | May 31, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jan. 01, 2019 |
Minimum Voting Securities Owned | 20.00% | ||||
Research and development costs | $ 807 | $ 689 | $ 637 | ||
Gain (loss) from foreign currency transaction activity | (43) | 20 | |||
Share-based compensation expense | $ 51 | $ 46 | $ 42 | ||
Benchmark Percentage of Benefit Obligation or Market Related Value of Plan Assets | 10.00% | ||||
Plans [Member] | |||||
Unissued common shares available for future grants authorized | 62 | ||||
Accounting Standards Update 2014-09 [Member] | Retained Earnings [Member] | Subsequent Event [Member] | |||||
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets | $ 230 | ||||
Accounting Standards Update 2016-02 [Member] | Subsequent Event [Member] | |||||
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets | $ 450 | ||||
Minimum [Member] | |||||
Equity Method Investment, Ownership Percentage | 20.00% | ||||
Intangible asset estimated useful lives | 4 years | ||||
Minimum [Member] | Stock Compensation Plan [Member] | |||||
Share-based compensation award exercisable installment period | 1 year | ||||
Minimum [Member] | Restricted Stock [Member] | |||||
Share-based compensation award exercisable installment period | 1 year | ||||
Share-based compensation award expiration period | 1 year | ||||
Maximum [Member] | |||||
Equity Method Investment, Ownership Percentage | 50.00% | ||||
Intangible asset estimated useful lives | 50 years | ||||
Maximum [Member] | Stock Compensation Plan [Member] | |||||
Share-based compensation award exercisable installment period | 5 years | ||||
Share-based compensation award expiration period | 10 years | ||||
Maximum [Member] | Restricted Stock [Member] | |||||
Share-based compensation award exercisable installment period | 10 years | ||||
Share-based compensation award expiration period | 10 years | ||||
Building [Member] | Minimum [Member] | |||||
Estimated useful lives | 10 years | ||||
Building [Member] | Maximum [Member] | |||||
Estimated useful lives | 40 years | ||||
Equipment [Member] | Minimum [Member] | |||||
Estimated useful lives | 2 years | ||||
Equipment [Member] | Maximum [Member] | |||||
Estimated useful lives | 20 years | ||||
Dow Corning Corporation [Member] | |||||
Equity Method Investment, Ownership Percentage | 50.00% | ||||
Subsidiary or Equity Method Investee, Cumulative Percentage Ownership after All Transactions | 100.00% | ||||
Equity Method Investments | $ 4,800 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Valuation of Option Grants under Stock Option Plans) (Details) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility, minimum | 30.60% | 32.40% | 37.10% |
Expected volatility, maximum | 31.40% | 36.10% | 43.10% |
Weighted-average volatility | 31.40% | 36.10% | 41.00% |
Risk-free rate, minimum | 2.70% | 2.10% | 1.40% |
Risk-free rate, maximum | 3.10% | 2.30% | 2.10% |
Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected dividends | 2.22% | 1.98% | 2.28% |
Expected term (in years) | 7 years 4 months 24 days | 7 years 4 months 24 days | 7 years 4 months 24 days |
Pre-vesting departure rate | 0.60% | 0.60% | 0.60% |
Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected dividends | 2.66% | 2.28% | 2.94% |
Expected term (in years) | 7 years 4 months 24 days | 7 years 4 months 24 days | 7 years 4 months 24 days |
Pre-vesting departure rate | 0.60% | 0.60% | 0.60% |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies (Supplemental Disclosure of Cash Flow Information) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Summary of Significant Accounting Policies [Abstract] | ||||
Accruals for capital expenditures | $ 412 | $ 584 | $ 381 | |
Interest | [1] | 205 | 178 | 184 |
Income taxes, net of refunds received | 567 | 405 | 293 | |
Interest costs capitalized | $ 49 | $ 36 | $ 23 | |
[1] | Included in this amount are approximately $49 million, $36 million, and $23 million of interest costs that were capitalized as part of property, plant and equipment, net of accumulated depreciation, in 2018, 2017 and 2016, respectively. |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies (Useful Life of Equipment) (Details) | 12 Months Ended |
Dec. 31, 2018 | |
Computer Hardware and Software [Member] | Minimum [Member] | |
Useful Life | 3 years |
Computer Hardware and Software [Member] | Maximum [Member] | |
Useful Life | 7 years |
Manufacturing Equipment [Member] | Minimum [Member] | |
Useful Life | 2 years |
Manufacturing Equipment [Member] | Maximum [Member] | |
Useful Life | 15 years |
Furniture and Fixtures [Member] | Minimum [Member] | |
Useful Life | 5 years |
Furniture and Fixtures [Member] | Maximum [Member] | |
Useful Life | 10 years |
Transportation Equipment [Member] | Minimum [Member] | |
Useful Life | 3 years |
Transportation Equipment [Member] | Maximum [Member] | |
Useful Life | 20 years |
Revenue (Narrative) (Details)
Revenue (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Customer deposits | $ 922 | $ 382 | |
Credit memoranda issued | $ 0 | 0 | |
Customer Concentration Risk [Member] | Display Technologies And Specialty Materials [Member] | Sales Revenue, Net [Member] | |||
Concentration risk, percentage | 11.00% | ||
Maximum [Member] | |||
Long-term supply commitment | 10 years | ||
Accounting Standards Update 2014-09 [Member] | |||
Customer deposits | $ 1,000 | $ 400 |
Revenue (Disaggregation of Reve
Revenue (Disaggregation of Revenue) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Revenues by Products Categories | $ 3,035 | $ 3,008 | $ 2,747 | $ 2,500 | $ 2,637 | $ 2,607 | $ 2,497 | $ 2,375 | $ 11,290 | $ 10,116 | $ 9,390 |
Display Products [Member] | |||||||||||
Revenues by Products Categories | 3,168 | 2,997 | 3,238 | ||||||||
Telecommunication Products [Member] | |||||||||||
Revenues by Products Categories | 4,192 | 3,545 | 3,005 | ||||||||
Specialty Glass Products [Member] | |||||||||||
Revenues by Products Categories | 1,479 | 1,403 | 1,124 | ||||||||
Environmental Substrate and Filter Products [Member] | |||||||||||
Revenues by Products Categories | 1,289 | 1,106 | 1,032 | ||||||||
Life Science Products [Member] | |||||||||||
Revenues by Products Categories | 946 | 879 | 839 | ||||||||
All Other Products [Member] | |||||||||||
Revenues by Products Categories | $ 216 | $ 186 | $ 152 |
Inventories, Net of Inventory_3
Inventories, Net of Inventory Reserves (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Inventories, Net of Inventory Reserves [Abstract] | ||
Finished goods | $ 854 | $ 739 |
Work in process | 386 | 322 |
Raw materials and accessories | 409 | 306 |
Supplies and packing materials | 388 | 345 |
Total inventories, net of inventory reserves | $ 2,037 | $ 1,712 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | [1] | Jun. 30, 2017 | [1] | Mar. 31, 2017 | [1] | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||
Income tax benefit (provision) | $ 54 | $ 133 | $ 126 | $ 124 | $ 1,978 | [1] | $ 89 | $ 153 | $ (66) | $ 437 | $ 2,154 | [1] | $ (3) | |||
Provisional tax included in income tax expense from normal operations | 412 | |||||||||||||||
Provisional tax included in income tax expense from change in tax rate | 25 | |||||||||||||||
Tax Cuts and Jobs Act of 2017, Incomplete Accounting, Change in Tax Rate, Deferred Tax Asset, Provisional Income Tax Expense (Benefit) | 347 | |||||||||||||||
Tax Cuts and Jobs Act of 2017, Incomplete Accounting, Transition Tax for Accumulated Foreign Earnings, Provisional Income Tax Expense (Benefit) | 1,100 | |||||||||||||||
Reduction of tax benefit due to foreign exchange losses and translation adjustments | 35 | |||||||||||||||
Tax Cuts And Jobs Act Of 2017 Global Intangible Low-Taxed Income Provisional Tax (GILTI tax) | 55 | |||||||||||||||
Tax Cuts And Jobs Act Of 2017 Foreign Derived Intangible Income Provisional Tax (FDII benefit) | 10 | |||||||||||||||
Tax Cuts And Jobs Act Of 2017 Provisional Tax From Truing Up Toll Charge | 20 | |||||||||||||||
Tax Cuts and Jobs Act of 2017, Net Operating Loss Carryforward | 35 | $ 35 | ||||||||||||||
Tax Cuts and Jobs Act of 2017, Net Operating Loss Carryback, Period | 2 years | |||||||||||||||
Tax Cuts and Jobs Act of 2017, Net Operating Loss Carryforward, Period | 20 years | |||||||||||||||
Tax Cuts and Jobs Act of 2017, Foreign Tax Credit Carryforward | 22 | $ 22 | ||||||||||||||
Deferred tax assets valuation allowance | 317 | 456 | 317 | 456 | ||||||||||||
Unrecognized tax benefits that would impact effective tax rate | 263 | 97 | $ 263 | $ 97 | $ 92 | |||||||||||
Percentage of U.S. Subsidiaries Join in Filing of Consolidated United States Federal Income Tax Returns | 80.00% | |||||||||||||||
Statutory U.S. income tax rate | 21.00% | 35.00% | 35.00% | |||||||||||||
Undistributed earnings of foreign subsidiaries | 1,500 | $ 15,400 | $ 1,500 | $ 15,400 | ||||||||||||
Unremitted foreign earnings, percent | 94.00% | |||||||||||||||
Historic foreign earnings to be indefinitely reinvested, percent | 6.00% | |||||||||||||||
Foreign earnings repatriated | 4,200 | |||||||||||||||
Additional income tax as result of agreement with IRS | 172 | |||||||||||||||
Interest expense, net of tax benefit | $ 12 | |||||||||||||||
National Tax Service of Korea [Member] | ||||||||||||||||
Income tax expected refund as result of agreement with tax authority | $ 425 | $ 425 | ||||||||||||||
Foreign Tax Authority [Member] | National Tax Agency, Japan [Member] | Tax Year 2011 [Member] | ||||||||||||||||
Open tax year | 2,011 | |||||||||||||||
Foreign Tax Authority [Member] | National Tax Administration of Taiwan [Member] | Tax Year 2012 [Member] | ||||||||||||||||
Open tax year | 2,012 | |||||||||||||||
Foreign Tax Authority [Member] | National Tax Service of Korea [Member] | Tax Year 2012 [Member] | ||||||||||||||||
Open tax year | 2,012 | |||||||||||||||
Minimum [Member] | ||||||||||||||||
US Statutes of Limitations Period | 3 years | |||||||||||||||
Foreign Statutes of Limitations Period | 3 years | |||||||||||||||
Maximum [Member] | ||||||||||||||||
US Statutes of Limitations Period | 5 years | |||||||||||||||
Foreign Statutes of Limitations Period | 10 years | |||||||||||||||
Accounting Standards Update 2016-16 [Member] | ||||||||||||||||
Cumulative tax benefits in beginning retained earnings | $ 5 | |||||||||||||||
[1] | In December 2017, the U.S. enacted the 2017 Tax Act which resulted in significant changes to our provision for income taxes during the fourth quarter of 2017. Refer to Note 4 (Income Taxes) to the Consolidated Financial Statements for additional information. |
Income Taxes (Income Before Inc
Income Taxes (Income Before Income Taxes) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Taxes [Abstract] | |||
U.S. companies | $ 472 | $ 653 | $ 2,658 |
Non-U.S. companies | 1,031 | 1,004 | 1,034 |
Income before income taxes | $ 1,503 | $ 1,657 | $ 3,692 |
Income Taxes (Current and Defer
Income Taxes (Current and Deferred Amounts of Provision) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | [1] | Sep. 30, 2017 | [1] | Jun. 30, 2017 | [1] | Mar. 31, 2017 | [1] | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Current: | ||||||||||||||||
Federal | $ (256) | $ (20) | $ (1) | |||||||||||||
State and municipal | (22) | (21) | (17) | |||||||||||||
Foreign | (196) | (317) | (287) | |||||||||||||
Deferred: | ||||||||||||||||
Federal | (34) | (1,617) | 310 | |||||||||||||
State and municipal | 4 | (109) | 48 | |||||||||||||
Foreign | 67 | (70) | (50) | |||||||||||||
(Provision) benefit for income taxes | $ (54) | $ (133) | $ (126) | $ (124) | $ (1,978) | $ (89) | $ (153) | $ 66 | $ (437) | $ (2,154) | [1] | $ 3 | ||||
[1] | In December 2017, the U.S. enacted the 2017 Tax Act which resulted in significant changes to our provision for income taxes during the fourth quarter of 2017. Refer to Note 4 (Income Taxes) to the Consolidated Financial Statements for additional information. |
Income Taxes (Reconciliation of
Income Taxes (Reconciliation of the U.S. Statutory Income Tax Rate to Effective Tax Rate) (Details) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Taxes [Abstract] | |||
Statutory U.S. income tax rate | 21.00% | 35.00% | 35.00% |
State income tax (benefit), net of federal effect | 0.90% | 0.80% | (0.30%) |
Global intangible low-taxed income | 3.60% | ||
Repatriation tax on accumulated previously untaxed foreign earnings | (1.20%) | 67.40% | |
Remeasurement of deferred tax assets and liabilities | (0.10%) | 21.00% | |
Rate difference on foreign earnings | (2.30%) | (3.90%) | (9.20%) |
Preliminary IRS settlement of 2013-2014 tax years | 11.50% | ||
Equity earnings impact | 0.10% | (0.40%) | |
Valuation allowance | (3.80%) | 6.80% | 1.20% |
Realignment of Dow Corning interest | (28.20%) | ||
Other items, net | (0.50%) | 2.80% | 1.80% |
Effective income tax rate (benefit) | 29.10% | 130.00% | (0.10%) |
Income Taxes (Tax Effects of Te
Income Taxes (Tax Effects of Temporary Differences and Carryforwards of Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Income Taxes [Abstract] | ||
Loss and tax credit carryforwards | $ 479 | $ 652 |
Other assets | 45 | 43 |
Asset impairments and restructuring reserves | 33 | 94 |
Postretirement medical and life benefits | 162 | 191 |
Other accrued liabilities | 265 | |
Other employee benefits | 289 | 278 |
Gross deferred tax assets | 1,273 | 1,258 |
Valuation allowance | (317) | (456) |
Total deferred tax assets | 956 | 802 |
Intangible and other assets | (96) | (101) |
Other accrued liabilities | (94) | |
Fixed assets | (256) | (245) |
Total deferred tax liabilities | (352) | (440) |
Net deferred tax assets | $ 604 | $ 362 |
Income Taxes (Net Deferred Tax
Income Taxes (Net Deferred Tax Assets) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Income Taxes [Abstract] | ||
Deferred tax assets | $ 951 | $ 813 |
Deferred tax liabilities | (347) | (451) |
Net deferred tax assets | $ 604 | $ 362 |
Income Taxes (Deferred Tax Asse
Income Taxes (Deferred Tax Assets for Loss and Tax Credit Carryforwards) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Net operating losses | $ 449 | |
Tax credits | 30 | |
Deferred Tax Assets Loss And Tax Credit Carry Forward | 479 | $ 652 |
Tax Years 2018 Through 2022 [Member] | ||
Net operating losses | 121 | |
Deferred Tax Assets Loss And Tax Credit Carry Forward | 121 | |
Tax Years 2023 Through 2027 [Member] | ||
Net operating losses | 60 | |
Deferred Tax Assets Loss And Tax Credit Carry Forward | 60 | |
Tax Years 2028 Through 2037 [Member] | ||
Net operating losses | 25 | |
Tax credits | 25 | |
Deferred Tax Assets Loss And Tax Credit Carry Forward | 50 | |
Indefinite [Member] | ||
Net operating losses | 243 | |
Tax credits | 5 | |
Deferred Tax Assets Loss And Tax Credit Carry Forward | $ 248 |
Income Taxes (Reconciliation _2
Income Taxes (Reconciliation of Unrecognized Tax Benefits) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Taxes [Abstract] | |||
Balance at January 1 | $ 252 | $ 243 | $ 253 |
Additions based on tax positions related to the current year | 204 | 1 | 10 |
Additions for tax positions of prior years | 13 | 4 | |
Reductions for tax positions of prior years | (10) | (18) | |
Settlements and lapse of statute of limitations | (11) | (5) | (6) |
Balance at December 31 | $ 435 | $ 252 | $ 243 |
Investments (Narrative) (Detail
Investments (Narrative) (Details) - USD ($) $ in Millions | May 31, 2016 | Dec. 31, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | |
Removal of Carrying Value of Equity Method Investment | $ (383) | ||||
Release of Deferred Tax Liabilities | 105 | ||||
Realignment of Equity Investment, Gain (Loss) | $ 2,676 | ||||
Investment assets | $ 376 | $ 340 | |||
Dow Corning Corporation [Member] | |||||
Equity Method Investment, Ownership Percentage | 50.00% | ||||
Subsidiary or Equity Method Investee, Cumulative Percentage Ownership after All Transactions | 100.00% | ||||
Equity Method Investments | $ 4,800 | ||||
Pittsburgh Corning Corporation PCC [Member] | |||||
Equity Method Investment, Ownership Percentage | 50.00% | ||||
HSG [Member] | |||||
Equity Method Investment, Ownership Percentage | [1],[2] | 50.00% | |||
Investment assets | $ 42 | ||||
HSG [Member] | |||||
Removal of Carrying Value of Equity Method Investment | $ 383 | ||||
[1] | Amount reflects Corning's direct ownership interests in the affiliated companies at December 31, 2018 and December 31, 2017. Corning does not control any of such entities. | ||||
[2] | HSG indirectly holds an 80.5% interest in a HSG operating partnership. At December 31, 2018, the carrying value of the investment in HSG was $42 million and recorded in Investments. At December 31, 2017, the negative carrying value of the investment in HSG was $105 million and recorded in Other Liabilities. |
Investments (Investments) (Deta
Investments (Investments) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | May 31, 2016 | |
Other investments | $ 22 | $ 60 | ||
Investment assets | 376 | 340 | ||
Investment liabilities | 105 | |||
Dow Corning Corporation [Member] | ||||
Ownership interest | 50.00% | |||
Investment in affiliated companies, at equity | $ 4,800 | |||
All Other [Member] | ||||
Investment in affiliated companies, at equity | [1] | $ 354 | 280 | |
HSG [Member] | ||||
Ownership interest | [1],[2] | 50.00% | ||
Investment assets | $ 42 | |||
Investment liabilities | [1],[2] | $ 105 | ||
HSG [Member] | HSG Operating Partnership [Member] | ||||
Ownership interest | 80.50% | |||
Minimum [Member] | ||||
Ownership interest | 20.00% | |||
Maximum [Member] | ||||
Ownership interest | 50.00% | |||
[1] | Amount reflects Corning's direct ownership interests in the affiliated companies at December 31, 2018 and December 31, 2017. Corning does not control any of such entities. | |||
[2] | HSG indirectly holds an 80.5% interest in a HSG operating partnership. At December 31, 2018, the carrying value of the investment in HSG was $42 million and recorded in Investments. At December 31, 2017, the negative carrying value of the investment in HSG was $105 million and recorded in Other Liabilities. |
Investments (Results From Opera
Investments (Results From Operations) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Net sales | $ 3,035 | $ 3,008 | $ 2,747 | $ 2,500 | $ 2,637 | $ 2,607 | $ 2,497 | $ 2,375 | $ 11,290 | $ 10,116 | $ 9,390 |
Corning’s equity in earnings of affiliated companies | 288 | $ 32 | $ 31 | $ 39 | 213 | $ 31 | $ 37 | $ 80 | 390 | 361 | 284 |
Dividends received from affiliated companies | 241 | 201 | 85 | ||||||||
Affiliated Companies [Member] | |||||||||||
Net sales | 1,759 | 2,346 | 4,024 | ||||||||
Gross profit | 424 | 560 | 1,006 | ||||||||
Net income | 835 | 721 | 565 | ||||||||
Corning’s equity in earnings of affiliated companies | 390 | 361 | 284 | ||||||||
Corning sales to affiliated companies | 184 | 108 | 95 | ||||||||
Corning purchases from affiliated companies | 11 | 12 | 12 | ||||||||
Corning transfers of assets, at cost, to affiliated companies | 2 | 22 | 44 | ||||||||
Dividends received from affiliated companies | 241 | 201 | 85 | ||||||||
Current assets | 1,716 | 1,593 | 1,716 | 1,593 | |||||||
Noncurrent assets | 1,922 | 1,999 | 1,922 | 1,999 | |||||||
Short-term borrowings, including current portion of long-term debt | 8 | 3 | 8 | 3 | |||||||
Other current liabilities | 810 | 700 | 810 | 700 | |||||||
Long-term debt | 14 | 16 | 14 | 16 | |||||||
Other long-term liabilities | 1,708 | 2,128 | 1,708 | 2,128 | |||||||
Non-controlling interest | 259 | 313 | 259 | 313 | |||||||
Balances due from affiliated companies | 95 | 47 | 95 | 47 | |||||||
HSG [Member] | |||||||||||
Net sales | 1,158 | 1,716 | 1,119 | ||||||||
Gross profit | 367 | 469 | 361 | ||||||||
Net income | 814 | 706 | 421 | ||||||||
Corning’s equity in earnings of affiliated companies | 388 | 352 | 212 | ||||||||
Dividends received from affiliated companies | 241 | 196 | $ 65 | ||||||||
Current assets | 1,188 | 1,206 | 1,188 | 1,206 | |||||||
Noncurrent assets | 1,414 | 1,522 | 1,414 | 1,522 | |||||||
Short-term borrowings, including current portion of long-term debt | 3 | 3 | 3 | 3 | |||||||
Other current liabilities | 540 | 484 | 540 | 484 | |||||||
Long-term debt | 11 | 15 | 11 | 15 | |||||||
Other long-term liabilities | 1,708 | 2,126 | 1,708 | 2,126 | |||||||
Non-controlling interest | $ 259 | $ 313 | $ 259 | $ 313 |
Investments (Gain of Realignmen
Investments (Gain of Realignment) (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2016USD ($) | ||
Gain of Realignment [Line Items] | ||
Cash | $ 4,818 | |
Carrying Value of Dow Corning Equity Investment | (1,560) | |
Carrying Value of HSG Equity Investment | (383) | |
Other | (199) | [1] |
Gain | 2,676 | |
Reclassification out of Accumulated Other Comprehensive Income [Member] | ||
Gain of Realignment [Line Items] | ||
Defined Benefit Plan, Actuarial Gain (Loss) | 260 | |
Foreign Currency Transaction Gain, before Tax | $ 45 | |
[1] | Primarily consists of the release of accumulated other comprehensive income items related to unamortized actuarial losses related to Dow Corning's pension plan and foreign currency translation gains in the amounts of $260 million and $45 million, respectively. |
Acquisitions (Narrative) (Detai
Acquisitions (Narrative) (Details) $ in Millions | Dec. 03, 2018USD ($) | Jun. 01, 2018USD ($) | Dec. 31, 2018USD ($)item |
Number of businesses acquired | item | 2 | ||
Purchase consideration | $ 841 | ||
Communications Market Division [Member] | |||
Purchase consideration | 841 | ||
Other intangible assets | 525 | ||
Business combination, acquisition related costs | 18 | ||
Communications Market Division [Member] | Customer Relationships [Member] | |||
Other intangible assets | $ 434 | ||
Intangible asset estimated useful lives | 14 years | ||
Communications Market Division [Member] | Other Intangible Assets [Member] | |||
Other intangible assets | $ 91 | ||
Intangible asset estimated useful lives | 11 years | ||
Purchased Assets [Member] | |||
Purchase consideration | $ 801 | ||
German Services Company [Member] | |||
Purchase consideration | $ 40 | ||
Business combination ownership interest acquired | 100.00% | ||
Minimum [Member] | |||
Intangible asset estimated useful lives | 4 years | ||
Maximum [Member] | |||
Intangible asset estimated useful lives | 50 years |
Acquisitions (Recognized Amount
Acquisitions (Recognized Amounts of Identified Assets Acquired and Liabilities Assumed) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Purchase consideration | $ 841 | |||
Goodwill | 1,936 | $ 1,694 | $ 1,577 | |
Optical Communications [Member] | ||||
Goodwill | 926 | 671 | 645 | |
Display Technologies [Member] | ||||
Goodwill | 132 | $ 136 | $ 126 | |
Communications Market Division [Member] | ||||
Property, plant and equipment | 32 | |||
Other intangible assets | 525 | |||
Other net assets | 16 | |||
Total identified net assets | 573 | |||
Purchase consideration | 841 | |||
Goodwill | [1],[2] | $ 268 | ||
[1] | Amounts reflect measurement period adjustments. | |||
[2] | The goodwill recognized is deductible for U.S. income tax purposes. The goodwill was allocated to the Optical Communications segment. |
Property, Plant and Equipment_3
Property, Plant and Equipment, Net of Accumulated Depreciation (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Property, Plant and Equipment, Net of Accumulated Depreciation [Abstract] | |||
Interest costs capitalized | $ 49 | $ 36 | $ 23 |
Precious metals | 3,000 | 3,000 | |
Depletion | $ 14 | $ 13 | $ 20 |
Property, Plant and Equipment_4
Property, Plant and Equipment, Net of Accumulated Depreciation (Property, Plant and Equipment, Net of Accumulated Depreciation) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Property, plant and equipment | $ 26,827 | $ 24,826 |
Accumulated depreciation | (11,932) | (10,809) |
Total | 14,895 | 14,017 |
Land [Member] | ||
Property, plant and equipment | 467 | 482 |
Building [Member] | ||
Property, plant and equipment | 5,924 | 5,864 |
Equipment [Member] | ||
Property, plant and equipment | 18,218 | 16,648 |
Construction in Progress [Member] | ||
Property, plant and equipment | $ 2,218 | $ 1,832 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets (Narrative) (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018USD ($)item | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Number of businesses acquired | item | 2 | ||
Goodwill, Gross | $ 8,400 | $ 8,200 | |
Goodwill, Impaired, Accumulated Impairment Loss | 6,500 | 6,500 | |
Finite-lived intangible assets, period increase (decrease) | 423 | ||
Amortization of intangibles | 94 | $ 75 | $ 64 |
Finite lived intangible assets, foreign currency translation gain (loss) | 17 | ||
Finite-Lived Intangible Assets, Amortization Expense, 2019 | 115 | ||
Finite-Lived Intangible Assets, Amortization Expense, 2020 | 114 | ||
Finite-Lived Intangible Assets, Amortization Expense, 2021 | 113 | ||
Finite-Lived Intangible Assets, Amortization Expense, 2022 | 111 | ||
Finite-Lived Intangible Assets, Amortization Expense, 2023 | 110 | ||
Communications Market Division [Member] | |||
Finite-lived intangible assets acquired | 525 | ||
Other Acquisition [Member] | |||
Finite-lived intangible assets acquired | $ 9 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets (Carrying Amount of Goodwill by Segment) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||
Jun. 30, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | ||||
Balance | $ 1,694 | $ 1,577 | ||||
Acquired goodwill | 259 | [1] | 99 | [2] | ||
Measurement period adjustment | 11 | (28) | [3] | |||
Foreign currency translation adjustment | (28) | 46 | ||||
Balance | 1,936 | 1,694 | ||||
Purchase consideration | 841 | |||||
Display Technologies [Member] | ||||||
Balance | 136 | 126 | ||||
Foreign currency translation adjustment | (4) | 10 | ||||
Balance | 132 | 136 | ||||
Optical Communications [Member] | ||||||
Balance | 671 | 645 | ||||
Acquired goodwill | 257 | [1] | 22 | [2] | ||
Measurement period adjustment | 11 | (1) | [3] | |||
Foreign currency translation adjustment | (13) | 5 | ||||
Balance | 926 | 671 | ||||
Specialty Materials [Member] | ||||||
Balance | 150 | 150 | ||||
Balance | 150 | 150 | ||||
Life Sciences [Member] | ||||||
Balance | 623 | 558 | ||||
Acquired goodwill | 2 | [1] | 43 | [2] | ||
Measurement period adjustment | [3] | 1 | ||||
Foreign currency translation adjustment | (8) | 21 | ||||
Balance | 617 | 623 | ||||
All Other [Member] | ||||||
Balance | 114 | 98 | ||||
Acquired goodwill | [2] | 34 | ||||
Measurement period adjustment | $ (28) | (28) | [3] | |||
Foreign currency translation adjustment | (3) | 10 | ||||
Balance | $ 111 | $ 114 | ||||
[1] | The Company completed the acquisition of CMD during the second quarter and the fourth quarter of 2018. | |||||
[2] | The Company completed two small acquisitions in the third quarter of 2017 which are reported in the Optical Communications and Life Sciences segment and one small acquisition in the first quarter of 2017 which is reported in All Other. | |||||
[3] | In the second quarter of 2017, the Company recorded measurement period adjustments of $28 million related to an acquisition completed in a previous period. |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets (Other Intangible Assets) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Amortized intangible assets: | ||
Other intangible assets, gross | $ 1,773 | $ 1,266 |
Other intangible assets, accumulated amortization | 481 | 397 |
Other intangible assets, net | 1,292 | 869 |
Patents, Trademarks, and Trade Names [Member] | ||
Amortized intangible assets: | ||
Other intangible assets, gross | 465 | 382 |
Other intangible assets, accumulated amortization | 203 | 188 |
Other intangible assets, net | 262 | 194 |
Customer Lists and Other [Member] | ||
Amortized intangible assets: | ||
Other intangible assets, gross | 1,308 | 884 |
Other intangible assets, accumulated amortization | 278 | 209 |
Other intangible assets, net | $ 1,030 | $ 675 |
Other Assets and Other Liabil_3
Other Assets and Other Liabilities (Other Assets) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Other Assets and Other Liabilities [Abstract] | ||
Contingent consideration asset | $ 300 | |
Derivative instruments | $ 103 | 197 |
Other current assets | 599 | 494 |
Other current assets | 702 | 991 |
Derivative instruments | 45 | 68 |
South Korean tax deposits | 425 | 319 |
Other non-current assets | 551 | 547 |
Other assets | $ 1,021 | $ 934 |
Other Assets and Other Liabil_4
Other Assets and Other Liabilities (Other Liabilities) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Other Assets and Other Liabilities [Abstract] | ||||
Wages and employee benefits | $ 642 | $ 620 | ||
Income taxes | 169 | 148 | ||
Derivative instruments | 56 | 42 | ||
Asbestos and other litigation (Note 12) | 113 | 41 | ||
Other current liabilities | 871 | 540 | ||
Other accrued liabilities | 1,851 | 1,391 | ||
Defined benefit pension plan liabilities | 831 | 713 | ||
Derivative instruments | 386 | 333 | ||
Asbestos and other litigation (Note 12) | 279 | 338 | ||
Investment in Hemlock Semiconductor Group | 105 | [1] | $ 241 | |
Customer deposits (Note 2) | 922 | 382 | ||
Deferred tax liabilities | 347 | 451 | ||
Other non-current liabilities | 887 | 695 | ||
Other liabilities | $ 3,652 | $ 3,017 | ||
[1] | The negative carrying value resulted from a one-time charge to this entity in 2014 for the permanent abandonment of certain assets. Refer to Note 5 (Investments) to the Consolidated Financial Statements for additional information. |
Debt (Narrative) (Details)
Debt (Narrative) (Details) | 3 Months Ended | 12 Months Ended | |||||||
Dec. 31, 2018USD ($) | Jun. 30, 2018USD ($) | Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Sep. 30, 2018USD ($) | Jun. 30, 2018JPY (¥) | Sep. 30, 2017JPY (¥) | |
Fair value of long-term debt | $ 6,000,000,000 | $ 5,100,000,000 | $ 6,000,000,000 | $ 5,100,000,000 | |||||
Long-term debt | 5,994,000,000 | 4,749,000,000 | 5,994,000,000 | 4,749,000,000 | |||||
Proceeds from Issuance of Unsecured Debt | 889,000,000 | $ 596,000,000 | $ 700,000,000 | 1,485,000,000 | 1,445,000,000 | ||||
4.70% Note 19 Years Term [Member] | |||||||||
Debt Instrument, Face Amount | $ 50,000,000 | $ 50,000,000 | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 4.70% | 4.70% | |||||||
Debt Instrument, Term | 19 years | ||||||||
5.35% Note 30 Years Term [Member] | |||||||||
Debt Instrument, Face Amount | $ 550,000,000 | $ 550,000,000 | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.35% | 5.35% | |||||||
Debt Instrument, Term | 30 years | ||||||||
5.85% Note 50 Years Term [Member] | |||||||||
Debt Instrument, Face Amount | $ 300,000,000 | $ 300,000,000 | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.85% | 5.85% | |||||||
Debt Instrument, Term | 50 years | ||||||||
0.698% Note 7 year term [Member] | |||||||||
Debt Instrument, Face Amount | ¥ | ¥ 21,000,000,000 | ||||||||
Debt Instrument, Interest Rate, Stated Percentage | 0.698% | ||||||||
Debt Instrument, Term | 7 years | ||||||||
0.992% Note 10 year term [Member] | |||||||||
Debt Instrument, Face Amount | ¥ | ¥ 47,000,000,000 | ||||||||
Debt Instrument, Interest Rate, Stated Percentage | 0.992% | ||||||||
Debt Instrument, Term | 10 years | ||||||||
1.583% Note 20 year term [Member] | |||||||||
Debt Instrument, Face Amount | ¥ | ¥ 10,000,000,000 | ||||||||
Debt Instrument, Interest Rate, Stated Percentage | 1.583% | ||||||||
Debt Instrument, Term | 20 years | ||||||||
0.722% Note 7 year term [Member] | |||||||||
Debt Instrument, Face Amount | ¥ | ¥ 10,000,000,000 | ||||||||
Debt Instrument, Interest Rate, Stated Percentage | 0.722% | ||||||||
Debt Instrument, Term | 7 years | ||||||||
1.043% Note 10 year term [Member] | |||||||||
Debt Instrument, Face Amount | ¥ | ¥ 30,500,000,000 | ||||||||
Debt Instrument, Interest Rate, Stated Percentage | 1.043% | ||||||||
Debt Instrument, Term | 10 years | ||||||||
1.219% Note 12 year term [Member] | |||||||||
Debt Instrument, Face Amount | ¥ | ¥ 25,000,000,000 | ||||||||
Debt Instrument, Interest Rate, Stated Percentage | 1.219% | ||||||||
Debt Instrument, Term | 12 years | ||||||||
Debentures, 4.375%, due 2057 [Member] | |||||||||
Debt Instrument, Face Amount | $ 750,000,000 | $ 750,000,000 | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 4.375% | 4.375% | 4.375% | 4.375% | |||||
Debt Instrument, Maturity Date | Nov. 15, 2057 | ||||||||
Proceeds from Issuance of Unsecured Debt | $ 743,000,000 | ||||||||
6.625% Due 2019 [Member] | |||||||||
Debt Instrument, Interest Rate, Stated Percentage | 6.625% | 6.625% | |||||||
Repayment of long-term debt | $ 250,000,000 | ||||||||
Revolving Credit Facility [Member] | Amended Credit Facility [Member] | |||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 1,500,000,000 | ||||||||
Line of Credit Facility, Expiration Date | Aug. 15, 2023 | ||||||||
Line of credit outstanding | 0 | $ 0 | |||||||
Commercial Paper [Member] | |||||||||
Line of credit outstanding | $ 0 | $ 0 | $ 0 | $ 0 |
Debt (Long-term Debt) (Details)
Debt (Long-term Debt) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Total current portion of long-term debt and short-term borrowings | $ 4 | $ 379 |
Total long-term debt | 5,998 | 5,128 |
Less current portion of long-term debt | 4 | 379 |
Long-term debt | 5,994 | 4,749 |
Debentures, 1.5%, Due 2018 [Member] | ||
Debentures | $ 375 | |
Interest rate on debt | 1.50% | |
Debt maturity date | 2,018 | |
Debentures, 6.625%, Due 2019 [Member] | ||
Debentures | $ 245 | |
Interest rate on debt | 6.625% | |
Debt maturity date | 2,019 | |
Debentures, 4.25%, Due 2020 [Member] | ||
Debentures | $ 291 | $ 288 |
Interest rate on debt | 4.25% | 4.25% |
Debt maturity date | 2,020 | 2,020 |
Debentures, 8.875%, Due 2021 [Member] | ||
Debentures | $ 65 | $ 66 |
Interest rate on debt | 8.875% | 8.875% |
Debt maturity date | 2,021 | 2,021 |
Debentures, 2.90%, Due 2022 [Member] | ||
Debentures | $ 373 | $ 373 |
Interest rate on debt | 2.90% | 2.90% |
Debt maturity date | 2,022 | 2,022 |
Debentures, 3.70%, due 2023 [Member] | ||
Debentures | $ 249 | $ 249 |
Average rate | 3.70% | 3.70% |
Debt maturity date | 2,023 | 2,023 |
Medium-Term Notes, Average Rate 7.66%, Due Through 2023 [Member] | ||
Debentures | $ 45 | $ 45 |
Interest rate on debt | 7.66% | 7.66% |
Debt maturity date | 2,023 | 2,023 |
Debentures, 7.00%, Due 2024 [Member] | ||
Debentures | $ 100 | $ 99 |
Interest rate on debt | 7.00% | 7.00% |
Debt maturity date | 2,024 | 2,024 |
Yen-denominated Debentures, .698%, due 2024 [Member] | ||
Debentures | $ 191 | $ 185 |
Interest rate on debt | 0.698% | 0.698% |
Debt maturity date | 2,024 | 2,024 |
Yen-denominated Debentures, .722%, due 2025 [Member] | ||
Debentures | $ 90 | |
Interest rate on debt | 0.722% | |
Debt maturity date | 2,025 | |
Yen-denominated Debentures, .992%, due 2027 [Member] | ||
Debentures | $ 426 | $ 414 |
Interest rate on debt | 0.992% | 0.992% |
Debt maturity date | 2,027 | 2,027 |
Yen-denominated Debentures, 1.043%, due 2028 [Member] | ||
Debentures | $ 276 | |
Interest rate on debt | 1.043% | |
Debt maturity date | 2,028 | |
Debentures, 6.85%, Due 2029 [Member] | ||
Debentures | $ 164 | $ 166 |
Interest rate on debt | 6.85% | 6.85% |
Debt maturity date | 2,029 | 2,029 |
Debentures, 1.219%, due 2030 [Member] | ||
Debentures | $ 226 | |
Interest rate on debt | 1.219% | |
Debt maturity date | 2,030 | |
Debentures, Callable, 7.25%, Due 2036 [Member] | ||
Debentures | $ 248 | $ 248 |
Interest rate on debt | 7.25% | 7.25% |
Debt maturity date | 2,036 | 2,036 |
Debentures, 4.70%, Due 2037 [Member] | ||
Debentures | $ 295 | $ 248 |
Average rate | 4.70% | 4.70% |
Debt maturity date | 2,037 | 2,037 |
Yen-denominated Debentures, 1.583%, due 2037 [Member] | ||
Debentures | $ 91 | $ 85 |
Interest rate on debt | 1.583% | 1.583% |
Debt maturity date | 2,037 | 2,037 |
Debentures, 5.75%, Due 2040 [Member] | ||
Debentures | $ 395 | $ 397 |
Interest rate on debt | 5.75% | 5.75% |
Debt maturity date | 2,040 | 2,040 |
Debentures, 4.75%, Due 2042 [Member] | ||
Debentures | $ 496 | $ 496 |
Interest rate on debt | 4.75% | 4.75% |
Debt maturity date | 2,042 | 2,042 |
Debentures, 5.35%, due 2048 [Member] | ||
Debentures | $ 543 | |
Interest rate on debt | 5.35% | |
Debt maturity date | 2,048 | |
Debentures, 4.375%, due 2057 [Member] | ||
Debentures | $ 742 | $ 743 |
Interest rate on debt | 4.375% | 4.375% |
Debt maturity date | 2,057 | 2,057 |
Debentures, 5.85%, due 2068 [Member] | ||
Debentures | $ 296 | |
Interest rate on debt | 5.85% | |
Debt maturity date | 2,068 | |
Other, Average Rate 5.08%, due through 2043 [Member] | ||
Debentures | $ 396 | $ 406 |
Interest rate on debt | 5.08% | 5.08% |
Debt maturity date | 2,043 | 2,043 |
Debt (Debt Maturities) (Details
Debt (Debt Maturities) (Details) $ in Millions | Dec. 31, 2018USD ($) | [1] |
Debt [Abstract] | ||
Long-term debt, due 2019 | $ 4 | |
Long-term debt, due 2020 | 305 | |
Long-term debt, due 2021 | 68 | |
Long-term debt, due 2022 | 381 | |
Long-term debt, due 2023 | 420 | |
Long-term debt, due Thereafter | $ 4,856 | |
[1] | Excludes interest rate swap gains and bond discounts. |
Employee Retirement Plans (Narr
Employee Retirement Plans (Narrative) (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018USD ($)item | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | |||
Cap on Contribution Toward Future Retiree Medical Coverage | 120.00% | ||
Percentage of Cost to Be Paid by Employees for Retiree Medical Upon Retirement | 100.00% | ||
Defined Benefit Plan, Accumulated Benefit Obligation | $ 3,800 | $ 3,900 | |
Credit Risk of Plan Assets, Long Duration Corporate Bonds | 59.00% | ||
Currency Fluctuations, Assets Invested in Non US Investments | 12.00% | ||
Liquidity Risk, Long Term Investments in Private Equity and Real Estate | 8.00% | ||
Defined Contribution Plan, Cost Recognized | $ 67 | 60 | $ 53 |
Bond Investments [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 60.00% | ||
Minimum [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Number of Bonds | item | 350 | ||
Percent to Yield | 10.00% | ||
Minimum [Member] | Equity Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 20.00% | ||
Minimum [Member] | Private Equity and Real Estate [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 5.00% | ||
Minimum [Member] | Commodities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 0.00% | ||
Maximum [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Number of Bonds | item | 375 | ||
Percent to Yield | 40.00% | ||
Maximum [Member] | Equity Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 25.00% | ||
Maximum [Member] | Private Equity and Real Estate [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 15.00% | ||
Maximum [Member] | Commodities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 5.00% | ||
United States [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Contribution Plan, Employer Discretionary Contribution Amount | $ 105 | ||
Defined Benefit Plan, Expected Future Employer Contributions, Next Fiscal Year | 75 | ||
International [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Contribution Plan, Employer Discretionary Contribution Amount | 12 | ||
Defined Benefit Plan, Expected Future Employer Contributions, Next Fiscal Year | 31 | ||
Pension Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Future Amortization of Prior Service Cost (Credit) | 7 | ||
Pension Benefits [Member] | United States [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Contribution Plan, Employer Discretionary Contribution Amount | 0 | ||
Pension Benefits [Member] | International [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Contribution Plan, Employer Discretionary Contribution Amount | $ 29 | ||
Postretirement Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Future Amortization of Prior Service Cost (Credit) | 7 | ||
Defined Benefit Plan, Future Amortization of Gain (Loss) | $ 1 |
Employee Retirement Plans (Obli
Employee Retirement Plans (Obligations and Funded Status Schedule) (Details) - Pension Benefits [Member] - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | |
Change in benefit obligation | |||||
Benefit obligation at beginning of year | $ 4,188 | $ 3,887 | |||
Service cost | 103 | 92 | $ 85 | ||
Interest cost | 132 | 126 | 124 | ||
Plan participants’ contributions | 1 | 2 | |||
Plan amendments | 21 | ||||
Actuarial loss (gain) | (210) | 208 | |||
Other | (1) | 3 | |||
Benefits paid | (202) | (195) | |||
Foreign currency translation | (29) | 65 | |||
Benefit obligation at end of year | 4,003 | 4,188 | 3,887 | ||
Change in plan assets | |||||
Fair value of plan assets at beginning of year | 3,539 | 3,225 | |||
Actual return on plan assets | (201) | 413 | |||
Employer contributions | 135 | 46 | |||
Plan participants’ contributions | 1 | 1 | |||
Benefits paid | (208) | (195) | |||
Foreign currency translation | (27) | 49 | |||
Fair value of plan assets at end of year | 3,239 | 3,539 | 3,225 | ||
Funded status at end of year | |||||
Fair value of plan assets | 3,539 | 3,225 | 3,225 | $ 3,239 | $ 3,539 |
Benefit obligations | (4,188) | (3,887) | (3,887) | (4,003) | (4,188) |
Funded status of plans | (764) | (649) | |||
Amounts recognized in the consolidated balance sheets consist of: | |||||
Noncurrent asset | 81 | 76 | |||
Current liability | (29) | (20) | |||
Noncurrent liability | (816) | (705) | |||
Recognized liability | (764) | (649) | |||
Amounts recognized in accumulated other comprehensive income consist of: | |||||
Net actuarial loss | 338 | 300 | |||
Prior service cost (credit) | 36 | 22 | |||
Amount recognized at end of year | 374 | 322 | |||
United States [Member] | |||||
Change in benefit obligation | |||||
Benefit obligation at beginning of year | 3,522 | 3,289 | |||
Service cost | 78 | 66 | 61 | ||
Interest cost | 116 | 112 | 111 | ||
Plan participants’ contributions | 1 | 1 | |||
Plan amendments | 20 | ||||
Actuarial loss (gain) | (200) | 222 | |||
Other | 3 | ||||
Benefits paid | (179) | (171) | |||
Benefit obligation at end of year | 3,358 | 3,522 | 3,289 | ||
Change in plan assets | |||||
Fair value of plan assets at beginning of year | 3,004 | 2,765 | |||
Actual return on plan assets | (202) | 395 | |||
Employer contributions | 118 | 14 | |||
Plan participants’ contributions | 1 | 1 | |||
Benefits paid | (179) | (171) | |||
Fair value of plan assets at end of year | 2,742 | 3,004 | 2,765 | ||
Funded status at end of year | |||||
Fair value of plan assets | 3,004 | 2,765 | 2,765 | 2,742 | 3,004 |
Benefit obligations | (3,522) | (3,289) | (3,289) | (3,358) | (3,522) |
Funded status of plans | (616) | (518) | |||
Amounts recognized in the consolidated balance sheets consist of: | |||||
Current liability | (13) | (12) | |||
Noncurrent liability | (603) | (506) | |||
Recognized liability | (616) | (518) | |||
Amounts recognized in accumulated other comprehensive income consist of: | |||||
Net actuarial loss | 324 | 285 | |||
Prior service cost (credit) | 37 | 25 | |||
Amount recognized at end of year | 361 | 310 | |||
International [Member] | |||||
Change in benefit obligation | |||||
Benefit obligation at beginning of year | 666 | 598 | |||
Service cost | 25 | 26 | 24 | ||
Interest cost | 16 | 14 | 13 | ||
Plan participants’ contributions | 1 | ||||
Plan amendments | 1 | ||||
Actuarial loss (gain) | (10) | (14) | |||
Other | (1) | ||||
Benefits paid | (23) | (24) | |||
Foreign currency translation | (29) | 65 | |||
Benefit obligation at end of year | 645 | 666 | 598 | ||
Change in plan assets | |||||
Fair value of plan assets at beginning of year | 535 | 460 | |||
Actual return on plan assets | 1 | 18 | |||
Employer contributions | 17 | 32 | |||
Benefits paid | (29) | (24) | |||
Foreign currency translation | (27) | 49 | |||
Fair value of plan assets at end of year | 497 | 535 | 460 | ||
Funded status at end of year | |||||
Fair value of plan assets | 535 | 460 | 460 | 497 | 535 |
Benefit obligations | $ (666) | $ (598) | $ (598) | (645) | (666) |
Funded status of plans | (148) | (131) | |||
Amounts recognized in the consolidated balance sheets consist of: | |||||
Noncurrent asset | 81 | 76 | |||
Current liability | (16) | (8) | |||
Noncurrent liability | (213) | (199) | |||
Recognized liability | (148) | (131) | |||
Amounts recognized in accumulated other comprehensive income consist of: | |||||
Net actuarial loss | 14 | 15 | |||
Prior service cost (credit) | (1) | (3) | |||
Amount recognized at end of year | $ 13 | $ 12 |
Employee Retirement Plans (Post
Employee Retirement Plans (Postretirement Benefits) (Details) - Postretirement Benefits [Member] - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | |
Change in benefit obligation | |||||
Benefit obligation at beginning of year | $ 789 | $ 776 | |||
Service cost | 10 | 10 | $ 9 | ||
Interest cost | 24 | 26 | 26 | ||
Plan participants’ contributions | 8 | 8 | |||
Plan amendments | (40) | ||||
Actuarial loss (gain) | (48) | 17 | |||
Benefits paid | (46) | (50) | |||
Medicare subsidy received | 2 | 2 | |||
Benefit obligation at end of year | 699 | 789 | 776 | ||
Funded status at end of year | |||||
Benefit obligations | $ (789) | $ (776) | $ (776) | $ (699) | $ (789) |
Funded status of plans | (699) | (789) | |||
Amounts recognized in the consolidated balance sheets consist of: | |||||
Current liability | (37) | (40) | |||
Noncurrent liability | (662) | (749) | |||
Recognized liability | (699) | (789) | |||
Amounts recognized in accumulated other comprehensive income consist of: | |||||
Net actuarial loss | 21 | 68 | |||
Prior service credit | (44) | (12) | |||
Amount recognized at end of year | $ (23) | $ 56 |
Employee Retirement Plans (Bene
Employee Retirement Plans (Benefit Obligations in Excess of Fair Value of Plan Assets) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Employee Retirement Plans [Abstract] | ||
Projected benefit obligation | $ 3,754 | $ 3,843 |
Fair value of plan assets | $ 2,910 | $ 3,173 |
Employee Retirement Plans (Accu
Employee Retirement Plans (Accumulated Benefit Obligation in Excess of Fair Value of Plan Assets) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Employee Retirement Plans [Abstract] | ||
Accumulated benefit obligation | $ 3,410 | $ 3,555 |
Fair value of plan assets | $ 2,766 | $ 3,025 |
Employee Retirement Plans (Net
Employee Retirement Plans (Net Periodic Benefit Expense) (Details) - Pension Benefits [Member] - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | $ 103 | $ 92 | $ 85 |
Interest cost | 132 | 126 | 124 |
Expected return on plan assets | (189) | (174) | (165) |
Amortization of prior service cost (credit) | 6 | 5 | 6 |
Recognition of actuarial loss | 145 | 21 | 67 |
Total net periodic benefit expense | 197 | 70 | 117 |
Settlement charge | (1) | 1 | |
Total expense | 196 | 70 | 118 |
Settlements | 1 | (2) | |
Current year actuarial loss (gain) | 180 | (30) | 84 |
Recognition of actuarial loss | (145) | (21) | (64) |
Current year prior service cost/credit | 20 | ||
Amortization of prior service (cost) credit | (6) | (5) | (6) |
Total recognized in other comprehensive loss (income) | 50 | (56) | 12 |
United States [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 78 | 66 | 61 |
Interest cost | 116 | 112 | 111 |
Expected return on plan assets | (178) | (163) | (153) |
Amortization of prior service cost (credit) | 7 | 6 | 6 |
Recognition of actuarial loss | 143 | 18 | 55 |
Total net periodic benefit expense | 166 | 39 | 80 |
Settlement charge | 1 | ||
Total expense | 166 | 39 | 81 |
Settlements | (2) | ||
Current year actuarial loss (gain) | 182 | (8) | 63 |
Recognition of actuarial loss | (143) | (18) | (55) |
Current year prior service cost/credit | 20 | ||
Amortization of prior service (cost) credit | (7) | (6) | (6) |
Total recognized in other comprehensive loss (income) | 52 | (32) | 0 |
International [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 25 | 26 | 24 |
Interest cost | 16 | 14 | 13 |
Expected return on plan assets | (11) | (11) | (12) |
Amortization of prior service cost (credit) | (1) | (1) | |
Recognition of actuarial loss | 2 | 3 | 12 |
Total net periodic benefit expense | 31 | 31 | 37 |
Settlement charge | (1) | ||
Total expense | 30 | 31 | 37 |
Settlements | 1 | ||
Current year actuarial loss (gain) | (2) | (22) | 21 |
Recognition of actuarial loss | (2) | (3) | (9) |
Amortization of prior service (cost) credit | 1 | 1 | |
Total recognized in other comprehensive loss (income) | $ (2) | $ (24) | $ 12 |
Employee Retirement Plans (Ne_2
Employee Retirement Plans (Net Periodic Benefit Cost of Postretirement Benefits) (Details) - Postretirement Benefits [Member] - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | $ 10 | $ 10 | $ 9 |
Interest cost | 24 | 26 | 26 |
Amortization of actuarial net gain | (1) | (1) | |
Amortization of prior service credit | (7) | (3) | (4) |
Total net periodic benefit expense | 27 | 32 | 30 |
Current year actuarial loss (gain) | (47) | 17 | 15 |
Amortization of actuarial net gain | 1 | 1 | |
Current year prior service cost/credit | (40) | ||
Amortization of prior service (cost) credit | 7 | 3 | 5 |
Total recognized in other comprehensive loss (income) | (80) | 21 | 21 |
Total recognized in net periodic benefit cost and other comprehensive income | $ (53) | $ 53 | $ 51 |
Employee Retirement Plans (Weig
Employee Retirement Plans (Weighted-average Assumptions Used to Determine Benefit Obligations and Net Periodic Benefit Cost) (Details) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Postretirement Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 4.33% | 3.63% | 4.07% |
Discount rate | 3.63% | 4.06% | 4.31% |
United States [Member] | Pension Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 4.28% | 3.58% | 4.01% |
Rate of compensation increase | 3.50% | 3.50% | 3.50% |
Discount rate | 3.58% | 4.01% | 4.24% |
Expected return on plan assets | 6.00% | 6.00% | 6.00% |
Rate of compensation increase | 3.50% | 3.50% | 3.50% |
International [Member] | Pension Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 1.96% | 1.93% | 2.29% |
Rate of compensation increase | 2.96% | 2.81% | 3.97% |
Discount rate | 1.93% | 2.29% | 3.23% |
Expected return on plan assets | 2.13% | 3.97% | 3.92% |
Rate of compensation increase | 2.81% | 2.06% | 2.89% |
Employee Retirement Plans (Assu
Employee Retirement Plans (Assumed Health Care Trend Rates) (Details) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Employee Retirement Plans [Abstract] | ||
Health care cost trend rate assumed for next year | 7.00% | 6.50% |
Rate that the cost trend rate gradually declines to | 5.00% | 5.00% |
Year that the rate reaches the ultimate trend rate | 2,027 | 2,024 |
Employee Retirement Plans (Effe
Employee Retirement Plans (Effect One-percent-point Change in Assumed Health Care Cost) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Employee Retirement Plans [Abstract] | |
Effect on annual total of service and interest cost (credit) | $ 3 |
Effect on annual total of service and interest cost (credit) | (2) |
Effect on postretirement benefit obligation | 45 |
Effect on postretirement benefit obligation | $ (37) |
Employee Retirement Plans (Dome
Employee Retirement Plans (Domestic Defined Benefit Plan Assets) (Details) - Pension Benefits [Member] - United States [Member] - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | |
Equity Securities [Member] | U.S. Companies [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 363 | $ 374 | |
Equity Securities [Member] | U.S. Companies [Member] | Quoted Market Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 2 | 57 | |
Equity Securities [Member] | U.S. Companies [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 361 | 317 | |
Equity Securities [Member] | International Companies [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 324 | 420 | |
Equity Securities [Member] | International Companies [Member] | Quoted Market Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 117 | ||
Equity Securities [Member] | International Companies [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 324 | 303 | |
Fixed Income Securities [Member] | U.S. Companies [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1,626 | 1,815 | |
Fixed Income Securities [Member] | U.S. Companies [Member] | Quoted Market Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 183 | 197 | |
Fixed Income Securities [Member] | U.S. Companies [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1,443 | 1,618 | |
Private Equity Funds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | [1] | 82 | 105 |
Private Equity Funds [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | [1] | 82 | 105 |
Real Estate [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | [2] | 148 | 147 |
Real Estate [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | [2] | 148 | 147 |
Cash Equivalents [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 199 | 21 | |
Cash Equivalents [Member] | Quoted Market Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 199 | 21 | |
Commodity Option [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | [3] | 122 | |
Commodity Option [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | [3] | 122 | |
Defined Benefit Plans Assets [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 2,742 | 3,004 | |
Defined Benefit Plans Assets [Member] | Quoted Market Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 384 | 392 | |
Defined Benefit Plans Assets [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 2,128 | 2,360 | |
Defined Benefit Plans Assets [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 230 | $ 252 | |
[1] | This category includes venture capital, leverage buyouts and distressed debt limited partnerships invested primarily in U.S. companies. The inputs are valued by discounted cash flow analysis and comparable sale analysis. | ||
[2] | This category includes industrial, office, apartments, hotels, infrastructure and retail investments which are limited partnerships predominately in the U.S. The inputs are valued by discounted cash flow analysis; comparable sale analysis and periodic external appraisals. | ||
[3] | This category includes investments in energy, industrial metals, precious metals, agricultural and livestock primarily through futures, options, swaps and exchange traded funds. |
Employee Retirement Plans (Inte
Employee Retirement Plans (International Defined Benefit Plan Assets) (Details) - Pension Benefits [Member] - International [Member] - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Insurance Contracts [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | $ 2 | $ 2 |
Insurance Contracts [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 2 | 2 |
Collateralized Mortgage Backed Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 22 | 16 |
Collateralized Mortgage Backed Securities [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 22 | 16 |
Cash Equivalents [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 45 | 40 |
Cash Equivalents [Member] | Quoted Market Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 45 | 40 |
Defined Benefit Plans Assets [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 497 | 535 |
Defined Benefit Plans Assets [Member] | Quoted Market Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 406 | 407 |
Defined Benefit Plans Assets [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 67 | 110 |
Defined Benefit Plans Assets [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 24 | 18 |
U.S. Companies [Member] | Equity Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 8 | |
U.S. Companies [Member] | Equity Securities [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 8 | |
International Companies [Member] | Equity Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 29 | |
International Companies [Member] | Equity Securities [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 29 | |
International Companies [Member] | Fixed Income Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 428 | 440 |
International Companies [Member] | Fixed Income Securities [Member] | Quoted Market Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 361 | 367 |
International Companies [Member] | Fixed Income Securities [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | $ 67 | $ 73 |
Employee Retirement Plans (Chan
Employee Retirement Plans (Changes in Fair Value of Level 3 Assets for Defined Benefit Plans) (Details) - Pension Benefits [Member] - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets at beginning of year | $ 3,539 | $ 3,225 |
Fair value of plan assets at end of year | 3,239 | 3,539 |
United States [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets at beginning of year | 3,004 | 2,765 |
Fair value of plan assets at end of year | 2,742 | 3,004 |
International [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets at beginning of year | 535 | 460 |
Fair value of plan assets at end of year | 497 | 535 |
Private Equity Funds [Member] | United States [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets at beginning of year | 105 | 137 |
Actual return on plan assets relating to assets still held at the reporting date | 15 | 7 |
Transfers in and/or out of level 3 | (38) | (39) |
Fair value of plan assets at end of year | 82 | 105 |
Real Estate [Member] | United States [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets at beginning of year | 147 | 150 |
Actual return on plan assets relating to assets still held at the reporting date | 9 | 6 |
Transfers in and/or out of level 3 | (8) | (9) |
Fair value of plan assets at end of year | 148 | 147 |
Collateralized Mortgage Backed Securities [Member] | International [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets at beginning of year | 16 | |
Transfers in and/or out of level 3 | 6 | 16 |
Fair value of plan assets at end of year | 22 | 16 |
Insurance Contracts [Member] | International [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets at beginning of year | 2 | 2 |
Fair value of plan assets at end of year | $ 2 | $ 2 |
Employee Retirement Plans (Esti
Employee Retirement Plans (Estimated Future Benefit Payments and Gross Medicare to be Received) (Details) $ in Millions | Dec. 31, 2018USD ($) |
Pension Benefits [Member] | United States [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
2,019 | $ 199 |
2,020 | 203 |
2,021 | 212 |
2,022 | 220 |
2,023 | 229 |
2024-2028 | 1,242 |
Pension Benefits [Member] | International [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
2,019 | 23 |
2,020 | 30 |
2,021 | 28 |
2,022 | 31 |
2,023 | 30 |
2024-2028 | 196 |
Postretirement Benefits [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
2,019 | 37 |
2,020 | 40 |
2,021 | 40 |
2,022 | 42 |
2,023 | 42 |
2024-2028 | $ 213 |
Commitments, Contingencies an_3
Commitments, Contingencies and Guarantees (Narrative) (Details) $ in Millions | 1 Months Ended | 12 Months Ended | ||||
Jun. 30, 2018USD ($) | Jun. 30, 2017USD ($) | Dec. 31, 2018USD ($)item | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | May 31, 2016USD ($) | |
Loss Contingency, Accrual, Current | $ 113 | $ 41 | ||||
Loss Contingency, Accrual, Noncurrent | 279 | 338 | ||||
Operating Leases, Rent Expense | 156 | 135 | $ 105 | |||
Dow Corning Breast Implant Litigation [Member] | ||||||
Payment of claims | 1,800 | |||||
Loss Contingency, Accrual | 263 | $ 290 | ||||
Dow Corning Bankruptcy Pendency Interest Claims [Member] | ||||||
Loss Contingency, Accrual | $ 82 | $ 107 | ||||
Indemnification of excess liability | 50.00% | |||||
Pittsburgh Corning Corporation PCC [Member] | ||||||
Equity Method Investment, Ownership Percentage | 50.00% | |||||
Dow Corning Corporation [Member] | ||||||
Equity Method Investment, Ownership Percentage | 50.00% | |||||
Investment in affiliated companies, at equity | $ 4,800 | |||||
Environmental Cleanup and Related Litigation [Member] | ||||||
Number of Hazardous Waste Sites | item | 15 | |||||
Accrual for Environmental Loss Contingencies | $ 30 | 38 | ||||
Amended Pittsburgh Corning Corporation Plan [Member] | Asbestos Litigation [Member] | ||||||
Payment of claims | $ 35 | $ 70 | ||||
Loss Contingency, Accrual | 185 | $ 290 | ||||
Loss Contingency, Accrual, Current | 50 | |||||
Loss Contingency, Accrual, Noncurrent | 135 | |||||
Non-PCC Asbestos Litigation [Member] | Asbestos Litigation [Member] | ||||||
Loss Contingency, Accrual, Noncurrent | $ 146 | $ 147 | ||||
Minimum [Member] | ||||||
Equity Method Investment, Ownership Percentage | 20.00% | |||||
Maximum [Member] | ||||||
Equity Method Investment, Ownership Percentage | 50.00% |
Commitments, Contingencies an_4
Commitments, Contingencies and Guarantees (Obligations) (Details) $ in Millions | Dec. 31, 2018USD ($) | |
Guarantee obligations | $ 240 | |
Contractual obligation payments due | 12,969 | [1] |
Total commitments and contingencies | 13,209 | [1] |
Amended PCC Plan [Member] | ||
Contractual obligation payments due | 185 | |
Purchase Obligations [Member] | ||
Contractual obligation payments due | 339 | [2] |
Capital Expenditure Obligations [Member] | ||
Contractual obligation payments due | 412 | [3] |
Total Debt [Member] | ||
Contractual obligation payments due | 5,642 | [4] |
Interest on Long-term Debt [Member] | ||
Contractual obligation payments due | 5,117 | [5] |
Capital Leases and Financing Obligations [Member] | ||
Contractual obligation payments due | 393 | |
Imputed Interest on Capital Leases and Financing Obligations [Member] | ||
Contractual obligation payments due | 205 | |
Minimum Rental Commitments [Member] | ||
Contractual obligation payments due | 581 | |
Uncertain Tax Positions [Member] | ||
Contractual obligation payments due | 95 | [1] |
Less Than 1 Year [Member] | ||
Guarantee obligations | 98 | |
Contractual obligation payments due | 1,013 | [1] |
Total commitments and contingencies | 1,111 | [1] |
Less Than 1 Year [Member] | Amended PCC Plan [Member] | ||
Contractual obligation payments due | 50 | |
Less Than 1 Year [Member] | Purchase Obligations [Member] | ||
Contractual obligation payments due | 214 | [2] |
Less Than 1 Year [Member] | Capital Expenditure Obligations [Member] | ||
Contractual obligation payments due | 412 | [3] |
Less Than 1 Year [Member] | Interest on Long-term Debt [Member] | ||
Contractual obligation payments due | 231 | [5] |
Less Than 1 Year [Member] | Capital Leases and Financing Obligations [Member] | ||
Contractual obligation payments due | 4 | |
Less Than 1 Year [Member] | Imputed Interest on Capital Leases and Financing Obligations [Member] | ||
Contractual obligation payments due | 20 | |
Less Than 1 Year [Member] | Minimum Rental Commitments [Member] | ||
Contractual obligation payments due | 82 | |
1 to 3 Years [Member] | ||
Guarantee obligations | 12 | |
Contractual obligation payments due | 1,135 | [1] |
Total commitments and contingencies | 1,147 | [1] |
1 to 3 Years [Member] | Amended PCC Plan [Member] | ||
Contractual obligation payments due | 85 | |
1 to 3 Years [Member] | Purchase Obligations [Member] | ||
Contractual obligation payments due | 56 | [2] |
1 to 3 Years [Member] | Total Debt [Member] | ||
Contractual obligation payments due | 362 | [4] |
1 to 3 Years [Member] | Interest on Long-term Debt [Member] | ||
Contractual obligation payments due | 450 | [5] |
1 to 3 Years [Member] | Capital Leases and Financing Obligations [Member] | ||
Contractual obligation payments due | 11 | |
1 to 3 Years [Member] | Imputed Interest on Capital Leases and Financing Obligations [Member] | ||
Contractual obligation payments due | 38 | |
1 to 3 Years [Member] | Minimum Rental Commitments [Member] | ||
Contractual obligation payments due | 133 | |
3 to 5 Years [Member] | ||
Guarantee obligations | 2 | |
Contractual obligation payments due | 1,436 | [1] |
Total commitments and contingencies | 1,438 | [1] |
3 to 5 Years [Member] | Amended PCC Plan [Member] | ||
Contractual obligation payments due | 50 | |
3 to 5 Years [Member] | Purchase Obligations [Member] | ||
Contractual obligation payments due | 28 | [2] |
3 to 5 Years [Member] | Total Debt [Member] | ||
Contractual obligation payments due | 670 | [4] |
3 to 5 Years [Member] | Interest on Long-term Debt [Member] | ||
Contractual obligation payments due | 408 | [5] |
3 to 5 Years [Member] | Capital Leases and Financing Obligations [Member] | ||
Contractual obligation payments due | 132 | |
3 to 5 Years [Member] | Imputed Interest on Capital Leases and Financing Obligations [Member] | ||
Contractual obligation payments due | 37 | |
3 to 5 Years [Member] | Minimum Rental Commitments [Member] | ||
Contractual obligation payments due | 111 | |
More Than 5 Years [Member] | ||
Guarantee obligations | 128 | |
Contractual obligation payments due | 9,290 | [1] |
Total commitments and contingencies | 9,418 | [1] |
More Than 5 Years [Member] | Purchase Obligations [Member] | ||
Contractual obligation payments due | 41 | [2] |
More Than 5 Years [Member] | Total Debt [Member] | ||
Contractual obligation payments due | 4,610 | [4] |
More Than 5 Years [Member] | Interest on Long-term Debt [Member] | ||
Contractual obligation payments due | 4,028 | [5] |
More Than 5 Years [Member] | Capital Leases and Financing Obligations [Member] | ||
Contractual obligation payments due | 246 | |
More Than 5 Years [Member] | Imputed Interest on Capital Leases and Financing Obligations [Member] | ||
Contractual obligation payments due | 110 | |
More Than 5 Years [Member] | Minimum Rental Commitments [Member] | ||
Contractual obligation payments due | 255 | |
Performance Bonds and Guarantees [Member] | ||
Guarantee obligations | 152 | |
Performance Bonds and Guarantees [Member] | Less Than 1 Year [Member] | ||
Guarantee obligations | 23 | |
Performance Bonds and Guarantees [Member] | 1 to 3 Years [Member] | ||
Guarantee obligations | 4 | |
Performance Bonds and Guarantees [Member] | 3 to 5 Years [Member] | ||
Guarantee obligations | 2 | |
Performance Bonds and Guarantees [Member] | More Than 5 Years [Member] | ||
Guarantee obligations | 123 | |
Stand-by Letter of Credit [Member] | ||
Guarantee obligations | 84 | [6] |
Stand-by Letter of Credit [Member] | Less Than 1 Year [Member] | ||
Guarantee obligations | 71 | [6] |
Stand-by Letter of Credit [Member] | 1 to 3 Years [Member] | ||
Guarantee obligations | 8 | [6] |
Stand-by Letter of Credit [Member] | More Than 5 Years [Member] | ||
Guarantee obligations | 5 | [6] |
Credit Facility to Equity Company [Member] | ||
Guarantee obligations | 4 | |
Credit Facility to Equity Company [Member] | Less Than 1 Year [Member] | ||
Guarantee obligations | 4 | |
Other Current Liabilities [Member] | Stand-by Letter of Credit [Member] | ||
Guarantee obligations | 39 | |
Uncertain Tax Positions [Member] | ||
Contractual obligation payments due | $ 95 | |
[1] | At December 31, 2018, $95 million was included on our balance sheet related to uncertain tax positions. | |
[2] | Purchase obligations are enforceable and legally binding obligations which primarily consist of raw material and energy-related take-or-pay contracts. | |
[3] | Capital expenditure obligations primarily reflect amounts associated with our capital expansion activities. | |
[4] | Total debt above is stated at maturity value, and excludes interest rate swap gains/losses and bond discounts. | |
[5] | The estimate of interest payments assumes interest is paid through the date of maturity or expiration of the related debt, based upon stated rates in the respective debt instruments. | |
[6] | At December 31, 2018, $39 million of the $84 million was included in other accrued liabilities on our consolidated balance sheets. |
Commitments, Contingencies an_5
Commitments, Contingencies and Guarantees (Minimum Rental Commitments Under Leases) (Details) $ in Millions | Dec. 31, 2018USD ($) |
Commitments, Contingencies and Guarantees [Abstract] | |
2,019 | $ 82 |
2,020 | 72 |
2,021 | 61 |
2,022 | 53 |
2,023 | 58 |
2024 and thereafter | $ 255 |
Hedging Activities (Narrative)
Hedging Activities (Narrative) (Details) $ in Millions | Dec. 31, 2018USD ($) | Oct. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Oct. 31, 2012USD ($)item |
Derivative Asset, Notional Amount | $ 14,911 | $ 15,718 | ||
Cash Flow Hedging [Member] | Designated as Hedging Instrument [Member] | ||||
Derivative Asset, Notional Amount | $ 16 | |||
Foreign Exchange Forward [Member] | Cash Flow Hedging [Member] | ||||
Amount expected to be reclassified into earnings within the next 12 months | 2 | |||
Interest Rate Contracts [Member] | Designated as Hedging Instrument [Member] | ||||
Derivative Asset, Notional Amount | $ 550 | |||
Interest Rate Contracts [Member] | Fair Value Hedging [Member] | ||||
Number of Interest Rate Derivatives Held | item | 2 | |||
Derivative Asset, Notional Amount | $ 550 | |||
Gross Notional Value, Collar Options [Member] | Not Designated as Hedging Instrument [Member] | ||||
Derivative, Notional Amount | 2,000 | |||
Gross Notional Value Zero-Cost Collars Options [Member] | Not Designated as Hedging Instrument [Member] | ||||
Derivative, Notional Amount | 9,100 | |||
Gross Notional Value Purchased Put Or Call Options [Member] | Not Designated as Hedging Instrument [Member] | ||||
Derivative, Notional Amount | $ 2,600 |
Hedging Activities (Summary of
Hedging Activities (Summary of Notional Amounts and Respective Fair Values of Derivative Financial Instruments) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | |
Notional amount | $ 14,911 | $ 15,718 | |
Asset derivatives, fair value | 148 | 265 | |
Liability derivatives, fair value | (442) | (374) | |
Foreign Exchange Contracts [Member] | Designated as Hedging Instrument [Member] | |||
Notional amount | [1] | 391 | 294 |
Foreign Exchange Contracts [Member] | Designated as Hedging Instrument [Member] | Other Current Assets [Member] | |||
Asset derivatives, fair value | [1] | 4 | 20 |
Foreign Exchange Contracts [Member] | Designated as Hedging Instrument [Member] | Other Assets [Member] | |||
Asset derivatives, fair value | [1] | 2 | 1 |
Foreign Exchange Contracts [Member] | Designated as Hedging Instrument [Member] | Other Accrued Liabilities [Member] | |||
Liability derivatives, fair value | [1] | (2) | |
Foreign Exchange Contracts [Member] | Not Designated as Hedging Instrument [Member] | |||
Notional amount | 900 | 599 | |
Foreign Exchange Contracts [Member] | Not Designated as Hedging Instrument [Member] | Other Current Assets [Member] | |||
Asset derivatives, fair value | 5 | 2 | |
Foreign Exchange Contracts [Member] | Not Designated as Hedging Instrument [Member] | Other Accrued Liabilities [Member] | |||
Liability derivatives, fair value | (7) | (7) | |
Interest Rate Contracts [Member] | Designated as Hedging Instrument [Member] | |||
Notional amount | 550 | ||
Liability derivatives, fair value | (8) | ||
Translated Earnings Contracts [Member] | Not Designated as Hedging Instrument [Member] | |||
Notional amount | 13,620 | 14,275 | |
Translated Earnings Contracts [Member] | Not Designated as Hedging Instrument [Member] | Other Current Assets [Member] | |||
Asset derivatives, fair value | 94 | 176 | |
Translated Earnings Contracts [Member] | Not Designated as Hedging Instrument [Member] | Other Assets [Member] | |||
Asset derivatives, fair value | 43 | 66 | |
Translated Earnings Contracts [Member] | Not Designated as Hedging Instrument [Member] | Other Accrued Liabilities [Member] | |||
Liability derivatives, fair value | (47) | (34) | |
Translated Earnings Contracts [Member] | Not Designated as Hedging Instrument [Member] | Other Liabilities [Member] | |||
Liability derivatives, fair value | $ (386) | $ (325) | |
[1] | Cash flow hedges with a typical duration of 24 months or less. |
Hedging Activities (Effect on C
Hedging Activities (Effect on Consolidated Financial Statements) (Details) - Cash Flow Hedging [Member] - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Gain recognized in other comprehensive income (OCI) | $ 11 | $ 38 | $ (33) |
Gain/(loss) reclassified from accumulated OCI into income (effective) | 12 | (13) | (34) |
Sales [Member] | |||
Gain/(loss) reclassified from accumulated OCI into income (effective) | 1 | 4 | |
Interest Rate Hedge [Member] | |||
Gain recognized in other comprehensive income (OCI) | 16 | ||
Interest Rate Hedge [Member] | Cost of Sales [Member] | |||
Gain/(loss) reclassified from accumulated OCI into income (effective) | 13 | (12) | (36) |
Foreign Exchange Contracts [Member] | |||
Gain recognized in other comprehensive income (OCI) | (5) | 38 | (33) |
Foreign Exchange Contracts [Member] | Other Expense [Member] | |||
Gain/(loss) reclassified from accumulated OCI into income (effective) | $ (1) | $ (2) | $ (2) |
Hedging Activities (Effect on_2
Hedging Activities (Effect on Consolidated Financial Statements) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Gain (loss) recognized in income | $ (93) | $ (121) | $ (448) |
Not Designated as Hedging Instrument [Member] | |||
Gain (loss) recognized in income | (71) | (137) | (475) |
Foreign Exchange Contracts, Balance Sheet [Member] | Not Designated as Hedging Instrument [Member] | |||
Gain (loss) recognized in income | 27 | (11) | 4 |
Foreign Exchange Contracts, Loans [Member] | Not Designated as Hedging Instrument [Member] | |||
Gain (loss) recognized in income | (5) | (5) | (31) |
Translated Earnings Contracts [Member] | Not Designated as Hedging Instrument [Member] | |||
Gain (loss) recognized in income | $ (93) | $ (121) | $ (448) |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Fair Value, Measurements, Nonrecurring [Member] | ||
Assets, Fair Value Disclosure | $ 0 | $ 0 |
Liabilities, Fair Value Disclosure | $ 0 | 0 |
Samsung Corning Precision Materials Co., Ltd. [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Fair value of contingent consideration | $ 300 |
Fair Value Measurements (Major
Fair Value Measurements (Major Categories of Financial Assets and Liabilities Measured on a Recurring Basis) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | |||
Other current assets | $ 103 | [1] | $ 497 | [2] | |
Investments | [3] | 16 | |||
Other assets | 45 | [1] | 68 | [2],[4] | |
Other accrued liabilities | 56 | [1] | 44 | [2] | |
Other liabilities | 406 | [1],[5] | 353 | [2],[4] | |
Significant Other Observable Inputs (Level 2) [Member] | |||||
Other current assets | 103 | [1] | 197 | [2] | |
Other assets | 45 | [1] | 68 | [2],[4] | |
Other accrued liabilities | 56 | [1] | 42 | [2] | |
Other liabilities | 386 | [1],[5] | 333 | [2],[4] | |
Significant Unobservable Inputs (Level 3) [Member] | |||||
Other current assets | [2] | 300 | |||
Investments | [3] | 16 | |||
Other accrued liabilities | [2] | 2 | |||
Other liabilities | $ 20 | [1],[5] | $ 20 | [2],[4] | |
[1] | Derivative assets and liabilities include foreign exchange contracts which are measured using observable inputs for similar assets and liabilities. | ||||
[2] | Derivative assets and liabilities include foreign exchange contracts which are measured using observable quoted prices for similar assets and liabilities. | ||||
[3] | One of the Company's equity securities was measured using unobservable (Level 3) inputs, in the amount of $16 million. | ||||
[4] | At December 31, 2017, other current assets, other accrued liabilities and other liabilities include contingent consideration that was measured using unobservable (level 3) inputs, in the amounts of $300 million, $2 million and $20 million, respectively. | ||||
[5] | Other liabilities include contingent consideration that was measured using unobservable (Level 3) inputs, in the amount of $20 million. |
Shareholders' Equity (Narrative
Shareholders' Equity (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions | Feb. 06, 2019 | Feb. 05, 2019 | Feb. 06, 2018 | Feb. 05, 2018 | Feb. 01, 2017 | Jan. 31, 2017 | Jan. 15, 2014 | Jul. 31, 2016 | Sep. 30, 2017 | Jun. 30, 2017 | Dec. 31, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Dividends declared per common share | $ 0.72 | $ 0.62 | $ 0.54 | |||||||||||
Preferred Stock, Par or Stated Value Per Share | $ 100 | $ 100 | ||||||||||||
Treasury Stock, Shares, Acquired | 84,400,000 | 197,100,000 | ||||||||||||
Treasury Stock, Value, Acquired | $ 2,230 | $ 2,448 | $ 4,244 | |||||||||||
Payments for Repurchase of Common Stock | 2,227 | $ 2,452 | $ 4,227 | |||||||||||
Open Market [Member] | ||||||||||||||
Treasury Stock, Shares, Acquired | 50,100,000 | |||||||||||||
Treasury Stock, Value, Acquired | $ 1,400 | |||||||||||||
The 2015 Repurchase Program [Member] | ||||||||||||||
Treasury Stock, Shares, Acquired | 110,000,000 | |||||||||||||
Treasury Stock, Value, Acquired | $ 2,200 | |||||||||||||
The 2016 ASR Agreement [Member] | ||||||||||||||
Treasury Stock, Shares, Acquired | 74,400,000 | 12,300,000 | 86,700,000 | |||||||||||
Treasury Stock, Value, Acquired | $ 2,000 | |||||||||||||
The 2016 Repurchase Program [Member] | ||||||||||||||
Stock Repurchase Program, Authorized Amount | $ 4,000 | $ 4,000 | ||||||||||||
The 2017 ASR Agreement [Member] | ||||||||||||||
Treasury Stock, Shares, Acquired | 17,200,000 | 17,100,000 | ||||||||||||
Payments for Repurchase of Common Stock | $ 500 | $ 500 | ||||||||||||
The 2018 Repurchase Program [Member] | ||||||||||||||
Stock Repurchase Program, Authorized Amount | $ 2,000 | |||||||||||||
The 2016 and 2018 Repurchase Program [Member] | ||||||||||||||
Treasury Stock, Shares, Acquired | 74,800,000 | |||||||||||||
Payments for Repurchase of Common Stock | $ 2,200 | |||||||||||||
Common Stock [Member] | ||||||||||||||
Percentage increase of dvidend declared | 16.10% | 14.80% | ||||||||||||
Dividends declared per common share | $ 0.18 | $ 0.155 | $ 0.155 | $ 0.135 | ||||||||||
Convertible Preferred Stock, Shares Issued upon Conversion | 50,000 | |||||||||||||
Convertible Preferred Stock, Threshold Trading Days | 25 days | |||||||||||||
Convertible Preferred Stock, Threshold Consecutive Trading Days | 40 days | |||||||||||||
Minimum Closing Price of Common Stock for the Company to Exercise Option to Convert Preferred Stock | $ 35 | |||||||||||||
Common Stock [Member] | Subsequent Event [Member] | ||||||||||||||
Percentage increase of dvidend declared | 11.10% | |||||||||||||
Dividends declared per common share | $ 0.20 | $ 0.18 | ||||||||||||
Series A Convertible Preferred Stock [Member] | ||||||||||||||
Preferred Stock, Dividend Rate, Percentage | 4.25% | |||||||||||||
Series A Convertible Preferred Stock [Member] | Samsung Corning Precision Materials Co., Ltd. [Member] | ||||||||||||||
Preferred Stock, Par or Stated Value Per Share | $ 100 | |||||||||||||
Stock Issued During Period, Shares, Acquisitions | 1,900 | |||||||||||||
Share Price | $ 1,000,000 | |||||||||||||
Stock Issued During Period, Value, Acquisitions | $ 1,900 | |||||||||||||
Stock Issued During Period, Value, New Issues | $ 400 |
Shareholders' Equity (Changes i
Shareholders' Equity (Changes in Capital Stock) (Details) - USD ($) shares in Millions, $ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Balance, common stock shares (in shares) | 1,708 | |||
Balance, treasury stock shares (in shares) | (850) | |||
Shares purchased for treasury, treasury stock shares (in shares) | (84.4) | (197.1) | ||
Balance, common stock shares (in shares) | 1,713 | 1,708 | ||
Balance, treasury stock shares (in shares) | (925) | (850) | ||
Balance, common stock par value | $ 854 | |||
Balance, treasury stock cost | (16,633) | |||
Shares issued to benefit plans and for option exercises | 126 | $ 355 | $ 182 | |
Purchase of common stock for treasury | (2,230) | (2,448) | (4,244) | |
Other, net | (13) | 196 | [1] | $ (28) |
Balance, common stock par value | 857 | 854 | ||
Balance, treasury stock cost | $ (18,870) | $ (16,633) | ||
Common Stock [Member] | ||||
Balance, common stock shares (in shares) | 1,708 | 1,691 | 1,681 | |
Shares issued to benefit plans and for option exercises, common stock shares (in shares) | 5 | 17 | 10 | |
Balance, common stock shares (in shares) | 1,713 | 1,708 | 1,691 | |
Balance, common stock par value | $ 854 | $ 846 | $ 840 | |
Shares issued to benefit plans and for option exercises | 3 | 8 | 6 | |
Balance, common stock par value | $ 857 | $ 854 | $ 846 | |
Treasury Stock [Member] | ||||
Balance, treasury stock shares (in shares) | (850) | (765) | (551) | |
Shares purchased for treasury, treasury stock shares (in shares) | (75) | (84) | (214) | |
Other, net, treasury stock shares (in shares) | (1) | |||
Balance, treasury stock shares (in shares) | (925) | (850) | (765) | |
Balance, treasury stock cost | $ (16,633) | $ (14,152) | $ (9,725) | |
Shares issued to benefit plans and for option exercises | (2) | (2) | ||
Purchase of common stock for treasury | (2,230) | (2,462) | (4,409) | |
Other, net | (7) | (17) | [1] | (16) |
Balance, treasury stock cost | $ (18,870) | $ (16,633) | $ (14,152) | |
[1] | Adjustment to retained earnings includes the cumulative effect of the accounting change we recorded upon adoption of ASU 2016-09 in 2017 in the amount of $233 million. |
Shareholders' Equity (Accumulat
Shareholders' Equity (Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Millions | 12 Months Ended | |||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||||
Balance | $ 15,770 | $ 17,960 | $ 18,863 | |||
Other comprehensive income | [1] | (256) | 757 | [2] | (175) | [3] |
Amounts reclassified from accumulated other comprehensive income (loss) | [1],[4] | 93 | 42 | [5] | 62 | [5] |
Equity method affiliates | [1] | (5) | 35 | [6] | 248 | [6],[7] |
Net current-period other comprehensive income | [1] | (168) | 834 | 135 | ||
Balance | 13,886 | 15,770 | 17,960 | |||
Other Comprehensive Income, Tax | 64 | 97 | 52 | |||
Other Comprehensive Income (Loss), Equity Method Investments, Tax | 20 | |||||
Accumulated Foreign Currency Adjustment Attributable to Parent [Member] | ||||||
Balance | [1] | (529) | (1,275) | (1,171) | ||
Other comprehensive income | [1] | (180) | 711 | [2] | (89) | [3] |
Equity method affiliates | [1] | (5) | 35 | [6] | (15) | [6],[7] |
Net current-period other comprehensive income | [1] | (185) | 746 | (104) | ||
Balance | [1] | (714) | (529) | (1,275) | ||
Other Comprehensive Income, Tax | 34 | 4 | 36 | |||
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member] | ||||||
Balance | [1] | (317) | (347) | (588) | ||
Other comprehensive income | [1] | (84) | 13 | [2] | (63) | [3] |
Amounts reclassified from accumulated other comprehensive income (loss) | [1],[4] | 103 | 17 | [5] | 40 | [5] |
Equity method affiliates | [1],[6],[7] | 264 | ||||
Net current-period other comprehensive income | [1] | 19 | 30 | 241 | ||
Balance | [1] | (298) | (317) | (347) | ||
Other Comprehensive Income, Tax | (3) | 88 | 12 | |||
Accumulated Net Investment Gain (Loss) Attributable to Parent [Member] | ||||||
Balance | [1] | (3) | (17) | (14) | ||
Other comprehensive income | [1] | (1) | (2) | [3] | ||
Amounts reclassified from accumulated other comprehensive income (loss) | [1],[5] | 14 | ||||
Equity method affiliates | [1],[6],[7] | (1) | ||||
Net current-period other comprehensive income | [1] | (1) | 14 | (3) | ||
Balance | [1] | (4) | (3) | (17) | ||
Other Comprehensive Income, Tax | 1 | |||||
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member] | ||||||
Balance | [1] | 7 | (37) | (38) | ||
Other comprehensive income | [1] | 9 | 33 | [2] | (21) | [3] |
Amounts reclassified from accumulated other comprehensive income (loss) | [1] | (10) | 11 | [5] | 22 | [5] |
Net current-period other comprehensive income | [1] | (1) | 44 | 1 | ||
Balance | [1] | 6 | 7 | (37) | ||
Other Comprehensive Income, Tax | 33 | 5 | 3 | |||
AOCI Including Portion Attributable to Noncontrolling Interest [Member] | ||||||
Balance | [1] | (842) | (1,676) | (1,811) | ||
Balance | [1] | $ (1,010) | $ (842) | $ (1,676) | ||
[1] | All amounts are after tax. Amounts in parentheses indicate debits to accumulated other comprehensive income. | |||||
[2] | Amounts are net of total tax benefit of $64 million, including $34 million related to the foreign currency translation adjustments, $33 million related to the retirement plans component and $(3) million related to the hedges component. | |||||
[3] | Amounts are net of total tax expense of $97 million, including $88 million related to the foreign currency translation adjustments, $5 million related to the hedges component and $4 million related to the retirement plans component. | |||||
[4] | Amounts in parentheses indicate debits to the statement of income. | |||||
[5] | Tax effects of reclassifications are disclosed separately in this Note 15. | |||||
[6] | Tax effects related to equity method affiliates are not significant in the reported periods except for the tax expense of $20 million related to the pension component in 2016. | |||||
[7] | Most of the changes in equity method affiliate accumulated other comprehensive income components in 2016 relate to disposal transactions with amounts reclassified to the income statement. |
Shareholders' Equity (Reclassif
Shareholders' Equity (Reclassifications Out of Accumulated Other Comprehensive Income by Component) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||||||||||||
Sales | $ 3,035 | $ 3,008 | $ 2,747 | $ 2,500 | $ 2,637 | $ 2,607 | $ 2,497 | $ 2,375 | $ 11,290 | $ 10,116 | $ 9,390 | |||||||
Cost of sales | 6,829 | 6,096 | 5,627 | |||||||||||||||
Other income (expense), net | (216) | (81) | (117) | |||||||||||||||
Tax benefit (expense) | $ 54 | $ 133 | $ 126 | $ 124 | $ 1,978 | [1] | $ 89 | [1] | $ 153 | [1] | $ (66) | [1] | 437 | 2,154 | [1] | (3) | ||
Total reclassifications for the period | [2],[3] | (93) | (42) | [4] | (62) | [4] | ||||||||||||
Accumulated Defined Benefit Plans Adjustment, Net Prior Service Attributable to Parent [Member] | ||||||||||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||||||||||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | [3],[5] | (138) | (20) | (62) | ||||||||||||||
Accumulated Defined Benefit Plans Adjustment, Net Gain (Loss) Attributable to Parent [Member] | ||||||||||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||||||||||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | [3],[5] | (6) | (2) | (1) | ||||||||||||||
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member] | ||||||||||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||||||||||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | [3] | (144) | (22) | (63) | ||||||||||||||
Reclassification from AOCI, Current Period, Tax | [3] | 41 | 5 | 23 | ||||||||||||||
Total reclassifications for the period | [2],[3] | (103) | (17) | [4] | (40) | [4] | ||||||||||||
Accumulated Net Investment Gain (Loss) Attributable to Parent [Member] | ||||||||||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||||||||||||
Total reclassifications for the period | [2],[4] | (14) | ||||||||||||||||
Accumulated Net Investment Gain (Loss) Attributable to Parent [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||||||||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||||||||||||
Other income (expense), net | [3] | (3) | ||||||||||||||||
Tax benefit (expense) | [3] | (11) | ||||||||||||||||
Net of tax | [3] | (14) | ||||||||||||||||
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member] | ||||||||||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||||||||||||
Total reclassifications for the period | [2] | 10 | (11) | [4] | (22) | [4] | ||||||||||||
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||||||||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||||||||||||
Sales | [3] | 1 | 4 | |||||||||||||||
Cost of sales | [3] | 13 | (12) | (36) | ||||||||||||||
Other income (expense), net | [3] | (1) | (2) | (2) | ||||||||||||||
Total before tax | [3] | 12 | (13) | (34) | ||||||||||||||
Tax benefit (expense) | [3] | (2) | 2 | 12 | ||||||||||||||
Net of tax | [3] | $ 10 | $ (11) | $ (22) | ||||||||||||||
[1] | In December 2017, the U.S. enacted the 2017 Tax Act which resulted in significant changes to our provision for income taxes during the fourth quarter of 2017. Refer to Note 4 (Income Taxes) to the Consolidated Financial Statements for additional information. | |||||||||||||||||
[2] | All amounts are after tax. Amounts in parentheses indicate debits to accumulated other comprehensive income. | |||||||||||||||||
[3] | Amounts in parentheses indicate debits to the statement of income. | |||||||||||||||||
[4] | Tax effects of reclassifications are disclosed separately in this Note 15. | |||||||||||||||||
[5] | These accumulated other comprehensive income components are included in net periodic pension cost. See Note 11 (Employee Retirement Plans) to the Consolidated Financial Statements for additional details. |
Earnings (Loss) Per Common Sh_3
Earnings (Loss) Per Common Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Net income (loss) attributable to Corning Incorporated | $ 292 | $ 625 | $ 738 | $ (589) | $ (1,412) | $ 390 | $ 439 | $ 86 | $ 1,066 | $ (497) | $ 3,695 | |
Less: Series A convertible preferred stock dividend | 98 | 98 | 98 | |||||||||
Net income (loss) available to common stockholders – basic | 968 | (595) | 3,597 | |||||||||
Plus: Series A convertible preferred stock dividend | 98 | 98 | ||||||||||
Net income (loss) available to common stockholders – diluted | $ 1,066 | $ (595) | $ 3,695 | |||||||||
Weighted-average common shares outstanding - basic (in shares) | 816 | 895 | 1,020 | |||||||||
Effect of dilutive securities: | ||||||||||||
Stock options and other dilutive securities (in shares) | 10 | 9 | ||||||||||
Weighted-average common shares outstanding - diluted (in shares) | 941 | 895 | 1,144 | |||||||||
Basic earnings (loss) per common share (in dollars per share) | $ 0.27 | $ 0.75 | $ 0.87 | $ (0.72) | $ (1.66) | $ 0.41 | $ 0.46 | $ 0.07 | $ 1.19 | $ (0.66) | $ 3.53 | |
Diluted earnings (loss) per common share (in dollars per share) | $ 0.26 | $ 0.67 | $ 0.78 | $ (0.72) | $ (1.66) | $ 0.39 | $ 0.42 | $ 0.07 | $ 1.13 | $ (0.66) | $ 3.23 | |
Anti-dilutive potential shares excluded from diluted earnings per common share: | ||||||||||||
Anti-dilutive potential shares excluded from diluted earnings (loss) per common share (in shares) | 2 | 128 | 15 | |||||||||
Stock Compensation Plan [Member] | ||||||||||||
Anti-dilutive potential shares excluded from diluted earnings per common share: | ||||||||||||
Anti-dilutive potential shares excluded from diluted earnings (loss) per common share (in shares) | 2 | 13 | 15 | |||||||||
Series A Convertible Preferred Stock [Member] | ||||||||||||
Effect of dilutive securities: | ||||||||||||
Stock options and other dilutive securities (in shares) | [1] | 115 | 115 | |||||||||
Anti-dilutive potential shares excluded from diluted earnings per common share: | ||||||||||||
Anti-dilutive potential shares excluded from diluted earnings (loss) per common share (in shares) | [1] | 115 | ||||||||||
[1] | For the year ended December 31, 2017, the Series A preferred stock was anti-dilutive and therefore excluded from the calculation of diluted earnings (loss) per share. |
Reportable Segments (Narrative)
Reportable Segments (Narrative) (Details) | 12 Months Ended |
Dec. 31, 2018item | |
Reportable Segments [Abstract] | |
Number of Material Formulations | 150 |
Segment tax rate | 21.00% |
Reportable Segments (Reportable
Reportable Segments (Reportable Segments) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||||||
Net sales | $ 3,035 | $ 3,008 | $ 2,747 | $ 2,500 | $ 2,637 | $ 2,607 | $ 2,497 | $ 2,375 | $ 11,290 | $ 10,116 | $ 9,390 | ||||||
Depreciation | 1,199 | 1,083 | 1,131 | ||||||||||||||
Research, development and engineering expenses | 993 | 864 | 736 | ||||||||||||||
Income tax (provision) benefit | (54) | (133) | (126) | (124) | (1,978) | [1] | (89) | [1] | (153) | [1] | 66 | [1] | (437) | (2,154) | [1] | 3 | |
Net income (loss) | 292 | $ 625 | $ 738 | $ (589) | (1,412) | $ 390 | $ 439 | $ 86 | 1,066 | (497) | 3,695 | ||||||
Operating Segments [Member] | |||||||||||||||||
Net sales | [2] | 11,398 | 10,258 | 9,440 | |||||||||||||
Depreciation | [3] | 1,146 | 1,077 | 1,119 | |||||||||||||
Research, development and engineering expenses | [4] | 850 | 760 | 635 | |||||||||||||
Income tax (provision) benefit | (477) | (442) | (421) | ||||||||||||||
Net income (loss) | [5] | 1,784 | 1,659 | 1,561 | |||||||||||||
Investment in affiliated companies, at equity | 312 | 279 | 312 | 279 | 324 | ||||||||||||
Segment assets | [6] | 17,248 | 16,180 | 17,248 | 16,180 | 14,167 | |||||||||||
Capital expenditures | 2,071 | 1,878 | 1,021 | ||||||||||||||
Display Technologies [Member] | Operating Segments [Member] | |||||||||||||||||
Net sales | 3,276 | 3,137 | 3,288 | ||||||||||||||
Depreciation | [3] | 585 | 534 | 598 | |||||||||||||
Research, development and engineering expenses | [4] | 106 | 88 | 45 | |||||||||||||
Income tax (provision) benefit | (221) | (234) | (253) | ||||||||||||||
Net income (loss) | [5] | 835 | 888 | 953 | |||||||||||||
Investment in affiliated companies, at equity | 131 | 134 | 131 | 134 | 41 | ||||||||||||
Segment assets | [6] | 8,794 | 8,662 | 8,794 | 8,662 | 8,032 | |||||||||||
Capital expenditures | 755 | 795 | 464 | ||||||||||||||
Optical Communications [Member] | Operating Segments [Member] | |||||||||||||||||
Net sales | 4,192 | 3,545 | 3,005 | ||||||||||||||
Depreciation | [3] | 218 | 193 | 175 | |||||||||||||
Research, development and engineering expenses | [4] | 212 | 174 | 147 | |||||||||||||
Income tax (provision) benefit | (163) | (129) | (96) | ||||||||||||||
Net income (loss) | [5] | 592 | 469 | 351 | |||||||||||||
Investment in affiliated companies, at equity | 3 | 2 | 3 | 2 | (1) | ||||||||||||
Segment assets | [6] | 3,042 | 2,599 | 3,042 | 2,599 | 2,010 | |||||||||||
Capital expenditures | 417 | 505 | 245 | ||||||||||||||
Specialty Materials [Member] | Operating Segments [Member] | |||||||||||||||||
Net sales | 1,479 | 1,403 | 1,124 | ||||||||||||||
Depreciation | [3] | 136 | 129 | 109 | |||||||||||||
Research, development and engineering expenses | [4] | 163 | 152 | 126 | |||||||||||||
Income tax (provision) benefit | (83) | (79) | (61) | ||||||||||||||
Net income (loss) | [5] | 313 | 301 | 228 | |||||||||||||
Investment in affiliated companies, at equity | 6 | 3 | 6 | 3 | |||||||||||||
Segment assets | [6] | 2,176 | 2,155 | 2,176 | 2,155 | 1,604 | |||||||||||
Capital expenditures | 242 | 223 | 120 | ||||||||||||||
Environmental Technologies [Member] | Operating Segments [Member] | |||||||||||||||||
Net sales | 1,289 | 1,106 | 1,032 | ||||||||||||||
Depreciation | [3] | 119 | 124 | 129 | |||||||||||||
Research, development and engineering expenses | [4] | 118 | 113 | 102 | |||||||||||||
Income tax (provision) benefit | (55) | (44) | (42) | ||||||||||||||
Net income (loss) | [5] | 208 | 165 | 159 | |||||||||||||
Investment in affiliated companies, at equity | 32 | ||||||||||||||||
Segment assets | [6] | 1,633 | 1,402 | 1,633 | 1,402 | 1,267 | |||||||||||
Capital expenditures | 273 | 157 | 97 | ||||||||||||||
Life Sciences [Member] | Operating Segments [Member] | |||||||||||||||||
Net sales | 946 | 879 | 839 | ||||||||||||||
Depreciation | [3] | 50 | 52 | 58 | |||||||||||||
Research, development and engineering expenses | [4] | 20 | 22 | 24 | |||||||||||||
Income tax (provision) benefit | (31) | (25) | (24) | ||||||||||||||
Net income (loss) | [5] | 117 | 95 | 90 | |||||||||||||
Investment in affiliated companies, at equity | 1 | 1 | |||||||||||||||
Segment assets | [6] | 585 | 538 | 585 | 538 | 504 | |||||||||||
Capital expenditures | 55 | 42 | 39 | ||||||||||||||
All Other [Member] | |||||||||||||||||
Net sales | 216 | 188 | 152 | ||||||||||||||
Depreciation | [3] | 38 | 45 | 50 | |||||||||||||
Research, development and engineering expenses | [4] | 231 | 211 | 191 | |||||||||||||
Income tax (provision) benefit | 76 | 69 | 55 | ||||||||||||||
Net income (loss) | [5] | (281) | (259) | (220) | |||||||||||||
Investment in affiliated companies, at equity | 171 | 140 | 171 | 140 | 252 | ||||||||||||
Segment assets | [6] | $ 1,018 | $ 824 | 1,018 | 824 | 750 | |||||||||||
Capital expenditures | 329 | 156 | 56 | ||||||||||||||
All Other [Member] | Operating Segments [Member] | |||||||||||||||||
Net sales | $ 216 | $ 188 | $ 152 | ||||||||||||||
[1] | In December 2017, the U.S. enacted the 2017 Tax Act which resulted in significant changes to our provision for income taxes during the fourth quarter of 2017. Refer to Note 4 (Income Taxes) to the Consolidated Financial Statements for additional information. | ||||||||||||||||
[2] | Net sales are attributed to countries based on location of customer. | ||||||||||||||||
[3] | Depreciation expense for Corning's reportable segments includes an allocation of depreciation of corporate property not specifically identifiable to a segment. | ||||||||||||||||
[4] | Research, development and engineering expenses include direct project spending that is identifiable to a segment. | ||||||||||||||||
[5] | 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. | ||||||||||||||||
[6] | Segment assets include inventory, accounts receivable, property, plant and equipment, net of accumulated depreciation, and associated equity companies and cost investments. |
Reportable Segments (Reconcilia
Reportable Segments (Reconciliation of Reportable Segment and All Other Net Sales to Consolidated Net Sales) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Reportable Segments [Abstract] | ||||||||||||
Net sales of reportable segments and All Other | $ 11,398 | $ 10,258 | $ 9,440 | |||||||||
Impact of foreign currency movements | [1] | (108) | (142) | (50) | ||||||||
Net sales | $ 3,035 | $ 3,008 | $ 2,747 | $ 2,500 | $ 2,637 | $ 2,607 | $ 2,497 | $ 2,375 | $ 11,290 | $ 10,116 | $ 9,390 | |
[1] | This amount primarily represents the impact of foreign currency adjustments in the Display Technologies segment. |
Reportable Segments (Reconcil_2
Reportable Segments (Reconciliation of Reportable Segment Net Income to Consolidated Net Income) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||||||||
Gain (loss) on foreign currency hedges related to translated earnings | $ 93 | $ 121 | $ 448 | ||||||||||||||
Research, development and engineering expenses | (993) | (864) | (736) | ||||||||||||||
Equity in earnings of affiliated companies | $ 288 | $ 32 | $ 31 | $ 39 | $ 213 | $ 31 | $ 37 | $ 80 | 390 | 361 | 284 | ||||||
Amortization of intangibles | 94 | 75 | 64 | ||||||||||||||
Interest expense, net | (191) | (155) | (159) | ||||||||||||||
Gain on realignment of equity investment | 2,676 | ||||||||||||||||
Income tax (provision) benefit | (54) | (133) | (126) | (124) | (1,978) | [1] | (89) | [1] | (153) | [1] | 66 | [1] | (437) | (2,154) | [1] | 3 | |
Net income (loss) | $ 292 | $ 625 | $ 738 | $ (589) | $ (1,412) | $ 390 | $ 439 | $ 86 | 1,066 | (497) | 3,695 | ||||||
Operating Segments [Member] | |||||||||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||||||||
Research, development and engineering expenses | [2] | (850) | (760) | (635) | |||||||||||||
Income tax (provision) benefit | (477) | (442) | (421) | ||||||||||||||
Net income (loss) | [3] | 1,784 | 1,659 | 1,561 | |||||||||||||
Operating Segments [Member] | Reportable Segments [Member] | |||||||||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||||||||
Net income (loss) | 2,065 | 1,918 | 1,781 | ||||||||||||||
Operating Segments [Member] | Non Reportable Segments [Member] | |||||||||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||||||||
Net income (loss) | (281) | (259) | (220) | ||||||||||||||
Segment Reconciling Items [Member] | |||||||||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||||||||
Impact of foreign currency movements not included in segment net income (loss) | (157) | (168) | (85) | ||||||||||||||
Gain (loss) on foreign currency hedges related to translated earnings | (78) | (121) | (448) | ||||||||||||||
Translation loss on Japanese yen-denominated debt | (18) | (14) | |||||||||||||||
Litigation, regulatory and other legal matters | (124) | 12 | (153) | ||||||||||||||
Research, development and engineering expenses | [4] | (134) | (106) | (107) | |||||||||||||
Equity in earnings of affiliated companies | 390 | 352 | 288 | ||||||||||||||
Amortization of intangibles | (93) | (75) | (64) | ||||||||||||||
Interest expense, net | (149) | (110) | (127) | ||||||||||||||
Pension mark to market | (145) | (22) | (67) | ||||||||||||||
Gain on realignment of equity investment | 2,676 | ||||||||||||||||
Income tax (provision) benefit | 42 | (1,709) | 424 | ||||||||||||||
Other corporate items | (252) | (195) | (203) | ||||||||||||||
Net income (loss) | $ 1,066 | $ (497) | $ 3,695 | ||||||||||||||
[1] | In December 2017, the U.S. enacted the 2017 Tax Act which resulted in significant changes to our provision for income taxes during the fourth quarter of 2017. Refer to Note 4 (Income Taxes) to the Consolidated Financial Statements for additional information. | ||||||||||||||||
[2] | Research, development and engineering expenses include direct project spending that is identifiable to a segment. | ||||||||||||||||
[3] | Many of Corning's administrative and staff functions are performed on a centralized basis. Where practicable, Corning charges these expenses to segments based upon the extent to which each business uses a centralized function. Other staff functions, such as corporate finance, human resources and legal are allocated to segments, primarily as a percentage of sales. | ||||||||||||||||
[4] | Primarily represents the equity earnings of HSG in 2018 and 2017, and Dow Corning in 2016. |
Reportable Segments (Reconcil_3
Reportable Segments (Reconciliation of Reportable Segment Assets to Consolidated Total Assets) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Segment Reporting, Asset Reconciling Item [Line Items] | |||||
Current assets | $ 7,034 | $ 8,827 | |||
Investment assets | 376 | 340 | |||
Property, plant and equipment, net | 14,895 | 14,017 | |||
Other non-current assets | 1,021 | 934 | |||
Total assets | 27,505 | 27,494 | $ 27,899 | ||
Investment in Hemlock Semiconductor Group | 105 | [1] | 241 | ||
Operating Segments [Member] | Reportable Segments [Member] | |||||
Segment Reporting, Asset Reconciling Item [Line Items] | |||||
Total assets | 16,230 | 15,356 | 13,417 | ||
Operating Segments [Member] | Non Reportable Segments [Member] | |||||
Segment Reporting, Asset Reconciling Item [Line Items] | |||||
Total assets | 1,018 | 824 | 750 | ||
Segment Reconciling Items [Member] | |||||
Segment Reporting, Asset Reconciling Item [Line Items] | |||||
Current assets | [2] | 3,065 | 5,315 | 6,070 | |
Investment assets | [3] | 64 | 61 | 12 | |
Property, plant and equipment, net | [4] | 1,928 | 1,628 | 1,681 | |
Other non-current assets | [5] | $ 5,200 | $ 4,310 | $ 5,969 | |
[1] | The negative carrying value resulted from a one-time charge to this entity in 2014 for the permanent abandonment of certain assets. Refer to Note 5 (Investments) to the Consolidated Financial Statements for additional information. | ||||
[2] | Includes current corporate assets, primarily cash, short-term investments, current portion of long-term derivative assets and deferred taxes. | ||||
[3] | Primarily represents corporate equity and cost basis investments. Asset balance does not include equity method affiliate liability balance of $105 and $241 for HSG in 2017 and 2016, respectively. | ||||
[4] | Represents corporate property not specifically identifiable to an operating segment. | ||||
[5] | Includes non-current corporate assets, pension assets, long-term derivative assets and deferred taxes. |
Reportable Segments (Selected F
Reportable Segments (Selected Financial Information On Product Lines and Reportable Segments) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Net sales | $ 3,035 | $ 3,008 | $ 2,747 | $ 2,500 | $ 2,637 | $ 2,607 | $ 2,497 | $ 2,375 | $ 11,290 | $ 10,116 | $ 9,390 | |
All Other [Member] | ||||||||||||
Net sales | 216 | 188 | 152 | |||||||||
Operating Segments [Member] | ||||||||||||
Net sales | [1] | 11,398 | 10,258 | 9,440 | ||||||||
Operating Segments [Member] | Display Technologies [Member] | ||||||||||||
Net sales | 3,276 | 3,137 | 3,288 | |||||||||
Operating Segments [Member] | Optical Communications [Member] | ||||||||||||
Net sales | 4,192 | 3,545 | 3,005 | |||||||||
Operating Segments [Member] | Optical Communications [Member] | Carrier Network [Member] | ||||||||||||
Net sales | 3,084 | 2,720 | 2,274 | |||||||||
Operating Segments [Member] | Optical Communications [Member] | Enterprise Network [Member] | ||||||||||||
Net sales | 1,108 | 825 | 731 | |||||||||
Operating Segments [Member] | Environmental Technologies [Member] | ||||||||||||
Net sales | 1,289 | 1,106 | 1,032 | |||||||||
Operating Segments [Member] | Environmental Technologies [Member] | Automotive and Other [Member] | ||||||||||||
Net sales | 719 | 627 | 585 | |||||||||
Operating Segments [Member] | Environmental Technologies [Member] | Diesel [Member] | ||||||||||||
Net sales | 570 | 479 | 447 | |||||||||
Operating Segments [Member] | Specialty Materials [Member] | ||||||||||||
Net sales | 1,479 | 1,403 | 1,124 | |||||||||
Operating Segments [Member] | Specialty Materials [Member] | Corning Gorilla Glass [Member] | ||||||||||||
Net sales | 1,069 | 1,044 | 807 | |||||||||
Operating Segments [Member] | Specialty Materials [Member] | Advanced Optics And Other Specialty Glass [Member] | ||||||||||||
Net sales | 410 | 359 | 317 | |||||||||
Operating Segments [Member] | Life Sciences [Member] | ||||||||||||
Net sales | 946 | 879 | 839 | |||||||||
Operating Segments [Member] | Life Sciences [Member] | Labware [Member] | ||||||||||||
Net sales | 536 | 524 | 512 | |||||||||
Operating Segments [Member] | Life Sciences [Member] | Cell Culture Products [Member] | ||||||||||||
Net sales | 410 | 355 | 327 | |||||||||
Operating Segments [Member] | All Other [Member] | ||||||||||||
Net sales | $ 216 | $ 188 | $ 152 | |||||||||
[1] | Net sales are attributed to countries based on location of customer. |
Reportable Segments (Informatio
Reportable Segments (Information Concerning Principal Geographic Areas) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Net sales | $ 3,035 | $ 3,008 | $ 2,747 | $ 2,500 | $ 2,637 | $ 2,607 | $ 2,497 | $ 2,375 | $ 11,290 | $ 10,116 | $ 9,390 | |
United States [Member] | ||||||||||||
Net sales | [1] | 3,569 | 3,146 | 2,625 | ||||||||
Long- lived assets | [2] | 7,383 | 6,605 | 7,383 | 6,605 | 6,318 | ||||||
Canada [Member] | ||||||||||||
Net sales | [1] | 296 | 287 | 282 | ||||||||
Long- lived assets | [2] | 127 | 144 | 127 | 144 | 142 | ||||||
Mexico [Member] | ||||||||||||
Net sales | [1] | 53 | 27 | 50 | ||||||||
Long- lived assets | [2] | 200 | 174 | 200 | 174 | 134 | ||||||
North America [Member] | ||||||||||||
Net sales | [1] | 3,918 | 3,460 | 2,957 | ||||||||
Long- lived assets | [2] | 7,710 | 6,923 | 7,710 | 6,923 | 6,594 | ||||||
Japan [Member] | ||||||||||||
Net sales | [1] | 415 | 476 | 455 | ||||||||
Long- lived assets | [2] | 1,148 | 1,119 | 1,148 | 1,119 | 1,008 | ||||||
Taiwan [Member] | ||||||||||||
Net sales | [1] | 921 | 900 | 857 | ||||||||
Long- lived assets | [2] | 2,326 | 2,357 | 2,326 | 2,357 | 2,347 | ||||||
China [Member] | ||||||||||||
Net sales | [1] | 2,716 | 2,247 | 2,092 | ||||||||
Long- lived assets | [2] | 2,811 | 2,125 | 2,811 | 2,125 | 1,524 | ||||||
Korea [Member] | ||||||||||||
Net sales | [1] | 1,259 | 1,337 | 1,464 | ||||||||
Long- lived assets | [2] | 3,736 | 3,869 | 3,736 | 3,869 | 3,413 | ||||||
Other Asia Pacific [Member] | ||||||||||||
Net sales | [1] | 436 | 378 | 363 | ||||||||
Long- lived assets | [2] | 85 | 71 | 85 | 71 | 167 | ||||||
Asia Pacific [Member] | ||||||||||||
Net sales | [1] | 5,747 | 5,338 | 5,231 | ||||||||
Long- lived assets | [2] | 10,106 | 9,541 | 10,106 | 9,541 | 8,459 | ||||||
Germany [Member] | ||||||||||||
Net sales | [1] | 451 | 426 | 363 | ||||||||
Long- lived assets | [2] | 508 | 236 | 508 | 236 | 154 | ||||||
Other Europe [Member] | ||||||||||||
Net sales | [1] | 905 | 701 | 617 | ||||||||
Long- lived assets | [2] | 1,155 | 1,108 | 1,155 | 1,108 | 1,125 | ||||||
Europe [Member] | ||||||||||||
Net sales | [1] | 1,356 | 1,127 | 980 | ||||||||
Long- lived assets | [2] | 1,663 | 1,344 | 1,663 | 1,344 | 1,279 | ||||||
All Other [Member] | ||||||||||||
Net sales | [1] | 333 | 272 | |||||||||
Long- lived assets | [2] | 40 | 46 | 40 | 46 | 44 | ||||||
Operating Segments [Member] | ||||||||||||
Net sales | [1] | 11,398 | 10,258 | 9,440 | ||||||||
Long- lived assets | [2] | $ 19,519 | $ 17,854 | 19,519 | $ 17,854 | $ 16,376 | ||||||
Operating Segments [Member] | All Other [Member] | ||||||||||||
Net sales | [1] | $ 377 | ||||||||||
[1] | Net sales are attributed to countries based on location of customer. | |||||||||||
[2] | Long-lived assets primarily include investments, plant and equipment, goodwill and other intangible assets. |
Schedule II - Valuation Accou_2
Schedule II - Valuation Accounts and Reserves - Valuation Accounts and Reserves (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Allowance for Doubtful Accounts [Member] | |||
Balance at beginning of period | $ 60 | $ 59 | $ 48 |
Additions | 4 | 1 | 11 |
Balance at end of period | 64 | 60 | 59 |
Valuation Allowance of Deferred Tax Assets [Member] | |||
Balance at beginning of period | 456 | 270 | 238 |
Additions | 17 | 241 | 55 |
Net deductions and other | 156 | 55 | 23 |
Balance at end of period | $ 317 | 456 | 270 |
Business Restructuring Reserves [Member] | |||
Balance at beginning of period | 5 | 3 | |
Additions | 15 | ||
Net deductions and other | $ 5 | 13 | |
Balance at end of period | $ 5 |
Quarterly Operating Results (De
Quarterly Operating Results (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||||||
Quarterly Operating Results [Abstract] | ||||||||||||||||
Net sales | $ 3,035 | $ 3,008 | $ 2,747 | $ 2,500 | $ 2,637 | $ 2,607 | $ 2,497 | $ 2,375 | $ 11,290 | $ 10,116 | $ 9,390 | |||||
Gross margin | 1,202 | 1,232 | 1,072 | 955 | 1,032 | 1,050 | 987 | 951 | 4,461 | 4,020 | 3,763 | |||||
Equity in earnings of affiliated companies | 288 | 32 | 31 | 39 | 213 | 31 | 37 | 80 | 390 | 361 | 284 | |||||
Provision for income taxes | (54) | (133) | (126) | (124) | (1,978) | [1] | (89) | [1] | (153) | [1] | 66 | [1] | (437) | (2,154) | [1] | 3 |
Net income (loss) attributable to Corning Incorporated | $ 292 | $ 625 | $ 738 | $ (589) | $ (1,412) | $ 390 | $ 439 | $ 86 | $ 1,066 | $ (497) | $ 3,695 | |||||
Basic earnings (loss) per common share (in dollars per share) | $ 0.27 | $ 0.75 | $ 0.87 | $ (0.72) | $ (1.66) | $ 0.41 | $ 0.46 | $ 0.07 | $ 1.19 | $ (0.66) | $ 3.53 | |||||
Diluted earnings (loss) per common share (in dollars per share) | $ 0.26 | $ 0.67 | $ 0.78 | $ (0.72) | $ (1.66) | $ 0.39 | $ 0.42 | $ 0.07 | $ 1.13 | $ (0.66) | $ 3.23 | |||||
[1] | In December 2017, the U.S. enacted the 2017 Tax Act which resulted in significant changes to our provision for income taxes during the fourth quarter of 2017. Refer to Note 4 (Income Taxes) to the Consolidated Financial Statements for additional information. |