x
|
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
For the fiscal year ended December 31, 2015
|
o
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
For the transition period from ___ to ___
|
|
Commission file number: 1-3247
|
NEW YORK
|
16-0393470
|
|
(State or other jurisdiction of incorporation or organization)
|
(I.R.S. Employer Identification No.)
|
ONE RIVERFRONT PLAZA, CORNING, NY
|
14831
|
|
(Address of principal executive offices)
|
(Zip Code)
|
Title of each class
|
Name of each exchange on which registered
|
|
Common Stock, $0.50 par value per share
|
New York Stock Exchange
|
Yes
|
x
|
No
|
o
|
Yes
|
o
|
No
|
x
|
Yes
|
x
|
No
|
o
|
Yes
|
x
|
No
|
o
|
Large accelerated filer
|
x
|
Accelerated filer
|
o
|
|||
Non-accelerated filer
|
o
|
(Do not check if a smaller reporting company)
|
Smaller reporting company
|
o
|
Yes
|
o
|
No
|
x
|
·
|
EAGLE XG®, the industry’s first LCD glass substrate that is free of heavy metals;
|
·
|
EAGLE XG® Slim glass, a line of thin glass substrates which enables lighter-weight portable devices and thinner televisions and monitors;
|
·
|
Corning® Willow™ Glass, our ultra-thin flexible glass for use in next-generation consumer electronic technologies, including curved displays for immersive viewing or mounting on non-flat surfaces. This glass is also used in a variety of non-display applications, such as decorative laminates for interior architecture and advanced semiconductor packaging; and
|
·
|
The family of Corning Lotus™ Glass, high-performance display glass developed to enable cutting-edge technologies, including organic light-emitting diode (“OLED”) displays and next generation LCDs. These substrate glasses provide industry-leading levels of low total pitch variation, resulting in brighter, more energy-efficient displays with higher resolutions for consumers and better yields for panel makers.
|
·
|
General economic conditions in each country or region;
|
·
|
Many complex regulatory requirements affecting international trade and investment, including anti-dumping laws, export controls, the Foreign Corrupt Practices Act and local laws prohibiting improper payments. Our operations may be adversely affected by changes in the substance or enforcement of these regulatory requirements, and by actual or alleged violations of them;
|
·
|
Fluctuations in currency exchange rates, convertibility of currencies and restrictions involving the movement of funds between jurisdictions and countries;
|
·
|
Sovereign and political risks that may adversely affect Corning’s profitability and assets;
|
·
|
Geographical concentration of our factories and operations and regional shifts in our customer base;
|
·
|
Periodic health epidemic concerns;
|
·
|
Political unrest, confiscation or expropriation of our assets by foreign governments, terrorism and the potential for other hostilities;
|
·
|
Difficulty in protecting intellectual property, sensitive commercial and operations data, and information technology systems generally;
|
·
|
Differing legal systems, including protection and treatment of intellectual property and patents;
|
·
|
Complex or unclear tax regimes;
|
·
|
Complex tariffs, trade duties and other trade barriers including anti-dumping duties;
|
·
|
Difficulty in collecting obligations owed to us such as accounts receivable;
|
·
|
Natural disasters such as floods, earthquakes, tsunamis and windstorms; and
|
·
|
Potential power loss or disruption affecting manufacturing.
|
·
|
our ability to introduce advantaged products such as glass substrates for liquid crystal displays, optical fiber and cable and hardware and equipment, and environmental substrate and filter products at competitive prices;
|
·
|
our ability to manufacture glass substrates and strengthened glass, to satisfy our customers’ technical requirements and our contractual obligations; and
|
·
|
our ability to develop new products in response to government regulations and laws.
|
·
|
changes in the relative amounts of income before taxes in the various jurisdictions in which we operate that have differing statutory tax rates;
|
·
|
changes in tax treaties and regulations or the interpretation of them;
|
·
|
changes to our assessment about the realizability of our deferred tax assets that are based on estimates of our future results, the prudence and feasibility of possible tax planning strategies, and the economic environments in which we do business;
|
·
|
the outcome of current and future tax audits, examinations, or administrative appeals;
|
·
|
changes in generally accepted accounting principles that affect the accounting for taxes; and
|
·
|
limitations or adverse findings regarding our ability to do business in some jurisdictions.
|
(million square feet)
|
Total
|
Domestic
|
Foreign
|
||
Manufacturing
|
29.5
|
7.6
|
21.9
|
||
Sales and administrative
|
2.3
|
1.9
|
0.4
|
||
Research and development
|
2.2
|
1.9
|
0.3
|
||
Warehouse
|
2.3
|
1.7
|
0.6
|
||
Total
|
36.3
|
13.1
|
23.2
|
(a)
|
Corning Incorporated common stock is listed on the New York Stock Exchange. In addition, it is traded on the Boston, Midwest, Pacific and Philadelphia stock exchanges. Common stock options are traded on the Chicago Board Options Exchange. The ticker symbol for Corning Incorporated is “GLW.”
|
First
quarter
|
Second
quarter
|
Third
quarter
|
Fourth
quarter
|
||||||||
2015
|
|||||||||||
Price range
|
|||||||||||
High
|
$
|
25.16
|
$
|
22.98
|
$
|
20.02
|
$
|
19.29
|
|||
Low
|
$
|
21.89
|
$
|
19.57
|
$
|
15.24
|
$
|
16.36
|
|||
2014
|
|||||||||||
Price range
|
|||||||||||
High
|
$
|
20.99
|
$
|
22.20
|
$
|
22.37
|
$
|
23.52
|
|||
Low
|
$
|
16.55
|
$
|
20.17
|
$
|
19.23
|
$
|
17.03
|
(b)
|
Not applicable.
|
(c)
|
The following table provides information about our purchases of our common stock during the fiscal fourth quarter of 2015:
|
Period
|
Number
of shares
purchased (1)
|
Average
price paid
per share (1)
|
Number
of shares
purchased as
part of publicly
announced
plans or
programs (2)
|
Approximate
dollar value of
shares that
may yet be
purchased
under the plans
or programs (2)
|
|||
October 1-31, 2015
|
54,513,746
|
$18.77
|
54,500,524
|
$4,521,528,007
|
|||
November 1-30, 2015
|
10,654
|
$18.82
|
$4,521,528,007
|
||||
December 1-31, 2015
|
141,145
|
$18.42
|
$4,521,528,007
|
||||
Total at December 31, 2015
|
54,665,545
|
$18.77
|
54,500,524
|
$4,521,528,007
|
(1)
|
These columns reflect the following transactions during the fourth quarter of 2015: (i) the deemed surrender to us of 86,015 shares of common stock to satisfy tax withholding obligations in connection with the vesting of employee restricted stock units; (ii) the surrender to us of 79,006 shares of common stock to satisfy tax withholding obligations in connection with the vesting of restricted stock issued to employees; and (iii) the purchase of 54,500,524 shares of common stock in conjunction with the repurchase programs announced on July 15, 2015.
|
(2)
|
On July 15, 2015, Corning’s Board of Directors authorized the repurchase of up to $2 billion worth of shares of common stock between the date of announcement and December 31, 2016. On October 26, 2015, Corning’s Board of Directors supplemented this program with the authorization to repurchase an additional $4 billion worth of shares of common stock.
|
Years ended December 31,
|
||||||||||||||
2015
|
2014
|
2013
|
2012
|
2011
|
||||||||||
Results of operations
|
||||||||||||||
Net sales
|
$
|
9,111
|
$
|
9,715
|
$
|
7,819
|
$
|
8,012
|
$
|
7,890
|
||||
Research, development and engineering expenses
|
$
|
769
|
$
|
815
|
$
|
710
|
$
|
769
|
$
|
668
|
||||
Equity in earnings of affiliated companies
|
$
|
299
|
$
|
266
|
$
|
547
|
$
|
810
|
$
|
1,471
|
||||
Net income attributable to Corning Incorporated
|
$
|
1,339
|
$
|
2,472
|
$
|
1,961
|
$
|
1,636
|
$
|
2,817
|
||||
Earnings per common share attributable to Corning Incorporated:
|
||||||||||||||
Basic
|
$
|
1.02
|
$
|
1.82
|
$
|
1.35
|
$
|
1.10
|
$
|
1.80
|
||||
Diluted
|
$
|
1.00
|
$
|
1.73
|
$
|
1.34
|
$
|
1.09
|
$
|
1.78
|
||||
Cash dividends declared per common share
|
$
|
0.36
|
$
|
0.52
|
$
|
0.39
|
$
|
0.32
|
$
|
0.23
|
||||
Shares used in computing per share amounts:
|
||||||||||||||
Basic earnings per common share
|
1,219
|
1,305
|
1,452
|
1,494
|
1,562
|
|||||||||
Diluted earnings per common share
|
1,343
|
1,427
|
1,462
|
1,506
|
1,583
|
|||||||||
Financial position
|
||||||||||||||
Working capital
|
$
|
5,455
|
$
|
7,914
|
$
|
7,145
|
$
|
7,739
|
$
|
6,580
|
||||
Total assets
|
$
|
28,547
|
$
|
30,063
|
$
|
28,478
|
$
|
29,375
|
$
|
27,848
|
||||
Long-term debt
|
$
|
3,910
|
$
|
3,227
|
$
|
3,272
|
$
|
3,382
|
$
|
2,364
|
||||
Total Corning Incorporated shareholders’ equity
|
$
|
18,788
|
$
|
21,579
|
$
|
21,162
|
$
|
21,486
|
$
|
21,078
|
||||
Selected data
|
||||||||||||||
Capital expenditures
|
$
|
1,250
|
$
|
1,076
|
$
|
1,019
|
$
|
1,801
|
$
|
2,432
|
||||
Depreciation and amortization
|
$
|
1,184
|
$
|
1,200
|
$
|
1,002
|
$
|
997
|
$
|
957
|
||||
Number of employees
|
35,700
|
34,600
|
30,400
|
28,700
|
28,800
|
·
|
Overview
|
·
|
Results of Operations
|
·
|
Core Performance Measures
|
·
|
Reportable Segments
|
·
|
Liquidity and Capital Resources
|
·
|
Environment
|
·
|
Critical Accounting Estimates
|
·
|
New Accounting Standards
|
·
|
Forward-Looking Statements
|
·
|
The decrease in the unrealized gains from our foreign currency hedges related to translated earnings in the amount of $1,054 million;
|
·
|
A decrease in net income of $301 million in the Display Technologies segment, driven by price declines in the low-teens in percentage terms more than offsetting a mid-single digit percentage increase in volume, continued softening in the television and IT retail markets and the impact of the change in the fair value of the contingent consideration resulting from the acquisition of Corning Precision Materials in the amount of $184 million;
|
·
|
The increase of $81 million in our defined benefit pension plans mark-to-market loss, driven by lower returns on our U.S. pension assets; and
|
·
|
The absence of a gain of $38 million recorded in 2014 related to the settlement of an intellectual property dispute.
|
·
|
The positive change in the amounts recorded related to tax law changes and valuation allowance adjustments of $204 million;
|
·
|
An increase of $43 million in the Optical Communications segment, due to higher sales volume for both carrier and enterprise network products, the favorable impact of several acquisitions completed this year and manufacturing efficiencies gained through cost reductions; and
|
·
|
An increase in equity earnings of $33 million, driven by higher earnings at Dow Corning.
|
2015
|
2014
|
2013
|
% change
|
|||||||||
15 vs. 14
|
14 vs. 13
|
|||||||||||
Net sales
|
$
|
9,111
|
$
|
9,715
|
$
|
7,819
|
(6)
|
24
|
||||
Gross margin
|
$
|
3,653
|
$
|
4,052
|
$
|
3,324
|
(10)
|
22
|
||||
(gross margin %)
|
40%
|
42%
|
43%
|
|||||||||
Selling, general and administrative expenses
|
$
|
1,523
|
$
|
1,211
|
$
|
1,126
|
26
|
8
|
||||
(as a % of net sales)
|
17%
|
12%
|
14%
|
|||||||||
Research, development and engineering expenses
|
$
|
769
|
$
|
815
|
$
|
710
|
(6)
|
15
|
||||
(as a % of net sales)
|
8%
|
8%
|
9%
|
|||||||||
Restructuring, impairment and other charges
|
$
|
71
|
$
|
67
|
*
|
6
|
||||||
(as a % of net sales)
|
1%
|
1%
|
||||||||||
Equity in earnings of affiliated companies
|
$
|
299
|
$
|
266
|
$
|
547
|
12
|
(51)
|
||||
(as a % of net sales)
|
3%
|
3%
|
7%
|
|||||||||
Transaction-related gain, net
|
$
|
74
|
*
|
*
|
||||||||
(as a % of net sales)
|
1%
|
|||||||||||
Foreign currency hedge gain, net
|
$
|
85
|
$
|
1,411
|
$
|
622
|
(94)
|
127
|
||||
(as a % of net sales)
|
1%
|
15%
|
8%
|
|||||||||
Income before income taxes
|
$
|
1,486
|
$
|
3,568
|
$
|
2,473
|
(58)
|
44
|
||||
(as a % of net sales)
|
16%
|
37%
|
32%
|
|||||||||
Provision for income taxes
|
$
|
(147)
|
$
|
(1,096)
|
$
|
(512)
|
(87)
|
114
|
||||
(as a % of net sales)
|
(2)%
|
(11)%
|
(7)%
|
|||||||||
Net income attributable to Corning Incorporated
|
$
|
1,339
|
$
|
2,472
|
$
|
1,961
|
(46)
|
26
|
||||
(as a % of net sales)
|
15%
|
25%
|
25%
|
*
|
Percent change not meaningful.
|
Year ended December 31,
|
%
Change
|
%
Change
|
||||||||||
2015
|
2014
|
2013
|
15 vs. 14
|
14 vs. 13
|
||||||||
Display Technologies
|
$
|
3,086
|
$
|
3,851
|
$
|
2,545
|
(20)%
|
51%
|
||||
Optical Communications
|
2,980
|
2,652
|
2,326
|
12%
|
14%
|
|||||||
Environmental Technologies
|
1,053
|
1,092
|
919
|
(4)%
|
19%
|
|||||||
Specialty Materials
|
1,107
|
1,205
|
1,170
|
(8)%
|
3%
|
|||||||
Life Sciences
|
821
|
862
|
851
|
(5)%
|
1%
|
|||||||
All Other
|
64
|
53
|
8
|
21%
|
563%
|
|||||||
Total net sales
|
$
|
9,111
|
$
|
9,715
|
$
|
7,819
|
(6)%
|
24%
|
·
|
A decrease of $765 million in the Display Technologies segment, driven by the depreciation of the Japanese yen versus the U.S. dollar, which adversely impacted net sales in the amount of $446 million, and price declines in the low-teens on a percentage basis. Although volume increased in the mid-single digits in percentage terms, growth was muted somewhat by weakness in demand for televisions, computer monitors and mobile computing products;
|
·
|
A decrease in the Environmental Technologies segment of $39 million, driven by the translation impact from movements in foreign currency exchange rates versus the U.S. dollar, primarily the euro, of $57 million and lower sales of light duty diesel products in Europe, partially offset by higher volume for heavy-duty diesel and light-duty substrate products;
|
·
|
A decrease of $98 million in the Specialty Materials segment, driven primarily by a decline in advanced optics sales; and
|
·
|
A decrease of $41 million in the Life Sciences segment due to the impact of unfavorable movements in foreign exchange rates of $43 million.
|
·
|
Display Technologies increased by $1.3 billion, due to the consolidation of Corning Precision Materials, which increased sales by $1.8 billion, and an increase in volume that was slightly more than 10% in percentage terms, partially offset by price declines in the mid-teens on a percentage basis and the negative impact of the Japanese yen versus the U.S. dollar exchange rate in the amount of $373 million;
|
·
|
Optical Communications increased by $326 million, driven by an increase in sales of carrier network products in the amount of $254 million, largely due to growth in North America and Europe, the impact of a full year of sales from a small acquisition and the consolidation of an investment due to a change in control that occurred at the end of the second quarter of 2013, which added $53 million, and an increase of $72 million in enterprise network products. These increases were offset slightly by a $52 million decrease in optical fiber sales in China;
|
·
|
An increase of $173 million in the Environmental Technologies segment, due mainly to an increase in demand for our heavy-duty diesel products, driven by new governmental regulations in Europe and China, and increased demand for Class 8 vehicles in North America. Automotive substrate sales were also strong, increasing 9%, due to increased demand in Europe and China;
|
·
|
Specialty Materials improved by $35 million, driven by an increase in sales of advanced optics products. Corning Gorilla Glass sales remained consistent with the prior year, with volume increases offset by an unfavorable shift in product mix and price declines; and
|
·
|
Life Sciences increased by $11 million, driven by growth in North America and China, up $12 million and $5 million, respectively.
|
Years ended December 31,
|
||||||||
2015
|
2014
|
2013
|
||||||
Samsung Corning Precision Materials
|
$
|
320
|
||||||
Dow Corning
|
$
|
281
|
$
|
252
|
196
|
|||
All other
|
18
|
14
|
31
|
|||||
Total equity earnings
|
$
|
299
|
$
|
266
|
$
|
547
|
Year ended December 31,
|
||||||||
2015
|
2014
|
2013
|
||||||
Silicones
|
$
|
160
|
$
|
653
|
$
|
166
|
||
Polysilicon (Hemlock Semiconductor Group)
|
121
|
(401)
|
30
|
|||||
Total Dow Corning
|
$
|
281
|
$
|
252
|
$
|
196
|
·
|
A decrease in equity earnings from the silicones business of $493 million, driven by the following items:
|
o
|
The absence of the gain resulting from the reduction of the Implant Liability in the amount of $393 million;
|
o
|
The absence of $46 million of favorable tax adjustments recorded in 2014;
|
o
|
The negative impact of the change in the mark-to-market of a derivative instrument in the amount of $56 million ($43 million loss in 2015 compared to $13 million gain in 2014); and
|
o
|
Lower volume and unfavorable movements in foreign exchange rates.
|
·
|
A significant increase in equity earnings from the polysilicon business in the amount of $522 million, driven by the absence of the $465 million charge for the abandonment of a polycrystalline silicon plant expansion recorded in 2014 and an increase in Corning’s share of settlements of long-term sales agreements in the amount of $40 million ($49 million in the first quarter of 2015 compared to $9 million in the first quarter of 2014), partially offset by lower volume.
|
·
|
An increase in equity earnings of $487 million in the silicones segment, driven by the gain resulting from the reduction of the Implant Liability in the amount of $393 million, favorable tax adjustments in the amount of $46 million and a decrease in tax expense, offset somewhat by a $5 million decrease in the amount of gains recorded on the mark-to-market of a derivative instrument; and
|
·
|
A decrease in equity earnings of $431 million in the polysilicon segment, driven by Corning’s share of Dow Corning’s charge for the abandonment of a polycrystalline silicon plant expansion in the amount of $465 million, offset slightly by higher volume, the absence of $11 million in restructuring charges incurred in the first half of 2013, a gain in the amount of $6 million related to energy tax credits and the settlement of a long-term sales agreement in the first quarter of 2014 in the amount of $9 million.
|
Year ended
December 31, 2015
|
Year ended
December 31, 2014
|
Change
2015 vs. 2014
|
|||||||||||||||
(in millions)
|
Income
before
income
taxes
|
Net
income
|
Income
before
income
taxes
|
Net
income
|
Income
before
income
taxes
|
Net
income
|
|||||||||||
Hedges related to translated earnings:
|
|||||||||||||||||
Realized gains, net
|
$
|
653
|
$
|
410
|
$
|
274
|
$
|
224
|
$
|
379
|
$
|
186
|
|||||
Unrealized (losses) gains
|
(573)
|
(362)
|
1,095
|
692
|
(1,668)
|
(1,054)
|
|||||||||||
Total translated earnings contract gain
|
80
|
48
|
1,369
|
916
|
(1,289)
|
(868)
|
|||||||||||
Foreign currency hedges, other
|
5
|
3
|
42
|
27
|
(37)
|
(24)
|
|||||||||||
Foreign Currency Hedge Gain, Net
|
$
|
85
|
$
|
51
|
$
|
1,411
|
$
|
943
|
$
|
(1,326)
|
$
|
(892)
|
Year ended
December 31, 2014
|
Year ended
December 31, 2013
|
Change
2014 vs. 2013
|
|||||||||||||||
(in millions)
|
Income
before
income
taxes
|
Net
income
|
Income
before
income
taxes
|
Net
income
|
Income
before
income
taxes
|
Net
income
|
|||||||||||
Hedges related to translated earnings:
|
|||||||||||||||||
Realized gains, net
|
$
|
274
|
$
|
224
|
$
|
67
|
$
|
55
|
$
|
207
|
$
|
169
|
|||||
Unrealized gains
|
1,095
|
692
|
368
|
232
|
727
|
460
|
|||||||||||
Total translated earnings contract gain
|
1,369
|
916
|
435
|
287
|
934
|
629
|
|||||||||||
Foreign currency hedges, other
|
42
|
27
|
187
|
118
|
(145)
|
(91)
|
|||||||||||
Foreign Currency Hedge Gain, Net
|
$
|
1,411
|
$
|
943
|
$
|
622
|
$
|
405
|
$
|
789
|
$
|
538
|
Years ended December 31,
|
||||||||
2015
|
2014
|
2013
|
||||||
Provision for income taxes
|
$
|
147
|
$
|
1,096
|
$
|
512
|
||
Effective tax rate
|
9.9%
|
30.7%
|
20.7%
|
·
|
Rate differences on income (loss) of consolidated foreign companies, including the benefit of excess foreign tax credits resulting from the inclusion of high-taxed foreign earnings in U.S. income;
|
·
|
The impact of equity in earnings of nonconsolidated affiliates reported in the financials, net of tax;
|
·
|
$63 million tax expense for unrecognized tax benefit primarily for positions taken related to net transfer pricing adjustments (offset with benefit for competent authority relief); and
|
·
|
$100 million tax benefit primarily related to change in judgment on the realizability of Germany and Japan deferred tax assets which is partially offset with tax expense from U.S. state and China deferred tax allowances increases.
|
·
|
Rate differences on income (loss) of consolidated foreign companies, including the benefit of excess foreign tax credits resulting from the inclusion of high-taxed foreign earnings in U.S. income; and
|
·
|
The impact of equity in earnings of nonconsolidated affiliates reported in the financials, net of tax.
|
Years ended December 31,
|
||||||||
2015
|
2014
|
2013
|
||||||
Net income attributable to Corning Incorporated
|
$
|
1,339
|
$
|
2,472
|
$
|
1,961
|
||
Net income attributable to Corning Incorporated used in basic earnings per common share calculation (1)
|
$
|
1,241
|
$
|
2,378
|
$
|
1,961
|
||
Net income attributable to Corning Incorporated used in diluted earnings per common share calculation (1)
|
$
|
1,339
|
$
|
2,472
|
$
|
1,961
|
||
Basic earnings per common share
|
$
|
1.02
|
$
|
1.82
|
$
|
1.35
|
||
Diluted earnings per common share
|
$
|
1.00
|
$
|
1.73
|
$
|
1.34
|
||
Shares used in computing per share amounts
|
||||||||
Basic earnings per common share
|
1,219
|
1,305
|
1,452
|
|||||
Diluted earnings per common share
|
1,343
|
1,427
|
1,462
|
(1)
|
Refer to Note 18 (Earnings per Common Share) to the Consolidated Financial Statements for additional information.
|
Years ended December 31,
|
||||||||
(In millions)
|
2015
|
2014
|
2013
|
|||||
Net income attributable to Corning Incorporated
|
$
|
1,339
|
$
|
2,472
|
$
|
1,961
|
||
Foreign currency translation adjustments and other
|
(590)
|
(1,073)
|
(682)
|
|||||
Net unrealized gains (losses) on investments
|
1
|
(1)
|
2
|
|||||
Unamortized gains (losses) and prior service (costs) credits for postretirement benefit plans
|
121
|
(281)
|
392
|
|||||
Net unrealized (losses) gains on designated hedges
|
(36)
|
4
|
(24)
|
|||||
Other comprehensive loss, net of tax (Note 17)
|
(504)
|
(1,351)
|
(312)
|
|||||
Comprehensive income attributable to Corning Incorporated
|
$
|
835
|
$
|
1,121
|
$
|
1,649
|
2015
|
2014
|
2013
|
% change
|
|||||||||
15 vs. 14
|
14 vs. 13
|
|||||||||||
Core net sales
|
$
|
9,800
|
$
|
9,955
|
$
|
7,780
|
(2)%
|
28%
|
||||
Core equity in earnings of affiliated companies
|
$
|
269
|
$
|
310
|
$
|
531
|
(13)%
|
(42)%
|
||||
Core earnings attributable to Corning Incorporated
|
$
|
1,882
|
$
|
2,023
|
$
|
1,656
|
(7)%
|
22%
|
Year ended December 31,
|
%
Change
|
%
Change
|
||||||||||
2015
|
2014
|
2013
|
15 vs. 14
|
14 vs. 13
|
||||||||
Display Technologies
|
$
|
3,774
|
$
|
4,092
|
$
|
2,507
|
(8)%
|
63%
|
||||
Optical Communications
|
2,980
|
2,652
|
2,326
|
12%
|
14%
|
|||||||
Environmental Technologies
|
1,053
|
1,092
|
919
|
(4)%
|
19%
|
|||||||
Specialty Materials
|
1,107
|
1,205
|
1,170
|
(8)%
|
3%
|
|||||||
Life Sciences
|
821
|
862
|
851
|
(5)%
|
1%
|
|||||||
All Other
|
65
|
52
|
7
|
25%
|
643%
|
|||||||
Total core net sales
|
$
|
9,800
|
$
|
9,955
|
$
|
7,780
|
(2)%
|
28%
|
·
|
A decrease of $318 million in the Display Technologies segment, driven by price declines in the low-teens on a percentage basis. Although volume increased in the mid-single digits in percentage terms, growth was muted somewhat by weakness in demand for televisions, computer monitors and mobile computing products;
|
·
|
A decrease in the Environmental Technologies segment of $39 million, driven by the translation impact from movements in foreign currency exchange rates versus the U.S. dollar, primarily the euro, of $57 million and lower sales of light duty diesel products in Europe, partially offset by higher volume for heavy duty diesel and light duty substrate products;
|
·
|
A decrease of $98 million in the Specialty Materials segment, driven primarily by a decline in advanced optics sales; and
|
·
|
A decrease of $41 million in the Life Sciences segment due to the impact of unfavorable movements in foreign exchange rates of $43 million.
|
·
|
Display Technologies increased by $1,585 million, due to the consolidation of Corning Precision Materials and an increase in volume that was slightly more than 10% in percentage terms, offset somewhat by price declines in the mid-teens;
|
·
|
Optical Communications increased by $326 million, driven by an increase in sales of carrier network products in the amount of $254 million, largely due to growth in North America and Europe, the impact of a full year of sales from a small acquisition and the consolidation of an investment due to a change in control that occurred at the end of the second quarter of 2013, which added $53 million, and an increase of $72 million in enterprise network products. These increases were offset slightly by a $52 million decrease in optical fiber sales in China;
|
·
|
An increase of $173 million in the Environmental Technologies segment, due mainly to an increase in demand for our heavy duty diesel products, driven by new governmental regulations in Europe and China, and increased demand for Class 8 vehicles in North America. Automotive substrate sales were also strong, increasing 9%, on increased demand in Europe and China;
|
·
|
Specialty Materials improved by $35 million, driven by an increase in sales of advanced optics products. Corning Gorilla Glass sales remained consistent with the prior year, with volume increases offset by an unfavorable shift in product mix and price declines; and
|
·
|
Life Sciences increased by $11 million, driven by growth in North America and China, up $12 million and $5 million, respectively.
|
2015
|
2014
|
2013
|
% change
|
|||||||||
15 vs. 14
|
14 vs. 13
|
|||||||||||
Samsung Corning Precision Materials
|
$
|
356
|
||||||||||
Dow Corning *
|
$
|
245
|
$
|
287
|
145
|
(15)%
|
98%
|
|||||
All other
|
24
|
23
|
30
|
4%
|
(23)%
|
|||||||
Total core equity earnings
|
$
|
269
|
$
|
310
|
$
|
531
|
(13)%
|
(42)%
|
*
|
In 2013, we excluded the operating results of Dow Corning’s consolidated subsidiary Hemlock Semiconductor, a producer of polycrystalline silicon, to remove the impact of the severe unpredictability and instability in the polysilicon market.
|
Year ended December 31,
|
||||||||
2015
|
2014
|
2013
|
||||||
Silicones
|
$
|
176
|
$
|
197
|
$
|
145
|
||
Polysilicon (Hemlock Semiconductor Group)
|
69
|
90
|
31
|
|||||
Total Dow Corning
|
$
|
245
|
$
|
287
|
$
|
176
|
2015
|
2014
|
2013
|
||||||
As reported
|
$
|
281
|
$
|
252
|
$
|
196
|
||
Hemlock Semiconductor operating results (8)
|
(31)
|
|||||||
Hemlock Semiconductor non-operating results (8)
|
(1)
|
|||||||
Equity in earnings of affiliated companies (8)
|
(36)
|
35
|
(19)
|
|||||
Core Performance measures
|
$
|
245
|
$
|
287
|
$
|
145
|
·
|
The impact of the consolidation of Corning Precision Materials and the resulting cost reductions and efficiencies gained through synergies;
|
·
|
An increase in core equity earnings from Dow Corning, driven by a decrease in tax expense, improved manufacturing efficiency and an increase in volume;
|
·
|
An increase of $58 million in the Environmental Technologies segment, driven by an increase in demand for our diesel products and improved manufacturing efficiency; and
|
·
|
An increase of $34 million in the Optical Communications segment, driven by higher sales of carrier network and enterprise network products.
|
2015
|
2014
|
2013
|
||||||
Core earnings attributable to Corning Incorporated
|
$
|
1,882
|
$
|
2,023
|
$
|
1,656
|
||
Less: Series A convertible preferred stock dividend
|
98
|
94
|
||||||
Core earnings available to common stockholders - basic
|
1,784
|
1,929
|
1,656
|
|||||
Add: Series A convertible preferred stock dividend
|
98
|
94
|
||||||
Core earnings available to common stockholders - diluted
|
$
|
1,882
|
$
|
2,023
|
$
|
1,656
|
||
Weighted-average common shares outstanding - basic
|
1,219
|
1,305
|
1,452
|
|||||
Effect of dilutive securities:
|
||||||||
Stock options and other dilutive securities
|
9
|
12
|
10
|
|||||
Series A convertible preferred stock
|
115
|
110
|
||||||
Weighted-average common shares outstanding - diluted
|
1,343
|
1,427
|
1,462
|
|||||
Core basic earnings per common share
|
$
|
1.46
|
$
|
1.48
|
$
|
1.14
|
||
Core diluted earnings per common share
|
$
|
1.40
|
$
|
1.42
|
$
|
1.13
|
Year ended December 31, 2015
|
||||||||||||||||
Net
sales
|
Equity
earnings
|
Income
before
income
taxes
|
Net
income
|
Effective
tax
rate
|
Earnings
per
share
|
|||||||||||
As reported
|
$
|
9,111
|
$
|
299
|
$
|
1,486
|
$
|
1,339
|
9.9%
|
$
|
1.00
|
|||||
Constant-yen (1)
|
687
|
6
|
567
|
423
|
0.31
|
|||||||||||
Constant-won (1)
|
2
|
(2)
|
(25)
|
(19)
|
(0.01)
|
|||||||||||
Foreign currency hedges related to translated earnings (2)
|
(80)
|
(48)
|
(0.04)
|
|||||||||||||
Acquisition-related costs (3)
|
55
|
36
|
0.03
|
|||||||||||||
Discrete tax items and other tax-related adjustments (4)
|
36
|
0.03
|
||||||||||||||
Litigation, regulatory and other legal matters (5)
|
5
|
3
|
||||||||||||||
Restructuring, impairment and other charges (6)
|
46
|
42
|
0.03
|
|||||||||||||
Liquidation of subsidiary (7)
|
||||||||||||||||
Equity in earnings of affiliated companies (8)
|
(34)
|
(34)
|
(33)
|
(0.02)
|
||||||||||||
Impacts from the acquisition of Samsung Corning Precision Materials (9)
|
(20)
|
(18)
|
(0.01)
|
|||||||||||||
Post-combination expenses (10)
|
25
|
16
|
0.01
|
|||||||||||||
Pension mark-to-market adjustment (11)
|
165
|
105
|
0.08
|
|||||||||||||
Core performance measures
|
$
|
9,800
|
$
|
269
|
$
|
2,190
|
$
|
1,882
|
14.1%
|
$
|
1.40
|
Year ended December 31, 2014
|
||||||||||||||||
Net
sales
|
Equity
earnings
|
Income
before
income
taxes
|
Net
income
|
Effective
tax
rate
|
Earnings
per
share
|
|||||||||||
As reported
|
$
|
9,715
|
$
|
266
|
$
|
3,568
|
$
|
2,472
|
30.7%
|
$
|
1.73
|
|||||
Constant-yen (1)*
|
240
|
1
|
197
|
144
|
0.10
|
|||||||||||
Constant-won (1)
|
37
|
26
|
0.02
|
|||||||||||||
Foreign currency hedges related to translated earnings (2)
|
(1,369)
|
(916)
|
(0.64)
|
|||||||||||||
Acquisition-related costs (3)
|
74
|
57
|
0.04
|
|||||||||||||
Discrete tax items and other tax-related adjustments (4)
|
240
|
0.17
|
||||||||||||||
Litigation, regulatory and other legal matters (5)
|
(1)
|
(2)
|
||||||||||||||
Restructuring, impairment and other charges (6)
|
86
|
66
|
0.05
|
|||||||||||||
Liquidation of subsidiary (7)
|
(3)
|
|||||||||||||||
Equity in earnings of affiliated companies (8)
|
43
|
43
|
38
|
0.03
|
||||||||||||
Gain on previously held equity investment (9)
|
(394)
|
(292)
|
(0.20)
|
|||||||||||||
Settlement of pre-existing contract (9)
|
320
|
320
|
0.22
|
|||||||||||||
Contingent consideration fair value adjustment (9)
|
(249)
|
(194)
|
(0.14)
|
|||||||||||||
Post-combination expenses (9)
|
72
|
55
|
0.04
|
|||||||||||||
Impacts from the acquisition of Samsung Corning Precision Materials (9)
|
(9)
|
(12)
|
(0.01)
|
|||||||||||||
Pension mark-to-market adjustment (11)
|
29
|
24
|
0.02
|
|||||||||||||
Core performance measures
|
$
|
9,955
|
$
|
310
|
$
|
2,404
|
$
|
2,023
|
15.8%
|
$
|
1.42
|
*
|
In the first quarter of 2015, we changed the yen-to-dollar management rate from ¥93 to ¥99 to closely align with the yen-denominated hedges entered into for the years 2015 through 2017. Prior periods presented have been recast based on the new rate.
|
Year ended December 31, 2013
|
||||||||||||||||
(in millions)
|
Net
sales
|
Equity
earnings
|
Income
before
income
taxes
|
Net
income
|
Effective
tax
rate
|
Per
share
|
||||||||||
As reported
|
$
|
7,819
|
$
|
547
|
$
|
2,473
|
$
|
1,961
|
20.7%
|
$
|
1.34
|
|||||
Constant-yen (1)*
|
(39)
|
(28)
|
(53)
|
(45)
|
(0.03)
|
|||||||||||
Foreign currency hedges related to translated earnings (2)
|
(435)
|
(287)
|
(0.20)
|
|||||||||||||
Other yen-related transactions (2)
|
(99)
|
(69)
|
(0.05)
|
|||||||||||||
Acquisition-related costs (3)
|
54
|
40
|
0.03
|
|||||||||||||
Discrete tax items and other tax-related adjustments (4)
|
9
|
0.01
|
||||||||||||||
Litigation, regulatory and other legal matters (5)
|
19
|
13
|
0.01
|
|||||||||||||
Restructuring, impairment and other charges (6)
|
67
|
46
|
0.03
|
|||||||||||||
Equity in earnings of affiliated companies (8)
|
42
|
42
|
44
|
0.02
|
||||||||||||
Hemlock Semiconductor operating results (8)
|
(31)
|
(31)
|
(30)
|
(0.02)
|
||||||||||||
Hemlock Semiconductor non-operating results (8)
|
1
|
1
|
1
|
|||||||||||||
Pension mark-to-market adjustment (11)
|
(30)
|
(17)
|
(0.01)
|
|||||||||||||
Gain on change in control of equity investment (12)
|
(17)
|
(12)
|
(0.01)
|
|||||||||||||
Other
|
4
|
2
|
||||||||||||||
Core performance measures
|
$
|
7,780
|
$
|
531
|
$
|
1,995
|
$
|
1,656
|
17.0%
|
$
|
1.13
|
*
|
In the first quarter of 2015, we changed the yen-to-dollar management rate from ¥93 to ¥99 to closely align with the yen-denominated hedges entered into for the years 2015 through 2017. Prior periods presented have been recast based on the new rate.
|
(1)
|
Constant-currency adjustments:
|
Constant-yen: Because a significant portion of Display Technologies segment revenues and manufacturing costs are denominated in Japanese yen, management believes it is important to understand the impact on core earnings of translating yen into dollars. Presenting results on a constant-yen basis mitigates the translation impact of the Japanese yen, and allows management to evaluate performance period over period, analyze underlying trends in our businesses, and establish operational goals and forecasts. As of January 1, 2015, we used an internally derived management rate of ¥99, which is closely aligned to our current yen portfolio of foreign currency hedges, and have recast all periods presented based on this rate in order to effectively remove the impact of changes in the Japanese yen.
|
|
Constant-won: Following the acquisition of Samsung Corning Precision Materials and because a significant portion of Corning Precision Materials’ costs are denominated in South Korean won, management believes it is important to understand the impact on core earnings from translating won into dollars. Presenting results on a constant-won basis mitigates the translation impact of the South Korean won, and allows management to evaluate performance period over period, analyze underlying trends in our businesses, and establish operational goals and forecasts without the variability caused by the fluctuations caused by changes in the rate of this currency. We use an internally derived management rate of 1,100, which is consistent with historical prior period averages of the won.
|
|
(2)
|
Foreign currency hedges related to translated earnings: We have excluded the impact of the gains and losses of our foreign currency hedges related to translated earnings for each period presented.
|
(3)
|
Acquisition-related costs: These expenses include intangible amortization, inventory valuation adjustments and external acquisition-related deal costs.
|
(4)
|
Discrete tax items and other tax-related adjustments: This represents the removal of discrete adjustments attributable to changes in tax law and changes in judgment about the realizability of certain deferred tax assets, as well as other non-operational tax-related adjustments, including the tax effect of transfer pricing out-of-period adjustments in 2014 and 2015.
|
(5)
|
Litigation, regulatory and other legal matters: Includes amounts related to the Pittsburgh Corning Corporation (PCC) asbestos litigation, adjustments to our estimated liability for environmental-related items and other legal matters.
|
(6)
|
Restructuring, impairment and other charges: This amount includes restructuring, impairment and other charges, including goodwill impairment charges and other expenses and disposal costs not classified as restructuring expense.
|
(7)
|
Liquidation of subsidiary: The partial impact of non-restructuring related items due to the decision to liquidate a consolidated subsidiary that is not significant.
|
(8)
|
Equity in earnings of affiliated companies: These adjustments relate to items which do not reflect expected on-going operating results of our affiliated companies, such as restructuring, impairment and other charges and settlements under “take-or-pay” contracts. In 2013, we excluded the operating results of Dow Corning’s consolidated subsidiary Hemlock Semiconductor, a producer of polycrystalline silicon, to remove the impact of the severe unpredictability and instability in the polysilicon market.
|
(9)
|
Impacts from the acquisition of Samsung Corning Precision Materials: Pre-acquisition gains and losses on previously held equity investment and other gains and losses related to the acquisition, including post-combination expenses, fair value adjustments to the indemnity asset related to contingent consideration and the impact of the withholding tax on a dividend from Samsung Corning Precision Materials.
|
(10)
|
Post-combination expenses: Post-combination expenses incurred as a result of an acquisition in the first quarter of 2015.
|
(11)
|
Pension mark-to-market adjustment: Mark-to-market pension gains and losses, which arise from changes in actuarial assumptions and the difference between actual and expected returns on plan assets and discount rates.
|
(12)
|
Gain on change in control of equity investment: Gain as a result of certain changes to the shareholder agreement of an equity company, resulting in Corning having a controlling interest that requires consolidation of this investment.
|
·
|
Display Technologies – manufactures glass substrates for flat panel liquid crystal displays.
|
·
|
Optical Communications – manufactures carrier network and enterprise network components for the telecommunications industry.
|
·
|
Environmental Technologies – manufactures ceramic substrates and filters for automotive and diesel applications.
|
·
|
Specialty Materials – manufactures products that provide more than 150 material formulations for glass, glass ceramics and fluoride crystals to meet demand for unique customer needs.
|
·
|
Life Sciences – manufactures glass and plastic labware, equipment, media and reagents to provide workflow solutions for scientific applications.
|
Year ended
December 31, 2015
|
Year ended
December 31, 2014
|
Year ended
December 31, 2013
|
|||||||||||||||
(in millions)
|
Sales
|
Net
income
|
Sales
|
Net
income
|
Sales
|
Net
income
|
|||||||||||
As reported
|
$
|
3,086
|
$
|
1,095
|
$
|
3,851
|
$
|
1,396
|
$
|
2,545
|
$
|
1,293
|
|||||
Constant-yen (1)*
|
686
|
419
|
240
|
142
|
(38)
|
(47)
|
|||||||||||
Constant-won (1)
|
2
|
(17)
|
27
|
||||||||||||||
Foreign currency hedges related to translated earnings (2)
|
(416)
|
(290)
|
(90)
|
||||||||||||||
Other yen-related transactions (2)
|
(67)
|
||||||||||||||||
Acquisition-related costs (3)
|
37
|
8
|
|||||||||||||||
Discrete tax items and other tax-related adjustments (4)
|
4
|
10
|
|||||||||||||||
Restructuring, impairment and other charges (6)
|
40
|
6
|
|||||||||||||||
Equity in earnings of affiliated companies (8)
|
6
|
28
|
|||||||||||||||
Impacts from the acquisition of Samsung Corning Precision Materials (9)
|
(10)
|
1
|
(121)
|
||||||||||||||
Pension mark-to-market adjustment (11)
|
4
|
2
|
(8)
|
||||||||||||||
Core performance measures
|
$
|
3,774
|
$
|
1,075
|
$
|
4,092
|
$
|
1,243
|
$
|
2,507
|
$
|
1,133
|
*
|
In the first quarter of 2015, we changed the yen-to-dollar management rate from ¥93 to ¥99 to closely align with the yen-denominated hedges entered into for the years 2015 through 2017. Prior periods presented have been recast based on the new rate.
|
·
|
The impact of price declines in the low-teens in percentage terms that more than offset the mid-single digit percent increase in volume;
|
·
|
A decrease of $184 million in the gain on the fair value adjustment of the contingent consideration resulting from the acquisition of Corning Precision Materials; and
|
·
|
The absence of a gain on the settlement of an intellectual property dispute recorded in 2014 in the amount of $38 million.
|
·
|
Improvements in manufacturing efficiency of $79 million;
|
·
|
A decline in transaction and acquisition-related costs in the amounts of $73 million and $37 million, respectively;
|
·
|
A decrease of $40 million in restructuring, impairment and other charges; and
|
·
|
A decline in operating expenses.
|
·
|
The impact of the acquisition of Corning Precision Materials and the resulting cost reductions gained through synergies;
|
·
|
The fair value adjustment of the contingent consideration resulting from the acquisition of Corning Precision Materials in the amount of $194 million; and
|
·
|
Improvements in manufacturing efficiency of $46 million.
|
·
|
The impact of price declines in the mid-teens in percentage terms that more than offset the increase in volume;
|
·
|
The absence of the $67 million gain from our yen-denominated cash flow hedging program;
|
·
|
The increase in transaction and acquisition-related costs related to the acquisition of Corning Precision Materials in the amounts of $73 million and $29 million, respectively; and
|
·
|
An increase of $34 million in restructuring, impairment and other charges.
|
Year ended
December 31, 2015
|
Year ended
December 31, 2014
|
Year ended
December 31, 2013
|
|||||||||||||||
(in millions)
|
Sales
|
Net
income
|
Sales
|
Net
income
|
Sales
|
Net
income
|
|||||||||||
As reported
|
$
|
2,980
|
$
|
237
|
$
|
2,652
|
$
|
194
|
$
|
2,326
|
$
|
189
|
|||||
Acquisition-related costs (3)
|
16
|
(2)
|
9
|
||||||||||||||
Litigation, regulatory and other legal matters (5)
|
13
|
||||||||||||||||
Restructuring, impairment and other charges (6)
|
(1)
|
17
|
8
|
||||||||||||||
Liquidation of subsidiary (7)
|
(2)
|
||||||||||||||||
Post-combination expenses (10)
|
16
|
||||||||||||||||
Pension mark-to-market adjustment (11)
|
13
|
(9)
|
|||||||||||||||
Gain on change in control of equity investment (12)
|
(11)
|
||||||||||||||||
Core performance measures
|
$
|
2,980
|
$
|
281
|
$
|
2,652
|
$
|
220
|
$
|
2,326
|
$
|
186
|
·
|
Higher sales of cable and hardware and equipment products primarily used in fiber-to-the-home solutions in North America and Europe, up $113 million and $46 million, respectively;
|
·
|
The impact of a full year of sales from a small acquisition and the consolidation of an investment due to a change in control which occurred at the end of the second quarter of 2013, which added approximately $53 million; and
|
·
|
An increase of $11 million in sales of optical fiber, driven by higher sales in North America and Europe, partially offset by a decrease in China.
|
Year ended
December 31, 2015
|
Year ended
December 31, 2014
|
Year ended
December 31, 2013
|
|||||||||||||||
(in millions)
|
Sales
|
Net
income
|
Sales
|
Net
income
|
Sales
|
Net
income
|
|||||||||||
As reported
|
$
|
1,053
|
$
|
161
|
$
|
1,092
|
$
|
178
|
$
|
919
|
$
|
127
|
|||||
Restructuring, impairment and other charges (6)
|
1
|
||||||||||||||||
Pension mark-to-market adjustment (11)
|
5
|
(3)
|
|||||||||||||||
Core performance measures
|
$
|
1,053
|
$
|
161
|
$
|
1,092
|
$
|
183
|
$
|
919
|
$
|
125
|
Year ended
December 31, 2015
|
Year ended
December 31, 2014
|
Year ended
December 31, 2013
|
|||||||||||||||
(in millions)
|
Sales
|
Net
income
|
Sales
|
Net
income
|
Sales
|
Net
income
|
|||||||||||
As reported
|
$
|
1,107
|
$
|
167
|
$
|
1,205
|
$
|
138
|
$
|
1,170
|
$
|
181
|
|||||
Constant-yen (1)*
|
(6)
|
(3)
|
2
|
||||||||||||||
Constant-won (1)
|
(2)
|
||||||||||||||||
Foreign currency hedges related to translated earnings (2)
|
5
|
14
|
|||||||||||||||
Acquisition-related costs (3)
|
(1)
|
1
|
|||||||||||||||
Restructuring, impairment and other charges (6)
|
14
|
12
|
12
|
||||||||||||||
Pension mark-to-market adjustment (11)
|
(2)
|
||||||||||||||||
Core performance measures
|
$
|
1,107
|
$
|
178
|
$
|
1,205
|
$
|
160
|
$
|
1,170
|
$
|
194
|
*
|
In the first quarter of 2015, we changed the yen-to-dollar management rate from ¥93 to ¥99 to closely align with the yen-denominated hedges entered into for the years 2015 through 2017. Prior periods presented have been recast based on the new rate.
|
Year ended
December 31, 2015
|
Year ended
December 31, 2014
|
Year ended
December 31, 2013
|
|||||||||||||||
(in millions)
|
Sales
|
Net
income
|
Sales
|
Net
income
|
Sales
|
Net
income
|
|||||||||||
As reported
|
$
|
821
|
$
|
61
|
$
|
862
|
$
|
67
|
$
|
851
|
$
|
68
|
|||||
Acquisition-related costs (3)
|
12
|
14
|
21
|
||||||||||||||
Restructuring, impairment and other charges (6)
|
2
|
3
|
|||||||||||||||
Pension mark-to-market adjustment (11)
|
(3)
|
||||||||||||||||
Core performance measures
|
$
|
821
|
$
|
73
|
$
|
862
|
$
|
83
|
$
|
851
|
$
|
89
|
% change
|
||||||||||||
As Reported
|
2015
|
2014
|
2013
|
15 vs. 14
|
14 vs. 13
|
|||||||
Net sales
|
$
|
64
|
$
|
53
|
$
|
8
|
21
|
563
|
||||
Research, development and engineering expenses
|
$
|
186
|
$
|
177
|
$
|
116
|
5
|
53
|
||||
Equity earnings of affiliated companies
|
$
|
17
|
$
|
18
|
$
|
(24)
|
(6)
|
*
|
||||
Net loss
|
$
|
(202)
|
$
|
(198)
|
$
|
(165)
|
(2)
|
20
|
*
|
Percent change not meaningful
|
·
|
In the second quarter of 2015, we issued $375 million of 1.50% senior unsecured notes that mature on May 8, 2018 and $375 million of 2.90% senior unsecured notes that mature on May 15, 2022. The net proceeds of $745 million will be used for general corporate purposes. We can redeem these notes at any time, subject to certain customary terms and conditions.
|
·
|
In the third quarter of 2014, we amended and restated our existing revolving credit facility. The amended facility provides a $2 billion unsecured multi-currency line of credit and expires on September 30, 2019. At December 31, 2015, there were no outstanding amounts under this credit facility. The facility includes affirmative and negative covenants that Corning must comply with, including a leverage (debt to capital ratio) financial covenant. As of December 31, 2015, we were in compliance with all of the covenants.
|
·
|
In the first quarter of 2013, we amended and restated our then-existing revolving credit facility. The 2013 amended facility provided a $1 billion unsecured multi-currency line of credit that would have expired in March 2018. This facility was amended and restated by the $2 billion facility entered into in the third quarter of 2014.
|
·
|
In the first quarter of 2013, Corning repaid the aggregate principal amount and accrued interest outstanding on the credit facility entered into in the second quarter of 2011 that allowed Corning to borrow up to Chinese renminbi (RMB) 4 billion. The total amount repaid was approximately $500 million. Upon repayment, this facility was terminated.
|
·
|
In the second quarter of 2013, the Company established a commercial paper program on a private placement basis, pursuant to which we may issue short-term, unsecured commercial paper notes up to a maximum aggregate principal amount outstanding at any time of $1 billion. Under this program, the Company may issue the notes from time to time and will use the proceeds for general corporate purposes. The maturities of the notes will vary, but may not exceed 390 days from the date of issue. The interest rates will vary based on market conditions and the ratings assigned to the notes by credit rating agencies at the time of issuance. The Company’s revolving credit facility is available to support obligations under the commercial paper program, if needed.
|
·
|
In the fourth quarter of 2013, we issued $250 million of 3.70% senior unsecured notes that mature on November 15, 2023. The net proceeds of approximately $248 million were used for general corporate purposes.
|
·
|
In the fourth quarter of 2013, we recorded a financing obligation in the approximate amount of $230 million for a new LCD glass substrate facility in China.
|
Years ended December 31,
|
||||||||
2015
|
2014
|
2013
|
||||||
Net cash provided by operating activities
|
$
|
2,809
|
$
|
4,709
|
$
|
2,787
|
||
Net cash used in investing activities
|
$
|
(685)
|
$
|
(962)
|
$
|
(1,004)
|
||
Net cash used in financing activities
|
$
|
(2,603)
|
$
|
(2,586)
|
$
|
(2,063)
|
December 31,
|
|||||
2015
|
2014
|
||||
Working capital
|
$
|
5,455
|
$
|
7,914
|
|
Current ratio
|
2.9:1
|
4.4:1
|
|||
Trade accounts receivable, net of allowances
|
$
|
1,372
|
$
|
1,501
|
|
Days sales outstanding
|
55
|
56
|
|||
Inventories
|
$
|
1,385
|
$
|
1,322
|
|
Inventory turns
|
4.0
|
4.2
|
|||
Days payable outstanding (1)
|
42
|
41
|
|||
Long-term debt
|
$
|
3,910
|
$
|
3,227
|
|
Total debt to total capital
|
19%
|
13%
|
(1)
|
Includes trade payables only.
|
RATING AGENCY
|
Rating
long-term debt
|
Outlook
last update
|
|
Fitch
|
BBB+
|
Stable
|
|
October 29, 2015
|
|||
Standard & Poor’s
|
BBB+
|
Stable
|
|
October 27, 2015
|
|||
Moody’s
|
Baa1
|
Stable
|
|
October 28, 2015
|
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
|
$
|
92
|
$
|
25
|
$
|
6
|
$
|
1
|
$
|
60
|
||||
Stand-by letters of credit (1)
|
47
|
44
|
3
|
|||||||||||
Credit Facility to Equity Company
|
31
|
27
|
4
|
|||||||||||
Loan guarantees
|
14
|
14
|
||||||||||||
Subtotal of commitment expirations per period
|
$
|
184
|
$
|
96
|
$
|
6
|
$
|
1
|
$
|
81
|
||||
Purchase obligations (6)
|
$
|
220
|
$
|
106
|
$
|
77
|
$
|
33
|
$
|
4
|
||||
Capital expenditure obligations (2)
|
298
|
298
|
||||||||||||
Total debt (3)
|
4,122
|
565
|
625
|
550
|
2,382
|
|||||||||
Interest on long-term debt (4)
|
2,385
|
165
|
316
|
280
|
1,624
|
|||||||||
Capital leases and financing obligations (3)
|
355
|
7
|
10
|
7
|
331
|
|||||||||
Imputed interest on capital leases and financing obligations
|
240
|
19
|
37
|
36
|
148
|
|||||||||
Minimum rental commitments
|
573
|
49
|
110
|
77
|
337
|
|||||||||
Uncertain tax positions (5)
|
58
|
|||||||||||||
Subtotal of contractual obligation payments due by period (5)
|
8,251
|
1,209
|
1,175
|
983
|
4,826
|
|||||||||
Total commitments and contingencies (5)
|
$
|
8,435
|
$
|
1,305
|
$
|
1,181
|
$
|
984
|
$
|
4,907
|
(1)
|
At December 31, 2015, $38 million of the $47 million was included in other accrued liabilities on our consolidated balance sheets.
|
(2)
|
Capital expenditure obligations primarily reflect amounts associated with our capital expansion activities.
|
(3)
|
Total debt above is stated at maturity value, and excludes interest rate swap gains and bond discounts.
|
(4)
|
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.
|
(5)
|
At December 31, 2015, $58 million was included on our balance sheet related to uncertain tax positions. Of this amount, we are unable to estimate when any of that amount will become payable.
|
(6)
|
Purchase obligations are enforceable and legally binding obligations which primarily consist of raw material and energy-related take-or-pay contracts.
|
·
|
A significant decrease in the market price of an asset;
|
·
|
A significant change in the extent or manner in which a long-lived asset is being used or in its physical condition;
|
·
|
A significant adverse change in legal factors or in the business climate that could affect the value of the asset, including an adverse action or assessment by a regulator;
|
·
|
An accumulation of costs significantly in excess of the amount originally expected for the acquisition or construction of an asset;
|
·
|
A current-period operating or cash flow loss combined with a history of operating or cash flow losses or a projection or forecast that demonstrates continuing losses associated with the use of an asset; and
|
·
|
A current expectation that, more likely than not, an asset will be sold or otherwise disposed of significantly before the end of its previously estimated useful life.
|
·
|
We assess qualitative factors in each of our reporting units which carry goodwill to determine whether it is necessary to perform the first step of the two-step quantitative goodwill impairment test.
|
·
|
The following events and circumstances are considered when evaluating whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount:
|
o
|
Macroeconomic conditions, such as a deterioration in general economic conditions, fluctuations in foreign exchange rates and/or other developments in equity and credit markets;
|
o
|
Market capital in relation to book value;
|
o
|
Industry and market considerations, such as a deterioration in the environment in which an entity operates, material loss in market share and significant declines in product pricing;
|
o
|
Cost factors, such as an increase in raw materials, labor or other costs;
|
o
|
Overall financial performance, such as negative or declining cash flows or a decline in actual or forecasted revenue;
|
o
|
Other relevant entity-specific events, such as material changes in management or key personnel; and
|
o
|
Events affecting a reporting unit, such as a change in the composition or carrying amount of its net assets including acquisitions and dispositions.
|
December 31,
|
||||||||
(In millions)
|
2015
|
2014
|
2013
|
|||||
Actual return on plan assets – Domestic plans
|
$
|
(111)
|
$
|
287
|
$
|
65
|
||
Expected return on plan assets – Domestic plans
|
166
|
159
|
158
|
|||||
Actual return on plan assets – International plans
|
3
|
68
|
6
|
|||||
Expected return on plan assets – International plans
|
12
|
15
|
11
|
|||||
December 31,
|
||||||||
2015
|
2014
|
2013
|
||||||
Weighted-average actual and expected return on assets:
|
||||||||
Actual return on plan assets – Domestic plans
|
(4.23%)
|
10.82%
|
2.67%
|
|||||
Expected return on plan assets – Domestic plans
|
6.00%
|
6.25%
|
6.00%
|
|||||
Actual return on plan assets – International plans
|
0.59%
|
17.15%
|
2.73%
|
|||||
Expected return on plan assets – International plans
|
2.97%
|
4.12%
|
3.73%
|
Change in assumption
|
Effect on 2016
pre-tax pension
expense
|
Effect on
December 31, 2015
PBO
|
|
25 basis point decrease in each spot rate
|
- 2 million
|
+ 87 million
|
|
25 basis point increase in each spot rate
|
+ 2 million
|
- 83 million
|
|
25 basis point decrease in expected return on assets
|
+ 6 million
|
||
25 basis point increase in expected return on assets
|
- 6 million
|
Change in assumption
|
Effect on 2016
pre-tax OPEB
expense
|
Effect on
December 31, 2015
APBO*
|
|
25 basis point decrease in each spot rate
|
+ 0 million
|
+ 23 million
|
|
25 basis point increase in each spot rate
|
- 0 million
|
- 22 million
|
*
|
Accumulated Postretirement Benefit Obligation (APBO).
|
-
|
global business, financial, economic and political conditions;
|
-
|
tariffs and import duties;
|
-
|
currency fluctuations between the U.S. dollar and other currencies, primarily the Japanese yen, New Taiwan dollar, euro, Chinese renminbi and South Korean won;
|
-
|
product demand and industry capacity;
|
-
|
competitive products and pricing;
|
-
|
availability and costs of critical components and materials;
|
-
|
new product development and commercialization;
|
-
|
order activity and demand from major customers;
|
-
|
fluctuations in capital spending by customers;
|
-
|
possible disruption in commercial activities due to terrorist activity, cyber attack, armed conflict, political or financial instability, natural disasters, or major health concerns;
|
-
|
unanticipated disruption to equipment, facilities, or operations;
|
-
|
facility expansions and new plant start-up costs;
|
-
|
effect of regulatory and legal developments;
|
-
|
ability to pace capital spending to anticipated levels of customer demand;
|
-
|
credit rating and ability to obtain financing and capital on commercially reasonable terms;
|
-
|
adequacy and availability of insurance;
|
-
|
financial risk management;
|
-
|
acquisition and divestiture activities;
|
-
|
rate of technology change;
|
-
|
level of excess or obsolete inventory;
|
-
|
ability to enforce patents and protect intellectual property and trade secrets;
|
-
|
adverse litigation;
|
-
|
product and components performance issues;
|
-
|
retention of key personnel;
|
-
|
stock price fluctuations;
|
-
|
trends for the continued growth of the Company’s businesses;
|
-
|
the ability of research and development projects to produce revenues in future periods;
|
-
|
a downturn in demand or decline in growth rates for LCD glass substrates;
|
-
|
customer ability, most notably in the Display Technologies segment, to maintain profitable operations and obtain financing to fund their ongoing operations and manufacturing expansions and pay their receivables when due;
|
-
|
loss of significant customers;
|
-
|
fluctuations in supply chain inventory levels;
|
-
|
equity company activities, principally at Dow Corning;
|
-
|
changes in tax laws and regulations;
|
-
|
changes in accounting rules and standards;
|
-
|
the potential impact of legislation, government regulations, and other government action and investigations;
|
-
|
temporary idling of capacity or delaying expansion;
|
-
|
the ability to implement productivity, consolidation and cost reduction efforts, and to realize anticipated benefits;
|
-
|
restructuring actions and charges; and
|
-
|
other risks detailed in Corning’s SEC filings.
|
·
|
Exchange rate movements on financial instruments and transactions denominated in foreign currencies that impact earnings; and
|
·
|
Exchange rate movements upon conversion of net assets and net income of foreign subsidiaries for which the functional currency is not the U.S. dollar, which impact our net equity.
|
(a)
|
Management’s Annual Report on Internal Control Over Financial Reporting
|
(b)
|
Attestation Report of the Independent Registered Public Accounting Firm
|
(c)
|
Changes in Internal Control Over Financial Reporting
|
A
|
B
|
C
|
|||
Plan category
|
Number of
securities to
be issued
upon exercise
of outstanding
options, warrants
and rights
|
Weighted-average
exercise price
of outstanding
options, warrants
and rights
|
Number of securities
remaining available for
future issuance under
equity compensation
plans (excluding
securities reflected
in column A)
|
||
Equity compensation plans approved by security holders (1)
|
42,738,000
|
$19.40
|
71,841,896
|
||
Equity compensation plans not approved by security holders
|
|||||
Total
|
42,738,000
|
$19.40
|
71,841,896
|
(1)
|
Shares indicated are total grants under the most recent shareholder approved plans as well as any shares remaining outstanding from any prior shareholder approved plans.
|
(a)
|
Documents filed as part of this report:
|
||||
Page
|
|||||
1.
|
Financial statements
|
||||
2.
|
Financial statement schedule:
|
||||
(i)
|
Valuation accounts and reserves
|
||||
See separate index to financial statements and financial statement schedules
|
(b)
|
Exhibits filed as part of this report:
|
|
2.1
|
Framework Agreement, dated as of October 22, 2013, by and among Samsung Display Co., Ltd.; Corning Incorporated and the other parties thereto. (Incorporated by reference to Exhibit 10.65 to Corning’s Form 10-K filed on February 10, 2014, as amended by its Form 10-K/A filed on March 21, 2014). The Company has omitted certain schedules, exhibits and similar attachments to the Framework Agreement pursuant to Item 601(b)(2) of Regulation S-K.
|
|
2.2
|
Transaction Agreement, dated December 10, 2015, by and between Corning Incorporated, The Dow Chemical Company, Dow Corning Corporation and HS Upstate Inc. (Incorporated by reference to Exhibit 2.1 of Corning’s Form 8-K filed on December 11, 2015).
|
|
2.3
|
Assignment Agreement, dated as of December 29, 2015, between Samsung Display Co., Ltd., Corning Incorporated, Corning Precision Materials Co., Ltd., and Corning Luxembourg S.àr.l., Corning Hungary Data Services Limited Liability Company, Corning Japan K.K., and Samsung Corning Advanced Glass LLC (Incorporated by reference to Exhibit 2.1 of Corning’s Form 8-K filed on December 29, 2015).
|
|
3 (i)
|
Restated Certificate of Incorporation dated April 27, 2012, filed with the Secretary of State of the State of New York on April 27, 2012 (Incorporated by reference to Exhibit 3(i) 1 of Corning’s Form 8-K filed on May 1, 2012).
|
|
3 (i)(1)
|
Certificate of Amendment to the Restated Certificate of Incorporation dated January 14, 2014, filed with the Secretary of State of the State of New York on January 14, 2014 (Incorporated by reference to Exhibit 3(i) of Corning’s Form 8-K filed on January 15, 2014).
|
|
3 (ii)
|
Amended and Restated By-Laws of Corning Incorporated, effective as of December 7, 2015 (Incorporated by reference to Exhibit 3(ii) of Corning’s Form 8-K filed December 7, 2015).
|
|
4.1
|
Indenture, dated November 8, 2000, by and between the Company and of The Bank of New York Mellon Trust Company, N.A. (successor to J. P. Morgan Chase & Co., formerly The Chase Manhattan Bank), as trustee (Incorporated by reference to Exhibit 4.01 to Corning’s Registration Statement on Form S-3, Registration Statement No. 333-57082). The Company agrees to furnish to the Commission on request copies of other instruments with respect to long-term debt.
|
|
4.2
|
Form of certificate for shares of the common stock (Incorporated by reference to Exhibit 4 to Corning’s registration statement on Form S-8 dated May 7, 2010 (Registration Statement No. 333-166642)). The terms of the Company’s Fixed Rate Cumulative Convertible Preferred Stock, Series A are reflected in the Certificate of Amendment to the Restated Certificate of Incorporation dated January 14, 2014, filed with the Secretary of State of the State of New York on January 14, 2014 and included as Exhibit 3(i)(1) hereto.
|
|
4.3
|
Shareholder Agreement, dated as of October 22, 2013, by and between Samsung Display Co., Ltd. and Corning Incorporated (Incorporated by reference to Exhibit 10.66 to Corning’s Form 10-K filed on February 10, 2014, as amended by its Form 10-K/A filed on March 21, 2014).
|
|
4.4
|
Standstill Agreement, dated as of October 22, 2013, by and among Samsung Electronics Co., Ltd., Samsung Display Co., Ltd. and Corning Incorporated (Incorporated by reference to Exhibit 10.67 to Corning’s Form 10-K filed on February 10, 2014, as amended by its Form 10-K/A filed on March 21, 2014).
|
|
10.1
|
2000 Employee Equity Participation Program and 2003 Amendments (Incorporated by reference to Exhibit 1 of Corning Proxy Statement, Definitive 14A filed March 10, 2003 for April 24, 2003 Annual Meeting of Shareholders).
|
10.2
|
2003 Variable Compensation Plan (Incorporated by reference to Exhibit 2 of Corning Proxy Statement, Definitive 14A filed March 10, 2003 for April 24, 2003 Annual Meeting of Shareholders).
|
||
10.3
|
2003 Equity Plan for Non-Employee Directors (Incorporated by reference to Exhibit 3 of Corning Proxy Statement, Definitive 14A filed March 10, 2003 for April 24, 2003 Annual Meeting of Shareholders).
|
||
10.4
|
Form of Officer Severance Agreement dated as of February 1, 2004 between Corning Incorporated and each of the following individuals: James P. Clappin, James B. Flaws, Kirk P. Gregg, and Lawrence D. McRae (Incorporated by reference to Exhibit 10.1 of Corning’s Form 10-Q filed May 4, 2004).
|
||
10.5
|
Form of Amendment dated as of February 1, 2004 to Change In Control Agreement dated as of October 4, 2000 between Corning Incorporated and the following individuals: James P. Clappin, James B. Flaws, Kirk P. Gregg, and Lawrence D. McRae (Incorporated by reference to Exhibit 10.4 of Corning’s Form 10-Q filed May 4, 2004).
|
||
10.6
|
Form of Change In Control Amendment dated as of October 4, 2000 between Corning Incorporated and the following individuals: James P. Clappin, James B. Flaws, Kirk P. Gregg and Lawrence D. McRae (Incorporated by reference to Exhibit 10.5 of Corning’s Form 10-Q filed May 4, 2004).
|
||
10.7
|
Amendment dated as of February 1, 2004 to Change In Control Agreement dated as of April 23, 2002 between Corning Incorporated and Wendell P. Weeks (Incorporated by reference to Exhibit 10.8 of Corning’s Form 10-Q filed May 4, 2004).
|
||
10.8
|
Change In Control Agreement dated as of April 23, 2002 between Corning Incorporated and Wendell P. Weeks (Incorporated by reference to Exhibit 10.9 of Corning’s Form 10-Q filed May 4, 2004).
|
||
10.9
|
Form of Corning Incorporated Incentive Stock Plan Agreement for Restricted Stock Grants (Incorporated by reference to Exhibit 10.1 of Corning’s Form 10-Q filed October 28, 2004).
|
||
10.10
|
Form of Corning Incorporated Incentive Stock Plan Agreement for Restricted Stock Retention Grants (Incorporated by reference to Exhibit 10.2 of Corning’s Form 10-Q filed October 28, 2004).
|
||
10.11
|
Form of Corning Incorporated Incentive Stock Option Agreement (Incorporated by reference to Exhibit 10.3 of Corning’s Form 10-Q filed October 28, 2004).
|
||
10.12
|
Form of Corning Incorporated Non-Qualified Stock Option Agreement (Incorporated by reference to Exhibit 10.4 of Corning’s Form 10-Q filed October 28, 2004).
|
||
10.13
|
2005 Employee Equity Participation Program (Incorporated by reference to Exhibit I of Corning Proxy Statement, Definitive 14A filed March 1, 2005 for April 28, 2005 Annual Meeting of Shareholders).
|
||
10.14
|
2006 Variable Compensation Plan (Incorporated by reference to Appendix J of Corning Proxy Statement, Definitive 14A filed March 8, 2006 for April 27, 2006 Annual Meeting of Shareholders).
|
||
10.15
|
Amended 2003 Equity Plan for Non-Employee Directors (Incorporated by reference to Appendix K of Corning Proxy Statement, Definitive 14A filed March 8, 2006 for April 27, 2006 Annual Meeting of Shareholders).
|
||
10.16
|
Amended Corning Incorporated 2003 Equity Plan for Non-Employee Directors effective October 4, 2006 (Incorporated by reference to Exhibit 10.28 of Corning’s Form 10-K filed February 25, 2007).
|
||
10.17
|
Amended Corning Incorporated 2005 Employee Equity Participation Program effective October 4, 2006 (Incorporated by reference to Exhibit 10.29 of Corning’s Form 10-K filed February 25, 2007).
|
||
10.18
|
Form of Corning Incorporated Incentive Stock Plan Agreement for Restricted Stock Grants, amended effective December 6, 2006 (Incorporated by reference to Exhibit 10.30 of Corning’s Form 10-K filed February 25, 2007).
|
||
10.19
|
Executive Supplemental Pension Plan effective February 7, 2007 and signed February 12, 2007 (Incorporated by reference to Exhibit 10.31 of Corning’s Form 10-K filed February 25, 2007).
|
||
10.20
|
Executive Supplemental Pension Plan as restated and signed April 10, 2007 (Incorporated by reference to Exhibit 10 of Corning’s Form 10-Q filed April 27, 2007).
|
||
10.21
|
Amendment No. 1 to 2006 Variable Compensation Plan dated October 3, 2007 (Incorporated by reference to Exhibit 10.34 of Corning’s Form 10-K filed February 15, 2008).
|
||
10.22
|
Corning Incorporated Goalsharing Plan dated October 3, 2007 (Incorporated by reference to Exhibit 10.35 of Corning’s Form 10-K filed February 15, 2008).
|
10.23
|
Corning Incorporated Performance Incentive Plan dated October 3, 2007 (Incorporated by reference to Exhibit 10.36 of Corning’s Form 10-K filed February 15, 2008).
|
|
10.24
|
Amendment No. 1 to Deferred Compensation Plan for Directors dated October 3, 2007 (Incorporated by reference to Exhibit 10.37 of Corning’s Form 10-K filed February 15, 2008).
|
|
10.25
|
Corning Incorporated Supplemental Pension Plan dated October 3, 2007 (Incorporated by reference to Exhibit 10.38 of Corning’s Form 10-K filed February 15, 2008).
|
|
10.26
|
Corning Incorporated Supplemental Investment Plan dated October 3, 2007 (Incorporated by reference to Exhibit 10.39 of Corning’s Form 10-K filed February 15, 2008).
|
|
10.27
|
Form of Corning Incorporated Incentive Stock Plan Agreement for Restricted Stock Grants, amended effective December 5, 2007 (Incorporated by reference to Exhibit 10.40 of Corning’s Form 10-K filed February 15, 2008).
|
|
10.28
|
Form of Corning Incorporated Non-Qualified Stock Option Agreement, amended effective December 5, 2007 (Incorporated by reference to Exhibit 10.41 of Corning’s Form 10-K filed February 15, 2008).
|
|
10.29
|
Amendment No. 2 dated February 13, 2008 and Amendment dated as of February 1, 2004 to Letter of Understanding between Corning Incorporated and Wendell P. Weeks, and Letter of Understanding dated April 23, 2002 between Corning Incorporated and Wendell P. Weeks (Incorporated by reference to Exhibit 10.42 of Corning’s Form 10-K filed February 15, 2008).
|
|
10.30
|
Form of Change in Control Agreement Amendment No. 2, effective December 5, 2007 (Incorporated by reference to Exhibit 10.43 of Corning’s Form 10-K filed February 15, 2008).
|
|
10.31
|
Form of Officer Severance Agreement Amendment, effective December 5, 2007 (Incorporated by reference to Exhibit 10.44 of Corning’s Form 10-K filed February 15, 2008).
|
|
10.32
|
Amendment No. 1 to Corning Incorporated Supplemental Investment Plan, approved December 17, 2007 (Incorporated by reference to Exhibit 10.45 of Corning’s Form 10-K filed February 15, 2008).
|
|
10.33
|
Amendment No. 1 to Corning Incorporated Supplemental Pension Plan, approved December 17, 2007 (Incorporated by reference to Exhibit 10.46 of Corning’s Form 10-K filed February 15, 2008).
|
|
10.34
|
Amendment No. 1 to Corning Incorporated Executive Supplemental Pension Plan, approved December 17, 2007 (Incorporated by reference to Exhibit 10.47 of Corning’s Form 10-K filed February 15, 2008).
|
|
10.35
|
Second Amended 2005 Employee Equity Participation Program (Incorporated by reference to Exhibit 10 of Corning’s Form 8-K filed April 25, 2008).
|
|
10.36
|
Amendment No. 2 to Executive Supplemental Pension Plan effective July 16, 2008 (Incorporated by reference to Exhibit 10 of Corning’s Form 10-Q filed July 30, 2008).
|
|
10.37
|
Form of Corning Incorporated Non-Qualified Stock Option Agreement effective as of December 3, 2008 (Incorporated by reference to Exhibit 10.50 of Corning’s Form 10-K filed February 24, 2009).
|
|
10.38
|
Form of Corning Incorporated Incentive Stock Right Agreement effective as of December 3, 2008 (Incorporated by reference to Exhibit 10.51 of Corning’s Form 10-K filed February 24, 2009).
|
|
10.39
|
Form of Corning Incorporated Incentive Stock Plan Agreement for Restricted Stock Grants effective December 3, 2008 (Incorporated by reference to Exhibit 10.52 of Corning’s Form 10-K filed February 24, 2009).
|
|
10.40
|
Form of Change of Control Agreement Amendment No. 3 effective December 19, 2008 (Incorporated by reference to Exhibit 10.53 of Corning’s Form 10-K filed February 24, 2009).
|
|
10.41
|
Form of Officer Severance Agreement Amendment No. 2 effective December 19, 2008 (Incorporated by reference to Exhibit 10.54 of Corning’s Form 10-K filed February 24, 2009).
|
|
10.42
|
Amendment No. 3 dated December 19, 2008 to Letter of Understanding dated April 23, 2002 between Corning Incorporated and Wendell P. Weeks (Incorporated by reference to Exhibit 10.55 of Corning’s Form 10-K filed February 24, 2009).
|
|
10.43
|
Amendment No. 2 to Corning Incorporated Supplemental Investment Plan approved April 29, 2009 (Incorporated by reference to Exhibit 10.1 of Corning’s Form 10-Q filed July 29, 2009).
|
10.44
|
Amendment No. 2 to Deferred Compensation Plan dated April 29, 2009 (Incorporated by reference to Exhibit 10.2 of Corning’s Form 10-Q filed July 29, 2009).
|
|
10.45
|
Amendment No. 2 to 2006 Variable Compensation Plan dated December 2, 2009 (Incorporated by reference to Exhibit 10.58 of Corning’s Form 10-K filed February 10, 2010).
|
|
10.46
|
Form of Corning Incorporated Cash Performance Unit Agreement, effective December 2, 2009 (Incorporated by reference to Exhibit 10.59 of Corning’s Form 10-K filed February 10, 2010).
|
|
10.47
|
Form of Corning Incorporated Incentive Stock Right Agreement for Time-Based Restricted Stock Units, effective December 2, 2009 (Incorporated by reference to Exhibit 10.60 of Corning’s Form 10-K filed February 10, 2010).
|
|
10.48
|
2010 Variable Compensation Plan (Incorporated by reference to Appendix A of Corning’s Proxy Statement, Definitive 14A filed March 15, 2010 for April 29, 2010 Annual Meeting of Shareholders).
|
|
10.49
|
2010 Equity Plan for Non-Employee Directors (Incorporated by reference to Appendix B of Corning Proxy Statement, Definitive 14A filed March 15, 2010 for April 29, 2010 Annual Meeting of Shareholders).
|
|
10.50
|
Compensation Arrangement for Retention of James B. Flaws approved by the Corning Board Compensation Committee on January 3, 2011 (Incorporated by reference to Corning’s Form 8-K filed January 3, 2011).
|
|
10.51
|
Amendment No. 2 to Corning Incorporated Supplemental Pension Plan dated December 18, 2008 (Incorporated by reference to Exhibit 10.66 of Corning’s Form 10-K filed February 10, 2011).
|
|
10.52
|
Form of Corning Incorporated Incentive Stock Right Agreement for Time-Based Incentive Stock Rights, effective January 3, 2011 (Incorporated by reference to Exhibit 10.67 of Corning’s Form 10-K filed February 10, 2011).
|
|
10.53
|
Form of Corning Incorporated Cash Performance Unit Agreement, effective January 3, 2011 (Incorporated by reference to Exhibit 10.68 of Corning’s Form 10-K filed February 10, 2011).
|
|
10.54
|
Amendment No. 2 to Deferred Compensation Plan for Directors dated February 1, 2012 (Incorporated by reference to Exhibit 10.62 of Corning’s Form 10-K filed February 13, 2012).
|
|
10.55
|
Amendment No. 3 to Corning Incorporated Executive Supplemental Pension Plan effective December 31, 2008 (Incorporated by reference to Exhibit 10.59 of Corning’s Form 10-K filed February 13, 2013).
|
|
10.56
|
2012 Long-Term Incentive Plan (Incorporated by reference to Appendix A of Corning Proxy Statement, Definitive 14A filed March 13, 2012, for April 26, 2012 Annual Meeting of Shareholders).
|
|
10.57
|
Amendment No. 3 to Deferred Compensation Plan for Directors dated December 28, 2012 (Incorporated by reference to Exhibit 10.61 of Corning’s Form 10-K filed February 13, 2013).
|
|
10.58
|
Amendment No. 4 to Corning Incorporated Executive Supplemental Pension Plan effective December 31, 2012 (Incorporated by reference to Exhibit 10.62 of Corning’s Form 10-K filed February 13, 2013).
|
|
10.59
|
Form of Corning Incorporated Cash Performance Unit Agreement, effective January 1, 2014 (Incorporated by reference to Exhibit 10.69 to Corning’s Form 10-K filed on February 10, 2014, as amended by its Form 10-K/A filed on March 21, 2014).
|
|
10.60
|
Amendment No. 4 to Deferred Compensation Plan for Directors dated September 30, 2014. (Incorporated by reference to Exhibit 10.1 of Corning’s Form 10-Q filed on October 29, 2014).
|
|
10.61
|
Amended and Restated Credit Agreement dated as of September 30, 2014, among Corning Incorporated, JPMorgan Chase Bank, N.A., Citibank, N.A., Bank of America, N.A., Deutsche Bank AG New York Branch, The Bank of Tokyo-Mitsubishi UFJ, Ltd., HSBC Bank USA, National Association, Standard Chartered Bank, Sumitomo Mitsui Banking Corporation, Barclays Bank PLC, Goldman Sachs Bank USA, Wells Fargo Bank, National Association, Bank of China New York Branch, and The Bank of New York Mellon (Incorporated by reference to Exhibit 10.1 to Corning’s Form 8-K filed on October 3, 2014).
|
|
10.62
|
2014 Variable Compensation Plan (Incorporated by reference to Appendix B of Corning’s Proxy Statement, Definitive 14A filed March 13, 2014 for the April 29, 2014 Annual Meeting of Shareholders).
|
|
10.63
|
Form of Corning Incorporated Incentive Stock Rights Agreement, effective January 1, 2015. (Incorporated by reference to Exhibit 10.64 of Corning’s Form 10-K filed February 13, 2015).
|
10.64
|
Form of Corning Incorporated Cash Performance Unit Agreement, effective January 1, 2015 (Incorporated by reference to Exhibit 10.65 of Corning’s Form 10-K filed February 13, 2015).
|
|
10.65
|
Form of Officer Severance Agreement dated as of January 1, 2015 between Corning Incorporated and each of the following individuals: Martin J. Curran; Eric S. Musser; Christine M. Pambianchi; and R. Tony Tripeny (Incorporated by reference to Exhibit 10.1 of Corning’s Form 10-Q filed July 30, 2015).
|
|
10.66
|
Form of Change in Control Agreement dated as of January 1, 2015 between Corning Incorporated and each of the following individuals: Martin J. Curran; Eric S. Musser; Christine M. Pambianchi; and R. Tony Tripeny (Incorporated by reference to Exhibit 10.2 of Corning’s Form 10-Q filed July 30, 2015).
|
|
10.67
|
Master Confirmation – Uncollared Accelerated Share Repurchase, dated October 28, 2015 by and between Morgan Stanley & Co. LLC and Corning Incorporated.
|
|
10.68
|
Tax Matters Agreement, dated December 10, 2015, by and between Corning Incorporated, The Dow Chemical Company, Dow Corning Corporation and HS Upstate Inc. (Incorporated by reference to Exhibit 1.2 of Corning’s Form 8-K filed on December 11, 2015).
|
|
10.69
|
Form of Corning Incorporated Incentive Stock Rights Agreement, effective January 1, 2016.
|
|
10.70
|
Form of Corning Incorporated Cash Performance Unit Agreement, effective January 1, 2016.
|
|
12
|
Computation of Ratio of Earnings to Fixed Charges and Ratio of Earnings to Combined Fixed Charges and Preferred Stock Dividends.
|
|
14
|
Corning Incorporated Code of Ethics for Chief Executive Officer and Financial Executives, and Code of Conduct for Directors and Executive Officers (Incorporated by reference to Appendix G of Corning Proxy Statement, Definitive 14A filed March 13, 2012 for April 26, 2012 Annual Meeting of Shareholders).
|
|
21
|
Subsidiaries of the Registrant at December 31, 2015.
|
|
23.1
|
Consent of PricewaterhouseCoopers LLP, Independent Registered Public Accounting Firm.
|
|
23.2
|
Consent of PricewaterhouseCoopers LLP.
|
|
23.3
|
Consent of Samil PricewaterhouseCoopers.
|
|
24
|
Powers of Attorney.
|
|
31.1
|
Certification Pursuant to Rule 13a-15(e) and 15d-15(e), As Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
|
31.2
|
Certification Pursuant to Rule 13a-15(e) and 15d-15(e), As Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
|
32
|
Certification Pursuant to 18 U.S.C. Section 1350, As Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
|
101.INS
|
XBRL Instance Document
|
|
101.SCH
|
XBRL Taxonomy Extension Schema Document
|
|
101.CAL
|
XBRL Taxonomy Calculation Linkbase Document
|
|
101.LAB
|
XBRL Taxonomy Label Linkbase Document
|
|
101.PRE
|
XBRL Taxonomy Presentation Linkbase Document
|
|
101.DEF
|
XBRL Taxonomy Definition Document
|
(c)
|
Financial Statements:
|
||
1.
|
|||
2.
|
By
|
/s/ Wendell P. Weeks
|
Chairman of the Board of Directors, Chief
|
February 12, 2016
|
|||
(Wendell P. Weeks)
|
Executive Officer and President
|
|||||
Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the date indicated.
|
||||||
Capacity
|
Date
|
|||||
/s/ Wendell P. Weeks
|
Chairman of the Board of Directors, Chief Executive Officer and President
|
February 12, 2016
|
||||
(Wendell P. Weeks)
|
(Principal Executive Officer)
|
|||||
/s/ R. Tony Tripeny
|
Senior Vice President and Chief Financial Officer
|
February 12, 2016
|
||||
(R. Tony Tripeny)
|
(Principal Financial Officer)
|
|||||
/s/ Edward A. Schlesinger
|
Vice President and Corporate Controller
|
February 12, 2016
|
||||
(Edward A. Schlesinger)
|
(Principal Accounting Officer)
|
|||||
*
|
Director
|
February 12, 2016
|
||||
(Donald W. Blair)
|
||||||
*
|
Director
|
February 12, 2016
|
||||
(Stephanie A. Burns)
|
||||||
*
|
Director
|
February 12, 2016
|
||||
(John A. Canning, Jr.)
|
||||||
*
|
Director
|
February 12, 2016
|
||||
(Richard T. Clark)
|
||||||
*
|
Director
|
February 12, 2016
|
||||
(Robert F. Cummings, Jr.)
|
||||||
*
|
Director
|
February 12, 2016
|
||||
(Deborah A. Henretta)
|
||||||
*
|
Director
|
February 12, 2016
|
||||
(Daniel P. Huttenlocher)
|
||||||
*
|
Director
|
February 12, 2016
|
||||
(Kurt M. Landgraf)
|
||||||
*
|
Director
|
February 12, 2016
|
||||
(Kevin J. Martin)
|
*
|
Director
|
February 12, 2016
|
||||
(Deborah D. Rieman)
|
||||||
*
|
Director
|
February 12, 2016
|
||||
(Hansel E. Tookes II)
|
||||||
*
|
Director
|
February 12, 2016
|
||||
(Mark S. Wrighton)
|
||||||
*By
|
/s/ Lewis A. Steverson
|
|||||
(Lewis A. Steverson, Attorney-in-fact)
|
Page
|
|||||
1.
|
|||||
2.
|
|||||
3.
|
|||||
4.
|
|||||
5.
|
|||||
6.
|
|||||
7.
|
|||||
8.
|
|||||
9.
|
|||||
10.
|
|||||
11.
|
|||||
12
|
|||||
13.
|
|||||
14.
|
|||||
15.
|
|||||
16.
|
|||||
17.
|
|||||
18.
|
|||||
19.
|
|||||
20.
|
|||||
Financial Statement Schedule
|
|||||
II.
|
|||||
Corning Incorporated and Subsidiary Companies
|
Years ended December 31,
|
||||||||
(In millions, except per share amounts)
|
2015
|
2014
|
2013
|
|||||
Net sales
|
$
|
9,111
|
$
|
9,715
|
$
|
7,819
|
||
Cost of sales
|
5,458
|
5,663
|
4,495
|
|||||
Gross margin
|
3,653
|
4,052
|
3,324
|
|||||
Operating expenses:
|
||||||||
Selling, general and administrative expenses
|
1,523
|
1,211
|
1,126
|
|||||
Research, development and engineering expenses
|
769
|
815
|
710
|
|||||
Amortization of purchased intangibles
|
54
|
33
|
31
|
|||||
Restructuring, impairment and other charges (Note 2)
|
71
|
67
|
||||||
Asbestos litigation (credit) charges (Note 7)
|
(15)
|
(9)
|
19
|
|||||
Operating income
|
1,322
|
1,931
|
1,371
|
|||||
Equity in earnings of affiliated companies (Note 7)
|
299
|
266
|
547
|
|||||
Interest income
|
21
|
26
|
8
|
|||||
Interest expense
|
(140)
|
(123)
|
(120)
|
|||||
Transaction-related gain, net (Note 8)
|
74
|
|||||||
Foreign currency hedge gain, net
|
85
|
1,411
|
622
|
|||||
Other (expense) income, net
|
(101)
|
(17)
|
45
|
|||||
Income before income taxes
|
1,486
|
3,568
|
2,473
|
|||||
Provision for income taxes (Note 6)
|
(147)
|
(1,096)
|
(512)
|
|||||
Net income attributable to Corning Incorporated
|
$
|
1,339
|
$
|
2,472
|
$
|
1,961
|
||
Earnings per common share attributable to Corning Incorporated:
|
||||||||
Basic (Note 18)
|
$
|
1.02
|
$
|
1.82
|
$
|
1.35
|
||
Diluted (Note 18)
|
$
|
1.00
|
$
|
1.73
|
$
|
1.34
|
||
Dividends declared per common share (1)
|
$
|
0.36
|
$
|
0.52
|
$
|
0.39
|
(1)
|
The first quarter 2015 dividend was declared on December 3, 2014.
|
Corning Incorporated and Subsidiary Companies
|
Years ended December 31,
|
||||||||
(In millions)
|
2015
|
2014
|
2013
|
|||||
Net income attributable to Corning Incorporated
|
$
|
1,339
|
$
|
2,472
|
$
|
1,961
|
||
Foreign currency translation adjustments and other
|
(590)
|
(1,073)
|
(682)
|
|||||
Net unrealized gains (losses) on investments
|
1
|
(1)
|
2
|
|||||
Unamortized gains (losses) and prior service (costs) credits for postretirement benefit plans
|
121
|
(281)
|
392
|
|||||
Net unrealized (losses) gains on designated hedges
|
(36)
|
4
|
(24)
|
|||||
Other comprehensive loss, net of tax (Note 17)
|
(504)
|
(1,351)
|
(312)
|
|||||
Comprehensive income attributable to Corning Incorporated
|
$
|
835
|
$
|
1,121
|
$
|
1,649
|
Corning Incorporated and Subsidiary Companies
|
December 31,
|
|||||
(In millions, except share and per share amounts)
|
2015
|
2014
|
|||
Assets
|
|||||
Current assets:
|
|||||
Cash and cash equivalents
|
$
|
4,500
|
$
|
5,309
|
|
Short-term investments, at fair value (Note 3)
|
100
|
759
|
|||
Total cash, cash equivalents and short-term investments
|
4,600
|
6,068
|
|||
Trade accounts receivable, net of doubtful accounts and allowances - $48 and $47
|
1,372
|
1,501
|
|||
Inventories, net of inventory reserves - $146 and $127 (Note 5)
|
1,385
|
1,322
|
|||
Deferred income taxes (Note 6)
|
248
|
||||
Other current assets (Note 11 and 15)
|
912
|
1,099
|
|||
Total current assets
|
8,269
|
10,238
|
|||
Investments (Note 7)
|
1,975
|
1,801
|
|||
Property, plant and equipment, net of accumulated depreciation - $9,188 and $8,332 (Note 9)
|
12,648
|
12,766
|
|||
Goodwill, net (Note 10)
|
1,380
|
1,150
|
|||
Other intangible assets, net (Note 10)
|
706
|
497
|
|||
Deferred income taxes (Note 6)
|
2,056
|
1,889
|
|||
Other assets (Note 8, 11 and 15)
|
1,513
|
1,722
|
|||
Total Assets
|
$
|
28,547
|
$
|
30,063
|
|
Liabilities and Equity
|
|||||
Current liabilities:
|
|||||
Current portion of long-term debt and short-term borrowings (Note 12)
|
$
|
572
|
$
|
36
|
|
Accounts payable
|
934
|
997
|
|||
Other accrued liabilities (Note 11 and 14)
|
1,308
|
1,291
|
|||
Total current liabilities
|
2,814
|
2,324
|
|||
Long-term debt (Note 12)
|
3,910
|
3,227
|
|||
Postretirement benefits other than pensions (Note 13)
|
718
|
814
|
|||
Other liabilities (Note 11 and 14)
|
2,242
|
2,046
|
|||
Total liabilities
|
9,684
|
8,411
|
|||
Commitments and contingencies (Note 14)
|
|||||
Shareholders’ equity (Note 17):
|
|||||
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: 1,681 million and 1,672 million
|
840
|
836
|
|||
Additional paid-in capital – common stock
|
13,352
|
13,456
|
|||
Retained earnings
|
13,832
|
13,021
|
|||
Treasury stock, at cost; shares held: 551 million and 398 million
|
(9,725)
|
(6,727)
|
|||
Accumulated other comprehensive loss
|
(1,811)
|
(1,307)
|
|||
Total Corning Incorporated shareholders’ equity
|
18,788
|
21,579
|
|||
Noncontrolling interests
|
75
|
73
|
|||
Total equity
|
18,863
|
21,652
|
|||
Total Liabilities and Equity
|
$
|
28,547
|
$
|
30,063
|
Corning Incorporated and Subsidiary Companies
|
Years ended December 31,
|
||||||||
(In millions)
|
2015
|
2014
|
2013
|
|||||
Cash Flows from Operating Activities:
|
||||||||
Net income
|
$
|
1,339
|
$
|
2,472
|
$
|
1,961
|
||
Adjustments to reconcile net income to net cash provided by operating activities:
|
||||||||
Depreciation
|
1,130
|
1,167
|
971
|
|||||
Amortization of purchased intangibles
|
54
|
33
|
31
|
|||||
Restructuring, impairment and other charges
|
71
|
67
|
||||||
Stock compensation charges
|
46
|
58
|
54
|
|||||
Equity in earnings of affiliated companies
|
(299)
|
(266)
|
(547)
|
|||||
Dividends received from affiliated companies
|
143
|
1,704
|
630
|
|||||
Deferred tax provision
|
54
|
612
|
189
|
|||||
Restructuring payments
|
(40)
|
(39)
|
(35)
|
|||||
Customer deposits
|
197
|
|||||||
Employee benefit payments (in excess of) less than expense
|
(52)
|
(52)
|
52
|
|||||
Gains on foreign currency hedges related to translated earnings
|
(80)
|
(1,369)
|
(435)
|
|||||
Unrealized translation losses on transactions
|
268
|
431
|
96
|
|||||
Contingent consideration fair value adjustment
|
(13)
|
(249)
|
||||||
Changes in certain working capital items:
|
||||||||
Trade accounts receivable
|
162
|
(16)
|
(29)
|
|||||
Inventories
|
(77)
|
2
|
(247)
|
|||||
Other current assets
|
(57)
|
(16)
|
34
|
|||||
Accounts payable and other current liabilities
|
(146)
|
(3)
|
(23)
|
|||||
Other, net
|
180
|
169
|
18
|
|||||
Net cash provided by operating activities
|
2,809
|
4,709
|
2,787
|
|||||
Cash Flows from Investing Activities:
|
||||||||
Capital expenditures
|
(1,250)
|
(1,076)
|
(1,019)
|
|||||
Acquisitions of businesses, net of cash (paid) received
|
(732)
|
66
|
(68)
|
|||||
Proceeds from sale of a business
|
12
|
|||||||
Investment in unconsolidated entities
|
(33)
|
(109)
|
(526)
|
|||||
Proceeds from loan repayments from unconsolidated entities
|
6
|
23
|
8
|
|||||
Short-term investments – acquisitions
|
(969)
|
(1,398)
|
(1,406)
|
|||||
Short-term investments – liquidations
|
1,629
|
1,167
|
2,026
|
|||||
Premium on purchased collars
|
(107)
|
|||||||
Realized gains on foreign currency hedges related to translated earnings
|
653
|
361
|
87
|
|||||
Other, net
|
(1)
|
4
|
1
|
|||||
Net cash used in investing activities
|
(685)
|
(962)
|
(1,004)
|
|||||
Cash Flows from Financing Activities:
|
||||||||
Retirement of long-term debt, net
|
(498)
|
|||||||
Net repayments of short-term borrowings and current portion of long-term debt
|
(12)
|
(52)
|
(71)
|
|||||
Proceeds from issuance of long-term debt
|
745
|
248
|
||||||
Proceeds from issuance of short-term debt, net
|
3
|
29
|
||||||
Proceeds from issuance of commercial paper
|
481
|
|||||||
(Payments) proceeds from the settlement of interest rate swap agreements
|
(10)
|
33
|
||||||
Principal payments under capital lease obligations
|
(6)
|
(6)
|
(7)
|
|||||
Proceeds from issuance of preferred stock (1)
|
400
|
|||||||
Proceeds received for asset financing and related incentives, net
|
1
|
1
|
276
|
|||||
Payments to acquire noncontrolling interest
|
(47)
|
|||||||
Proceeds from the exercise of stock options
|
102
|
116
|
85
|
|||||
Repurchases of common stock for treasury
|
(3,228)
|
(2,483)
|
(1,516)
|
|||||
Dividends paid
|
(679)
|
(591)
|
(566)
|
|||||
Net cash used in financing activities
|
(2,603)
|
(2,586)
|
(2,063)
|
|||||
Effect of exchange rates on cash
|
(330)
|
(556)
|
(4)
|
|||||
Net (decrease) increase in cash and cash equivalents
|
(809)
|
605
|
(284)
|
|||||
Cash and cash equivalents at beginning of year
|
5,309
|
4,704
|
4,988
|
|||||
Cash and cash equivalents at end of year
|
$
|
4,500
|
$
|
5,309
|
$
|
4,704
|
(1)
|
In the first quarter of 2014, Corning issued 1,900 shares of Preferred Stock to Samsung Display Co., Ltd. in connection with the acquisition of their equity interests in Samsung Corning Precision Materials Co., Ltd. (Note 8). Corning also issued to Samsung Display an additional 400 shares of Preferred Stock at closing, for an issue price of $400 million in cash (Note 17).
|
Corning Incorporated and Subsidiary Companies
|
(In millions)
|
Convertible
preferred
stock
|
Common
stock
|
Additional
paid-in
capital-common
|
Retained
earnings
|
Treasury
stock
|
Accumulated
other
comprehensive
income (loss)
|
Total Corning
Incorporated
shareholders’
equity
|
Non-
controlling
interests
|
Total
|
|||||||||
Balance, December 31, 2012
|
$
|
825
|
$
|
13,146
|
$
|
9,932
|
$
|
(2,773)
|
$
|
356
|
$
|
21,486
|
$
|
47
|
$
|
21,533
|
||
Net income
|
1,961
|
1,961
|
1,961
|
|||||||||||||||
Other comprehensive loss
|
(312)
|
(312)
|
(312)
|
|||||||||||||||
Purchase of common stock for treasury
|
(200)
|
(1,316)
|
(1,516)
|
(1,516)
|
||||||||||||||
Shares issued to benefit plans and for option exercises
|
6
|
139
|
(1)
|
144
|
144
|
|||||||||||||
Dividends on shares
|
(566)
|
(566)
|
(566)
|
|||||||||||||||
Other, net
|
(19)
|
(7)
|
(9)
|
(35)
|
2
|
(33)
|
||||||||||||
Balance, December 31, 2013
|
$
|
831
|
$
|
13,066
|
$
|
11,320
|
$
|
(4,099)
|
$
|
44
|
$
|
21,162
|
$
|
49
|
$
|
21,211
|
||
Net income
|
2,472
|
2,472
|
3
|
2,475
|
||||||||||||||
Other comprehensive loss
|
(1,351)
|
(1,351)
|
(1)
|
(1,352)
|
||||||||||||||
Shares issued for acquisition of equity investment company
|
$
|
1,900
|
1,900
|
15
|
1,915
|
|||||||||||||
Shares issued for cash
|
400
|
400
|
400
|
|||||||||||||||
Purchase of common stock for treasury
|
129
|
(2,612)
|
(2,483)
|
(2,483)
|
||||||||||||||
Shares issued to benefit plans and for option exercises
|
5
|
261
|
(2)
|
264
|
264
|
|||||||||||||
Dividends on shares
|
(771)
|
(771)
|
(771)
|
|||||||||||||||
Other, net
|
(14)
|
(14)
|
7
|
(7)
|
||||||||||||||
Balance, December 31, 2014
|
$
|
2,300
|
$
|
836
|
$
|
13,456
|
$
|
13,021
|
$
|
(6,727)
|
$
|
(1,307)
|
$
|
21,579
|
$
|
73
|
$
|
21,652
|
Net income
|
1,339
|
1,339
|
9
|
1,348
|
||||||||||||||
Other comprehensive loss
|
(504)
|
(504)
|
(1)
|
(505)
|
||||||||||||||
Purchase of common stock for treasury
|
(250)
|
(2,978)
|
(3,228)
|
(3,228)
|
||||||||||||||
Shares issued to benefit plans and for option exercises
|
4
|
146
|
(1)
|
149
|
149
|
|||||||||||||
Dividends on shares
|
(528)
|
(528)
|
(528)
|
|||||||||||||||
Other, net
|
(19)
|
(19)
|
(6)
|
(25)
|
||||||||||||||
Balance, December 31, 2015
|
$
|
2,300
|
$
|
840
|
$
|
13,352
|
$
|
13,832
|
$
|
(9,725)
|
$
|
(1,811)
|
$
|
18,788
|
$
|
75
|
$
|
18,863
|
Corning Incorporated and Subsidiary Companies
|
Years ended December 31,
|
||||||||
2015
|
2014
|
2013
|
||||||
Non-cash transactions:
|
||||||||
Accruals for capital expenditures
|
$
|
298
|
$
|
358
|
$
|
185
|
||
Cash paid for interest and income taxes:
|
||||||||
Interest (1)
|
$
|
178
|
$
|
171
|
$
|
182
|
||
Income taxes, net of refunds received
|
$
|
253
|
$
|
577
|
$
|
469
|
(1)
|
Included in this amount are approximately $35 million, $40 million and $35 million of interest costs that were capitalized as part of property, plant and equipment, net of accumulated depreciation, in 2015, 2014 and 2013, respectively.
|
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
|
·
|
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.
|
Reserve at
January 1,
2014
|
Net
Charges/
Reversals
|
Non cash
adjustments
|
Cash
payments
|
Reserve at
December 31,
2014
|
||||||||||
Restructuring:
|
||||||||||||||
Employee related costs
|
$
|
36
|
$
|
48
|
$
|
(9)
|
$
|
(31)
|
$
|
44
|
||||
Other charges (credits)
|
8
|
1
|
(1)
|
(8)
|
||||||||||
Total restructuring activity
|
$
|
44
|
$
|
49
|
$
|
(10)
|
$
|
(39)
|
$
|
44
|
||||
Impairment charges and disposal of long-lived assets:
|
$
|
22
|
||||||||||||
Total restructuring, impairment and other charges
|
$
|
71
|
Reserve at
January 1,
2013
|
Net
Charges/
Reversals
|
Non cash
adjustments
|
Cash
payments
|
Reserve at
December 31,
2013
|
||||||||||
Restructuring:
|
||||||||||||||
Employee related costs
|
$
|
38
|
$
|
34
|
$
|
(4)
|
$
|
(32)
|
$
|
36
|
||||
Other charges (credits)
|
4
|
7
|
(3)
|
8
|
||||||||||
Total restructuring activity
|
$
|
42
|
$
|
41
|
$
|
(4)
|
$
|
(35)
|
$
|
44
|
||||
Impairment charges and disposal of long-lived assets:
|
$
|
26
|
||||||||||||
Total restructuring, impairment and other charges
|
$
|
67
|
Amortized cost
December 31,
|
Fair value
December 31,
|
||||||||||
2015
|
2014
|
2015
|
2014
|
||||||||
Bonds, notes and other securities:
|
|||||||||||
U.S. government and agencies
|
$
|
100
|
$
|
759
|
$
|
100
|
$
|
759
|
|||
Total short-term investments
|
$
|
100
|
$
|
759
|
$
|
100
|
$
|
759
|
|||
Asset-backed securities
|
$
|
37
|
$
|
42
|
$
|
33
|
$
|
38
|
|||
Total long-term investments
|
$
|
37
|
$
|
42
|
$
|
33
|
$
|
38
|
Less than one year
|
$ 70
|
Due in 1-5 years
|
30
|
Due in 5-10 years
|
|
Due after 10 years
|
33
|
Total
|
$133
|
(in millions)
|
Number of
securities
in a loss
position
|
December 31, 2015
|
|||||||||||
12 months or greater
|
Total
|
||||||||||||
Fair
value
|
Unrealized
losses (1)
|
Fair
value
|
Unrealized
losses
|
||||||||||
Asset-backed securities
|
21
|
$
|
33
|
$
|
(4)
|
$
|
33
|
$
|
(4)
|
||||
Total long-term investments
|
21
|
$
|
33
|
$
|
(4)
|
$
|
33
|
$
|
(4)
|
(1)
|
Unrealized losses in securities less than 12 months were not significant.
|
(in millions)
|
Number of
securities
in a loss
position
|
December 31, 2014
|
|||||||||||
12 months or greater
|
Total
|
||||||||||||
Fair
value
|
Unrealized
losses (1)
|
Fair
value
|
Unrealized
losses
|
||||||||||
Asset-backed securities
|
21
|
$
|
37
|
$
|
(4)
|
$
|
37
|
$
|
(4)
|
||||
Total long-term investments
|
21
|
$
|
37
|
$
|
(4)
|
$
|
37
|
$
|
(4)
|
(1)
|
Unrealized losses in securities less than 12 months were not significant.
|
December 31,
|
|||||
2015
|
2014
|
||||
Finished goods
|
$
|
633
|
$
|
586
|
|
Work in process
|
264
|
255
|
|||
Raw materials and accessories
|
200
|
202
|
|||
Supplies and packing materials
|
288
|
279
|
|||
Total inventories, net of inventory reserves
|
$
|
1,385
|
$
|
1,322
|
Years ended December 31,
|
||||||||
2015
|
2014
|
2013
|
||||||
U.S. companies
|
$
|
426
|
$
|
2,384
|
$
|
1,274
|
||
Non-U.S. companies
|
1,060
|
1,184
|
1,199
|
|||||
Income before income taxes
|
$
|
1,486
|
$
|
3,568
|
$
|
2,473
|
Years ended December 31,
|
||||||||
2015
|
2014
|
2013
|
||||||
Current:
|
||||||||
Federal
|
$
|
40
|
$
|
38
|
$
|
3
|
||
State and municipal
|
20
|
32
|
12
|
|||||
Foreign
|
33
|
414
|
308
|
|||||
Deferred:
|
||||||||
Federal
|
144
|
411
|
112
|
|||||
State and municipal
|
30
|
(9)
|
50
|
|||||
Foreign
|
(120)
|
210
|
27
|
|||||
Provision for income taxes
|
$
|
147
|
$
|
1,096
|
$
|
512
|
Years ended December 31,
|
||||||||
2015
|
2014
|
2013
|
||||||
Statutory U.S. income tax rate
|
35.0%
|
35.0%
|
35.0%
|
|||||
State income tax (benefit), net of federal effect
|
0.1
|
4.9
|
(9)
|
0.6
|
||||
Tax holidays (1)
|
(0.5)
|
(0.4)
|
(1.2)
|
|||||
Investment and other tax credits (2)
|
(1.7)
|
(0.3)
|
(2.0)
|
|||||
Rate difference on foreign earnings
|
(19.8)
|
(11)
|
(8.3)
|
(8.1)
|
(4)
|
|||
Uncertain tax positions
|
4.3
|
(10)
|
(0.1)
|
0.2
|
||||
Equity earnings impact (3)
|
(5.4)
|
(2.0)
|
(6.6)
|
|||||
Valuation allowances
|
(4.2)
|
(7)
|
0.8
|
(6)
|
3.1
|
(5)
|
||
Other items, net
|
2.1
|
1.1
|
(8)
|
(0.3)
|
||||
Effective income tax (benefit) rate
|
9.9%
|
30.7%
|
20.7%
|
(1)
|
Primarily related to a subsidiary in Taiwan operating under tax holiday arrangements. The nature and extent of such arrangements vary, and the benefits of existing arrangements phase out in future years (through 2018). The impact of tax holidays on net income per share on a diluted basis was $0.01 in 2015, $0.01 in 2014 and $0.02 in 2013.
|
(2)
|
Primarily related to research and development and other credits in the U.S.
|
(3)
|
Equity in earnings of nonconsolidated affiliates reported in the financials net of tax. The difference between 2013-2014 was due to the change of Samsung Corning Precision Materials from an equity company to a consolidated entity.
|
(4)
|
In 2013, $74 million of tax benefit increase was due to $37 million expense recorded in 2012 that was reversed in the first quarter of 2013 as a result of the retroactive application of the American Taxpayer Relief Act enacted on January 3, 2013. In 2013, the additional increase in the benefit was attributable to excess foreign tax credits realized in U.S. from a taxable intercompany loan.
|
(5)
|
Primarily related to change in judgment on the realizability of Australia and certain state deferred tax assets.
|
(6)
|
$177 million tax expense related to change in judgment on the realizability of Germany and Japan deferred tax assets is partially offset with benefit from state deferred tax asset valuation allowance reductions, including the valuation allowance relating to the New York State attribute reduction discussed in (9) below.
|
(7)
|
$100 million tax benefit primarily related to change in judgment on the realizability of Germany and Japan deferred tax assets is partially offset with tax expense from U.S. state and China deferred tax allowance increases.
|
(8)
|
Includes in 2014, $9 million benefit for domestic manufacturing deduction and $46 million of tax expense related to out of period transfer pricing adjustments. The impact of these corrections is not material to any individual period previously presented.
|
(9)
|
Includes $100 million tax expense related to the write-off of New York State tax attributes for a state law change that were offset with full valuation allowance.
|
(10)
|
Unrecognized tax benefit reserve was primarily for tax positions taken related to transfer pricing of which $31 million tax expense is related to out of period adjustments. The impact of these corrections is not material to any individual period previously presented. Since the Company operates in a number of countries with income tax treaties, an offsetting benefit was recorded where it believes it is more-likely-than-not to receive competent authority relief.
|
(11)
|
Tax benefit is primarily for excess foreign tax credits resulting from the inclusion of high-taxed foreign earnings in U.S. income and the income of Taiwan and Korea subsidiaries with lower statutory rates than the U.S. The amount of tax benefit in 2015 is relatively consistent with 2014. The change in the effective tax rate reconciliation percentage is driven by the significant decrease in the gain on our foreign currency translation hedges in 2015 versus 2014.
|
December 31,
|
|||||
2015
|
2014
|
||||
Loss and tax credit carryforwards
|
$
|
1,151
|
$
|
1,235
|
|
Other assets
|
69
|
69
|
|||
Asset impairments and restructuring reserves
|
153
|
170
|
|||
Postretirement medical and life benefits
|
276
|
312
|
|||
Other accrued liabilities
|
265
|
246
|
|||
Other employee benefits
|
505
|
473
|
|||
Gross deferred tax assets
|
2,419
|
2,505
|
|||
Valuation allowance
|
(238)
|
(298)
|
|||
Total deferred tax assets
|
2,181
|
2,207
|
|||
Intangible and other assets
|
(181)
|
(152)
|
|||
Fixed assets
|
(284)
|
(299)
|
|||
Total deferred tax liabilities
|
(465)
|
(451)
|
|||
Net deferred tax assets
|
$
|
1,716
|
$
|
1,756
|
December 31,
|
|||||
2015
|
2014
|
||||
Current deferred tax assets
|
$
|
248
|
|||
Non-current deferred tax assets
|
$
|
2,056
|
1,889
|
||
Current deferred tax liabilities
|
(5)
|
||||
Non-current deferred tax liabilities
|
(340)
|
(376)
|
|||
Net deferred tax assets
|
$
|
1,716
|
$
|
1,756
|
Expiration
|
||||||||||||||
Amount
|
2016-2020
|
2021-2025
|
2026-2035
|
Indefinite
|
||||||||||
Net operating losses
|
$
|
406
|
$
|
127
|
$
|
63
|
$
|
3
|
$
|
213
|
||||
Tax credits
|
745
|
414
|
58
|
237
|
36
|
|||||||||
Totals as of December 31, 2015
|
$
|
1,151
|
$
|
541
|
$
|
121
|
$
|
240
|
$
|
249
|
2015
|
2014
|
||||
Balance at January 1
|
$
|
10
|
$
|
15
|
|
Additions based on tax positions related to the current year
|
|||||
Additions for tax positions of prior years
|
245
|
5
|
|||
Reductions for tax positions of prior years
|
(1)
|
||||
Settlements and lapse of statute of limitations
|
(1)
|
(10)
|
|||
Balance at December 31
|
$
|
253
|
$
|
10
|
Ownership
interest (1)
|
December 31,
|
||||||||
2015
|
2014
|
||||||||
Affiliated companies accounted for by the equity method
|
|||||||||
Dow Corning
|
50%
|
$
|
1,483
|
$
|
1,325
|
||||
All other
|
20%
|
to
|
50%
|
422
|
452
|
||||
1,905
|
1,777
|
||||||||
Other investments
|
70
|
24
|
|||||||
Total
|
$
|
1,975
|
$
|
1,801
|
(1)
|
Amounts reflect Corning’s direct ownership interests in the respective affiliated companies at December 31, 2015. Corning does not control any of such entities.
|
Years ended December 31,
|
||||||||
2015
|
2014
|
2013
|
||||||
Statement of operations (1)(2):
|
||||||||
Net sales
|
$
|
6,461
|
$
|
7,124
|
$
|
8,526
|
||
Gross profit
|
$
|
1,606
|
$
|
1,701
|
$
|
2,655
|
||
Net income
|
$
|
586
|
$
|
647
|
$
|
1,135
|
||
Corning’s equity in earnings of affiliated companies
|
$
|
299
|
$
|
266
|
$
|
547
|
||
Related party transactions:
|
||||||||
Corning sales to affiliated companies
|
$
|
30
|
$
|
13
|
$
|
13
|
||
Corning purchases from affiliated companies
|
$
|
19
|
$
|
25
|
$
|
189
|
||
Corning transfers of assets, at cost, to affiliated companies (3)
|
$
|
37
|
||||||
Dividends received from affiliated companies
|
$
|
143
|
$
|
130
|
$
|
629
|
||
Royalty income from affiliated companies
|
$
|
2
|
$
|
57
|
||||
Corning services to affiliates
|
$
|
2
|
December 31,
|
||||||||
2015
|
2014
|
|||||||
Balance sheet:
|
||||||||
Current assets
|
$
|
5,228
|
$
|
5,432
|
||||
Noncurrent assets
|
$
|
6,453
|
$
|
6,864
|
||||
Short-term borrowings, including current portion of long-term debt
|
$
|
6
|
$
|
7
|
||||
Other current liabilities
|
$
|
1,461
|
$
|
1,630
|
||||
Long-term debt
|
$
|
800
|
$
|
950
|
||||
Other long-term liabilities
|
$
|
4,557
|
$
|
5,143
|
||||
Non-controlling interest
|
$
|
631
|
$
|
634
|
||||
Related party transactions:
|
||||||||
Balances due from affiliated companies
|
$
|
11
|
$
|
19
|
||||
Balances due to affiliated companies
|
$
|
1
|
$
|
2
|
||||
(1)
|
2013 amounts include Samsung Corning Precision Materials.
|
(2)
|
As a result of the series of strategic and financial agreements with Samsung Display entered into on October 22, 2013, certain non-operating assets of Samsung Corning Precision Materials were held for sale as of December 31, 2013 and are reported as discontinued operations in Samsung Corning Precision Materials financial statements, which are attached in Item 15, Exhibits and Financial Schedules. Previous period amounts have been conformed for comparative purposes.
|
(3)
|
In 2013, Corning purchased machinery and equipment on behalf of Samsung Corning Precision Materials to support its capital expansion initiative.
|
Years ended December 31,
|
||||||||
2015
|
2014
|
2013
|
||||||
Statement of operations:
|
||||||||
Net sales
|
$
|
5,649
|
$
|
6,221
|
$
|
5,711
|
||
Gross profit (1)
|
$
|
1,472
|
$
|
1,543
|
$
|
1,280
|
||
Net income attributable to Dow Corning
|
$
|
563
|
$
|
513
|
$
|
376
|
||
Corning’s equity in earnings of Dow Corning
|
$
|
281
|
$
|
252
|
$
|
196
|
||
Related party transactions:
|
||||||||
Corning purchases from Dow Corning
|
$
|
15
|
$
|
15
|
$
|
22
|
||
Dividends received from Dow Corning
|
$
|
143
|
$
|
125
|
$
|
100
|
December 31,
|
||||||||
2015
|
2014
|
|||||||
Balance sheet:
|
||||||||
Current assets
|
$
|
4,511
|
$
|
4,712
|
||||
Noncurrent assets
|
$
|
6,064
|
$
|
6,433
|
||||
Short-term borrowings, including current portion of long-term debt
|
$
|
6
|
$
|
7
|
||||
Other current liabilities
|
$
|
1,305
|
$
|
1,441
|
||||
Long-term debt
|
$
|
785
|
$
|
945
|
||||
Other long-term liabilities
|
$
|
4,539
|
$
|
5,125
|
||||
Non-controlling interest
|
$
|
631
|
$
|
634
|
||||
(1)
|
Gross profit for the year ended December 31, 2015 includes R&D cost of $233 million (2014: $273 million and 2013: $248 million).
|
7.
|
Investments (continued)
|
7.
|
Investments (continued)
|
Cash and cash equivalents
|
$
|
2
|
Trade receivables
|
63
|
|
Inventory
|
47
|
|
Property, plant and equipment
|
117
|
|
Other intangible assets
|
286
|
|
Other current and non-current assets
|
27
|
|
Current and non-current liabilities
|
(117)
|
|
Total identified net assets
|
425
|
|
Purchase consideration
|
(725)
|
|
Goodwill (1)
|
$
|
300
|
(1)
|
The goodwill recognized is partially deductible for U.S. income tax purposes. The goodwill was allocated to the Optical Communications and All Other reporting segment in the amount of $213 million and $87 million, respectively.
|
Net consideration applied to acquired assets
|
Samsung
Display
|
Corning
Incorporated
|
Samsung
Corning
Precision
Materials
|
|||||
Ownership percentage
|
42.5%
|
57.5%
|
100%
|
|||||
Fair value based on $1.9 billion consideration transferred
|
$
|
1,911
|
$
|
2,588
|
$
|
4,499
|
||
Less contingent consideration - receivable
|
(196)
|
(265)
|
(461)
|
|||||
Net fair value of consideration @ 100%
|
1,715
|
2,323
|
4,038
|
|||||
Corning’s loss on royalty contract
|
(136)
|
(184)
|
(320)
|
|||||
Fair value post-acquisition
|
$
|
1,579
|
$
|
2,139
|
$
|
3,718
|
||
Corning’s fair value 57.5% post-acquisition
|
2,139
|
|||||||
Total fair value at January 15, 2014
|
$
|
3,718
|
·
|
At acquisition, since the contract with Samsung Corning Precision Materials was effectively settled, Corning recognized a loss of $320 million. Of the $320 million, $184 million effectively offset the portion of the gain on previously held equity investment attributable to Corning’s interest in the royalty contract. As a result, the pre-acquisition fair value of Corning’s 57.5% share of $2.3 billion decreased to the fair value of $2.1 billion post-acquisition; and
|
·
|
At acquisition, since the seller, Samsung Display, was a 42.5% shareholder of Samsung Corning Precision Materials, 42.5%, or $136 million, of the $320 million loss to effectively settle the contract reduced the consideration transferred to acquire Samsung Display’s interest in Samsung Corning Precision Materials. Accordingly, $136 million of the consideration transferred was treated separately from the purchase price, resulting in the implied consideration transferred of approximately $1.6 billion.
|
December 2013 Investment Balance
|
$
|
3,709
|
Dividend (1)
|
(1,574)
|
|
Other
|
(18)
|
|
Net investment book balance at 1/15/2014
|
$
|
2,117
|
Fair value Samsung Corning Precision Materials
|
$
|
4,038
|
57.5% of Samsung Corning Precision Materials (2)
|
2,323
|
|
Working capital adjustment and other
|
52
|
|
57.5% of the pre-acquisition fair value of assets
|
$
|
2,375
|
Gain on previously held equity investment (2)
|
$
|
258
|
Translation gain
|
136
|
|
Net gain
|
$
|
394
|
(1)
|
In conjunction with the Framework Agreement, the parties agreed to have Samsung Corning Precision Materials distribute all cash and cash equivalents as a dividend to the shareholders of record as of December 31, 2013. The dividend was not part of the purchase price as the agreement was to distribute cash and cash equivalents as a dividend to the shareholders as soon as practicable. As such, at acquisition Corning did not have legal title to the cash to be distributed, although the dividend was distributed subsequent to the acquisition date. Therefore, the portion of Corning’s share of the $1.6 billion dividend received was accounted for in Corning’s consolidated financial statements as if the dividend occurred at or immediately prior to the date of acquisition at which time Samsung Corning Precision Materials was still an equity method investment in Corning’s consolidated financial statements.
|
(2)
|
As Corning was a 57.5% shareholder at the date of acquisition, immediately preceding the acquisition of Samsung Corning Precision Materials, Corning recognized an asset and respective gain as part of the calculation of its previously held equity investment which included approximately $184 million attributed to its economic interest in the royalty contract.
|
Cash and cash equivalents (1)
|
$
|
133
|
Trade receivables (3)
|
357
|
|
Inventory (3)
|
105
|
|
Property, plant and equipment (3)
|
3,595
|
|
Other current and non-current assets (3)
|
71
|
|
Debt – current
|
(32)
|
|
Accounts payable and accrued expenses (3)
|
(357)
|
|
Other current and non-current liabilities (3)
|
(294)
|
|
Total identified net assets (3)
|
3,578
|
|
Non-controlling interests
|
15
|
|
Fair value of Samsung Corning Precision Materials on acquisition date
|
(3,718)
|
|
Goodwill (2)(3)
|
$
|
125
|
(1)
|
Cash and cash equivalents are presented net of the 2014 dividend distributed subsequent to the acquisition of Samsung Corning Precision Materials, in the amount of $2.8 billion.
|
(2)
|
The goodwill recognized is not deductible for U.S. income tax purposes. The goodwill was allocated to the Display Technologies segment.
|
(3)
|
During 2014, the Company recorded total measurement period adjustments of $60 million for the acquisition of Corning Precision Materials primarily related to accrual of contingent liabilities and employee benefit obligations.
|
Twelve months
ended
December 31,
2013
|
||
Net sales
|
$
|
9,871
|
Net income attributable to Corning Incorporated – basic earnings per share
|
$
|
2,327
|
Net income attributable to Corning Incorporated – diluted earnings per share
|
$
|
2,425
|
Earnings per common share attributable to common shareholders
|
||
Basic
|
$
|
1.60
|
Diluted
|
$
|
1.54
|
Shares used in computing per share amounts
|
||
Basic
|
1,452
|
|
Diluted
|
1,577
|
December 31,
|
|||||
2015
|
2014
|
||||
Land
|
$
|
438
|
$
|
458
|
|
Buildings
|
5,504
|
5,470
|
|||
Equipment
|
14,688
|
13,848
|
|||
Construction in progress
|
1,206
|
1,322
|
|||
21,836
|
21,098
|
||||
Accumulated depreciation
|
(9,188)
|
(8,332)
|
|||
Total
|
$
|
12,648
|
$
|
12,766
|
Optical
Communications
|
Display
Technologies
|
Specialty
Materials
|
Life
Sciences
|
All
Other
|
Total
|
||||||||||||
Balance at December 31, 2013
|
$
|
240
|
$
|
9
|
$
|
150
|
$
|
603
|
$
|
1,002
|
|||||||
Acquired goodwill (1)
|
68
|
54
|
122
|
||||||||||||||
Measurement period adjustment (2)
|
60
|
60
|
|||||||||||||||
Foreign currency translation adjustment
|
(2)
|
(3)
|
(6)
|
(23)
|
(34)
|
||||||||||||
Balance at December 31, 2014
|
$
|
238
|
$
|
134
|
$
|
198
|
$
|
580
|
$
|
1,150
|
|||||||
Acquired goodwill (3)
|
220
|
$
|
87
|
307
|
|||||||||||||
Measurement period adjustment
|
(7)
|
(7)
|
|||||||||||||||
Foreign currency translation adjustment
|
(12)
|
(6)
|
(4)
|
(18)
|
(1)
|
(41)
|
|||||||||||
Other (4)
|
(44)
|
15
|
(29)
|
||||||||||||||
Balance at December 31, 2015
|
$
|
439
|
$
|
128
|
$
|
150
|
$
|
562
|
$
|
101
|
$
|
1,380
|
(1)
|
The Company recorded the acquisition of Samsung Corning Precision Materials and a small acquisition in the Specialty Materials segment in the first quarter of 2014. Refer to Note 8 (Acquisitions) to the Consolidated Financial Statements for additional information on the acquisition of Samsung Corning Precision Materials.
|
(2)
|
In the year ended December 31, 2014, the Company recorded measurement period adjustments of $60 million for the acquisition of Samsung Corning Precision Materials primarily related to the accrual of contingent liabilities and employee benefit obligations.
|
(3)
|
The Company completed four acquisitions in the Optical Communications segment during the first quarter of 2015 and one acquisition that is being reported in All Other in the fourth quarter of 2015. Refer to Note 8 (Acquisitions) to the Consolidated Financial Statements for additional information on these acquisitions.
|
(4)
|
In the fourth quarter of 2015, Corning made a change to the internal reporting structure related to a small acquisition in 2014 originally recorded in the Specialty Materials segment, which is now being reported in All Other. Additionally, a charge of $29 million for the impairment of goodwill related to this acquisition was recorded in the fourth quarter.
|
December 31,
|
|||||||||||||||||
2015
|
2014
|
||||||||||||||||
Gross
|
Accumulated
amortization
|
Net
|
Gross
|
Accumulated
amortization
|
Net
|
||||||||||||
Amortized intangible assets:
|
|||||||||||||||||
Patents, trademarks & trade names
|
$
|
350
|
$
|
162
|
$
|
188
|
$
|
302
|
$
|
149
|
$
|
153
|
|||||
Customer list and other
|
621
|
103
|
518
|
411
|
67
|
344
|
|||||||||||
Total
|
$
|
971
|
$
|
265
|
$
|
706
|
$
|
713
|
$
|
216
|
$
|
497
|
December 31,
|
|||||
2015
|
2014
|
||||
Current assets:
|
|||||
Derivative instruments
|
$
|
522
|
$
|
687
|
|
Other current assets
|
390
|
412
|
|||
Other current assets
|
$
|
912
|
$
|
1,099
|
|
Non-current assets:
|
|||||
Derivative instruments
|
$
|
473
|
$
|
847
|
|
Contingent consideration asset
|
246
|
445
|
|||
Other non-current assets
|
794
|
430
|
|||
Other assets
|
$
|
1,513
|
$
|
1,722
|
December 31,
|
|||||
2015
|
2014
|
||||
Current liabilities:
|
|||||
Wages and employee benefits
|
$
|
491
|
$
|
562
|
|
Income taxes
|
53
|
106
|
|||
Asbestos litigation
|
238
|
||||
Other current liabilities
|
526
|
623
|
|||
Other accrued liabilities
|
$
|
1,308
|
$
|
1,291
|
|
Non-current liabilities:
|
|||||
Asbestos litigation
|
$
|
440
|
$
|
681
|
|
Other non-current liabilities
|
1,802
|
1,365
|
|||
Other liabilities
|
$
|
2,242
|
$
|
2,046
|
12.
|
December 31,
|
|||||
2015
|
2014
|
||||
Current portion of long-term debt and short-term borrowings
|
|||||
Current portion of long-term debt
|
$
|
91
|
$
|
36
|
|
Commercial paper
|
481
|
||||
Total current portion of long-term debt and short-term borrowings
|
$
|
572
|
$
|
36
|
|
Long-term debt
|
|||||
Debentures, 8.875%, due 2016
|
$
|
64
|
$
|
66
|
|
Debentures, 1.45%, due 2017
|
250
|
250
|
|||
Debentures, 1.5%, due 2018
|
375
|
||||
Debentures, 6.625%, due 2019
|
246
|
243
|
|||
Debentures, 4.25%, due 2020
|
291
|
287
|
|||
Debentures, 8.875%, due 2021
|
68
|
69
|
|||
Debentures, 2.9%, due 2022
|
374
|
||||
Debentures, 3.70%, due 2023
|
249
|
249
|
|||
Medium-term notes, average rate 7.66%, due through 2023
|
45
|
45
|
|||
Debentures, 7.00%, due 2024
|
99
|
99
|
|||
Debentures, 6.85%, due 2029
|
169
|
170
|
|||
Debentures, callable, 7.25%, due 2036
|
249
|
249
|
|||
Debentures, 4.70%, due 2037
|
250
|
250
|
|||
Debentures, 5.75%, due 2040
|
398
|
398
|
|||
Debentures, 4.75%, due 2042
|
499
|
499
|
|||
Other, average rate 5.02%, due through 2042
|
375
|
389
|
|||
Total long-term debt
|
4,001
|
3,263
|
|||
Less current portion of long-term debt
|
91
|
36
|
|||
Long-term debt
|
$
|
3,910
|
$
|
3,227
|
2016
|
2017
|
2018
|
2019
|
2020
|
Thereafter
|
||||||
$572
|
$257
|
$378
|
$253
|
$304
|
$2,713
|
*
|
Excludes interest rate swap gains and bond discounts.
|
·
|
In the second quarter of 2015, we issued $375 million of 1.50% senior unsecured notes that mature on May 8, 2018 and $375 million of 2.90% senior unsecured notes that mature on May 15, 2022. The net proceeds of $745 million will be used for general corporate purposes. We can redeem these notes at any time, subject to certain customary terms and conditions.
|
12.
|
Debt (continued)
|
·
|
In the third quarter of 2014, we amended and restated our existing revolving credit facility. The amended facility provides a $2 billion unsecured multi-currency line of credit and expires on September 30, 2019. At December 31, 2015, there were no outstanding amounts on this credit facility. The facility includes affirmative and negative covenants that Corning must comply with, including a leverage (debt to capital ratio) financial covenant. As of December 31, 2015, we were in compliance with all of the covenants.
|
·
|
In the first quarter of 2013, we amended and restated our then-existing revolving credit facility. The 2013 amended facility provided a $1 billion unsecured multi-currency line of credit that would have expired in March 2018. This facility was amended and restated by the $2 billion facility entered into in the third quarter of 2014.
|
·
|
In the first quarter of 2013, Corning repaid the aggregate principal amount and accrued interest outstanding on the credit facility entered into in the second quarter of 2011 that allowed Corning to borrow up to Chinese renminbi (RMB) 4 billion. The total amount repaid was approximately $500 million. Upon repayment, this facility was terminated.
|
·
|
In the second quarter of 2013, the Company established a commercial paper program on a private placement basis, pursuant to which we may issue short-term, unsecured commercial paper notes up to a maximum aggregate principal amount outstanding at any time of $1 billion. Under this program, the Company may issue the notes from time to time and will use the proceeds for general corporate purposes. The maturities of the notes will vary, but may not exceed 390 days from the date of issue. The interest rates will vary based on market conditions and the ratings assigned to the notes by credit rating agencies at the time of issuance. The Company’s revolving credit facility is available to support obligations under the commercial paper program, if needed.
|
·
|
In the fourth quarter of 2013, we issued $250 million of 3.70% senior unsecured notes that mature on November 15, 2023. The net proceeds of approximately $248 million were used for general corporate purposes.
|
·
|
In the fourth quarter of 2013, we recorded a financing obligation in the approximate amount of $230 million for a new LCD glass substrate facility in China.
|
Total
pension benefits
|
Domestic
pension benefits
|
International
pension benefits
|
|||||||||||||||
December 31,
|
2015
|
2014
|
2015
|
2014
|
2015
|
2014
|
|||||||||||
Change in benefit obligation
|
|||||||||||||||||
Benefit obligation at beginning of year
|
$
|
3,809
|
$
|
3,300
|
$
|
3,222
|
$
|
2,844
|
$
|
587
|
$
|
456
|
|||||
Service cost
|
90
|
82
|
64
|
55
|
26
|
27
|
|||||||||||
Interest cost
|
144
|
160
|
126
|
137
|
18
|
23
|
|||||||||||
Plan participants’ contributions
|
1
|
1
|
1
|
1
|
|||||||||||||
Acquisitions
|
103
|
103
|
|||||||||||||||
Amendments
|
25
|
25
|
|||||||||||||||
Actuarial (gain) loss
|
(95)
|
394
|
(87)
|
327
|
(8)
|
67
|
|||||||||||
Other
|
(8)
|
(3)
|
(8)
|
(3)
|
|||||||||||||
Benefits paid
|
(188)
|
(207)
|
(165)
|
(167)
|
(23)
|
(40)
|
|||||||||||
Foreign currency translation
|
(38)
|
(46)
|
(38)
|
(46)
|
|||||||||||||
Benefit obligation at end of year
|
$
|
3,715
|
$
|
3,809
|
$
|
3,161
|
$
|
3,222
|
$
|
554
|
$
|
587
|
|||||
Change in plan assets
|
|||||||||||||||||
Fair value of plan assets at beginning of year
|
$
|
3,263
|
$
|
2,896
|
$
|
2,814
|
$
|
2,596
|
$
|
449
|
$
|
300
|
|||||
Actual (loss) gain on plan assets
|
(108)
|
355
|
(111)
|
287
|
3
|
68
|
|||||||||||
Employer contributions
|
116
|
147
|
77
|
97
|
39
|
50
|
|||||||||||
Plan participants’ contributions
|
1
|
1
|
1
|
1
|
|||||||||||||
Acquisitions
|
97
|
97
|
|||||||||||||||
Benefits paid
|
(188)
|
(207)
|
(165)
|
(167)
|
(23)
|
(40)
|
|||||||||||
Foreign currency translation
|
(26)
|
(26)
|
(26)
|
(26)
|
|||||||||||||
Fair value of plan assets at end of year
|
$
|
3,058
|
$
|
3,263
|
$
|
2,616
|
$
|
2,814
|
$
|
442
|
$
|
449
|
|||||
Funded status at end of year
|
|||||||||||||||||
Fair value of plan assets
|
$
|
3,058
|
$
|
3,263
|
$
|
2,616
|
$
|
2,814
|
$
|
442
|
$
|
449
|
|||||
Benefit obligations
|
(3,715)
|
(3,809)
|
(3,161)
|
(3,222)
|
(554)
|
(587)
|
|||||||||||
Funded status of plans
|
$
|
(657)
|
$
|
(546)
|
$
|
(545)
|
$
|
(408)
|
$
|
(112)
|
$
|
(138)
|
|||||
Amounts recognized in the consolidated balance sheets consist of:
|
|||||||||||||||||
Noncurrent asset
|
$
|
50
|
$
|
47
|
$
|
50
|
$
|
47
|
|||||||||
Current liability
|
(35)
|
(41)
|
$
|
(30)
|
$
|
(30)
|
(5)
|
(11)
|
|||||||||
Noncurrent liability
|
(672)
|
(552)
|
(515)
|
(378)
|
(157)
|
(174)
|
|||||||||||
Recognized liability
|
$
|
(657)
|
$
|
(546)
|
$
|
(545)
|
$
|
(408)
|
$
|
(112)
|
$
|
(138)
|
|||||
Amounts recognized in accumulated other comprehensive income consist of:
|
|||||||||||||||||
Net actuarial loss
|
$
|
332
|
$
|
308
|
$
|
305
|
$
|
278
|
$
|
27
|
$
|
30
|
|||||
Prior service cost (credit)
|
35
|
41
|
37
|
44
|
(2)
|
(3)
|
|||||||||||
Amount recognized at end of year
|
$
|
367
|
$
|
349
|
$
|
342
|
$
|
322
|
$
|
25
|
$
|
27
|
Postretirement benefits
|
|||||
December 31,
|
2015
|
2014
|
|||
Change in benefit obligation
|
|||||
Benefit obligation at beginning of year
|
$
|
862
|
$
|
815
|
|
Service cost
|
13
|
11
|
|||
Interest cost
|
33
|
38
|
|||
Plan participants’ contributions
|
7
|
7
|
|||
Amendments
|
(5)
|
||||
Actuarial (gain) loss
|
(97)
|
49
|
|||
Other
|
4
|
||||
Benefits paid
|
(61)
|
(56)
|
|||
Medicare subsidy received
|
2
|
3
|
|||
Foreign currency translation
|
|||||
Benefit obligation at end of year
|
$
|
763
|
$
|
862
|
|
Funded status at end of year
|
|||||
Fair value of plan assets
|
$
|
0
|
$
|
0
|
|
Benefit obligations
|
(763)
|
(862)
|
|||
Funded status of plans
|
$
|
(763)
|
$
|
(862)
|
|
Amounts recognized in the consolidated balance sheets consist of:
|
|||||
Current liability
|
$
|
(45)
|
$
|
(48)
|
|
Noncurrent liability
|
(718)
|
(814)
|
|||
Recognized liability
|
$
|
(763)
|
$
|
(862)
|
|
Amounts recognized in accumulated other comprehensive income consist of:
|
|||||
Net actuarial loss
|
$
|
33
|
$
|
132
|
|
Prior service credit
|
(19)
|
(27)
|
|||
Amount recognized at end of year
|
$
|
14
|
$
|
105
|
December 31,
|
|||||
2015
|
2014
|
||||
Projected benefit obligation
|
$
|
3,341
|
$
|
3,425
|
|
Fair value of plan assets
|
$
|
2,635
|
$
|
2,831
|
December 31,
|
|||||
2015
|
2014
|
||||
Accumulated benefit obligation
|
$
|
3,159
|
$
|
479
|
|
Fair value of plan assets
|
$
|
2,634
|
$
|
17
|
Total pension benefits
|
Domestic pension benefits
|
International pension benefits
|
|||||||||||||||
December 31,
|
2015
|
2014
|
2013
|
2015
|
2014
|
2013
|
2015
|
2014
|
2013
|
||||||||
Service cost
|
$ 90
|
$ 82
|
$ 70
|
$ 64
|
$ 55
|
$ 60
|
$26
|
$ 27
|
$10
|
||||||||
Interest cost
|
144
|
160
|
131
|
126
|
137
|
115
|
18
|
23
|
16
|
||||||||
Expected return on plan assets
|
(178)
|
(174)
|
(169)
|
(166)
|
(159)
|
(158)
|
(12)
|
(15)
|
(11)
|
||||||||
Amortization of prior service cost (credit)
|
6
|
6
|
5
|
7
|
7
|
6
|
(1)
|
(1)
|
(1)
|
||||||||
Recognition of actuarial loss (gain)
|
165
|
29
|
(30)
|
162
|
4
|
(41)
|
3
|
25
|
11
|
||||||||
Total net periodic benefit expense
|
$227
|
$103
|
$ 7
|
$193
|
$ 44
|
$ (18)
|
$34
|
$ 59
|
$25
|
||||||||
Other changes in plan assets and benefit obligations recognized in other comprehensive income:
|
|||||||||||||||||
Curtailment effects
|
$ (3)
|
$ (3)
|
|||||||||||||||
Settlements
|
$ (1)
|
(2)
|
$(1)
|
(2)
|
|||||||||||||
Current year actuarial loss (gain)
|
191
|
212
|
$(264)
|
$189
|
$198
|
$(274)
|
2
|
14
|
$10
|
||||||||
Recognition of actuarial (loss) gain
|
(165)
|
(29)
|
30
|
(162)
|
(4)
|
41
|
(3)
|
(25)
|
(11)
|
||||||||
Current year prior service cost
|
25
|
25
|
|||||||||||||||
Amortization of prior service (cost) credit
|
(6)
|
(6)
|
(5)
|
(7)
|
(7)
|
(6)
|
1
|
1
|
1
|
||||||||
Total recognized in other comprehensive (income) loss
|
$ 19
|
$197
|
$(239)
|
$ 20
|
$212
|
$(239)
|
$(1)
|
$(15)
|
$ 0
|
||||||||
Total recognized in net periodic benefit cost and other comprehensive (income) loss
|
$246
|
$300
|
$(232)
|
$213
|
$256
|
$(257)
|
$33
|
$ 44
|
$25
|
Postretirement benefits
|
||||||||
2015
|
2014
|
2013
|
||||||
Service cost
|
$
|
13
|
$
|
11
|
$
|
13
|
||
Interest cost
|
33
|
38
|
39
|
|||||
Amortization of net loss
|
3
|
15
|
||||||
Amortization of prior service credit
|
(7)
|
(6)
|
(6)
|
|||||
Total net periodic benefit expense
|
$
|
42
|
$
|
43
|
$
|
61
|
||
Other changes in plan assets and benefit obligations recognized in other comprehensive income:
|
||||||||
Current year actuarial (gain) loss
|
$
|
(96)
|
$
|
49
|
$
|
(178)
|
||
Amortization of actuarial loss
|
(3)
|
(15)
|
||||||
Current year prior service credit
|
(5)
|
(5)
|
||||||
Amortization of prior service credit
|
7
|
6
|
6
|
|||||
Total recognized in other comprehensive (income) loss
|
$
|
(92)
|
$
|
50
|
$
|
(192)
|
||
Total recognized in net periodic benefit cost and other comprehensive (income) loss
|
$
|
(50)
|
$
|
93
|
$
|
(131)
|
Pension benefits
|
|||||||||||||||||
Domestic
|
International
|
Postretirement benefits
|
|||||||||||||||
2015
|
2014
|
2013
|
2015
|
2014
|
2013
|
2015
|
2014
|
2013
|
|||||||||
Discount rate
|
4.24%
|
4.00%
|
4.75%
|
3.23%
|
3.21%
|
4.08%
|
4.31%
|
4.00%
|
4.75%
|
||||||||
Rate of compensation increase
|
3.50%
|
3.50%
|
4.00%
|
3.92%
|
3.88%
|
3.85%
|
Pension benefits
|
|||||||||||||||||
Domestic
|
International
|
Postretirement benefits
|
|||||||||||||||
2015
|
2014
|
2013
|
2015
|
2014
|
2013
|
2015
|
2014
|
2013
|
|||||||||
Discount rate
|
4.00%
|
4.75%
|
3.75%
|
3.21%
|
4.08%
|
4.48%
|
4.00%
|
4.75%
|
4.00%
|
||||||||
Expected return on plan assets
|
6.00%
|
6.25%
|
6.00%
|
2.97%
|
4.12%
|
3.73%
|
|||||||||||
Rate of compensation increase
|
3.50%
|
4.00%
|
4.00%
|
3.88%
|
3.85%
|
3.45%
|
Assumed health care trend rates at December 31
|
2015
|
2014
|
|
Health care cost trend rate assumed for next year
|
7%
|
6.67%
|
|
Rate that the cost trend rate gradually declines to
|
5%
|
5%
|
|
Year that the rate reaches the ultimate trend rate
|
2024
|
2020
|
One-percentage-point
increase
|
One-percentage-point
decrease
|
||
Effect on annual total of service and interest cost
|
$ 4
|
$ (3)
|
|
Effect on postretirement benefit obligation
|
$52
|
$(43)
|
Fair value measurements at reporting date using
|
|||||||||||
(in millions)
|
December 31,
2015
|
Quoted prices in
active markets
for identical
assets (Level 1)
|
Significant
other
observable
inputs (Level 2)
|
Significant
unobservable
inputs
(Level 3)
|
|||||||
Equity securities:
|
|||||||||||
U.S. companies
|
$
|
336
|
$
|
51
|
$
|
285
|
|||||
International companies
|
322
|
79
|
243
|
||||||||
Fixed income:
|
|||||||||||
U.S. corporate bonds
|
1,566
|
158
|
1,408
|
||||||||
Private equity (1)
|
163
|
$
|
163
|
||||||||
Real estate (2)
|
61
|
61
|
|||||||||
Cash equivalents
|
71
|
71
|
|||||||||
Commodities (3)
|
97
|
97
|
|||||||||
Total
|
$
|
2,616
|
$
|
359
|
$
|
2,033
|
$
|
224
|
(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.
|
Fair value measurements at reporting date using
|
|||||||||||
(in millions)
|
December 31,
2014
|
Quoted prices in
active markets
for identical
assets (Level 1)
|
Significant
other
observable
inputs (Level 2)
|
Significant
unobservable
inputs
(Level 3)
|
|||||||
Equity securities:
|
|||||||||||
U.S. companies
|
$
|
310
|
$
|
49
|
$
|
261
|
|||||
International companies
|
327
|
78
|
249
|
||||||||
Fixed income:
|
|||||||||||
U.S. corporate bonds
|
1,720
|
166
|
1,554
|
||||||||
Private equity (1)
|
192
|
$
|
192
|
||||||||
Real estate (2)
|
84
|
84
|
|||||||||
Cash equivalents
|
80
|
80
|
|||||||||
Commodities (3)
|
101
|
101
|
|||||||||
Total
|
$
|
2,814
|
$
|
373
|
$
|
2,165
|
$
|
276
|
(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.
|
Fair value measurements at reporting date using
|
|||||||||||
(in millions)
|
December 31,
2015
|
Quoted prices in
active markets
for identical
assets (Level 1)
|
Significant
other
observable
inputs (Level 2)
|
Significant
unobservable
inputs
(Level 3)
|
|||||||
Equity securities:
|
|||||||||||
U.S. companies
|
$
|
7
|
$
|
7
|
|||||||
International companies
|
23
|
23
|
|||||||||
Fixed income:
|
|||||||||||
International fixed income
|
347
|
$
|
286
|
61
|
|||||||
Insurance contracts
|
3
|
$
|
3
|
||||||||
Mortgages
|
2
|
2
|
|||||||||
Cash equivalents
|
60
|
60
|
|||||||||
Total
|
$
|
442
|
$
|
346
|
$
|
91
|
$
|
5
|
Fair value measurements at reporting date using
|
|||||||||||
(in millions)
|
December 31,
2014
|
Quoted prices in
active markets
for identical
assets (Level 1)
|
Significant
other
observable
inputs (Level 2)
|
Significant
unobservable
inputs
(Level 3)
|
|||||||
Equity securities:
|
|||||||||||
U.S. companies
|
$
|
6
|
$
|
6
|
|||||||
International companies
|
22
|
22
|
|||||||||
Fixed income:
|
|||||||||||
International fixed income
|
361
|
$
|
293
|
68
|
|||||||
Insurance contracts
|
5
|
$
|
5
|
||||||||
Mortgages
|
7
|
7
|
|||||||||
Cash equivalents
|
48
|
48
|
|||||||||
Total
|
$
|
449
|
$
|
341
|
$
|
96
|
$
|
12
|
Level 3 assets – Domestic
|
Level 3 assets – International
|
||||||||||
|
Year ended December 2015
|
Year ended December 2015
|
|||||||||
(in millions)
|
Private
equity
|
Real
estate
|
Mortgages
|
Insurance
contracts
|
|||||||
Beginning balance at December 31, 2014
|
$
|
192
|
$
|
84
|
$
|
7
|
$
|
5
|
|||
Actual return on plan assets relating to assets still held at the reporting date
|
16
|
12
|
|||||||||
Transfers in and/or out of level 3
|
(45)
|
(35)
|
(5)
|
(2)
|
|||||||
Ending balance at December 31, 2015
|
$
|
163
|
$
|
61
|
$
|
2
|
$
|
3
|
Level 3 assets – Domestic
|
Level 3 assets – International
|
||||||||||
|
Year ended December 2014
|
Year ended December 2014
|
|||||||||
(in millions)
|
Private
equity
|
Real
estate
|
Mortgages
|
Insurance
contracts
|
|||||||
Beginning balance at December 31, 2013
|
$
|
207
|
$
|
93
|
$
|
0
|
$
|
6
|
|||
Actual return on plan assets relating to assets still held at the reporting date
|
31
|
8
|
1
|
||||||||
Transfers in and/or out of level 3
|
(46)
|
(17)
|
7
|
(2)
|
|||||||
Ending balance at December 31, 2014
|
$
|
192
|
$
|
84
|
$
|
7
|
$
|
5
|
Expected benefit payments
|
||||||
Domestic
pension
benefits
|
International
pension
benefits
|
Postretirement
benefits
|
Expected federal subsidy payments
postretirement benefits
|
|||
2016
|
$ 192
|
$ 18
|
$ 45
|
$ 2
|
||
2017
|
$ 178
|
$ 22
|
$ 44
|
$ 3
|
||
2018
|
$ 186
|
$ 24
|
$ 44
|
$ 3
|
||
2019
|
$ 192
|
$ 25
|
$ 44
|
$ 3
|
||
2020
|
$ 198
|
$ 29
|
$ 46
|
$ 3
|
||
2021-2025
|
$1,100
|
$168
|
$230
|
$16
|
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
|
$
|
92
|
$
|
25
|
$
|
6
|
$
|
1
|
$
|
60
|
||||
Stand-by letters of credit (1)
|
47
|
44
|
3
|
|||||||||||
Credit facility to equity company
|
31
|
27
|
4
|
|||||||||||
Loan guarantees
|
14
|
14
|
||||||||||||
Subtotal of commitment expirations per period
|
$
|
184
|
$
|
96
|
$
|
6
|
$
|
1
|
$
|
81
|
||||
Purchase obligations (6)
|
$
|
220
|
$
|
106
|
$
|
77
|
$
|
33
|
$
|
4
|
||||
Capital expenditure obligations (2)
|
298
|
298
|
||||||||||||
Total debt (3)
|
4,122
|
565
|
625
|
550
|
2,382
|
|||||||||
Interest on long-term debt (4)
|
2,385
|
165
|
316
|
280
|
1,624
|
|||||||||
Capital leases and financing obligations (3)
|
355
|
7
|
10
|
7
|
331
|
|||||||||
Imputed interest on capital leases and financing obligations
|
240
|
19
|
37
|
36
|
148
|
|||||||||
Minimum rental commitments
|
573
|
49
|
110
|
77
|
337
|
|||||||||
Uncertain tax positions (5)
|
58
|
|||||||||||||
Subtotal of contractual obligation payments due by period (5)
|
$
|
8,251
|
$
|
1,209
|
$
|
1,175
|
$
|
983
|
$
|
4,826
|
||||
Total commitments and contingencies (5)
|
$
|
8,435
|
$
|
1,305
|
$
|
1,181
|
$
|
984
|
$
|
4,907
|
(1)
|
At December 31, 2015, $38 million of the $47 million was included in other accrued liabilities on our consolidated balance sheets.
|
(2)
|
Capital expenditure obligations primarily reflect amounts associated with our capital expansion activities.
|
(3)
|
Total debt above is stated at maturity value, and excludes interest rate swap gains/losses and bond discounts.
|
(4)
|
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.
|
(5)
|
At December 31, 2015, $58 million was included on our balance sheet related to uncertain tax positions. Of this amount, we are unable to estimate when any of that amount will become payable.
|
(6)
|
Purchase obligations are enforceable and legally binding obligations which primarily consist of raw material and energy-related take-or-pay contracts.
|
2016
|
2017
|
2018
|
2019
|
2020
|
2021 and
thereafter
|
||||||
$49
|
$58
|
$52
|
$41
|
$36
|
$337
|
·
|
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.
|
Asset derivatives
|
Liability derivatives
|
||||||||||||||||||||
Notional amount
|
Balance sheet location
|
Fair value
|
Balance sheet location
|
Fair value
|
|||||||||||||||||
2015
|
2014
|
2015
|
2014
|
2015
|
2014
|
||||||||||||||||
Derivatives designated as hedging instruments
|
|||||||||||||||||||||
Foreign exchange contracts
|
$
|
782
|
$
|
487
|
Other current assets
|
$
|
5
|
$
|
22
|
Other accrued liabilities
|
$
|
(10)
|
$
|
(6)
|
|||||||
Other assets
|
1
|
Other liabilities
|
(23)
|
||||||||||||||||||
Interest rate contracts
|
550
|
1,300
|
Other assets
|
1
|
Other liabilities
|
(4)
|
(15)
|
||||||||||||||
Derivatives not designated as hedging instruments
|
|||||||||||||||||||||
Foreign exchange contracts, other
|
1,095
|
1,285
|
Other current assets
|
6
|
17
|
Other accrued liabilities
|
(12)
|
(5)
|
|||||||||||||
Foreign currency hedges related to translated earnings
|
11,972
|
12,126
|
Other current assets
|
511
|
649
|
Other accrued liabilities
|
(33)
|
(33)
|
|||||||||||||
Other assets
|
472
|
846
|
Other liabilities
|
(61)
|
|||||||||||||||||
Total derivatives
|
$
|
14,399
|
$
|
15,198
|
$
|
995
|
$
|
1,535
|
$
|
(143)
|
$
|
(59)
|
Effect of derivative instruments on the consolidated financial statements for the years ended December 31
|
|||||||||||||||||||
Derivatives
in hedging
relationships
|
(Loss)/gain recognized in other
comprehensive income (OCI)
|
Location of gain/(loss) reclassified from
accumulated OCI into income
effective/ineffective
|
Gain/(loss) reclassified from
accumulated OCI into income
ineffective/effective (1)
|
||||||||||||||||
2015
|
2014
|
2013
|
2015
|
2014
|
2013
|
||||||||||||||
Cash flow hedges
|
|||||||||||||||||||
-
|
Net sales
|
$
|
20
|
$
|
3
|
||||||||||||||
Interest rate hedge
|
$
|
(7)
|
$
|
(3)
|
$
|
33
|
Cost of sales
|
6
|
7
|
$
|
38
|
||||||||
Foreign exchange contracts
|
(17)
|
20
|
56
|
Other (expense) income, net
|
91
|
||||||||||||||
Total cash flow hedges
|
$
|
(24)
|
$
|
17
|
$
|
89
|
$
|
26
|
$
|
10
|
$
|
129
|
Gain (loss) recognized in income
|
|||||||||||
Undesignated
derivatives
|
Location of gain/(loss)
recognized in income
|
2015
|
2014
|
2013
|
|||||||
Foreign exchange contracts – balance sheet
|
Foreign currency hedge gain (loss), net
|
$
|
8
|
$
|
29
|
$
|
100
|
||||
Foreign exchange contracts – loans
|
Foreign currency hedge (loss) gain, net
|
(3)
|
13
|
87
|
|||||||
Foreign currency hedges related to translated earnings
|
Foreign currency hedge gain (loss), net
|
80
|
1,369
|
435
|
|||||||
Total undesignated
|
$
|
85
|
$
|
1,411
|
$
|
622
|
(1)
|
There were no material amounts of ineffectiveness for 2015 and 2014 and the amount of hedge ineffectiveness for the year ended December 31, 2013 was $24 million related to interest rate swaps settled in the fourth quarter.
|
Fair value measurements at reporting date using
|
|||||||
(in millions)
|
December 31,
2015
|
Quoted prices in
active markets for
identical assets
(Level 1)
|
Significant other
observable
inputs
(Level 2)
|
Significant
unobservable
inputs
(Level 3)
|
|||
Current assets:
|
|||||||
Short-term investments
|
$100
|
$100
|
|||||
Other current assets (1)
|
$522
|
$522
|
|||||
Non-current assets:
|
|||||||
Other assets (1)(2)
|
$752
|
$506
|
$246
|
||||
Current liabilities:
|
|||||||
Other accrued liabilities (1)
|
$ 55
|
$ 55
|
|||||
Non-current liabilities:
|
|||||||
Other liabilities (1)(2)
|
$ 98
|
$ 88
|
$ 10
|
(1)
|
Derivative assets and liabilities include foreign exchange contracts which are measured using observable quoted prices for similar assets and liabilities.
|
(2)
|
Other assets include asset-backed securities which are measured using observable quoted prices for similar assets and contingent consideration assets or liabilities which are measured by applying an option pricing model using projected future revenues.
|
Fair value measurements at reporting date using
|
|||||||
(in millions)
|
December 31,
2014
|
Quoted prices in
active markets for
identical assets
(Level 1)
|
Significant other
observable
inputs
(Level 2)
|
Significant
unobservable
inputs
(Level 3)
|
|||
Current assets:
|
|||||||
Short-term investments
|
$ 759
|
$759
|
|||||
Other current assets (1)
|
$ 687
|
$687
|
|||||
Non-current assets:
|
|||||||
Other assets (1)(2)
|
$1,330
|
$885
|
$445
|
||||
Current liabilities:
|
|||||||
Other accrued liabilities (1)
|
$ 44
|
$ 44
|
|||||
Non-current liabilities:
|
|||||||
Other liabilities (1)
|
$ 15
|
$ 15
|
(1)
|
Derivative assets and liabilities include foreign exchange contracts which are measured using observable quoted prices for similar assets and liabilities.
|
(2)
|
Other assets include asset-backed securities which are measured using observable quoted prices for similar assets and a contingent consideration asset which was measured by applying an option pricing model using projected future Corning Precision Materials’ revenue.
|
Level 3 Roll-Forward – Other Assets
|
||||
(in millions)
|
2015
|
2014
|
||
Beginning balance
|
$445
|
$196
|
||
Unrealized gains (loss)
|
13
|
249
|
||
Transfer in (out) of level 3
|
(212)
|
|||
Ending balance
|
$246
|
$445
|
Common stock
|
Treasury stock
|
||||||||
Shares
|
Par value
|
Shares
|
Cost
|
||||||
Balance at December 31, 2012
|
1,649
|
$
|
825
|
(179)
|
$
|
(2,773)
|
|||
Shares issued to benefit plans and for option exercises
|
12
|
6
|
(1)
|
||||||
Shares purchased for treasury
|
(82)
|
(1,316)
|
|||||||
Other, net
|
(1)
|
(9)
|
|||||||
Balance at December 31, 2013
|
1,661
|
$
|
831
|
(262)
|
$
|
(4,099)
|
|||
Shares issued to benefit plans and for option exercises
|
11
|
5
|
(2)
|
||||||
Shares purchased for treasury
|
(135)
|
(2,612)
|
|||||||
Other, net
|
(1)
|
(14)
|
|||||||
Balance at December 31, 2014 (1)
|
1,672
|
$
|
836
|
(398)
|
$
|
(6,727)
|
|||
Shares issued to benefit plans and for option exercises
|
9
|
4
|
(1)
|
||||||
Shares purchased for treasury
|
(151)
|
(2,978)
|
|||||||
Other, net
|
(2)
|
(19)
|
|||||||
Balance at December 31, 2015
|
1,681
|
$
|
840
|
(551)
|
$
|
(9,725)
|
(1)
|
On January 15, 2014, in conjunction with the acquisition of Corning Precision Materials, Corning issued 2,300 Fixed Rate Cumulative Convertible Preferred Stock, Series A (“Preferred Stock”), par value $100 per share, at an issue price of $1 million per share, for an aggregate issue price of $2.3 billion. There have been no further issuances or conversions of Preferred Stock since 2014.
|
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
income (loss)
|
||||||||||
Balance at December 31, 2012
|
$
|
1,174
|
$
|
(820)
|
$
|
(16)
|
$
|
18
|
$
|
356
|
||||
Other comprehensive income before reclassifications (4)
|
$
|
(756)
|
$
|
283
|
$
|
1
|
$
|
56
|
$
|
(416)
|
||||
Amounts reclassified from accumulated other comprehensive income (2)
|
(10)
|
(1)
|
(81)
|
(92)
|
||||||||||
Equity method affiliates (3)
|
74
|
119
|
2
|
1
|
196
|
|||||||||
Net current-period other comprehensive (loss) income
|
(682)
|
392
|
2
|
(24)
|
(312)
|
|||||||||
Balance at December 31, 2013
|
$
|
492
|
$
|
(428)
|
$
|
(14)
|
$
|
(6)
|
$
|
44
|
||||
Other comprehensive income before reclassifications (5)
|
$
|
(821)
|
$
|
(172)
|
$
|
4
|
$
|
10
|
$
|
(979)
|
||||
Amounts reclassified from accumulated other comprehensive income (2)
|
(136)
|
18
|
1
|
(6)
|
(123)
|
|||||||||
Equity method affiliates (3)
|
(116)
|
(127)
|
(6)
|
(249)
|
||||||||||
Net current-period other comprehensive (loss) income
|
(1,073)
|
(281)
|
(1)
|
4
|
(1,351)
|
|||||||||
Balance at December 31, 2014
|
$
|
(581)
|
$
|
(709)
|
$
|
(15)
|
$
|
(2)
|
$
|
(1,307)
|
||||
Other comprehensive income before reclassifications (6)
|
$
|
(487)
|
$
|
(59)
|
$
|
(18)
|
$
|
(564)
|
||||||
Amounts reclassified from accumulated other comprehensive income (2)
|
105
|
$
|
1
|
(20)
|
86
|
|||||||||
Equity method affiliates (3)
|
(103)
|
75
|
2
|
(26)
|
||||||||||
Net current-period other comprehensive (loss) income
|
(590)
|
121
|
1
|
(36)
|
(504)
|
|||||||||
Balance at December 31, 2015
|
$
|
(1,171)
|
$
|
(588)
|
$
|
(14)
|
$
|
(38)
|
$
|
(1,811)
|
(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 17.
|
(3)
|
Tax effects related to equity method affiliates are not significant.
|
(4)
|
Amounts are net of total tax expense of $(197) million, including $(33) million related to the hedges component and $(164) million related to the retirement plans component.
|
(5)
|
Amounts are net of total tax benefit of $96 million, including $(7) million related to the hedges component and $104 million related to the retirement plans component and $(1) million related to the investments component.
|
(6)
|
Amounts are net of total tax benefit of $41 million, including $35 million related to the retirement plans component and $6 million related to the hedges component.
|
Reclassifications Out of Accumulated Other Comprehensive Income (AOCI) by Component (1)
|
||||||||||
Details about AOCI Components
|
Amount reclassified from AOCI
|
Affected line item
in the consolidated
statements of income
|
||||||||
Years ended December 31,
|
||||||||||
2015
|
2014
|
2013
|
||||||||
Foreign currency translation adjustment
|
$
|
136
|
Transaction-related gain, net
|
|||||||
136
|
Net of tax
|
|||||||||
Amortization of net actuarial (loss) gain
|
$
|
(168)
|
$
|
(29)
|
$
|
15
|
(2)
|
|||
Amortization of prior service credit
|
1
|
1
|
(2)
|
|||||||
(167)
|
(29)
|
16
|
Total before tax
|
|||||||
62
|
11
|
(6)
|
Tax benefit (expense)
|
|||||||
$
|
(105)
|
$
|
(18)
|
$
|
10
|
Net of tax
|
||||
Realized (losses) gains on investments
|
$
|
(1)
|
$
|
(1)
|
$
|
1
|
Other (expense) income, net
|
|||
Tax expense
|
||||||||||
$
|
(1)
|
$
|
(1)
|
$
|
1
|
Net of tax
|
||||
Realized gains on designated hedges
|
$
|
20
|
$
|
3
|
Sales
|
|||||
6
|
7
|
$
|
38
|
Cost of sales
|
||||||
91
|
Other (expense) income, net
|
|||||||||
26
|
10
|
129
|
Total before tax
|
|||||||
(6)
|
(4)
|
(48)
|
Tax expense
|
|||||||
$
|
20
|
$
|
6
|
$
|
81
|
Net of tax
|
||||
Total reclassifications for the period
|
$
|
(86)
|
$
|
123
|
$
|
92
|
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 13 (Employee Retirement Plans) to the Consolidated Financial Statements for additional details.
|
Years ended December 31,
|
||||||||
2015
|
2014
|
2013
|
||||||
Net income attributable to Corning Incorporated
|
$
|
1,339
|
$
|
2,472
|
$
|
1,961
|
||
Less: Series A convertible preferred stock dividend
|
98
|
94
|
||||||
Net income available to common stockholders - basic
|
1,241
|
2,378
|
1,961
|
|||||
Plus: Series A convertible preferred stock dividend
|
98
|
94
|
||||||
Net income available to common stockholders - diluted
|
$
|
1,339
|
$
|
2,472
|
$
|
1,961
|
||
Weighted-average common shares outstanding - basic
|
1,219
|
1,305
|
1,452
|
|||||
Effect of dilutive securities:
|
||||||||
Stock options and other dilutive securities
|
9
|
12
|
10
|
|||||
Series A convertible preferred stock
|
115
|
110
|
||||||
Weighted-average common shares outstanding - diluted
|
1,343
|
1,427
|
1,462
|
|||||
Basic earnings per common share
|
$
|
1.02
|
$
|
1.82
|
$
|
1.35
|
||
Diluted earnings per common share
|
$
|
1.00
|
$
|
1.73
|
$
|
1.34
|
||
Anti-dilutive potential shares excluded from diluted earnings per common share:
|
||||||||
Employee stock options and awards
|
22
|
24
|
39
|
|||||
Accelerated share repurchase forward contract
|
15
|
3
|
3
|
|||||
Total
|
37
|
27
|
42
|
Number of
shares
(in thousands)
|
Weighted-
average
exercise price
|
Weighted-
average
remaining
contractual
term in years
|
Aggregate
intrinsic
value
(in thousands)
|
||||
Options outstanding as of December 31, 2014
|
48,724
|
$18.94
|
|||||
Granted
|
1,578
|
21.48
|
|||||
Exercised
|
(6,340)
|
16.13
|
|||||
Forfeited and expired
|
(1,224)
|
20.78
|
|||||
Options outstanding as of December 31, 2015
|
42,738
|
19.40
|
3.93
|
$83,023
|
|||
Options expected to vest as of December 31, 2015
|
42,696
|
19.40
|
3.93
|
82,992
|
|||
Options exercisable as of December 31, 2015
|
35,245
|
19.86
|
3.08
|
65,817
|
2015
|
2014
|
2013
|
|||||||||
Expected volatility
|
43.6
|
-
|
44.9%
|
45.4
|
-
|
46.2%
|
46.5
|
-
|
47.4%
|
||
Weighted-average volatility
|
43.6
|
-
|
44.9%
|
45.4
|
-
|
46.2%
|
46.6
|
-
|
47.3%
|
||
Expected dividends
|
1.92
|
-
|
2.68%
|
1.90
|
-
|
2.09%
|
2.35
|
-
|
3.02%
|
||
Risk-free rate
|
1.9
|
-
|
2.1%
|
2.0
|
-
|
2.2%
|
0.8
|
-
|
2.2%
|
||
Average risk-free rate
|
1.9
|
-
|
2.1%
|
2.0
|
-
|
2.2%
|
1.1
|
-
|
2.2%
|
||
Expected term (in years)
|
7.2
|
-
|
7.2
|
7.2
|
-
|
7.2
|
5.8
|
-
|
7.2
|
||
Pre-vesting departure rate
|
0.6
|
-
|
0.6%
|
0.5
|
-
|
0.5%
|
0.4
|
-
|
4.1%
|
Shares
(000’s)
|
Weighted-
average
grant-date
fair value
|
||
Non-vested shares and share units at December 31, 2014
|
5,737
|
$15.43
|
|
Granted
|
1,815
|
21.49
|
|
Vested
|
(2,238)
|
14.35
|
|
Forfeited
|
(72)
|
21.11
|
|
Non-vested shares and share units at December 31, 2015
|
5,242
|
17.91
|
·
|
Display Technologies – manufactures glass substrates for flat panel liquid crystal displays.
|
·
|
Optical Communications – manufactures carrier network and enterprise network components for the telecommunications industry.
|
·
|
Environmental Technologies – manufactures ceramic substrates and filters for automotive and diesel applications.
|
·
|
Specialty Materials – manufactures products that provide more than 150 material formulations for glass, glass ceramics and fluoride crystals to meet demand for unique customer needs.
|
·
|
Life Sciences – manufactures glass and plastic labware, equipment, media and reagents to provide workflow solutions for scientific applications.
|
Display
Technologies
|
Optical
Communications
|
Environmental
Technologies
|
Specialty
Materials
|
Life
Sciences
|
All
Other
|
Total
|
||||||||||||||
For the year ended
December 31, 2015
|
||||||||||||||||||||
Net sales
|
$
|
3,086
|
$
|
2,980
|
$
|
1,053
|
$
|
1,107
|
$
|
821
|
$
|
64
|
$
|
9,111
|
||||||
Depreciation (1)
|
$
|
605
|
$
|
163
|
$
|
125
|
$
|
112
|
$
|
60
|
$
|
43
|
$
|
1,108
|
||||||
Amortization of purchased intangibles
|
$
|
32
|
$
|
20
|
$
|
1
|
$
|
53
|
||||||||||||
Research, development and engineering expenses (2)
|
$
|
105
|
$
|
138
|
$
|
93
|
$
|
113
|
$
|
23
|
$
|
186
|
$
|
658
|
||||||
Restructuring, impairment and other charges
|
$
|
(1)
|
$
|
16
|
$
|
15
|
||||||||||||||
Equity in earnings of affiliated companies
|
$
|
(9)
|
$
|
17
|
$
|
8
|
||||||||||||||
Income tax (provision) benefit
|
$
|
(499)
|
$
|
(115)
|
$
|
(78)
|
$
|
(85)
|
$
|
(30)
|
$
|
89
|
$
|
(718)
|
||||||
Net income (loss) (4)
|
$
|
1,095
|
$
|
237
|
$
|
161
|
$
|
167
|
$
|
61
|
$
|
(202)
|
$
|
1,519
|
||||||
Investment in affiliated companies, at equity
|
$
|
43
|
$
|
1
|
$
|
32
|
$
|
261
|
$
|
337
|
||||||||||
Segment assets (5)
|
$
|
8,344
|
$
|
1,783
|
$
|
1,288
|
$
|
1,407
|
$
|
514
|
$
|
738
|
$
|
14,074
|
||||||
Capital expenditures
|
$
|
594
|
$
|
171
|
$
|
117
|
$
|
88
|
$
|
32
|
$
|
57
|
$
|
1,059
|
||||||
For the year ended
December 31, 2014
|
||||||||||||||||||||
Net sales
|
$
|
3,851
|
$
|
2,652
|
$
|
1,092
|
$
|
1,205
|
$
|
862
|
$
|
53
|
$
|
9,715
|
||||||
Depreciation (1)
|
$
|
676
|
$
|
154
|
$
|
119
|
$
|
113
|
$
|
60
|
$
|
31
|
$
|
1,153
|
||||||
Amortization of purchased intangibles
|
$
|
10
|
$
|
22
|
$
|
32
|
||||||||||||||
Research, development and engineering expenses (2)
|
$
|
138
|
$
|
141
|
$
|
91
|
$
|
140
|
$
|
22
|
$
|
177
|
$
|
709
|
||||||
Restructuring, impairment and other charges
|
$
|
45
|
$
|
17
|
$
|
(1)
|
$
|
1
|
$
|
6
|
$
|
68
|
||||||||
Equity in earnings of affiliated companies
|
$
|
(20)
|
$
|
2
|
$
|
18
|
||||||||||||||
Income tax (provision) benefit
|
$
|
(608)
|
$
|
(111)
|
$
|
(89)
|
$
|
(75)
|
$
|
(33)
|
$
|
83
|
$
|
(833)
|
||||||
Net income (loss) (4)
|
$
|
1,396
|
$
|
194
|
$
|
178
|
$
|
138
|
$
|
67
|
$
|
(198)
|
$
|
1,775
|
||||||
Investment in affiliated companies, at equity
|
$
|
63
|
$
|
2
|
$
|
32
|
$
|
214
|
$
|
311
|
||||||||||
Segment assets (5)
|
$
|
8,863
|
$
|
1,737
|
$
|
1,297
|
$
|
1,288
|
$
|
553
|
$
|
518
|
$
|
14,256
|
||||||
Capital expenditures
|
$
|
492
|
$
|
145
|
$
|
173
|
$
|
104
|
$
|
30
|
$
|
101
|
$
|
1,045
|
||||||
For the year ended
December 31, 2013
|
||||||||||||||||||||
Net sales
|
$
|
2,545
|
$
|
2,326
|
$
|
919
|
$
|
1,170
|
$
|
851
|
$
|
8
|
$
|
7,819
|
||||||
Depreciation (1)
|
$
|
481
|
$
|
147
|
$
|
120
|
$
|
137
|
$
|
57
|
$
|
18
|
$
|
960
|
||||||
Amortization of purchased intangibles
|
$
|
10
|
$
|
21
|
$
|
31
|
||||||||||||||
Research, development and engineering expenses (2)
|
$
|
84
|
$
|
140
|
$
|
89
|
$
|
144
|
$
|
20
|
$
|
116
|
$
|
593
|
||||||
Restructuring, impairment and other charges
|
$
|
7
|
$
|
12
|
$
|
1
|
$
|
19
|
$
|
4
|
$
|
8
|
$
|
51
|
||||||
Equity in earnings of affiliated companies (3)
|
$
|
357
|
$
|
2
|
$
|
1
|
$
|
4
|
$
|
(24)
|
$
|
340
|
||||||||
Income tax (provision) benefit
|
$
|
(337)
|
$
|
(96)
|
$
|
(63)
|
$
|
(88)
|
$
|
(34)
|
$
|
59
|
$
|
(559)
|
||||||
Net income (loss) (4)
|
$
|
1,293
|
$
|
189
|
$
|
127
|
$
|
181
|
$
|
68
|
$
|
(165)
|
$
|
1,693
|
||||||
Investment in affiliated companies, at equity
|
$
|
3,666
|
$
|
3
|
$
|
31
|
$
|
10
|
$
|
232
|
$
|
3,942
|
||||||||
Segment assets (5)
|
$
|
9,501
|
$
|
1,654
|
$
|
1,230
|
$
|
1,333
|
$
|
551
|
$
|
422
|
$
|
14,691
|
||||||
Capital expenditures
|
$
|
350
|
$
|
105
|
$
|
196
|
$
|
62
|
$
|
51
|
$
|
55
|
$
|
819
|
(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)
|
In 2013, equity in earnings of affiliated companies in the Display Technologies segment included a $28 million restructuring charge for our share of costs for headcount reductions and asset write-offs.
|
(4)
|
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.
|
(5)
|
Segment assets include inventory, accounts receivable, property, plant and equipment, net of accumulated depreciation, and associated equity companies and cost investments.
|
·
|
In the Display Technologies segment, three customers accounted for 62% of total segment sales.
|
·
|
In the Optical Communications segment, two customers accounted for 22% of total segment sales.
|
·
|
In the Environmental Technologies segment, three customers accounted for 86% of total segment sales.
|
·
|
In the Specialty Materials segment, three customers accounted for 56% of total segment sales.
|
·
|
In the Life Sciences segment, two customers accounted for 46% of total segment sales.
|
Years ended December 31,
|
||||||||
2015
|
2014
|
2013
|
||||||
Net income of reportable segments
|
$
|
1,721
|
$
|
1,973
|
$
|
1,858
|
||
Net loss of All Other
|
(202)
|
(198)
|
(165)
|
|||||
Unallocated amounts:
|
||||||||
Net financing costs (1)
|
(111)
|
(113)
|
(66)
|
|||||
Share-based compensation expense
|
(46)
|
(58)
|
(54)
|
|||||
Exploratory research
|
(109)
|
(102)
|
(112)
|
|||||
Corporate contributions
|
(52)
|
(43)
|
(42)
|
|||||
Equity in earnings of affiliated companies, net of impairments (2)
|
291
|
269
|
207
|
|||||
Unrealized (loss) gain on foreign currency hedges related to translated earnings
|
(573)
|
1,095
|
368
|
|||||
Income tax benefit (provision)
|
568
|
(267)
|
(1)
|
|||||
Other corporate items
|
(148)
|
(84)
|
(32)
|
|||||
Net income
|
$
|
1,339
|
$
|
2,472
|
$
|
1,961
|
(1)
|
Net financing costs include interest income, interest expense, and interest costs and investment gains and losses associated with benefit plans.
|
(2)
|
Primarily represents the equity earnings of Dow Corning.
|
December 31,
|
||||||||
2015
|
2014
|
2013
|
||||||
Total assets of reportable segments
|
$
|
13,336
|
$
|
13,738
|
$
|
14,269
|
||
Non-reportable segments
|
738
|
518
|
422
|
|||||
Unallocated amounts:
|
||||||||
Current assets (1)
|
5,488
|
7,402
|
6,349
|
|||||
Investments (2)
|
1,638
|
1,490
|
1,595
|
|||||
Property, plant and equipment, net (3)
|
1,692
|
1,657
|
1,594
|
|||||
Other non-current assets (4)
|
5,655
|
5,258
|
4,249
|
|||||
Total assets
|
$
|
28,547
|
$
|
30,063
|
$
|
28,478
|
(1)
|
Includes current corporate assets, primarily cash, short-term investments, current portion of long-term derivative assets and deferred taxes.
|
(2)
|
Represents corporate investments in affiliated companies, at both cost and equity (primarily Dow Corning).
|
(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.
|
Years Ended December 31,
|
||||||||
Revenues from External Customers
|
2015
|
2014
|
2013
|
|||||
Display Technologies
|
$
|
3,086
|
$
|
3,851
|
$
|
2,545
|
||
Optical Communications
|
||||||||
Carrier network
|
2,194
|
2,036
|
1,782
|
|||||
Enterprise network
|
786
|
616
|
544
|
|||||
Total Optical Communications
|
2,980
|
2,652
|
2,326
|
|||||
Environmental Technologies
|
||||||||
Automotive and other
|
528
|
528
|
485
|
|||||
Diesel
|
525
|
564
|
434
|
|||||
Total Environmental Technologies
|
1,053
|
1,092
|
919
|
|||||
Specialty Materials
|
||||||||
Corning Gorilla Glass
|
810
|
846
|
848
|
|||||
Advanced optics and other specialty glass
|
297
|
359
|
322
|
|||||
Total Specialty Materials
|
1,107
|
1,205
|
1,170
|
|||||
Life Sciences
|
||||||||
Labware
|
512
|
536
|
529
|
|||||
Cell culture products
|
309
|
326
|
322
|
|||||
Total Life Science
|
821
|
862
|
851
|
|||||
All Other
|
64
|
53
|
8
|
|||||
$
|
9,111
|
$
|
9,715
|
$
|
7,819
|
2015
|
2014
|
2013
|
|||||||||||||||
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
|
$
|
2,719
|
$
|
8,241
|
$
|
2,275
|
$
|
7,998
|
$
|
2,061
|
$
|
7,170
|
|||||
Canada
|
244
|
144
|
311
|
308
|
|||||||||||||
Mexico
|
37
|
135
|
35
|
50
|
23
|
36
|
|||||||||||
Total North America
|
3,000
|
8,520
|
2,621
|
8,048
|
2,392
|
7,206
|
|||||||||||
Asia Pacific
|
|||||||||||||||||
Japan
|
440
|
1,160
|
608
|
1,311
|
621
|
1,548
|
|||||||||||
Taiwan
|
841
|
2,301
|
1,092
|
2,005
|
1,376
|
2,277
|
|||||||||||
China
|
1,869
|
1,036
|
1,893
|
1,115
|
1,916
|
1,218
|
|||||||||||
Korea
|
1,501
|
3,552
|
1,882
|
3,595
|
96
|
3,234
|
|||||||||||
Other
|
331
|
98
|
308
|
109
|
278
|
127
|
|||||||||||
Total Asia Pacific
|
4,982
|
8,147
|
5,783
|
8,135
|
4,287
|
8,404
|
|||||||||||
Europe
|
|||||||||||||||||
Germany
|
326
|
189
|
397
|
217
|
337
|
171
|
|||||||||||
France
|
90
|
263
|
81
|
277
|
79
|
287
|
|||||||||||
United Kingdom
|
164
|
47
|
187
|
47
|
165
|
6
|
|||||||||||
Other
|
311
|
987
|
369
|
1,109
|
280
|
1,147
|
|||||||||||
Total Europe
|
891
|
1,486
|
1,034
|
1,650
|
861
|
1,611
|
|||||||||||
Latin America
|
|||||||||||||||||
Brazil
|
55
|
36
|
67
|
36
|
77
|
66
|
|||||||||||
Other
|
34
|
35
|
37
|
6
|
|||||||||||||
Total Latin America
|
89
|
36
|
102
|
36
|
114
|
72
|
|||||||||||
All Other
|
149
|
175
|
19
|
165
|
25
|
||||||||||||
Total
|
$
|
9,111
|
$
|
18,189
|
$
|
9,715
|
$
|
17,888
|
$
|
7,819
|
$
|
17,318
|
(1)
|
Long-lived assets primarily include investments, plant and equipment, goodwill and other intangible assets. In 2014 and 2015, assets in the U.S. include the investment in Dow Corning. In 2013, assets in the U.S. and South Korea include investments in Dow Corning and Samsung Corning Precision Materials.
|
(2)
|
Net sales are attributed to countries based on location of customer.
|
Year ended December 31, 2015
|
Balance at
beginning
of period
|
Additions
|
Net
deductions
and other
|
Balance at
end
of period
|
|||||||
Doubtful accounts and allowances
|
$
|
47
|
$
|
1
|
$
|
48
|
|||||
Deferred tax valuation allowance
|
$
|
298
|
$
|
30
|
$
|
90
|
$
|
238
|
|||
Accumulated amortization of purchased intangible assets
|
$
|
216
|
$
|
49
|
$
|
265
|
|||||
Reserves for accrued costs of business restructuring
|
$
|
44
|
$
|
41
|
$
|
3
|
Year ended December 31, 2014
|
Balance at
beginning
of period
|
Additions
|
Net
deductions
and other
|
Balance at
end
of period
|
|||||||
Doubtful accounts and allowances
|
$
|
28
|
$
|
19
|
$
|
47
|
|||||
Deferred tax valuation allowance
|
$
|
286
|
$
|
186
|
$
|
174
|
$
|
298
|
|||
Accumulated amortization of purchased intangible assets
|
$
|
185
|
$
|
31
|
$
|
216
|
|||||
Reserves for accrued costs of business restructuring
|
$
|
44
|
$
|
49
|
$
|
49
|
$
|
44
|
Year ended December 31, 2013
|
Balance at
beginning
of period
|
Additions
|
Net
deductions
and other
|
Balance at
end
of period
|
|||||||
Doubtful accounts and allowances
|
$
|
26
|
$
|
2
|
$
|
28
|
|||||
Deferred tax valuation allowance
|
$
|
210
|
$
|
80
|
$
|
4
|
$
|
286
|
|||
Accumulated amortization of purchased intangible assets
|
$
|
154
|
$
|
31
|
$
|
185
|
|||||
Reserves for accrued costs of business restructuring
|
$
|
42
|
$
|
41
|
$
|
39
|
$
|
44
|
2015
|
First
quarter
|
Second
quarter
|
Third
quarter
|
Fourth
quarter
|
Total
year
|
|||||||||
Net sales
|
$
|
2,265
|
$
|
2,343
|
$
|
2,272
|
$
|
2,231
|
$
|
9,111
|
||||
Gross margin
|
$
|
929
|
$
|
975
|
$
|
892
|
$
|
857
|
$
|
3,653
|
||||
Equity in earnings of affiliated companies
|
$
|
94
|
$
|
62
|
$
|
39
|
$
|
104
|
$
|
299
|
||||
(Provision) benefit for income taxes
|
$
|
(86)
|
$
|
(110)
|
$
|
(6)
|
$
|
55
|
$
|
(147)
|
||||
Net income attributable to Corning Incorporated
|
$
|
407
|
$
|
496
|
$
|
212
|
$
|
224
|
$
|
1,339
|
||||
Basic earnings per common share
|
$
|
0.30
|
$
|
0.38
|
$
|
0.16
|
$
|
0.17
|
$
|
1.02
|
||||
Diluted earnings per common share
|
$
|
0.29
|
$
|
0.36
|
$
|
0.15
|
$
|
0.17
|
$
|
1.00
|
2014
|
First
quarter
|
Second
quarter
|
Third
quarter
|
Fourth
quarter
|
Total
year
|
|||||||||
Net sales
|
$
|
2,289
|
$
|
2,482
|
$
|
2,540
|
$
|
2,404
|
$
|
9,715
|
||||
Gross margin
|
$
|
935
|
$
|
1,032
|
$
|
1,089
|
$
|
996
|
$
|
4,052
|
||||
Restructuring, impairment and other charges
|
$
|
17
|
$
|
34
|
$
|
20
|
$
|
71
|
||||||
Equity in earnings of affiliated companies
|
$
|
86
|
$
|
62
|
$
|
95
|
$
|
23
|
$
|
266
|
||||
Provision for income taxes
|
$
|
(180)
|
$
|
(172)
|
$
|
(395)
|
$
|
(349)
|
$
|
(1,096)
|
||||
Net income attributable to Corning Incorporated
|
$
|
301
|
$
|
169
|
$
|
1,014
|
$
|
988
|
$
|
2,472
|
||||
Basic earnings per common share
|
$
|
0.21
|
$
|
0.11
|
$
|
0.77
|
$
|
0.76
|
$
|
1.82
|
||||
Diluted earnings per common share
|
$
|
0.20
|
$
|
0.11
|
$
|
0.72
|
$
|
0.70
|
$
|
1.73
|
Page
|
|||
for the years ended December 31, 2015, 2014, and 2013
|
|||
for the years ended December 31, 2015, 2014, and 2013
|
|||
for the years ended December 31, 2015, 2014, and 2013
|
|||
for the years ended December 31, 2015, 2014, and 2013
|
|||
Years Ended December 31,
|
||||||||||||
2015
|
2014
|
2013
|
||||||||||
Net Sales
|
$
|
5,649.3
|
$
|
6,221.3
|
$
|
5,710.5
|
||||||
Operating Costs and Expenses
|
||||||||||||
Cost of sales
|
4,177.0
|
4,678.1
|
4,430.6
|
|||||||||
Marketing and administrative expenses
|
663.4
|
663.1
|
699.5
|
|||||||||
Gains on long-term sales agreements
|
(178.8)
|
(39.0)
|
(228.5)
|
|||||||||
Asset (gains) charges and restructuring expenses, net
|
(9.1)
|
1,481.0
|
165.5
|
|||||||||
Total operating costs and expenses
|
4,652.5
|
6,783.2
|
5,067.1
|
|||||||||
Operating Income (Loss)
|
996.8
|
(561.9)
|
643.4
|
|||||||||
Interest income
|
12.1
|
9.3
|
7.9
|
|||||||||
Interest expense
|
(52.1)
|
(49.0)
|
(45.7)
|
|||||||||
Other nonoperating income (expense), net
|
(82.9)
|
8.4
|
61.9
|
|||||||||
Implant liability adjustments
|
65.3
|
1,299.8
|
-
|
|||||||||
Income before Income Taxes
|
939.2
|
706.6
|
667.5
|
|||||||||
Income tax provision
|
303.9
|
132.0
|
233.8
|
|||||||||
Net Income
|
635.3
|
574.6
|
433.7
|
|||||||||
Less: Noncontrolling interests’ share in net income
|
72.3
|
61.8
|
57.4
|
|||||||||
Net Income Attributable to Dow Corning Corporation
|
$
|
563.0
|
$
|
512.8
|
$
|
376.3
|
||||||
Weighted-Average Common Shares Outstanding
|
2.5
|
2.5
|
2.5
|
|||||||||
(basic and diluted)
|
||||||||||||
Net Income per Share (basic and diluted)
|
$
|
225.20
|
$
|
205.12
|
$
|
150.52
|
||||||
Dividends Declared per Common Share
|
$
|
114.00
|
$
|
100.00
|
$
|
80.00
|
Years Ended December 31,
|
||||||||||
2015
|
2014
|
2013
|
||||||||
Net Income
|
$
|
635.3
|
$
|
574.6
|
$
|
433.7
|
||||
Other comprehensive income (loss), before tax:
|
||||||||||
Foreign currency translation adjustments
|
(139.9)
|
(170.8)
|
(2.7)
|
|||||||
Unrealized net gain (loss) on securities:
|
||||||||||
Unrealized holding gain arising during the period
|
3.0
|
8.2
|
4.8
|
|||||||
Reclassificaton adjustment for gain included in income
|
-
|
(17.6)
|
-
|
|||||||
Net gain on cash flow hedges:
|
||||||||||
Unrealized gain arising during the period
|
4.1
|
-
|
0.2
|
|||||||
Reclassification adjustment for loss included in income
|
-
|
-
|
5.4
|
|||||||
Defined benefit plan adjustments:
|
||||||||||
Gain (loss) arising during the period
|
160.4
|
(467.7)
|
292.7
|
|||||||
Amortization of pension adjustments included in income
|
84.0
|
49.0
|
81.5
|
|||||||
Other comprehensive income (loss), before tax
|
111.6
|
(598.9)
|
381.9
|
|||||||
Income tax (expense) benefit related to items of OCI1
|
(82.9)
|
141.9
|
(130.1)
|
|||||||
Other comprehensive income (loss), net of tax
|
28.7
|
(457.0)
|
251.8
|
|||||||
Comprehensive Income
|
664.0
|
117.6
|
685.5
|
|||||||
Less: Noncontrolling interests’ share in comprehensive income
|
63.8
|
47.4
|
44.4
|
|||||||
Comprehensive Income Attributable to Dow Corning Corporation
|
$
|
600.2
|
$
|
70.2
|
$
|
641.1
|
ASSETS
|
||||||||
December 31, 2015
|
December 31, 2014
|
|||||||
Current Assets
|
||||||||
Cash and cash equivalents
|
$
|
2,313.5
|
$
|
2,291.2
|
||||
Accounts receivable (net of allowance for doubtful accounts of $7.3 in 2015 and $10.4 in 2014)
|
706.1
|
745.9
|
||||||
Notes and other receivables
|
213.3
|
246.0
|
||||||
Inventories
|
1,159.5
|
1,083.8
|
||||||
Other current assets
|
118.4
|
81.4
|
||||||
Total current assets
|
4,510.8
|
4,448.3
|
||||||
Property, Plant and Equipment
|
10,573.9
|
10,683.1
|
||||||
Less - Accumulated Depreciation
|
(5,487.6)
|
(5,276.3)
|
||||||
Net property, plant and equipment
|
5,086.3
|
5,406.8
|
||||||
Other Assets
|
||||||||
Marketable securities
|
90.2
|
86.1
|
||||||
Deferred income taxes
|
388.7
|
569.5
|
||||||
Intangible assets (net of accumulated amortization of $61.8 in 2015 and $58.4 in 2014)
|
64.0
|
70.9
|
||||||
Goodwill
|
55.7
|
61.9
|
||||||
Other noncurrent assets
|
378.6
|
496.4
|
||||||
Total other assets
|
977.2
|
1,284.8
|
||||||
Total Assets
|
$
|
10,574.3
|
$
|
11,139.9
|
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
||||||||
December 31, 2015
|
December 31, 2014
|
|||||||
Current Liabilities
|
||||||||
Current maturities of long-term debt
|
$
|
6.1
|
$
|
7.0
|
||||
Trade accounts payable
|
482.2
|
522.9
|
||||||
Accrued payrolls and employee benefits
|
167.9
|
207.0
|
||||||
Accrued taxes
|
145.4
|
99.2
|
||||||
Accrued interest
|
113.4
|
106.8
|
||||||
Current deferred revenue
|
254.8
|
319.6
|
||||||
Other current liabilities
|
150.8
|
184.4
|
||||||
Total current liabilities
|
1,320.6
|
1,446.9
|
||||||
Other Liabilities
|
||||||||
Long-term debt
|
784.8
|
945.4
|
||||||
Implant liability
|
291.4
|
363.6
|
||||||
Employee benefits
|
1,304.2
|
1,552.0
|
||||||
Deferred income tax liabilities
|
9.7
|
38.3
|
||||||
Deferred revenue
|
2,553.6
|
2,882.7
|
||||||
Other noncurrent liabilities
|
370.7
|
284.3
|
||||||
Total other liabilities
|
5,314.4
|
6,066.3
|
||||||
Equity
|
||||||||
Stockholders’ equity
|
||||||||
Common stock ($5.00 par value - 2,500,000 shares authorized, issued and outstanding)
|
12.5
|
12.5
|
||||||
Retained earnings
|
4,072.6
|
3,794.6
|
||||||
Accumulated other comprehensive loss
|
(777.2)
|
(814.4)
|
||||||
Dow Corning Corporation’s stockholders’ equity
|
3,307.9
|
2,992.7
|
||||||
Noncontrolling interest in consolidated subsidiaries
|
631.4
|
634.0
|
||||||
Total equity
|
3,939.3
|
3,626.7
|
||||||
Total Liabilities and Equity
|
$
|
10,574.3
|
$
|
11,139.9
|
Years ended December 31,
|
|||||||||||
2015
|
2014
|
2013
|
|||||||||
Cash Flows from Operating Activities
|
|||||||||||
Net income
|
$
|
635.3
|
$
|
574.6
|
$
|
433.7
|
|||||
Depreciation and amortization
|
419.5
|
491.3
|
490.1
|
||||||||
Gains on long-term sales agreements
|
(178.8)
|
(39.0)
|
(228.5)
|
||||||||
Cash flows related to gains on long-term sales agreements
|
-
|
-
|
183.2
|
||||||||
Asset (gains) charges and restructuring expenses, net
|
(9.1)
|
1,481.0
|
113.9
|
||||||||
Changes in restructuring accrual
|
-
|
(14.3)
|
(53.1)
|
||||||||
Changes in deferred revenue, net
|
(215.2)
|
(201.2)
|
(77.8)
|
||||||||
Changes in deferred taxes, net
|
62.2
|
45.7
|
(68.7)
|
||||||||
Tax-related bond deposits, net
|
-
|
29.2
|
17.9
|
||||||||
Other, net
|
236.6
|
83.8
|
119.3
|
||||||||
Changes in operating assets and liabilities
|
|||||||||||
Changes in accounts and notes receivable
|
63.0
|
(46.1)
|
29.9
|
||||||||
Changes in accounts payable
|
(26.5)
|
36.7
|
11.5
|
||||||||
Changes in inventory
|
(103.3)
|
(123.6)
|
3.1
|
||||||||
Changes in other operating assets and liabilities
|
(25.2)
|
98.6
|
14.6
|
||||||||
Cash flows related to reorganization, net
|
(7.8)
|
(0.4)
|
(24.4)
|
||||||||
Implant liability adjustment
|
(65.3)
|
(1,299.8)
|
-
|
||||||||
Cash provided by operating activities
|
785.4
|
1,116.5
|
964.7
|
||||||||
Cash Flows from Investing Activities
|
|||||||||||
Capital expenditures
|
(287.9)
|
(249.8)
|
(363.3)
|
||||||||
Proceeds from sales, maturities, and redemptions of securities
|
-
|
18.9
|
-
|
||||||||
Proceeds from sale of property
|
65.3
|
-
|
-
|
||||||||
Other, net
|
(3.4)
|
(58.5)
|
(29.9)
|
||||||||
Cash used in investing activities
|
(226.0)
|
(289.4)
|
(393.2)
|
||||||||
Cash Flows from Financing Activities
|
|||||||||||
Increase in short-term borrowings
|
-
|
-
|
99.0
|
||||||||
Payments of short-term borrowings
|
-
|
(73.2)
|
(99.0)
|
||||||||
Increase in long-term debt
|
-
|
16.3
|
166.1
|
||||||||
Payments of long-term debt
|
(158.9)
|
(12.6)
|
(202.6)
|
||||||||
Distributions to shareholders of noncontrolling interests
|
(66.4)
|
(19.5)
|
(14.0)
|
||||||||
Acquisition of additional shares of noncontrolling interests
|
-
|
-
|
(266.0)
|
||||||||
Dividends paid to stockholders
|
(285.0)
|
(250.0)
|
(200.0)
|
||||||||
Cash used in financing activities
|
(510.3)
|
(339.0)
|
(516.5)
|
||||||||
Effect of Exchange Rate Changes on Cash
|
(26.8)
|
(23.0)
|
0.7
|
||||||||
Changes in Cash and Cash Equivalents
|
|||||||||||
Net increase in cash and cash equivalents
|
22.3
|
465.1
|
55.7
|
||||||||
Cash and cash equivalents at beginning of period
|
2,291.2
|
1,826.1
|
1,770.4
|
||||||||
Cash and cash equivalents at end of period
|
$
|
2,313.5
|
$
|
2,291.2
|
$
|
1,826.1
|
Dow Corning Corporation Stockholders’ Equity
|
|||||||||||||||||||
Total
|
Noncontrolling
Interest
|
Total
Stockholders’
Equity
|
Retained
Earnings
|
AOCI1
|
Common
Stock
|
||||||||||||||
Balance as of December 31, 2012
|
$
|
3,573.2
|
$
|
687.0
|
$
|
2,886.2
|
$
|
3,510.3
|
$
|
(636.6)
|
$
|
12.5
|
|||||||
Net Income
|
433.7
|
57.4
|
376.3
|
376.3
|
|||||||||||||||
Other comprehensive income (loss), net of tax
|
|||||||||||||||||||
Foreign currency translation adjustments
|
(2.7)
|
(14.2)
|
11.5
|
11.5
|
|||||||||||||||
Unrealized net gain on available for sale securities
|
4.8
|
1.1
|
3.7
|
3.7
|
|||||||||||||||
Net gain on cash flow hedges
|
3.6
|
-
|
3.6
|
3.6
|
|||||||||||||||
Pension and other postretirement benefit adjustments
|
246.1
|
0.1
|
246.0
|
246.0
|
|||||||||||||||
Total comprehensive income
|
685.5
|
44.4
|
641.1
|
||||||||||||||||
Dividends declared on common stock, distributions to shareholders of noncontrolling interests and other
|
(214.0)
|
(14.0)
|
(200.0)
|
(200.0)
|
|||||||||||||||
Acquisition of additional shares of noncontrolling interests
|
(266.1)
|
(111.3)
|
(154.8)
|
(154.8)
|
|||||||||||||||
Balance as of December 31, 2013
|
$
|
3,778.6
|
$
|
606.1
|
$
|
3,172.5
|
$
|
3,531.8
|
$
|
(371.8)
|
$
|
12.5
|
|||||||
Net Income
|
574.6
|
61.8
|
512.8
|
512.8
|
|||||||||||||||
Other comprehensive income (loss), net of tax
|
|||||||||||||||||||
Foreign currency translation adjustments
|
(170.8)
|
(12.7)
|
(158.1)
|
(158.1)
|
|||||||||||||||
Unrealized net (loss) on available for sale securities
|
(9.4)
|
(1.6)
|
(7.8)
|
(7.8)
|
|||||||||||||||
Pension and other postretirement benefit adjustments
|
(276.8)
|
(0.1)
|
(276.7)
|
(276.7)
|
|||||||||||||||
Total comprehensive income
|
117.6
|
47.4
|
70.2
|
||||||||||||||||
Dividends declared on common stock, distributions to shareholders of noncontrolling interests and other
|
(269.5)
|
(19.5)
|
(250.0)
|
(250.0)
|
|||||||||||||||
Balance as of December 31, 2014
|
$
|
3,626.7
|
$
|
634.0
|
$
|
2,992.7
|
$
|
3,794.6
|
$
|
(814.4)
|
$
|
12.5
|
|||||||
Net Income
|
635.3
|
72.3
|
563.0
|
563.0
|
|||||||||||||||
Other comprehensive income (loss), net of tax
|
|||||||||||||||||||
Foreign currency translation adjustments
|
(139.9)
|
(9.0)
|
(130.9)
|
(130.9)
|
|||||||||||||||
Unrealized net gain on available for sale securities
|
3.0
|
0.2
|
2.8
|
2.8
|
|||||||||||||||
Net gain on cash flow hedges
|
2.6
|
-
|
2.6
|
2.6
|
|||||||||||||||
Pension and other postretirement benefit adjustments
|
163.0
|
0.3
|
162.7
|
162.7
|
|||||||||||||||
Total comprehensive income
|
664.0
|
63.8
|
600.2
|
||||||||||||||||
Dividends declared on common stock, distributions to shareholders of noncontrolling interests and other
|
(351.4)
|
(66.4)
|
(285.0)
|
(285.0)
|
|||||||||||||||
Balance as of December 31, 2015
|
$
|
3,939.3
|
$
|
631.4
|
$
|
3,307.9
|
$
|
4,072.6
|
$
|
(777.2)
|
$
|
12.5
|
Note
|
Page
|
||
1
|
|||
2
|
|||
3
|
|||
4
|
|||
5
|
|||
6
|
|||
7
|
|||
8
|
|||
9
|
|||
10
|
|||
11
|
|||
12
|
|||
13
|
|||
14
|
|||
15
|
|||
16
|
|||
17
|
|||
18
|
|||
19
|
|||
20
|
December 31, 2015
|
||||||||||||||
Level
|
Cost
|
Gross
Unrealized
Gains
|
Gross
Unrealized
(Losses)
|
Fair
Value
|
||||||||||
Debt Securities - Auction rate preferred securities
|
Level 3
|
$
|
76.0
|
$
|
-
|
$
|
(0.4)
|
$
|
75.6
|
|||||
Foreign Equity Securities
|
Level 1
|
0.5
|
2.2
|
-
|
2.7
|
|||||||||
Other
|
Level 1
|
11.9
|
-
|
-
|
11.9
|
|||||||||
Total Marketable Securities
|
$
|
88.4
|
$
|
2.2
|
$
|
(0.4)
|
$
|
90.2
|
||||||
December 31, 2014
|
||||||||||||||
Level
|
Cost
|
Gross
Unrealized
Gains
|
Gross
Unrealized
(Losses)
|
Fair
Value
|
||||||||||
Debt Securities - Auction rate preferred securities
|
Level 3
|
$
|
76.0
|
$
|
-
|
$
|
(3.1)
|
$
|
72.9
|
|||||
Foreign Equity Securities
|
Level 1
|
0.5
|
2.1
|
-
|
2.6
|
|||||||||
Other
|
Level 1
|
10.6
|
-
|
-
|
10.6
|
|||||||||
Total Marketable Securities
|
$
|
87.1
|
$
|
2.1
|
$
|
(3.1)
|
$
|
86.1
|
2015
|
2014
|
||||
Beginning balance as of January 1
|
$
|
72.9
|
$
|
69.0
|
|
Transfers in to Level 3
|
-
|
-
|
|||
Transfers out of Level 3
|
-
|
-
|
|||
Change in unrealized losses in other comprehensive loss
|
2.7
|
3.9
|
|||
Realized gains/(losses) included in earnings
|
-
|
-
|
|||
Sales/redemptions of assets classified as Level 3
|
-
|
-
|
|||
Ending balance as of December 31
|
$
|
75.6
|
$
|
72.9
|
December 31, 2015
|
||||||||
Fair
Value
|
Valuation
Technique
|
Unobservable
Input
|
Range
|
|||||
Auction rate preferred securities
|
$75.6
|
Effective
interest
|
Market required
effective interest
rate
|
4.0% - 4.8%
|
December 31, 2015
|
December 31, 2014
|
||||
Produced goods
|
$
|
871.5
|
$
|
777.8
|
|
Purchased materials
|
162.6
|
181.5
|
|||
Maintenance and supplies
|
125.4
|
124.5
|
|||
Total Inventory
|
$
|
1,159.5
|
$
|
1,083.8
|
Years Ended December 31,
|
||||||||
2015
|
2014
|
2013
|
||||||
Domestic
|
$
|
728.5
|
$
|
358.5
|
$
|
276.5
|
||
Foreign
|
210.7
|
348.1
|
391.0
|
|||||
Total
|
$
|
939.2
|
$
|
706.6
|
$
|
667.5
|
Years Ended December 31,
|
|||||||||||||||||
2015
|
2014
|
2013
|
|||||||||||||||
Current
|
Deferred
|
Total
|
Current
|
Deferred
|
Total
|
Current
|
Deferred
|
Total
|
|||||||||
Domestic
|
$121.1
|
$92.4
|
$213.5
|
$(30.3)
|
$33.0
|
$ 2.7
|
$213.1
|
$(154.8)
|
$ 58.3
|
||||||||
Foreign
|
121.6
|
(31.2)
|
90.4
|
113.4
|
15.9
|
129.3
|
114.6
|
60.9
|
175.5
|
||||||||
Total
|
$242.7
|
$61.2
|
$303.9
|
$ 83.1
|
$48.9
|
$132.0
|
$327.7
|
$ (93.9)
|
$233.8
|
December 31,
|
|||||||
2015
|
2014
|
||||||
Deferred Tax Assets:
|
|||||||
Implant costs
|
$
|
105.8
|
$
|
132.4
|
|||
Postretirement benefit obligations
|
460.6
|
513.1
|
|||||
Tax loss carryforwards
|
123.7
|
151.4
|
|||||
Tax credit carryforwards
|
257.4
|
427.5
|
|||||
Accruals and other
|
81.5
|
69.8
|
|||||
Inventories
|
29.5
|
18.9
|
|||||
Long-term debt
|
45.5
|
45.5
|
|||||
Investments in partnerships
|
98.8
|
66.0
|
|||||
Deferred revenue
|
159.7
|
172.6
|
|||||
Total deferred tax assets
|
$
|
1,362.5
|
$
|
1,597.2
|
|||
Deferred tax liabilities:
|
|||||||
Property, plant and equipment
|
(860.2)
|
(868.1)
|
|||||
Net deferred tax assets prior to valuation allowance
|
$
|
502.3
|
$
|
729.1
|
|||
Less: Valuation allowance
|
(123.2)
|
(197.9)
|
|||||
Net Deferred Tax Assets
|
$
|
379.1
|
$
|
531.2
|
Years Ended December 31,
|
|||||||||
2015
|
2014
|
2013
|
|||||||
Income Tax Provision at Statutory Rate
|
$
|
328.7
|
$
|
247.3
|
$
|
233.6
|
|||
Increase/(Decrease) in Income Tax Provision due to:
|
|||||||||
Foreign provisions and related items
|
(12.6)
|
(16.8)
|
6.7
|
||||||
Domestic manufacturing deduction
|
(13.6)
|
8.5
|
(20.7)
|
||||||
Valuation allowances
|
(4.0)
|
(4.3)
|
11.7
|
||||||
Change in foreign tax rates
|
7.9
|
-
|
13.1
|
||||||
Tax reserves
|
-
|
-
|
(8.1)
|
||||||
U.S. tax effect of foreign earnings and dividends
|
3.5
|
(93.6)
|
2.9
|
||||||
Other, net
|
(6.0)
|
(9.1)
|
(5.4)
|
||||||
Total Income Tax Provision at Effective Rate
|
303.9
|
132.0
|
233.8
|
||||||
Effective Rate
|
32.4%
|
18.7%
|
35.0%
|
Year
|
Year
|
||||
United Kingdom
|
2013
|
Korea
|
2013
|
||
Belgium
|
2013
|
Brazil
|
2010
|
||
Japan
|
2015
|
China
|
2010
|
||
Germany
|
2011
|
United States
|
2006
|
Years Ended December 31,
|
||||||||
2015
|
2014
|
2013
|
||||||
Unrecognized tax benefits as of January 1,
|
$
|
102.4
|
$
|
89.5
|
$
|
16.9
|
||
Additions based on tax positions related to the current year
|
3.4
|
11.2
|
70.6
|
|||||
Additions for tax positions of prior years
|
72.1
|
16.7
|
33.7
|
|||||
Reductions to tax positions related to the current year
|
-
|
-
|
-
|
|||||
Reductions for tax positions of prior years
|
(1.0)
|
(2.1)
|
(5.6)
|
|||||
Settlements
|
(66.7)
|
(12.9)
|
(26.1)
|
|||||
Balance as of December 31,
|
$
|
110.2
|
$
|
102.4
|
$
|
89.5
|
Previously
Reported
|
Adjustments
|
As Adopted
|
|||||||
Consolidated Balance Sheet
|
|||||||||
Deferred income tax assets - current
|
$
|
263.7
|
$
|
(263.7)
|
$
|
-
|
|||
Deferred income taxes - noncurrent
|
311.0
|
258.5
|
569.5
|
||||||
Deferred income tax liability - current*
|
1.3
|
(1.3)
|
-
|
||||||
Deferred income tax liabilities - noncurrent
|
42.2
|
(3.9)
|
38.3
|
||||||
*presented within Other current liabilities
|
Estimated Useful
|
December 31,
|
|||||||
Life (Years)
|
2015
|
2014
|
||||||
Land
|
-
|
$
|
128.2
|
$
|
138.8
|
|||
Land improvements
|
11-20
|
349.8
|
355.3
|
|||||
Buildings
|
18-33
|
2,208.3
|
2,248.4
|
|||||
Machinery and equipment
|
3-25
|
7,734.5
|
7,774.8
|
|||||
Construction-in-progress
|
-
|
153.1
|
165.8
|
|||||
Total property, plant and equipment
|
$
|
10,573.9
|
$
|
10,683.1
|
||||
Accumulated depreciation
|
(5,487.6)
|
(5,276.3)
|
||||||
Net property, plant and equipment
|
$
|
5,086.3
|
$
|
5,406.8
|
December 31, 2015
|
|||||||||
Gross
Carrying Amount
|
Accumulated
Amortization
|
Net
Carrying Amount
|
|||||||
Patents and licenses
|
$
|
5.6
|
$
|
(4.5)
|
$
|
1.1
|
|||
Completed technology
|
13.3
|
(10.7)
|
2.6
|
||||||
Electricity contract
|
35.3
|
(17.7)
|
17.6
|
||||||
Land use rights
|
49.2
|
(7.9)
|
41.3
|
||||||
Other
|
22.4
|
(21.0)
|
1.4
|
||||||
Total
|
$
|
125.8
|
$
|
(61.8)
|
$
|
64.0
|
|||
December 31, 2014
|
|||||||||
Gross
Carrying Amount
|
Accumulated
Amortization
|
Net
Carrying Amount
|
|||||||
Patents and licenses
|
$
|
5.6
|
$
|
(4.2)
|
$
|
1.4
|
|||
Completed technology
|
13.3
|
(9.8)
|
3.5
|
||||||
Electricity contract
|
35.3
|
(15.8)
|
19.5
|
||||||
Land use rights
|
52.4
|
(7.5)
|
44.9
|
||||||
Other
|
22.7
|
(21.1)
|
1.6
|
||||||
Total
|
$
|
129.3
|
$
|
(58.4)
|
$
|
70.9
|
Years Ended December 31,
|
|||||||||||
2015
|
Rates
|
2014
|
Rates
|
||||||||
Long-term debt
|
|||||||||||
Variable rate notes due 2016
|
$
|
-
|
$
|
150.0
|
1.3%
|
||||||
Fixed rate notes due 2018
|
350.0
|
4.1%
|
350.0
|
4.1%
|
|||||||
Variable rate bonds due 2019
|
0.5
|
0.1%
|
2.0
|
0.2%
|
|||||||
Fixed rate notes due 2021
|
350.0
|
4.8%
|
350.0
|
4.8%
|
|||||||
Other obligations and capital leases
|
90.4
|
1.9-9.0%
|
100.4
|
2.6-9.0%
|
|||||||
Total long-term debt
|
$
|
790.9
|
$
|
952.4
|
|||||||
Less current maturities of long-term debt
|
6.1
|
7.0
|
|||||||||
Total long-term debt due after one year
|
$
|
784.8
|
$
|
945.4
|
2015
|
2014
|
2013
|
|||||||
Beginning balance as of January 1
|
$
|
3,202.3
|
$
|
3,442.6
|
$
|
3,572.3
|
|||
Average price revenue generated
|
-
|
-
|
-
|
||||||
Average price revenue recognized
|
(13.6)
|
(19.4)
|
(15.8)
|
||||||
Advanced payments received
|
-
|
65.8
|
111.2
|
||||||
Advanced payments applied
|
(197.8)
|
(246.6)
|
(175.4)
|
||||||
Contract resolution / other
|
(182.5)
|
(40.1)
|
(49.7)
|
||||||
Ending balance as of December 31
|
$
|
2,808.4
|
$
|
3,202.3
|
$
|
3,442.6
|
U.S. Plans
|
Non-U.S. Plans
|
Total
|
|||||||||||||||
Years Ended December 31,
|
2015
|
2014
|
2013
|
2015
|
2014
|
2013
|
2015
|
2014
|
2013
|
||||||||
Net Periodic Benefit Cost
|
|||||||||||||||||
Service cost
|
$ 71.5
|
$ 49.9
|
$ 61.6
|
$ 13.2
|
$ 13.2
|
$ 26.0
|
$ 84.7
|
$ 63.1
|
$ 87.6
|
||||||||
Interest cost on projected benefit obligations
|
91.3
|
90.3
|
83.1
|
25.6
|
33.7
|
30.5
|
116.9
|
124.0
|
113.6
|
||||||||
Expected return on plan assets
|
(82.4)
|
(74.8)
|
(71.6)
|
(27.8)
|
(34.8)
|
(30.6)
|
(110.2)
|
(109.6)
|
(102.2)
|
||||||||
Amortization of net prior service costs
|
2.4
|
2.4
|
2.4
|
0.9
|
1.0
|
1.2
|
3.3
|
3.4
|
3.6
|
||||||||
Amortization of net losses
|
69.6
|
39.4
|
59.1
|
7.2
|
4.2
|
11.9
|
76.8
|
43.6
|
71.0
|
||||||||
Other adjustments
|
-
|
-
|
-
|
-
|
-
|
2.6
|
-
|
-
|
2.6
|
||||||||
Total
|
$152.4
|
$107.2
|
$134.6
|
$ 19.1
|
$ 17.3
|
$ 41.6
|
$171.5
|
$124.5
|
$176.2
|
U.S. Plans
|
Non-U.S. Plans
|
Total
|
|||||||||||||||
2015
|
2014
|
2015
|
2014
|
2015
|
2014
|
||||||||||||
Amortization of net prior service costs
|
$
|
(2.4)
|
$
|
(2.4)
|
$
|
(0.6)
|
$
|
(0.6)
|
$
|
(3.0)
|
$
|
(3.0)
|
|||||
Amortization of net losses or settlement recognition
|
(69.6)
|
(39.4)
|
(7.7)
|
(4.0)
|
(77.3)
|
(43.4)
|
|||||||||||
Net loss (gain) arising during the year
|
(78.7)
|
377.9
|
(71.1)
|
78.9
|
(149.8)
|
456.8
|
|||||||||||
Total
|
$
|
(150.7)
|
$
|
336.1
|
$
|
(79.4)
|
$
|
74.3
|
$
|
(230.1)
|
$
|
410.4
|
U.S. Plans
|
Non-U.S. Plans
|
Total
|
|||||||||||||||
2015
|
2014
|
2015
|
2014
|
2015
|
2014
|
||||||||||||
Projected benefit obligation
|
$
|
2,329.8
|
$
|
2,458.4
|
$
|
723.3
|
$
|
826.4
|
$
|
3,053.1
|
$
|
3,284.8
|
|||||
Accumulated benefit obligation
|
1,982.8
|
2,080.1
|
705.2
|
808.0
|
2,688.0
|
2,888.1
|
|||||||||||
Fair value of plan assets
|
1,490.2
|
1,483.9
|
581.9
|
608.6
|
2,072.1
|
2,092.5
|
U.S. Plans
|
Non-U.S. Plans
|
Total
|
||||||||||||||||
2015
|
2014
|
2015
|
2014
|
2015
|
2014
|
|||||||||||||
Change in benefit obligation
|
||||||||||||||||||
Projected benefit obligation, beginning of year
|
$
|
2,458.4
|
$
|
1,948.3
|
$
|
951.3
|
$
|
867.9
|
$
|
3,409.7
|
$
|
2,816.2
|
||||||
Service cost
|
71.5
|
49.9
|
13.2
|
13.2
|
84.7
|
63.1
|
||||||||||||
Interest cost
|
91.3
|
90.3
|
25.6
|
33.7
|
116.9
|
124.0
|
||||||||||||
Actuarial (gains) losses
|
(196.5)
|
482.0
|
(80.4)
|
141.4
|
(276.9)
|
623.4
|
||||||||||||
Foreign currency exchange rate changes
|
-
|
-
|
(53.6)
|
(75.9)
|
(53.6)
|
(75.9)
|
||||||||||||
Benefits paid and settlements
|
(94.9)
|
(112.1)
|
(27.7)
|
(29.0)
|
(122.6)
|
(141.1)
|
||||||||||||
Projected benefit obligation, end of year
|
$
|
2,329.8
|
$
|
2,458.4
|
$
|
828.4
|
$
|
951.3
|
$
|
3,158.2
|
$
|
3,409.7
|
||||||
Fair value of plan assets
|
||||||||||||||||||
Fair value of plan assets, beginning of year
|
$
|
1,483.9
|
$
|
1,330.5
|
$
|
697.7
|
$
|
661.1
|
$
|
2,181.6
|
$
|
1,991.6
|
||||||
Actual return on plan assets
|
(35.4)
|
179.0
|
18.4
|
97.2
|
(17.0)
|
276.2
|
||||||||||||
Foreign currency exchange rate changes
|
-
|
-
|
(39.7)
|
(50.0)
|
(39.7)
|
(50.0)
|
||||||||||||
Employer contributions
|
136.6
|
86.5
|
17.5
|
18.4
|
154.1
|
104.9
|
||||||||||||
Benefits paid and settlements
|
(94.9)
|
(112.1)
|
(27.7)
|
(29.0)
|
(122.6)
|
(141.1)
|
||||||||||||
Fair value of plan assets, end of year
|
$
|
1,490.2
|
$
|
1,483.9
|
$
|
666.2
|
$
|
697.7
|
$
|
2,156.4
|
$
|
2,181.6
|
||||||
Funded status of plans
|
$
|
(839.6)
|
$
|
(974.5)
|
$
|
(162.2)
|
$
|
(253.6)
|
$
|
(1,001.8)
|
$
|
(1,228.1)
|
||||||
Accumulated benefit obligation
|
1,928.8
|
2,080.1
|
769.7
|
875.8
|
2,752.5
|
2,955.9
|
December 31, 2015
|
|||||||||||
Level 1
|
Level 2
|
Level 3
|
Total
|
||||||||
Cash and cash equivalents
|
$
|
9.0
|
$
|
-
|
$
|
-
|
$
|
9.0
|
|||
Equity securities
|
198.9
|
3.4
|
-
|
202.3
|
|||||||
Corporate debt securities
|
-
|
370.0
|
-
|
370.0
|
|||||||
U.S. government debt securities
|
-
|
232.1
|
-
|
232.1
|
|||||||
U.S. government guaranteed mortgage backed securities
|
-
|
15.2
|
-
|
15.2
|
|||||||
Other governmental debt securities
|
1.1
|
60.5
|
-
|
61.6
|
|||||||
Investment funds
|
40.8
|
1,222.6
|
-
|
1,263.4
|
|||||||
Other
|
-
|
2.8
|
-
|
2.8
|
|||||||
Total
|
$
|
249.8
|
$
|
1,906.6
|
$
|
-
|
$
|
2,156.4
|
|||
December 31, 2014
|
|||||||||||
Level 1
|
Level 2
|
Level 3
|
Total
|
||||||||
Cash and cash equivalents
|
$
|
5.6
|
$
|
-
|
$
|
-
|
$
|
5.6
|
|||
Equity securities
|
194.5
|
3.6
|
-
|
198.1
|
|||||||
Corporate debt securities
|
-
|
396.4
|
-
|
396.4
|
|||||||
U.S. government debt securities
|
-
|
258.6
|
-
|
258.6
|
|||||||
U.S. government guaranteed mortgage backed securities
|
-
|
24.9
|
-
|
24.9
|
|||||||
Other governmental debt securities
|
1.2
|
75.2
|
-
|
76.4
|
|||||||
Investment funds
|
45.1
|
1,170.3
|
0.4
|
1,215.8
|
|||||||
Other
|
-
|
5.8
|
-
|
5.8
|
|||||||
Total
|
$
|
246.4
|
$
|
1,934.8
|
$
|
0.4
|
$
|
2,181.6
|
Beginning balance as of January 1, 2015
|
$
|
0.4
|
Actual return on assets
|
-
|
|
Purchases
|
-
|
|
Sales
|
(0.4)
|
|
Ending balance as of December 31, 2015
|
$
|
-
|
U.S. Plans
|
Non-U.S. Plans
|
Total
|
|||||||||||||||||
2015
|
2014
|
2015
|
2014
|
2015
|
2014
|
||||||||||||||
Current benefit liabilities
|
$
|
(6.7)
|
$
|
(6.1)
|
$
|
(5.0)
|
$
|
(4.2)
|
$
|
(11.7)
|
$
|
(10.3)
|
|||||||
Noncurrent benefit liabilities
|
(832.9)
|
(968.4)
|
(157.2)
|
(249.4)
|
(990.1)
|
(1,217.8)
|
|||||||||||||
Total recognized liabilities
|
$
|
(839.6)
|
$
|
(974.5)
|
$
|
(162.2)
|
$
|
(253.6)
|
$
|
(1,001.8)
|
$
|
(1,228.1)
|
|||||||
Amounts recognized in accumulated other comprehensive loss (pre-tax)
|
|||||||||||||||||||
Prior service cost
|
$
|
5.7
|
$
|
8.1
|
$
|
3.4
|
$
|
4.4
|
$
|
9.1
|
$
|
12.5
|
|||||||
Net loss
|
914.9
|
1,063.2
|
125.7
|
214.6
|
1,040.6
|
1,277.8
|
|||||||||||||
Accumulated other comprehensive loss
|
$
|
920.6
|
$
|
1,071.3
|
$
|
129.1
|
$
|
219.0
|
$
|
1,049.7
|
$
|
1,290.3
|
Benefit Obligations as of December 31,
|
|||||||||||
U.S. Plans
|
Non-U.S. Plans
|
Total
|
|||||||||
2015
|
2014
|
2015
|
2014
|
2015
|
2014
|
||||||
Discount rate
|
4.2%
|
3.8%
|
3.2%
|
2.8%
|
4.0%
|
3.5%
|
|||||
Rate of increase in future compensation levels
|
4.3%
|
4.3%
|
1.0%
|
1.0%
|
3.4%
|
3.4%
|
Net Periodic Pension Cost for the Years Ended December 31,
|
|||||||||||||||||
U.S. Plans
|
Non-U.S. Plans
|
Total
|
|||||||||||||||
2015
|
2014
|
2013
|
2015
|
2014
|
2013
|
2015
|
2014
|
2013
|
|||||||||
Discount rate
|
3.8%
|
4.8%
|
4.0%
|
2.8%
|
4.0%
|
3.8%
|
3.5%
|
4.5%
|
4.0%
|
||||||||
Rate of increase in future compensation levels
|
4.3%
|
4.3%
|
4.3%
|
1.1%
|
1.0%
|
3.6%
|
3.4%
|
3.4%
|
4.1%
|
||||||||
Expected long-term rate of return on plan assets
|
5.6%
|
5.6%
|
5.6%
|
4.5%
|
5.6%
|
5.6%
|
5.3%
|
5.6%
|
5.6%
|
Estimated Future Benefit Payments
|
||||||
U.S. Plans
|
Non-U.S. Plans
|
Total
|
||||
2016
|
$ 93.6
|
$ 27.1
|
$ 120.7
|
|||
2017
|
95.7
|
29.9
|
125.6
|
|||
2018
|
98.7
|
31.7
|
130.4
|
|||
2019
|
102.0
|
34.0
|
136.0
|
|||
2020
|
106.0
|
32.7
|
138.7
|
|||
2021-2025
|
601.9
|
207.8
|
809.7
|
Years Ended December 31,
|
||||||||||
2015
|
2014
|
2013
|
||||||||
Net Periodic Postretirement Benefit Cost
|
||||||||||
Service cost
|
$
|
4.8
|
$
|
4.7
|
$
|
5.9
|
||||
Interest cost
|
11.9
|
12.7
|
13.4
|
|||||||
Amortization of prior service credits
|
(3.1)
|
(1.5)
|
(1.6)
|
|||||||
Amortization of actuarial losses
|
6.9
|
4.1
|
8.7
|
|||||||
Total
|
$
|
20.5
|
$
|
20.0
|
$
|
26.4
|
Years Ended December 31,
|
|||||
2015
|
2014
|
||||
Amortization of prior service credits
|
$
|
3.1
|
$
|
1.5
|
|
Amortization of loss
|
(6.9)
|
(4.1)
|
|||
Prior service credit arising during the year
|
-
|
(19.7)
|
|||
Net loss (gain) arising during the year
|
(18.9)
|
29.5
|
|||
Total
|
$
|
(22.7)
|
$
|
7.2
|
December 31,
|
|||||||
2015
|
2014
|
||||||
Change in accumulated postretirement benefit obligation
|
|||||||
Accrued postretirement benefit obligation at beginning of year
|
$
|
329.2
|
$
|
320.0
|
|||
Service cost
|
4.8
|
4.7
|
|||||
Interest cost
|
11.9
|
12.7
|
|||||
Actuarial loss/(gain)
|
(18.9)
|
29.5
|
|||||
Plan change
|
-
|
(19.7)
|
|||||
Benefits paid
|
(13.1)
|
(18.0)
|
|||||
Accumulated postretirement benefit obligation at end of year
|
$
|
313.9
|
$
|
329.2
|
|||
Funded status of plans
|
$
|
(313.9)
|
$
|
(329.2)
|
|||
Amounts recognized in the consolidated balance sheets
|
|||||||
Current benefit liabilities
|
$
|
(18.1)
|
$
|
(17.8)
|
|||
Noncurrent benefit liabilities
|
(295.8)
|
(311.4)
|
|||||
|
Total recognized liabilities
|
$
|
(313.9)
|
$
|
(329.2)
|
||
Amounts recognized in accumulated other comprehensive loss (pre-tax)
|
|||||||
Prior service credit
|
$
|
(18.7)
|
$
|
(21.8)
|
|||
Net loss (gain)
|
82.8
|
108.6
|
|||||
Accumulated other comprehensive loss
|
$
|
64.1
|
$
|
86.8
|
Estimated
Postretirement
Benefit
Payments
|
|||
2016
|
$ 18.2
|
||
2017
|
18.5
|
||
2018
|
18.9
|
||
2019
|
19.2
|
||
2020
|
19.5
|
||
2021-2025
|
100.9
|
Foreign currency
translation
adjustment
|
Unrealized net gain
(loss) on available for
sale securities
|
Net gain (loss)
on cash flow
hedges1
|
Unamortized
pension losses and
prior service costs2
|
Accumulated other
comprehensive
income (loss)
|
||||||||||
Balance as of December 31, 2012
|
$
|
217.5
|
$
|
2.0
|
$
|
(3.5)
|
$
|
(852.6)
|
$
|
(636.6)
|
||||
Other comprehensive income before reclassifications
|
11.6
|
3.7
|
-
|
192.9
|
208.2
|
|||||||||
Amounts reclassified from AOCI3
|
-
|
-
|
3.5
|
53.1
|
56.6
|
|||||||||
Net current-period other comprehensive income (loss)
|
11.6
|
3.7
|
3.5
|
246.0
|
264.8
|
|||||||||
Balance as of December 31, 2013
|
$
|
229.1
|
$
|
5.7
|
$
|
-
|
$
|
(606.6)
|
$
|
(371.8)
|
||||
Other comprehensive income before reclassifications
|
(158.1)
|
7.2
|
-
|
(308.3)
|
(459.2)
|
|||||||||
Amounts reclassified from AOCI3
|
-
|
(15.0)
|
-
|
31.6
|
16.6
|
|||||||||
Net current-period other comprehensive income (loss)
|
(158.1)
|
(7.8)
|
-
|
(276.7)
|
(442.6)
|
|||||||||
Balance as of December 31, 2014
|
$
|
71.0
|
$
|
(2.1)
|
$
|
-
|
$
|
(883.3)
|
$
|
(814.4)
|
||||
Other comprehensive income before reclassifications
|
(130.9)
|
2.8
|
2.6
|
108.3
|
(17.2)
|
|||||||||
Amounts reclassified from AOCI3
|
-
|
-
|
-
|
54.4
|
54.4
|
|||||||||
Net current-period other comprehensive income (loss)
|
(130.9)
|
2.8
|
2.6
|
162.7
|
37.2
|
|||||||||
Balance as of December 31, 2015
|
$
|
(59.9)
|
$
|
0.7
|
$
|
2.6
|
$
|
(720.6)
|
$
|
(777.2)
|
Years Ended December 31,
|
||||||||||
2015
|
2014
|
2013
|
||||||||
Net gain (loss) on cash flow hedges:
|
||||||||||
Gain (loss) arising during the period
|
$
|
(1.5)
|
$
|
-
|
$
|
(0.1)
|
||||
Less: reclassification for gain included in income
|
-
|
-
|
(2.0)
|
|||||||
Net unrealized gain (loss) on cash flow hedges
|
(1.5)
|
-
|
(2.1)
|
|||||||
Defined benefit plan adjustments:
|
||||||||||
Net gain (loss) arising during the period
|
(52.1)
|
159.4
|
(99.6)
|
|||||||
Less: amortization of pension adjustments in net income
|
(29.3)
|
(17.5)
|
(28.4)
|
|||||||
Defined benefit plans, net
|
(81.4)
|
141.9
|
(128.0)
|
|||||||
Total tax (expense) benefit
|
$
|
(82.9)
|
$
|
141.9
|
$
|
(130.1)
|
·
|
Future claim filing levels in the Settlement Facility will be similar to the RSP;
|
·
|
Future acceptance rates, disease mix, and payment values will be materially consistent with historical experience;
|
·
|
No material negative outcomes in future controversies or disputes over Plan interpretation will occur; and
|
·
|
The Plan will not be modified.
|
Years Ended December 31,
|
||||||||
2015
|
2014
|
2013
|
||||||
Sales to Dow Chemical
|
$
|
21.5
|
$
|
19.3
|
$
|
17.0
|
||
Sales to Corning
|
15.1
|
15.4
|
18.9
|
|||||
Purchases from Dow Chemical
|
45.9
|
52.4
|
69.3
|
|||||
December 31,
|
||||||||
2015
|
2014
|
|||||||
Accounts receivable from Dow Chemical
|
$
|
1.7
|
$
|
2.1
|
||||
Accounts receivable from Corning
|
0.6
|
1.0
|
||||||
Accounts payable to Dow Chemical
|
2.9
|
3.9
|
Years Ended December 31,
|
||||||||
2015
|
2014
|
2013
|
||||||
Sales to nonconsolidated affiliates and noncontrolling shareholders
|
$
|
472.4
|
$
|
461.1
|
$
|
528.6
|
||
Purchases from nonconsolidated affiliates and noncontrolling shareholders
|
378.1
|
357.0
|
337.6
|
|||||
December 31,
|
||||||||
2015
|
2014
|
|||||||
Accounts receivable from nonconsolidated affiliates and noncontrolling shareholders
|
$
|
54.8
|
$
|
91.6
|
||||
Accounts payable to nonconsolidated affiliates and noncontrolling shareholders
|
38.4
|
24.6
|
Page(s)
|
||
Consolidated Financial Statements
|
||
(in thousands, except share and per share amounts)
|
2013
|
2012
|
|||
Assets
|
|||||
Current assets
|
|||||
Cash and cash equivalents
|
$
|
2,525,381
|
$
|
1,609,360
|
|
Short-term financial instruments
|
190,025
|
844,365
|
|||
Accounts and notes receivable
|
|||||
Customers, net of allowance for doubtful accounts of $5,115 and $5,931
|
74,957
|
110,315
|
|||
Related parties
|
277,845
|
382,994
|
|||
Inventories
|
92,767
|
92,324
|
|||
Current deferred income tax assets, net
|
2,062
|
1,914
|
|||
Assets held for sale
|
292,617
|
313,288
|
|||
Other current assets
|
109,291
|
136,571
|
|||
Total current assets
|
3,564,945
|
3,491,131
|
|||
Equity method investments
|
2,352
|
6,689
|
|||
Property, plant and equipment, net
|
3,336,416
|
3,644,033
|
|||
Non-current deferred income tax assets, net
|
102
|
129
|
|||
Other non-current assets
|
183,048
|
243,704
|
|||
Total assets
|
$
|
7,086,863
|
$
|
7,385,686
|
|
Liabilities and Equity
|
|||||
Current liabilities
|
|||||
Accounts payable
|
|||||
Trade accounts payable
|
$
|
3,025
|
$
|
16,098
|
|
Non-trade accounts payable
|
21,753
|
32,834
|
|||
Related parties
|
50,507
|
78,549
|
|||
Income taxes payable
|
109,787
|
158,126
|
|||
Accrued bonus payable
|
60,198
|
71,667
|
|||
Accrued expenses
|
27,967
|
21,431
|
|||
Liabilities held for sale
|
51,095
|
14,228
|
|||
Other current liabilities
|
13,081
|
12,279
|
|||
Total current liabilities
|
337,413
|
405,212
|
|||
Accrued severance benefits, net
|
-
|
5,975
|
|||
Non-current deferred income tax liabilities, net
|
210,740
|
247,185
|
|||
Total liabilities
|
548,153
|
658,372
|
|||
Commitments and contingencies
|
(in thousands, except share and per share amounts)
|
2013
|
2012
|
|||
Shareholders’ equity
|
|||||
Preferred stock: par value $8.51 per share, 153,190 shares authorized, 41,107 shares issued and outstanding
|
$
|
350
|
$
|
350
|
|
Common stock: par value $10.03 per share, 30,000,000 shares authorized, 17,617,462 shares issued and outstanding
|
176,700
|
176,700
|
|||
Additional paid-in capital
|
312,114
|
312,114
|
|||
Retained earnings
|
5,749,288
|
6,040,493
|
|||
Accumulated other comprehensive income
|
290,078
|
185,480
|
|||
Total Samsung Corning Precision Materials equity
|
6,528,530
|
6,715,137
|
|||
Noncontrolling interests
|
10,180
|
12,177
|
|||
Total equity
|
6,538,710
|
6,727,314
|
|||
Total liabilities and equity
|
$
|
7,086,863
|
$
|
7,385,686
|
(in thousands)
|
2013
|
2012
|
2011
|
|||||
Net sales
|
||||||||
Related parties
|
$
|
1,747,484
|
$
|
2,294,153
|
$
|
2,668,020
|
||
Other
|
401,730
|
670,542
|
1,270,572
|
|||||
2,149,214
|
2,964,695
|
3,938,592
|
||||||
Cost of sales
|
953,254
|
964,623
|
1,051,234
|
|||||
Gross profit
|
1,195,960
|
2,000,072
|
2,887,358
|
|||||
Selling and administrative expenses
|
151,812
|
140,927
|
160,861
|
|||||
Research and development expenses
|
80,012
|
92,661
|
79,902
|
|||||
Royalty expenses to related parties
|
55,572
|
81,616
|
213,838
|
|||||
Operating income
|
908,564
|
1,684,868
|
2,432,757
|
|||||
Other income (expense)
|
||||||||
Interest income (expense), net
|
72,772
|
91,914
|
110,561
|
|||||
Foreign exchange (loss) gain, net
|
(10,784)
|
(35,160)
|
5,450
|
|||||
Charitable donations
|
(26,746)
|
(26,815)
|
(23,737)
|
|||||
Other income (expense), net
|
506
|
(5,205)
|
28,187
|
|||||
Income from continuing operations before income taxes
|
944,312
|
1,709,602
|
2,553,218
|
|||||
Provision for income taxes
|
223,502
|
301,652
|
477,230
|
|||||
Income from continuing operations before equity losses
|
720,810
|
1,407,950
|
2,075,988
|
|||||
Equity losses of affiliated companies
|
(5,198)
|
(39,366)
|
(27,758)
|
|||||
Net income from continuing operations
|
715,612
|
1,368,584
|
2,048,230
|
|||||
Discontinued operations:
|
||||||||
(Loss) income from operations
|
(67,021)
|
30,478
|
23,731
|
|||||
Income tax expense
|
539
|
9,621
|
9,318
|
|||||
Net income (loss) from discontinued operations
|
(67,560)
|
20,857
|
14,413
|
|||||
Net income including noncontrolling interests
|
648,052
|
1,389,441
|
2,062,643
|
|||||
Less: Net (loss) income attributable to the noncontrolling interests
|
(1,299)
|
(116)
|
1,873
|
|||||
Net income attributable to Samsung Corning Precision Materials
|
$
|
649,351
|
$
|
1,389,557
|
$
|
2,060,770
|
||
Income from continuing operations attributable to Samsung Corning Precision Materials
|
716,911
|
1,368,700
|
2,046,357
|
|||||
(Loss) income from discontinued operations attributable to Samsung Corning Precision Materials
|
(67,560)
|
20,857
|
14,413
|
|||||
Net income attributable to Samsung Corning Precision Materials
|
$
|
649,351
|
$
|
1,389,557
|
$
|
2,060,770
|
(in thousands)
|
2013
|
2012
|
2011
|
|||||
Net income including noncontrolling interests
|
$
|
648,052
|
$
|
1,389,441
|
$
|
2,062,643
|
||
Other comprehensive income (loss), before tax:
|
||||||||
Foreign currency translation adjustments
|
137,850
|
771,533
|
(357,249)
|
|||||
Unrealized net gain (loss) on available for sale securities
|
||||||||
Unrealized holding gain (loss) arising during the period
|
(735)
|
3,025
|
(6,358)
|
|||||
Less: reclassification adjustment for gain included in income
|
-
|
-
|
(23,441)
|
|||||
Other comprehensive income (loss), before tax:
|
137,115
|
774,558
|
(387,048)
|
|||||
Income tax (expense) benefit related to items of other comprehensive income (loss)
|
(33,182)
|
(187,443)
|
85,151
|
|||||
Other comprehensive income (loss), net of tax:
|
103,933
|
587,115
|
(301,897)
|
|||||
Comprehensive income including noncontrolling interests
|
751,985
|
1,976,556
|
1,760,746
|
|||||
Less: Comprehensive income attributable to the noncontrolling interests
|
(1,964)
|
1,027
|
1,868
|
|||||
Comprehensive income attributable to Samsung Corning Precision Materials
|
$
|
753,949
|
$
|
1,975,529
|
$
|
1,758,878
|
(in thousands)
|
2013
|
2012
|
2011
|
|||||
Cash flows from operating activities
|
||||||||
Net income including noncontrolling interests
|
$
|
648,052
|
$
|
1,389,441
|
$
|
2,062,643
|
||
Adjustments to reconcile net income to net cash provided by operating activities
|
||||||||
Depreciation
|
315,687
|
334,588
|
388,438
|
|||||
Foreign exchange translation (gain) loss, net
|
(140,325)
|
(116,072)
|
(3,382)
|
|||||
Provision for severance benefits
|
27,212
|
26,924
|
18,385
|
|||||
Deferred income tax expense (benefit)
|
(29,817)
|
16,332
|
(21,829)
|
|||||
Equity losses of affiliated companies
|
5,198
|
39,366
|
27,758
|
|||||
Impairment charges / write-off
|
127,196
|
35,173
|
10,954
|
|||||
Amortization of long-term supply contract payment
|
63,341
|
64,745
|
-
|
|||||
Gain on disposal of property, plant and equipment
|
(13,797)
|
(345)
|
(1)
|
|||||
Other, net
|
1,799
|
(14,335)
|
(991)
|
|||||
Changes in operating assets and liabilities
|
||||||||
Accounts and notes receivable
|
137,300
|
57,017
|
(310,924)
|
|||||
Inventories
|
(29,603)
|
6,651
|
(37,203)
|
|||||
Other current assets
|
82,458
|
(7,111)
|
27,629
|
|||||
Payment on long-term supply contract
|
-
|
-
|
(300,000)
|
|||||
Accounts payable and other current liabilities
|
32,538
|
(25,156)
|
(3,741)
|
|||||
Net cash provided by operating activities
|
1,227,239
|
1,807,218
|
1,857,736
|
|||||
Cash flows from investing activities
|
||||||||
Purchases of property, plant and equipment
|
(303,266)
|
(407,451)
|
(512,797)
|
|||||
Decrease (increase) in short-term financial instruments, net
|
607,475
|
21,611
|
(242,721)
|
|||||
Investment in affiliates
|
-
|
(7,000)
|
-
|
|||||
Change in restricted cash, net
|
3,645
|
(11,974)
|
(17,472)
|
|||||
Net proceeds from sale or disposal of assets
|
157,663
|
85,304
|
24,468
|
|||||
Other, net
|
(2,190)
|
5,880
|
(1,681)
|
|||||
Net cash provided by (used in) investing activities
|
463,327
|
(313,630)
|
(750,203)
|
|||||
Cash flows from financing activities
|
||||||||
Increase in short-term borrowings
|
32,059
|
-
|
-
|
|||||
Acquisition of subsidiary’s stock
|
-
|
-
|
(26,074)
|
|||||
Cash dividends to noncontrolling interests
|
(33)
|
(65)
|
(67)
|
|||||
Cash dividends to Samsung Corning Precision Materials shareholders
|
(940,556)
|
(1,960,667)
|
(1,116,619)
|
|||||
Net cash used in financing activities
|
(908,530)
|
(1,960,732)
|
(1,116,686)
|
|||||
Effect of exchange rate changes on cash and cash equivalents
|
133,985
|
379,536
|
(24,063)
|
|||||
Net increase (decrease) in cash and cash equivalents
|
916,021
|
(87,608)
|
(33,216)
|
|||||
Cash and cash equivalents
|
||||||||
Beginning of year
|
1,635,434
|
1,723,042
|
1,756,258
|
|||||
End of year
|
$
|
2,551,455
|
$
|
1,635,434
|
$
|
1,723,042
|
1.
|
Organization and Nature of Operations
|
2.
|
Summary of Significant Accounting Policies
|
(in thousands)
|
2013
|
2012
|
2011
|
||||||
Non-cash transactions
|
|||||||||
Acquisition of capital assets included in accounts payable
|
$
|
9,364
|
$
|
42,463
|
$
|
31,958
|
|||
Cash paid for interest and income taxes
|
|||||||||
Cash paid for interest
|
-
|
-
|
57
|
||||||
Cash paid for income taxes, net of refund
|
303,094
|
440,157
|
405,278
|
(in thousands)
|
2013
|
2012
|
||||||||||||||||
Cost
|
Gross
unrealized
gains
|
Fair
value
|
Cost
|
Gross
unrealized
gains
|
Fair
value
|
|||||||||||||
Equity securities
|
$
|
103
|
$
|
5,732
|
$
|
5,835
|
$
|
103
|
$
|
6,263
|
$
|
6,366
|
Buildings
|
15–40 years
|
|
Machinery and equipment (excluding precious metals)
|
1.5–8 years
|
|
Vehicle, tools, furniture and fixtures
|
2–8 years
|
(in thousands)
|
2013
|
2012
|
2011
|
||||||
Balance at the beginning of the year
|
$
|
77,907
|
$
|
55,023
|
$
|
41,909
|
|||
Provision for severance benefits
|
24,705
|
24,749
|
16,380
|
||||||
Severance payments
|
(6,799)
|
(7,931)
|
(4,057)
|
||||||
Translation adjustments and other
|
1,849
|
6,066
|
791
|
||||||
97,662
|
77,907
|
55,023
|
|||||||
Less: Cumulative contributions to the National Pension Fund
|
(45)
|
(47)
|
(53)
|
||||||
Severance plan assets
|
(100,800)
|
(71,885)
|
(43,099)
|
||||||
Balance at the end of the year
|
$
|
(3,183)1
|
$
|
5,975
|
$
|
11,871
|
|
1
|
The balance included in other current assets as of December 31, 2013.
|
·
|
Absence of the Company’s 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.
|
3.
|
Discontinued Operation
|
(in thousands)
|
2013
|
2012
|
2011
|
||||||
Discontinued Operations:
|
|||||||||
Net sales
|
$
|
162,366
|
$
|
174,197
|
$
|
232,375
|
|||
Earnings (loss) from discontinued operations
|
(67,021)
|
30,478
|
23,731
|
||||||
Income taxes on discontinued operations
|
(539)
|
(9,621)
|
(9,318)
|
||||||
Net (loss) income from discontinued operations
|
$
|
(67,560)
|
$
|
20,857
|
$
|
14,413
|
(in thousands)
|
2013
|
2012
|
||||
Assets
|
||||||
Accounts and notes receivable, net
|
$
|
29,337
|
$
|
25,949
|
||
Inventories, net
|
102,593
|
76,701
|
||||
Property, plant and equipment, net
|
158,862
|
208,273
|
||||
Other assets
|
1,825
|
2,365
|
||||
Assets of discontinued operations
|
$
|
292,617
|
$
|
313,288
|
||
Liabilities
|
||||||
Accounts payable and accrued expenses
|
$
|
9,538
|
$
|
8,414
|
||
Short-term borrowings1
|
32,059
|
-
|
||||
Other liabilities
|
9,498
|
5,814
|
||||
Liabilities of discontinued operations
|
$
|
51,095
|
$
|
14,228
|
|
1
|
As of December 31, 2013, SCM’s term loan debt was $32,059 thousand, and variable interest rate is contracted. As of December 31, 2013, the weighted average rate was 2.08%. Due to the decision to shut down PV business, the term loan is immediately due and payable.
|
4.
|
Inventories
|
(in thousands)
|
2013
|
2012
|
||||
Finished goods
|
$
|
14,808
|
$
|
13,879
|
||
Semi-finished goods
|
4,685
|
6,783
|
||||
Raw materials
|
17,823
|
21,511
|
||||
Work-in-process
|
768
|
1,046
|
||||
Auxiliary materials
|
54,683
|
49,105
|
||||
$
|
92,767
|
$
|
92,324
|
5.
|
Other Current Assets
|
(in thousands)
|
2013
|
2012
|
||||
Prepaid expenses
|
$
|
79,659
|
$
|
79,926
|
||
Prepaid value added tax
|
-
|
10,907
|
||||
Accrued income receivable
|
4,165
|
17,434
|
||||
Restricted cash
|
24,703
|
28,145
|
||||
Other current assets
|
764
|
159
|
||||
$
|
109,291
|
$
|
136,571
|
6.
|
Equity Method Investments
|
(in thousands)
|
Ownership
interest1
|
2013
|
2012
|
|||||
Affiliated companies accounted for under the equity method
|
||||||||
Corsam Technologies LLC
|
50%
|
$
|
2,352
|
$
|
6,689
|
|
1
|
This reflects the Company’s direct ownership interests in the affiliated company. The Company does not have control of the entity.
|
7.
|
Property, Plant and Equipment
|
(in thousands)
|
2013
|
2012
|
||||
Building
|
$
|
1,744,579
|
$
|
1,765,014
|
||
Machinery and equipment
|
2,623,229
|
2,705,678
|
||||
Vehicle, tools, furniture and fixtures
|
219,722
|
246,189
|
||||
4,587,530
|
4,716,881
|
|||||
Less: accumulated depreciation
|
(1,964,996)
|
(1,859,087)
|
||||
2,622,534
|
2,857,794
|
|||||
Land
|
258,031
|
254,788
|
||||
Construction-in-progress
|
455,851
|
531,451
|
||||
$
|
3,336,416
|
$
|
3,644,033
|
8.
|
Other Non-current Assets
|
(in thousands)
|
2013
|
2012
|
||||
Deposits
|
$
|
30,844
|
$
|
28,424
|
||
Available-for-sale marketable securities
|
5,835
|
6,366
|
||||
Payment on long-term contract
|
132,435
|
195,645
|
||||
Other non-current assets
|
13,934
|
13,269
|
||||
$
|
183,048
|
$
|
243,704
|
9.
|
Impairment Charges
|
10.
|
Transactions with Related Parties
|
2013 (1)
|
Sales4
|
Purchases5
|
Services
Expensed
|
Receivables
|
Payables
|
||||||||||
(in thousands)
|
|||||||||||||||
Samsung affiliates
|
|||||||||||||||
Samsung Display
|
$
|
1,597,601
|
$
|
-
|
$
|
2,475
|
$
|
241,901
|
$
|
281
|
|||||
Samsung C&T Corporation
|
1,170
|
79,460
|
239
|
266
|
11,859
|
||||||||||
Samsung Engineering
|
208
|
5,882
|
6,126
|
-
|
6,968
|
||||||||||
Samsung SDS
|
3,233
|
10,631
|
35,040
|
-
|
14,129
|
||||||||||
SCG
|
100,197
|
-
|
2,910
|
38,010
|
1,187
|
||||||||||
Others
|
160,627
|
20,658
|
39,423
|
10,742
|
6,337
|
||||||||||
1,863,036
|
116,631
|
86,213
|
290,919
|
40,761
|
|||||||||||
Corning
|
161,131
|
36,912
|
62,318
|
1,717
|
11,313
|
||||||||||
$
|
2,024,167
|
$
|
153,543
|
$
|
148,531
|
$
|
292,636
|
$
|
52,074
|
(1)
|
As of and for the year ended December 31, 2013, related parties sales of $83,525 thousand, purchases of $19 thousand and services expenses of $1,653 thousand and related receivables of $14,791 thousand and payables of $1,567 thousand for discontinued operations are included in the above table.
|
2012 (2)
|
Sales4
|
Purchases5
|
Services
Expensed
|
Receivables
|
Payables
|
||||||||||
(in thousands)
|
|||||||||||||||
Samsung affiliates
|
|||||||||||||||
Samsung Display
|
$
|
2,231,298
|
$
|
29,919
|
$
|
2,312
|
$
|
349,236
|
$
|
521
|
|||||
Samsung C&T Corporation
|
22
|
50,334
|
286
|
1
|
25,845
|
||||||||||
Samsung Engineering
|
156
|
36,370
|
147
|
7,201
|
640
|
||||||||||
Samsung SDS
|
60
|
71,945
|
35,828
|
-
|
27,829
|
||||||||||
SCG
|
69,779
|
-
|
1,211
|
-
|
-
|
||||||||||
Others
|
17,968
|
21,557
|
53,296
|
7,412
|
17,417
|
||||||||||
2,319,283
|
210,125
|
93,080
|
363,850
|
72,252
|
|||||||||||
Corning
|
126,041
|
79,691
|
89,535
|
31,836
|
6,386
|
||||||||||
$
|
2,445,324
|
$
|
289,816
|
$
|
182,615
|
$
|
395,686
|
$
|
78,638
|
(2)
|
As of and for the year ended December 31, 2012, related parties sales of $98,271 thousand, purchases of $195 thousand and services expenses of $1,029 thousand and related receivables of $12,692 thousand and payables of $89 thousand for discontinued operations are included in the above table.
|
2011 (3)
|
Sales4
|
Purchases5
|
Services
Expensed
|
Receivables
|
Payables
|
||||||||||
(in thousands)
|
|||||||||||||||
Samsung affiliates
|
|||||||||||||||
Samsung Electronics
|
$
|
2,580,173
|
$
|
-
|
$
|
8,677
|
$
|
317,693
|
$
|
5,480
|
|||||
Samsung C&T Corporation
|
27
|
66,165
|
496
|
2
|
13,790
|
||||||||||
Samsung Engineering
|
1,034
|
41,619
|
1,279
|
53
|
6,881
|
||||||||||
Samsung SDS
|
15
|
13,923
|
19,844
|
6
|
8,928
|
||||||||||
Others
|
62,234
|
23,937
|
98,208
|
5,091
|
28,638
|
||||||||||
2,643,483
|
145,644
|
128,504
|
322,845
|
63,717
|
|||||||||||
Corning
|
108,916
|
102,037
|
226,441
|
1,039
|
5,478
|
||||||||||
$
|
2,752,399
|
$
|
247,681
|
$
|
354,945
|
$
|
323,884
|
$
|
69,195
|
|
(3)
|
As of and for the year ended December 31, 2011, related parties sales of $84,379 thousand, purchases of $8,885 thousand and services expenses of $1,327 thousand and related receivables of $18,165 thousand and payables of $96 thousand for discontinued operations are included in the above table.
|
|
(4)
|
Transfers of machinery and equipment to related parties including SCG, Samsung Electronics, Samsung SDS and Samsung Fine Chemicals are included.
|
|
(5)
|
Purchases of property, plant and equipment are included.
|
11.
|
Fair Value Measurements
|
12.
|
Income Taxes
|
(in thousands)
|
2013
|
2012
|
2011
|
||||||
Current
|
|||||||||
Domestic (Republic of Korea)
|
$
|
253,319
|
$
|
285,320
|
$
|
499,059
|
|||
Foreign
|
-
|
-
|
-
|
||||||
Total current
|
253,319
|
285,320
|
499,059
|
||||||
Deferred
|
|||||||||
Domestic (Republic of Korea)
|
(29,817)
|
16,332
|
(21,829)
|
||||||
Foreign
|
-
|
-
|
-
|
||||||
Total deferred
|
(29,817)
|
16,332
|
(21,829)
|
||||||
Income taxes on continuing operations
|
$
|
223,502
|
$
|
301,652
|
$
|
477,230
|
(in thousands)
|
2013
|
2012
|
2011
|
||||||
Expected taxes at statutory rate
|
$
|
227,265
|
$
|
404,197
|
$
|
611,161
|
|||
Tax exemption for foreign investment
|
-
|
(107,599)
|
(167,302)
|
||||||
Tax rate changes
|
-
|
-
|
29,633
|
||||||
Tax credits, net of surtax effect
|
-
|
(1,032)
|
(13,737)
|
||||||
Others, net
|
(3,763)
|
6,086
|
17,475
|
||||||
Income taxes on continuing operations
|
$
|
223,502
|
$
|
301,652
|
$
|
477,230
|
|||
Effective tax rate
|
23.80%
|
18.06%
|
18.44%
|
(in thousands)
|
2013
|
2012
|
||||
Deferred income tax assets
|
||||||
Property, plant and equipment
|
$
|
11,466
|
$
|
69
|
||
Accrued bonus payables
|
2,557
|
3,625
|
||||
Other current liabilities
|
398
|
794
|
||||
Equity method investments
|
50,887
|
37,618
|
||||
Other
|
3,289
|
1,067
|
||||
Total tax deferred income tax assets
|
68,597
|
43,173
|
||||
Deferred income tax liabilities
|
||||||
Property, plant and equipment, intangible
|
(270,576)
|
(265,746)
|
||||
Reserve for technology development
|
(6,898)
|
(13,622)
|
||||
Available-for-sale securities
|
(1,385)
|
(1,513)
|
||||
Other
|
1,686
|
(7,434)
|
||||
Total tax deferred income tax liabilities
|
(277,173)
|
(288,315)
|
||||
Net deferred income tax liabilities
|
$
|
(208,576)
|
$
|
(245,142)
|
13.
|
Shareholders’ Equity
|
(in thousands)
|
2013
|
2012
|
2011
|
||||||
Preferred Stock
|
$
|
350
|
$
|
350
|
$
|
350
|
|||
Common Stock
|
176,700
|
176,700
|
176,700
|
||||||
Additional Paid-in Capital
|
312,114
|
312,114
|
312,114
|
||||||
Retained Earnings:
|
|||||||||
Balance at the beginning of year
|
6,040,493
|
6,611,603
|
5,538,151
|
||||||
Net income attributable to Samsung Corning Precision Materials
|
649,351
|
1,389,557
|
2,060,770
|
||||||
Dividends paid to preferred shareholders
|
(1,103)
|
(3,288)
|
(2,786)
|
||||||
Dividends paid to common shareholders
|
(939,453)
|
(1,957,379)
|
(984,532)
|
||||||
Balance at end of year
|
5,749,288
|
6,040,493
|
6,611,603
|
||||||
Accumulated Other Comprehensive Income (loss):
|
|||||||||
Balance at the beginning of year
|
185,480
|
(400,492)
|
(98,600)
|
||||||
Other comprehensive income, net of tax
|
|||||||||
Foreign currency translation adjustment
|
105,155
|
583,679
|
(278,649)
|
||||||
Unrealized net gain on available for sale securities
|
(557)
|
2,293
|
(23,243)
|
||||||
Balance at end of year
|
290,078
|
185,480
|
(400,492)
|
||||||
Total Samsung Corning Precision Materials shareholders’ equity
|
6,528,530
|
6,715,137
|
6,700,275
|
||||||
Noncontrolling interests:
|
|||||||||
Balance at the beginning of year
|
12,177
|
11,214
|
35,487
|
||||||
Net (loss) income attributable to noncontrolling interests
|
(1,299)
|
(116)
|
1,873
|
||||||
Cash dividend to noncontrolling interests
|
(33)
|
(64)
|
(67)
|
||||||
Acquisition of subsidiary’s stock
|
-
|
-
|
(26,074)
|
||||||
OCI attributable to noncontrolling interest, net of tax
|
|||||||||
Foreign currency translation adjustment
|
(665)
|
1,143
|
(5)
|
||||||
Balance at end of year
|
10,180
|
12,177
|
11,214
|
||||||
Total equity
|
$
|
6,538,710
|
$
|
6,727,314
|
$
|
6,711,489
|
(in thousands)
|
2013
|
2012
|
||||
Appropriated
|
||||||
Legal reserve
|
$
|
82,339
|
$
|
82,339
|
||
Reserve for business development
|
30,800
|
30,800
|
||||
Reserve for research and manpower development
|
51,733
|
77,600
|
||||
Voluntary reserve
|
4,157
|
4,157
|
||||
169,029
|
194,896
|
|||||
Unappropriated
|
5,580,259
|
5,845,597
|
||||
$
|
5,749,288
|
$
|
6,040,493
|
14.
|
Accumulated Other Comprehensive Income
|
(in thousands)
|
Unrealized
Gains and
Losses on
Available-for-
sale securities
|
Foreign
currency
translation
adjustment
|
Total
|
||||||
Balances at December 31, 2010
|
$
|
25,089
|
$
|
(123,689)
|
$
|
(98,600)
|
|||
Other comprehensive income before reclassifications
|
198
|
(278,649)
|
(278,451)
|
||||||
Amounts reclassified from accumulated other comprehensive income
|
(23,441)
|
-
|
(23,441)
|
||||||
Net current-period other comprehensive income
|
(23,243)
|
(278,649)
|
(301,892)
|
||||||
Balances at December 31, 2011
|
$
|
1,846
|
$
|
(402,338)
|
$
|
(400,492)
|
|||
Other comprehensive income before reclassifications
|
2,293
|
583,679
|
585,972
|
||||||
Amounts reclassified from accumulated other comprehensive income
|
-
|
-
|
-
|
||||||
Net current-period other comprehensive income
|
2,293
|
583,679
|
585,972
|
||||||
Balances at December 31, 2012
|
$
|
4,139
|
$
|
181,341
|
$
|
185,480
|
|||
Other comprehensive income before reclassifications
|
(557)
|
105,155
|
104,598
|
||||||
Amounts reclassified from accumulated other comprehensive income
|
-
|
-
|
-
|
||||||
Net current-period other comprehensive income
|
(557)
|
105,155
|
104,598
|
||||||
Balances at December 31, 2013
|
$
|
3,582
|
$
|
286,496
|
$
|
290,078
|
2013
|
2012
|
2011
|
Affected line item
in the consolidated
statements of income
|
||||||||
Realized gains on available for sale securities
|
$
|
-
|
$
|
-
|
$
|
30,924
|
Other income, net
|
||||
-
|
-
|
(7,483)
|
Tax expense
|
||||||||
$
|
-
|
$
|
-
|
$
|
23,441
|
Net of tax
|
15.
|
Commitments and Contingencies
|
16.
|
Subsequent Event
|
·
|
On January 15, 2014, the Company entered into a 15 year $1,902,359 thousand borrowing from Corning Luxembourg S. àr.l. and the interest rate is 8.0% per annum.
|
·
|
On January 15, 2014, the Company repurchased shares of $1,902,359 thousand from Samsung Display. As a result, Corning obtained full ownership of the Company, formerly an unconsolidated equity venture with Samsung Display.
|
·
|
Amendment to the agreement on a long-term LCD display glass pricing was signed between Corning and Samsung Display on January 15, 2014. The amendment is effective for ten years, accordingly, the term of the TFT-LCD glass substrate long-term supply agreement, effective as of January 1, 2012 will also be extended from January 1, 2014 to December 31, 2023.
|
·
|
On January 17, 2014, the Company has entered into the Business Transfer Agreement with SCG to transfer the Target business at Gumi. On February 1, 2014, the transaction closed. The expected proceeds from this transaction are $158,341 thousand and the expected pre-tax gains are $16,786 thousand.
|
·
|
On January 21, 2014, the Company has entered into the Interest Transfer Agreement of Corsam with SCG to transfer investment in equity of Corsam. The transaction closed on February 1, 2014. No gain and loss expected.
|
·
|
On January 23, 2014, the Company has entered into the Real Property Sale and Purchase Agreement with SCG to transfer the Gumi facilities. On February 1, 2014, the transaction closed. The expected proceeds from this transaction are $83,998 thousand and the expected pre-tax gains are $16,530 thousand.
|
Morgan Stanley
|
MORGAN STANLEY & CO. LLC
1585 BROADWAY
NEW YORK, NY 10036-8293
(212) 761-4000
|
||
To: Corning Incorporated
|
|||
One Riverfront Plaza
|
|||
Corning, NY 14831
|
|||
Attention:
|
Robert Vanni, Assistant Treasurer, Corporate Finance
|
||
Telephone No.:
|
(607) 974-8023
|
||
Facsimile No.:
|
(607) 974-4375
|
||
Re: Master Confirmation—Uncollared Accelerated Share Repurchase
|
|||
This master confirmation (this “Master Confirmation”), dated as of October 28, 2015, is intended to set forth certain terms and provisions of certain Transactions (each, a “Transaction”) entered into from time to time between Morgan Stanley & Co. LLC (“Dealer”), and Corning Incorporated, a New York corporation (“Counterparty”). This Master Confirmation, taken alone, is neither a commitment by either party to enter into any Transaction nor evidence of a Transaction. The additional terms of any particular Transaction shall be set forth in a Supplemental Confirmation in the form of Schedule A hereto (a “Supplemental Confirmation”), which shall reference this Master Confirmation and supplement, form a part of, and be subject to this Master Confirmation. This Master Confirmation and each Supplemental Confirmation together shall constitute a “Confirmation” as referred to in the Agreement specified below.
|
|||
The definitions and provisions contained in the 2002 ISDA Equity Derivatives Definitions (the “Equity Definitions”), as published by the International Swaps and Derivatives Association, Inc., are incorporated into this Master Confirmation. This Master Confirmation and each Supplemental Confirmation evidence a complete binding agreement between Counterparty and Dealer as to the subject matter and terms of each Transaction to which this Master Confirmation and such Supplemental Confirmation relate and shall supersede all prior or contemporaneous written or oral communications with respect thereto.
|
|||
This Master Confirmation and each Supplemental Confirmation supplement, form a part of, and are subject to an agreement in the form of the 2002 ISDA Master Agreement (the “Agreement”) as if Dealer and Counterparty had executed the Agreement on the date of this Master Confirmation (but without any Schedule except for (i) the election of New York law as the governing law (without reference to its choice of law provisions) ; the election that Multiple Transaction Payment Netting apply; (iii) the election that, in Section 5(a)(i) of the Agreement, each occurrence of the word “first” in the third line thereof shall be replaced with “third” and (iv) such other elections set forth in this Master Confirmation.
|
|||
The Transactions shall be the sole Transactions under the Agreement. If there exists any ISDA Master Agreement between Dealer and Counterparty or any confirmation or other agreement between Dealer and Counterparty pursuant to which an ISDA Master Agreement is deemed to exist between Dealer and Counterparty, then notwithstanding anything to the contrary in such ISDA Master Agreement, such confirmation or agreement or any other agreement to which Dealer and Counterparty are parties, the Transactions shall not be considered Transactions under, or otherwise governed by, such existing or deemed ISDA Master Agreement, and the occurrence of any Event of Default or Termination Event under the Agreement with respect to either party or any Transaction shall not, by itself, give rise to any right or obligation under any such other agreement or deemed agreement. Notwithstanding anything to the contrary in any other agreement between the parties or their Affiliates, the Transactions shall not be “Specified Transactions” (or similarly treated) under any other agreement between the parties or their Affiliates.
|
|||
All provisions contained or incorporated by reference in the Agreement shall govern this Master Confirmation and each Supplemental Confirmation except as expressly modified herein or in the related Supplemental Confirmation.
|
If, in relation to any Transaction to which this Master Confirmation and a Supplemental Confirmation relate, there is any inconsistency between the Agreement, this Master Confirmation, such Supplemental Confirmation and the Equity Definitions, the following will prevail for purposes of such Transaction in the order of precedence indicated: (i) such Supplemental Confirmation; (ii) this Master Confirmation; (iii) the Equity Definitions; and (iv) the Agreement.
|
1. Each Transaction constitutes a Share Forward Transaction for the purposes of the Equity Definitions. Set forth below are the terms and conditions that, together with the terms and conditions set forth in the Supplemental Confirmation relating to any Transaction, shall govern such Transaction.
|
General Terms.
|
|||
Trade Date:
|
For each Transaction, as set forth in the related Supplemental Confirmation.
|
||
Buyer:
|
Counterparty
|
||
Seller:
|
Dealer
|
||
Shares:
|
The common stock of Counterparty, par value USD 0.50 per share (Exchange symbol “GLW”).
|
||
Exchange:
|
The New York Stock Exchange
|
||
Related Exchange(s):
|
All Exchanges.
|
||
Prepayment/Variable Obligation:
|
Applicable
|
||
Prepayment Amount:
|
For each Transaction, as set forth in the related Supplemental Confirmation.
|
||
Prepayment Date:
|
For each Transaction, as set forth in the related Supplemental Confirmation.
|
||
Valuation.
|
|||
VWAP Price:
|
For any Scheduled Trading Day, the Rule 10b-18-compliant dollar volume-weighted average price per Share for such day based on transactions executed during such day, as reported on Bloomberg Screen “GLW US <Equity> AQR SEC” (or any successor thereto), or in the event such price is not so reported on such day for any reason or is manifestly incorrect, as determined, in a commercially reasonable manner, by the Calculation Agent for Rule 10b-18-compliant transactions on such day using a volume weighted method.
|
||
Forward Price:
|
For each Transaction, the arithmetic average of the VWAP Prices for all of the Exchange Business Days in the Calculation Period for such Transaction, subject to “Valuation Disruption” below.
|
||
Exchange Business Day:
|
As set forth in the Equity Definitions; provided that any Excluded Days for a Transaction shall not be Exchange Business Days for such Transaction.
|
||
Excluded Days:
|
For each Transaction, as set forth in the related Supplemental Confirmation.
|
||
Forward Price Adjustment Amount:
|
For each Transaction, as set forth in the related Supplemental Confirmation.
|
||
Calculation Period:
|
For each Transaction, the period from, and including, the Calculation Period Start Date for such Transaction to, and including, the Termination Date for such Transaction.
|
||
Calculation Period Start Date:
|
For each Transaction, as set forth in the related Supplemental Confirmation.
|
Termination Date:
|
For each Transaction, the Scheduled Termination Date for such Transaction; provided that Dealer shall have the right to designate any Exchange Business Day on or after the First Acceleration Date to be the Termination Date for all of such Transaction (an “Accelerated Termination Date”) by delivering notice (an “Acceleration Notice”) to Counterparty of any such designation prior to 5:00 p.m. (New York City time) on the Exchange Business Day immediately following the designated Accelerated Termination Date.
|
||
Scheduled Termination Date:
|
For each Transaction, as set forth in the related Supplemental Confirmation, subject to postponement as provided in “Valuation Disruption” below.
|
||
First Acceleration Date:
|
For each Transaction, as set forth in the related Supplemental Confirmation.
|
||
Valuation Disruption:
|
The definition of “Market Disruption Event” in Section 6.3(a) of the Equity Definitions is hereby amended by deleting the words “at any time during the one-hour period that ends at the relevant Valuation Time, Latest Exercise Time, Knock-in Valuation Time or Knock-out Valuation Time, as the case may be” and inserting the words “at any time on any Scheduled Trading Day during the Calculation Period or Settlement Valuation Period” after the word “material,” in the third line thereof.
|
||
Section 6.3(d) of the Equity Definitions is hereby amended by deleting the remainder of the provision following the term “Scheduled Closing Time” in the fourth line thereof.
|
|||
Notwithstanding anything to the contrary in the Equity Definitions, if a Disrupted Day occurs (i) in the Calculation Period, the Calculation Agent may, in its good faith and commercially reasonable discretion, postpone the Scheduled Termination Date, or (ii) in the Settlement Valuation Period, the Calculation Agent may extend the Settlement Valuation Period. The Calculation Agent may also determine that (i) such Disrupted Day is a Disrupted Day in full, in which case the VWAP Price for such Disrupted Day shall not be included for purposes of determining the Forward Price or the Settlement Price, as the case may be, or (ii) such Disrupted Day is a Disrupted Day only in part, in which case the VWAP Price for such Disrupted Day shall be determined by the Calculation Agent based on Rule 10b-18 Eligible Transactions in the Shares on such Disrupted Day taking into account the nature and duration of the relevant Market Disruption Event, and the weighting of the VWAP Price for the relevant Exchange Business Days during the Calculation Period or the Settlement Valuation Period, as the case may be, shall be adjusted in a commercially reasonable manner by the Calculation Agent for purposes of determining the Forward Price or the Settlement Price, as the case may be, with such adjustments based on, among other factors, the duration of any Market Disruption Event and the volume, historical trading patterns and price of the Shares; provided, however, that any Market Disruption Event due to a Regulatory Disruption shall be a Disrupted Day in full. Any Exchange Business Day on which, as of the date hereof, the Exchange is scheduled to close prior to its normal close of trading shall be deemed not to be an Exchange Business Day; if a closure of the Exchange prior to its normal close of trading on any Exchange Business Day is scheduled following the date hereof, then such Exchange Business Day shall be deemed to be a Disrupted Day in full.
|
If a Disrupted Day occurs during the Calculation Period for any Transaction or the Settlement Valuation Period for any Transaction, as the case may be, and each of the nine immediately following Scheduled Trading Days is a Disrupted Day (a “Disruption Event”), then the Calculation Agent, in its good faith and commercially reasonable discretion, may deem such Disruption Event (and each consecutive Disrupted Day thereafter) to be either (x) a Potential Adjustment Event in respect of such Transaction or (y) an Additional Termination Event in respect of such Transaction, with Counterparty as the sole Affected Party and such Transaction as the sole Affected Transaction.
|
|||
Settlement Terms.
|
|||
Settlement Procedures:
|
For each Transaction:
|
||
(i)if the Number of Shares to be Delivered for such Transaction is positive, Physical Settlement shall be applicable to such Transaction; provided that Dealer does not, and shall not, make the agreement or the representations set forth in Section 9.11 of the Equity Definitions related to the restrictions imposed by applicable securities laws with respect to any Shares delivered by Dealer to Counterparty under any Transaction; or
|
|||
(ii)if the Number of Shares to be Delivered for such Transaction is negative, then the Counterparty Settlement Provisions in Annex A hereto shall apply to such Transaction
|
|||
Number of Shares to be Delivered:
|
For each Transaction, a number of Shares (rounded down to the nearest whole number) equal to (a)(i) the Prepayment Amount for such Transaction, divided by (ii)(A) the Forward Price for such Transaction minus (B) the Forward Price Adjustment Amount for such Transaction, minus (b) the number of Initial Shares for such Transaction; provided that if the result of the calculation in clause (a)(ii) is equal to or less than the Floor Price for such Transaction, then the Number of Shares to be Delivered for such Transaction shall be determined as if clause (a)(ii) were replaced with “(ii) the Floor Price for such Transaction”. For the avoidance of doubt, if the Forward Price Adjustment Amount for any Transaction is a negative number, clause (a)(ii) of the immediately preceding sentence shall be equal to (A) the Forward Price for such Transaction, plus (B) the absolute value of the Forward Price Adjustment Amount.
|
||
Floor Price:
|
For each Transaction, as set forth in the related Supplemental Confirmation.
|
||
Excess Dividend Amount:
|
For the avoidance of doubt, all references to the Excess Dividend Amount shall be deleted from Section 9.2(a)(iii) of the Equity Definitions.
|
||
Settlement Date:
|
For each Transaction, if the Number of Shares to be Delivered for such Transaction is positive, the date that is one Settlement Cycle immediately following the Termination Date for such Transaction.
|
||
Settlement Currency:
|
USD
|
Initial Share Delivery:
|
For each Transaction, Dealer shall deliver a number of Shares equal to the Initial Shares for such Transaction to Counterparty on the Initial Share Delivery Date for such Transaction in accordance with Section 9.4 of the Equity Definitions, with such Initial Share Delivery Date deemed to be a “Settlement Date” for purposes of such Section 9.4.
|
||
Initial Share Delivery Date:
|
For each Transaction, as set forth in the related Supplemental Confirmation.
|
||
Initial Shares:
|
For each Transaction, as set forth in the related Supplemental Confirmation.
|
||
Share Adjustments.
|
|||
Potential Adjustment Event:
|
In addition to the events described in Section 11.2(e) of the Equity Definitions, it shall constitute an additional Potential Adjustment Event if (x) the Scheduled Termination Date for any Transaction is postponed pursuant to “Valuation Disruption” above (including, for the avoidance of doubt, pursuant to Section 7 hereof), (y) a Regulatory Disruption as described in Section 7 occurs or (z) a Disruption Event occurs. In the case of any event described in clause (x), (y) or (z) above occurs, the Calculation Agent may, in its commercially reasonable judgment, adjust any relevant terms of such Transaction as necessary to preserve as nearly as practicable the fair value of such Transaction to Dealer prior to such postponement, Regulatory Disruption or Disruption Event, as the case may be, provided that the Calculation Agent shall not adjust any of the dates identified as Calculation Dates in the related Supplemental Confirmation.
|
||
Excess Dividend:
|
For any calendar quarter, any dividend or distribution on the Shares with an ex-dividend date occurring during such calendar quarter (other than any dividend or distribution of the type described in Section 11.2(e)(i) or Section 11.2(e)(ii)(A) of the Equity Definitions or any Extraordinary Dividend) (a “Dividend”) the amount or value of which per Share (as determined by the Calculation Agent), when aggregated with the amount or value (as determined by the Calculation Agent) of any and all previous Dividends with ex-dividend dates occurring in the same calendar quarter, exceeds the Ordinary Dividend Amount.
|
||
Extraordinary Dividend
|
Means the per Share cash dividend or distribution, or a portion thereof, declared by Counterparty on the Shares that is classified by the board of directors of Counterparty as an “extraordinary” dividend. For the avoidance of doubt, no dividend paid on Counterparty’s Fixed Rate Cumulative Convertible Preferred Stock, Series A, par value $100 per share (“Preferred Stock”), shall be considered a Dividend, Excess Dividend or Extraordinary Dividend under this Master Confirmation or any Supplemental Confirmation.
|
||
Consequences of Excess Dividend:
|
The declaration by the Issuer of any Excess Dividend, the ex-dividend date for which occurs or is scheduled to occur during the Relevant Dividend Period for any Transaction, shall, at Dealer’s election in its sole judgment, either (x) constitute an Additional Termination Event in respect of such Transaction, with Counterparty as the sole Affected Party and such Transaction as the sole Affected Transaction or (y) result in an adjustment, by the Calculation Agent, to the Floor Price as the Calculation Agent determines appropriate to account for the economic effect on such Transaction of such Excess Dividend; provided that Dealer’s election must be made within 10 days of the first public announcement of such Excess Dividend.
|
Ordinary Dividend Amount:
|
For each Transaction, as set forth in the related Supplemental Confirmation.
|
|||
Method of Adjustment:
|
Calculation Agent Adjustment
|
|||
Early Ordinary Dividend Payment:
|
For each Transaction, if an ex-dividend date for any Dividend that is not (x) an Excess Dividend or (y) a dividend or distribution of the type described in Section 11.2(e)(i) or Section 11.2(e)(ii)(A) of the Equity Definitions, occurs during any calendar quarter occurring (in whole or in part) during the Relevant Dividend Period for such Transaction and is prior to the Scheduled Ex-Dividend Date for such Transaction for the relevant calendar quarter (as determined by the Calculation Agent), then the Calculation Agent shall make such adjustment to the exercise, settlement, payment or any other terms of the relevant Transaction as the Calculation Agent determines appropriate to account for the economic effect on such Transaction of such event.
|
|||
Scheduled Ex-Dividend Dates:
|
For each Transaction, as set forth in the related Supplemental Confirmation for each calendar quarter.
|
|||
Relevant Dividend Period:
|
For each Transaction, the period from, and including, the Trade Date for such Transaction to, and including, the Relevant Dividend Period End Date for such Transaction.
|
|||
Relevant Dividend Period End Date:
|
For each Transaction, if the Number of Shares to be Delivered for such Transaction is negative, the last day of the Settlement Valuation Period; otherwise, the Termination Date for such Transaction.
|
|||
Extraordinary Events.
|
||||
Consequences of Merger Events:
|
||||
(a) Share-for-Share:
|
Modified Calculation Agent Adjustment
|
|||
(b) Share-for-Other:
|
Cancellation and Payment
|
|||
(c) Share-for-Combined:
|
Component Adjustment
|
|||
Tender Offer:
|
Applicable; provided that (a) Section 12.1(l) of the Equity Definitions shall be amended (i) by deleting the parenthetical in the fifth line thereof, (ii) by replacing “that” in the fifth line thereof with “whether or not such announcement” and (iii) by adding immediately after the words “Tender Offer” in the fifth line thereof “, and any publicly announced change or amendment to such an announcement (including, without limitation, the announcement of an abandonment of such intention)” and (b) Sections 12.3(a) and 12.3(d) of the Equity Definitions shall each be amended by replacing each occurrence of the words “Tender Offer Date” by “Announcement Date.”
|
|||
Consequences of Tender Offers:
|
||||
(a) Share-for-Share:
|
Modified Calculation Agent Adjustment
|
|||
(b) Share-for-Other:
|
Modified Calculation Agent Adjustment
|
|||
(c) Share-for-Combined:
|
Modified Calculation Agent Adjustment
|
Nationalization, Insolvency or Delisting:
|
Cancellation and Payment; provided that in addition to the provisions of Section 12.6(a)(iii) of the Equity Definitions, it shall also constitute a Delisting if the Exchange is located in the United States and the Shares are not immediately re-listed, re-traded or re-quoted on any of the New York Stock Exchange, The NASDAQ Global Select Market or The NASDAQ Global Market (or their respective successors); if the Shares are immediately re-listed, re-traded or re-quoted on any such exchange or quotation system, such exchange or quotation system shall be deemed to be the Exchange.
|
||||
Additional Disruption Events:
|
|||||
(a) Change in Law:
|
Applicable; provided that Section 12.9(a)(ii) of the Equity Definitions is hereby amended by (i) replacing the phrase “the interpretation” in the third line thereof with the phrase “, or public announcement of, the formal or informal interpretation”; provided further that Section 12.9(a)(ii) of the Equity Definitions is hereby amended by replacing the parenthetical beginning after the word “regulation” in the second line thereof with the words “(including, for the avoidance of doubt and without limitation, (x) any tax law or (y) adoption or promulgation of new regulations authorized or mandated by existing statute)”. Notwithstanding the Equity Definitions, the consequence of an occurrence of a Change in Law under clause (y) thereof shall be as set forth under 12.9(b)(vi) of the Equity Definitions.
|
||||
(b) Failure to Deliver:
|
Applicable
|
||||
(c) Insolvency Filing:
|
Applicable
|
||||
(d) Loss of Stock Borrow:
|
Applicable
|
||||
Maximum Stock Loan Rate:
|
For each Transaction, as set forth in the related Supplemental Confirmation.
|
||||
Hedging Party:
|
Dealer
|
||||
Determining Party:
|
Dealer
|
||||
(e) Increased Cost of Stock Borrow:
|
Applicable
|
||||
Initial Stock Loan Rate:
|
For each Transaction, as set forth in the related Supplemental Confirmation.
|
||||
Hedging Party:
|
Dealer
|
||||
Determining Party:
|
Dealer
|
||||
Hedging Adjustments:
|
For the avoidance of doubt, whenever the Calculation Agent is called upon to make an adjustment pursuant to the terms of this Confirmation or the Equity Definitions to take into account the effect of an event, the Calculation Agent shall make such adjustment by reference to the effect of such event on Dealer, assuming that Dealer maintains a commercially reasonable Hedge Position.
|
||||
Non-Reliance/Agreements and Acknowledgements Regarding Hedging Activities/Additional Acknowledgements:
|
Applicable
|
2.
|
Calculation Agent.
|
Dealer; In addition, if at any time an Event of Default occurs or exists with respect to Dealer ,then Counterparty will appoint a third party independent dealer in the relevant market to act as Calculation Agent. For the avoidance of doubt, all calculations and determinations of the Calculation Agent shall be done in a commercially reasonable manner. Following any determination or calculation by the Calculation Agent hereunder, upon a written request by Counterparty, the Calculation Agent will promptly (but in any event no later than five (5) Exchange Business Days following receipt of such written request by Dealer) provide to Counterparty by e-mail to the e-mail address provided by Counterparty in such written request a report (in a commonly used file format for the storage and manipulation of financial data) displaying in reasonable detail the basis for such determination or calculation, as the case may be, it being understood that the Calculation Agent shall not be obligated to disclose any proprietary or confidential models or any other confidential or proprietary information, in each case, used by it for such determination or calculation.
|
||||||||
3.
|
Account Details.
|
|||||||||
(a)
|
Account for payments to Counterparty:
|
|||||||||
Bank:
|
JPMorgan Chase Bank, NA
|
|||||||||
ABA#:
|
021000021
|
|||||||||
Acct No.:
|
XXXXX6911
|
|||||||||
Beneficiary:
|
Corning Incorporated
|
|||||||||
Account for delivery of Shares to Counterparty:
|
||||||||||
DTC 50108
|
||||||||||
(b)
|
Account for payments to Dealer:
|
|||||||||
To be provided separately
|
||||||||||
Account for delivery of Shares to Dealer:
|
||||||||||
To be provided separately
|
||||||||||
4.
|
Offices.
|
|||||||||
(a)
|
The Office of Counterparty for each Transaction is: Inapplicable, Counterparty is not a Multibranch Party.
|
|||||||||
(b)
|
The Office of Dealer for each Transaction is: London
|
|||||||||
5.
|
Notices.
|
|||||||||
(a)
|
Address for notices or communications to Counterparty:
|
|||||||||
Corning Incorporated
|
||||||||||
Attention:
|
Robert P. Vanni
|
|||||||||
Telephone No.:
|
607-974-8023
|
|||||||||
Facsimile No.:
|
607-974-4375
|
|||||||||
Email Address:
|
vannirp@corning.com
|
|||||||||
(b)
|
Address for notices or communications to Dealer:
|
|||||||
Morgan Stanley & Co. LLC
|
||||||||
1585 Broadway
|
||||||||
New York, New York 10036
|
||||||||
Attention:
|
David Oakes
|
|||||||
Telephone No.:
|
212-761-5319
|
|||||||
Email Address:
|
david.oakes@morganstanley.com
|
|||||||
With a copy to:
|
||||||||
Morgan Stanley & Co. LLC
|
||||||||
1585 Broadway
|
||||||||
5th Floor
|
||||||||
New York, New York 10036
|
||||||||
Attention:
|
Anthony Cicia
|
|||||||
Telephone No.:
|
212-762-4828
|
|||||||
Facsimile:
|
212-507-4338
|
|||||||
Email Address:
|
anthony.cicia@morganstanley.com
|
|||||||
6.
|
Representations, Warranties and Agreements.
|
|||||||
(a)
|
Additional Representations, Warranties and Covenants of Each Party. In addition to the representations, warranties and covenants in the Agreement, each party represents, warrants and covenants to the other party that:
|
|||||||
(i)
|
It is an “eligible contract participant” (as such term is defined in the Commodity Exchange Act, as amended).
|
|||||||
(ii)
|
Each party acknowledges that the offer and sale of each Transaction to it is intended to be exempt from registration under the Securities Act of 1933, as amended (the “Securities Act”), by virtue of Section 4(2) thereof. Accordingly, each party represents and warrants to the other that (A) it has the financial ability to bear the economic risk of its investment in each Transaction and is able to bear a total loss of its investment, (B) it is an “accredited investor” as that term is defined under Regulation D under the Securities Act and (C) the disposition of each Transaction is restricted under this Master Confirmation, the Securities Act and state securities laws.
|
|||||||
(b)
|
Additional Representations, Warranties and Covenants of Counterparty. In addition to the representations, warranties and covenants in the Agreement, Counterparty represents, warrants and covenants to Dealer that:
|
|||||||
(i)
|
As of the Trade Date for each Transaction hereunder, (A) such Transaction is being entered into pursuant to a publicly disclosed Share buy-back program and its Board of Directors has approved the use of derivatives to effect the Share buy-back program, and (B) there is no internal policy of Counterparty, whether written or oral, that would prohibit Counterparty from entering into any aspect of such Transaction, including, without limitation, the purchases of Shares to be made pursuant to such Transaction.
|
|||||||
(ii)
|
As of the Trade Date for each Transaction hereunder, the purchase or writing of such Transaction and the transactions contemplated hereby will not violate Rule 13e-1 or Rule 13e-4 under the Exchange Act.
|
(iii)
|
As of the Trade Date for each Transaction hereunder, it is not entering into such Transaction, in each case (A) on the basis of, and is not aware of, any material non-public information regarding Counterparty or the Shares, (B) in anticipation of, in connection with, or to facilitate, a distribution of its securities, a self tender offer or a third-party tender offer in violation of the Exchange Act or (C) to create actual or apparent trading activity in the Shares (or any security convertible into or exchangeable for the Shares) or to raise or depress or otherwise manipulate the price of the Shares (or any security convertible into or exchangeable for the Shares).
|
|||
(iv)
|
Counterparty (A) is capable of evaluating investment risks independently, both in general and with regard to all transactions and investment strategies involving a security or securities; (B) will exercise independent judgment in evaluating the recommendations of any broker-dealer or its associated persons, unless it has otherwise notified the broker-dealer in writing; and (C) has total assets of at least USD 50,000,000 as of the date hereof.
|
|||
(v)
|
As of the Trade Date for each Transaction hereunder, Counterparty is in compliance in all material respects with its reporting obligations under the Exchange Act and its most recent Annual Report on Form 10-K, together with all reports filed by it through the Trade Date pursuant to the Exchange Act, taken together and as amended and supplemented to the date of this representation, do not, as of their respective filing dates, contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading.
|
|||
(vii)
|
The Shares are not, and Counterparty will not cause the Shares to be, subject to a “restricted period” (as defined in Regulation M promulgated under the Exchange Act) at any time during any Regulation M Period (as defined below) for any Transaction unless Counterparty has provided written notice to Dealer of such restricted period not later than the Scheduled Trading Day immediately preceding the first day of such “restricted period”; Counterparty acknowledges that any such notice may cause a Disrupted Day to occur pursuant to Section 7 below; accordingly, Counterparty acknowledges that its delivery of such notice must comply with the standards set forth in Section 7 below. Counterparty is not currently contemplating any “distribution” (as defined in Regulation M promulgated under the Exchange Act) of Shares, or any security for which Shares are a “reference security” (as defined in Regulation M promulgated under the Exchange Act). “Regulation M Period” means, for any Transaction, (A) the Relevant Period (as defined below) for such Transaction, (B) the Settlement Valuation Period, if any, for such Transaction and (C) the Seller Termination Purchase Period (as defined below), if any, for such Transaction. “Relevant Period” means, for any Transaction, the period commencing on the Calculation Period Start Date for such Transaction and ending on the later of (1) the earlier of (x) the Scheduled Termination Date and (y) the last Additional Relevant Day (as specified in the related Supplemental Confirmation) for such Transaction, or such earlier day as elected by Dealer and communicated to Counterparty on such day (or, if later, the First Acceleration Date without regard to any acceleration thereof pursuant to “Special Provisions for Acquisition Transaction Announcements” below) and (2) if Section 14 is applicable to such Transaction, the date on which all deliveries owed pursuant to Section 14 have been made.
|
|||
(viii)
|
As of the Trade Date, the Prepayment Date, the Initial Share Delivery Date, the Settlement Date, any Cash Settlement Payment Date and any Settlement Method Election Date for each Transaction, Counterparty is not “insolvent” (as such term is defined under Section 101(32) of the U.S. Bankruptcy Code (Title 11 of the United States Code) (the “Bankruptcy Code”)) and Counterparty would be able to purchase a number of Shares with a value equal to the Prepayment Amount in compliance with the laws of the jurisdiction of Counterparty’s incorporation.
|
|||
(ix)
|
Counterparty is not, and after giving effect to each Transaction will not be, required to register as an “investment company” as such term is defined in the Investment Company Act of 1940, as amended.
|
(x)
|
Counterparty has not entered, and will not enter, into any repurchase transaction with respect to the Shares (or any security convertible into or exchangeable for the Shares) (including, without limitation, any agreements similar to the Transactions described herein), except with Dealer or any of its affiliates, where any initial hedge period, calculation period, relevant period, settlement valuation period or seller termination purchase period (each however defined) in such other transaction will overlap at any time (including, without limitation, as a result of extensions in such initial hedge period, calculation period, relevant period, settlement valuation period or seller termination purchase period as provided in the relevant agreements) with any Relevant Period, any Settlement Valuation Period (if applicable) or any Seller Termination Purchase Period (if applicable) under this Master Confirmation. In the event that the initial hedge period, relevant period, calculation period or settlement valuation period in any other transaction overlaps with any Relevant Period, any Settlement Valuation Period (if applicable) or any Seller Termination Purchase Period (if applicable) under this Master Confirmation as a result of any postponement of the Scheduled Termination Date or extension of the Settlement Valuation Period pursuant to “Valuation Disruption” above or any analogous provision in such other transaction, Counterparty shall promptly amend such other transaction to avoid any such overlap.
|
|||
(xi)
|
Counterparty shall, at least one day prior to the first day of the Calculation Period, the Settlement Valuation Period, if any, or the Seller Termination Purchase Period, if any, for any Transaction, notify Dealer of the total number of Shares purchased in Rule 10b-18 purchases of blocks pursuant to the once-a-week block exception set forth in paragraph (b)(4) of Rule 10b-18 under the Exchange Act (“Rule 10b-18”) by or for Counterparty or any of its “affiliated purchasers” (as defined in Rule 10b-18) during each of the four calendar weeks preceding such day and during the calendar week in which such day occurs (“Rule 10b-18 purchase” and “blocks” each being used as defined in Rule 10b-18), which notice shall be substantially in the form set forth in Schedule B hereto.
|
|||
(xii)
|
As of the Trade Date for each Transaction hereunder, and as of the date of any election with respect to any Transaction hereunder, there has not been any Merger Announcement (as defined below).
|
|||
(c)
|
Additional Representations, Warranties and Covenants of Dealer. In addition to the representations, warranties and covenants in the Agreement, Dealer represents, warrants and covenants to Counterparty that it has implemented policies and procedures, taking into consideration the nature of its business, reasonably designed to ensure that individuals making investment decisions related to any Transaction would not violate the laws prohibiting trading on the basis of material nonpublic information regarding Issuer.
|
|||
7.
|
Regulatory Disruption. In the event that Dealer concludes, in its good faith and commercially reasonable discretion based on the advice of counsel that it is necessary with respect to any legal, regulatory or self-regulatory requirements or related policies and procedures (whether or not such requirements, policies or procedures are imposed by law or have been voluntarily adopted by Dealer, and provided that such policies or procedures are related to legal or regulatory issues and are generally applicable in similar situations and applied to any Transaction hereunder in a non-discriminatory manner), for it to refrain from or decrease any market activity on any Scheduled Trading Day or Days during the Calculation Period or, if applicable, the Settlement Valuation Period, Dealer may by written notice to Counterparty elect to deem that a Market Disruption Event has occurred and will be continuing on such Scheduled Trading Day or Days.
|
8.
|
Other Provisions
|
|||
(a)
|
Rule 10b-18:
|
|||
(i)
|
Dealer covenants and agrees to use commercially reasonable efforts, during the Calculation Period and any Settlement Valuation Period (as defined in Annex A) for any Transaction, to make all purchases of Shares in connection with such Transaction in a manner that would comply with the limitations set forth in clauses (b)(1), (b)(2), (b)(3) and (b)(4) and (c) of Rule 10b-18, as if such rule were applicable to such purchases and taking into account any applicable Securities and Exchange Commission no-action letters as appropriate, and subject to any delays between the execution and reporting of a trade of the Shares on the Exchange and other circumstances beyond Dealer’s control; provided that, during the Calculation Period, the foregoing agreement shall not apply to purchases made to dynamically hedge for Dealer’s own account or the account of its affiliate(s) the optionality arising under a Transaction (including, for the avoidance of doubt, timing optionality); provided further that, without limiting the generality of the first sentence of this Section 6(c)(i), Dealer shall not be responsible for any failure to comply with Rule 10b-18(b)(3) to the extent any transaction that was executed (or deemed to be executed) by or on behalf of Counterparty or an “affiliated purchaser” (as defined under Rule 10b-18) pursuant to a separate agreement is not deemed to be an “independent bid” or an “independent transaction” for purposes of Rule 10b-18(b)(3).
|
|||
(ii)
|
Except as disclosed to Dealer in writing prior to the Trade Date, Counterparty represents and warrants to Dealer that it has not made any purchases of blocks by or for itself or any of its "affiliated purchasers" pursuant to the one block purchase per week exception in Rule 10b-18(b)(4) under the Exchange Act during each of the four calendar weeks preceding such date ("Rule 10b-18 purchase," "blocks" and "affiliated purchaser", each as defined in Rule 10b-18).
|
|||
(b)
|
10b5-1 Plan:
|
|||
(i)
|
Counterparty is entering into this Master Confirmation and each Transaction hereunder in good faith and not as part of a plan or scheme to evade the prohibitions of Rule 10b5-1 under the Exchange Act (“Rule 10b5-1”) or any other antifraud or anti-manipulation provisions of the federal or applicable state securities laws and that it has not entered into or altered and will not enter into or alter any corresponding or hedging transaction or position with respect to the Shares. Counterparty acknowledges that it is the intent of the parties that each Transaction entered into under this Master Confirmation comply with the requirements of paragraphs (c)(1)(i)(A) and (B) of Rule 10b5-1 and each Transaction entered into under this Master Confirmation shall be interpreted to comply with the requirements of Rule 10b5-1(c).
|
|||
(ii)
|
During the Calculation Period and the Settlement Valuation Period, if any, for any Transaction and in connection with the delivery of any Alternative Delivery Units for any Transaction, Dealer (or its agent or Affiliate) may effect transactions in Shares in connection with such Transaction. The timing of such transactions by Dealer, the price paid or received per Share pursuant to such transactions and the manner in which such transactions are made, including, without limitation, whether such transactions are made on any securities exchange or privately, shall be within the sole judgment of Dealer. Counterparty acknowledges and agrees that all such transactions shall be made in Dealer’s sole judgment and for Dealer’s own account.
|
|||
(iii)
|
Counterparty represents that it does not have, and shall not attempt to exercise, any control or influence over how, when or whether Dealer (or its agent or Affiliate) makes any “purchases or sales” (within the meaning of Rule 10b5-1(c)(1)(i)(B)(3)) in connection with any Transaction, including, without limitation, over how, when or whether Dealer (or its agent or Affiliate) enters into any hedging transactions. Counterparty represents and warrants that it has consulted with its own advisors as to the legal aspects of its adoption and implementation of this Master Confirmation and each Supplemental Confirmation under Rule 10b5-1.
|
(iv)
|
Counterparty acknowledges and agrees that any amendment, modification, waiver or termination of this Master Confirmation or any Supplemental Confirmation must be effected in accordance with the requirements for the amendment or termination of a “plan” as defined in Rule 10b5-1(c). Without limiting the generality of the foregoing, any such amendment, modification, waiver or termination shall be made in good faith and not as part of a plan or scheme to evade the prohibitions of Rule 10b-5, and no such amendment, modification or waiver shall be made at any time at which Counterparty or any officer, director, manager or similar person of Counterparty is aware of any material non-public information regarding Counterparty or the Shares.
|
||||
(v)
|
Counterparty shall not, directly or indirectly, communicate any information relating to the Shares or any Transaction (including, without limitation, any notices required by Section 10(a)) to any employee of Dealer, other than as set forth in the Communications Procedures attached as Annex C hereto.
|
||||
9.
|
Counterparty Purchases. Counterparty (or any “affiliate” or “affiliated purchaser” as defined in Rule 10b-18) shall not, without the prior written consent of Dealer (which written consent shall not be unreasonably withheld or delayed, but it being understood that Dealer may withhold such consent if it determines that such request would adversely impact Dealer’s trading activity in respect of any Transaction), directly or indirectly purchase any Shares (including by means of a derivative instrument), listed contracts on the Shares or securities that are convertible into, or exchangeable or exercisable for Shares (including, without limitation, any Rule 10b-18 purchases of blocks (as defined in Rule 10b-18)) during any Relevant Period, any Settlement Valuation Period (if applicable) or any Seller Termination Purchase Period (if applicable) provided that this Section 9 shall not apply to any of the following: (A) purchases of Shares pursuant to exercises of stock options granted to former or current employees, officers, directors, or other affiliates of Counterparty, including the withholding and/or purchase of Shares from holders of such options to satisfy payment of the option exercise price and/or satisfy tax withholding requirements in connection with the exercise of such options; (B) purchases of Shares from holders of performance shares or units or restricted shares or units to satisfy tax withholding requirements in connection with vesting; (C) the conversion or exchange by holders of any convertible or exchangeable securities of the Counterparty previously issued; (D) purchases of Shares effected by or for a plan by an agent independent of Counterparty that satisfy the requirements of Rule 10b-18(a)(13)(ii); (E) purchases which are not solicited by or on behalf of Counterparty, its “affiliates” or “affiliated purchasers” (each as defined in Rule 10b-18) and are not reasonably expected to result in purchases of Shares in the market; (F) purchases of Preferred Stock; (G) purchases executed by or through Dealer or an Affiliate of Dealer and, if Dealer is requested to make any such purchases, Dealer will endeavor in good faith and in a commercially reasonable manner to fulfill such request, taking into account such factors as it deems appropriate at such time in light of this Transaction and existing liquidity conditions at such time.
|
||||
10.
|
Special Provisions for Merger Transactions. Notwithstanding anything to the contrary herein or in the Equity Definitions:
|
||||
(a)
|
Counterparty agrees that it:
|
||||
(i)
|
will not during the period commencing on the Trade Date for any Transaction and ending on the last day of the Relevant Period or, if applicable, the later of the last day of the Settlement Valuation Period and the last day of the Seller Termination Purchase Period, for such Transaction make, or to the extent it is within its reasonable control, permit to be made, any public announcement (as defined in Rule 165(f) under the Securities Act) of any Merger Transaction or potential Merger Transaction (a “Merger Announcement”) unless such Merger Announcement is made prior to the opening or after the close of the regular trading session on the Exchange for the Shares;
|
||||
(ii)
|
shall promptly (but in any event prior to the next opening of the regular trading session on the Exchange) notify Dealer following any such Merger Announcement that such Merger Announcement has been made; and
|
(iii)
|
shall promptly (but in any event prior to the next opening of the regular trading session on the Exchange) provide Dealer with written notice specifying (i) Counterparty’s average daily Rule 10b-18 Purchases (as defined in Rule 10b-18) during the three full calendar months immediately preceding the announcement date of any Merger Transaction or potential Merger Transaction that were not effected through Dealer or its Affiliates and (ii) the number of Shares purchased pursuant to the proviso in Rule 10b-18(b)(4) under the Exchange Act for the three full calendar months preceding the announcement date of any Merger Transaction or potential Merger Transaction. Such written notice shall be deemed to be a certification by Counterparty to Dealer that such information is true and correct. In addition, Counterparty shall promptly notify Dealer of the earlier to occur of the completion of such transaction and the completion of the vote by target shareholders.
|
|||
(b)
|
Counterparty acknowledges that any such Merger Announcement or delivery of a notice with respect thereto may cause the terms of any Transaction to be adjusted or such Transaction to be terminated; accordingly, Counterparty acknowledges that its delivery of such notice must comply with the standards set forth in Section 8 above.
|
|||
(c)
|
Upon the occurrence of any Merger Announcement (whether made by Counterparty or a third party), Dealer in its sole discretion may (i) make commercially reasonable adjustments to the terms of any Transaction (other than the dates identified as Calculation Dates in the related Supplemental Confirmation) including, without limitation, the Scheduled Termination Date or the Forward Price Adjustment Amount, and/or suspend the Calculation Period and/or any Settlement Valuation Period or (ii) treat the occurrence of such Merger Announcement as an Additional Termination Event with Counterparty as the sole Affected Party and the Transactions hereunder as the Affected Transactions and with the amount under Section 6(e) of the Agreement determined taking into account the fact that the Calculation Period or Settlement Valuation Period, as the case may be, had fewer Scheduled Trading Days than originally anticipated.
|
|||
“Merger Transaction” means any merger, acquisition or similar transaction involving a recapitalization as contemplated by Rule 10b-18(a)(13)(iv) under the Exchange Act, other than, solely for purposes of this Section 10, any such transaction in which the consideration consists solely of cash and there is no valuation period.
|
||||
11.
|
Special Provisions for Acquisition Transaction Announcements. Notwithstanding anything to the contrary herein or in the Equity Definitions:
|
|||
(a)
|
If an Acquisition Transaction Announcement occurs on or prior to the Settlement Date for any Transaction, then the Calculation Agent shall make such adjustments to the exercise, settlement, payment or any of the other terms of such Transaction as the Calculation Agent determines reasonably commercially appropriate (including, without limitation and for the avoidance of doubt, adjustments that would allow the Number of Shares to be Delivered to be less than zero), at such time or at multiple times as the Calculation Agent determines to be commercially reasonably appropriate, to account for the economic effect of such Acquisition Transaction Announcement on such Transaction (including adjustments to account for changes in volatility, expected dividends, stock loan rate, value of any commercially reasonable Hedge Positions in connection with the Transaction and liquidity relevant to the Shares or to such Transaction). If an Acquisition Transaction Announcement occurs after the Trade Date, but prior to the First Acceleration Date of any Transaction, the First Acceleration Date shall be the date of such Acquisition Transaction Announcement. If the Number of Shares to be Delivered for any settlement of any Transaction is a negative number, then the terms of the Counterparty Settlement Provisions in Annex A hereto shall apply.
|
(b)
|
“Acquisition Transaction Announcement” means (i) the announcement of an Acquisition Transaction or an event that, if consummated, would result in an Acquisition Transaction, (ii) an announcement that Counterparty or any of its subsidiaries has entered into an agreement, a letter of intent or an understanding designed to result in an Acquisition Transaction, (iii) the announcement of the intention to solicit or enter into, or to explore strategic alternatives or other similar undertaking that may include, an Acquisition Transaction, (iv) any other announcement that in the reasonable judgment of the Calculation Agent is reasonably likely to result in an Acquisition Transaction, or (v) any announcement of any change or amendment to any previous Acquisition Transaction Announcement (including any announcement of the abandonment of any such previously announced Acquisition Transaction, agreement, letter of intent, understanding or intention). For the avoidance of doubt, announcements as used in the definition of Acquisition Transaction Announcement refer to any public announcement whether made by the Issuer or a third party.
|
|||
(c)
|
“Acquisition Transaction” means (i) any Merger Event (for purposes of this definition the definition of Merger Event shall be read with the references therein to “100%” being replaced by “51%” and references to “50%” being replaced by “75%” and without reference to the clause beginning immediately following the definition of Reverse Merger therein to the end of such definition), Tender Offer or Merger Transaction or any other transaction involving the merger of Counterparty with or into any third party, (ii) the sale or transfer of all or substantially all of the assets of Counterparty, (iii) a recapitalization, reclassification, binding share exchange or other similar transaction with respect to Counterparty, (iv) any acquisition by Counterparty or any of its subsidiaries where the aggregate consideration transferable by Counterparty or its subsidiaries exceeds 50% of the market capitalization of Counterparty, (v) any lease, exchange, transfer, disposition (including, without limitation, by way of spin-off or distribution) of assets (including, without limitation, any capital stock or other ownership interests in subsidiaries) or other similar event by Counterparty or any of its subsidiaries where the aggregate consideration transferable or receivable by or to Counterparty or its subsidiaries exceeds 33% of the market capitalization of Counterparty or (vi) any transaction in which Counterparty or its board of directors has a legal obligation to make a recommendation to its shareholders in respect of such transaction (whether pursuant to Rule 14e-2 under the Exchange Act or otherwise).
|
|||
12.
|
Acknowledgments.
|
|||
(a)
|
The parties hereto intend for:
|
|||
(i)
|
each Transaction to be a “securities contract” as defined in Section 741(7) of the Bankruptcy Code and a “forward contract” as defined in Section 101(25) of the Bankruptcy Code, and the parties hereto to be entitled to the protections afforded by, among other Sections, Sections 362(b)(6), 362(b)(27), 362(o), 546(e), 546(j), 555, 556, 560 and 561 of the Bankruptcy Code;
|
|||
(ii)
|
the Agreement to be a “master netting agreement” as defined in Section 101(38A) of the Bankruptcy Code;
|
|||
(iii)
|
a party’s right to liquidate, terminate or accelerate any Transaction, net out or offset termination values or payment amounts, and to exercise any other remedies upon the occurrence of any Event of Default or Termination Event under the Agreement with respect to the other party or any Extraordinary Event that results in the termination or cancellation of any Transaction to constitute a “contractual right” (as defined in the Bankruptcy Code); and
|
|||
(iv)
|
all payments for, under or in connection with each Transaction, all payments for the Shares (including, for the avoidance of doubt, payment of the Prepayment Amount) and the transfer of such Shares to constitute “settlement payments” and “transfers” (as defined in the Bankruptcy Code).
|
(b)
|
Counterparty acknowledges that:
|
|||
(i)
|
during the term of any Transaction, Dealer and its Affiliates may buy or sell Shares or other securities or buy or sell options or futures contracts or enter into swaps or other derivative securities in order to establish, adjust or unwind its hedge position with respect to such Transaction;
|
|||
(ii)
|
Dealer and its Affiliates may also be active in the market for the Shares and Share-linked transactions other than in connection with hedging activities in relation to any Transaction;
|
|||
(iii)
|
Dealer shall make its own determination as to whether, when or in what manner any hedging or market activities in Counterparty’s securities shall be conducted and shall do so in a manner that it deems appropriate to hedge its price and market risk with respect to the Forward Price and the VWAP Price;
|
|||
(iv)
|
any market activities of Dealer and its Affiliates with respect to the Shares may affect the market price and volatility of the Shares, as well as the Forward Price and VWAP Price, each in a manner that may be adverse to Counterparty; and
|
|||
(v)
|
each Transaction is a derivatives transaction in which it has granted Dealer an option; Dealer may purchase shares for its own account at an average price that may be greater than, or less than, the price paid by Counterparty under the terms of the related Transaction.
|
|||
13.
|
No Collateral, Netting or Setoff. Notwithstanding any provision of the Agreement or any other agreement between the parties to the contrary, the obligations of Counterparty hereunder are not secured by any collateral. Obligations under any Transaction shall not be netted, recouped or set off (including pursuant to Section 6 of the Agreement) against any other obligations of the parties, whether arising under the Agreement, this Master Confirmation or any Supplemental Confirmation, or under any other agreement between the parties hereto, by operation of law or otherwise, and no other obligations of the parties shall be netted, recouped or set off (including pursuant to Section 6 of the Agreement) against obligations under any Transaction, whether arising under the Agreement, this Master Confirmation or any Supplemental Confirmation, or under any other agreement between the parties hereto, by operation of law or otherwise, and each party hereby waives any such right of setoff, netting or recoupment.
|
14.
|
Alternative Termination Settlement. In the event that (a) an Early Termination Date (whether as a result of an Event of Default or a Termination Event) occurs or is designated with respect to any Transaction or (b) any Transaction is cancelled or terminated upon the occurrence of an Extraordinary Event (except as a result of (i) a Nationalization, Insolvency or Merger Event in which the consideration to be paid to holders of Shares consists solely of cash, (ii) a Merger Event or Tender Offer that is within Counterparty’s control, or (iii) an Event of Default in which Counterparty is the Defaulting Party or a Termination Event in which Counterparty is the Affected Party other than an Event of Default of the type described in Section 5(a)(iii), (v), (vi), (vii) or (viii) of the Agreement or a Termination Event of the type described in Section 5(b) of the Agreement, in each case that resulted from an event or events outside Counterparty’s control), if either party would owe any amount to the other party pursuant to Section 6(d)(ii) of the Agreement or any Cancellation Amount pursuant to Article 12 of the Equity Definitions (any such amount, a “Payment Amount”), then, in lieu of any payment of such Payment Amount, unless Counterparty makes an election to the contrary no later than the Early Termination Date or the date on which such Transaction is terminated or cancelled, Counterparty or Dealer, as the case may be, shall deliver to the other party a number of Shares (or, in the case of a Nationalization, Insolvency or Merger Event, a number of units, each comprising the number or amount of the securities or property that a hypothetical holder of one Share would receive in such Nationalization, Insolvency or Merger Event, as the case may be (each such unit, an “Alternative Delivery Unit”) with a value equal to the Payment Amount, as determined by the Calculation Agent over a commercially reasonable period of time (and the parties agree that, in making such determination of value, the Calculation Agent may take into account a number of factors, including, without limitation, the market price of the Shares or Alternative Delivery Units on the Early Termination Date or the date of early cancellation or termination, as the case may be, and, if such delivery is made by Dealer, the prices at which Dealer purchases Shares or Alternative Delivery Units to fulfill its delivery obligations under this Section 14); provided that in determining the composition of any Alternative Delivery Unit, if the relevant Nationalization, Insolvency or Merger Event involves a choice of consideration to be received by holders, such holder shall be deemed to have elected to receive the maximum possible amount of cash; and provided further that Counterparty may elect that the provisions of this Section 15 above providing for the delivery of Shares or Alternative Delivery Units, as the case may be, shall not apply only if Counterparty represents and warrants to Dealer, in writing on the date it notifies Dealer of such election, that, as of such date, Counterparty is not aware of any material non-public information regarding Counterparty or the Shares and is making such election in good faith and not as part of a plan or scheme to evade compliance with the federal securities laws. If delivery of Shares or Alternative Delivery Units, as the case may be, pursuant to this Section 15 is to be made by Counterparty, paragraphs 2 through 7 of Annex A hereto shall apply as if (A) such delivery were a settlement of such Transaction to which Net Share Settlement applied, (B) the Cash Settlement Payment Date were the Early Termination Date or the date of early cancellation or termination, as the case may be, and (C) the Forward Cash Settlement Amount were equal to (x) zero minus (y) the Payment Amount owed by Counterparty. For the avoidance of doubt, if Counterparty validly elects for the provisions of this Section 15 relating to the delivery of Shares or Alternative Delivery Units, as the case may be, not to apply to any Payment Amount, the provisions of Article 12 of the Equity Definitions, or the provisions of Section 6(d)(ii) of the Agreement, as the case may be, shall apply. If delivery of Shares or Alternative Delivery Units, as the case may be, is to be made by Dealer pursuant to this Section 14, the period during which Dealer purchases Shares or Alternative Delivery Units to fulfill its delivery obligations under this Section 14 shall be referred to as the “Seller Termination Purchase Period”.
|
15.
|
Calculations and Payment Date upon Early Termination. The parties acknowledge and agree that in calculating (a) the Close-Out Amount pursuant to Section 6 of the Agreement and (b) the amount due upon cancellation or termination of any Transaction (whether in whole or in part) pursuant to Article 12 of the Equity Definitions as a result of an Extraordinary Event, Dealer may (but need not) determine such amount based on (i) expected losses assuming a commercially reasonable (including, without limitation, with regard to reasonable legal and regulatory guidelines) risk bid were used to determine loss or (ii) the price at which one or more market participants would offer to sell to the Seller a block of shares of Common Stock equal in number to the Seller’s hedge position in relation to the Transaction. Notwithstanding anything to the contrary in Section 6(d)(ii) of the Agreement or Article 12 of the Equity Definitions, all amounts calculated as being due in respect of an Early Termination Date under Section 6(e) of the Agreement or upon cancellation or termination of the relevant Transaction under Article 12 of the Equity Definitions will be payable on the day that notice of the amount payable is effective; provided that if Counterparty elects to receive or deliver Shares or Alternative Delivery Units in accordance with Section 14, such Shares or Alternative Delivery Units shall be delivered on a date selected by Dealer as promptly as practicable.
|
16.
|
Limit on Beneficial Ownership. Notwithstanding anything to the contrary in this Master Confirmation, Counterparty acknowledges and agrees that, on any day, Dealer shall not be obligated to receive from Counterparty any Shares, and Counterparty shall not be entitled to deliver to Dealer any Shares, to the extent (but only to the extent) that after such transactions Dealer’s ultimate parent entity would directly or indirectly “beneficially own” (as such term is defined for purposes of Section 13(d) of the Exchange Act) at any time on such day in excess of 8% of the outstanding Shares. Any purported receipt of Shares shall be void and have no effect to the extent (but only to the extent) that after such receipt, Dealer’s ultimate parent entity would directly or indirectly so beneficially own in excess of 8% of the outstanding Shares. If, on any day, any receipt of Shares by Dealer is not effected, in whole or in part, as a result of this Section 16, Counterparty’s obligations to deliver such Shares shall not be extinguished and any such delivery shall be effected over time by Counterparty as promptly as Dealer determines, such that after any such delivery, Dealer’s ultimate parent entity would not directly or indirectly beneficially own in excess of 8% of the outstanding Shares.
|
||
17.
|
Maximum Share Delivery. Notwithstanding anything to the contrary in this Master Confirmation, in no event shall Dealer be required to deliver any Shares, or any Shares or other securities comprising Alternative Delivery Units, in respect of any Transaction in excess of the Maximum Number of Shares set forth in the Supplemental Confirmation for such Transaction, as such number may be proportionately adjusted by the Calculation Agent to reflect stock splits or similar events.
|
||
18.
|
Additional Termination Events.
|
||
(a)
|
Notwithstanding anything to the contrary in Section 6 of the Agreement, if a Termination Price is specified in the Supplemental Confirmation for any Transaction, then an Additional Termination Event will occur without any notice or action by Dealer or Counterparty if the closing price of the Shares on the Exchange for any two consecutive Exchange Business Days falls below such Termination Price and for the purposes of the Agreement, such second consecutive Exchange Business Day will be the “Early Termination Date”; and
|
||
(b)
|
[Reserved]
|
||
19.
|
Non-confidentiality. Notwithstanding any provision in this Master Confirmation to the contrary, in connection with Section 1.6011-4 of the Treasury Regulations, the parties hereby agree that each party (and each employee, representative, or other agent of such party) may disclose to any and all persons, without limitation of any kind, the U.S. tax treatment and U.S. tax structure of any Transaction and all materials of any kind (including opinions or other tax analyses) that are provided to such party relating to such U.S. tax treatment and U.S. tax structure, other than any information for which nondisclosure is reasonably necessary in order to comply with applicable securities laws.
|
||
20.
|
Counterparty Indemnification. Counterparty agrees to indemnify and hold harmless Dealer and its officers, directors, employees, Affiliates, advisors, agents and controlling persons (each, an “Indemnified Person”) from and against any and all losses, claims, damages and liabilities, joint or several (collectively, “Obligations”), to which an Indemnified Person may become subject arising out of or attributable to: (a) any breach by Counterparty of its obligations under this Master Confirmation; (b) the incorrectness or inaccuracy of any of Counterparty’s representations or warranties; or (c) any violation by Counterparty of applicable laws or regulations relating to this Master Confirmation or any Transaction, or any claim, litigation, investigation or proceeding relating thereto, regardless of whether any of such Indemnified Person is a party thereto, and to reimburse, upon written request, each such Indemnified Person for any reasonable legal or other expenses incurred in connection with investigating, preparation for, providing evidence for or defending any of the foregoing; provided, however, that Counterparty shall not have any liability to any Indemnified Person to the extent that such Obligations (a) are finally determined by a court of competent jurisdiction to have resulted from the gross negligence, bad faith, breach of agreement or willful misconduct of such Indemnified Person (and in such case, such Indemnified Person shall promptly return to Counterparty any amounts previously expended by Counterparty hereunder) or (b) are trading losses incurred by Dealer as part of its purchases or sales of Shares pursuant to this Master Confirmation or any Supplemental Confirmation (unless such trading losses are a direct result of the breach of any agreement, term or covenant herein).
|
21.
|
Assignment and Transfer. Notwithstanding anything to the contrary in the Agreement, Dealer may assign any of its rights or duties hereunder to any one or more of its Affiliates organized in the United States (or any State thereof) or in England whose obligations hereunder are guaranteed by Dealer without the prior written consent of Counterparty subject to (A) the following conditions:
|
||
(i) Counterparty will not be required to pay to the transferee an amount in respect of an Indemnifiable Tax under Section 2(d)(i)(4) of the Agreement (except in respect of interest under Section 2(e), 6(d)(ii), or 6(e)) greater than the amount in respect of which Counterparty would have been required to pay to Dealer in the absence of such transfer;
|
|||
(ii) Counterparty will not receive a payment from which an amount has been withheld or deducted, on account of a Tax under Section 2(d)(i) (except in respect of interest under Section 2(e), 6(d)(ii), or 6(e) of the Agreement), in excess of that which Dealer would have been required to so withhold or deduct in the absence of such transfer, unless the transferee would be required to make additional payments pursuant to Section 2(d)(i)(4) of the Agreement corresponding to such withholding or deduction;
|
|||
(iii) It is not unlawful for either party to perform any obligation under the Agreement or the Transaction as a result of such transfer; and
|
|||
(iv) An Extraordinary Event, Announcement Event, Potential Adjustment Event, Event of Default or Termination Event does not occur as a result of such transfer;
|
|||
Notwithstanding any other provision in this Master Confirmation to the contrary requiring or allowing Dealer to purchase, sell, receive or deliver any Shares or other securities to or from Counterparty, Dealer may designate any of its Affiliates to purchase, sell, receive or deliver such Shares or other securities and otherwise to perform Dealer’s obligations in respect of any Transaction and any such designee may assume such obligations. Dealer may assign the right to receive Settlement Shares to any third party who may legally receive Settlement Shares. Dealer shall be discharged of its obligations to Counterparty only to the extent of any such performance. For the avoidance of doubt, Dealer hereby acknowledges that notwithstanding any such designation hereunder, to the extent any of Dealer’s obligations in respect of any Transaction are not completed by its designee, Dealer shall be obligated to continue to perform or to cause any other of its designees to perform in respect of such obligations.
|
|||
22.
|
Amendments to the Equity Definitions.
|
||
(a)
|
Section 11.2(e) of the Equity Definitions is hereby amended by deleting items (iii) and (v) in their entirety.
|
||
(b)
|
Section 12.9(b)(v) of the Equity Definitions is hereby amended by adding the phrase "; provided that the Non-Hedging Party may so elect to terminate the Transaction only if the Non-Hedging Party notifies the Hedging Party, in writing, of such election, which writing shall state that, as of such date, the Non-Hedging Party is making such election in good faith and not as part of a plan or scheme to evade compliance with the federal securities laws" immediately prior to the period at the end of subsection (C).
|
||
23.
|
Extraordinary Dividend. If Counterparty declares any Extraordinary Dividend that has an ex-dividend date during the period commencing on the Trade Date for any Transaction and ending on the last day of the Relevant Period or, if applicable, the later of the last day of the Settlement Valuation Period and the last day of the Seller Termination Purchase Period, for such Transaction, then prior to or on the date on which such Extraordinary Dividend is paid by Counterparty to holders of record, Counterparty shall pay to Dealer, for each Transaction under this Master Confirmation, an amount in cash equal to the product of (i) the amount of such Extraordinary Dividend and (ii) the theoretical short delta number of shares as of the opening of business on the related ex-dividend date, as determined by the Calculation Agent, required for Dealer to hedge its exposure to such Transaction.
|
24.
|
Status of Claims in Bankruptcy. Dealer acknowledges and agrees that neither this Master Confirmation nor any Supplemental Confirmation is intended to convey to Dealer rights against Counterparty with respect to any Transaction that are senior to the claims of common stockholders of Counterparty in any United States bankruptcy proceedings of Counterparty; provided that nothing herein shall limit or shall be deemed to limit Dealer’s right to pursue remedies in the event of a breach by Counterparty of its obligations and agreements with respect to any Transaction; provided further that nothing herein shall limit or shall be deemed to limit Dealer’s rights in respect of any transactions other than any Transaction.
|
||
25.
|
Wall Street Transparency and Accountability Act. In connection with Section 739 of the Wall Street Transparency and Accountability Act of 2010 (“WSTAA”), the parties hereby agree that neither the enactment of WSTAA or any regulation under the WSTAA, nor any requirement under WSTAA or an amendment made by WSTAA, nor any similar legal certainty provision in any legislation enacted, or rule or regulation promulgated, on or after the date of this Master Confirmation, shall limit or otherwise impair either party’s otherwise applicable rights to terminate, renegotiate, modify, amend or supplement any Supplemental Confirmation, this Master Confirmation or the Agreement, as applicable, arising from a termination event, force majeure, illegality, increased costs, regulatory change or similar event under any Supplemental Confirmation, this Master Confirmation, the Equity Definitions incorporated herein, or the Agreement (including, without limitation, rights arising from Change in Law, Loss of Stock Borrow, Increased Cost of Stock Borrow, or Illegality).
|
||
26.
|
Waiver of Jury Trial. EACH PARTY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY SUIT, ACTION OR PROCEEDING RELATING TO THE AGREEMENT, THIS MASTER CONFIRMATION, EACH SUPPLEMENTAL CONFIRMATION, THE TRANSACTIONS HEREUNDER AND ALL MATTERS ARISING IN CONNECTION WITH THE AGREEMENT, THIS MASTER CONFIRMATION AND ANY SUPPLEMENTAL CONFIRMATION AND THE TRANSACTIONS HEREUNDER. EACH PARTY (I) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF THE OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF SUCH A SUIT, ACTION OR PROCEEDING, SEEK TO ENFORCE THE FOREGOING WAIVER AND (II) ACKNOWLEDGES THAT IT AND THE OTHER PARTY HAVE BEEN INDUCED TO ENTER INTO THE TRANSACTIONS, AS APPLICABLE, BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS PROVIDED HEREIN.
|
||
27.
|
Counterparts. This Master Confirmation may be executed in any number of counterparts, all of which shall constitute one and the same instrument, and any party hereto may execute this Master Confirmation by signing and delivering one or more counterparts.
|
Very truly yours,
|
||||
MORGAN STANLEY & CO. LLC
|
||||
By:
|
/s/ Scott McDavid
|
|||
Authorized Signatory
|
||||
Name:
|
Scott McDavid, Managing Director
|
Accepted and confirmed
as of the date first set
forth above:
|
|||
CORNING INCORPORATED
|
|||
By:
|
/s/ Robert Vanni
|
||
Authorized Signatory
|
|||
Name:
|
/s/ Robert Vanni
|
MORGAN STANLEY & CO. LLC
|
October [_], 2015
|
To:
|
Corning Incorporated
|
|
[_______________]
|
||
[_______________]
|
||
Attention:
|
[Title of contact]
|
|
Telephone No.:
|
[____________]
|
|
Facsimile No.:
|
[____________]
|
Re:
|
Supplemental Confirmation—Uncollared Accelerated Share Repurchase
|
The purpose of this Supplemental Confirmation is to confirm the terms and conditions of the Transaction entered into between Morgan Stanley & Co. LLC (“Dealer”), and Corning Incorporated, a New York corporation (“Counterparty”) on the Trade Date specified below. This Supplemental Confirmation is a binding contract between Dealer and Counterparty as of the relevant Trade Date for the Transaction referenced below.
|
|
1. This Supplemental Confirmation supplements, forms part of, and is subject to the Master Confirmation, dated as of [ ] (the “Master Confirmation”), between Dealer and Counterparty, as amended and supplemented from time to time. All provisions contained in the Master Confirmation govern this Supplemental Confirmation except as expressly modified below.
|
|
2. The terms of the Transaction to which this Supplemental Confirmation relates are as follows:
|
|
Trade Date:
|
[__________], 2015
|
Forward Price Adjustment Amount:
|
USD [___]
|
Calculation Period Start Date:
|
The [__]th Scheduled Trading Day immediately following the Trade Date.
|
Scheduled Termination Date:
|
[ ]
|
First Acceleration Date:
|
[ ].
|
Prepayment Amount:
|
USD [___]
|
Prepayment Date:
|
[__________], 2015
|
Initial Shares:
|
[___] Shares; provided that if, in connection with the Transaction, Dealer is unable, after using commercially reasonable efforts, to borrow or otherwise acquire a number of Shares equal to the Initial Shares for delivery to Counterparty on the Initial Share Delivery Date, the Initial Shares delivered on the Initial Share Delivery Date shall be reduced to such number of Shares that Dealer is able to so borrow or otherwise acquire provided further that (i) if the Initial Shares are reduced as provided in the preceding proviso, then Dealer shall use commercially reasonable efforts to borrow or otherwise acquire an additional number of Shares equal to the shortfall in the Initial Shares delivered on the Initial Share Delivery Date and shall deliver such additional Shares as promptly as practicable, and all Shares so delivered shall be considered Initial Shares, and (ii) if fewer than [same number as above] Initial Shares are so delivered in the aggregate on or prior to the second Exchange Business Day following the Initial Share Delivery Date, then (A) the Prepayment Amount shall be reduced by an amount equal to (x)(I) [same number as above] minus (II) the aggregate number of Initial Shares so delivered on or prior to such second Exchange Business Day multiplied by (y) USD [insert closing price on the Trade Date] divided by (z) [ ], and (B) Dealer shall return to Counterparty on such second Exchange Business Day the amount by which the Prepayment Amount is so reduced. All Shares delivered to Counterparty in respect of the Transaction pursuant to this paragraph shall be the “Initial Shares” for purposes of “Number of Shares to be Delivered” in the Master Confirmation.
|
Initial Share Delivery Date:
|
[__________], 20[__]
|
Ordinary Dividend Amount:
|
For any Dividend before the Termination Date, USD [___] per Share
|
For any Dividend after the Termination Date, USD 0.00 per Share
|
|
Scheduled Ex-Dividend Dates:
|
[__________]
|
Maximum Stock Loan Rate:
|
400 basis points per annum
|
Initial Stock Loan Rate:
|
60 basis points per annum
|
Maximum Number of Shares:
|
[___]Shares
|
Floor Price:
|
USD 0.01 per Share
|
Termination Price:
|
USD [___] per Share
|
Excluded Days:
|
N/A
|
Additional Relevant Days:
|
N/A
|
Reserved Shares:
|
Notwithstanding anything to the contrary in the Master Confirmation, as of the date of this Supplemental Confirmation, the Reserved Shares shall be equal to [___] Shares.
|
3. Counterparty represents and warrants to Dealer that neither it nor any “affiliated purchaser” (as defined in Rule 10b-18 under the Exchange Act) has made any purchases of blocks pursuant to the proviso in Rule 10b-18(b)(4) under the Exchange Act during either (i) the four full calendar weeks immediately preceding the Trade Date or (ii) during the calendar week in which the Trade Date occurs, except as set forth in any notice delivered pursuant to Section 6(b)(xv) of the Master Confirmation.
|
4. This Supplemental Confirmation may be executed in any number of counterparts, all of which shall constitute one and the same instrument, and any party hereto may execute this Supplemental Confirmation by signing and delivering one or more counterparts.
|
Please confirm that the foregoing correctly sets forth the terms of our agreement by executing this Supplemental Confirmation and returning it to us.
|
Very truly yours,
|
||||
MORGAN STANLEY & CO. LLC
|
||||
By:
|
||||
Authorized Signatory
|
||||
Name:
|
Accepted and confirmed
as of the Trade Date:
|
|||
CORNING INCORPORATED
|
|||
By:
|
|||
Authorized Signatory
|
|||
Name:
|
CORNING INCORPORATED
|
||
By:
|
||
Authorized Signatory
|
||
Name:
|
1. The following Counterparty Settlement Provisions shall apply to any Transaction to the extent indicated under the Master Confirmation:
|
Settlement Currency:
|
USD
|
Settlement Method Election:
|
Applicable; provided that (i) Section 7.1 of the Equity Definitions is hereby amended by deleting the word “Physical” in the sixth line thereof and replacing it with the words “Net Share” and (ii) the Electing Party may make a settlement method election only if the Electing Party represents and warrants to Dealer in writing on the date it notifies Dealer of its election that, as of such date, the Electing Party is not aware of any material non-public information regarding Counterparty or the Shares and is electing the settlement method in good faith and not as part of a plan or scheme to evade compliance with the federal securities laws.
|
Electing Party:
|
Counterparty
|
Settlement Method Election Date:
|
Subsequent to the expiration of the Settlement Valuation Period, the earlier of (i) the date on which Counterparty is able to make the representation and warranty required for such election, as provided under “Settlement Method Election”, and (ii) the 45th calendar day following the conclusion of the Settlement Valuation Period.
|
Default Settlement Method:
|
Cash Settlement
|
Forward Cash Settlement Amount:
|
An amount equal to (a) the Number of Shares to be Delivered, multiplied by (b) the Settlement Price.
|
Settlement Price:
|
The average of the 10b-18 VWAP prices for the Exchange Business Days in the Settlement Valuation Period, subject to Valuation Disruption as specified in the Confirmation.
|
Settlement Valuation Period:
|
A number of Scheduled Trading Days selected by Dealer in its reasonable discretion by notice to Counterparty on or prior to the second Schedule Trading Day prior to the last Scheduled Trading Day thereof, beginning on the Scheduled Trading Day immediately following the earlier of (i) the Scheduled Termination Date or (ii) the Exchange Business Day immediately following the Termination Date.
|
Cash Settlement:
|
If Cash Settlement is applicable, then Buyer shall pay to Dealer the absolute value of the Forward Cash Settlement Amount on the Cash Settlement Payment Date.
|
Cash Settlement Payment Date:
|
The Exchange Business Day immediately following the date of Counterparty’s Settlement Method Election or, if no election is made, the Settlement Method Election Date.
|
Net Share Settlement Procedures:
|
If Net Share Settlement is applicable, Net Share Settlement shall be made in accordance with paragraphs 2 through 7 below.
|
|
ANNEX A
|
2. Net Share Settlement shall be made by delivery on the Cash Settlement Payment Date of a number of Shares satisfying the conditions set forth in paragraph 3 below (the “Registered Settlement Shares”), or a number of Shares not satisfying such conditions (the “Unregistered Settlement Shares”), in either case with a value equal to 101% (in the case of Registered Settlement Shares) or 105% (in the case of Unregistered Settlement Shares) of the absolute value of the Forward Cash Settlement Amount, with such Shares’ value based on the value thereof to Dealer (which value shall, in the case of Unregistered Settlement Shares, take into account a commercially reasonable illiquidity discount), in each case as determined by the Calculation Agent. If all of the conditions for delivery of either Registered Settlement Shares or Unregistered Settlement Shares have not been satisfied, Cash Settlement shall be applicable in accordance with paragraph 1 above notwithstanding Counterparty’s election of Net Share Settlement.
|
3. Counterparty may only deliver Registered Settlement Shares pursuant to paragraph 2 above if:
|
(a) a registration statement covering public resale of the Registered Settlement Shares by Dealer (the “Registration Statement”) shall have been filed with the Securities and Exchange Commission under the Securities Act and been declared or otherwise become effective on or prior to the date of delivery, and no stop order shall be in effect with respect to the Registration Statement; a printed prospectus relating to the Registered Settlement Shares (including, without limitation, any prospectus supplement thereto, the “Prospectus”) shall have been delivered to Dealer, in such quantities as Dealer shall reasonably have requested, on or prior to the date of delivery;
|
(b) the form and content of the Registration Statement and the Prospectus (including, without limitation, any sections describing the plan of distribution) shall be satisfactory to Dealer;
|
(c) as of or prior to the date of delivery, Dealer and its agents shall have been afforded a reasonable opportunity to conduct a due diligence investigation with respect to Counterparty customary in scope for underwritten offerings of equity securities and the results of such investigation are satisfactory to Dealer, in its discretion; and
|
(d) as of the date of delivery, an agreement (the “Underwriting Agreement”) shall have been entered into with Dealer in connection with the public resale of the Registered Settlement Shares by Dealer substantially similar to underwriting agreements customary for underwritten offerings of equity securities, in form and substance satisfactory to Dealer, which Underwriting Agreement shall include, without limitation, provisions substantially similar to those contained in such underwriting agreements relating, without limitation, to the indemnification of, and contribution in connection with the liability of, Dealer and its Affiliates and the provision of customary opinions, accountants’ comfort letters and lawyers’ negative assurance letters.
|
4. If Counterparty delivers Unregistered Settlement Shares pursuant to paragraph 2 above:
|
(a) all Unregistered Settlement Shares shall be delivered to Dealer (or any Affiliate of Dealer designated by Dealer) pursuant to the exemption from the registration requirements of the Securities Act provided by Section 4(2) thereof;
|
(b) as of or prior to the date of delivery, Dealer and any potential purchaser of any such shares from Dealer (or any Affiliate of Dealer designated by Dealer) identified by Dealer shall be afforded a commercially reasonable opportunity to conduct a due diligence investigation with respect to Counterparty customary in scope for similar size of private placements of equity securities (including, without limitation, the right to have made available to them for inspection all financial and other records, pertinent corporate documents and other information reasonably requested by them); provided that prior to receiving or being granted access to any such information, any such potential purchaser may be required by Counterparty to enter into a customary nondisclosure agreement with Counterparty in respect of any such due diligence investigation;
|
|
ANNEX A
|
(c) as of the date of delivery, Counterparty shall enter into an agreement (a “Private Placement Agreement”) with Dealer (or any Affiliate of Dealer designated by Dealer) in connection with the private placement of such shares by Counterparty to Dealer (or any such Affiliate) and the private resale of such shares by Dealer (or any such Affiliate), substantially similar to private placement purchase agreements customary for private placements of equity securities, in form and substance commercially reasonably satisfactory to Dealer, which Private Placement Agreement shall include, without limitation, provisions substantially similar to those contained in such private placement purchase agreements relating, without limitation, to the indemnification of, and contribution in connection with the liability of, Dealer and its Affiliates and the provision of customary opinions, accountants’ comfort letters and lawyers’ negative assurance letters, and shall provide for the payment by Counterparty of all reasonable fees and actual, documented out-of-pocket expenses of Dealer (and any such Affiliate) in connection with such resale, including, without limitation, all reasonable fees and actual, documented out-of-pocket expenses of counsel for Dealer, and shall contain representations, warranties, covenants and agreements of Counterparty reasonably necessary or advisable to establish and maintain the availability of an exemption from the registration requirements of the Securities Act for such resales; and
|
(d) in connection with the private placement of such shares by Counterparty to Dealer (or any such Affiliate) and the private resale of such shares by Dealer (or any such Affiliate), Counterparty shall, if so requested by Dealer, prepare, in cooperation with Dealer, a private placement memorandum in form and substance reasonably satisfactory to Dealer.
|
5. Dealer, itself or through an Affiliate (the “Selling Agent”) or any underwriter(s), will sell all, or such lesser portion as may be required hereunder, of the Registered Settlement Shares or Unregistered Settlement Shares and any Makewhole Shares (as defined below) (together, the “Settlement Shares”) delivered by Counterparty to Dealer pursuant to paragraph 6 below commencing on the Cash Settlement Payment Date and continuing until the date on which the aggregate Net Proceeds (as such term is defined below) of such sales, as determined by Dealer, is equal to the absolute value of the Forward Cash Settlement Amount (such date, the “Final Resale Date”). If Counterparty is prohibited by law or by contract from disclosing all material information known to Counterparty with respect to Counterparty and the Shares to any potential purchasers of such Settlement Shares, then the sale of such Settlement Shares shall not be required to commence or may be suspended until Counterparty is able to so disclose such information. If the proceeds of any sale(s) made by Dealer, the Selling Agent or any underwriter(s), net of any fees and commissions (including, without limitation, underwriting or placement fees) customary for similar transactions under the circumstances at the time of the offering, together with carrying charges and expenses incurred in connection with the offer and sale of the Shares (including, without limitation, the covering of any over-allotment or short position (syndicate or otherwise)) (the “Net Proceeds”) exceed the absolute value of the Forward Cash Settlement Amount, Dealer will refund, in USD, such excess to Counterparty on the date that is three (3) Currency Business Days following the Final Resale Date, and, if any portion of the Settlement Shares remains unsold, Dealer shall return to Counterparty on that date such unsold Shares.
|
6. If the Calculation Agent determines that the Net Proceeds received from the sale of the Registered Settlement Shares or Unregistered Settlement Shares or any Makewhole Shares, if any, pursuant to this paragraph 6 are less than the absolute value of the Forward Cash Settlement Amount (the amount in USD by which the Net Proceeds are less than the absolute value of the Forward Cash Settlement Amount being the “Shortfall” and the date on which such determination is made, the “Deficiency Determination Date”), Counterparty shall on the Exchange Business Day next succeeding the Deficiency Determination Date (the “Makewhole Notice Date”) deliver to Dealer, through the Selling Agent, a notice of Counterparty’s election that Counterparty shall either (i) pay an amount in cash equal to the Shortfall on the day that is one Currency Business Day after the Makewhole Notice Date, or (ii) deliver additional Shares. If Counterparty elects to deliver to Dealer additional Shares, then Counterparty shall deliver additional Shares in compliance with the terms and conditions of paragraph 3 or paragraph 4 above, as the case may be (the “Makewhole Shares”), on the first Clearance System Business Day which is also an Exchange Business Day following the Makewhole Notice Date in such number as the Calculation Agent reasonably believes would have a market value on that Exchange Business Day equal to the Shortfall. Such Makewhole Shares shall be sold by Dealer in accordance with the provisions above; provided that if the sum of the Net Proceeds from the sale of the originally delivered Shares and the Net Proceeds from the sale of any Makewhole Shares is less than the absolute value of the Forward Cash Settlement Amount then Counterparty shall, at its election, either make such cash payment or deliver to Dealer further Makewhole Shares until such Shortfall has been reduced to zero.
|
7. Notwithstanding the foregoing, in no event shall the aggregate number of Settlement Shares for any Transaction be greater than the Reserved Shares minus the amount of any Shares actually delivered by Counterparty under any other Transaction under this Master Confirmation (the result of such calculation, the “Capped Number”). Counterparty represents and warrants (which shall be deemed to be repeated on each day that a Transaction is outstanding) that the Capped Number is equal to or less than the number of Shares determined according to the following formula:
|
|
ANNEX A
|
A – B
|
||||
Where
|
A
|
=
|
the number of authorized but unissued shares of Counterparty that are not reserved for future issuance on the date of the determination of the Capped Number; and
|
|
B
|
=
|
the maximum number of Shares required to be delivered to third parties if Counterparty elected Net Share Settlement of all transactions in the Shares (other than Transactions in the Shares under this Master Confirmation) with all third parties that are then currently outstanding and unexercised.
|
||
“Reserved Shares” means initially, 133,000,000 Shares. The Reserved Shares may be increased or decreased in a Supplemental Confirmation.
|
||||
If at any time, as a result of this paragraph 7, Counterparty fails to deliver to Dealer any Settlement Shares, Counterparty shall, to the extent that Counterparty has at such time authorized but unissued Shares not reserved for other purposes, promptly notify Dealer thereof and deliver to Dealer a number of Shares not previously delivered as a result of this paragraph 7.
|
1.
|
Awards of Rights. Each Incentive Stock Right shall entitle the Employee to receive from Corning one share of Corning's common stock ("Common Stock"); provided that the Employee satisfies both service based vesting requirements set forth in Sections 3 and 4. Such shares, if any, shall be paid to the Employee at the time set forth in Section 5.
|
2.
|
Non-Transferability. The Incentive Stock Rights may not be sold, assigned, transferred, pledged or otherwise encumbered by or on behalf of or for the benefit of the Employee.
|
3.
|
First Service Based Vesting Requirement. Incentive Stock Rights are subject to two service-based vesting requirements, with the first one applicable in 2016 as follows:
|
|
(a)
|
Under the first vesting requirement, the Employee shall “earn” a number of Incentive Stock Rights based upon the number of full calendar months he/she is employed by the Corporation in the 2016 fiscal year (“First Service Period”), provided further that the Employee must be employed for at least 3 full calendar months during the First Service Period for the Employee to be eligible to “earn” any award.
|
|
(b)
|
If during the First Service Period the Employee’s employment with the Corporation is terminated for any reason (other than a termination as described in Section 4(b) or 4(f) below in which cases the Employee shall not be entitled at any Incentive Stock Rights), then the prorated number of “earned” Incentive Stock Rights shall be calculated as the total number of Incentive Stock Rights multiplied by a ratio in which the numerator is equal to the number of full calendar months that the employee was actively employed (provided that this number is no less than 3) during the First Service Period, and the denominator of which is 12. The number of Incentive Stock Rights that have not been “earned” in the First Service Period under the first vesting requirement shall be forfeited.
|
|
(c)
|
An Employee shall not vest in his/her right to receive an Incentive Stock Right that has been “earned” in the First Service Period unless the Employee also satisfies the second service based vesting requirements set forth in Section 4.
|
4.
|
Second Service Based Vesting Requirement. Subject to the exceptions set forth below, the Employee must remain in continuous employment with Corning until March 31, 2019, to satisfy the second service based vesting requirement. If the Employee’s employment with Corning terminates before March 31, 2019, any “earned” Incentive Stock Rights, as described in Section 3 above, as of the date of the Employee’s employment terminates shall be treated as follows:
|
|
(a)
|
Retirement at or After Age 55 – If the Employee terminates employment on account of normal or early retirement on or after age 55, provided that the Employee has at least five (5) years of active service with Corning, then the second service based vesting requirement shall be satisfied with respect to the “earned” Incentive Stock Rights as calculated in Section 3(b) above. If the Employee has less than five (5) years of active service with Corning, then the second service based vesting requirement shall be satisfied with respect to the “earned” Incentive Stock Rights as calculated in the same manner specificed in Section 4(b) below.
|
|
(b)
|
Involuntary Termination (not “for cause”) – If the Employee’s employment is involuntarily terminated after the First Service Period but before before March 31, 2019, and it is not “for cause,” then the second service based vesting requirement shall be satisfied as of the Employee’s termination date for the prorated number of “earned” Incentive Stock Rights, calculated as the total number of “earned” Incentive Stock Rights multiplied by a ratio with the numerator equal to the number of full calendar months (not to exceed 36) from the start of the First Service Period through the Employee’s termination date, and the denominator of which is 36. If the Employee’s employment is involuntarily terminated during the First Service Period the Employee shall not be entitled at any Incentive Stock Rights.
|
|
For purposes of this Agreement, “for cause” shall mean the Employee’s:
|
·
|
conviction of a felony or conviction of a misdemeanor involving moral turpitude (from which no further appeals have been or can be taken);
|
·
|
a material breach of Corning’s Code of Conduct;
|
·
|
gross abdication of his duties as an employee of the Corporation (other than due to the Employee’s illness or personal family problems), which conduct remains uncured by the Employee for a period of at least 30 days following written notice thereof to the Employee by the Corporation, in each case as determined in good faith by the Corporation; or
|
·
|
misappropriation of Corning’s assets, personal dishonesty or business conduct which causes material or potentially material financial or reputational harm for the Corporation. For purposes of this Section 4(b), no act or failure to act on the Employee’s part shall be deemed to be a termination for cause if done, or omitted to be done, in good faith, and with the reasonable belief that the action or omission was in the best interests of the Corporation.
|
|
(c)
|
Death – If the Employee dies while employed, then the second service based vesting requirement shall be satisfied with respect to the “earned” Incentive Stock Rights as calculated in Section 3(b) above.
|
|
(d)
|
Disability – If the Employee’s employment is terminated as a result of a total and permanent disability (as that term is defined in the long-term disability plan(s) applicable to the Employee), then the second service based vesting requirement shall be satisfied with respect to the “earned” Incentive Stock Rights as calculated in Section 3(b) above.
|
|
(e)
|
Divestiture, etc. – If the Employee’s employment is terminated due to a reduction in force, divestiture or discontinuance of certain of the Corporation’s, then the second service based vesting requirement shall be satisfied with respect to the “earned” Incentive Stock Rights as calculated in Section 3(b) above.
|
|
(f)
|
Voluntary Termination, Termination for Cause, Dereliction of Duties or Harmful Acts – If the Employee voluntarily leaves the employ of the Corporation, or if the Employee’s employment shall be terminated “for cause”, or if the Employee causes the Corporation to suffer financial harm or damage to its reputation through (i) dishonesty, (ii) material violation of the Corporation's standards of ethics or conduct, or (iii) material deviation from the duties owed the Corporation by the Employee, then all of the Incentive Stock Rights shall be forfeited as of the Employee’s termination date.
|
|
(g)
|
Change of Control – In the event of a “change of control” of Corning Incorporated, the provisions of Sections 3 and 4 shall not be applicable and all nonforfeited Incentive Stock Rights shall be “earned” and fully vest.
|
|
For purposes of this Agreement, the term “change of control” shall mean an event that is “a change in the ownership or effective control of the Corporation, or in the ownership of a substantial portion of the assets of the Corporation” within the meaning of Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”), and that also falls within one of the following circumstances:
|
|
(i)
|
an offerer (other than Corning) purchases shares of Corning Common Stock pursuant to a tender or exchange offer for such shares;
|
|
(ii)
|
any person (as such term is used in Sections 13(d) and 14(d) (2) of the Securities Exchange Act of 1934) is or becomes the beneficial owner, directly or indirectly, of Corning securities representing 50% or more of the combined voting power of Corning’s then outstanding securities;
|
|
(iii)
|
the membership of Corning’s Board of Directors changes as the result of a contested election or elections, such that a majority of the individuals who are Directors at any particular time were initially placed on the Board of Directors as a result of such a contested election or elections occurring within the previous two years; or
|
|
(iv)
|
the consummation of a merger in which the Corporation is not the surviving corporation, consolidation, sale or disposition of all or substantially all of Corning’s assets or a plan of partial or complete liquidation approved by the Corporation’s shareholders.
|
5.
|
Time of Payment. “Earned” Incentive Stock Rights that have vested shall be paid as of the earliest of the following dates:
|
|
(a)
|
Death or Separation from Service– If the Employee dies or “separates from service” (within the meaning of Section 409A of the Code) from Corning, the Employee’s Incentive Stock Rights that are “earned” and vested as of the date of the Employee’s death or separation from service shall be paid, net of tax withholdings, as of the date of death or separation and distributed as net shares of Common Stock within 30 days after the date of death or separation from service.
|
|
(b)
|
April 15, 2019. If the Employee does not “separate from service” (within the meaning of Section 409A of the Code) from Corning on or before March 31, 2019, the Employee’s “earned” Incentive Stock Rights shall be paid, net of tax withholdings, as of April 15, 2019 and distributed as net shares of Common Stock within 30 days following April 15, 2019.
|
|
(c)
|
Change of Control - In the event of a Change of Control, the Employee’s Incentive Stock Rights that are vested as of the date of the Change of Control shall be paid/distributed as net shares of Common Stock, net of tax withholdings, as of/and within 30 days following the date of the Change of Control.
|
|
(d)
|
Special Distributions to Pay Social Security, Medicare Taxes - In the event that “earned” Incentive Stock Rights become subject to Social Security and/or Medicare taxes prior to a distribution event described in Sections 5(a)-(c) above (i.e., because the payment of the Incentive Stock Rights is no longer subject to a substantial risk of forfeiture) a partial distribution of the Incentive Stock Rights will be made to pay the Federal Insurance Contributions Act (“FICA”) tax imposed under Code sections 3101, 3121(a), and 3121(v)(2) on the Employee’s “earned” Incentive Stock Rights (the “FICA Amount”). Additionally, a partial distribution of the Incentive Stock Rights will be made to pay the income tax at source on wages imposed under section 3401 or the corresponding withholding provisions of applicable state, local, or foreign tax laws as a result of the payment of the FICA Amount, and to pay the additional income tax at source on wages attributable to the pyramiding section 3401 wages and taxes. However, the total payment under this provision must not exceed the aggregate of the FICA Amount, and the income tax withholding related to such FICA Amount. Any subsequent amount that is paid under this Agreement will be reduced by the amount paid under this Section 5(d).
|
|
(e)
|
Special Rule for Specified Employees - Notwithstanding the foregoing, if an amount becomes payable under the above rules due to the Employee incurring a “separation from service” within the meaning of Section 409A of the Code (for this purpose, payments on account of death are not considered payments made on account of separation from service), and the Employee is a “specified employee” (within the meaning of Section 409A of the Code) as of the date of separation from service, the Employee’s “earned” Incentive Stock Rights that are vested as of the date of the Employee’s separation from service shall be paid/distributed as net shares of Common Stock (net of tax withholdings) on or after the first day of the seventh month after the Employee’s separation from service and before the 15th day of the seventh month following the date the Employee separates from service.
|
|
(f)
|
Forfeiture - All Incentive Stock Rights that have not vested as of the date any Incentive Stock Right is paid shall be forfeited; provided that any distributions under Section 5(d) shall not result in the forfeiture of any unpaid Incentive Stock Rights.
|
6.
|
Form of Payment. At the time specified in Section 5, Corning shall make an appropriate book-entry, for the number of shares of Common Stock equal to the number of “earned” Incentive Stock Rights that are vested (net of tax withholdings). An Employee shall have no further rights with regard to the Incentive Stock Rights once the underlying shares of Common Stock have been delivered. The number of shares of Common Stock which Corning must deliver pursuant to this Agreement shall be reduced by the value of all taxes which the Corporation is required by law to withhold by reason of such delivery.
|
7.
|
Voting and Dividend Rights. Because the Incentive Stock Rights do not constitute shares of Common Stock (but rather just the right to receive shares in the future upon satisfaction of the specified service based vesting conditions), the grant or vesting of Incentive Stock Rights shall not provide the Employee with any shareholder rights (such as voting or dividend rights) until the Incentive Stock Rights are converted to shares of Common Stock.
|
8.
|
Dividend Equivalents. The Employee’s earned and vested Incentive Stock Rights shall be credited with dividend equivalents in a manner that is consistent with the manner in which dividends are paid on shares of Common Stock. Dividend equivalents shall be accumulated over the vesting period and paid in cash at the same time that the Incentive Stock Rights are paid in Section 5. The Corporation shall establish rules and administrative processes that apply to dividend equivalents that shall be binding on the Employee. No dividend equivalents shall be paid on Incentive Stock Rights that have been forfeited or paid.
|
9.
|
Transfers. If the Employee is transferred from Corning to a subsidiary (being a 50% or greater owned entity), or vice versa or from one subsidiary to another, the Employee’s employment shall not be deemed to have terminated.
|
10.
|
Section 409A and Unfunded Plan. This Agreement is intended to comply with the requirements of Section 409A of the Code and shall be interpreted and administered in accordance with that intent. If any provision of the agreement would otherwise conflict with or frustrate this intent, that provision will be interpreted and deemed amended so as to avoid the conflict. For purposes of this Agreement, “termination” , “termination date” or similar term shall mean the the date the employee “separates from service” from Corning within the meaning of Section 409A of the Internal Revenue Code. Under such definition, a period of time during which the Employee receives severance pay, but does not work, does not count as employment. This Agreement is an unfunded deferred compensation plan.
|
11.
|
Modification/Interpretation. Any modification of the terms of this Agreement must be approved, and any dispute, disagreement or matter of interpretation which shall arise under this Agreement shall be finally determined by the Compensation Committee of the Corning Board of Directors in its absolute discretion.
|
1.
|
Award of Units. Each Cash Unit shall entitle the Employee to receive from the Company an amount equal to $1 (one USD). The Cash Units, if any, shall be paid to the Employee at the time set forth in Section 6 and in the manner set forth in Section 7 provided that both the “Performance-Based Vesting Requirement” set forth in Section 3 and the “Service Based Vesting Requirement” set forth in Section 4 are satisfied. Prior to vesting pursuant to Sections 3 and 4, the Cash Units shall not be earned and shall remain subject to forfeiture.
|
2.
|
Non-Transferability. The Cash Units may not be sold, assigned, transferred, pledged or otherwise encumbered by or on behalf of or for the benefit of the Employee other than by last will and testament, by the laws of descent and distribution, pursuant to a domestic relations order or as otherwise permitted by the Committee pursuant to Section 12 of the Plan.
|
3.
|
Performance-Based Vesting Requirement.
|
(a)
|
Within ninety days following the beginning of each fiscal year ending on December 31st 2016, 2017 and 2018 (each such year, an “Annual Performance Period” and collectively, the “Performance Period”), the Compensation Committee of the Company’s Board of Directors (the “Committee”) shall determine performance targets (each a “Performance Target”) applicable to the current fiscal year. Such targets will be communicated annually to the Employee.
|
(b)
|
Any Cash Units that are earned pursuant to Sections 3 and 4 (after taking into account the proration adjustments referenced in Section 4 (the “Proration Factor”), if applicable) shall be referred to as the “Earned Units,” provided, however, that if the numerator of the Proration Factor is less than 3, all Cash Units shall be forfeited upon a termination of employment for any reason.
|
4.
|
Service Based Vesting Requirement. Subject to the exceptions set forth below, the Employee must remain in continuous employment with the Company Group until the expiration of the Performance Period in order to vest in the Earned Units. If the Employee’s employment with the Company Group terminates on or before the expiration of the Performance Period, any Earned Units shall be treated in the manner set forth in this Section 4.
|
Event
|
Termination Date Occurs in 1st Annual Performance Period
|
Termination Date Occurs After 1st Annual Performance Period
|
# of Earned Units
Proration Factor (subject to the limitation in
Section 3(b))
|
(a) Retirement at or after Age 55, provided that the Employee has at least five (5) years of active service with Corning
|
Employee vests in 100% of the Earned Units (after taking the Proration Factor into account) based on actual performance over the Performance Period
|
Employee vests in 100% of the Earned Units based on actual performance over the Performance Period
|
Prorated by a ratio the numerator of which is the number of full calendar months the Employee was actively employed during the first Annual Performance Period and the denominator of which is 12
|
(b) Termination without Cause or Retirement at or after Age 55 (where the Employee has less than five (5) years of active service with Corning)
|
Employee vests in 100% of the Earned Units (after taking the Proration Factor into account) based on actual performance over the Performance Period
|
Employee vests in 100% of the Earned Units (after taking the Proration Factor into account) based on actual performance over the Performance Period
|
Prorated by a ratio the numerator of which is the number of full calendar months the Employee was actively employed during the Performance Period through the Termination Date, and the denominator of which is 36
|
(c) Death, or
(d) Disability, or
(e) Reduction in Force, Divestiture or Discontinuance of Certain Company Group’s Operations, or
(f) Change of Control
|
Employee vests in 100% of the Earned Units (after taking the Proration Factor into account) and the Performance Targets shall be deemed attained based on actual performance for the first Annual Performance Period and 100% target performance for all other Annual Performance Periods
|
Employee vests in 100% of the Earned Units and the Performance Targets shall be deemed attained at actual performance for any completed Annual Performance Period and 100% target performance for all other Annual Performance Periods
|
Prorated by a ratio the numerator of which is the number of full calendar months the Employee was actively employed during the first Annual Performance Period and the denominator of which is 12.
|
(g) Voluntary Termination or Termination for Cause
|
Employee forfeits all of the Cash Units
|
Employee forfeits all of the Cash Units
|
None
|
5.
|
Definitions. For purposes of this Agreement,
|
|
|
(a)
|
“Termination Date” shall mean the last day on which the Employee provides services to the Company Group (notwithstanding any applicable severance periods).
|
|
(b)
|
“Cause” shall mean the Employee’s:
|
|
(A)
|
conviction of a felony or conviction of a misdemeanor involving moral turpitude (from which no further appeals have been or can be taken);
|
|
(B)
|
material breach of the Company Group’s Code of Conduct;
|
|
(C)
|
gross abdication of duties as an employee of the Company Group, which conduct remains uncured by the Employee for a period of at least 30 days following written notice thereof to the Employee by the Company Group, in each case as determined in good faith by the Company; or
|
|
(D)
|
misappropriation of the Company Group’s assets, personal dishonesty or business conduct which causes material or potentially material financial or reputational harm for the Company;
|
|
(c)
|
Disability” shall mean the Employee’s termination of employment with the Company Group as a result of a total and permanent disability as that term is defined in the long-term disability plan applicable to the Employee.
|
|
(d)
|
“Change of Control” shall mean an event that is “a change in the ownership or effective control of the Company, or in the ownership of a substantial portion of the assets of the Company” within the meaning of Section 409A of the Internal Revenue Code of 1986, as amended and the regulations and guidance promulgated thereunder (the “Code”), and that also falls within one of the following circumstances:
|
|
(A)
|
an offerer (other than the Company) purchases shares of the Company’s Common Stock pursuant to a tender or exchange offer for such shares;
|
|
(B)
|
any person (as such term is used in Sections 13(d) and 14(d) (2) of the Securities Exchange Act of 1934) is or becomes the beneficial owner, directly or indirectly, of securities representing 50% or more of the combined voting power of the Company’s then outstanding securities;
|
|
(C)
|
the membership the Company’s Board of Directors changes as the result of a contested election or elections, such that a majority of the individuals who are directors at any particular time were initially placed on the Board of Directors as a result of such a contested election or elections occurring within the previous two years; or
|
|
(D)
|
the consummation of a merger in which the Company is not the surviving corporation, consolidation, sale or disposition of all or substantially all of the Company’s assets or a plan of partial or complete liquidation approved by the Company’s shareholders.
|
6.
|
Time of Payment.
|
(a)
|
Except as noted below, the Earned Units that have vested pursuant to Sections 3 and 4 shall be paid within 75 days following the expiration of the Performance Period.
|
(b)
|
In the event of a termination of employment due to Sections 4(c), 4(d) or 4(e), the Earned Units that vest shall be paid within 60 days following (i) the Termination Date, or (ii) the determination of results for the first Annual Performance Period, whichever date is later.
|
(c)
|
In the event of a Change of Control, the Earned Units that vest in accordance with Section 4(f) shall be paid within 60 days following (i) the effective date of the Change of Control, or (ii) the determination of results for the first Annual Performance Period, whichever date is later.
|
(d)
|
The applicable date on which Cash Units are paid pursuant to this Section 6 is referred to as the “Payment Date.” All Cash Units that have not been earned and vested as of the Payment Date shall be forfeited.
|
(e)
|
In the event that the Earned Units become subject to Social Security and/or Medicare taxes prior to the applicable Payment Date, the Company shall withhold a number of Cash Units equal in value to (i) the applicable Federal Insurance Contributions Act (“FICA”) tax imposed under Code Sections 3101, 3121(a), and 3121(v)(2) on the Cash Units (the “FICA Amount”) and (ii) the applicable federal, state, local or foreign income taxes owed as a result of the withholding of the Cash Units to pay the FICA Amount. Any subsequent payment under this Agreement will be reduced by the amount withheld under this Section 6(e).
|
7.
|
Form of Payment.
|
(a)
|
Unless otherwise specified by the Committee at the Payment Date pursuant to Section 7(b), Earned Units shall be paid in cash.
|
(b)
|
On or prior to the Payment Date, the Committee may elect, to pay any Earned Units in shares of the Company’s common stock, par value $0.50 per share (“Common Stock”). If paid in Common Stock, the Company shall make an appropriate book-entry, for the number of whole shares of Common Stock equal in value to the number of Earned Units that are vested as of the business day preceding the Payment Date, with any resulting fractional shares being delivered to the Employee in cash.
|
(c)
|
The Employee shall have no further rights with regard to the Cash Units once the cash or shares of Common Stock have been delivered pursuant to this Section 7.
|
(d)
|
All payments made pursuant to this Agreement shall be reduced by the amount of all tax withholdings and other permitted deductions. To the extent the Cash Units are paid in shares of Common Stock, the Company may withhold shares of Common Stock to satisfy any tax withholdings and permitted deductions.
|
8.
|
Voting and Dividend Rights. The Cash Units do not entitle the Employee to any of the rights of a shareholder of the Company (such as voting or dividend rights).
|
9.
|
Recoupment/Claw-back. Notwithstanding anything in this Agreement to the contrary, the Cash Units and any payments made pursuant to this Agreement shall be subject to claw-back or recoupment as mandated by applicable law, rules, regulations or Company policy as enacted, adopted or modified from time to time.
|
10.
|
Transfers. If the Employee is transferred from the Company to a Subsidiary, from a Subsidiary to the Company or from one Subsidiary to another, the Employee’s employment with the Company Group shall not be deemed to have terminated; provided, however, that the Subsidiary is owned 50% or greater by the Company Group.
|
11.
|
Section 409A.
|
|
(a)
|
The Cash Units are intended to comply with or be exempt from Section 409A of the Code and shall be administered and interpreted in accordance with that intent. If any provision of the Plan or this Agreement would, in the reasonable good faith judgment of the Committee, result or likely result in the imposition on the Employee of a penalty tax under Section 409A, the Committee may modify the terms of the Plan or this Agreement, without the consent of the Employee, in the manner that the Committee may reasonably and in good faith determine to be necessary or advisable to avoid the imposition of such penalty tax. This Section 11 does not create an obligation on the part of the Company to modify the Plan or this Agreement and does not guarantee that the Cash Units will not be subject to taxes, interest and penalties under Section 409A.
|
|
(b)
|
Notwithstanding anything to the contrary in the Plan or this Agreement, to the extent that the Cash Units constitute deferred compensation for purposes of Section 409A and the Employee is a “Specified Employee” (within the meaning of the Committee’s established methodology for determining “Specified Employees” for purposes of Section 409A), no payment or distribution of any amounts with respect to the Cash Units that are subject to Section 409A may be made before the 15th day of the seventh month following the Employee’s “Separation from Service” from the Company (as defined in Section 409A) or, if earlier, the date of the Employee’s death.
|
|
(c)
|
The actual Payment Date pursuant to Section 6 shall be within the sole discretion of the Company. In no event may the Employee be permitted to control the year in which settlement occurs.
|
12.
|
Modification/Interpretation. The Committee shall have the power to alter, amend, modify or terminate the Plan or this Agreement at any time; provided, however, that no such termination, amendment or modification may adversely affect, in any material respect, the Employee’s rights under this Agreement without the Employee’s consent. Notwithstanding the foregoing, the Company shall have broad authority to amend this Agreement without the consent of the Employee to the extent it deems necessary or desirable (a) to comply with or take into account changes in or interpretations of, applicable tax laws, securities laws, employment laws, accounting rules and other applicable laws, rules and regulations, (b) to take into account unusual or nonrecurring events or market conditions, or (c) to take into account significant acquisitions or dispositions of assets or other property by the Company. Any amendment, modification or termination shall, upon adoption, become and be binding on all persons affected thereby without requirement for consent or other action with respect thereto by any such person. The Committee shall give written notice to the Employee of any such amendment, modification or termination as promptly as practicable after the adoption thereof. The foregoing shall not restrict the ability of the Employee and the Company by mutual consent to alter or amend the terms of the Cash Units in any manner that is consistent with the Plan and approved by the Committee.
|
13.
|
Headings. The headings of sections and subsections are included solely for convenience of reference and shall not affect the meaning of the provisions of this Agreement.
|
14.
|
Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be deemed to be an original but all of which together will constitute one and the same instrument.
|
15.
|
Entire Agreement. This Agreement and the Plan constitute the entire agreement between the parties hereto with regard to the subject matter hereof. They supersede all other agreements, representations or understandings (whether oral or written and whether express or implied) that relate to the subject matter hereof.
|
16.
|
Governing Law. Except as to matters of federal law, this Agreement and all actions taken thereunder shall be governed by and construed in accordance with the laws of the State of New York (other than its conflict of law rules).
|
Fiscal years ended December 31,
|
||||||||||||||
2015
|
2014
|
2013
|
2012
|
2011
|
||||||||||
Income from continuing operations before taxes on income
|
$
|
1,486
|
$
|
3,568
|
$
|
2,473
|
$
|
1,975
|
$
|
3,231
|
||||
Adjustments:
|
||||||||||||||
Equity in earnings of equity affiliates
|
(299)
|
(266)
|
(547)
|
(810)
|
(1,471)
|
|||||||||
Distributed income of equity affiliates (1)
|
143
|
1,704
|
629
|
1,089
|
820
|
|||||||||
Net income attributable to noncontrolling interests
|
10
|
3
|
(5)
|
(3)
|
||||||||||
Fixed charges net of capitalized interest
|
171
|
159
|
148
|
138
|
119
|
|||||||||
Earnings before taxes and fixed charges as adjusted
|
$
|
1,511
|
$
|
5,168
|
$
|
2,703
|
$
|
2,387
|
$
|
2,696
|
||||
Fixed charges:
|
||||||||||||||
Interest incurred
|
$
|
172
|
$
|
160
|
$
|
153
|
$
|
181
|
$
|
132
|
||||
Portion of rent expense which represents an appropriate interest factor (2)
|
31
|
36
|
28
|
27
|
30
|
|||||||||
Amortization of debt costs
|
3
|
3
|
2
|
4
|
3
|
|||||||||
Total fixed charges
|
$
|
206
|
$
|
199
|
$
|
183
|
$
|
212
|
$
|
165
|
||||
Preferred stock grossed up to a pre-tax basis
|
109
|
136
|
||||||||||||
Combined fixed charges and preferred stock dividends
|
$
|
315
|
$
|
335
|
$
|
183
|
$
|
212
|
$
|
165
|
||||
Ratio of earnings to fixed charges
|
7.3x
|
26.0x
|
14.8x
|
11.3x
|
16.3x
|
|||||||||
Ratio of earnings to combined fixed charges and preferred stock dividends
|
4.8x
|
15.4x
|
14.8x
|
11.3x
|
16.3x
|
(1)
|
In 2014, includes a $1.6 billion dividend received from Samsung Corning Precision Materials related to the acquisition of Samsung Corning Precision Materials. See Note 8 (Acquisitions) for more details.
|
(2)
|
One-third of net rent expense is the portion deemed representative of the interest factor.
|
Subsidiaries of the Registrant as of December 31, 2015 are listed below:
|
|
Axygen BioScience, Inc.
|
Delaware
|
Axygen Holdings Corporation
|
Delaware
|
Axygen, Inc.
|
California
|
CCS Holdings, Inc.
|
Delaware
|
Corning (Shanghai) Co., Ltd.
|
China
|
Corning B.V.
|
Netherlands
|
Corning Cable Systems Pty. Ltd.
|
Australia
|
Corning Display Technologies (China) Co., Ltd.
|
China
|
Corning Display Technologies Taiwan Co., Ltd.
|
Taiwan
|
Corning Finance B.V.
|
Netherlands
|
Corning Finance France S.A.S.
|
France
|
Corning Finance Luxembourg S.àr.l.
|
Luxembourg
|
Corning GmbH
|
Germany
|
Corning Holding GmbH
|
Germany
|
Corning Holding Japan GK
|
Japan
|
Corning Holding S.àr.l.
|
Luxembourg
|
Corning Hungary Asset Management Limited Liability Company
|
Hungary
|
Corning Hungary Data Services Limited Liability Company
|
Hungary
|
Corning International B.V.
|
Netherlands
|
Corning International Corporation
|
Delaware
|
Corning International Luxembourg S.àr.l.
|
Luxembourg
|
Corning Japan KK
|
Japan
|
Corning Luxembourg S.àr.l.
|
Luxembourg
|
Corning Mauritius Ltd.
|
Mauritius
|
Corning Optical Communications LLC
|
North Carolina
|
Corning Optical Communications Polska
|
Poland
|
Corning Optical Communications Germany
|
Germany
|
Corning Precision Materials Co., Ltd.
|
Korea
|
Corning Property Management Corporation
|
Delaware
|
Corning S.A.S.
|
France
|
Corning Singapore Holdings Private Limited
|
Singapore
|
Corning Specialty Materials, Inc.
|
Delaware
|
Corning Telecommunications Luxembourg S.àr.l.
|
Luxembourg
|
Corning Treasury Services Limited
|
Ireland
|
Corning Tropel Corporation
|
Delaware
|
Corning Ventures France S.A.S.
|
France
|
Corning Ventures S.àr.l.
|
Luxembourg
|
Companies accounted for under the equity method as of December 31, 2015 are listed below:
|
|
Cormetech, Inc.
|
Delaware
|
Dow Corning Corporation
|
Michigan
|
Eurokera Guangzhou Co., Ltd.
|
China
|
Eurokera North America, Inc.
|
Delaware
|
Eurokera S.N.C.
|
France
|
Keraglass S.N.C.
|
France
|
Nine Point Medical
|
Delaware
|
Pittsburgh Corning Europe N.V.
|
Belgium
|
Samsung Corning Advanced Glass LLC
|
South Korea
|
/s/ Donald W. Blair
|
|
Donald W. Blair
|
/s/ Stephanie A. Burns
|
|
Stephanie A. Burns
|
/s/ John A. Canning, Jr.
|
|
John A. Canning, Jr.
|
/s/ Richard T. Clark
|
|
Richard T. Clark
|
/s/ Robert F. Cummings, Jr.
|
|
Robert F. Cummings, Jr.
|
/s/ Deborah A. Henretta
|
|
Deborah A. Henretta
|
/s/ Daniel P. Huttenlocher
|
|
Daniel P. Huttenlocher
|
/s/ Kurt M. Landgraf
|
|
Kurt M. Landgraf
|
/s/ Kevin J. Martin
|
|
Kevin J. Martin
|
/s/ Deborah E. Rieman
|
|
Deborah D. Rieman
|
/s/ Hansel E. Tookes II
|
|
Hansel E. Tookes II
|
/s/ Wendell P. Weeks
|
|
Wendell P. Weeks
|
/s/ Mark S. Wrighton
|
|
Mark S. Wrighton
|
1.
|
I have reviewed this Annual Report on Form 10-K of Corning Incorporated;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
|
(c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
|
(d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
Date: February 12, 2016
|
|
/s/ Wendell P. Weeks
|
|
Wendell P. Weeks
|
|
Chairman, Chief Executive Officer and President
|
|
(Principal Executive Officer)
|
1.
|
I have reviewed this annual report on Form 10-K of Corning Incorporated;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
|
(c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
|
(d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
Date: February 12, 2016
|
|
/s/ R. Tony Tripeny
|
|
R. Tony Tripeny
|
|
Senior Vice President and Chief Financial Officer
|
|
(Principal Financial Officer)
|
(1)
|
the Annual Report of the Company on Form 10-K for the annual period ended December 31, 2015 fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
(2)
|
that information contained in such Form 10-K fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
Date: February 12, 2016
|
|
/s/ Wendell P. Weeks
|
|
Wendell P. Weeks
|
|
Chairman, Chief Executive Officer and President
|
|
/s/ R. Tony Tripeny
|
|
R. Tony Tripeny
|
|
Senior Vice President and Chief Financial Officer
|
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Document And Entity Information - USD ($) |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Jan. 31, 2016 |
Jun. 30, 2015 |
|
Document and Entity Information [Abstract] | |||
Entity Registrant Name | CORNING INC /NY | ||
Trading Symbol | glw | ||
Document Type | 10-K | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Common Stock, Shares Outstanding | 1,112,837,205 | ||
Entity Public Float | $ 24,000,000,000 | ||
Amendment Flag | false | ||
Entity Central Index Key | 0000024741 | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Well-known Seasoned Issuer | Yes | ||
Document Period End Date | Dec. 31, 2015 | ||
Document Fiscal Year Focus | 2015 | ||
Document Fiscal Period Focus | FY |
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Net income attributable to Corning Incorporated | $ 1,339 | $ 2,472 | $ 1,961 |
Foreign currency translation adjustments and other | (590) | (1,073) | (682) |
Net unrealized gains (losses) on investments | 1 | (1) | 2 |
Unamortized gains (losses) and prior service (costs) credits for postretirement benefit plans | 121 | (281) | 392 |
Net unrealized (losses) gains on designated hedges | (36) | 4 | (24) |
Other comprehensive loss, net of tax (Note 17) | (504) | (1,351) | (312) |
Comprehensive income attributable to Corning Incorporated | $ 835 | $ 1,121 | $ 1,649 |
Consolidated Balance Sheets - USD ($) $ in Millions |
Dec. 31, 2015 |
Dec. 31, 2014 |
---|---|---|
Current assets: | ||
Cash and cash equivalents | $ 4,500 | $ 5,309 |
Short-term investments, at fair value (Note 3) | 100 | 759 |
Total cash, cash equivalents and short-term investments | 4,600 | 6,068 |
Trade accounts receivable, net of doubtful accounts and allowances - $48 and $47 | 1,372 | 1,501 |
Inventories, net of inventory reserves - $146 and $127 (Note 5) | 1,385 | 1,322 |
Deferred income taxes (Note 6) | 248 | |
Other current assets (Note 11 and 15) | 912 | 1,099 |
Total current assets | 8,269 | 10,238 |
Investments (Note 7) | 1,975 | 1,801 |
Property, plant and equipment, net of accumulated depreciation - $9,188 and $8,332 (Note 9) | 12,648 | 12,766 |
Goodwill, net (Note 10) | 1,380 | 1,150 |
Other intangible assets, net (Note 10) | 706 | 497 |
Deferred income taxes (Note 6) | 2,056 | 1,889 |
Other assets (Note 8, 11 and 15) | 1,513 | 1,722 |
Total Assets | 28,547 | 30,063 |
Current liabilities: | ||
Current portion of long-term debt and short-term borrowings (Note 12) | 572 | 36 |
Accounts payable | 934 | 997 |
Other accrued liabilities (Note 11 and 14) | 1,308 | 1,291 |
Total current liabilities | 2,814 | 2,324 |
Long-term debt (Note 12) | 3,910 | 3,227 |
Postretirement benefits other than pensions (Note 13) | 718 | 814 |
Other liabilities (Note 11 and 14) | 2,242 | 2,046 |
Total liabilities | $ 9,684 | $ 8,411 |
Commitments and contingencies (Note 14) | ||
Shareholders’ equity (Note 17): | ||
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: 1,681 million and 1,672 million | 840 | 836 |
Additional paid-in capital – common stock | 13,352 | 13,456 |
Retained earnings | 13,832 | 13,021 |
Treasury stock, at cost; shares held: 551 million and 398 million | (9,725) | (6,727) |
Accumulated other comprehensive loss | (1,811) | (1,307) |
Total Corning Incorporated shareholders’ equity | 18,788 | 21,579 |
Noncontrolling interests | 75 | 73 |
Total equity | 18,863 | 21,652 |
Total Liabilities and Equity | $ 28,547 | $ 30,063 |
Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Millions |
Dec. 31, 2015 |
Dec. 31, 2014 |
---|---|---|
Doubtful accounts and allowances (in Dollars) | $ 48 | $ 47 |
Inventory reserves (in Dollars) | 146 | 127 |
Accumulated depreciation (in Dollars) | $ 9,188 | $ 8,332 |
Convertible preferred stock, par value (in Dollars per share) | $ 100 | $ 100 |
Convertible preferred stock, shares authorized | 3,100 | 3,100 |
Convertible preferred stock, shares issued | 2,300 | 2,300 |
Common stock par value (in Dollars per share) | $ 0.50 | $ 0.50 |
Common stock, shares authorized | 3,800,000,000 | 3,800,000,000 |
Common stock, shares issued | 1,681,000,000 | 1,672,000,000 |
Treasury stock, at cost, shares held | 551,000,000 | 398,000,000 |
Consolidated Statements of Cash Flows - USD ($) $ in Millions |
12 Months Ended | ||||
---|---|---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|||
Cash Flows from Operating Activities: | |||||
Net income | $ 1,339 | $ 2,472 | $ 1,961 | ||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||
Depreciation | 1,130 | 1,167 | 971 | ||
Amortization of purchased intangibles | 54 | 33 | 31 | ||
Restructuring, impairment and other charges | 71 | 67 | |||
Stock compensation charges | 46 | 58 | 54 | ||
Equity in earnings of affiliated companies | (299) | (266) | (547) | ||
Dividends received from affiliated companies | 143 | 1,704 | 630 | ||
Deferred tax provision | 54 | 612 | 189 | ||
Restructuring payments | (40) | (39) | (35) | ||
Customer deposits | 197 | ||||
Employee benefit payments (in excess of) less than expense | (52) | (52) | 52 | ||
Gains on foreign currency hedges related to translated earnings | (80) | (1,369) | (435) | ||
Unrealized translation losses on transactions | 268 | 431 | 96 | ||
Contingent consideration fair value adjustment | (13) | (249) | |||
Changes in certain working capital items: | |||||
Trade accounts receivable | 162 | (16) | (29) | ||
Inventories | (77) | 2 | (247) | ||
Other current assets | (57) | (16) | 34 | ||
Accounts payable and other current liabilities | (146) | (3) | (23) | ||
Other, net | 180 | 169 | 18 | ||
Net cash provided by operating activities | 2,809 | 4,709 | 2,787 | ||
Cash Flows from Investing Activities: | |||||
Capital expenditures | (1,250) | (1,076) | (1,019) | ||
Acquisitions of businesses, net of cash (paid) received | (732) | 66 | (68) | ||
Proceeds from sale of a business | 12 | ||||
Investment in unconsolidated entities | (33) | (109) | (526) | ||
Proceeds from loan repayments from unconsolidated entities | 6 | 23 | 8 | ||
Short-term investments – acquisitions | (969) | (1,398) | (1,406) | ||
Short-term investments – liquidations | 1,629 | 1,167 | 2,026 | ||
Premium on purchased collars | (107) | ||||
Realized gains on foreign currency hedges related to translated earnings | 653 | 361 | 87 | ||
Other, net | (1) | 4 | 1 | ||
Net cash used in investing activities | (685) | (962) | (1,004) | ||
Cash Flows from Financing Activities: | |||||
Retirement of long-term debt, net | (498) | ||||
Net repayments of short-term borrowings and current portion of long-term debt | (12) | (52) | (71) | ||
Proceeds from issuance of long-term debt | 745 | 248 | |||
Proceeds from issuance of short-term debt, net | 3 | 29 | |||
Proceeds from issuance of commercial paper | 481 | ||||
(Payments) proceeds from the settlement of interest rate swap agreements | (10) | 33 | |||
Principal payments under capital lease obligations | (6) | (6) | (7) | ||
Proceeds from issuance of preferred stock (1) | [1] | 400 | |||
Proceeds received for asset financing and related incentives, net | 1 | 1 | 276 | ||
Payments to acquire noncontrolling interest | (47) | ||||
Proceeds from the exercise of stock options | 102 | 116 | 85 | ||
Repurchases of common stock for treasury | (3,228) | (2,483) | (1,516) | ||
Dividends paid | (679) | (591) | (566) | ||
Net cash used in financing activities | (2,603) | (2,586) | (2,063) | ||
Effect of exchange rates on cash | (330) | (556) | (4) | ||
Net (decrease) increase in cash and cash equivalents | (809) | 605 | (284) | ||
Cash and cash equivalents at beginning of year | 5,309 | 4,704 | 4,988 | ||
Cash and cash equivalents at end of year | $ 4,500 | $ 5,309 | $ 4,704 | ||
|
Consolidated Statements of Changes in Shareholders’ Equity - USD ($) $ in Millions |
Preferred Stock [Member] |
Common Stock [Member] |
Additional Paid-in Capital [Member] |
Retained Earnings [Member] |
Treasury Stock [Member] |
AOCI Attributable to Parent [Member] |
Parent [Member] |
Noncontrolling Interest [Member] |
Total |
|||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Balance at Dec. 31, 2012 | $ 825 | $ 13,146 | $ 9,932 | $ (2,773) | $ 356 | $ 21,486 | $ 47 | $ 21,533 | ||||
Net income | 1,961 | 1,961 | 1,961 | |||||||||
Other comprehensive loss | (312) | [1] | (312) | (312) | ||||||||
Purchase of common stock for treasury | (200) | (1,316) | (1,516) | (1,516) | ||||||||
Shares issued to benefit plans and for option exercises | 6 | 139 | (1) | 144 | 144 | |||||||
Dividends on shares | (566) | (566) | (566) | |||||||||
Other, net | (19) | (7) | (9) | (35) | 2 | (33) | ||||||
Balance at Dec. 31, 2013 | 831 | 13,066 | 11,320 | (4,099) | 44 | 21,162 | 49 | 21,211 | ||||
Net income | 2,472 | 2,472 | 3 | 2,475 | ||||||||
Other comprehensive loss | (1,351) | [1] | (1,351) | (1) | (1,352) | |||||||
Shares issued for acquisition of equity investment company | $ 1,900 | 1,900 | 15 | 1,915 | ||||||||
Shares issued for cash | 400 | 400 | 400 | |||||||||
Purchase of common stock for treasury | 129 | (2,612) | (2,483) | (2,483) | ||||||||
Shares issued to benefit plans and for option exercises | 5 | 261 | (2) | 264 | 264 | |||||||
Dividends on shares | (771) | (771) | (771) | |||||||||
Other, net | (14) | (14) | 7 | (7) | ||||||||
Balance at Dec. 31, 2014 | 2,300 | 836 | 13,456 | 13,021 | (6,727) | (1,307) | 21,579 | 73 | 21,652 | |||
Net income | 1,339 | 1,339 | 9 | 1,348 | ||||||||
Other comprehensive loss | (504) | [1] | (504) | (1) | (505) | |||||||
Purchase of common stock for treasury | (250) | (2,978) | (3,228) | (3,228) | ||||||||
Shares issued to benefit plans and for option exercises | 4 | 146 | (1) | 149 | 149 | |||||||
Dividends on shares | (528) | (528) | (528) | |||||||||
Other, net | (19) | (19) | (6) | (25) | ||||||||
Balance at Dec. 31, 2015 | $ 2,300 | $ 840 | $ 13,352 | $ 13,832 | $ (9,725) | $ (1,811) | $ 18,788 | $ 75 | $ 18,863 | |||
|
Supplemental Cash Flow Information |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 | |||
Supplemental Cash Flow Elements [Abstract] | |||
Cash Flow, Supplemental Disclosures [Text Block] |
|
Note 1 - Summary of Significant Accounting Policies |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2015 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounting Policies [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Significant Accounting Policies [Text Block] |
1. Summary of Significant Accounting Policies
Organization
Corning Incorporated is a provider of high-performance glass for notebook computers, flat panel desktop monitors, LCD 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. In the fourth quarter of 2013, Corning acquired the minority interests of three shareholders in one of our affiliated companies, Samsung Corning Precision Materials, which increased Corning’s ownership percentage from 50% to 57.5%. Because this transaction did not result in a change in control based on the governing articles of this entity, Corning did not consolidate this entity as of December 31, 2013. Corning acquired the remaining ownership interests of Samsung Corning Precision Materials on January 15, 2014, which increased Corning’s ownership to 100% and resulted in consolidation of the entity beginning in the first quarter of 2014.
We use the cost method to account 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. In accordance with the cost method, these investments are recorded at cost or fair value, as appropriate.
All material intercompany accounts, transactions and profits are eliminated in consolidation.
Certain prior year amounts have been reclassified to conform to the current-year presentation. These reclassifications had no impact on our results of operations, financial position, or changes in shareholders’ equity.
Samsung Corning Precision Materials Co., Ltd. (“Samsung Corning Precision Materials”)
As further discussed in Note 8 (Acquisitions) to the Consolidated Financial Statements, on January 15, 2014, Corning completed a series of strategic and financial agreements to acquire the common shares of Samsung Corning Precision Materials previously held by Samsung Display Co., Ltd. (“Samsung Display”). As a result of these transactions, Corning is now the owner of 100% of the common shares of Samsung Corning Precision Materials, which we have consolidated into our results beginning in the first quarter of 2014. Operating under the name of Corning Precision Materials Co., Ltd. (“Corning Precision Materials”), the former Samsung Corning Precision Materials organization and operations were integrated into the Display Technologies segment in the first quarter of 2014.
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 of fair value 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 for sales of goods is recognized when a firm sales agreement is in place, delivery has occurred and sales price is fixed or determinable and collection is reasonably assured. If customer acceptance of products is not reasonably assured, sales are recorded only upon formal customer acceptance. Sales of goods typically do not include multiple product and/or service elements.
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 on a completed contract basis. Revenues under the completed-contract method are recognized upon substantial completion, defined as acceptance by the customer and compliance with performance specifications as agreed upon in the contract. The Company acts as a principal under the contracts, and recognizes revenues with corresponding cost of revenues on a gross basis for the full amount of the contract.
Research and Development Costs
Research and development costs are charged to expense as incurred. Research and development costs totaled $638 million in 2015, $701 million in 2014 and $613 million in 2013.
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. Foreign currency transaction losses for the years ended December 31, 2015, 2014 and 2013 were $22 million, $60 million and $190 million, respectively.
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 income 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’s share-based compensation programs include employee stock option grants, time-based restricted stock awards and time-based restricted stock units, as more fully described in Note 19 (Share-based Compensation) to the Consolidated Financial Statements.
The cost of share-based compensation awards is equal to the fair value of the award at the date of grant and compensation expense is recognized for those awards earned over the vesting period. Corning estimates the fair value of share-based awards using a multiple-point Black-Scholes option valuation model, which incorporates assumptions including expected volatility, dividend yield, risk-free rate, expected term and departure rates.
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.
Supplemental disclosure of cash flow information follows (in millions):
Short-Term Investments
Our short-term investments consist of available-for-sale securities that are stated at fair value. Consistent with Corning’s cash investment policy, our short-term investments consist primarily of fixed-income securities. Preservation of principal is the primary principle of our cash investment policy that is carried out by limiting interest rate, reinvestment, security, quality and event risk. Our investments are generally liquid and all are investment grade quality. The portfolio is invested predominantly in U.S. government securities and quality money market funds. Unrealized gains and losses, net of tax, are computed on a specific identification basis and are reported as a separate component of accumulated other comprehensive loss in shareholders’ equity until realized. Realized gains and losses are recorded in other (expense) income, net.
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 potential responsible parties, the Company considers its likely proportionate share of the anticipated remediation costs and the ability of the other parties to fulfill their 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 final 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 2 (Restructuring, Impairment and Other Charges) to the Consolidated Financial Statements related to accelerated depreciation arising from restructuring programs and Note 9 (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.
Included in the subcategory of equipment are the following types of assets (excluding precious metals):
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 the carrying amount may be impaired. Corning also performs a detailed, two-step process every three years if no indicators suggest a test should be performed in the interim. We use this calculation as quantitative validation of the step-zero qualitative process; this process does not represent an election to perform the two-step process in place of the step-zero 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 two-step 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 their 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 also 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. Refer to Note 2 (Restructuring, Impairment and Other Charges) to the Consolidated Financial Statements for more detail.
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 for discount rates 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 for discount rates 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 13 (Employee Retirement Plans) to the Consolidated Financial Statements for additional detail.
Treasury Stock
Shares of common stock repurchased by us are recorded at cost as treasury stock and result in a reduction of Shareholders’ Equity in the consolidated balance sheets. From time to time, treasury shares may be reissued as contributions to our employee benefit plans and for the retirement or conversion of certain debt instruments. When shares are reissued, we use an average cost method for determining cost. The difference between the cost of the shares and the reissuance price is added to or deducted from additional paid-in capital.
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.
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.
The Company is subject to income taxes in the United States and in numerous foreign jurisdictions. With minor exceptions, no provision is made for U.S. income taxes on the undistributed earnings of wholly-owned foreign subsidiaries because substantially all such earnings are indefinitely reinvested in those companies. Provision for the tax consequences of distributions, if any, from consolidated foreign subsidiaries is recorded in the year in which the earnings are no longer indefinitely reinvested in those subsidiaries.
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:
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 to swap fixed rate interest payments into floating rate interest payments. These financial exposures are managed in accordance with corporate policies and procedures.
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 statement of income as where the effects of the hedged item are recorded, typically sales, cost of sales or other (expense) income, net. Changes in the fair value of derivatives designated as fair value hedges are recorded currently in earnings offset, to the extent the derivative was effective, by the change in the fair value of the hedged item. Changes in the fair value of derivatives not designated as hedging instruments are recorded currently in earnings in the Foreign currency hedge gain, net line of the consolidated statement of income.
New Accounting Standards
In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. (“ASU”) 2014-09, Revenue from Contracts with Customers, as a new Topic, Accounting Standards Codification (“ASC”) Topic 606. The new revenue recognition standard provides a five-step analysis of transactions to determine when and how revenue is recognized. The core principle is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This ASU originally was effective for annual periods beginning after December 15, 2016, including interim periods within that reporting period. This ASU shall be applied retrospectively to each period presented or as a cumulative-effect adjustment as of the date of adoption.
In August 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers (Topic 606), deferring the effective date of ASU 2014-09 by one year. We can elect to adopt the provisions of ASU 2014-09 for annual periods beginning after December 15, 2017, including interim periods within that reporting period. The FASB also agreed to allow entities to choose to adopt the standard as of the original effective date. We are currently assessing the adoption date and potential impact of adopting ASU 2014-09 on our financial statements and related disclosures.
In November 2015, the FASB issued ASU 2015-17, Income Taxes (Topic 740), requiring deferred tax assets and liabilities to be classified as noncurrent in a classified balance sheet. This ASU is effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. Early adoption is permitted as of the beginning of an interim or annual reporting period. We have adopted this ASU prospectively for the year ended December 31, 2015. See Note 6 (Income Taxes) to the Consolidated Financial Statements for additional information.
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Note 2 - Restructuring, Impairment and Other Charges |
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Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring and Related Activities Disclosure [Text Block] |
2. Restructuring, Impairment and Other Charges
2015 Activity
For the year ended December 31, 2015, we did not record significant restructuring, impairment and other charges or reversals. Cash expenditures for restructuring activities were $40 million.
2014 Activity
For the year ended December 31, 2014, we recorded charges of $71 million for workforce reductions, asset disposals and write-offs, and exit costs for restructuring activities with total cash expenditures of approximately $39 million.
The following table summarizes the restructuring, impairment and other charges as of and for the year ended December 31, 2014 (in millions):
Cash payments for employee-related and exit activity related to the 2014 restructuring actions were substantially completed in 2015.
2013 Activity
To better align our 2014 cost position in several of our businesses, Corning implemented a global restructuring plan within several of our segments in the fourth quarter of 2013, consisting of workforce reductions, asset disposals and write-offs, and exit costs. We recorded charges of $67 million, before tax, associated with these actions, with cash expenditures of $35 million.
The following table summarizes the restructuring, impairment and other charges as of and for the year ended December 31, 2013 (in millions):
Cash payments for employee-related and exit activity related to the 2013 corporate-wide restructuring plan were substantially completed in 2014.
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Note 3 - Available-for-Sale Investments |
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Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block] |
3. Available-for-Sale Investments
The following is a summary of the fair value of available-for-sale securities (in millions):
We do not intend to sell, nor do we believe it is more likely than not that we would be required to sell, the long-term investment asset-backed securities (which are collateralized by mortgages) before recovery of their amortized cost basis. It is possible that a significant degradation in the delinquency or foreclosure rates in the underlying assets could cause further temporary or other-than-temporary impairments in the future.
The following table summarizes the contractual maturities of available-for-sale securities at December 31, 2015 (in millions):
Unrealized gains and losses, net of tax, are computed on a specific identification basis and are reported as a separate component of accumulated other comprehensive loss in shareholders’ equity until realized.
The following tables provide the fair value and gross unrealized losses of the Company’s investments and unrealized losses that are not deemed to be other-than-temporarily impaired, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at December 31, 2015 and 2014:
Proceeds from sales and maturities of short-term investments totaled $1.6 billion, $1.2 billion and $2.0 billion in 2015, 2014 and 2013, respectively.
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Note 4 - Significant Customers |
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Dec. 31, 2015 | |
Significant Customers [Abstract] | |
Significant Customers [Text Block] |
4. Significant Customers
For 2015, 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. For 2014, Corning’s sales to Samsung Display Co. Ltd., a customer of our Display Technologies segment, represented 14% of the Company’s consolidated net sales. In 2013, Corning’s sales to AU Optronics Corporation, a customer of our Display Technologies segment, represented 10% of the Company’s consolidated net sales.
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Note 5 - Inventories, Net of Inventory Reserves |
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Inventory Disclosure [Text Block] |
5. Inventories, Net of Inventory Reserves
Inventories, net of inventory reserves comprise the following (in millions):
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Note 6 - Income Taxes |
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Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Text Block] |
6. Income Taxes
Income before income taxes follows (in millions):
The current and deferred amounts of the provision (benefit) for income taxes follow (in millions):
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 continuing operations follows:
The tax effects of temporary differences and carryforwards that gave rise to significant portions of the deferred tax assets and liabilities follows (in millions):
The net deferred tax assets are classified in our consolidated balance sheets as follows (in millions):
Corning adopted ASU 2015-17 prospectively. All deferred taxes are classified as non-current on the balance sheet as of December 31, 2015. Prior periods were not retrospectively adjusted.
Details on deferred tax assets for loss and tax credit carryforwards at December 31, 2015 follow (in millions):
The recognition of windfall tax benefits from share-based compensation deducted on the tax return is prohibited until realized through a reduction of income tax payable. Cumulative tax benefits totaling $244 million will be recorded in additional paid-in-capital when credit carryforwards are utilized and the windfall tax benefit can be realized.
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 of the 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. U.S. profits of approximately $4.7 billion will be required to fully realize the U.S. deferred tax assets as of December 31, 2015, of which $88 million will be required over the next 20 years to realize the deferred tax assets related to general business credits and $1.9 billion of foreign sourced income will be required over the next 10 years to fully realize the deferred tax assets associated with foreign tax credits. The amount of U.S. and foreign deferred tax assets that have remaining valuation allowances at December 31, 2015 and 2014 was $238 million and $298 million, respectively.
The following is a tabular reconciliation of the total amount of unrecognized tax benefits (in millions):
The additions for tax positions of prior years include $221 million for unrecognized tax benefits related to gross transfer pricing adjustments. See footnote (10) of the Reconciliation of the U.S. statutory income tax rate to our effective tax rate for continuing operations above for more information. Included in the balance at December 31, 2015 and 2014 are $102 million and $5 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 year ended December 31, 2015 the amount recognized in interest expense is $6 million. In 2014 and 2013, the amounts recognized in interest expense and income were immaterial. The amounts accrued at December 31, 2015 and 2014 for the payment of interest and penalties was $5 million and $1 million, respectively.
While we expect the amount of unrecognized tax benefits to change in the next 12 months, we do not expect the change to have a significant impact on the results of operations or our financial position.
Corning Incorporated, as the common parent company, and all 80%-or-more-owned of its U.S. subsidiaries join in the filing of consolidated U.S. federal income tax returns. All such returns for periods ended through December 31, 2004, have been audited by and settled with the Internal Revenue Service (IRS). The statute of limitations is closed for all returns prior to 2002, but the IRS can make adjustments for the return in which the NOL, U.S. foreign tax and research experimentation credit carryovers are utilized.
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.
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 7 years. Years still open to examination by foreign tax authorities in major jurisdictions include Japan (2009 onward), Taiwan (2014 onward) and South Korea (2015 onward).
Corning continues to indefinitely reinvest substantially all of its foreign earnings, with the exception of an immaterial amount of current earnings that have very low or no tax cost associated with their repatriation. Our current analysis indicates that we have sufficient U.S. liquidity, including borrowing capacity, to fund foreseeable U.S. cash needs without requiring the repatriation of foreign cash. One time or unusual items that may impact our ability or intent to keep our foreign earnings and cash indefinitely reinvested include significant U.S. acquisitions, stock repurchases, shareholder dividends, changes in tax laws, derivative contract settlements or the development of tax planning ideas that allow us to repatriate earnings at minimal or no tax cost, and/or a change in our circumstances or economic conditions that negatively impact our ability to borrow or otherwise fund U.S. needs from existing U.S. sources. As of December 31, 2015, taxes have not been provided on approximately $11 billion of accumulated foreign unremitted earnings that are expected to remain invested indefinitely. While it remains impracticable to calculate the tax cost of repatriating our total unremitted foreign earnings, such cost could be material to the results of operations of Corning in a particular period.
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Note 7 - Investments |
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Equity Method Investments and Joint Ventures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity Method Investments and Joint Ventures Disclosure [Text Block] |
7. Investments
Investments comprise the following (in millions):
Affiliated Companies at Equity
The results of operations and financial position of the investments accounted for under the equity method follow (in millions):
We have contractual agreements with several of our equity affiliates which include sales, purchasing, licensing and technology agreements.
At December 31, 2015, approximately $2.0 billion of equity in undistributed earnings of equity companies was included in our retained earnings.
Samsung Corning Precision Materials
Prior to December 2013, Corning owned 50% of its equity affiliate, Samsung Corning Precision Materials, Samsung Display owned 42.5% and three shareholders owned the remaining 7%. In the fourth quarter of 2013, in connection with a series of strategic and financial agreements with Samsung Display announced in October 2013, Corning acquired the minority interests of three shareholders in Samsung Corning Precision Materials for $506 million, which included payment for the transfer of non-operating assets and the pro-rata portion of cash on the Samsung Corning Precision Materials balance sheet at September 30, 2013. The resulting transfer of shares to Corning increased Corning’s ownership percentage of Samsung Corning Precision Materials from 50% to 57.5%. Because this transaction did not result in a change in control based on the governing documents of this entity, Corning did not consolidate this entity as of December 31, 2013.
As further discussed in Note 8 (Acquisitions), on January 15, 2014, Corning completed the acquisition of the common shares of Samsung Corning Precision Materials previously held by Samsung Display. As a result of these transactions, Corning became the owner of 100% of the common shares of Samsung Corning Precision Materials, which were consolidated into our results beginning in the first quarter of 2014. Operating under the name of Corning Precision Materials, the former Samsung Corning Precision Materials organization and operations were integrated into the Display Technologies segment in the first quarter of 2014.
Dow Corning
Dow Corning is a U.S.-based manufacturer of silicone products. Corning and Dow Chemical each own half of Dow Corning.
Dow Corning’s financial position and results of operations follow (in millions):
In May 1995, Dow Corning filed for bankruptcy protection to address pending and claimed liabilities arising from breast implant product lawsuits. On June 1, 2004, Dow Corning emerged from Chapter 11 with a Plan of Reorganization (the “Plan”) which provided for the settlement or other resolution of implant claims. The Plan also includes releases for Corning and Dow Chemical as shareholders in exchange for contributions to the Plan.
Under the terms of the Plan, Dow Corning has established and is funding a Settlement Trust and Litigation Facility (the “Settlement Facility”) to provide a means for tort claimants to settle or litigate their claims. The Plan contains a cap on the amount of payments required from Dow Corning to fund the Settlement Facility. Inclusive of insurance, Dow Corning has paid approximately $1.8 billion to the Settlement Facility, and approximately $1.3 billion has been paid to claimants out of the Settlement Facility. As of December 31, 2015, Dow Corning had recorded a reserve for breast implant litigation of $291 million.
During the fourth quarter of 2014, Dow Corning, with the assistance of a third-party advisor, developed an estimate of the future Implant Liability based on evidence that the actual funding required for the Settlement Facility is expected to be lower than the full funding cap set forth in the Plan. On December 12, 2014, Dow Corning reduced its Implant Liability by approximately $1.3 billion (Corning’s share after-tax: $393 million). Previously, the Implant Liability was based on the full funding cap set forth in the Plan. The revised Implant Liability reflects Dow Corning’s best estimate of its remaining obligations under the Plan. Should events or circumstances occur in the future which change Dow Corning’s estimate of the remaining funding obligations; the Implant Liability will be revised. This adjustment does not affect Dow Corning’s commitment or ability to fulfill its obligations under the settlement, and all claims that qualify under the settlement will be paid according to the terms of the Plan.
As a separate matter arising from its bankruptcy proceedings, Dow Corning is defending claims asserted by a number of commercial creditors who claim additional interest at default rates and enforcement costs, during the period from May 1995 through June 2004.
As of December 31, 2015, Dow Corning has estimated the potential liability to these creditors to be within the range of $104 million to $341 million. As Dow Corning management believes no single amount within the range appears to be a better estimate than any other amount within the range, Dow Corning has recorded the minimum liability within the range. Should Dow Corning not prevail in this matter, Corning’s equity earnings would be reduced by its 50% share of the amount in excess of $104 million, net of applicable tax benefits. There are a number of other claims in the bankruptcy proceedings against Dow Corning awaiting resolution by the U.S. District Court, and it is reasonably possible that Dow Corning may record bankruptcy-related charges in the future. The remaining tort claims against Dow Corning are expected to be channeled by the Plan into facilities established by the Plan or otherwise defended by the Litigation Facility.
On December 11, 2015, Corning announced its intention to exchange its 50% equity interest in Dow Corning Corporation for 100% of the stock of a newly formed entity that will become a wholly owned subsidiary of Corning Incorporated. The newly formed entity will hold approximately 40% ownership in Hemlock Semiconductor Group and approximately $4.8 billion in cash. Upon completion of this strategic realignment, which is expected to close during the first half of 2016, Dow Chemical, an equal owner of Dow Corning with Corning since 1943, will assume 100% ownership of Dow Corning.
Pittsburgh Corning Corporation and Asbestos Litigation. Corning and PPG Industries, Inc. (“PPG”) each own 50% of the capital stock of Pittsburgh Corning Corporation (“PCC”). Over a period of more than two decades, PCC and several other defendants were named in numerous lawsuits involving claims alleging personal injury from exposure to asbestos. On April 16, 2000, PCC filed for Chapter 11 reorganization in the U.S. Bankruptcy Court for the Western District of Pennsylvania. At the time PCC filed for bankruptcy protection, there were approximately 11,800 claims pending against Corning in state court lawsuits alleging various theories of liability based on exposure to PCC’s asbestos products and typically requesting monetary damages in excess of one million dollars per claim. Corning has defended those claims on the basis of the separate corporate status of PCC and the absence of any facts supporting claims of direct liability arising from PCC’s asbestos products.
PCC Plan of Reorganization
Corning, with other relevant parties, has been involved in ongoing efforts to develop a Plan of Reorganization that would resolve the concerns and objections of the relevant courts and parties. On November 12, 2013, the Bankruptcy Court issued a decision finally confirming an Amended PCC Plan of Reorganization (the “Amended PCC Plan” or the “Plan”). On September 30, 2014, the United States District Court for the Western District of Pennsylvania (the “District Court”) affirmed the Bankruptcy Court’s decision confirming the Amended PCC Plan. On October 30, 2014, one of the objectors to the Plan appealed the District Court’s affirmation of the Plan to the United States Court of Appeals for the Third Circuit (the “Third Circuit Court of Appeals”). On January 6, 2016, all pending appeals of the Plan were withdrawn and Corning expects that the Plan will become effective in April 2016.
Under the Plan as affirmed by the Bankruptcy Court and affirmed by the District Court, Corning is required to contribute its equity interests in PCC and Pittsburgh Corning Europe N.V. (“PCE”), a Belgian corporation, and to contribute $290 million in a fixed series of payments, recorded at present value. Corning will contribute its equity interest in PCC and PCE on the Plan’s Funding Effective Date, which is expected to occur in June 2016. Corning has the option to use its common stock rather than cash to make these payments, but the liability is fixed by dollar value and not the number of shares. The Plan requires Corning to make: (1) one payment of $70 million one year from the date the Plan becomes effective and certain conditions are met; and (2) five additional payments of $35 million, $50 million, $35 million, $50 million, and $50 million, respectively, on each of the five subsequent anniversaries of the first payment, the final payment of which is subject to reduction based on the application of credits under certain circumstances.
Non-PCC Asbestos Litigation
In addition to the claims against Corning related to its ownership interest in PCC, Corning is also the defendant in approximately 9,700 other cases (approximately 37,300 claims) alleging injuries from asbestos related to its Corhart business and similar amounts of monetary damages per case (the “non-PCC asbestos claims”). When PCC filed for bankruptcy protection, the Court granted a preliminary injunction to suspend all asbestos cases against PCC, PPG and Corning – including these non-PCC asbestos claims (the “Stay”). The Stay remains in place as of the date of this filing; however, given that the Amended PCC Plan is now affirmed by the District Court and the Third Circuit Court of Appeals, Corning anticipates the Stay will be lifted in the second half of 2016. These non-PCC asbestos claims have been covered by insurance without material impact to Corning to date. As of December 31, 2015, Corning had received for these claims approximately $19 million in insurance payments. When the Stay is lifted, these non-PCC asbestos claims will be allowed to proceed against Corning. In prior periods, Corning recorded in its estimated asbestos litigation liability an additional $150 million for these and any future non-PCC asbestos claims.
Total Estimated Liability for the Amended PCC Plan and the Non-PCC Asbestos Claims
The liability for the Amended PCC Plan and the non-PCC asbestos claims was estimated to be $678 million at December 31, 2015, compared with an estimate of liability of $681 million at December 31, 2014. The $678 million liability is comprised of $238 million of the fair value of PCE, $290 million for the fixed series of payments, and $150 million for the non-PCC asbestos claims, all referenced in the preceding paragraphs. With respect to the PCE liability, at December 31, 2015 and 2014, the fair value of $238 million and $241 million of our interest in PCE significantly exceeded its carrying value of $154 million and $162 million, respectively. There have been no impairment indicators for our investment in PCE and we continue to recognize equity earnings of this affiliate. At the time Corning recorded this liability, it determined it lacked the ability to recover the carrying amount of its investment in PCC and its investment was other than temporarily impaired. As a result, we reduced our investment in PCC to zero. As the fair value in PCE is significantly higher than book value, management believes that the risk of an additional loss in an amount materially higher than the fair value of the liability is remote. With respect to the liability for other asbestos litigation, the liability for non-PCC asbestos claims was estimated based upon industry data for asbestos claims since Corning does not have recent claim history due to the Stay issued by the Bankruptcy Court. The estimated liability represents the undiscounted projection of claims and related legal fees over the next 20 years. The amount may need to be adjusted in future periods as more data becomes available; however, we cannot estimate any additional losses at this time. For the years ended December 31, 2015 and 2014, Corning recorded asbestos litigation income of $15 million and expense of $9 million, respectively. At December 31, 2015, $440 million of the obligation, consisting of the $290 million for the fixed series of payments and $150 million for the non-PCC asbestos claims, is classified as a non-current liability, as installment payments for the cash portion of the obligation are not planned to commence until more than 12 months after the Amended PCC Plan becomes effective. The amount of the obligation related to the fair value of PCE, $238 million, was reclassified to a current liability in the fourth quarter of 2015, as the contribution of the assets is expected to be made within the next twelve months.
Non-PCC Asbestos Claims Insurance Litigation
Several of Corning’s insurers have commenced litigation in state courts for a declaration of the rights and obligations of the parties under insurance policies, including rights that may be affected by the potential resolutions described above. Corning has resolved these issues with a majority of its relevant insurers, and is vigorously contesting these cases with the remaining relevant insurers. Management is unable to predict the outcome of the litigation with these remaining insurers.
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Note 8 - Acquisitions |
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Business Combination Disclosure [Text Block] |
8. Acquisitions
Year ended December 31, 2015
Corning completed five acquisitions in 2015. There have been minor adjustments during 2015 made to the preliminary allocation of the total purchase consideration related to working capital adjustments and true-up of the fair value of assets acquired for the acquisitions. Corning has completed the purchase accounting for four acquisitions. The purchase accounting related to one acquisition in the fourth quarter of 2015 has not been completed and amounts related to this acquisition are subject to change. A summary of the allocation of the total purchase consideration for the five acquisitions is as follows (in millions):
The total consideration related to the acquisitions primarily consisted of cash and, in two of the acquisitions, contingent consideration. The contingent consideration arrangements may require additional amounts to be paid in 2016 and 2017 based on projections of future revenues. The combined potential additional consideration is capped at $28 million. The total fair value of the contingent consideration for the two acquisitions was valued at $13 million as of the acquisition date and $10 million as of December 31, 2015. The change in fair value of contingent consideration of $3 million was recorded as an adjustment to selling, general and administrative expenses.
The goodwill generated from these acquisitions is primarily related to the value of the product portfolio and customer/distribution networks acquired, combined with Corning’s existing business segments, as well as market participant synergies and other intangibles that do not qualify for separate recognition.
The acquired amortizable intangible assets have a weighted-average useful life of approximately 10 years.
Acquisition-related costs of $11 million included in selling, general and administrative expense in the Consolidated Statements of Income for the year ended December 31, 2015 included costs for legal, accounting, valuation and other professional services. The Consolidated Financial Statements include the operating results of each business combination from the date of acquisition. Pro forma results of operations have not been presented because the effects of the acquisitions, individually and in the aggregate, were not material to Corning’s financial results.
Year ended December 31, 2014
On January 15, 2014, Corning completed a series of strategic and financial agreements pursuant to the Framework Agreement with Samsung Display to acquire the remaining common shares of Samsung Corning Precision Materials. The transaction is expected to strengthen product and technology collaborations between the two companies and allow Corning to extend its leadership in specialty glass and drive earnings growth.
The acquisition of Samsung Corning Precision Materials was accounted for under the purchase method of accounting in accordance with business combination accounting guidance. Accordingly, the purchase price was allocated to the assets acquired and liabilities assumed, based on their fair value on the date of acquisition. The fair value was determined based on the fair value of consideration transferred for the remaining equity interest of Samsung Display’s shares.
In connection with the purchase of Samsung Display’s equity interest in Samsung Corning Precision Materials pursuant to the Framework Agreement, the Company designated a new series of its preferred stock as Fixed Rate Cumulative Convertible Preferred Stock, Series A, par value $100 per share (“Preferred Stock”). As contemplated by the Framework Agreement, Samsung Display became the owner of 2,300 shares of Preferred Stock (with an issue price of $1 million per share), of which 1,900 shares were issued in connection with the acquisition and 400 shares were issued for cash.
Corning issued 1,900 shares of Preferred Stock as consideration in the acquisition of Samsung Corning Precision Materials which had a fair value of $1.9 billion on the acquisition date. The fair value was determined using an option pricing model based on the features of the Preferred Stock. That measure is based on Level 2 inputs observable in the market such as Corning’s common stock price and dividend yield.
As a result of the acquisition of Samsung Corning Precision Materials in January 2014, the Company has contingent consideration that was measured using unobservable (Level 3) inputs. This contingent consideration arrangement potentially requires additional consideration to be paid between the parties in 2018: one based on projections of future revenues generated by the business of Corning Precision Materials for the period between the acquisition date and December 31, 2017, which is subject to a cap of $665 million; and another based on the volumes of certain sales during the same period, which is subject to a separate cap of $100 million. The fair value of the potential receipt of the contingent consideration in 2018 in the amount of $196 million recognized on the acquisition date was estimated by applying an option pricing model using the Company’s projection of future revenues generated by Corning Precision Materials. Changes in the fair value of the contingent consideration in future periods are valued using an option pricing model and are recorded in Corning’s results in the period of the change.
On December 29, 2015, Corning and Samsung Display entered into an agreement pursuant to which Corning exchanged the amount of contingent consideration in excess of $300 million (net present fair value: $246 million), as consideration for the incremental fair value associated with a number of commercial agreements, including the amendment of its long-term supply agreement with Samsung Display. As of December 29, 2015, the net present fair value of the contingent consideration receivable was $458 million. The net present fair value of the commercial benefit associated with the amended long-term supply agreement exceeds the value exchanged by Corning pursuant to this agreement (net present fair value: $212 million). Consequently, Corning reclassified this amount to the other asset line of the Consolidated Balance Sheet and will amortize the amount over the remaining term of the long-term supply agreement as a reduction in revenue.
The following table summarizes the total fair value of Samsung Corning Precision Materials at the acquisition date including the net consideration transferred to acquire the remaining 42.5% of Samsung Corning Precision Materials, the fair value of Corning’s non-controlling interest in Samsung Corning Precision Materials pre- and post-acquisition and the amount of the implied fair value of the total entity for the purpose of allocating the purchase price to the acquired net assets.
The $1.9 billion fair value of consideration transferred for the remaining 42.5% interest in Samsung Corning Precision Materials plus the fair value of Corning’s pre-acquisition fair value less the contingent consideration due Corning as of the acquisition date results in a net fair value for the total entity of $4 billion.
As a result of the acquisition of Samsung Corning Precision Materials, Corning reacquired its technology license rights and effectively settled its pre-existing royalty contract with the acquired entity, Samsung Corning Precision Materials. With regard to the reacquired right, Corning engaged a third-party specialist to assist in assessing the fair value of this right and determined that the reacquired right had a value of zero. In addition, the Company assessed whether this royalty contract was favorable or unfavorable to Corning. It was determined that the contractual royalty rate of 3% as compared to the then current market rate of 12% was unfavorable to Corning. The effective settlement of the contract was valued using the Income Approach; specifically, a relief from royalty method. The amount by which the contract was unfavorable to Corning when compared to current market transactions for similar items resulted in a loss of $320 million which was recorded on the acquisition date, representing 100% of the loss on the effective settlement of the contract. There were no stated contractual settlement provisions or previously recorded assets or liabilities to consider when determining the value associated with the settlement.
Because the pre-existing contract was unfavorable to Corning, a portion of the consideration transferred was deemed to be applicable to the effective settlement of the royalty contract between Corning and the acquiree, Samsung Corning Precision Materials. The $320 million loss attributable to the settlement of the pre-existing arrangement was accounted for as a separate transaction from the business combination as follows:
The net economic effect to Corning following the transaction was a net loss of $136 million, constituting a $320 million loss due to Corning’s unfavorable contract and its share of the favorable contract in Samsung Corning Precision Materials of $184 million.
The gain on the previously held equity investment was calculated based on the fair value of the entity immediately preceding the acquisition of Samsung Corning Precision Materials. As the pre-existing contract was treated as a separate transaction, the pre-existing contract was not taken into consideration when calculating the gain on the previously held equity interest.
The net gain on previously owned equity was calculated as follows:
The following table summarizes the amounts of identified assets acquired and liabilities assumed at acquisition date and recorded measurement period adjustments. Corning has completed its accounting for the acquisition of Samsung Corning Precision Materials and its review of deferred taxes.
Recognized amounts of identified assets acquired and liabilities assumed (in millions):
The goodwill is primarily attributable to the workforce of the acquired business and the synergies expected to result from the integration of Corning Precision Materials. Acquisition-related costs of $93 million in the year ended December 31, 2014 included costs for post-acquisition compensation expense, legal, accounting, valuation and other professional services and were included in selling, general and administrative expenses in the Consolidated Statements of Income. Since the date of acquisition, the consolidation of Corning Precision Materials added $1,343 million and $1,761 million to net sales for the years ending December 31, 2015 and 2014, respectively. The impact to net income of the consolidation of Corning Precision Materials is impracticable to calculate due to the level of integration within the Display Technologies segment and the significant amount of estimates that would be required.
Unaudited Pro Forma Financial Information
The unaudited pro forma combined consolidated statement of income for the year ended December 31, 2013, was derived from the financial statements of Corning and Samsung Corning Precision Materials for the year ended December 31, 2013, and is presented to show how Corning might have appeared had the acquisition of Samsung Corning Precision Materials occurred as of January 1, 2013.
The unaudited pro forma combined consolidated financial information was prepared pursuant to the rules and regulations of the SEC. The unaudited pro forma adjustments reflecting the acquisition of Samsung Corning Precision Materials have been prepared in accordance with the business combination accounting guidance and reflect the allocation of the purchase price to the acquired assets and liabilities based upon the fair values, using the assumptions set forth above.
Unaudited Pro Forma Financial Information (in millions, except per share data):
There were no other significant acquisitions for the year ended December 31, 2014 and December 31, 2013.
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Note 9 - Property, Plant and Equipment, Net of Accumulated Depreciation |
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Property, Plant and Equipment Disclosure [Text Block] |
9. Property, Plant and Equipment, Net of Accumulated Depreciation
Property, plant and equipment, net of accumulated depreciation follow (in millions):
Approximately $35 million, $40 million and $35 million of interest costs were capitalized as part of property, plant and equipment, net of accumulated depreciation, in 2015, 2014 and 2013, respectively.
Manufacturing equipment includes certain components of production equipment that are constructed of precious metals. At December 31, 2015 and 2014, the recorded value of precious metals totaled $3 billion and $3.1 billion, respectively. Depletion expense for precious metals in the years ended December 31, 2015, 2014 and 2013 was $19 million, $21 million and $20 million, respectively.
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Note 10 - Goodwill and Other Intangible Assets |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Text Block] |
10. Goodwill and Other Intangible Assets
Goodwill
Changes in the carrying amount of goodwill for the twelve months ended December 31, 2015 and 2014 were as follows (in millions):
Corning’s gross goodwill balance for the fiscal years ended December 31, 2015 and 2014 were $7.9 billion and $7.6 billion, respectively. Accumulated impairment losses were $6.5 billion for the fiscal years ended December 31, 2015 and 2014, respectively, and were generated primarily through goodwill impairments related to the Optical Communications segment.
Other Intangible Assets
Other intangible assets follow (in millions):
Amortized intangible assets are primarily related to the Optical Communications and Life Sciences segments. The net carrying amount of intangible assets increased by $209 million during the year ended December 31, 2015, primarily due to acquisitions of $288 million offset by amortization of $54 million and foreign currency translation adjustments of $25 million.
Amortization expense related to these intangible assets is estimated to be $61 million annually for 2016 through 2018, $60 million for 2019 and $55 million for 2020.
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Note 11 - Other Assets and Other Liabilities |
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Other Assets Liabilities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Assets Liabilities Disclosure [Text Block] |
Other assets follow (in millions):
Other liabilities follow (in millions):
Asbestos Litigation
Corning and PPG each own 50% of the capital stock of PCC. Over a period of more than two decades, PCC and several other defendants were named in numerous lawsuits involving claims alleging personal injury from exposure to asbestos. The liability for the Amended PCC Plan and the non-PCC asbestos claims was estimated to be $678 million at December 31, 2015, compared with an estimate of liability of $681 million at December 31, 2014. At December 31, 2015, $440 million of the obligation, consisting of $290 million for the fixed series of payments and $150 million for the non-PCC asbestos claims, is classified as a non-current liability, as installment payments for the cash portion of the obligation are not planned to commence until more than 12 months after the Amended PCC Plan becomes effective. The amount of the obligation related to the fair value of PCE, $238 million, was reclassified to a current liability in the fourth quarter of 2015, as the contribution of the assets is expected to be made within the next twelve months. Refer to Note 7 (Investments) to the Consolidated Financial Statements for additional information on the asbestos litigation.
Customer Deposits
In December 2015, Corning announced that with the support of the Hefei government it will locate a Gen 10.5 glass manufacturing facility in the Hefei XinZhan General Pilot Zone in Anhui Province, China. Glass substrate production from the new facility is expected to support mass production of LCD panels for large-size televisions by the third quarter of 2018.
As part of this investment, Corning and a Chinese customer have entered into a long-term supply agreement that commits the customer to the purchase of Gen 10.5 glass substrates from the Corning manufacturing facility in Hefei. This agreement stipulates that the customer will provide a non-refundable cash deposit in the amount of approximately $400 million to Corning to secure rights to an amount of glass that is produced by Corning over the next 10 years. Corning received $197 million of this deposit in 2015 and will receive the additional $197 million in 2016. As glass is shipped to the customer, 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. In 2015, there were no credit memoranda issued.
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Note 12 - Debt |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Text Block] |
(In millions)
At December 31, 2015 and 2014, the weighted-average interest rate on current portion of long-term debt was 7.0% and 2.5%, respectively. At December 31, 2015, the weighted-average interest rate on commercial paper was 0.6%.
Based on borrowing rates currently available to us for loans with similar terms and maturities, the fair value of long-term debt was $4.1 billion at December 31, 2015 and $3.6 billion at December 31, 2014. The Company measures the fair value of its long-term debt using Level 2 inputs based primarily on current market yields for its existing debt traded in the secondary market.
The following table shows debt maturities by year at December 31, 2015 (in millions)*:
Debt Issuances and Retirements
2015
2014
2013
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Note 13 - Employee Retirement Plans |
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Compensation and Retirement Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pension and Other Postretirement Benefits Disclosure [Text Block] |
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 2015, we made voluntary cash contributions of $65 million to our domestic defined benefit pension plan and contributed $35 million to our international pension plans. In 2014, we made voluntary cash contributions of $85 million to our domestic defined benefit pension plan and contributed $45 million to our international pension plans. Although we will not be subject to any mandatory contributions in 2016, we anticipate making voluntary cash contributions of up to $62 million to our domestic pension plan and up to $36 million to our international pension plans in 2016.
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 has impacted their contribution rate in 2009 and going forward. The pre-65 retirees triggered the cap in 2010, which has impacted their contribution rate in 2011 and going forward. 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.
Obligations and Funded Status
The change in benefit obligation and funded status of our employee retirement plans follows (in millions):
The accumulated benefit obligation for defined benefit pension plans was $3.5 billion and $3.6 billion at December 31, 2015 and 2014, respectively.
The following information is presented for pension plans where the projected benefit obligation as of December 31, 2015 and 2014 exceeded the fair value of plan assets (in millions):
In 2015, the fair value of plan assets exceeded the projected benefit obligation for the United Kingdom, one of the South Korea and one of the France pension plans.
The following information is presented for pension plans where the accumulated benefit obligation as of December 31, 2015 and 2014 exceeded the fair value of plan assets (in millions):
In 2015, the fair value of plan assets exceeded the accumulated benefit obligation for the United Kingdom, the South Korea and one of the France pension plans.
The components of net periodic benefit expense for our employee retirement plans follow (in millions):
The Company expects to recognize $6 million of net prior service cost as a component of net periodic pension cost in 2016 for its defined benefit pension plans. The Company expects to recognize $1 million of net actuarial gain and $4 million of net prior service credit as components of net periodic postretirement benefit cost in 2016.
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. For the seven years prior to the year ended December 31, 2014, Corning utilized the RP 2000 mortality table with improvement Scale AA in performing valuations of its U.S. pension and OPEB liabilities. On October 27, 2014, the Society of Actuaries (“SOA”) published new mortality tables for benefit plan sponsors to consider when measuring their benefit plan costs and obligations. These tables reflect the fact that life expectancies have improved since the last comprehensive study of mortality data was released in 2000. Therefore, in the fourth quarter of 2014, Corning undertook a review of its mortality assumption for its U.S. benefit plans to determine if an update to our current mortality table was appropriate. Based on the findings of this analysis, Corning believes that the RP-2014 table adjusted for Corning’s experience with future improvements projected using scale BB-2D represents the best estimate of future mortality improvement for Corning’s U.S. benefit plans.
Prior to the December 31, 2015 valuation of its defined benefit pension and OPEB plans, Corning used the traditional, single weighted-average discount rate approach to develop the obligation, interest cost and service cost components of net periodic benefit cost for its defined benefit pension and OPEB plans. The individual spot rates from the yield curve are used in measuring the pension plan projected benefit obligation (PBO) or OPEB plan accumulated postretirement benefit obligation (APBO) at the measurement date. The benefit obligation is effectively calculated as the aggregate present value at the measurement date of each future benefit payment related to past service, with each payment discounted using a spot rate from a high-quality corporate bond yield curve that matches the duration of the benefit payment. Under Corning’s traditional, single weighted-average discount rate approach, a single weighted-average rate is developed from the approach described above and rounded to the nearest 25 basis points. Traditionally, the weighted-average discount rate is determined at the plan measurement date, based on the same projected future benefit payments used in developing the benefit obligation. The traditional single weighted-average discount rate represents the constant annual rate that would be required to discount all future benefit payments related to past service from the date of expected future payment to the measurement date such that the aggregate present value equals the benefit obligation.
Beginning with the December 31, 2015 valuation of its defined benefit pension and OPEB plans, Corning is changing its methodology of determining the service and interest cost components of net periodic pension and other postretirement benefit costs to a more granular approach. Under the new approach the cash flows from each applicable pension and OPEB plan will be used to directly calculate the benefit obligation, service cost and interest cost using the spot rates from the applicable yield curve.
Moving to a more granular approach has a limited impact on the determination of the respective benefit obligations. The only impacts will be as a result of the elimination of the rounding of the discount rate that occurred in the traditional approach and the use of specific cash flows for Corning’s non-qualified pension plans, while separately applying the yield curve to each separate OPEB plan instead of aggregating the OPEB plan cash flows. This change will result in a decrease in the interest cost and service cost components of net periodic pension and OPEB costs. For Corning’s pension plans, this change will increase the immediate recognition of actuarial losses (or decrease the immediate recognition of actuarial gains), due to Corning’s previous election to immediately recognize actuarial gains and losses outside of the corridor. For Corning’s OPEB plans, this change will increase the accumulated other comprehensive income (AOCI) account balance due to the accumulation of lower actuarial gains or higher actuarial losses. Over time, the amortization of the actuarial losses from AOCI will begin to reduce the savings from the lower interest cost and service cost.
This change is a change in accounting estimate and therefore applied prospectively (beginning with the next measurement date of December 31, 2015). No restatement of prior periods is required.
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:
The weighted-average assumptions used to determine net periodic benefit cost for years ended December 31 follow:
The assumed rate of return was determined based on the current interest rate environment and historical market premiums relative to fixed income rates of equities and other asset classes. Reasonableness of the results is tested using models provided by the plan actuaries.
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):
Plan Assets
Corning’s expected long-term rates of return on plan assets reflect the average rates of earnings expected on the funds invested to provide for the benefits included in our domestic and international projected benefit obligations. We based these rates on asset/liability forecast modeling, which is based on our current asset allocation, the return and standard deviation for each asset class, current market conditions and transitions from current conditions to long-term returns.
The Company’s overall investment strategy is to obtain sufficient return to offset or exceed inflation and provide adequate liquidity to meet the benefit obligations of the pension plan. 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 of our domestic defined benefit plan assets:
The following tables provide fair value measurement information for the Company’s major categories of our international defined benefit plan assets:
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, 2015 and 2014:
Credit Risk
60% 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.
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
9% 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, 2015 and 2014, the amount of Corning common stock included in equity securities was not significant.
Cash Flow Data
In 2016, we anticipate making voluntary cash contributions of approximately $62 million to our domestic defined benefit plan and approximately $36 million to our international defined benefit plans.
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):
Other Benefit Plans
We offer defined contribution plans covering employees meeting certain eligibility requirements. Total consolidated defined contribution plan expense was $53 million, $62 million and $63 million for the years ended December 31, 2015, 2014 and 2013, respectively.
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Note 14 - Commitments, Contingencies, and Guarantees |
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Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Text Block] |
14. Commitments, Contingencies and Guarantees
The amounts of our obligations follow (in millions):
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, 2015 follow (in millions):
Total rental expense was $94 million for 2015, $92 million for 2014 and $85 million for 2013.
Product warranty liability accruals at December 31, 2015 and December 31, 2014 are insignificant.
Corning is a defendant in various lawsuits, including environmental, product-related suits, the Dow Corning and PCC matters discussed in Note 7 (Investments) to the Consolidated Financial Statements, and is subject to various claims that arise in the normal course of business. In the opinion of management, the likelihood that the ultimate disposition of these matters will have a material adverse effect on Corning’s consolidated financial position, liquidity, or results of operations, is remote. Other than certain asbestos related claims, there are no other material loss contingencies related to litigation.
Corning has been named by the Environmental Protection Agency (the Agency) under the Superfund Act, or by state governments under similar state laws, as a potentially responsible party for 17 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, 2015 and December 31, 2014, Corning had accrued approximately $37 million (undiscounted) and $43 million (undiscounted), respectively, for the estimated liability for environmental cleanup and related litigation. Based upon the information developed to date, management believes that the accrued reserve is a reasonable estimate of the Company’s liability and that the risk of an additional loss in an amount materially higher than that accrued is remote.
The ability of certain subsidiaries and affiliated companies to transfer funds is limited by provisions of foreign government regulations, affiliate agreements and certain loan agreements. At December 31, 2015, the amount of equity subject to such restrictions for consolidated subsidiaries and affiliated companies was not significant. While this amount is legally restricted, it does not result in operational difficulties since we have generally permitted subsidiaries to retain a majority of equity to support their growth programs.
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Note 15 - Hedging Activities |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Text Block] |
15. Hedging Activities
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:
Our most significant foreign currency exposures relate to the Japanese yen, South Korean won, New Taiwan dollar, Chinese renminbi, and the euro. 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 hedges expire coincident 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 a diverse group of highly-rated major international financial institutions with which we have other financial relationships as our counterparties. 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.
Cash Flow Hedges
Our cash flow hedging activities utilize OTC foreign exchange forward contracts to reduce the risk that movements in exchange rates will adversely affect the net cash flows resulting from the sale of products to foreign customers and purchases from foreign suppliers. Our cash flow hedging activity also uses interest rate swaps to reduce the risk of increases in benchmark interest rates on the probable issuance of debt and associated interest payments. In the fourth quarter of 2014, the Company entered into interest rate swap agreements to hedge against the variability in cash flows due to changes in the benchmark interest rate related to an anticipated issuance. The instruments were designated as cash flow hedges.
Corning uses a regression analysis to monitor the effectiveness of its cash flow hedges both prospectively and retrospectively. Through December 31, 2015, the hedge ineffectiveness related to these instruments is not material. Corning defers net gains and losses related to effective portion of cash flow hedges into accumulated other comprehensive (loss) income on the consolidated balance sheet until such time as the hedged item impacts earnings. At December 31, 2015, the amount expected to be reclassified into earnings within the next 12 months is a pre-tax net loss of $4.8 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.
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 in the other (expense) income, net component, relative to ineffectiveness, is nominal for the year ended December 31, 2015.
Net gains and losses from fair value hedges and the effects of the corresponding hedged item are recorded on the same line item of the Consolidated Statement of Income.
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 are denominated in Japanese yen, South Korean won and euro. When these revenues are translated back to U.S. dollars, the Company is exposed to foreign exchange rate movements in the Japanese yen, South Korean won and euro. To protect translated earnings against movements in these currencies, the Company has entered into a series of zero-cost collars and average rate forwards.
The Company also uses these types of contracts to reduce the potential for unfavorable changes in foreign exchange rates to decrease the U.S. dollar value of translated earnings. With a zero-cost collar structure, the Company writes a local currency call option and purchases a local currency put option or vice versa. The zero-cost collars offset the impact of translated earnings above the put price and below the call strike price and that offset is reported in foreign currency hedge gain, net. The Company entered into a series of zero-cost collars, settling quarterly, to hedge the effect of translation impact for each respective quarter, and span up to the fourth quarter of 2017. Due to the nature of the instruments, only either the put option or the call option can be exercised at maturity. As of December 31, 2015, the U.S. dollar net notional value of the zero-cost collar is $2.9 billion. The Company entered into a series of average rate forwards with no associated premium, which will partially hedge the impact of Japanese yen and euro translation on the Company’s projected 2015 through 2017 net income. These forwards have a notional value of $6.4 billion and will settle net without obligation to deliver Japanese yen and euro. In January 2016, Corning took advantage of the stronger yen to extend its foreign exchange hedging program to hedge a significant portion of its projected yen exposure for the period 2018 through 2022.
The Company benefits from the increase in the U.S. dollar equivalent value of its foreign currency earnings in translation. The zero-cost collar would cap the benefit at the strike price of the written call or offset the decline from translation above the strike price of the purchased put.
The fair value of these derivative contracts are recorded as either assets (gain position) or liabilities (loss position) on the Consolidated Balance Sheet. Changes in the fair value of the derivative contracts are recorded currently in earnings in the foreign currency hedge gain, net line of the Consolidated Statement of Income.
The following table summarizes the notional amounts and respective fair values of Corning’s derivative financial instruments on a gross basis for December 31, 2015 and December 31, 2014 (in millions):
The following tables summarize the effect on the consolidated financial statements relating to Corning’s derivative financial instruments (in millions):
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Note 16 - Fair Value Measurements |
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Fair Value Disclosures [Text Block] |
16. Fair Value Measurements
Fair value standards under U.S. GAAP define fair value, establish a framework for measuring fair value in applying generally accepted accounting principles, and require disclosures about fair value measurements. The standards also identify two kinds of inputs that are used to determine the fair value of assets and liabilities: observable and unobservable. Observable inputs are based on market data or independent sources while unobservable inputs are based on the Company’s own market assumptions. Once inputs have been characterized, the inputs are prioritized into one of three broad levels (provided in the table below) used to measure fair value. Fair value standards apply whenever an entity is measuring fair value under other accounting pronouncements that require or permit fair value measurement and require the use of observable market data when available.
The following tables provide fair value measurement information for the Company’s major categories of financial assets and liabilities measured on a recurring basis:
As a result of the acquisition of Samsung Corning Precision Materials in January 2014, the Company has contingent consideration that was measured using unobservable (Level 3) inputs. This contingent consideration arrangement potentially requires additional consideration to be paid between the parties in 2018: one based on projections of future revenues generated by the business of Corning Precision Materials for the period between the acquisition date and December 31, 2017, which is subject to a cap of $665 million; and another based on the volumes of certain sales during the same period, which is subject to a separate cap of $100 million. The fair value of the potential receipt of the contingent consideration in 2018 in the amount of $196 million recognized on the acquisition date was estimated by applying an option pricing model using the Company’s projection of future revenues generated by Corning Precision Materials. Changes in the fair value of the contingent consideration in future periods are valued using an option pricing model and are recorded in Corning’s results in the period of the change.
On December 29, 2015, Corning and Samsung Display entered into an agreement pursuant to which Corning exchanged the amount of contingent consideration in excess of $300 million (net present fair value: $246 million), as consideration for the incremental fair value associated with a number of commercial agreements, including the amendment of its long-term supply agreement with Samsung Display. As of December 29, 2015, the net present fair value of the contingent consideration receivable was $458 million. The net present fair value of the commercial benefit associated with the amended long-term supply agreement exceeds the value exchanged by Corning pursuant to this agreement (net present fair value: $212 million). Consequently, Corning reclassified this amount to the other asset line of the Consolidated Balance Sheet and will amortize the amount over the remaining term of the long-term supply agreement as a reduction in revenue.
Additionally, as a result of the acquisitions of iBwave Solutions Inc. and the fiber-optics business of Samsung Electronics Co., Ltd. in the first quarter of 2015, the Company has contingent consideration that was measured using unobservable (Level 3) inputs. As of December 31, 2015, the fair value of the contingent consideration payable is $10 million.
There were no significant financial assets and liabilities measured on a nonrecurring basis during the years ended December 31, 2015 and 2014.
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Note 17 - Shareholders' Equity |
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Stockholders' Equity Note [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholders' Equity Note Disclosure [Text Block] |
17. Shareholders’ Equity
Fixed Rate Cumulative Convertible Preferred Stock, Series A
On January 15, 2014, Corning designated a new series of its preferred stock as Fixed Rate Cumulative Convertible Preferred Stock, Series A, par value $100 per share, and issued 1,900 shares of Preferred Stock at an issue price of $1 million per share, for an aggregate issue price of $1.9 billion, to Samsung Display in connection with the acquisition of its equity interests in Samsung Corning Precision Materials. Corning also issued to Samsung Display an additional amount of Preferred Stock at closing, for an aggregate issue price of $400 million in cash.
Dividends on the Preferred Stock are cumulative and accrue at the annual rate of 4.25% on the per share issue price of $1 million. The dividends are payable quarterly as and when declared by the Company’s Board of Directors. The Preferred Stock ranks senior to our common stock with respect to payment of dividends and rights upon liquidation. The Preferred Stock is not redeemable except in the case of a certain deemed liquidation event, the occurrence of which is under the control of the Company. The Preferred Stock is convertible at the option of the holder and the Company upon certain events, at a conversion rate of 50,000 shares of Corning’s common stock per one share of Preferred Stock, subject to certain anti-dilution provisions. As of December 31, 2015, 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 of the shares of Preferred Stock to be converted into Common Stock, if, for 25 trading days (whether or not consecutive) within any period of 40 consecutive trading days, the closing price of Common Stock exceeds $35 per share. If the aforementioned right becomes exercisable before the seventh anniversary of the closing, the Company must first obtain the written approval of the holders of a majority of the Preferred Stock before exercising its conversion right. The Preferred Stock does not have any voting rights except as may be required by law.
Share Repurchases
2013 Repurchase Program
On October 31, 2013, as part of the share repurchase program announced on April 24, 2013 (the “2013 Repurchase Program”), Corning entered into an accelerated share repurchase (“ASR”) agreement (the “2013 ASR agreement”) with JP Morgan Chase Bank, National Association, London Branch (“JPMC”). Under the 2013 ASR agreement, Corning agreed to purchase $1 billion of its common stock, in total, with an initial delivery by JPMC of 47.1 million shares based on the current market price, and payment of $1 billion made by Corning to JPMC. The payment to JPMC was recorded as a reduction to shareholders’ equity, consisting of an $800 million increase in treasury stock, which reflects the value of the initial 47.1 million shares received upon execution, and a $200 million decrease in other-paid-in capital, which reflects the value of the stock held back by JPMC pending final settlement. On January 28, 2014, the 2013 ASR agreement was completed. Corning received an additional 10.5 million shares on January 31, 2014 to settle the 2013 ASR agreement. In total, Corning purchased 57.6 million shares based on the average daily volume weighted-average price of Corning’s common stock during the term of the 2013 ASR agreement, less a discount.
In addition to the shares repurchased through the 2013 ASR agreement, we repurchased 61.3 million shares of common stock on the open market for approximately $1 billion, as part of the 2013 Repurchase Program. This program was executed between the second quarter of 2013 and the first quarter of 2014, with a total of 118.9 million shares repurchased for approximately $2 billion.
March 2014 Repurchase Program
On March 4, 2014, as part of the $2 billion share repurchase program announced on October 22, 2013 and made effective concurrent with the closing of Corning’s acquisition of Samsung Corning Precision Materials on January 15, 2014 (the “March 2014 Repurchase Program”), Corning entered into an ASR agreement (the “2014 ASR agreement”) with Citibank N.A. (“Citi”). Under the 2014 ASR agreement, Corning agreed to purchase $1.25 billion of its common stock, with an initial delivery by Citi of 52.5 million shares based on the current market price, and payment of $1.25 billion made by Corning to Citi. The 2014 ASR agreement was completed on May 28, 2014, and Corning received an additional 8.7 million shares to settle the 2014 ASR agreement. In total, Corning repurchased 61.2 million shares based on the average daily volume weighted-average price of Corning’s common stock during the term of the 2014 ASR agreement, less a discount.
In addition to the shares repurchased through the 2014 ASR agreement, in the year ended December 31, 2014, we repurchased 36.9 million shares of common stock on the open market for approximately $750 million, as part of the March 2014 Repurchase Program. This program was completed in the fourth quarter of 2014, with a total of 98.2 million shares repurchased for approximately $2 billion.
December 2014 Repurchase Program
On December 3, 2014, Corning’s Board of Directors authorized the repurchase of up to $1.5 billion shares of common stock (the “December 2014 Repurchase Program”) between the date of announcement and December 31, 2016. In the year ended December 31, 2015, we repurchased 70.4 million shares of common stock for approximately $1.5 billion as part of the December 2014 Repurchase Program, which was completed in the third quarter of 2015.
2015 Repurchase Programs
On July 15, 2015, Corning’s Board of Directors approved a $2 billion share repurchase program (the “July 2015 Repurchase Program”) and on October 26, 2015 the Board of Directors authorized an additional $4 billion share repurchase program (together with the July 2015 Repurchase Program, the “2015 Repurchase Programs”). The 2015 Repurchase Programs permit Corning to effect repurchases from time to time through a combination of open market repurchases, privately negotiated transactions, advance repurchase agreements and/or other arrangements.
On October 28, 2015, Corning entered into an ASR with Morgan Stanley & Co. LLC (“Morgan Stanley”) to repurchase $1.25 billion of Corning’s common stock (the “2015 ASR agreement”). The 2015 ASR was executed under the July 2015 Repurchase Program. Under the 2015 ASR agreement, Corning made a $1.25 billion payment to Morgan Stanley on October 29, 2015 and received an initial delivery of approximately 53.1 million shares of Corning common stock from Morgan Stanley on the same day. The payment to Morgan Stanley was recorded as a reduction to shareholders’ equity, consisting of $1 billion increase in treasury stock, which reflects the value of the initial 53.1 million shares received upon execution, and a $250 million decrease in other-paid-in capital, which reflects the value of the stock held back by Morgan Stanley pending final settlement. On January 19, 2016, the 2015 ASR agreement was completed. Corning received an additional 15.9 million shares on January 22, 2016 to settle the 2015 ASR agreement. In total, Corning purchased 69 million shares based on the average daily volume weighted-average price of Corning’s common stock during the term of the 2015 ASR agreement, less a discount.
In addition to the shares repurchased through the 2015 ASR agreement, we repurchased 98 million shares of common stock on the open market for approximately $2 billion, as part of the December 2014 Repurchase Program and the July 2015 Repurchase Program, resulting in a total of 151 million shares repurchased during 2015.
The following table presents changes in capital stock for the period from January 1, 2013 to December 31, 2015 (in millions):
Accumulated Other Comprehensive Income
A summary of changes in the components of accumulated other comprehensive income (loss), including our proportionate share of equity method investee’s accumulated other comprehensive income (loss), is as follows (in millions) (1):
(In millions)
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Note 18 - Earnings Per Common Share |
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Earnings Per Share [Text Block] |
18. Earnings Per Common Share
Basic earnings 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 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 per common share from continuing operations follows (in millions, except per share amounts):
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Note 19 - Share-based Compensation |
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Disclosure of Compensation Related Costs, Share-based Payments [Text Block] |
19. Share-based Compensation
Stock Compensation Plans
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, 2015, there were approximately 72 million unissued common shares available for future grants 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.
The fair value of awards granted subsequent to January 1, 2006 that are expected to ultimately vest is recognized as expense over the requisite service periods. The number of options expected to vest equals the total options granted less an estimation of the number of forfeitures expected to occur prior to vesting. The forfeiture rate is calculated based on 15 years of historical data and is adjusted if actual forfeitures differ significantly from the original estimates. The effect of any change in estimated forfeitures would be recognized through a cumulative adjustment that would be included in compensation cost in the period of the change in estimate.
Total share-based compensation cost of $46 million, $58 million and $54 million was disclosed in operating activities on the Company’s Consolidated Statements of Cash Flows for the years ended December 31, 2015, 2014 and 2013, respectively.
Stock Options
Corning’s stock option plans provide non-qualified and incentive stock options to purchase authorized but unissued shares, or treasury shares, at the market price on the grant date and generally become exercisable in installments from one to five years from the grant date. The maximum term of non-qualified and incentive stock options is 10 years from the grant date.
The following table summarizes information concerning stock options outstanding including the related transactions under the stock option plans for the year ended December 31, 2015:
The aggregate intrinsic value (market value of stock less option exercise price) in the preceding table represents the total pretax intrinsic value, based on the Company’s closing stock price on December 31, 2015, which would have been received by the option holders had all option holders exercised their “in-the-money” options as of that date. The total number of “in-the-money” options exercisable on December 31, 2015, was approximately 13 million.
The weighted-average grant-date fair value for options granted for the years ended December 31, 2015, 2014 and 2013 was $7.99, $8.29 and $5.02, respectively. The total fair value of options that vested during the years ended December 31, 2015, 2014 and 2013 was approximately $36 million, $16 million and $29 million, respectively. Compensation cost related to stock options for the years ended December 31, 2015, 2014 and 2013, was approximately $14 million, $22 million and $25 million, respectively.
As of December 31, 2015, there was approximately $7 million of unrecognized compensation cost related to stock options granted under the Plans. The cost is expected to be recognized over a weighted-average period of 1.7 years.
Proceeds received from the exercise of stock options were $102 million for the year ended December 31, 2015, which were included in financing activities on the Company’s Consolidated Statements of Cash Flows. The total intrinsic value of options exercised for the years ended December 31, 2015, 2014 and 2013 was approximately $48 million, $69 million and $55 million, respectively. The income tax benefit realized from share-based compensation was not significant for the years ended December 31, 2015 and 2014. There were no income tax benefits realized from share-based compensation for the year ended December 31, 2013, due to net operating loss and credit carryforwards available to the Company. Refer to Note 6 (Income Taxes).
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 valuation of option grants under our Stock Option Plans:
Incentive Stock Plans
The Corning Incentive Stock Plan permits restricted stock and restricted stock unit grants, either determined by specific performance goals or issued directly, in most instances, subject to the possibility of forfeiture and without cash consideration. Restricted stock and restricted stock units under the Incentive Stock Plan are granted at the closing market price on the grant date, contingently vest over a period of generally one to ten years, and generally have contractual lives of one to ten years. The fair value of each restricted stock grant or restricted stock unit awarded under the Incentive Stock Plan is based on the grant date closing price of the Company’s stock.
Time-Based Restricted Stock and Restricted Stock Units:
Time-based restricted stock and restricted stock units are issued by the Company on a discretionary basis, and are payable in shares of the Company’s common stock upon vesting. The fair value is based on the closing market price of the Company’s stock on the grant date. Compensation cost is recognized over the requisite vesting period and adjusted for actual forfeitures before vesting.
The following table represents a summary of the status of the Company’s non-vested time-based restricted stock and restricted stock units as of December 31, 2014, and changes which occurred during the year ended December 31, 2015:
As of December 31, 2015, there was approximately $27 million of unrecognized compensation cost related to non-vested time-based restricted stock and restricted stock units compensation arrangements granted under the Plan. The cost is expected to be recognized over a weighted-average period of 2.3 years. The total fair value of time-based restricted stock that vested during the years ended December 31, 2015, 2014 and 2013 was approximately $32 million, $32 million and $29 million, respectively. Compensation cost related to time-based restricted stock and restricted stock units was approximately $32 million, $36 million and $29 million for the years ended December 31, 2015, 2014 and 2013, respectively.
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Note 20 - Reportable Segments |
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Segment Reporting Disclosure [Text Block] |
20. Reportable Segments
Our reportable segments are as follows:
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 Corning’s Pharmaceutical Technologies business, which consists of a pharmaceutical glass business and a glass tubing business used in the pharmaceutical packaging industry. This segment also includes Corning Precision Materials’ non-LCD business and new product lines and development projects such as laser technologies, advanced flow reactors and adjacency businesses in pursuit of thin, strong glass, as well as certain corporate investments such as Eurokera and Keraglass equity affiliates.
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.
The following provides historical segment information as described above:
Segment Information (in millions)
For the year ended December 31, 2015, the following number of customers, which individually accounted for 10% or more of each segment’s sales, represented the following concentration of segment sales:
A significant amount of specialized manufacturing capacity for our Display Technologies segment is concentrated in Asia. It is at least reasonably possible that the use of a facility located outside of an entity’s home country could be disrupted. Due to the specialized nature of the assets, it would not be possible to find replacement capacity quickly. Accordingly, loss of these facilities could produce a near-term severe impact to our display business and the Company as a whole.
A reconciliation of reportable segment net income (loss) to consolidated net income follows (in millions):
A reconciliation of reportable segment assets to consolidated total assets follows (in millions):
Selected financial information concerning the Company’s product lines and reportable segments follow (in millions):
Information concerning principal geographic areas was as follows (in millions):
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Schedule II - Valuation Accounts and Reserves |
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Schedule of Valuation and Qualifying Accounts Disclosure [Text Block] |
Schedule II – Valuation Accounts and Reserves
(in millions)
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Quarterly Operating Results |
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Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Quarterly Financial Information [Text Block] |
Quarterly Operating Results
(unaudited)
(In millions, except per share amounts)
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Accounting Policies, by Policy (Policies) |
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Accounting Policies [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Consolidation, Policy [Policy Text Block] | 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. In the fourth quarter of 2013, Corning acquired the minority interests of three shareholders in one of our affiliated companies, Samsung Corning Precision Materials, which increased Corning’s ownership percentage from 50% to 57.5%. Because this transaction did not result in a change in control based on the governing articles of this entity, Corning did not consolidate this entity as of December 31, 2013. Corning acquired the remaining ownership interests of Samsung Corning Precision Materials on January 15, 2014, which increased Corning’s ownership to 100% and resulted in consolidation of the entity beginning in the first quarter of 2014.
We use the cost method to account 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. In accordance with the cost method, these investments are recorded at cost or fair value, as appropriate.
All material intercompany accounts, transactions and profits are eliminated in consolidation.
Certain prior year amounts have been reclassified to conform to the current-year presentation. These reclassifications had no impact on our results of operations, financial position, or changes in shareholders’ equity.
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Business Combinations Policy [Policy Text Block] | Samsung Corning Precision Materials Co., Ltd. (“Samsung Corning Precision Materials”)
As further discussed in Note 8 (Acquisitions) to the Consolidated Financial Statements, on January 15, 2014, Corning completed a series of strategic and financial agreements to acquire the common shares of Samsung Corning Precision Materials previously held by Samsung Display Co., Ltd. (“Samsung Display”). As a result of these transactions, Corning is now the owner of 100% of the common shares of Samsung Corning Precision Materials, which we have consolidated into our results beginning in the first quarter of 2014. Operating under the name of Corning Precision Materials Co., Ltd. (“Corning Precision Materials”), the former Samsung Corning Precision Materials organization and operations were integrated into the Display Technologies segment in the first quarter of 2014.
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Use of Estimates, Policy [Policy Text Block] | 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 of fair value 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.
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Revenue Recognition, Policy [Policy Text Block] | Revenue Recognition
Revenue for sales of goods is recognized when a firm sales agreement is in place, delivery has occurred and sales price is fixed or determinable and collection is reasonably assured. If customer acceptance of products is not reasonably assured, sales are recorded only upon formal customer acceptance. Sales of goods typically do not include multiple product and/or service elements.
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 on a completed contract basis. Revenues under the completed-contract method are recognized upon substantial completion, defined as acceptance by the customer and compliance with performance specifications as agreed upon in the contract. The Company acts as a principal under the contracts, and recognizes revenues with corresponding cost of revenues on a gross basis for the full amount of the contract.
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Research, Development, and Computer Software, Policy [Policy Text Block] | Research and Development Costs
Research and development costs are charged to expense as incurred. Research and development costs totaled $638 million in 2015, $701 million in 2014 and $613 million in 2013.
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Foreign Currency Transactions and Translations Policy [Policy Text Block] | 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. Foreign currency transaction losses for the years ended December 31, 2015, 2014 and 2013 were $22 million, $60 million and $190 million, respectively.
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 income 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.
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Compensation Related Costs, Policy [Policy Text Block] | Share-Based Compensation
Corning’s share-based compensation programs include employee stock option grants, time-based restricted stock awards and time-based restricted stock units, as more fully described in Note 19 (Share-based Compensation) to the Consolidated Financial Statements.
The cost of share-based compensation awards is equal to the fair value of the award at the date of grant and compensation expense is recognized for those awards earned over the vesting period. Corning estimates the fair value of share-based awards using a multiple-point Black-Scholes option valuation model, which incorporates assumptions including expected volatility, dividend yield, risk-free rate, expected term and departure rates.
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Cash and Cash Equivalents, Policy [Policy Text Block] | 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.
Supplemental disclosure of cash flow information follows (in millions):
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Investment, Policy [Policy Text Block] | Short-Term Investments
Our short-term investments consist of available-for-sale securities that are stated at fair value. Consistent with Corning’s cash investment policy, our short-term investments consist primarily of fixed-income securities. Preservation of principal is the primary principle of our cash investment policy that is carried out by limiting interest rate, reinvestment, security, quality and event risk. Our investments are generally liquid and all are investment grade quality. The portfolio is invested predominantly in U.S. government securities and quality money market funds. Unrealized gains and losses, net of tax, are computed on a specific identification basis and are reported as a separate component of accumulated other comprehensive loss in shareholders’ equity until realized. Realized gains and losses are recorded in other (expense) income, net.
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Receivables, Policy [Policy Text Block] | 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.
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Asset Retirement Obligations and Environmental Cost, Policy [Policy Text Block] | 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 potential responsible parties, the Company considers its likely proportionate share of the anticipated remediation costs and the ability of the other parties to fulfill their 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 final outcome could result in additional costs being recognized by the Company in future periods.
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Inventory, Policy [Policy Text Block] | Inventories
Inventories are stated at the lower of cost (first-in, first-out basis) or market.
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Property, Plant and Equipment, Policy [Policy Text Block] | 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 2 (Restructuring, Impairment and Other Charges) to the Consolidated Financial Statements related to accelerated depreciation arising from restructuring programs and Note 9 (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.
Included in the subcategory of equipment are the following types of assets (excluding precious metals):
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.
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Goodwill and Intangible Assets, Policy [Policy Text Block] | 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 the carrying amount may be impaired. Corning also performs a detailed, two-step process every three years if no indicators suggest a test should be performed in the interim. We use this calculation as quantitative validation of the step-zero qualitative process; this process does not represent an election to perform the two-step process in place of the step-zero 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 two-step 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 their 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
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Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block] | 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 also 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. Refer to Note 2 (Restructuring, Impairment and Other Charges) to the Consolidated Financial Statements for more detail.
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Pension and Other Postretirement Plans, Pensions, Policy [Policy Text Block] | 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 for discount rates 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 for discount rates 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 13 (Employee Retirement Plans) to the Consolidated Financial Statements for additional detail.
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Treasury Stock [Policy Text Block] | Treasury Stock
Shares of common stock repurchased by us are recorded at cost as treasury stock and result in a reduction of Shareholders’ Equity in the consolidated balance sheets. From time to time, treasury shares may be reissued as contributions to our employee benefit plans and for the retirement or conversion of certain debt instruments. When shares are reissued, we use an average cost method for determining cost. The difference between the cost of the shares and the reissuance price is added to or deducted from additional paid-in capital.
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Income Tax, Policy [Policy Text Block] | 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.
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.
The Company is subject to income taxes in the United States and in numerous foreign jurisdictions. With minor exceptions, no provision is made for U.S. income taxes on the undistributed earnings of wholly-owned foreign subsidiaries because substantially all such earnings are indefinitely reinvested in those companies. Provision for the tax consequences of distributions, if any, from consolidated foreign subsidiaries is recorded in the year in which the earnings are no longer indefinitely reinvested in those subsidiaries.
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Equity Method Investments, Policy [Policy Text Block] | 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:
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.
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Fair Value of Financial Instruments, Policy [Policy Text Block] | 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.
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Derivatives, Policy [Policy Text Block] | 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 to swap fixed rate interest payments into floating rate interest payments. These financial exposures are managed in accordance with corporate policies and procedures.
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 statement of income as where the effects of the hedged item are recorded, typically sales, cost of sales or other (expense) income, net. Changes in the fair value of derivatives designated as fair value hedges are recorded currently in earnings offset, to the extent the derivative was effective, by the change in the fair value of the hedged item. Changes in the fair value of derivatives not designated as hedging instruments are recorded currently in earnings in the Foreign currency hedge gain, net line of the consolidated statement of income.
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New Accounting Pronouncements, Policy [Policy Text Block] | New Accounting Standards
In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. (“ASU”) 2014-09, Revenue from Contracts with Customers, as a new Topic, Accounting Standards Codification (“ASC”) Topic 606. The new revenue recognition standard provides a five-step analysis of transactions to determine when and how revenue is recognized. The core principle is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This ASU originally was effective for annual periods beginning after December 15, 2016, including interim periods within that reporting period. This ASU shall be applied retrospectively to each period presented or as a cumulative-effect adjustment as of the date of adoption.
In August 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers (Topic 606), deferring the effective date of ASU 2014-09 by one year. We can elect to adopt the provisions of ASU 2014-09 for annual periods beginning after December 15, 2017, including interim periods within that reporting period. The FASB also agreed to allow entities to choose to adopt the standard as of the original effective date. We are currently assessing the adoption date and potential impact of adopting ASU 2014-09 on our financial statements and related disclosures.
In November 2015, the FASB issued ASU 2015-17, Income Taxes (Topic 740), requiring deferred tax assets and liabilities to be classified as noncurrent in a classified balance sheet. This ASU is effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. Early adoption is permitted as of the beginning of an interim or annual reporting period. We have adopted this ASU prospectively for the year ended December 31, 2015. See Note 6 (Income Taxes) to the Consolidated Financial Statements for additional information.
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Note 1 - Summary of Significant Accounting Policies (Tables) |
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Note 2 - Restructuring, Impairment and Other Charges (Tables) |
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Schedule of Restructuring Reserve by Type of Cost [Table Text Block] |
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Note 3 - Available-for-Sale Investments (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Available-for-sale Securities Reconciliation [Table Text Block] |
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Investments Classified by Contractual Maturity Date [Table Text Block] |
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Schedule of Fair Value and Gross Unrealized Losses of Investments by Category and Length of Time in Continuous Unrealized Loss Position [Table Text Block] |
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Note 5 - Inventories, Net of Inventory Reserves (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||
Schedule of Inventory, Current [Table Text Block] |
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Note 6 - Income Taxes (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Income before Income Tax, Domestic and Foreign [Table Text Block] |
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Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] |
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Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] |
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Schedule of Deferred Tax Assets and Liabilities [Table Text Block] |
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Schedule of Net Deferred Tax Assets [Table Text Block] |
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Summary of Tax Credit Carryforwards [Table Text Block] |
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Summary of Income Tax Contingencies [Table Text Block] |
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Note 7 - Investments (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity Method Investments and Joint Ventures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity Method Investments [Table Text Block] |
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Schedule of Affiliate Result of Operations [Table Text Block] |
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Schedule of Affiliate Financial Position [Table Text Block] |
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Note 8 - Acquisitions (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2015 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Combinations [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] |
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Schedule of Business Acquisition Net Consideration Applied to Acquired Assets [Table Text Block] |
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Schedule of Business Acquisitions, by Acquisition [Table Text Block] |
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Business Acquisition, Pro Forma Information [Table Text Block] |
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Note 9 - Property, Plant and Equipment, Net of Accumulated Depreciation (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment [Table Text Block] |
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Note 10 - Goodwill and Other Intangible Assets (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Goodwill [Table Text Block] |
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Schedule of Finite-Lived Intangible Assets [Table Text Block] |
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Note 11 - Other Assets and Other Liabilities (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Assets Liabilities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Other Assets and Other Liabilities [Table Text Block] |
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Note 12 - Debt (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Debt [Table Text Block] |
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Schedule of Maturities of Long-term Debt [Table Text Block] |
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Note 13 - Employee Retirement Plans (Tables) |
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Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Note 13 - Employee Retirement Plans (Tables) [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in Projected Benefit Obligations, Fair Value of Plan Assets, and Funded Status of Plan [Table Text Block] |
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Schedule of Benefit Obligations in Excess of Fair Value of Plan Assets [Table Text Block] |
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Schedule of Accumulated Benefit Obligations in Excess of Fair Value of Plan Assets [Table Text Block] |
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Schedule of Net Benefit Costs [Table Text Block] |
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Schedule of Assumptions Used [Table Text Block] |
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Schedule of Health Care Cost Trend Rates [Table Text Block] |
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Schedule of Effect of One-Percentage-Point Change in Assumed Health Care Cost Trend Rates [Table Text Block] |
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Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block] |
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Schedule of Expected Benefit Payments [Table Text Block] |
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Pension Plan [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Note 13 - Employee Retirement Plans (Tables) [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block] |
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Postretirement Benefit Plan [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Note 13 - Employee Retirement Plans (Tables) [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in Projected Benefit Obligations, Fair Value of Plan Assets, and Funded Status of Plan [Table Text Block] |
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Schedule of Net Benefit Costs [Table Text Block] |
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United States Pension Plan of US Entity [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Note 13 - Employee Retirement Plans (Tables) [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value, Assets Measured on Recurring Basis [Table Text Block] |
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Foreign Pension Plan [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Note 13 - Employee Retirement Plans (Tables) [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value, Assets Measured on Recurring Basis [Table Text Block] |
|
Note 14 - Commitments, Contingencies, and Guarantees (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Recorded Unconditional Purchase Obligations [Table Text Block] |
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Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] |
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Note 15 - Hedging Activities (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Note 15 - Hedging Activities (Tables) [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Notional Amounts of Outstanding Derivative Positions [Table Text Block] |
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Designated as Hedging Instrument [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Note 15 - Hedging Activities (Tables) [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Derivative Instruments, Effect on Other Comprehensive Income (Loss) [Table Text Block] |
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Not Designated as Hedging Instrument [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Note 15 - Hedging Activities (Tables) [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Derivative Instruments, Effect on Other Comprehensive Income (Loss) [Table Text Block] |
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Note 16 - Fair Value Measurements (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] |
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Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block] |
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Note 17 - Shareholders' Equity (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholders' Equity Note [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Stockholders Equity [Table Text Block] |
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Comprehensive Income (Loss) [Table Text Block] |
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Reclassification out of Accumulated Other Comprehensive Income [Table Text Block] |
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Note 18 - Earnings Per Common Share (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] |
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Note 19 - Share-based Compensation (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] |
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Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] |
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Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity [Table Text Block] |
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Note 20 - Reportable Segments (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2015 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Segment Reporting Information, by Segment [Table Text Block] |
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Reconciliation of Revenue from Segments to Consolidated [Table Text Block] |
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Reconciliation of Assets from Segment to Consolidated [Table Text Block] |
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Revenue from External Customers by Products and Services [Table Text Block] |
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Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas [Table Text Block] |
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Schedule II - Valuation Accounts and Reserves (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Valuation and Qualifying Accounts [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Valuation Allowance [Table Text Block] |
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Quarterly Operating Results (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Quarterly Financial Information [Table Text Block] |
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Supplemental Cash Flow Information (Details) - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended | ||
---|---|---|---|---|
Jan. 15, 2014 |
Jan. 15, 2014 |
Mar. 31, 2014 |
Dec. 31, 2014 |
|
Supplemental Cash Flow Information (Details) [Line Items] | ||||
Stock Issued During Period, Value, New Issues (in Dollars) | $ 400 | |||
Samsung Corning Precision Materials Co., Ltd. [Member] | Convertible Preferred Stock, Series A [Member] | ||||
Supplemental Cash Flow Information (Details) [Line Items] | ||||
Stock Issued During Period, Shares, Acquisitions | 1,900 | 2,300 | 1,900 | |
Samsung Corning Precision Materials Co., Ltd. [Member] | Additional Amount Issued at Closing [Member] | Convertible Preferred Stock, Series A [Member] | ||||
Supplemental Cash Flow Information (Details) [Line Items] | ||||
Stock Issued During Period, Shares, New Issues | 400 | 400 | ||
Stock Issued During Period, Value, New Issues (in Dollars) | $ 400 | $ 400 |
Note 1 - Summary of Significant Accounting Policies (Details) $ in Millions |
3 Months Ended | 12 Months Ended | |||||
---|---|---|---|---|---|---|---|
Jan. 15, 2014 |
Jan. 15, 2014 |
Dec. 31, 2013 |
Dec. 31, 2015
USD ($)
|
Dec. 31, 2014
USD ($)
|
Dec. 31, 2013
USD ($)
|
Nov. 30, 2013 |
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Note 1 - Summary of Significant Accounting Policies (Details) [Line Items] | |||||||
Equity Method Investment Ownership Percentage Minimum | 20.00% | ||||||
Equity Method Investment Ownership Percentage Maximum | 50.00% | ||||||
Minimum Voting Securities Owned | 20.00% | ||||||
Minority Interests of Shareholders Acquired, Number of Shareholders | 3 | ||||||
Research and Development Expense | $ 638 | $ 701 | $ 613 | ||||
Foreign Currency Transaction Gain (Loss), before Tax | (22) | (60) | (190) | ||||
Interest Costs Capitalized | $ 35 | $ 40 | $ 35 | ||||
Benchmark Percentage of Benefit Obligation or Market Related Value of Plan Assets | 10.00% | ||||||
Samsung Corning Precision Materials Co., Ltd. [Member] | |||||||
Note 1 - Summary of Significant Accounting Policies (Details) [Line Items] | |||||||
Equity Method Investment, Ownership Percentage | 57.50% | 57.50% | 50.00% | ||||
Sale of Stock, Percentage of Ownership after Transaction | 100.00% | 100.00% | |||||
Minimum [Member] | |||||||
Note 1 - Summary of Significant Accounting Policies (Details) [Line Items] | |||||||
Finite-Lived Intangible Asset, Useful Life | 4 years | ||||||
Minimum [Member] | Building [Member] | |||||||
Note 1 - Summary of Significant Accounting Policies (Details) [Line Items] | |||||||
Property, Plant and Equipment, Useful Life | 10 years | ||||||
Minimum [Member] | Equipment [Member] | |||||||
Note 1 - Summary of Significant Accounting Policies (Details) [Line Items] | |||||||
Property, Plant and Equipment, Useful Life | 2 years | ||||||
Maximum [Member] | |||||||
Note 1 - Summary of Significant Accounting Policies (Details) [Line Items] | |||||||
Finite-Lived Intangible Asset, Useful Life | 50 years | ||||||
Maximum [Member] | Building [Member] | |||||||
Note 1 - Summary of Significant Accounting Policies (Details) [Line Items] | |||||||
Property, Plant and Equipment, Useful Life | 40 years | ||||||
Maximum [Member] | Equipment [Member] | |||||||
Note 1 - Summary of Significant Accounting Policies (Details) [Line Items] | |||||||
Property, Plant and Equipment, Useful Life | 20 years |
Note 1 - Summary of Significant Accounting Policies (Details) - Supplemental Disclosure of Cash Flow Information - USD ($) $ in Millions |
12 Months Ended | ||||
---|---|---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
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Non-cash transactions: | |||||
Accruals for capital expenditures | $ 298 | $ 358 | $ 185 | ||
Cash paid for interest and income taxes: | |||||
Interest (1) | [1] | 178 | 171 | 182 | |
Income taxes, net of refunds received | $ 253 | $ 577 | $ 469 | ||
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Note 1 - Summary of Significant Accounting Policies (Details) - Useful Life of Equipment |
12 Months Ended |
---|---|
Dec. 31, 2015 | |
Minimum [Member] | Computer Equipment [Member] | |
Note 1 - Summary of Significant Accounting Policies (Details) - Useful Life of Equipment [Line Items] | |
Property, plant and equipment, useful life | 3 years |
Minimum [Member] | Manufacturing Equipment [Member] | |
Note 1 - Summary of Significant Accounting Policies (Details) - Useful Life of Equipment [Line Items] | |
Property, plant and equipment, useful life | 2 years |
Minimum [Member] | Furniture and Fixtures [Member] | |
Note 1 - Summary of Significant Accounting Policies (Details) - Useful Life of Equipment [Line Items] | |
Property, plant and equipment, useful life | 5 years |
Minimum [Member] | Transportation Equipment [Member] | |
Note 1 - Summary of Significant Accounting Policies (Details) - Useful Life of Equipment [Line Items] | |
Property, plant and equipment, useful life | 3 years |
Maximum [Member] | Computer Equipment [Member] | |
Note 1 - Summary of Significant Accounting Policies (Details) - Useful Life of Equipment [Line Items] | |
Property, plant and equipment, useful life | 7 years |
Maximum [Member] | Manufacturing Equipment [Member] | |
Note 1 - Summary of Significant Accounting Policies (Details) - Useful Life of Equipment [Line Items] | |
Property, plant and equipment, useful life | 15 years |
Maximum [Member] | Furniture and Fixtures [Member] | |
Note 1 - Summary of Significant Accounting Policies (Details) - Useful Life of Equipment [Line Items] | |
Property, plant and equipment, useful life | 10 years |
Maximum [Member] | Transportation Equipment [Member] | |
Note 1 - Summary of Significant Accounting Policies (Details) - Useful Life of Equipment [Line Items] | |
Property, plant and equipment, useful life | 20 years |
Note 2 - Restructuring, Impairment and Other Charges (Details) - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended | |
---|---|---|---|
Dec. 31, 2013 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Restructuring and Related Activities [Abstract] | |||
Expected Cash Expenditures for Restructuring Costs | $ 35 | $ 40 | $ 39 |
Restructuring and Related Cost, Incurred Cost | $ 67 | $ 71 |
Note 2 - Restructuring, Impairment and Other Charges (Details) - Restructuring, Impairment and Other Charges - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Restructuring: | |||
Reserve | $ 44 | $ 44 | $ 42 |
Net charges/reversals | 49 | 41 | |
Non cash adjustments | (10) | (4) | |
Cash payments | (40) | (39) | (35) |
Reserve | 44 | 44 | |
Impairment charges and disposal of long-lived assets | 22 | 26 | |
Total restructuring, impairment and other charges | 71 | 67 | |
Employee Severance [Member] | |||
Restructuring: | |||
Reserve | $ 44 | 36 | 38 |
Net charges/reversals | 48 | 34 | |
Non cash adjustments | (9) | (4) | |
Cash payments | (31) | (32) | |
Reserve | 44 | 36 | |
Other Restructuring [Member] | |||
Restructuring: | |||
Reserve | 8 | 4 | |
Net charges/reversals | 1 | 7 | |
Non cash adjustments | (1) | ||
Cash payments | $ (8) | (3) | |
Reserve | $ 8 |
Note 3 - Available-for-Sale Investments (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Investments, Debt and Equity Securities [Abstract] | |||
Proceeds from Sale of Short-term Investments | $ 1,629 | $ 1,167 | $ 2,026 |
Note 3 - Available-for-Sale Investments (Details) - Summary of Fair Value of Available-for-Sale Investments - USD ($) $ in Millions |
Dec. 31, 2015 |
Dec. 31, 2014 |
---|---|---|
US Government Agencies Debt Securities [Member] | ||
Bonds, notes and other securities: | ||
Amortized cost | $ 100 | $ 759 |
Fair value | 100 | 759 |
Total Short-Term Investments [Member] | ||
Bonds, notes and other securities: | ||
Amortized cost | 100 | 759 |
Fair value | 100 | 759 |
Asset-backed Securities [Member] | ||
Bonds, notes and other securities: | ||
Amortized cost | 37 | 42 |
Fair value | 33 | 38 |
Total Long-Term Investments [Member] | ||
Bonds, notes and other securities: | ||
Amortized cost | 37 | 42 |
Fair value | $ 33 | $ 38 |
Note 3 - Available-for-Sale Investments (Details) - Summary of Maturities of Available-for-Sale Securities $ in Millions |
Dec. 31, 2015
USD ($)
|
---|---|
Summary of Maturities of Available-for-Sale Securities [Abstract] | |
Less than one year | $ 70 |
Due in 1-5 years | 30 |
Due in 5-10 years | |
Due after 10 years | 33 |
Total | $ 133 |
Note 3 - Available-for-Sale Investments (Details) - Securities in a Continuous Unrealized Loss Position $ in Millions |
12 Months Ended | |
---|---|---|
Dec. 31, 2015
USD ($)
|
Dec. 31, 2014
USD ($)
|
|
Securities in a Continuous Unrealized Loss Position [Abstract] | ||
Number of securities in a loss position | 21 | 21 |
12 months or greater, fair value | $ 33 | $ 37 |
12 months or greater, unrealized losses | (4) | (4) |
Total, fair value | 33 | 37 |
Total, unrealized losses | $ (4) | $ (4) |
Note 4 - Significant Customers (Details) - Sales Revenue, Net [Member] - Customer Concentration Risk [Member] |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Samsung Display Co., Ltd. [Member] | |||
Note 4 - Significant Customers (Details) [Line Items] | |||
Concentration Risk, Percentage | 11.00% | 14.00% | |
AU Optronics Corporation [Member] | |||
Note 4 - Significant Customers (Details) [Line Items] | |||
Concentration Risk, Percentage | 10.00% |
Note 5 - Inventories, Net of Inventory Reserves (Details) - Inventories, Net - USD ($) $ in Millions |
Dec. 31, 2015 |
Dec. 31, 2014 |
---|---|---|
Inventories, Net [Abstract] | ||
Finished goods | $ 633 | $ 586 |
Work in process | 264 | 255 |
Raw materials and accessories | 200 | 202 |
Supplies and packing materials | 288 | 279 |
Total inventories, net of inventory reserves | $ 1,385 | $ 1,322 |
Note 6 - Income Taxes (Details) - USD ($) $ / shares in Units, $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Note 6 - Income Taxes (Details) [Line Items] | |||
Income Tax Holiday, Income Tax Benefits Per Share (in Dollars per share) | $ 0.01 | $ 0.01 | $ 0.02 |
Tax Adjustments, Settlements, and Unusual Provisions | $ (74) | ||
Adjustments to Additional Paid in Capital, Income Tax Benefit from Share-based Compensation | $ 244 | ||
U.S. Profits Required to Realize Deferred Tax Assets | 4,700 | ||
Future U.S. Profit Required Realizing Deferred Tax Assets Related to General Business Credits | $ 88 | ||
Period to Recognize U.S. Deferred Tax Assets Related to General Business Credits | 20 years | ||
Future Foreign Sourced Income Required Realizing Deferred Tax Assets | $ 1,900 | ||
Period to Recognize Deferred Tax Assets Associated with Foreign Tax Credits | 10 years | ||
Deferred Tax Assets, Valuation Allowance | $ 238 | $ 298 | |
Unrecognized Tax Benefits, Increase Resulting from Prior Period Tax Positions | 245 | 5 | |
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | 102 | 5 | |
Unrecognized Tax Benefits, Interest on Income Taxes Expense | 6 | ||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued | $ 5 | 1 | |
Percentage of United States Subsidiaries Join In Filing of Consolidated United States Federal Income Tax Returns | 80.00% | ||
Undistributed Earnings of Foreign Subsidiaries | $ 11,000 | ||
New York State Division of Taxation and Finance [Member] | |||
Note 6 - Income Taxes (Details) [Line Items] | |||
Income Tax Expense (Benefit), Continuing Operations, Adjustment of Deferred Tax (Asset) Liability | 100 | ||
Foreign Tax Authority [Member] | |||
Note 6 - Income Taxes (Details) [Line Items] | |||
Income Tax Expense (Benefit), Continuing Operations, Adjustment of Deferred Tax (Asset) Liability | 177 | ||
Foreign Tax Authority [Member] | Germany and Japan [Member] | |||
Note 6 - Income Taxes (Details) [Line Items] | |||
Income Tax Expense (Benefit), Continuing Operations, Adjustment of Deferred Tax (Asset) Liability | (100) | ||
American Taxpayer Relief Act [Member] | |||
Note 6 - Income Taxes (Details) [Line Items] | |||
Tax Adjustments, Settlements, and Unusual Provisions | $ (37) | ||
Domestic Manufacturing Deduction [Member] | |||
Note 6 - Income Taxes (Details) [Line Items] | |||
Other Tax Expense (Benefit) | (9) | ||
Out of Period Transfer Pricing Adjustments [Member] | |||
Note 6 - Income Taxes (Details) [Line Items] | |||
Other Tax Expense (Benefit) | 31 | $ 46 | |
Unrecognized Tax Benefits, Increase Resulting from Prior Period Tax Positions | $ 221 | ||
Minimum [Member] | |||
Note 6 - Income Taxes (Details) [Line Items] | |||
U.S. Statutes of Limitations Period | 3 years | ||
Foreign Statutes of Limitations Period | 3 years | ||
Maximum [Member] | |||
Note 6 - Income Taxes (Details) [Line Items] | |||
U.S. Statutes of Limitations Period | 5 years | ||
Foreign Statutes of Limitations Period | 7 years |
Note 6 - Income Taxes (Details) - Income Before Income Taxes - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Income Before Income Taxes [Abstract] | |||
U.S. companies | $ 426 | $ 2,384 | $ 1,274 |
Non-U.S. companies | 1,060 | 1,184 | 1,199 |
Income before income taxes | $ 1,486 | $ 3,568 | $ 2,473 |
Note 6 - Income Taxes (Details) - Current and Deferred Amounts of Provision (Benefit) for Income Taxes - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 |
Sep. 30, 2015 |
Jun. 30, 2015 |
Mar. 31, 2015 |
Dec. 31, 2014 |
Sep. 30, 2014 |
Jun. 30, 2014 |
Mar. 31, 2014 |
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Current: | |||||||||||
Federal | $ 40 | $ 38 | $ 3 | ||||||||
State and municipal | 20 | 32 | 12 | ||||||||
Foreign | 33 | 414 | 308 | ||||||||
Deferred: | |||||||||||
Federal | 144 | 411 | 112 | ||||||||
State and municipal | 30 | (9) | 50 | ||||||||
Foreign | (120) | 210 | 27 | ||||||||
Provision for income taxes | $ (55) | $ 6 | $ 110 | $ 86 | $ 349 | $ 395 | $ 172 | $ 180 | $ 147 | $ 1,096 | $ 512 |
Note 6 - Income Taxes (Details) - Reconciliation of the U.S. Statutory Income Tax Rate To Effective Tax Rate |
12 Months Ended | ||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|||||||||||||||||||||||||||
Reconciliation of the U.S. Statutory Income Tax Rate To Effective Tax Rate [Abstract] | |||||||||||||||||||||||||||||
Statutory U.S. income tax rate | 35.00% | 35.00% | 35.00% | ||||||||||||||||||||||||||
State income tax (benefit), net of federal effect | 0.10% | 4.90% | [1] | 0.60% | |||||||||||||||||||||||||
Tax holidays (1) | [2] | (0.50%) | (0.40%) | (1.20%) | |||||||||||||||||||||||||
Investment and other tax credits (2) | [3] | (1.70%) | (0.30%) | (2.00%) | |||||||||||||||||||||||||
Rate difference on foreign earnings | (19.80%) | [4] | (8.30%) | (8.10%) | [5] | ||||||||||||||||||||||||
Uncertain tax positions | 4.30% | [6] | (0.10%) | 0.20% | |||||||||||||||||||||||||
Equity earnings impact (3) | [7] | (5.40%) | (2.00%) | (6.60%) | |||||||||||||||||||||||||
Valuation allowances | (4.20%) | [8] | 0.80% | [9] | 3.10% | [10] | |||||||||||||||||||||||
Other items, net | 2.10% | 1.10% | [11] | (0.30%) | |||||||||||||||||||||||||
Effective income tax (benefit) rate | 9.90% | 30.70% | 20.70% | ||||||||||||||||||||||||||
|
Note 6 - Income Taxes (Details) - Tax Effects of Temporary Differences and Carryforwards of Deferred Tax Assets and Liabilities - USD ($) $ in Millions |
Dec. 31, 2015 |
Dec. 31, 2014 |
---|---|---|
Tax Effects of Temporary Differences and Carryforwards of Deferred Tax Assets and Liabilities [Abstract] | ||
Loss and tax credit carryforwards | $ 1,151 | $ 1,235 |
Other assets | 69 | 69 |
Asset impairments and restructuring reserves | 153 | 170 |
Postretirement medical and life benefits | 276 | 312 |
Other accrued liabilities | 265 | 246 |
Other employee benefits | 505 | 473 |
Gross deferred tax assets | 2,419 | 2,505 |
Valuation allowance | (238) | (298) |
Total deferred tax assets | 2,181 | 2,207 |
Intangible and other assets | (181) | (152) |
Fixed assets | (284) | (299) |
Total deferred tax liabilities | (465) | (451) |
Net deferred tax assets | $ 1,716 | $ 1,756 |
Note 6 - Income Taxes (Details) - Net Deferred Tax Assets - USD ($) $ in Millions |
Dec. 31, 2015 |
Dec. 31, 2014 |
---|---|---|
Net Deferred Tax Assets [Abstract] | ||
Current deferred tax assets | $ 248 | |
Non-current deferred tax assets | $ 2,056 | 1,889 |
Current deferred tax liabilities | (5) | |
Non-current deferred tax liabilities | (340) | (376) |
Net deferred tax assets | $ 1,716 | $ 1,756 |
Note 6 - Income Taxes (Details) - Deferred Tax Assets for Loss and Tax Credit Carryforwards - USD ($) $ in Millions |
Dec. 31, 2015 |
Dec. 31, 2014 |
---|---|---|
Note 6 - Income Taxes (Details) - Deferred Tax Assets for Loss and Tax Credit Carryforwards [Line Items] | ||
Net operating losses | $ 406 | |
Tax credits | 745 | |
Totals as of December 31, 2015 | 1,151 | $ 1,235 |
2016-2020 [Member] | ||
Note 6 - Income Taxes (Details) - Deferred Tax Assets for Loss and Tax Credit Carryforwards [Line Items] | ||
Net operating losses | 127 | |
Tax credits | 414 | |
Totals as of December 31, 2015 | 541 | |
2021-2025 [Member] | ||
Note 6 - Income Taxes (Details) - Deferred Tax Assets for Loss and Tax Credit Carryforwards [Line Items] | ||
Net operating losses | 63 | |
Tax credits | 58 | |
Totals as of December 31, 2015 | 121 | |
2026-2035 [Member] | ||
Note 6 - Income Taxes (Details) - Deferred Tax Assets for Loss and Tax Credit Carryforwards [Line Items] | ||
Net operating losses | 3 | |
Tax credits | 237 | |
Totals as of December 31, 2015 | 240 | |
Indefinite [Member] | ||
Note 6 - Income Taxes (Details) - Deferred Tax Assets for Loss and Tax Credit Carryforwards [Line Items] | ||
Net operating losses | 213 | |
Tax credits | 36 | |
Totals as of December 31, 2015 | $ 249 |
Note 6 - Income Taxes (Details) - Reconciliation of Unrecognized Tax Benefits - USD ($) $ in Millions |
12 Months Ended | |
---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Reconciliation of Unrecognized Tax Benefits [Abstract] | ||
Balance at January 1 | $ 10 | $ 15 |
Additions based on tax positions related to the current year | ||
Additions for tax positions of prior years | 245 | 5 |
Reductions for tax positions of prior years | (1) | |
Settlements and lapse of statute of limitations | (1) | (10) |
Balance at December 31 | $ 253 | $ 10 |
Note 7 - Investments (Details) |
3 Months Ended | 7 Months Ended | 12 Months Ended | 139 Months Ended | |||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 11, 2015
USD ($)
|
Dec. 12, 2014
USD ($)
|
Jan. 15, 2014 |
Jan. 15, 2014 |
Dec. 31, 2015
USD ($)
|
Sep. 30, 2015
USD ($)
|
Jun. 30, 2015
USD ($)
|
Mar. 31, 2015
USD ($)
|
Dec. 31, 2014
USD ($)
|
Sep. 30, 2014
USD ($)
|
Jun. 30, 2014
USD ($)
|
Mar. 31, 2014
USD ($)
|
Dec. 31, 2013
USD ($)
|
Jun. 30, 2016 |
Dec. 31, 2015
USD ($)
|
Dec. 31, 2014
USD ($)
|
Dec. 31, 2013
USD ($)
|
Dec. 31, 2015
USD ($)
|
Nov. 30, 2013 |
Nov. 12, 2013
USD ($)
|
Apr. 16, 2000
USD ($)
|
|
Note 7 - Investments (Details) [Line Items] | |||||||||||||||||||||
Retained Earnings, Undistributed Earnings from Equity Method Investees | $ 2,000,000,000 | $ 2,000,000,000 | $ 2,000,000,000 | ||||||||||||||||||
Minority Interests of Shareholders Acquired, Number of Shareholders | 3 | ||||||||||||||||||||
Payments to Noncontrolling Interests | $ 47,000,000 | ||||||||||||||||||||
Research and Development Expense | 638,000,000 | $ 701,000,000 | 613,000,000 | ||||||||||||||||||
Income (Loss) from Equity Method Investments | 104,000,000 | $ 39,000,000 | $ 62,000,000 | $ 94,000,000 | $ 23,000,000 | $ 95,000,000 | $ 62,000,000 | $ 86,000,000 | 299,000,000 | 266,000,000 | 547,000,000 | ||||||||||
Equity Method Investments | 1,905,000,000 | 1,777,000,000 | 1,905,000,000 | 1,777,000,000 | 1,905,000,000 | ||||||||||||||||
Asbestos Settlement (Credit) Charge | (15,000,000) | (9,000,000) | $ 19,000,000 | ||||||||||||||||||
Loss Contingency, Accrual, Noncurrent | 440,000,000 | 681,000,000 | 440,000,000 | 681,000,000 | 440,000,000 | ||||||||||||||||
Loss Contingency, Accrual, Current | 238,000,000 | 238,000,000 | 238,000,000 | ||||||||||||||||||
Implant Liability [Member] | |||||||||||||||||||||
Note 7 - Investments (Details) [Line Items] | |||||||||||||||||||||
Loss Contingency Accrual, Period Increase (Decrease) | $ (393,000,000) | ||||||||||||||||||||
Samsung Corning Precision Materials Co., Ltd. [Member] | |||||||||||||||||||||
Note 7 - Investments (Details) [Line Items] | |||||||||||||||||||||
Equity Method Investment, Ownership Percentage | 57.50% | 57.50% | 50.00% | ||||||||||||||||||
Sale of Stock, Percentage of Ownership after Transaction | 100.00% | 100.00% | |||||||||||||||||||
Dow Corning Corporation [Member] | |||||||||||||||||||||
Note 7 - Investments (Details) [Line Items] | |||||||||||||||||||||
Equity Method Investment, Ownership Percentage | 50.00% | ||||||||||||||||||||
Equity Method Investments | $ 1,483,000,000 | 1,325,000,000 | $ 1,483,000,000 | 1,325,000,000 | $ 1,483,000,000 | ||||||||||||||||
Newly Formed Entity [Member] | |||||||||||||||||||||
Note 7 - Investments (Details) [Line Items] | |||||||||||||||||||||
Subsidiary or Equity Method Investee, Cumulative Percentage Ownership after All Transactions | 100.00% | ||||||||||||||||||||
Pittsburgh Corning Corporation (PCC) [Member] | |||||||||||||||||||||
Note 7 - Investments (Details) [Line Items] | |||||||||||||||||||||
Equity Method Investment, Ownership Percentage | 50.00% | 50.00% | 50.00% | ||||||||||||||||||
Equity Method Investments | $ 0 | ||||||||||||||||||||
Pittsburgh Corning Europe (PCE) [Member] | |||||||||||||||||||||
Note 7 - Investments (Details) [Line Items] | |||||||||||||||||||||
Equity Method Investments | $ 154,000,000 | 162,000,000 | $ 154,000,000 | 162,000,000 | $ 154,000,000 | ||||||||||||||||
Equity Method Investments, Fair Value Disclosure | 238,000,000 | 241,000,000 | 238,000,000 | 241,000,000 | 238,000,000 | ||||||||||||||||
Three Minority Shareholders [Member] | Samsung Corning Precision Materials Co., Ltd. [Member] | |||||||||||||||||||||
Note 7 - Investments (Details) [Line Items] | |||||||||||||||||||||
Equity Method Investment, Ownership Percentage | 7.00% | ||||||||||||||||||||
Payments to Noncontrolling Interests | $ 506,000,000 | ||||||||||||||||||||
Samsung Display Co., Ltd. [Member] | Samsung Corning Precision Materials Co., Ltd. [Member] | |||||||||||||||||||||
Note 7 - Investments (Details) [Line Items] | |||||||||||||||||||||
Equity Method Investment, Ownership Percentage | 42.50% | 42.50% | 42.50% | ||||||||||||||||||
Dow Corning Corporation [Member] | |||||||||||||||||||||
Note 7 - Investments (Details) [Line Items] | |||||||||||||||||||||
Research and Development Expense | 233,000,000 | 273,000,000 | $ 248,000,000 | ||||||||||||||||||
Payments for Legal Settlements | 1,800,000,000 | ||||||||||||||||||||
Income (Loss) from Equity Method Investments | 281,000,000 | 252,000,000 | $ 196,000,000 | ||||||||||||||||||
Dow Corning Corporation [Member] | Implant Liability [Member] | |||||||||||||||||||||
Note 7 - Investments (Details) [Line Items] | |||||||||||||||||||||
Loss Contingency Accrual, Period Increase (Decrease) | $ (1,300,000,000) | ||||||||||||||||||||
Dow Corning Corporation [Member] | Commercial Creditors [Member] | |||||||||||||||||||||
Note 7 - Investments (Details) [Line Items] | |||||||||||||||||||||
Loss Contingency, Range of Possible Loss, Minimum | 104,000,000 | 104,000,000 | 104,000,000 | ||||||||||||||||||
Loss Contingency, Range of Possible Loss, Maximum | $ 341,000,000 | 341,000,000 | 341,000,000 | ||||||||||||||||||
Income (Loss) from Equity Method Investments | $ 104,000,000 | ||||||||||||||||||||
Dow Corning Corporation [Member] | Claimants [Member] | |||||||||||||||||||||
Note 7 - Investments (Details) [Line Items] | |||||||||||||||||||||
Payments for Legal Settlements | $ 1,300,000,000 | ||||||||||||||||||||
Newly Formed Entity [Member] | Hemlock Semiconductor Group [Member] | |||||||||||||||||||||
Note 7 - Investments (Details) [Line Items] | |||||||||||||||||||||
Equity Method Investment, Ownership Percentage | 40.00% | ||||||||||||||||||||
Equity Method Investments | $ 4,800,000,000 | ||||||||||||||||||||
Dow Chemical Company [Member] | Dow Corning Corporation [Member] | Scenario, Forecast [Member] | |||||||||||||||||||||
Note 7 - Investments (Details) [Line Items] | |||||||||||||||||||||
Subsidiary or Equity Method Investee, Cumulative Percentage Ownership after All Transactions | 100.00% | ||||||||||||||||||||
PPG Industries, Inc. [Member] | Pittsburgh Corning Corporation (PCC) [Member] | |||||||||||||||||||||
Note 7 - Investments (Details) [Line Items] | |||||||||||||||||||||
Equity Method Investment, Ownership Percentage | 50.00% | 50.00% | 50.00% | ||||||||||||||||||
Breast Implant Litigation [Member] | Dow Corning Corporation [Member] | |||||||||||||||||||||
Note 7 - Investments (Details) [Line Items] | |||||||||||||||||||||
Estimated Litigation Liability | $ 291,000,000 | $ 291,000,000 | $ 291,000,000 | ||||||||||||||||||
Asbestos Litigation [Member] | |||||||||||||||||||||
Note 7 - Investments (Details) [Line Items] | |||||||||||||||||||||
Loss Contingency Accrual | 678,000,000 | 681,000,000 | 678,000,000 | 681,000,000 | 678,000,000 | ||||||||||||||||
Asbestos Settlement (Credit) Charge | (15,000,000) | 9,000,000 | |||||||||||||||||||
Loss Contingency, Accrual, Noncurrent | 440,000,000 | 440,000,000 | 440,000,000 | ||||||||||||||||||
Asbestos Litigation [Member] | Amended Pittsburgh Corning Corporation Plan [Member] | |||||||||||||||||||||
Note 7 - Investments (Details) [Line Items] | |||||||||||||||||||||
Loss Contingency Required Payments Per Reorganization Plan | $ 290,000,000 | ||||||||||||||||||||
Asbestos Litigation [Member] | First Payment [Member] | Amended Pittsburgh Corning Corporation Plan [Member] | |||||||||||||||||||||
Note 7 - Investments (Details) [Line Items] | |||||||||||||||||||||
Loss Contingency Required Payments Per Reorganization Plan | 70,000,000 | ||||||||||||||||||||
Asbestos Litigation [Member] | First Subsequent Anniversary [Member] | Amended Pittsburgh Corning Corporation Plan [Member] | |||||||||||||||||||||
Note 7 - Investments (Details) [Line Items] | |||||||||||||||||||||
Loss Contingency Required Payments Per Reorganization Plan | 35,000,000 | ||||||||||||||||||||
Asbestos Litigation [Member] | Second Subsequent Anniversary [Member] | Amended Pittsburgh Corning Corporation Plan [Member] | |||||||||||||||||||||
Note 7 - Investments (Details) [Line Items] | |||||||||||||||||||||
Loss Contingency Required Payments Per Reorganization Plan | 50,000,000 | ||||||||||||||||||||
Asbestos Litigation [Member] | Third Subsequent Anniversary [Member] | Amended Pittsburgh Corning Corporation Plan [Member] | |||||||||||||||||||||
Note 7 - Investments (Details) [Line Items] | |||||||||||||||||||||
Loss Contingency Required Payments Per Reorganization Plan | 35,000,000 | ||||||||||||||||||||
Asbestos Litigation [Member] | Fourth Subsequent Anniversary [Member] | Amended Pittsburgh Corning Corporation Plan [Member] | |||||||||||||||||||||
Note 7 - Investments (Details) [Line Items] | |||||||||||||||||||||
Loss Contingency Required Payments Per Reorganization Plan | 50,000,000 | ||||||||||||||||||||
Asbestos Litigation [Member] | Fifth Subsequent Anniversary [Member] | Amended Pittsburgh Corning Corporation Plan [Member] | |||||||||||||||||||||
Note 7 - Investments (Details) [Line Items] | |||||||||||||||||||||
Loss Contingency Required Payments Per Reorganization Plan | $ 50,000,000 | ||||||||||||||||||||
Asbestos Litigation [Member] | Amended PCC Plan and Non-PCC Asbestos Claims [Member] | |||||||||||||||||||||
Note 7 - Investments (Details) [Line Items] | |||||||||||||||||||||
Loss Contingency Accrual | 678,000,000 | $ 681,000,000 | 678,000,000 | $ 681,000,000 | 678,000,000 | ||||||||||||||||
Asbestos Litigation [Member] | Fixed Series of Payment [Member] | |||||||||||||||||||||
Note 7 - Investments (Details) [Line Items] | |||||||||||||||||||||
Loss Contingency, Accrual, Noncurrent | 290,000,000 | 290,000,000 | 290,000,000 | ||||||||||||||||||
Asbestos Litigation [Member] | Non-PCC Asbestos Litigation [Member] | |||||||||||||||||||||
Note 7 - Investments (Details) [Line Items] | |||||||||||||||||||||
Loss Contingency, Accrual, Noncurrent | 150,000,000 | 150,000,000 | 150,000,000 | ||||||||||||||||||
Asbestos Litigation [Member] | Pittsburgh Corning Europe (PCE) [Member] | |||||||||||||||||||||
Note 7 - Investments (Details) [Line Items] | |||||||||||||||||||||
Loss Contingency, Accrual, Current | $ 238,000,000 | 238,000,000 | $ 238,000,000 | ||||||||||||||||||
Asbestos Litigation [Member] | Pittsburgh Corning Corporation (PCC) [Member] | |||||||||||||||||||||
Note 7 - Investments (Details) [Line Items] | |||||||||||||||||||||
Loss Contingency, Pending Claims, Number | 11,800 | ||||||||||||||||||||
Non-PCC Asbestos Litigation [Member] | |||||||||||||||||||||
Note 7 - Investments (Details) [Line Items] | |||||||||||||||||||||
Loss Contingency Accrual, Period Increase (Decrease) | $ 150,000,000 | ||||||||||||||||||||
Number of Other Cases Currently Involved Alleging Injuries from Asbestos and Similar Amounts of Monetary Damages Per Case | 9,700 | ||||||||||||||||||||
Number of Claims in Other Cases Currently Involved Alleging Injuries from Asbestos and Similar Amounts of Monetary Damages Per Case | 37,300 | ||||||||||||||||||||
Insurance Recoveries | $ 19,000,000 | ||||||||||||||||||||
Undiscounted Projection of Claims and Related Legal Fees, Period | 20 years |
Note 7 - Investments (Details) - Investments - USD ($) $ in Millions |
12 Months Ended | |||||
---|---|---|---|---|---|---|
Dec. 31, 2015 |
Dec. 11, 2015 |
Dec. 31, 2014 |
||||
Affiliated companies accounted for by the equity method | ||||||
Ownership interest, minimum | 20.00% | |||||
Ownership interest, maximum | 50.00% | |||||
Investment, amount | $ 1,905 | $ 1,777 | ||||
Other investments | 70 | 24 | ||||
Total | 1,975 | 1,801 | ||||
Dow Corning Corporation [Member] | ||||||
Affiliated companies accounted for by the equity method | ||||||
Ownership interest | 50.00% | |||||
Investment, amount | 1,483 | 1,325 | ||||
All Other [Member] | ||||||
Affiliated companies accounted for by the equity method | ||||||
Investment, amount | $ 422 | $ 452 | ||||
Parent Company [Member] | Dow Corning Corporation [Member] | ||||||
Affiliated companies accounted for by the equity method | ||||||
Ownership interest | [1] | 50.00% | ||||
Parent Company [Member] | All Other [Member] | ||||||
Affiliated companies accounted for by the equity method | ||||||
Ownership interest, minimum | [1] | 20.00% | ||||
Ownership interest, maximum | [1] | 50.00% | ||||
|
Note 7 - Investments (Details) - Results of Operations - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended | ||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 |
Sep. 30, 2015 |
Jun. 30, 2015 |
Mar. 31, 2015 |
Dec. 31, 2014 |
Sep. 30, 2014 |
Jun. 30, 2014 |
Mar. 31, 2014 |
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
||||||||
Note 7 - Investments (Details) - Results of Operations [Line Items] | ||||||||||||||||||
Equity in earnings of affiliated companies | $ 104 | $ 39 | $ 62 | $ 94 | $ 23 | $ 95 | $ 62 | $ 86 | $ 299 | $ 266 | $ 547 | |||||||
Dividends received | 143 | 1,704 | 630 | |||||||||||||||
Affiliated Companies [Member] | ||||||||||||||||||
Note 7 - Investments (Details) - Results of Operations [Line Items] | ||||||||||||||||||
Net sales | [1],[2] | 6,461 | 7,124 | 8,526 | ||||||||||||||
Gross profit | [1],[2] | 1,606 | 1,701 | 2,655 | ||||||||||||||
Net income | [1],[2] | 586 | 647 | 1,135 | ||||||||||||||
Equity in earnings of affiliated companies | [1],[2] | 299 | 266 | 547 | ||||||||||||||
Corning sales to affiliated companies | 30 | 13 | 13 | |||||||||||||||
Corning purchases | 19 | 25 | 189 | |||||||||||||||
Corning transfers of assets, at cost, to affiliated companies (3) | [3] | 37 | ||||||||||||||||
Dividends received | 143 | 130 | 629 | |||||||||||||||
Royalty income from affiliated companies | 2 | 57 | ||||||||||||||||
Corning services to affiliates | 2 | |||||||||||||||||
Dow Corning Corporation [Member] | ||||||||||||||||||
Note 7 - Investments (Details) - Results of Operations [Line Items] | ||||||||||||||||||
Net sales | 5,649 | 6,221 | 5,711 | |||||||||||||||
Gross profit | [1] | 1,472 | 1,543 | 1,280 | ||||||||||||||
Net income | 563 | 513 | 376 | |||||||||||||||
Equity in earnings of affiliated companies | 281 | 252 | 196 | |||||||||||||||
Corning purchases | 15 | 15 | 22 | |||||||||||||||
Dividends received | $ 143 | $ 125 | $ 100 | |||||||||||||||
|
Note 7 - Investments (Details) - Financial Position - USD ($) $ in Millions |
Dec. 31, 2015 |
Dec. 31, 2014 |
---|---|---|
Affiliated Companies [Member] | ||
Note 7 - Investments (Details) - Financial Position [Line Items] | ||
Current assets | $ 5,228 | $ 5,432 |
Noncurrent assets | 6,453 | 6,864 |
Short-term borrowings, including current portion of long-term debt | 6 | 7 |
Other current liabilities | 1,461 | 1,630 |
Long-term debt | 800 | 950 |
Other long-term liabilities | 4,557 | 5,143 |
Non-controlling interest | 631 | 634 |
Balances due from affiliated companies | 11 | 19 |
Balances due to affiliated companies | 1 | 2 |
Dow Corning Corporation [Member] | ||
Note 7 - Investments (Details) - Financial Position [Line Items] | ||
Current assets | 4,511 | 4,712 |
Noncurrent assets | 6,064 | 6,433 |
Short-term borrowings, including current portion of long-term debt | 6 | 7 |
Other current liabilities | 1,305 | 1,441 |
Long-term debt | 785 | 945 |
Other long-term liabilities | 4,539 | 5,125 |
Non-controlling interest | $ 631 | $ 634 |
Note 8 - Acquisitions (Details) |
3 Months Ended | 12 Months Ended | |||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 29, 2015
USD ($)
|
Jan. 15, 2014
USD ($)
$ / shares
shares
|
Jan. 15, 2014
USD ($)
$ / shares
shares
|
Dec. 31, 2015
USD ($)
$ / shares
shares
|
Mar. 31, 2015
USD ($)
|
Mar. 31, 2014
shares
|
Dec. 31, 2015
USD ($)
$ / shares
shares
|
Dec. 31, 2014
USD ($)
$ / shares
shares
|
Dec. 31, 2013
USD ($)
|
Nov. 30, 2013 |
||||||||
Note 8 - Acquisitions (Details) [Line Items] | |||||||||||||||||
Number of Businesses Acquired | 1 | 4 | 5 | ||||||||||||||
Goodwill | $ 1,380,000,000 | $ 1,380,000,000 | $ 1,150,000,000 | $ 1,002,000,000 | |||||||||||||
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Liability | $ 3,000,000 | ||||||||||||||||
Preferred Stock, Par or Stated Value Per Share (in Dollars per share) | $ / shares | $ 100 | $ 100 | $ 100 | ||||||||||||||
Preferred Stock, Shares Issued (in Shares) | shares | 2,300 | 2,300 | 2,300 | ||||||||||||||
Stock Issued During Period, Value, Acquisitions | $ 1,915,000,000 | ||||||||||||||||
Proceeds from Equity Method Investment, Dividends or Distributions | $ 143,000,000 | 1,704,000,000 | $ 630,000,000 | ||||||||||||||
Convertible Preferred Stock, Series A [Member] | |||||||||||||||||
Note 8 - Acquisitions (Details) [Line Items] | |||||||||||||||||
Preferred Stock, Par or Stated Value Per Share (in Dollars per share) | $ / shares | $ 100 | $ 100 | |||||||||||||||
Purchase Accounting Completed [Member] | |||||||||||||||||
Note 8 - Acquisitions (Details) [Line Items] | |||||||||||||||||
Number of Businesses Acquired | 4 | ||||||||||||||||
Purchase Accounting Not Completed [Member] | |||||||||||||||||
Note 8 - Acquisitions (Details) [Line Items] | |||||||||||||||||
Number of Businesses Acquired | 1 | ||||||||||||||||
Samsung Corning Precision Materials Co., Ltd. [Member] | |||||||||||||||||
Note 8 - Acquisitions (Details) [Line Items] | |||||||||||||||||
Equity Method Investment, Ownership Percentage | 57.50% | 50.00% | |||||||||||||||
Selling, General and Administrative Expenses [Member] | |||||||||||||||||
Note 8 - Acquisitions (Details) [Line Items] | |||||||||||||||||
Business Combination, Acquisition Related Costs | $ 11,000,000 | ||||||||||||||||
Five Acquisitions [Member] | |||||||||||||||||
Note 8 - Acquisitions (Details) [Line Items] | |||||||||||||||||
Goodwill | [1] | $ 300,000,000 | 300,000,000 | ||||||||||||||
Business Combination, Consideration Transferred | 725,000,000 | ||||||||||||||||
IBwave Solutions and Fiberoptics [Member] | |||||||||||||||||
Note 8 - Acquisitions (Details) [Line Items] | |||||||||||||||||
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High | 28,000,000 | 28,000,000 | |||||||||||||||
Business Combination, Contingent Consideration, Liability | 10,000,000 | $ 13,000,000 | 10,000,000 | ||||||||||||||
Samsung Corning Precision Materials Co., Ltd. [Member] | |||||||||||||||||
Note 8 - Acquisitions (Details) [Line Items] | |||||||||||||||||
Business Combination, Acquisition Related Costs | $ 93,000,000 | ||||||||||||||||
Business Combination, Contingent Consideration, Asset | $ 458,000,000 | $ 196,000,000 | $ 196,000,000 | ||||||||||||||
Business Combination, Contingent Consideration, Assets Assignment Agreement Threshold | (300,000,000) | ||||||||||||||||
Equity Method Investment, Ownership Percentage | 57.50% | ||||||||||||||||
Business Combination, Consideration Transferred, Equity Interests Issued and Issuable | 1,911,000,000 | ||||||||||||||||
Business Combination, Net Fair Value of Consideration Including Subsequent Acquisition | 4,038,000,000 | $ 4,038,000,000 | |||||||||||||||
Fair Value of Reacquired Right | 0 | $ 0 | |||||||||||||||
Contractual Royalty Rate | 3.00% | ||||||||||||||||
Current Market Rate of Royalty Contract | 12.00% | ||||||||||||||||
Settlement of Preexisting Customer Relationship Including Subsequent Acquisition | $ 320,000,000 | ||||||||||||||||
Percentage of Loss on Effective Settlement of Contract | 100.00% | ||||||||||||||||
Settlement of Preexisting Customer Relationship Before Subsequent Acquisition | $ 184,000,000 | ||||||||||||||||
Business Combination, Net Fair Value of Consideration Before Subsequent Acquisition | 2,323,000,000 | 2,323,000,000 | [2] | ||||||||||||||
Business Combination, Step Acquisition, Equity Interest in Acquiree, Fair Value | 2,139,000,000 | ||||||||||||||||
Settlement of Pre-Existing Customer Relationship | 136,000,000 | ||||||||||||||||
Business Combination, Consideration Transferred | 1,579,000,000 | ||||||||||||||||
Proceeds from Equity Method Investment, Dividends or Distributions | 1,600,000,000 | 1,574,000,000 | [3] | ||||||||||||||
Cash Dividends Paid by Consolidated Subsidiaries | 2,800,000,000 | ||||||||||||||||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Consideration Transferred | 60,000,000 | ||||||||||||||||
Business Combination, Increase in Net Sales from Consolidation of the Acquiree | 1,343,000,000 | 1,761,000,000 | |||||||||||||||
Samsung Corning Precision Materials Co., Ltd. [Member] | Revenues Generated by Samsung Corning Precision Materials [Member] | |||||||||||||||||
Note 8 - Acquisitions (Details) [Line Items] | |||||||||||||||||
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High | 665,000,000 | 665,000,000 | |||||||||||||||
Samsung Corning Precision Materials Co., Ltd. [Member] | Volume of Certain Sales [Member] | |||||||||||||||||
Note 8 - Acquisitions (Details) [Line Items] | |||||||||||||||||
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High | $ 100,000,000 | $ 100,000,000 | |||||||||||||||
Samsung Corning Precision Materials Co., Ltd. [Member] | Samsung Display's Obligation to Pay or Right to Received [Member] | |||||||||||||||||
Note 8 - Acquisitions (Details) [Line Items] | |||||||||||||||||
Business Combination, Contingent Consideration, Asset | 246,000,000 | ||||||||||||||||
Samsung Corning Precision Materials Co., Ltd. [Member] | Long Term Supply Agreements [Member] | |||||||||||||||||
Note 8 - Acquisitions (Details) [Line Items] | |||||||||||||||||
Business Combination, Contingent Consideration, Asset | $ 212,000,000 | ||||||||||||||||
Samsung Corning Precision Materials Co., Ltd. [Member] | Convertible Preferred Stock, Series A [Member] | |||||||||||||||||
Note 8 - Acquisitions (Details) [Line Items] | |||||||||||||||||
Preferred Stock, Par or Stated Value Per Share (in Dollars per share) | $ / shares | $ 100 | $ 100 | |||||||||||||||
Preferred Stock, Shares Issued (in Shares) | shares | 2,300 | 2,300 | |||||||||||||||
Share Price (in Dollars per share) | $ / shares | $ 1,000,000 | $ 1,000,000 | |||||||||||||||
Stock Issued During Period, Shares, Acquisitions (in Shares) | shares | 2,300 | 1,900 | 1,900 | ||||||||||||||
Stock Issued During Period, Value, Acquisitions | $ 2,300,000,000 | $ 1,900,000,000 | |||||||||||||||
Business Combination, Consideration Transferred, Equity Interests Issued and Issuable | $ 1,900,000,000 | ||||||||||||||||
Samsung Corning Precision Materials Co., Ltd. [Member] | Additional Amount Issued at Closing [Member] | Convertible Preferred Stock, Series A [Member] | |||||||||||||||||
Note 8 - Acquisitions (Details) [Line Items] | |||||||||||||||||
Stock Issued During Period, Shares, New Issues (in Shares) | shares | 400 | 400 | |||||||||||||||
Optical Communications [Member] | |||||||||||||||||
Note 8 - Acquisitions (Details) [Line Items] | |||||||||||||||||
Goodwill | 439,000,000 | 439,000,000 | $ 238,000,000 | $ 240,000,000 | |||||||||||||
Optical Communications [Member] | Five Acquisitions [Member] | |||||||||||||||||
Note 8 - Acquisitions (Details) [Line Items] | |||||||||||||||||
Goodwill | 213,000,000 | 213,000,000 | |||||||||||||||
Other Segments [Member] | |||||||||||||||||
Note 8 - Acquisitions (Details) [Line Items] | |||||||||||||||||
Goodwill | 101,000,000 | 101,000,000 | |||||||||||||||
Other Segments [Member] | Five Acquisitions [Member] | |||||||||||||||||
Note 8 - Acquisitions (Details) [Line Items] | |||||||||||||||||
Goodwill | $ 87,000,000 | $ 87,000,000 | |||||||||||||||
Samsung Display Co., Ltd. [Member] | Samsung Corning Precision Materials Co., Ltd. [Member] | |||||||||||||||||
Note 8 - Acquisitions (Details) [Line Items] | |||||||||||||||||
Equity Method Investment, Ownership Percentage | 42.50% | 42.50% | 42.50% | ||||||||||||||
Patents, Trademarks, Trade Names, Customer Lists and Other [Member] | |||||||||||||||||
Note 8 - Acquisitions (Details) [Line Items] | |||||||||||||||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 10 years | ||||||||||||||||
|
Note 8 - Acquisitions (Details) - Recognized Amounts of Identified Assets Acquired and Liabilities Assumed - USD ($) $ in Millions |
12 Months Ended | ||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jan. 15, 2014 |
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
||||||||||
Note 8 - Acquisitions (Details) - Recognized Amounts of Identified Assets Acquired and Liabilities Assumed [Line Items] | |||||||||||||
Goodwill | $ 1,380 | $ 1,150 | $ 1,002 | ||||||||||
Display Technologies [Member] | |||||||||||||
Note 8 - Acquisitions (Details) - Recognized Amounts of Identified Assets Acquired and Liabilities Assumed [Line Items] | |||||||||||||
Goodwill | 128 | $ 134 | $ 9 | ||||||||||
Five Acquisitions [Member] | |||||||||||||
Note 8 - Acquisitions (Details) - Recognized Amounts of Identified Assets Acquired and Liabilities Assumed [Line Items] | |||||||||||||
Cash and cash equivalents | 2 | ||||||||||||
Trade receivables | 63 | ||||||||||||
Inventory | 47 | ||||||||||||
Property, plant and equipment | 117 | ||||||||||||
Other intangible assets | 286 | ||||||||||||
Other current and non-current assets | 27 | ||||||||||||
Other current and non-current liabilities | (117) | ||||||||||||
Total identified net assets | 425 | ||||||||||||
Purchase consideration | (725) | ||||||||||||
Goodwill | [1] | $ 300 | |||||||||||
Samsung Corning Precision Materials Co., Ltd. [Member] | |||||||||||||
Note 8 - Acquisitions (Details) - Recognized Amounts of Identified Assets Acquired and Liabilities Assumed [Line Items] | |||||||||||||
Cash and cash equivalents | [2] | $ 133 | |||||||||||
Trade receivables | [3] | 357 | |||||||||||
Inventory | [3] | 105 | |||||||||||
Property, plant and equipment | [3] | 3,595 | |||||||||||
Other current and non-current assets | [3] | 71 | |||||||||||
Debt – current | (32) | ||||||||||||
Accounts payable and accrued expenses (3) | [3] | (357) | |||||||||||
Other current and non-current liabilities | [3] | (294) | |||||||||||
Total identified net assets | [3] | 3,578 | |||||||||||
Non-controlling interests | 15 | ||||||||||||
Fair value of Samsung Corning Precision Materials on acquisition date | (3,718) | ||||||||||||
Purchase consideration | (1,579) | ||||||||||||
Samsung Corning Precision Materials Co., Ltd. [Member] | Display Technologies [Member] | |||||||||||||
Note 8 - Acquisitions (Details) - Recognized Amounts of Identified Assets Acquired and Liabilities Assumed [Line Items] | |||||||||||||
Goodwill | [3],[4] | $ 125 | |||||||||||
|
Note 8 - Acquisitions (Details) - Fair Value of Samsung Corning Precision Materials at Acquisition Date - Samsung Corning Precision Materials Co., Ltd. [Member] - USD ($) $ in Millions |
12 Months Ended | |||||
---|---|---|---|---|---|---|
Jan. 15, 2014 |
Dec. 31, 2014 |
Dec. 29, 2015 |
||||
Note 8 - Acquisitions (Details) - Fair Value of Samsung Corning Precision Materials at Acquisition Date [Line Items] | ||||||
Ownership percentage | 42.50% | |||||
Ownership percentage | 57.50% | |||||
Ownership percentage | 100.00% | |||||
Fair value based on $1.9 billion consideration transferred | $ 1,911 | |||||
Fair value based on $1.9 billion consideration transferred | 2,588 | |||||
Fair value based on $1.9 billion consideration transferred | 4,499 | |||||
Less contingent consideration - receivable | (196) | $ (458) | ||||
Less contingent consideration - receivable | (265) | |||||
Less contingent consideration - receivable | (461) | |||||
Net fair value of consideration @ 100% | 1,715 | |||||
Net fair value of consideration @ 100% | 2,323 | $ 2,323 | [1] | |||
Net fair value of consideration @ 100% | 4,038 | $ 4,038 | ||||
Corning’s loss on royalty contract | (136) | |||||
Corning’s loss on royalty contract | (184) | |||||
Corning’s loss on royalty contract | (320) | |||||
Fair value post-acquisition | 1,579 | |||||
Fair value post-acquisition | 2,139 | |||||
Fair value post-acquisition | 3,718 | |||||
Corning’s fair value 57.5% post-acquisition | 2,139 | |||||
Total fair value at January 15, 2014 | $ 3,718 | |||||
|
Note 8 - Acquisitions (Details) - Fair Value of Samsung Corning Precision Materials at Acquisition Date (Parentheticals) |
Jan. 15, 2014 |
---|---|
Samsung Corning Precision Materials Co., Ltd. [Member] | |
Note 8 - Acquisitions (Details) - Fair Value of Samsung Corning Precision Materials at Acquisition Date (Parentheticals) [Line Items] | |
Net fair value of consideration, percent | 100.00% |
Note 8 - Acquisitions (Details) - Net Gain on Previously Owned Equity - USD ($) $ in Millions |
12 Months Ended | ||||||||
---|---|---|---|---|---|---|---|---|---|
Jan. 15, 2014 |
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
||||||
Business Acquisition [Line Items] | |||||||||
December 2013 Investment Balance | $ 1,777 | ||||||||
Dividend (1) | (143) | $ (1,704) | $ (630) | ||||||
Net investment book balance at 1/15/2014 | 1,905 | 1,777 | |||||||
Samsung Corning Precision Materials Co., Ltd. [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
December 2013 Investment Balance | $ 3,709 | $ 2,117 | 3,709 | ||||||
Dividend (1) | (1,600) | (1,574) | [1] | ||||||
Other | (18) | ||||||||
Net investment book balance at 1/15/2014 | 2,117 | $ 3,709 | |||||||
Fair value Samsung Corning Precision Materials | 4,038 | 4,038 | |||||||
57.5% of Samsung Corning Precision Materials (2) | $ 2,323 | 2,323 | [2] | ||||||
Working capital adjustment and other | 52 | ||||||||
57.5% of the pre-acquisition fair value of assets | 2,375 | ||||||||
Gain on previously held equity investment (2) | [2] | 258 | |||||||
Translation gain | 136 | ||||||||
Net gain | $ 394 | ||||||||
|
Note 8 - Acquisitions (Details) - Net Gain on Previously Owned Equity (Parentheticals) - Samsung Corning Precision Materials Co., Ltd. [Member] |
Dec. 31, 2014 |
---|---|
Business Acquisition [Line Items] | |
Samsung Corning Precision Materials, Percent ownership | 57.50% |
Pre-acquisition fair value of assets, Percent | 57.50% |
Note 8 - Acquisitions (Details) - Unaudited Pro Forma Financial Information $ / shares in Units, shares in Millions, $ in Millions |
12 Months Ended |
---|---|
Dec. 31, 2013
USD ($)
$ / shares
shares
| |
Unaudited Pro Forma Financial Information [Abstract] | |
Net sales | $ 9,871 |
Net income attributable to Corning Incorporated – basic earnings per share | 2,327 |
Net income attributable to Corning Incorporated – diluted earnings per share | $ 2,425 |
Earnings per common share attributable to common shareholders | |
Basic (in Dollars per share) | $ / shares | $ 1.60 |
Diluted (in Dollars per share) | $ / shares | $ 1.54 |
Shares used in computing per share amounts | |
Basic (in Shares) | shares | 1,452 |
Diluted (in Shares) | shares | 1,577 |
Note 9 - Property, Plant and Equipment, Net of Accumulated Depreciation (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Property, Plant and Equipment [Abstract] | |||
Interest Costs Capitalized | $ 35 | $ 40 | $ 35 |
Precious Metals | 3,000 | 3,100 | |
Depletion | $ 19 | $ 21 | $ 20 |
Note 9 - Property, Plant and Equipment, Net of Accumulated Depreciation (Details) - Property, Net - USD ($) $ in Millions |
Dec. 31, 2015 |
Dec. 31, 2014 |
---|---|---|
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | $ 21,836 | $ 21,098 |
Accumulated depreciation | (9,188) | (8,332) |
Total | 12,648 | 12,766 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | 438 | 458 |
Building [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | 5,504 | 5,470 |
Machinery and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | 14,688 | 13,848 |
Construction in Progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | $ 1,206 | $ 1,322 |
Note 10 - Goodwill and Other Intangible Assets (Details) $ in Millions |
3 Months Ended | 12 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|
Dec. 31, 2015
USD ($)
|
Mar. 31, 2015 |
Dec. 31, 2015
USD ($)
|
Dec. 31, 2014
USD ($)
|
Dec. 31, 2013
USD ($)
|
||||
Note 10 - Goodwill and Other Intangible Assets (Details) [Line Items] | ||||||||
Goodwill, Purchase Accounting Adjustments | $ (7) | $ 60 | [1] | |||||
Number of Businesses Acquired | 1 | 4 | 5 | |||||
Goodwill, Gross | $ 7,900 | $ 7,900 | 7,600 | |||||
Finite-Lived Intangible Assets, Period Increase (Decrease) | 209 | |||||||
Finite-lived Intangible Assets Acquired | 288 | |||||||
Amortization of Intangible Assets | 54 | 33 | $ 31 | |||||
Finite-Lived Intangible Assets, Translation Adjustments | 25 | |||||||
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 61 | 61 | ||||||
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | 61 | 61 | ||||||
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 61 | 61 | ||||||
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 60 | 60 | ||||||
Finite-Lived Intangible Assets, Amortization Expense, Year Five | 55 | 55 | ||||||
Other Segments [Member] | ||||||||
Note 10 - Goodwill and Other Intangible Assets (Details) [Line Items] | ||||||||
Goodwill, Impairment Loss | 29 | |||||||
Optical Communications [Member] | ||||||||
Note 10 - Goodwill and Other Intangible Assets (Details) [Line Items] | ||||||||
Goodwill, Purchase Accounting Adjustments | (7) | |||||||
Goodwill, Impaired, Accumulated Impairment Loss | $ 6,500 | $ 6,500 | 6,500 | |||||
Samsung Corning Precision Materials Co., Ltd. [Member] | ||||||||
Note 10 - Goodwill and Other Intangible Assets (Details) [Line Items] | ||||||||
Goodwill, Purchase Accounting Adjustments | $ 60 | |||||||
|
Note 10 - Goodwill and Other Intangible Assets (Details) - Carrying Amount of Goodwill by Segment - USD ($) $ in Millions |
12 Months Ended | ||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
||||||||||||
Goodwill [Line Items] | |||||||||||||
Balance | $ 1,150 | $ 1,002 | |||||||||||
Acquired goodwill | 307 | [1] | 122 | [2] | |||||||||
Measurement period adjustment | (7) | 60 | [3] | ||||||||||
Foreign currency translation adjustment | (41) | (34) | |||||||||||
Other (4) | [4] | (29) | |||||||||||
Balance | 1,380 | 1,150 | |||||||||||
Optical Communications [Member] | |||||||||||||
Goodwill [Line Items] | |||||||||||||
Balance | 238 | 240 | |||||||||||
Acquired goodwill | [1] | 220 | |||||||||||
Measurement period adjustment | (7) | ||||||||||||
Foreign currency translation adjustment | (12) | (2) | |||||||||||
Balance | 439 | 238 | |||||||||||
Display Technologies [Member] | |||||||||||||
Goodwill [Line Items] | |||||||||||||
Balance | 134 | 9 | |||||||||||
Acquired goodwill | [2] | 68 | |||||||||||
Measurement period adjustment | [3] | 60 | |||||||||||
Foreign currency translation adjustment | (6) | (3) | |||||||||||
Balance | 128 | 134 | |||||||||||
Specialty Materials [Member] | |||||||||||||
Goodwill [Line Items] | |||||||||||||
Balance | 198 | 150 | |||||||||||
Acquired goodwill | [2] | 54 | |||||||||||
Foreign currency translation adjustment | (4) | (6) | |||||||||||
Other (4) | [4] | (44) | |||||||||||
Balance | 150 | 198 | |||||||||||
Life Sciences [Member] | |||||||||||||
Goodwill [Line Items] | |||||||||||||
Balance | 580 | 603 | |||||||||||
Foreign currency translation adjustment | (18) | (23) | |||||||||||
Balance | 562 | $ 580 | |||||||||||
Other Segments [Member] | |||||||||||||
Goodwill [Line Items] | |||||||||||||
Acquired goodwill | [1] | 87 | |||||||||||
Foreign currency translation adjustment | (1) | ||||||||||||
Other (4) | [4] | 15 | |||||||||||
Balance | $ 101 | ||||||||||||
|
Note 10 - Goodwill and Other Intangible Assets (Details) - Other Intangible Assets - USD ($) $ in Millions |
Dec. 31, 2015 |
Dec. 31, 2014 |
---|---|---|
Amortized intangible assets: | ||
Other intangible assets, gross | $ 971 | $ 713 |
Other intangible assets, accumulated amortization | 265 | 216 |
Other intangible assets, net | 706 | 497 |
Patents, Trademarks, and Trade Names [Member] | ||
Amortized intangible assets: | ||
Other intangible assets, gross | 350 | 302 |
Other intangible assets, accumulated amortization | 162 | 149 |
Other intangible assets, net | 188 | 153 |
Customer Lists and Other [Member] | ||
Amortized intangible assets: | ||
Other intangible assets, gross | 621 | 411 |
Other intangible assets, accumulated amortization | 103 | 67 |
Other intangible assets, net | $ 518 | $ 344 |
Note 11 - Other Assets and Other Liabilities (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Note 11 - Other Assets and Other Liabilities (Details) [Line Items] | |||
Loss Contingency, Accrual, Noncurrent | $ 440 | $ 681 | |
Loss Contingency, Accrual, Current | 238 | ||
Proceeds from Deposits from Customers | $ 197 | ||
Pittsburgh Corning Corporation (PCC) [Member] | |||
Note 11 - Other Assets and Other Liabilities (Details) [Line Items] | |||
Equity Method Investment, Ownership Percentage | 50.00% | ||
Chinese Customer [Member] | |||
Note 11 - Other Assets and Other Liabilities (Details) [Line Items] | |||
Customer Advances and Deposits, Nonrefundable | $ 400 | ||
Proceeds from Deposits from Customers | $ 197 | ||
Chinese Customer [Member] | Scenario, Forecast [Member] | |||
Note 11 - Other Assets and Other Liabilities (Details) [Line Items] | |||
Proceeds from Deposits from Customers | $ 197 | ||
PPG Industries, Inc. [Member] | Pittsburgh Corning Corporation (PCC) [Member] | |||
Note 11 - Other Assets and Other Liabilities (Details) [Line Items] | |||
Equity Method Investment, Ownership Percentage | 50.00% | ||
Asbestos Litigation [Member] | |||
Note 11 - Other Assets and Other Liabilities (Details) [Line Items] | |||
Loss Contingency Accrual | $ 678 | $ 681 | |
Loss Contingency, Accrual, Noncurrent | 440 | ||
Asbestos Litigation [Member] | Fixed Series of Payment [Member] | |||
Note 11 - Other Assets and Other Liabilities (Details) [Line Items] | |||
Loss Contingency, Accrual, Noncurrent | 290 | ||
Asbestos Litigation [Member] | Non-PCC Asbestos Litigation [Member] | |||
Note 11 - Other Assets and Other Liabilities (Details) [Line Items] | |||
Loss Contingency, Accrual, Noncurrent | 150 | ||
Asbestos Litigation [Member] | Pittsburgh Corning Europe (PCE) [Member] | |||
Note 11 - Other Assets and Other Liabilities (Details) [Line Items] | |||
Loss Contingency, Accrual, Current | $ 238 |
Note 11 - Other Assets and Other Liabilities (Details) - Other Assets and Other Liabilities - USD ($) $ in Millions |
Dec. 31, 2015 |
Dec. 31, 2014 |
---|---|---|
Current assets: | ||
Derivative instruments | $ 522 | $ 687 |
Other current assets | 390 | 412 |
Other current assets | 912 | 1,099 |
Non-current assets: | ||
Derivative instruments | 473 | 847 |
Contingent consideration asset | 246 | 445 |
Other non-current assets | 794 | 430 |
Other assets | 1,513 | 1,722 |
Current liabilities: | ||
Wages and employee benefits | 491 | 562 |
Income taxes | 53 | 106 |
Asbestos litigation | 238 | |
Other current liabilities | 526 | 623 |
Other accrued liabilities | 1,308 | 1,291 |
Non-current liabilities: | ||
Asbestos litigation | 440 | 681 |
Other non-current liabilities | 1,802 | 1,365 |
Other liabilities | $ 2,242 | $ 2,046 |
Note 12 - Debt (Details) ¥ in Billions |
3 Months Ended | 12 Months Ended | |||||||
---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2015
USD ($)
|
Dec. 31, 2013
USD ($)
|
Jun. 30, 2013
USD ($)
|
Mar. 31, 2013
USD ($)
|
Dec. 31, 2015
USD ($)
|
Dec. 31, 2013
USD ($)
|
Dec. 31, 2014
USD ($)
|
Sep. 30, 2014
USD ($)
|
Mar. 31, 2013
CNY (¥)
|
|
Note 12 - Debt (Details) [Line Items] | |||||||||
Debt, Weighted Average Interest Rate | 7.00% | 2.50% | |||||||
Debt Instrument, Fair Value Disclosure | $ 4,100,000,000 | $ 3,600,000,000 | |||||||
Proceeds from Issuance of Unsecured Debt | 745,000,000 | $ 248,000,000 | |||||||
Capital Lease Obligations Incurred | $ 230,000,000 | ||||||||
Senior Notes [Member] | |||||||||
Note 12 - Debt (Details) [Line Items] | |||||||||
Proceeds from Issuance of Unsecured Debt | $ 745,000,000 | ||||||||
Amended Credit Facility [Member] | |||||||||
Note 12 - Debt (Details) [Line Items] | |||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 1,000,000,000 | $ 2,000,000,000 | |||||||
Long-term Line of Credit | $ 0 | ||||||||
Foreign Line of Credit [Member] | |||||||||
Note 12 - Debt (Details) [Line Items] | |||||||||
Line of Credit Facility, Maximum Borrowing Capacity | ¥ | ¥ 4 | ||||||||
Repayments of Lines of Credit | $ 500,000,000 | ||||||||
Commercial Paper [Member] | |||||||||
Note 12 - Debt (Details) [Line Items] | |||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 1,000,000,000 | ||||||||
Commercial Paper [Member] | |||||||||
Note 12 - Debt (Details) [Line Items] | |||||||||
Debt, Weighted Average Interest Rate | 0.60% | ||||||||
Debentures 1.5%, Due 2018 [Member] | |||||||||
Note 12 - Debt (Details) [Line Items] | |||||||||
Debt Instrument, Interest Rate, Stated Percentage | 1.50% | ||||||||
Debentures 1.5%, Due 2018 [Member] | Senior Notes [Member] | |||||||||
Note 12 - Debt (Details) [Line Items] | |||||||||
Debt Instrument, Face Amount | $ 375,000,000 | ||||||||
Debt Instrument, Interest Rate, Stated Percentage | 1.50% | ||||||||
Debentures 2.9%, Due 2022 [Member] | |||||||||
Note 12 - Debt (Details) [Line Items] | |||||||||
Debt Instrument, Interest Rate, Stated Percentage | 2.90% | ||||||||
Debentures 2.9%, Due 2022 [Member] | Senior Notes [Member] | |||||||||
Note 12 - Debt (Details) [Line Items] | |||||||||
Debt Instrument, Face Amount | $ 375,000,000 | ||||||||
Debt Instrument, Interest Rate, Stated Percentage | 2.90% | ||||||||
Debentures, 3.70%, due 2023 [Member] | |||||||||
Note 12 - Debt (Details) [Line Items] | |||||||||
Debt Instrument, Interest Rate, Stated Percentage | 3.70% | 3.70% | |||||||
Debentures, 3.70%, due 2023 [Member] | Senior Notes [Member] | |||||||||
Note 12 - Debt (Details) [Line Items] | |||||||||
Debt Instrument, Face Amount | $ 250,000,000 | $ 250,000,000 | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 3.70% | 3.70% | |||||||
Proceeds from Issuance of Long-term Debt and Capital Securities, Net | $ 248,000,000 | ||||||||
Maximum [Member] | Commercial Paper [Member] | |||||||||
Note 12 - Debt (Details) [Line Items] | |||||||||
Debt Instrument, Term | 390 days |
Note 12 - Debt (Details) - Long-term Debt - USD ($) $ in Millions |
Dec. 31, 2015 |
Dec. 31, 2014 |
---|---|---|
Current portion of long-term debt and short-term borrowings | ||
Current portion of long-term debt | $ 91 | $ 36 |
Total current portion of long-term debt and short-term borrowings | 572 | 36 |
Long-term debt | ||
Long term debt | 4,001 | 3,263 |
Long-term debt | 3,910 | 3,227 |
Commercial Paper [Member] | ||
Current portion of long-term debt and short-term borrowings | ||
Commercial paper | 481 | |
Debentures, 8.875%, Due 2016 [Member] | ||
Long-term debt | ||
Debentures | 64 | 66 |
Debentures, 1.45%, Due 2017 [Member] | ||
Long-term debt | ||
Debentures | 250 | 250 |
Debentures 1.5%, Due 2018 [Member] | ||
Long-term debt | ||
Debentures | 375 | |
Debentures 6.625% Due 2019 [Member] | ||
Long-term debt | ||
Debentures | 246 | 243 |
Debentures 4.25% Due 2020 [Member] | ||
Long-term debt | ||
Debentures | 291 | 287 |
Debentures, 8.875%, Due 2021 [Member] | ||
Long-term debt | ||
Debentures | 68 | 69 |
Debentures 2.9%, Due 2022 [Member] | ||
Long-term debt | ||
Debentures | 374 | |
Debentures, 3.70%, due 2023 [Member] | ||
Long-term debt | ||
Debentures | 249 | 249 |
Medium Term Notes Average Rate 7.66% Due Through 2023 [Member] | ||
Long-term debt | ||
Debentures | 45 | 45 |
Debentures 7.00% Due 2024 [Member] | ||
Long-term debt | ||
Debentures | 99 | 99 |
Debentures 6.85% Due 2029 [Member] | ||
Long-term debt | ||
Debentures | 169 | 170 |
Debentures Callable 7.25% Due 2036 [Member] | ||
Long-term debt | ||
Debentures | 249 | 249 |
Debentures, 4.70%, Due 2037 [Member] | ||
Long-term debt | ||
Debentures | 250 | 250 |
Debentures 5.75% Due 2040 [Member] | ||
Long-term debt | ||
Debentures | 398 | 398 |
Debentures, 4.75%, Due 2042 [Member] | ||
Long-term debt | ||
Debentures | 499 | 499 |
Other Average Rate 5.02%, Due Through 2042 [Member] | ||
Long-term debt | ||
Long term debt | $ 375 | $ 389 |
Note 12 - Debt (Details) - Long-term Debt (Parentheticals) |
12 Months Ended | |
---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Debentures, 8.875%, Due 2016 [Member] | ||
Note 12 - Debt (Details) - Long-term Debt (Parentheticals) [Line Items] | ||
Interest rate on debt | 8.875% | 8.875% |
Debt maturity date | 2016 | 2016 |
Debentures, 1.45%, Due 2017 [Member] | ||
Note 12 - Debt (Details) - Long-term Debt (Parentheticals) [Line Items] | ||
Interest rate on debt | 1.45% | 1.45% |
Debt maturity date | 2017 | 2017 |
Debentures 1.5%, Due 2018 [Member] | ||
Note 12 - Debt (Details) - Long-term Debt (Parentheticals) [Line Items] | ||
Interest rate on debt | 1.50% | |
Debt maturity date | 2018 | |
Debentures 6.625% Due 2019 [Member] | ||
Note 12 - Debt (Details) - Long-term Debt (Parentheticals) [Line Items] | ||
Interest rate on debt | 6.625% | 6.625% |
Debt maturity date | 2019 | 2019 |
Debentures 4.25% Due 2020 [Member] | ||
Note 12 - Debt (Details) - Long-term Debt (Parentheticals) [Line Items] | ||
Interest rate on debt | 4.25% | 4.25% |
Debt maturity date | 2020 | 2020 |
Debentures, 8.875%, Due 2021 [Member] | ||
Note 12 - Debt (Details) - Long-term Debt (Parentheticals) [Line Items] | ||
Interest rate on debt | 8.875% | 8.875% |
Debt maturity date | 2021 | 2021 |
Debentures 2.9%, Due 2022 [Member] | ||
Note 12 - Debt (Details) - Long-term Debt (Parentheticals) [Line Items] | ||
Interest rate on debt | 2.90% | |
Debt maturity date | 2022 | |
Debentures, 3.70%, due 2023 [Member] | ||
Note 12 - Debt (Details) - Long-term Debt (Parentheticals) [Line Items] | ||
Interest rate on debt | 3.70% | 3.70% |
Debt maturity date | 2023 | 2023 |
Medium Term Notes Average Rate 7.66% Due Through 2023 [Member] | ||
Note 12 - Debt (Details) - Long-term Debt (Parentheticals) [Line Items] | ||
Interest rate on debt | 7.66% | 7.66% |
Debt maturity date | 2023 | 2023 |
Debentures 7.00% Due 2024 [Member] | ||
Note 12 - Debt (Details) - Long-term Debt (Parentheticals) [Line Items] | ||
Interest rate on debt | 7.00% | 7.00% |
Debt maturity date | 2024 | 2024 |
Debentures 6.85% Due 2029 [Member] | ||
Note 12 - Debt (Details) - Long-term Debt (Parentheticals) [Line Items] | ||
Interest rate on debt | 6.85% | 6.85% |
Debt maturity date | 2029 | 2029 |
Debentures Callable 7.25% Due 2036 [Member] | ||
Note 12 - Debt (Details) - Long-term Debt (Parentheticals) [Line Items] | ||
Interest rate on debt | 7.25% | 7.25% |
Debt maturity date | 2036 | 2036 |
Debentures, 4.70%, Due 2037 [Member] | ||
Note 12 - Debt (Details) - Long-term Debt (Parentheticals) [Line Items] | ||
Interest rate on debt | 4.70% | 4.70% |
Debt maturity date | 2037 | 2037 |
Debentures 5.75% Due 2040 [Member] | ||
Note 12 - Debt (Details) - Long-term Debt (Parentheticals) [Line Items] | ||
Interest rate on debt | 5.75% | 5.75% |
Debt maturity date | 2040 | 2040 |
Debentures, 4.75%, Due 2042 [Member] | ||
Note 12 - Debt (Details) - Long-term Debt (Parentheticals) [Line Items] | ||
Interest rate on debt | 4.75% | 4.75% |
Debt maturity date | 2042 | 2042 |
Other Average Rate 5.02%, Due Through 2042 [Member] | ||
Note 12 - Debt (Details) - Long-term Debt (Parentheticals) [Line Items] | ||
Interest rate on debt | 5.02% | 5.02% |
Debt maturity date | 2042 | 2042 |
Note 12 - Debt (Details) - Debt Maturities $ in Millions |
Dec. 31, 2015
USD ($)
|
---|---|
Debt Maturities [Abstract] | |
$ 572 | |
257 | |
378 | |
253 | |
304 | |
$ 2,713 |
Note 13 - Employee Retirement Plans (Details) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015
USD ($)
|
Dec. 31, 2014
USD ($)
|
Dec. 31, 2013
USD ($)
|
|
Note 13 - Employee Retirement Plans (Details) [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 (in Dollars) | $ 3,500 | $ 3,600 | |
Grading Sources | 4 | ||
Defined Benefit Plan, Number of Years RP 2000 Mortality Table Is Used | 7 | ||
Credit Risk of Plan Assets Long Duration Corporate Bonds | 60.00% | ||
Currency Fluctuations Assets Invested in Non-US Investments | 12.00% | ||
Liquidity Risk Long Term Investments in Private Equity and Real Estate | 9.00% | ||
Defined Contribution Plan, Cost Recognized (in Dollars) | $ 53 | 62 | $ 63 |
United States Pension Plan of US Entity [Member] | |||
Note 13 - Employee Retirement Plans (Details) [Line Items] | |||
Defined Benefit Plan Voluntary Contributions by Employer (in Dollars) | 65 | 85 | |
Foreign Pension Plan [Member] | |||
Note 13 - Employee Retirement Plans (Details) [Line Items] | |||
Defined Benefit Plan Voluntary Contributions by Employer (in Dollars) | 35 | $ 45 | |
Pension Plan [Member] | |||
Note 13 - Employee Retirement Plans (Details) [Line Items] | |||
Defined Benefit Plan, Future Amortization of Prior Service Cost (Credit) (in Dollars) | 6 | ||
Other Postretirement Benefit Plan [Member] | |||
Note 13 - Employee Retirement Plans (Details) [Line Items] | |||
Defined Benefit Plan, Future Amortization of Prior Service Cost (Credit) (in Dollars) | (4) | ||
Defined Benefit Plan, Future Amortization of Gain (Loss) (in Dollars) | $ 1 | ||
Equity Securities [Member] | |||
Note 13 - Employee Retirement Plans (Details) [Line Items] | |||
Defined Benefit Plan, Target Plan Asset Allocations Range Minimum | 20.00% | ||
Defined Benefit Plan, Target Plan Asset Allocations Range Maximum | 25.00% | ||
Bond Investments [Member] | |||
Note 13 - Employee Retirement Plans (Details) [Line Items] | |||
Defined Benefit Plan, Target Plan Asset Allocations | 60.00% | ||
Private Equity and Real Estate [Member] | |||
Note 13 - Employee Retirement Plans (Details) [Line Items] | |||
Defined Benefit Plan, Target Plan Asset Allocations Range Minimum | 5.00% | ||
Defined Benefit Plan, Target Plan Asset Allocations Range Maximum | 15.00% | ||
Commodities [Member] | |||
Note 13 - Employee Retirement Plans (Details) [Line Items] | |||
Defined Benefit Plan, Target Plan Asset Allocations Range Minimum | 0.00% | ||
Defined Benefit Plan, Target Plan Asset Allocations Range Maximum | 5.00% | ||
Maximum [Member] | |||
Note 13 - Employee Retirement Plans (Details) [Line Items] | |||
Number of Bonds | 375 | ||
Percent to Yield | 40.00% | ||
Maximum [Member] | United States Pension Plan of US Entity [Member] | |||
Note 13 - Employee Retirement Plans (Details) [Line Items] | |||
Defined Benefit Plans, Estimated Future Employer Contributions in Next Fiscal Year (in Dollars) | $ 62 | ||
Maximum [Member] | Foreign Pension Plan [Member] | |||
Note 13 - Employee Retirement Plans (Details) [Line Items] | |||
Defined Benefit Plans, Estimated Future Employer Contributions in Next Fiscal Year (in Dollars) | $ 36 | ||
Minimum [Member] | |||
Note 13 - Employee Retirement Plans (Details) [Line Items] | |||
Number of Bonds | 350 | ||
Percent to Yield | 10.00% |
Note 13 - Employee Retirement Plans (Details) - Obligations and Funded Status Schedule - USD ($) $ in Millions |
12 Months Ended | ||||
---|---|---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Change in benefit obligation | |||||
Benefit obligation at beginning of year | $ 3,809 | $ 3,300 | |||
Service cost | 90 | 82 | $ 70 | ||
Interest cost | 144 | 160 | 131 | ||
Plan participants’ contributions | 1 | 1 | |||
Acquisitions | 103 | ||||
Amendments | 25 | ||||
Actuarial (gain) loss | (95) | 394 | |||
Other | (8) | (3) | |||
Benefits paid | (188) | (207) | |||
Foreign currency translation | (38) | (46) | |||
Benefit obligation at end of year | 3,715 | 3,809 | 3,300 | ||
Change in plan assets | |||||
Fair value of plan assets at beginning of year | 3,263 | 2,896 | |||
Actual (loss) gain on plan assets | (108) | 355 | |||
Employer contributions | 116 | 147 | |||
Plan participants’ contributions | 1 | 1 | |||
Acquisitions | 97 | ||||
Benefits paid | (188) | (207) | |||
Foreign currency translation | (26) | (26) | |||
Fair value of plan assets at end of year | 3,058 | 3,263 | 2,896 | ||
Funded status at end of year | |||||
Fair value of plan assets | 3,263 | 3,263 | 2,896 | $ 3,058 | $ 3,263 |
Benefit obligations | (3,809) | (3,809) | (3,300) | (3,715) | (3,809) |
Funded status of plans | (657) | (546) | |||
Amounts recognized in the consolidated balance sheets consist of: | |||||
Noncurrent asset | 50 | 47 | |||
Current liability | (35) | (41) | |||
Noncurrent liability | (672) | (552) | |||
Recognized liability | (657) | (546) | |||
Amounts recognized in accumulated other comprehensive income consist of: | |||||
Net actuarial loss | 332 | 308 | |||
Prior service cost (credit) | 35 | 41 | |||
Amount recognized at end of year | 367 | 349 | |||
United States Pension Plan of US Entity [Member] | |||||
Change in benefit obligation | |||||
Benefit obligation at beginning of year | 3,222 | 2,844 | |||
Service cost | 64 | 55 | 60 | ||
Interest cost | 126 | 137 | 115 | ||
Plan participants’ contributions | 1 | 1 | |||
Amendments | 25 | ||||
Actuarial (gain) loss | (87) | 327 | |||
Benefits paid | (165) | (167) | |||
Benefit obligation at end of year | 3,161 | 3,222 | 2,844 | ||
Change in plan assets | |||||
Fair value of plan assets at beginning of year | 2,814 | 2,596 | |||
Actual (loss) gain on plan assets | (111) | 287 | |||
Employer contributions | 77 | 97 | |||
Plan participants’ contributions | 1 | 1 | |||
Benefits paid | (165) | (167) | |||
Fair value of plan assets at end of year | 2,616 | 2,814 | 2,596 | ||
Funded status at end of year | |||||
Fair value of plan assets | 2,814 | 2,814 | 2,596 | 2,616 | 2,814 |
Benefit obligations | (3,222) | (3,222) | (2,844) | (3,161) | (3,222) |
Funded status of plans | (545) | (408) | |||
Amounts recognized in the consolidated balance sheets consist of: | |||||
Current liability | (30) | (30) | |||
Noncurrent liability | (515) | (378) | |||
Recognized liability | (545) | (408) | |||
Amounts recognized in accumulated other comprehensive income consist of: | |||||
Net actuarial loss | 305 | 278 | |||
Prior service cost (credit) | 37 | 44 | |||
Amount recognized at end of year | 342 | 322 | |||
Foreign Pension Plan [Member] | |||||
Change in benefit obligation | |||||
Benefit obligation at beginning of year | 587 | 456 | |||
Service cost | 26 | 27 | 10 | ||
Interest cost | 18 | 23 | 16 | ||
Acquisitions | 103 | ||||
Actuarial (gain) loss | (8) | 67 | |||
Other | (8) | (3) | |||
Benefits paid | (23) | (40) | |||
Foreign currency translation | (38) | (46) | |||
Benefit obligation at end of year | 554 | 587 | 456 | ||
Change in plan assets | |||||
Fair value of plan assets at beginning of year | 449 | 300 | |||
Actual (loss) gain on plan assets | 3 | 68 | |||
Employer contributions | 39 | 50 | |||
Acquisitions | 97 | ||||
Benefits paid | (23) | (40) | |||
Foreign currency translation | (26) | (26) | |||
Fair value of plan assets at end of year | 442 | 449 | 300 | ||
Funded status at end of year | |||||
Fair value of plan assets | 449 | 449 | 300 | 442 | 449 |
Benefit obligations | $ (587) | $ (587) | $ (456) | (554) | (587) |
Funded status of plans | (112) | (138) | |||
Amounts recognized in the consolidated balance sheets consist of: | |||||
Noncurrent asset | 50 | 47 | |||
Current liability | (5) | (11) | |||
Noncurrent liability | (157) | (174) | |||
Recognized liability | (112) | (138) | |||
Amounts recognized in accumulated other comprehensive income consist of: | |||||
Net actuarial loss | 27 | 30 | |||
Prior service cost (credit) | (2) | (3) | |||
Amount recognized at end of year | $ 25 | $ 27 |
Note 13 - Employee Retirement Plans (Details) - Postretirement Benefits - USD ($) $ in Millions |
12 Months Ended | |||||
---|---|---|---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Change in benefit obligation | ||||||
Benefit obligation at beginning of year | $ 3,809 | $ 3,300 | ||||
Service cost | 90 | 82 | $ 70 | |||
Interest cost | 144 | 160 | 131 | |||
Plan participants’ contributions | 1 | 1 | ||||
Amendments | 25 | |||||
Actuarial (gain) loss | (95) | 394 | ||||
Other | (8) | (3) | ||||
Benefits paid | (188) | (207) | ||||
Foreign currency translation | ||||||
Benefit obligation at end of year | 3,715 | 3,809 | 3,300 | |||
Funded status at end of year | ||||||
Fair value of plan assets | $ 3,058 | $ 3,263 | $ 2,896 | |||
Benefit obligations | (3,809) | (3,809) | (3,300) | (3,715) | (3,809) | (3,300) |
Funded status of plans | (657) | (546) | ||||
Amounts recognized in the consolidated balance sheets consist of: | ||||||
Current liability | (35) | (41) | ||||
Noncurrent liability | (672) | (552) | ||||
Recognized liability | (657) | (546) | ||||
Amounts recognized in accumulated other comprehensive income consist of: | ||||||
Net actuarial loss | (332) | (308) | ||||
Prior service credit | 35 | 41 | ||||
Amount recognized at end of year | 367 | 349 | ||||
Other Postretirement Benefit Plan [Member] | ||||||
Change in benefit obligation | ||||||
Benefit obligation at beginning of year | 862 | 815 | ||||
Service cost | 13 | 11 | 13 | |||
Interest cost | 33 | 38 | 39 | |||
Plan participants’ contributions | 7 | 7 | ||||
Amendments | (5) | |||||
Actuarial (gain) loss | (97) | 49 | ||||
Other | 4 | |||||
Benefits paid | (61) | (56) | ||||
Medicare subsidy received | 2 | 3 | ||||
Foreign currency translation | ||||||
Benefit obligation at end of year | 763 | 862 | 815 | |||
Funded status at end of year | ||||||
Fair value of plan assets | 0 | 0 | ||||
Benefit obligations | $ (862) | $ (862) | $ (815) | (763) | (862) | $ (815) |
Funded status of plans | (763) | (862) | ||||
Amounts recognized in the consolidated balance sheets consist of: | ||||||
Current liability | (45) | (48) | ||||
Noncurrent liability | (718) | (814) | ||||
Recognized liability | (763) | (862) | ||||
Amounts recognized in accumulated other comprehensive income consist of: | ||||||
Net actuarial loss | 33 | 132 | ||||
Prior service credit | (19) | (27) | ||||
Amount recognized at end of year | $ 14 | $ 105 |
Note 13 - Employee Retirement Plans (Details) - Benefit Obligations in Excess of Fair Value of Plan Assets - USD ($) $ in Millions |
Dec. 31, 2015 |
Dec. 31, 2014 |
---|---|---|
Benefit Obligations in Excess of Fair Value of Plan Assets [Abstract] | ||
Projected benefit obligation | $ 3,341 | $ 3,425 |
Fair value of plan assets | $ 2,635 | $ 2,831 |
Note 13 - Employee Retirement Plans (Details) - Accumulated Benefit Obligation in Excess of Fair Value of Plan Assets - USD ($) $ in Millions |
Dec. 31, 2015 |
Dec. 31, 2014 |
---|---|---|
Accumulated Benefit Obligation in Excess of Fair Value of Plan Assets [Abstract] | ||
Accumulated benefit obligation | $ 3,159 | $ 479 |
Fair value of plan assets | $ 2,634 | $ 17 |
Note 13 - Employee Retirement Plans (Details) - Net Periodic Benefit Expense - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Note 13 - Employee Retirement Plans (Details) - Net Periodic Benefit Expense [Line Items] | |||
Service cost | $ 90 | $ 82 | $ 70 |
Interest cost | 144 | 160 | 131 |
Expected return on plan assets | (178) | (174) | (169) |
Amortization of prior service cost (credit) | 6 | 6 | 5 |
Recognition of actuarial loss (gain) | (95) | 394 | |
Total net periodic benefit expense | 227 | 103 | 7 |
Other changes in plan assets and benefit obligations recognized in other comprehensive income: | |||
Curtailment effects | (3) | ||
Settlements | (1) | (2) | |
Current year actuarial loss (gain) | 191 | 212 | (264) |
Recognition of actuarial (loss) gain | (165) | (29) | 30 |
Current year prior service cost | 25 | ||
Amortization of prior service (cost) credit | (6) | (6) | (5) |
Total recognized in other comprehensive (income) loss | 19 | 197 | (239) |
Total recognized in net periodic benefit cost and other comprehensive (income) loss | 246 | 300 | (232) |
Recognition of Actuarial Gain [Member] | |||
Note 13 - Employee Retirement Plans (Details) - Net Periodic Benefit Expense [Line Items] | |||
Recognition of actuarial loss (gain) | 165 | 29 | (30) |
United States Pension Plan of US Entity [Member] | |||
Note 13 - Employee Retirement Plans (Details) - Net Periodic Benefit Expense [Line Items] | |||
Service cost | 64 | 55 | 60 |
Interest cost | 126 | 137 | 115 |
Expected return on plan assets | (166) | (159) | (158) |
Amortization of prior service cost (credit) | 7 | 7 | 6 |
Recognition of actuarial loss (gain) | (87) | 327 | |
Total net periodic benefit expense | 193 | 44 | (18) |
Other changes in plan assets and benefit obligations recognized in other comprehensive income: | |||
Current year actuarial loss (gain) | 189 | 198 | (274) |
Recognition of actuarial (loss) gain | (162) | (4) | 41 |
Current year prior service cost | 25 | ||
Amortization of prior service (cost) credit | (7) | (7) | (6) |
Total recognized in other comprehensive (income) loss | 20 | 212 | (239) |
Total recognized in net periodic benefit cost and other comprehensive (income) loss | 213 | 256 | (257) |
United States Pension Plan of US Entity [Member] | Recognition of Actuarial Gain [Member] | |||
Note 13 - Employee Retirement Plans (Details) - Net Periodic Benefit Expense [Line Items] | |||
Recognition of actuarial loss (gain) | 162 | 4 | (41) |
Foreign Pension Plan [Member] | |||
Note 13 - Employee Retirement Plans (Details) - Net Periodic Benefit Expense [Line Items] | |||
Service cost | 26 | 27 | 10 |
Interest cost | 18 | 23 | 16 |
Expected return on plan assets | (12) | (15) | (11) |
Amortization of prior service cost (credit) | (1) | (1) | (1) |
Recognition of actuarial loss (gain) | (8) | 67 | |
Total net periodic benefit expense | 34 | 59 | 25 |
Other changes in plan assets and benefit obligations recognized in other comprehensive income: | |||
Curtailment effects | (3) | ||
Settlements | (1) | (2) | |
Current year actuarial loss (gain) | 2 | 14 | 10 |
Recognition of actuarial (loss) gain | (3) | (25) | (11) |
Amortization of prior service (cost) credit | 1 | 1 | 1 |
Total recognized in other comprehensive (income) loss | (1) | (15) | 0 |
Total recognized in net periodic benefit cost and other comprehensive (income) loss | 33 | 44 | 25 |
Foreign Pension Plan [Member] | Recognition of Actuarial Gain [Member] | |||
Note 13 - Employee Retirement Plans (Details) - Net Periodic Benefit Expense [Line Items] | |||
Recognition of actuarial loss (gain) | $ 3 | $ 25 | $ 11 |
Note 13 - Employee Retirement Plans (Details) - Net Periodic Benefit Cost of Postretirement Benefits - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Note 13 - Employee Retirement Plans (Details) - Net Periodic Benefit Cost of Postretirement Benefits [Line Items] | |||
Service cost | $ 90 | $ 82 | $ 70 |
Interest cost | 144 | 160 | 131 |
Amortization of prior service credit | 6 | 6 | 5 |
Total net periodic benefit expense | 227 | 103 | 7 |
Other changes in plan assets and benefit obligations recognized in other comprehensive income: | |||
Current year actuarial (gain) loss | (191) | (212) | 264 |
Amortization of actuarial loss | (165) | (29) | 30 |
Current year prior service credit | 25 | ||
Amortization of prior service credit | 6 | 6 | 5 |
Total recognized in other comprehensive (income) loss | 19 | 197 | (239) |
Total recognized in net periodic benefit cost and other comprehensive (income) loss | 246 | 300 | (232) |
Other Postretirement Benefit Plan [Member] | |||
Note 13 - Employee Retirement Plans (Details) - Net Periodic Benefit Cost of Postretirement Benefits [Line Items] | |||
Service cost | 13 | 11 | 13 |
Interest cost | 33 | 38 | 39 |
Amortization of net loss | 3 | 15 | |
Amortization of prior service credit | (7) | (6) | (6) |
Total net periodic benefit expense | 42 | 43 | 61 |
Other changes in plan assets and benefit obligations recognized in other comprehensive income: | |||
Current year actuarial (gain) loss | (96) | 49 | (178) |
Amortization of actuarial loss | (3) | (15) | |
Current year prior service credit | (5) | (5) | |
Amortization of prior service credit | 7 | 6 | 6 |
Total recognized in other comprehensive (income) loss | (92) | 50 | (192) |
Total recognized in net periodic benefit cost and other comprehensive (income) loss | $ (50) | $ 93 | $ (131) |
Note 13 - Employee Retirement Plans (Details) - Weighted-average Assumptions Used to Determine Benefit Obligations and Net Periodic Benefit Cost |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
United States Pension Plan of US Entity [Member] | |||
Note 13 - Employee Retirement Plans (Details) - Weighted-average Assumptions Used to Determine Benefit Obligations and Net Periodic Benefit Cost [Line Items] | |||
Discount rate | 4.24% | 4.00% | 4.75% |
Rate of compensation increase | 3.50% | 3.50% | 4.00% |
Discount rate | 4.00% | 4.75% | 3.75% |
Expected return on plan assets | 6.00% | 6.25% | 6.00% |
Rate of compensation increase | 3.50% | 4.00% | 4.00% |
Foreign Pension Plan [Member] | |||
Note 13 - Employee Retirement Plans (Details) - Weighted-average Assumptions Used to Determine Benefit Obligations and Net Periodic Benefit Cost [Line Items] | |||
Discount rate | 3.23% | 3.21% | 4.08% |
Rate of compensation increase | 3.92% | 3.88% | 3.85% |
Discount rate | 3.21% | 4.08% | 4.48% |
Expected return on plan assets | 2.97% | 4.12% | 3.73% |
Rate of compensation increase | 3.88% | 3.85% | 3.45% |
Other Postretirement Benefit Plan [Member] | |||
Note 13 - Employee Retirement Plans (Details) - Weighted-average Assumptions Used to Determine Benefit Obligations and Net Periodic Benefit Cost [Line Items] | |||
Discount rate | 4.31% | 4.00% | 4.75% |
Discount rate | 4.00% | 4.75% | 4.00% |
Note 13 - Employee Retirement Plans (Details) - Assumed Health Care Trend Rates |
12 Months Ended | |
---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Assumed Health Care Trend Rates [Abstract] | ||
Health care cost trend rate assumed for next year | 7.00% | 6.67% |
Rate that the cost trend rate gradually declines to | 5.00% | 5.00% |
Year that the rate reaches the ultimate trend rate | 2024 | 2020 |
Note 13 - Employee Retirement Plans (Details) - Effect One-percent-point Change in Assumed Health Care Cost $ in Millions |
12 Months Ended |
---|---|
Dec. 31, 2015
USD ($)
| |
Effect One-percent-point Change in Assumed Health Care Cost [Abstract] | |
Effect on annual total of service and interest cost | $ 4 |
Effect on annual total of service and interest cost | (3) |
Effect on postretirement benefit obligation | 52 |
Effect on postretirement benefit obligation | $ (43) |
Note 13 - Employee Retirement Plans (Details) - Domestic Defined Benefit Plan Assets - USD ($) $ in Millions |
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|||||||
---|---|---|---|---|---|---|---|---|---|---|
Equity securities: | ||||||||||
Fair value of plan assets | $ 3,058 | $ 3,263 | $ 2,896 | |||||||
United States Pension Plan of US Entity [Member] | ||||||||||
Equity securities: | ||||||||||
Fair value of plan assets | 2,616 | 2,814 | 2,596 | |||||||
Private Equity Funds [Member] | ||||||||||
Equity securities: | ||||||||||
Fair value of plan assets | 163 | 192 | 207 | |||||||
Private Equity Funds [Member] | United States Pension Plan of US Entity [Member] | ||||||||||
Equity securities: | ||||||||||
Fair value of plan assets | [1] | 163 | 192 | |||||||
Real Estate [Member] | ||||||||||
Equity securities: | ||||||||||
Fair value of plan assets | 61 | 84 | $ 93 | |||||||
Real Estate [Member] | United States Pension Plan of US Entity [Member] | ||||||||||
Equity securities: | ||||||||||
Fair value of plan assets | [2] | 61 | 84 | |||||||
Cash Equivalents [Member] | United States Pension Plan of US Entity [Member] | ||||||||||
Equity securities: | ||||||||||
Fair value of plan assets | 71 | 80 | ||||||||
Commodity Option [Member] | United States Pension Plan of US Entity [Member] | ||||||||||
Equity securities: | ||||||||||
Fair value of plan assets | [3] | 97 | 101 | |||||||
U.S. Companies [Member] | Equity Securities [Member] | United States Pension Plan of US Entity [Member] | ||||||||||
Equity securities: | ||||||||||
Fair value of plan assets | 336 | 310 | ||||||||
U.S. Companies [Member] | Fixed Income Securities [Member] | United States Pension Plan of US Entity [Member] | ||||||||||
Equity securities: | ||||||||||
Fair value of plan assets | 1,566 | 1,720 | ||||||||
International Companies [Member] | Equity Securities [Member] | United States Pension Plan of US Entity [Member] | ||||||||||
Equity securities: | ||||||||||
Fair value of plan assets | 322 | 327 | ||||||||
Fair Value, Inputs, Level 1 [Member] | United States Pension Plan of US Entity [Member] | ||||||||||
Equity securities: | ||||||||||
Fair value of plan assets | 359 | 373 | ||||||||
Fair Value, Inputs, Level 1 [Member] | Cash Equivalents [Member] | United States Pension Plan of US Entity [Member] | ||||||||||
Equity securities: | ||||||||||
Fair value of plan assets | 71 | 80 | ||||||||
Fair Value, Inputs, Level 1 [Member] | U.S. Companies [Member] | Equity Securities [Member] | United States Pension Plan of US Entity [Member] | ||||||||||
Equity securities: | ||||||||||
Fair value of plan assets | 51 | 49 | ||||||||
Fair Value, Inputs, Level 1 [Member] | U.S. Companies [Member] | Fixed Income Securities [Member] | United States Pension Plan of US Entity [Member] | ||||||||||
Equity securities: | ||||||||||
Fair value of plan assets | 158 | 166 | ||||||||
Fair Value, Inputs, Level 1 [Member] | International Companies [Member] | Equity Securities [Member] | United States Pension Plan of US Entity [Member] | ||||||||||
Equity securities: | ||||||||||
Fair value of plan assets | 79 | 78 | ||||||||
Fair Value, Inputs, Level 2 [Member] | United States Pension Plan of US Entity [Member] | ||||||||||
Equity securities: | ||||||||||
Fair value of plan assets | 2,033 | 2,165 | ||||||||
Fair Value, Inputs, Level 2 [Member] | Commodity Option [Member] | United States Pension Plan of US Entity [Member] | ||||||||||
Equity securities: | ||||||||||
Fair value of plan assets | [3] | 97 | 101 | |||||||
Fair Value, Inputs, Level 2 [Member] | U.S. Companies [Member] | Equity Securities [Member] | United States Pension Plan of US Entity [Member] | ||||||||||
Equity securities: | ||||||||||
Fair value of plan assets | 285 | 261 | ||||||||
Fair Value, Inputs, Level 2 [Member] | U.S. Companies [Member] | Fixed Income Securities [Member] | United States Pension Plan of US Entity [Member] | ||||||||||
Equity securities: | ||||||||||
Fair value of plan assets | 1,408 | 1,554 | ||||||||
Fair Value, Inputs, Level 2 [Member] | International Companies [Member] | Equity Securities [Member] | United States Pension Plan of US Entity [Member] | ||||||||||
Equity securities: | ||||||||||
Fair value of plan assets | 243 | 249 | ||||||||
Fair Value, Inputs, Level 3 [Member] | United States Pension Plan of US Entity [Member] | ||||||||||
Equity securities: | ||||||||||
Fair value of plan assets | 224 | 276 | ||||||||
Fair Value, Inputs, Level 3 [Member] | Private Equity Funds [Member] | United States Pension Plan of US Entity [Member] | ||||||||||
Equity securities: | ||||||||||
Fair value of plan assets | [1] | 163 | 192 | |||||||
Fair Value, Inputs, Level 3 [Member] | Real Estate [Member] | United States Pension Plan of US Entity [Member] | ||||||||||
Equity securities: | ||||||||||
Fair value of plan assets | [2] | $ 61 | $ 84 | |||||||
|
Note 13 - Employee Retirement Plans (Details) - International Defined Benefit Plan Assets - USD ($) $ in Millions |
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
---|---|---|---|
Equity securities: | |||
Fair value of plan assets | $ 3,058 | $ 3,263 | $ 2,896 |
Foreign Pension Plan [Member] | |||
Equity securities: | |||
Fair value of plan assets | 442 | 449 | 300 |
Insurance Contracts [Member] | |||
Equity securities: | |||
Fair value of plan assets | 3 | 5 | 6 |
Insurance Contracts [Member] | Foreign Pension Plan [Member] | |||
Equity securities: | |||
Fair value of plan assets | 3 | 5 | |
Collateralized Mortgage Backed Securities [Member] | |||
Equity securities: | |||
Fair value of plan assets | 2 | 7 | $ 0 |
Collateralized Mortgage Backed Securities [Member] | Foreign Pension Plan [Member] | |||
Equity securities: | |||
Fair value of plan assets | 2 | 7 | |
Cash Equivalents [Member] | Foreign Pension Plan [Member] | |||
Equity securities: | |||
Fair value of plan assets | 60 | 48 | |
U.S. Companies [Member] | Equity Securities [Member] | Foreign Pension Plan [Member] | |||
Equity securities: | |||
Fair value of plan assets | 7 | 6 | |
International Companies [Member] | Equity Securities [Member] | Foreign Pension Plan [Member] | |||
Equity securities: | |||
Fair value of plan assets | 23 | 22 | |
International Companies [Member] | Fixed Income Securities [Member] | Foreign Pension Plan [Member] | |||
Equity securities: | |||
Fair value of plan assets | 347 | 361 | |
Fair Value, Inputs, Level 1 [Member] | Foreign Pension Plan [Member] | |||
Equity securities: | |||
Fair value of plan assets | 346 | 341 | |
Fair Value, Inputs, Level 1 [Member] | Cash Equivalents [Member] | Foreign Pension Plan [Member] | |||
Equity securities: | |||
Fair value of plan assets | 60 | 48 | |
Fair Value, Inputs, Level 1 [Member] | International Companies [Member] | Fixed Income Securities [Member] | Foreign Pension Plan [Member] | |||
Equity securities: | |||
Fair value of plan assets | 286 | 293 | |
Fair Value, Inputs, Level 2 [Member] | Foreign Pension Plan [Member] | |||
Equity securities: | |||
Fair value of plan assets | 91 | 96 | |
Fair Value, Inputs, Level 2 [Member] | U.S. Companies [Member] | Equity Securities [Member] | Foreign Pension Plan [Member] | |||
Equity securities: | |||
Fair value of plan assets | 7 | 6 | |
Fair Value, Inputs, Level 2 [Member] | International Companies [Member] | Equity Securities [Member] | Foreign Pension Plan [Member] | |||
Equity securities: | |||
Fair value of plan assets | 23 | 22 | |
Fair Value, Inputs, Level 2 [Member] | International Companies [Member] | Fixed Income Securities [Member] | Foreign Pension Plan [Member] | |||
Equity securities: | |||
Fair value of plan assets | 61 | 68 | |
Fair Value, Inputs, Level 3 [Member] | Foreign Pension Plan [Member] | |||
Equity securities: | |||
Fair value of plan assets | 5 | 12 | |
Fair Value, Inputs, Level 3 [Member] | Insurance Contracts [Member] | Foreign Pension Plan [Member] | |||
Equity securities: | |||
Fair value of plan assets | 3 | 5 | |
Fair Value, Inputs, Level 3 [Member] | Collateralized Mortgage Backed Securities [Member] | Foreign Pension Plan [Member] | |||
Equity securities: | |||
Fair value of plan assets | $ 2 | $ 7 |
Note 13 - Employee Retirement Plans (Details) - Changes in Fair Value of Level 3 Assets for Defined Benefit Plans - USD ($) $ in Millions |
12 Months Ended | |
---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair value of plan assets at beginning of year | $ 3,263 | $ 2,896 |
Fair value of plan assets at end of year | 3,058 | 3,263 |
Private Equity Funds [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair value of plan assets at beginning of year | 192 | 207 |
Actual return on plan assets relating to assets still held at the reporting date | 16 | 31 |
Transfers in and/or out of level 3 | (45) | (46) |
Fair value of plan assets at end of year | 163 | 192 |
Real Estate [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair value of plan assets at beginning of year | 84 | 93 |
Actual return on plan assets relating to assets still held at the reporting date | 12 | 8 |
Transfers in and/or out of level 3 | (35) | (17) |
Fair value of plan assets at end of year | 61 | 84 |
Collateralized Mortgage Backed Securities [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair value of plan assets at beginning of year | 7 | 0 |
Transfers in and/or out of level 3 | (5) | 7 |
Fair value of plan assets at end of year | 2 | 7 |
Insurance Contracts [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair value of plan assets at beginning of year | 5 | 6 |
Actual return on plan assets relating to assets still held at the reporting date | 1 | |
Transfers in and/or out of level 3 | (2) | (2) |
Fair value of plan assets at end of year | $ 3 | $ 5 |
Note 13 - Employee Retirement Plans (Details) - Estimated Future Benefit Payments and Gross Medicare to be Received $ in Millions |
Dec. 31, 2015
USD ($)
|
---|---|
United States Pension Plan of US Entity [Member] | |
Note 13 - Employee Retirement Plans (Details) - Estimated Future Benefit Payments and Gross Medicare to be Received [Line Items] | |
2016 | $ 192 |
2017 | 178 |
2018 | 186 |
2019 | 192 |
2020 | 198 |
2021-2025 | 1,100 |
Foreign Pension Plan [Member] | |
Note 13 - Employee Retirement Plans (Details) - Estimated Future Benefit Payments and Gross Medicare to be Received [Line Items] | |
2016 | 18 |
2017 | 22 |
2018 | 24 |
2019 | 25 |
2020 | 29 |
2021-2025 | 168 |
Other Postretirement Benefit Plan [Member] | |
Note 13 - Employee Retirement Plans (Details) - Estimated Future Benefit Payments and Gross Medicare to be Received [Line Items] | |
2016 | 45 |
2016 | 2 |
2017 | 44 |
2017 | 3 |
2018 | 44 |
2018 | 3 |
2019 | 44 |
2019 | 3 |
2020 | 46 |
2020 | 3 |
2021-2025 | 230 |
2021-2025 | $ 16 |
Note 14 - Commitments, Contingencies, and Guarantees (Details) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015
USD ($)
|
Dec. 31, 2014
USD ($)
|
Dec. 31, 2013
USD ($)
|
|
Note 14 - Commitments, Contingencies, and Guarantees (Details) [Line Items] | |||
Guarantor Obligations, Maximum Exposure, Undiscounted | $ 184 | ||
Liability for Uncertain Tax Positions, Current | 58 | ||
Operating Leases, Rent Expense | $ 94 | $ 92 | $ 85 |
Number of Hazardous Waste Sites | 17 | ||
Environmental Cleanup And Related Litigation [Member] | |||
Note 14 - Commitments, Contingencies, and Guarantees (Details) [Line Items] | |||
Accrual for Environmental Loss Contingencies | $ 37 | $ 43 | |
Standby Letters of Credit [Member] | |||
Note 14 - Commitments, Contingencies, and Guarantees (Details) [Line Items] | |||
Guarantor Obligations, Maximum Exposure, Undiscounted | 47 | ||
Standby Letters of Credit [Member] | Other Current Liabilities [Member] | |||
Note 14 - Commitments, Contingencies, and Guarantees (Details) [Line Items] | |||
Guarantor Obligations, Maximum Exposure, Undiscounted | $ 38 |
Note 14 - Commitments, Contingencies, and Guarantees (Details) - Obligations $ in Millions |
Dec. 31, 2015
USD ($)
|
|||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Recorded Unconditional Purchase Obligation [Line Items] | ||||||||||||||
Commitment expirations | $ 184 | |||||||||||||
Contractual obligation payments due | 8,251 | [1] | ||||||||||||
Total commitments and contingencies (5) | 8,435 | [1] | ||||||||||||
Performance Guarantee [Member] | ||||||||||||||
Recorded Unconditional Purchase Obligation [Line Items] | ||||||||||||||
Commitment expirations | 92 | |||||||||||||
Financial Standby Letter of Credit [Member] | ||||||||||||||
Recorded Unconditional Purchase Obligation [Line Items] | ||||||||||||||
Commitment expirations | 47 | [2] | ||||||||||||
Credit Facility to Equity Company [Member] | ||||||||||||||
Recorded Unconditional Purchase Obligation [Line Items] | ||||||||||||||
Commitment expirations | 31 | |||||||||||||
Loan Guarantees [Member] | ||||||||||||||
Recorded Unconditional Purchase Obligation [Line Items] | ||||||||||||||
Commitment expirations | 14 | |||||||||||||
Purchase Obligations [Member] | ||||||||||||||
Recorded Unconditional Purchase Obligation [Line Items] | ||||||||||||||
Contractual obligation payments due | 220 | [3] | ||||||||||||
Capital Addition Purchase Commitments [Member] | ||||||||||||||
Recorded Unconditional Purchase Obligation [Line Items] | ||||||||||||||
Contractual obligation payments due | 298 | [4] | ||||||||||||
Total Debt [Member] | ||||||||||||||
Recorded Unconditional Purchase Obligation [Line Items] | ||||||||||||||
Contractual obligation payments due | 4,122 | [5] | ||||||||||||
Interest On Long-term Debt [Member] | ||||||||||||||
Recorded Unconditional Purchase Obligation [Line Items] | ||||||||||||||
Contractual obligation payments due | 2,385 | [6] | ||||||||||||
Capital Leases [Member] | ||||||||||||||
Recorded Unconditional Purchase Obligation [Line Items] | ||||||||||||||
Contractual obligation payments due | 355 | [5] | ||||||||||||
Imputed Interest On Capital Leases [Member] | ||||||||||||||
Recorded Unconditional Purchase Obligation [Line Items] | ||||||||||||||
Contractual obligation payments due | 240 | |||||||||||||
Minimum Rental Commitments [Member] | ||||||||||||||
Recorded Unconditional Purchase Obligation [Line Items] | ||||||||||||||
Contractual obligation payments due | 573 | |||||||||||||
Uncertain Tax Positions [Member] | ||||||||||||||
Recorded Unconditional Purchase Obligation [Line Items] | ||||||||||||||
Contractual obligation payments due | 58 | [1] | ||||||||||||
Less Than 1 Year [Member] | ||||||||||||||
Recorded Unconditional Purchase Obligation [Line Items] | ||||||||||||||
Commitment expirations | 96 | |||||||||||||
Contractual obligation payments due | 1,209 | [1] | ||||||||||||
Total commitments and contingencies (5) | 1,305 | [1] | ||||||||||||
Less Than 1 Year [Member] | Performance Guarantee [Member] | ||||||||||||||
Recorded Unconditional Purchase Obligation [Line Items] | ||||||||||||||
Commitment expirations | 25 | |||||||||||||
Less Than 1 Year [Member] | Financial Standby Letter of Credit [Member] | ||||||||||||||
Recorded Unconditional Purchase Obligation [Line Items] | ||||||||||||||
Commitment expirations | 44 | [2] | ||||||||||||
Less Than 1 Year [Member] | Credit Facility to Equity Company [Member] | ||||||||||||||
Recorded Unconditional Purchase Obligation [Line Items] | ||||||||||||||
Commitment expirations | 27 | |||||||||||||
Less Than 1 Year [Member] | Purchase Obligations [Member] | ||||||||||||||
Recorded Unconditional Purchase Obligation [Line Items] | ||||||||||||||
Contractual obligation payments due | 106 | [3] | ||||||||||||
Less Than 1 Year [Member] | Capital Addition Purchase Commitments [Member] | ||||||||||||||
Recorded Unconditional Purchase Obligation [Line Items] | ||||||||||||||
Contractual obligation payments due | 298 | [4] | ||||||||||||
Less Than 1 Year [Member] | Total Debt [Member] | ||||||||||||||
Recorded Unconditional Purchase Obligation [Line Items] | ||||||||||||||
Contractual obligation payments due | 565 | [5] | ||||||||||||
Less Than 1 Year [Member] | Interest On Long-term Debt [Member] | ||||||||||||||
Recorded Unconditional Purchase Obligation [Line Items] | ||||||||||||||
Contractual obligation payments due | 165 | [6] | ||||||||||||
Less Than 1 Year [Member] | Capital Leases [Member] | ||||||||||||||
Recorded Unconditional Purchase Obligation [Line Items] | ||||||||||||||
Contractual obligation payments due | 7 | [5] | ||||||||||||
Less Than 1 Year [Member] | Imputed Interest On Capital Leases [Member] | ||||||||||||||
Recorded Unconditional Purchase Obligation [Line Items] | ||||||||||||||
Contractual obligation payments due | 19 | |||||||||||||
Less Than 1 Year [Member] | Minimum Rental Commitments [Member] | ||||||||||||||
Recorded Unconditional Purchase Obligation [Line Items] | ||||||||||||||
Contractual obligation payments due | 49 | |||||||||||||
1 to 3 Years [Member] | ||||||||||||||
Recorded Unconditional Purchase Obligation [Line Items] | ||||||||||||||
Commitment expirations | 6 | |||||||||||||
Contractual obligation payments due | 1,175 | [1] | ||||||||||||
Total commitments and contingencies (5) | 1,181 | [1] | ||||||||||||
1 to 3 Years [Member] | Performance Guarantee [Member] | ||||||||||||||
Recorded Unconditional Purchase Obligation [Line Items] | ||||||||||||||
Commitment expirations | 6 | |||||||||||||
1 to 3 Years [Member] | Purchase Obligations [Member] | ||||||||||||||
Recorded Unconditional Purchase Obligation [Line Items] | ||||||||||||||
Contractual obligation payments due | 77 | [3] | ||||||||||||
1 to 3 Years [Member] | Total Debt [Member] | ||||||||||||||
Recorded Unconditional Purchase Obligation [Line Items] | ||||||||||||||
Contractual obligation payments due | 625 | [5] | ||||||||||||
1 to 3 Years [Member] | Interest On Long-term Debt [Member] | ||||||||||||||
Recorded Unconditional Purchase Obligation [Line Items] | ||||||||||||||
Contractual obligation payments due | 316 | [6] | ||||||||||||
1 to 3 Years [Member] | Capital Leases [Member] | ||||||||||||||
Recorded Unconditional Purchase Obligation [Line Items] | ||||||||||||||
Contractual obligation payments due | 10 | [5] | ||||||||||||
1 to 3 Years [Member] | Imputed Interest On Capital Leases [Member] | ||||||||||||||
Recorded Unconditional Purchase Obligation [Line Items] | ||||||||||||||
Contractual obligation payments due | 37 | |||||||||||||
1 to 3 Years [Member] | Minimum Rental Commitments [Member] | ||||||||||||||
Recorded Unconditional Purchase Obligation [Line Items] | ||||||||||||||
Contractual obligation payments due | 110 | |||||||||||||
3 to 5 Years [Member] | ||||||||||||||
Recorded Unconditional Purchase Obligation [Line Items] | ||||||||||||||
Commitment expirations | 1 | |||||||||||||
Contractual obligation payments due | 983 | [1] | ||||||||||||
Total commitments and contingencies (5) | 984 | [1] | ||||||||||||
3 to 5 Years [Member] | Performance Guarantee [Member] | ||||||||||||||
Recorded Unconditional Purchase Obligation [Line Items] | ||||||||||||||
Commitment expirations | 1 | |||||||||||||
3 to 5 Years [Member] | Purchase Obligations [Member] | ||||||||||||||
Recorded Unconditional Purchase Obligation [Line Items] | ||||||||||||||
Contractual obligation payments due | 33 | [3] | ||||||||||||
3 to 5 Years [Member] | Total Debt [Member] | ||||||||||||||
Recorded Unconditional Purchase Obligation [Line Items] | ||||||||||||||
Contractual obligation payments due | 550 | [5] | ||||||||||||
3 to 5 Years [Member] | Interest On Long-term Debt [Member] | ||||||||||||||
Recorded Unconditional Purchase Obligation [Line Items] | ||||||||||||||
Contractual obligation payments due | 280 | [6] | ||||||||||||
3 to 5 Years [Member] | Capital Leases [Member] | ||||||||||||||
Recorded Unconditional Purchase Obligation [Line Items] | ||||||||||||||
Contractual obligation payments due | 7 | [5] | ||||||||||||
3 to 5 Years [Member] | Imputed Interest On Capital Leases [Member] | ||||||||||||||
Recorded Unconditional Purchase Obligation [Line Items] | ||||||||||||||
Contractual obligation payments due | 36 | |||||||||||||
3 to 5 Years [Member] | Minimum Rental Commitments [Member] | ||||||||||||||
Recorded Unconditional Purchase Obligation [Line Items] | ||||||||||||||
Contractual obligation payments due | 77 | |||||||||||||
More Than 5 Years [Member] | ||||||||||||||
Recorded Unconditional Purchase Obligation [Line Items] | ||||||||||||||
Commitment expirations | 81 | |||||||||||||
Contractual obligation payments due | 4,826 | [1] | ||||||||||||
Total commitments and contingencies (5) | 4,907 | [1] | ||||||||||||
More Than 5 Years [Member] | Performance Guarantee [Member] | ||||||||||||||
Recorded Unconditional Purchase Obligation [Line Items] | ||||||||||||||
Commitment expirations | 60 | |||||||||||||
More Than 5 Years [Member] | Financial Standby Letter of Credit [Member] | ||||||||||||||
Recorded Unconditional Purchase Obligation [Line Items] | ||||||||||||||
Commitment expirations | 3 | [2] | ||||||||||||
More Than 5 Years [Member] | Credit Facility to Equity Company [Member] | ||||||||||||||
Recorded Unconditional Purchase Obligation [Line Items] | ||||||||||||||
Commitment expirations | 4 | |||||||||||||
More Than 5 Years [Member] | Loan Guarantees [Member] | ||||||||||||||
Recorded Unconditional Purchase Obligation [Line Items] | ||||||||||||||
Commitment expirations | 14 | |||||||||||||
More Than 5 Years [Member] | Purchase Obligations [Member] | ||||||||||||||
Recorded Unconditional Purchase Obligation [Line Items] | ||||||||||||||
Contractual obligation payments due | 4 | [3] | ||||||||||||
More Than 5 Years [Member] | Total Debt [Member] | ||||||||||||||
Recorded Unconditional Purchase Obligation [Line Items] | ||||||||||||||
Contractual obligation payments due | 2,382 | [5] | ||||||||||||
More Than 5 Years [Member] | Interest On Long-term Debt [Member] | ||||||||||||||
Recorded Unconditional Purchase Obligation [Line Items] | ||||||||||||||
Contractual obligation payments due | 1,624 | [6] | ||||||||||||
More Than 5 Years [Member] | Capital Leases [Member] | ||||||||||||||
Recorded Unconditional Purchase Obligation [Line Items] | ||||||||||||||
Contractual obligation payments due | 331 | [5] | ||||||||||||
More Than 5 Years [Member] | Imputed Interest On Capital Leases [Member] | ||||||||||||||
Recorded Unconditional Purchase Obligation [Line Items] | ||||||||||||||
Contractual obligation payments due | 148 | |||||||||||||
More Than 5 Years [Member] | Minimum Rental Commitments [Member] | ||||||||||||||
Recorded Unconditional Purchase Obligation [Line Items] | ||||||||||||||
Contractual obligation payments due | $ 337 | |||||||||||||
|
Note 14 - Commitments, Contingencies, and Guarantees (Details) - Minimum Rental Commitments Under Leases $ in Millions |
Dec. 31, 2015
USD ($)
|
---|---|
Minimum Rental Commitments Under Leases [Abstract] | |
$ 49 | |
58 | |
52 | |
41 | |
36 | |
$ 337 |
Note 15 - Hedging Activities (Details) |
12 Months Ended | |||
---|---|---|---|---|
Dec. 31, 2015
USD ($)
|
Dec. 31, 2014
USD ($)
|
Dec. 31, 2013
USD ($)
|
Oct. 31, 2012
USD ($)
|
|
Note 15 - Hedging Activities (Details) [Line Items] | ||||
Derivative Asset, Notional Amount | $ 14,399,000,000 | $ 15,198,000,000 | ||
Interest Rate Swap [Member] | ||||
Note 15 - Hedging Activities (Details) [Line Items] | ||||
Gain (Loss) on Cash Flow Hedge Ineffectiveness, Net | 0 | $ 0 | $ 24,000,000 | |
Interest Rate Swap [Member] | Fair Value Hedging [Member] | ||||
Note 15 - Hedging Activities (Details) [Line Items] | ||||
Number of Interest Rate Derivatives Held | 2 | |||
Derivative Asset, Notional Amount | $ 550,000,000 | |||
Forward Contracts [Member] | Cash Flow Hedging [Member] | ||||
Note 15 - Hedging Activities (Details) [Line Items] | ||||
Foreign Currency Cash Flow Hedge Gain (Loss) to be Reclassified During Next 12 Months | 4,800,000 | |||
Net Notional Value [Member] | Not Designated as Hedging Instrument [Member] | Collar Options [Member] | ||||
Note 15 - Hedging Activities (Details) [Line Items] | ||||
Derivative, Notional Amount | 2,900,000,000 | |||
Gross Notional Value [Member] | Not Designated as Hedging Instrument [Member] | Foreign Exchange Forward [Member] | ||||
Note 15 - Hedging Activities (Details) [Line Items] | ||||
Derivative Asset, Notional Amount | $ 6,400,000,000 |
Note 15 - Hedging Activities (Details) - Summary of Notional Amounts and Respective Fair Values of Derivative Financial Instruments - USD ($) $ in Millions |
Dec. 31, 2015 |
Dec. 31, 2014 |
---|---|---|
Derivatives designated as hedging instruments | ||
Notional amount | $ 14,399 | $ 15,198 |
Asset derivatives, fair value | 995 | 1,535 |
Liability derivatives, fair value | (143) | (59) |
Designated as Hedging Instrument [Member] | ||
Derivatives designated as hedging instruments | ||
Asset derivatives, fair value | 1 | |
Liability derivatives, fair value | (23) | |
Designated as Hedging Instrument [Member] | Foreign Exchange Contract [Member] | ||
Derivatives designated as hedging instruments | ||
Notional amount | 782 | 487 |
Asset derivatives, fair value | 5 | 22 |
Liability derivatives, fair value | (10) | (6) |
Designated as Hedging Instrument [Member] | Interest Rate Swap [Member] | ||
Derivatives designated as hedging instruments | ||
Notional amount | 550 | 1,300 |
Asset derivatives, fair value | 1 | |
Liability derivatives, fair value | (4) | (15) |
Not Designated as Hedging Instrument [Member] | ||
Derivatives designated as hedging instruments | ||
Asset derivatives, fair value | 472 | 846 |
Liability derivatives, fair value | (61) | |
Not Designated as Hedging Instrument [Member] | Foreign Exchange Contract [Member] | ||
Derivatives designated as hedging instruments | ||
Notional amount | 1,095 | 1,285 |
Asset derivatives, fair value | 6 | 17 |
Liability derivatives, fair value | (12) | (5) |
Not Designated as Hedging Instrument [Member] | Translated Earnings Contracts [Member] | ||
Derivatives designated as hedging instruments | ||
Notional amount | 11,972 | 12,126 |
Asset derivatives, fair value | 511 | 649 |
Liability derivatives, fair value | $ (33) | $ (33) |
Note 15 - Hedging Activities (Details) - Effect on Consolidated Financial Statements - Cash Flow Hedging [Member] - USD ($) $ in Millions |
12 Months Ended | |||||
---|---|---|---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
||||
Note 15 - Hedging Activities (Details) - Effect on Consolidated Financial Statements [Line Items] | ||||||
Gain/(loss) recognized in other comprehensive income (OCI) | $ (24) | $ 17 | $ 89 | |||
Gain reclassified from accumulated OCI into income (effective) | [1] | 26 | 10 | 129 | ||
Sales [Member] | Interest Rate Hedges [Member] | ||||||
Note 15 - Hedging Activities (Details) - Effect on Consolidated Financial Statements [Line Items] | ||||||
Gain reclassified from accumulated OCI into income (effective) | [1] | 20 | 3 | |||
Cost of Sales [Member] | Interest Rate Hedges [Member] | ||||||
Note 15 - Hedging Activities (Details) - Effect on Consolidated Financial Statements [Line Items] | ||||||
Gain/(loss) recognized in other comprehensive income (OCI) | (7) | (3) | 33 | |||
Gain reclassified from accumulated OCI into income (effective) | [1] | 6 | 7 | 38 | ||
Other Income [Member] | Foreign Exchange Contract [Member] | ||||||
Note 15 - Hedging Activities (Details) - Effect on Consolidated Financial Statements [Line Items] | ||||||
Gain/(loss) recognized in other comprehensive income (OCI) | $ (17) | $ 20 | 56 | |||
Gain reclassified from accumulated OCI into income (effective) | [1] | $ 91 | ||||
|
Note 15 - Hedging Activities (Details) - Effect on Consolidated Financial Statements - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Note 15 - Hedging Activities (Details) - Effect on Consolidated Financial Statements [Line Items] | |||
Gain (loss) recognized in income | $ 80 | $ 1,369 | $ 435 |
Undesignated [Member] | |||
Note 15 - Hedging Activities (Details) - Effect on Consolidated Financial Statements [Line Items] | |||
Gain (loss) recognized in income | 85 | 1,411 | 622 |
Foreign Currency Transaction and Hedge Gain (Loss), Net [Member] | Foreign Exchange Contracts, Balance Sheet [Member] | |||
Note 15 - Hedging Activities (Details) - Effect on Consolidated Financial Statements [Line Items] | |||
Gain (loss) recognized in income | 8 | 29 | 100 |
Foreign Currency Transaction and Hedge Gain (Loss), Net [Member] | Foreign Exchange Contracts, Loans [Member] | |||
Note 15 - Hedging Activities (Details) - Effect on Consolidated Financial Statements [Line Items] | |||
Gain (loss) recognized in income | (3) | 13 | 87 |
Foreign Currency Transaction and Hedge Gain (Loss), Net [Member] | Translated Earnings Contracts [Member] | |||
Note 15 - Hedging Activities (Details) - Effect on Consolidated Financial Statements [Line Items] | |||
Gain (loss) recognized in income | $ 80 | $ 1,369 | $ 435 |
Note 16 - Fair Value Measurements (Details) - USD ($) |
Dec. 29, 2015 |
Dec. 31, 2015 |
Mar. 31, 2015 |
Dec. 31, 2014 |
Jan. 15, 2014 |
---|---|---|---|---|---|
Note 16 - Fair Value Measurements (Details) [Line Items] | |||||
Assets, Fair Value Disclosure, Nonrecurring | $ 0 | $ 0 | |||
Liabilities, Fair Value Disclosure, Nonrecurring | 0 | $ 0 | |||
Samsung Corning Precision Materials Co., Ltd. [Member] | |||||
Note 16 - Fair Value Measurements (Details) [Line Items] | |||||
Business Combination, Contingent Consideration, Asset | $ 458,000,000 | $ 196,000,000 | |||
Business Combination, Contingent Consideration, Assets Assignment Agreement Threshold | (300,000,000) | ||||
Samsung Corning Precision Materials Co., Ltd. [Member] | Revenues Generated by Samsung Corning Precision Materials [Member] | |||||
Note 16 - Fair Value Measurements (Details) [Line Items] | |||||
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High | 665,000,000 | ||||
Samsung Corning Precision Materials Co., Ltd. [Member] | Volumn of Certain Sales [Member] | |||||
Note 16 - Fair Value Measurements (Details) [Line Items] | |||||
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High | $ 100,000,000 | ||||
Samsung Corning Precision Materials Co., Ltd. [Member] | Samsung Display's Obligation to Pay or Right to Received [Member] | |||||
Note 16 - Fair Value Measurements (Details) [Line Items] | |||||
Business Combination, Contingent Consideration, Asset | 246,000,000 | ||||
Samsung Corning Precision Materials Co., Ltd. [Member] | Long Term Supply Agreements [Member] | |||||
Note 16 - Fair Value Measurements (Details) [Line Items] | |||||
Business Combination, Contingent Consideration, Asset | $ 212,000,000 | ||||
IBwave Solutions and Fiberoptics [Member] | |||||
Note 16 - Fair Value Measurements (Details) [Line Items] | |||||
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High | 28,000,000 | ||||
Business Combination, Contingent Consideration, Liability | $ 10,000,000 | $ 13,000,000 |
Note 16 - Fair Value Measurements (Details) - Major Categories of Financial Assets and Liabilities Measured on a Recurring Basis - USD ($) $ in Millions |
Dec. 31, 2015 |
Dec. 31, 2014 |
|||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Non-current assets: | |||||||||||
Other assets | $ 1,513 | $ 1,722 | |||||||||
Non-current liabilities: | |||||||||||
Other liabilities (1)(2) | 2,242 | 2,046 | |||||||||
Current Assets [Member] | |||||||||||
Current assets: | |||||||||||
Short-term investments | 100 | 759 | |||||||||
Other current assets | [1] | 522 | 687 | ||||||||
Non Current Assets [Member] | |||||||||||
Non-current assets: | |||||||||||
Other assets | 752 | [1],[2] | 1,330 | [3] | |||||||
Current Liabilities [Member] | |||||||||||
Current liabilities: | |||||||||||
Other liabilities | [1] | 55 | 44 | ||||||||
Non Current Liabilities [Member] | |||||||||||
Current liabilities: | |||||||||||
Other liabilities | [1] | 15 | |||||||||
Non-current liabilities: | |||||||||||
Other liabilities (1)(2) | [1],[2] | 98 | |||||||||
Fair Value, Inputs, Level 1 [Member] | Current Assets [Member] | |||||||||||
Current assets: | |||||||||||
Short-term investments | 100 | 759 | |||||||||
Fair Value, Inputs, Level 2 [Member] | Current Assets [Member] | |||||||||||
Current assets: | |||||||||||
Other current assets | [1] | 522 | 687 | ||||||||
Fair Value, Inputs, Level 2 [Member] | Non Current Assets [Member] | |||||||||||
Non-current assets: | |||||||||||
Other assets | 506 | [1],[2] | 885 | [3] | |||||||
Fair Value, Inputs, Level 2 [Member] | Current Liabilities [Member] | |||||||||||
Current liabilities: | |||||||||||
Other liabilities | [1] | 55 | 44 | ||||||||
Fair Value, Inputs, Level 2 [Member] | Non Current Liabilities [Member] | |||||||||||
Current liabilities: | |||||||||||
Other liabilities | [1] | 15 | |||||||||
Non-current liabilities: | |||||||||||
Other liabilities (1)(2) | [1],[2] | 88 | |||||||||
Fair Value, Inputs, Level 3 [Member] | Non Current Assets [Member] | |||||||||||
Non-current assets: | |||||||||||
Other assets | 246 | [1],[2] | $ 445 | [3] | |||||||
Fair Value, Inputs, Level 3 [Member] | Non Current Liabilities [Member] | |||||||||||
Non-current liabilities: | |||||||||||
Other liabilities (1)(2) | [1],[2] | $ 10 | |||||||||
|
Note 16 - Fair Value Measurements (Details) - Other Assets - USD ($) $ in Millions |
12 Months Ended | |
---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Other Assets [Abstract] | ||
Beginning balance | $ 445 | $ 196 |
Unrealized gains (loss) | 13 | 249 |
Transfer in (out) of level 3 | (212) | |
Ending balance | $ 246 | $ 445 |
Note 17 - Shareholders' Equity (Details) - USD ($) $ / shares in Units, $ in Millions |
1 Months Ended | 3 Months Ended | 4 Months Ended | 10 Months Ended | 11 Months Ended | 12 Months Ended | |||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jan. 22, 2016 |
Oct. 29, 2015 |
Mar. 04, 2014 |
Jan. 15, 2014 |
Jan. 15, 2014 |
May. 28, 2014 |
Jan. 31, 2014 |
Oct. 31, 2013 |
Jan. 22, 2016 |
May. 28, 2014 |
Mar. 31, 2014 |
Jan. 31, 2014 |
Dec. 31, 2014 |
Mar. 31, 2014 |
Dec. 31, 2015 |
Dec. 31, 2014 |
Mar. 31, 2014 |
Dec. 31, 2013 |
Oct. 28, 2015 |
Oct. 26, 2015 |
Jul. 15, 2015 |
Dec. 03, 2014 |
Oct. 22, 2013 |
|
Note 17 - Shareholders' Equity (Details) [Line Items] | |||||||||||||||||||||||
Preferred Stock, Par or Stated Value Per Share (in Dollars per share) | $ 100 | $ 100 | $ 100 | ||||||||||||||||||||
Stock Issued During Period, Value, Acquisitions | $ 1,915 | ||||||||||||||||||||||
Stock Issued During Period, Value, New Issues | 400 | ||||||||||||||||||||||
Minimum Closing Price of Common Stock for the Company to Exercise Option to Convert Preferred Stock (in Dollars per share) | $ 35 | ||||||||||||||||||||||
Treasury Stock, Shares, Acquired (in Shares) | 98,200,000 | 118,900,000 | 151,000,000 | ||||||||||||||||||||
Treasury Stock, Value, Acquired, Cost Method | $ 2,000 | $ 2,000 | $ 3,228 | 2,483 | $ 1,516 | ||||||||||||||||||
Other Comprehensive Income (Loss), Tax | (41) | (96) | 197 | ||||||||||||||||||||
Hedges [Member] | |||||||||||||||||||||||
Note 17 - Shareholders' Equity (Details) [Line Items] | |||||||||||||||||||||||
Other Comprehensive Income (Loss), Tax | (35) | 7 | 33 | ||||||||||||||||||||
Postretirement Benefits [Member] | |||||||||||||||||||||||
Note 17 - Shareholders' Equity (Details) [Line Items] | |||||||||||||||||||||||
Other Comprehensive Income (Loss), Tax | $ (6) | (104) | $ 164 | ||||||||||||||||||||
Investment Gains [Member] | |||||||||||||||||||||||
Note 17 - Shareholders' Equity (Details) [Line Items] | |||||||||||||||||||||||
Other Comprehensive Income (Loss), Tax | $ 1 | ||||||||||||||||||||||
Oct. 22, 2013 [Member] | |||||||||||||||||||||||
Note 17 - Shareholders' Equity (Details) [Line Items] | |||||||||||||||||||||||
Stock Repurchase Program, Authorized Amount | $ 2,000 | ||||||||||||||||||||||
Dec. 3, 2014 [Member] | |||||||||||||||||||||||
Note 17 - Shareholders' Equity (Details) [Line Items] | |||||||||||||||||||||||
Stock Repurchase Program, Authorized Amount | $ 1,500 | ||||||||||||||||||||||
Treasury Stock, Shares, Acquired (in Shares) | 70,400,000 | ||||||||||||||||||||||
Treasury Stock, Value, Acquired, Cost Method | $ 1,500 | ||||||||||||||||||||||
July 15, 2015 [Member] | |||||||||||||||||||||||
Note 17 - Shareholders' Equity (Details) [Line Items] | |||||||||||||||||||||||
Stock Repurchase Program, Authorized Amount | $ 2,000 | ||||||||||||||||||||||
Oct. 26, 2015 [Member] | |||||||||||||||||||||||
Note 17 - Shareholders' Equity (Details) [Line Items] | |||||||||||||||||||||||
Stock Repurchase Program, Authorized Amount | $ 4,000 | ||||||||||||||||||||||
Dec. 3, 2014 & July 15, 2015 [Member] | |||||||||||||||||||||||
Note 17 - Shareholders' Equity (Details) [Line Items] | |||||||||||||||||||||||
Treasury Stock, Shares, Acquired (in Shares) | 98,000,000 | ||||||||||||||||||||||
Treasury Stock, Value, Acquired, Cost Method | $ 2,000 | ||||||||||||||||||||||
Convertible Preferred Stock, Series A [Member] | |||||||||||||||||||||||
Note 17 - Shareholders' Equity (Details) [Line Items] | |||||||||||||||||||||||
Preferred Stock, Par or Stated Value Per Share (in Dollars per share) | $ 100 | $ 100 | |||||||||||||||||||||
Preferred Stock, Dividend Rate, Percentage | 4.25% | ||||||||||||||||||||||
Convertible Preferred Stock, Threshold Trading Days | 25 days | ||||||||||||||||||||||
Convertible Preferred Stock, Threshold Consecutive Trading Days | 40 days | ||||||||||||||||||||||
Samsung Corning Precision Materials Co., Ltd. [Member] | Convertible Preferred Stock, Series A [Member] | |||||||||||||||||||||||
Note 17 - Shareholders' Equity (Details) [Line Items] | |||||||||||||||||||||||
Preferred Stock, Par or Stated Value Per Share (in Dollars per share) | $ 100 | $ 100 | |||||||||||||||||||||
Stock Issued During Period, Shares, Acquisitions (in Shares) | 1,900 | 2,300 | 1,900 | ||||||||||||||||||||
Share Price (in Dollars per share) | $ 1,000,000 | $ 1,000,000 | |||||||||||||||||||||
Stock Issued During Period, Value, Acquisitions | $ 1,900 | $ 2,300 | |||||||||||||||||||||
Samsung Corning Precision Materials Co., Ltd. [Member] | Additional Amount Issued at Closing [Member] | Convertible Preferred Stock, Series A [Member] | |||||||||||||||||||||||
Note 17 - Shareholders' Equity (Details) [Line Items] | |||||||||||||||||||||||
Stock Issued During Period, Value, New Issues | $ 400 | $ 400 | |||||||||||||||||||||
JP Morgan Chase [Member] | April 24, 2013 [Member] | |||||||||||||||||||||||
Note 17 - Shareholders' Equity (Details) [Line Items] | |||||||||||||||||||||||
Stock Repurchase Program, Authorized Amount | $ 1,000 | ||||||||||||||||||||||
Treasury Stock, Shares, Acquired (in Shares) | 10,500,000 | 47,100,000 | 57,600,000 | ||||||||||||||||||||
Accelerated Share Repurchases, Settlement (Payment) or Receipt | $ (1,000) | ||||||||||||||||||||||
Treasury Stock, Value, Acquired, Cost Method | 800 | ||||||||||||||||||||||
Adjustments to Additional Paid in Capital, Other | $ (200) | ||||||||||||||||||||||
Open Market [Member] | April 24, 2013 [Member] | |||||||||||||||||||||||
Note 17 - Shareholders' Equity (Details) [Line Items] | |||||||||||||||||||||||
Treasury Stock, Shares, Acquired (in Shares) | 61,300,000 | ||||||||||||||||||||||
Treasury Stock, Value, Acquired, Cost Method | $ 1,000 | ||||||||||||||||||||||
Open Market [Member] | Jan 15, 2014 [Member] | |||||||||||||||||||||||
Note 17 - Shareholders' Equity (Details) [Line Items] | |||||||||||||||||||||||
Treasury Stock, Shares, Acquired (in Shares) | 36,900,000 | ||||||||||||||||||||||
Treasury Stock, Value, Acquired, Cost Method | $ 750 | ||||||||||||||||||||||
Citibank [Member] | March 4, 2014 [Member] | |||||||||||||||||||||||
Note 17 - Shareholders' Equity (Details) [Line Items] | |||||||||||||||||||||||
Stock Repurchase Program, Authorized Amount | $ 1,250 | ||||||||||||||||||||||
Treasury Stock, Shares, Acquired (in Shares) | 52,500,000 | 8,700,000 | 61,200,000 | ||||||||||||||||||||
Accelerated Share Repurchases, Settlement (Payment) or Receipt | $ (1,250) | ||||||||||||||||||||||
Morgan Stanley [Member] | Oct. 28, 2015 [Member] | |||||||||||||||||||||||
Note 17 - Shareholders' Equity (Details) [Line Items] | |||||||||||||||||||||||
Stock Repurchase Program, Authorized Amount | $ 1,250 | ||||||||||||||||||||||
Treasury Stock, Shares, Acquired (in Shares) | 53,100,000 | 69,000,000 | |||||||||||||||||||||
Accelerated Share Repurchases, Settlement (Payment) or Receipt | $ (1,250) | ||||||||||||||||||||||
Treasury Stock, Value, Acquired, Cost Method | 1,000 | ||||||||||||||||||||||
Adjustments to Additional Paid in Capital, Other | $ (250) | ||||||||||||||||||||||
Morgan Stanley [Member] | Subsequent Event [Member] | Oct. 28, 2015 [Member] | |||||||||||||||||||||||
Note 17 - Shareholders' Equity (Details) [Line Items] | |||||||||||||||||||||||
Treasury Stock, Shares, Acquired (in Shares) | 15,900,000 | ||||||||||||||||||||||
Common Stock [Member] | |||||||||||||||||||||||
Note 17 - Shareholders' Equity (Details) [Line Items] | |||||||||||||||||||||||
Convertible Preferred Stock, Shares Issued upon Conversion (in Shares) | 50,000 | 50,000 |
Note 17 - Shareholders' Equity (Details) - Changes in Capital Stock - USD ($) shares in Millions, $ in Millions |
10 Months Ended | 11 Months Ended | 12 Months Ended | |||||||
---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2014 |
Mar. 31, 2014 |
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
||||||
Note 17 - Shareholders' Equity (Details) - Changes in Capital Stock [Line Items] | ||||||||||
Balance at December 31, 2012 (in Shares) | 1,672.0 | |||||||||
Balance at December 31, 2012 | $ 836 | |||||||||
Balance at December 31, 2012 (in Shares) | (398.0) | |||||||||
Balance at December 31, 2012 | $ (6,727) | |||||||||
Shares issued to benefit plans and for option exercises | $ 149 | $ 264 | $ 144 | |||||||
Shares purchased for treasury (in Shares) | 98.2 | 118.9 | 151.0 | |||||||
Shares purchased for treasury | $ (2,000) | $ (2,000) | $ (3,228) | (2,483) | (1,516) | |||||
Other, net | $ (25) | $ (7) | $ (33) | |||||||
Balance (in Shares) | 1,672.0 | 1,681.0 | 1,672.0 | |||||||
Balance | $ 836 | $ 840 | $ 836 | |||||||
Balance (in Shares) | (398.0) | (551.0) | (398.0) | |||||||
Balance | $ (6,727) | $ (9,725) | $ (6,727) | |||||||
Common Stock [Member] | ||||||||||
Note 17 - Shareholders' Equity (Details) - Changes in Capital Stock [Line Items] | ||||||||||
Balance at December 31, 2012 (in Shares) | 1,672.0 | [1] | 1,661.0 | 1,649.0 | ||||||
Balance at December 31, 2012 | $ 836 | [1] | $ 831 | $ 825 | ||||||
Shares issued to benefit plans and for option exercises (in Shares) | 9.0 | 11.0 | 12.0 | |||||||
Shares issued to benefit plans and for option exercises | $ 4 | $ 5 | $ 6 | |||||||
Balance (in Shares) | 1,672.0 | [1] | 1,681.0 | 1,672.0 | [1] | 1,661.0 | ||||
Balance | $ 836 | [1] | $ 840 | $ 836 | [1] | $ 831 | ||||
Treasury Stock [Member] | ||||||||||
Note 17 - Shareholders' Equity (Details) - Changes in Capital Stock [Line Items] | ||||||||||
Balance at December 31, 2012 (in Shares) | (398.0) | [1] | (262.0) | (179.0) | ||||||
Balance at December 31, 2012 | $ (6,727) | [1] | $ (4,099) | $ (2,773) | ||||||
Shares issued to benefit plans and for option exercises | $ (1) | $ (2) | $ (1) | |||||||
Shares purchased for treasury (in Shares) | (151.0) | (135.0) | (82.0) | |||||||
Shares purchased for treasury | $ (2,978) | $ (2,612) | $ (1,316) | |||||||
Other, net (in Shares) | (2.0) | (1.0) | (1.0) | |||||||
Other, net | $ (19) | $ (14) | $ (9) | |||||||
Balance (in Shares) | (398.0) | [1] | (551.0) | (398.0) | [1] | (262.0) | ||||
Balance | $ (6,727) | [1] | $ (9,725) | $ (6,727) | [1] | $ (4,099) | ||||
|
Note 17 - Shareholders' Equity (Details) - Accumulated Other Comprehensive Income - USD ($) $ in Millions |
12 Months Ended | ||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|||||||||||||||||
Note 17 - Shareholders' Equity (Details) - Accumulated Other Comprehensive Income [Line Items] | |||||||||||||||||||
Balance | $ (1,307) | ||||||||||||||||||
Net current-period other comprehensive income (loss) | (505) | $ (1,352) | $ (312) | ||||||||||||||||
Balance | (1,811) | (1,307) | |||||||||||||||||
Accumulated Foreign Currency Adjustment Attributable to Parent [Member] | |||||||||||||||||||
Note 17 - Shareholders' Equity (Details) - Accumulated Other Comprehensive Income [Line Items] | |||||||||||||||||||
Balance | [1] | (581) | 492 | 1,174 | |||||||||||||||
Other comprehensive income before reclassifications | [1] | (487) | [2] | (821) | [3] | (756) | [4] | ||||||||||||
Amounts reclassified from accumulated other comprehensive income | [1],[5] | (136) | |||||||||||||||||
Equity method affiliates | [1],[6] | (103) | (116) | 74 | |||||||||||||||
Net current-period other comprehensive income (loss) | [1] | (590) | (1,073) | (682) | |||||||||||||||
Balance | [1] | (1,171) | (581) | 492 | |||||||||||||||
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member] | |||||||||||||||||||
Note 17 - Shareholders' Equity (Details) - Accumulated Other Comprehensive Income [Line Items] | |||||||||||||||||||
Balance | [1] | (709) | (428) | (820) | |||||||||||||||
Other comprehensive income before reclassifications | [1] | (59) | [2] | (172) | [3] | 283 | [4] | ||||||||||||
Amounts reclassified from accumulated other comprehensive income | [1],[5] | 105 | 18 | (10) | |||||||||||||||
Equity method affiliates | [1],[6] | 75 | (127) | 119 | |||||||||||||||
Net current-period other comprehensive income (loss) | [1] | 121 | (281) | 392 | |||||||||||||||
Balance | [1] | (588) | (709) | (428) | |||||||||||||||
Accumulated Net Investment Gain (Loss) Attributable to Parent [Member] | |||||||||||||||||||
Note 17 - Shareholders' Equity (Details) - Accumulated Other Comprehensive Income [Line Items] | |||||||||||||||||||
Balance | [1] | (15) | (14) | (16) | |||||||||||||||
Other comprehensive income before reclassifications | [1] | 4 | [3] | 1 | [4] | ||||||||||||||
Amounts reclassified from accumulated other comprehensive income | [1],[5] | 1 | 1 | (1) | |||||||||||||||
Equity method affiliates | [1],[6] | (6) | 2 | ||||||||||||||||
Net current-period other comprehensive income (loss) | [1] | 1 | (1) | 2 | |||||||||||||||
Balance | [1] | (14) | (15) | (14) | |||||||||||||||
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member] | |||||||||||||||||||
Note 17 - Shareholders' Equity (Details) - Accumulated Other Comprehensive Income [Line Items] | |||||||||||||||||||
Balance | [1] | (2) | (6) | 18 | |||||||||||||||
Other comprehensive income before reclassifications | [1] | (18) | [2] | 10 | [3] | 56 | [4] | ||||||||||||
Amounts reclassified from accumulated other comprehensive income | [1],[5] | (20) | (6) | (81) | |||||||||||||||
Equity method affiliates | [1],[6] | 2 | 1 | ||||||||||||||||
Net current-period other comprehensive income (loss) | [1] | (36) | 4 | (24) | |||||||||||||||
Balance | [1] | (38) | (2) | (6) | |||||||||||||||
AOCI Attributable to Parent [Member] | |||||||||||||||||||
Note 17 - Shareholders' Equity (Details) - Accumulated Other Comprehensive Income [Line Items] | |||||||||||||||||||
Balance | [1] | (1,307) | 44 | 356 | |||||||||||||||
Other comprehensive income before reclassifications | [1] | (564) | [2] | (979) | [3] | (416) | [4] | ||||||||||||
Amounts reclassified from accumulated other comprehensive income | [1],[5] | 86 | (123) | (92) | |||||||||||||||
Equity method affiliates | [1],[6] | (26) | (249) | 196 | |||||||||||||||
Net current-period other comprehensive income (loss) | [1] | (504) | (1,351) | (312) | |||||||||||||||
Balance | [1] | $ (1,811) | $ (1,307) | $ 44 | |||||||||||||||
|
Note 17 - Shareholders' Equity (Details) - Reclassifications Out of Accumulated Other Comprehensive Income (AOCI) by Component - USD ($) $ in Millions |
1 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||||||||||
Amortization of prior service credit | $ 6 | $ 6 | $ 5 | ||||||||
Reclassification out of Accumulated Other Comprehensive Income [Member] | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||||||||||
Amortization of net actuarial (loss) gain | [1],[2] | $ (168) | $ (29) | $ 15 | |||||||
Amortization of prior service credit | [1],[2] | 1 | 1 | ||||||||
[1] | (167) | (29) | 16 | ||||||||
[1] | 62 | 11 | (6) | ||||||||
[1] | (105) | (18) | 10 | ||||||||
[1] | (1) | (1) | 1 | ||||||||
Realized gains on designated hedges | [1] | 26 | 10 | 129 | |||||||
[1] | (6) | (4) | (48) | ||||||||
[1] | 20 | 6 | 81 | ||||||||
Total reclassifications for the period | [1] | (86) | 123 | 92 | |||||||
Reclassification out of Accumulated Other Comprehensive Income [Member] | Nonoperating Income (Expense) [Member] | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||||||||||
Foreign currency translation adjustment | [1] | 136 | |||||||||
Reclassification out of Accumulated Other Comprehensive Income [Member] | Other Income [Member] | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||||||||||
[1] | 136 | ||||||||||
Realized (losses) gains on investments | [1] | (1) | (1) | 1 | |||||||
Realized gains on designated hedges | [1] | 91 | |||||||||
Reclassification out of Accumulated Other Comprehensive Income [Member] | Sales [Member] | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||||||||||
Realized gains on designated hedges | [1] | 20 | 3 | ||||||||
Reclassification out of Accumulated Other Comprehensive Income [Member] | Cost of Sales [Member] | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||||||||||
Realized gains on designated hedges | [1] | $ 6 | $ 7 | $ 38 | |||||||
|
Note 18 - Earnings Per Common Share (Details) - Computation of Basic and Diluted Earnings Per Common Share - USD ($) $ / shares in Units, shares in Millions, $ in Millions |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 |
Sep. 30, 2015 |
Jun. 30, 2015 |
Mar. 31, 2015 |
Dec. 31, 2014 |
Sep. 30, 2014 |
Jun. 30, 2014 |
Mar. 31, 2014 |
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Note 18 - Earnings Per Common Share (Details) - Computation of Basic and Diluted Earnings Per Common Share [Line Items] | |||||||||||
Net income attributable to Corning Incorporated (in Dollars) | $ 224 | $ 212 | $ 496 | $ 407 | $ 988 | $ 1,014 | $ 169 | $ 301 | $ 1,339 | $ 2,472 | $ 1,961 |
Net income available to common stockholders - basic (in Dollars) | 1,241 | 2,378 | 1,961 | ||||||||
Net income available to common stockholders - diluted (in Dollars) | $ 1,339 | $ 2,472 | $ 1,961 | ||||||||
Weighted-average common shares outstanding - basic | 1,219 | 1,305 | 1,452 | ||||||||
Effect of dilutive securities: | |||||||||||
Weighted-average common shares outstanding - diluted | 1,343 | 1,427 | 1,462 | ||||||||
Basic earnings per common share (in Dollars per share) | $ 0.17 | $ 0.16 | $ 0.38 | $ 0.30 | $ 0.76 | $ 0.77 | $ 0.11 | $ 0.21 | $ 1.02 | $ 1.82 | $ 1.35 |
Diluted earnings per common share (in Dollars per share) | $ 0.17 | $ 0.15 | $ 0.36 | $ 0.29 | $ 0.70 | $ 0.72 | $ 0.11 | $ 0.20 | $ 1.00 | $ 1.73 | $ 1.34 |
Anti-dilutive potential shares excluded from diluted earnings per common share: | |||||||||||
Anti-dilutive potential shares excluded from diluted earnings per common share | 37 | 27 | 42 | ||||||||
Stock Compensation Plan [Member] | |||||||||||
Anti-dilutive potential shares excluded from diluted earnings per common share: | |||||||||||
Anti-dilutive potential shares excluded from diluted earnings per common share | 22 | 24 | 39 | ||||||||
Forward Contracts [Member] | |||||||||||
Anti-dilutive potential shares excluded from diluted earnings per common share: | |||||||||||
Anti-dilutive potential shares excluded from diluted earnings per common share | 15 | 3 | 3 | ||||||||
Convertible Preferred Stock, Series A [Member] | |||||||||||
Note 18 - Earnings Per Common Share (Details) - Computation of Basic and Diluted Earnings Per Common Share [Line Items] | |||||||||||
Less: Series A convertible preferred stock dividend (in Dollars) | $ 98 | $ 94 | |||||||||
Plus: Series A convertible preferred stock dividend (in Dollars) | $ 98 | $ 94 | |||||||||
Effect of dilutive securities: | |||||||||||
Effect of dilutive securities | 115 | 110 | |||||||||
Stock Options and Other Dilutive Securities [Member] | |||||||||||
Effect of dilutive securities: | |||||||||||
Effect of dilutive securities | 9 | 12 | 10 |
Note 19 - Share-based Compensation (Details) $ / shares in Units, shares in Millions, $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015
USD ($)
$ / shares
shares
|
Dec. 31, 2014
USD ($)
$ / shares
|
Dec. 31, 2013
USD ($)
$ / shares
|
|
Note 19 - Share-based Compensation (Details) [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant (in Shares) | shares | 72 | ||
Stock Compensation Plans Number of Years Taken to Calculate Forfeiture Rate | 15 years | ||
Allocated Share-based Compensation Expense | $ 46 | $ 58 | $ 54 |
In Money Options | $ 13 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value (in Dollars per share) | $ / shares | $ 7.99 | $ 8.29 | $ 5.02 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested in Period, Fair Value | $ 36 | $ 16 | $ 29 |
Proceeds from Stock Options Exercised | 102 | 116 | 85 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value | $ 48 | 69 | 55 |
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense | 0 | ||
Age of Retirement Eligibility | 55 | ||
Years of Historical Volatility Included in Most Recent Volatility | 15 years | ||
Employee Stock Option [Member] | |||
Note 19 - Share-based Compensation (Details) [Line Items] | |||
Allocated Share-based Compensation Expense | $ 14 | 22 | 25 |
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 10 years | ||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 7 | ||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 1 year 255 days | ||
Proceeds from Stock Options Exercised | $ 102 | ||
Restricted Stock [Member] | |||
Note 19 - Share-based Compensation (Details) [Line Items] | |||
Allocated Share-based Compensation Expense | 32 | 36 | 29 |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 27 | ||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 2 years 109 days | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value | $ 32 | $ 32 | $ 29 |
Minimum [Member] | |||
Note 19 - Share-based Compensation (Details) [Line Items] | |||
Stock Options Exercisable Period from Date of Grant | 1 year | ||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | 7 years 73 days | 7 years 73 days | 5 years 292 days |
Minimum [Member] | Restricted Stock [Member] | |||
Note 19 - Share-based Compensation (Details) [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 1 year | ||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | 1 year | ||
Maximum [Member] | |||
Note 19 - Share-based Compensation (Details) [Line Items] | |||
Stock Options Exercisable Period from Date of Grant | 5 years | ||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | 7 years 73 days | 7 years 73 days | 7 years 73 days |
Maximum [Member] | Restricted Stock [Member] | |||
Note 19 - Share-based Compensation (Details) [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 10 years | ||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | 10 years |
Note 19 - Share-based Compensation (Details) - Stock Options Outstanding $ / shares in Units, shares in Thousands, $ in Thousands |
12 Months Ended |
---|---|
Dec. 31, 2015
USD ($)
$ / shares
shares
| |
Stock Options Outstanding [Abstract] | |
Options outstanding as of December 31, 2014 | shares | 48,724 |
Options outstanding as of December 31, 2014 | $ / shares | $ 18.94 |
Granted | shares | 1,578 |
Granted | $ / shares | $ 21.48 |
Exercised | shares | (6,340) |
Exercised | $ / shares | $ 16.13 |
Forfeited and expired | shares | (1,224) |
Forfeited and expired | $ / shares | $ 20.78 |
Options outstanding as of December 31, 2015 | shares | 42,738 |
Options outstanding as of December 31, 2015 | $ / shares | $ 19.40 |
Options outstanding as of December 31, 2015 | 3 years 339 days |
Options outstanding as of December 31, 2015 | $ | $ 83,023 |
Options expected to vest as of December 31, 2015 | shares | 42,696 |
Options expected to vest as of December 31, 2015 | $ / shares | $ 19.40 |
Options expected to vest as of December 31, 2015 | 3 years 339 days |
Options expected to vest as of December 31, 2015 | $ | $ 82,992 |
Options exercisable as of December 31, 2015 | shares | 35,245 |
Options exercisable as of December 31, 2015 | $ / shares | $ 19.86 |
Options exercisable as of December 31, 2015 | 3 years 29 days |
Options exercisable as of December 31, 2015 | $ | $ 65,817 |
Note 19 - Share-based Compensation (Details) - Valuation Inputs for Option Grants Under Stock Option Plans |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Minimum [Member] | |||
Note 19 - Share-based Compensation (Details) - Valuation Inputs for Option Grants Under Stock Option Plans [Line Items] | |||
Expected volatility | 43.60% | 45.40% | 46.50% |
Weighted-average volatility | 43.60% | 45.40% | 46.60% |
Expected dividends | 1.92% | 1.90% | 2.35% |
Risk-free rate | 1.90% | 2.00% | 0.80% |
Average risk-free rate | 1.90% | 2.00% | 1.10% |
Expected term (in years) | 7 years 73 days | 7 years 73 days | 5 years 292 days |
Pre-vesting departure rate | 0.60% | 0.50% | 0.40% |
Maximum [Member] | |||
Note 19 - Share-based Compensation (Details) - Valuation Inputs for Option Grants Under Stock Option Plans [Line Items] | |||
Expected volatility | 44.90% | 46.20% | 47.40% |
Weighted-average volatility | 44.90% | 46.20% | 47.30% |
Expected dividends | 2.68% | 2.09% | 3.02% |
Risk-free rate | 2.10% | 2.20% | 2.20% |
Average risk-free rate | 2.10% | 2.20% | 2.20% |
Expected term (in years) | 7 years 73 days | 7 years 73 days | 7 years 73 days |
Pre-vesting departure rate | 0.60% | 0.50% | 4.10% |
Note 19 - Share-based Compensation (Details) - Non-Vested Time-Based Restricted Stock And Restricted Stock Units - Time-Based Restricted Stock and Restricted Stock Units [Member] shares in Thousands |
12 Months Ended |
---|---|
Dec. 31, 2015
$ / shares
shares
| |
Note 19 - Share-based Compensation (Details) - Non-Vested Time-Based Restricted Stock And Restricted Stock Units [Line Items] | |
Non-vested shares and share units at December 31, 2014 | shares | 5,737 |
Non-vested shares and share units at December 31, 2014 | $ / shares | $ 15.43 |
Granted | shares | 1,815 |
Granted | $ / shares | $ 21.49 |
Vested | shares | (2,238) |
Vested | $ / shares | $ 14.35 |
Forfeited | shares | (72) |
Forfeited | $ / shares | $ 21.11 |
Non-vested shares and share units at December 31, 2015 | shares | 5,242 |
Non-vested shares and share units at December 31, 2015 | $ / shares | $ 17.91 |
Note 20 - Reportable Segments (Details) $ in Millions |
3 Months Ended | 12 Months Ended | ||||
---|---|---|---|---|---|---|
Dec. 31, 2014
USD ($)
|
Jun. 30, 2014
USD ($)
|
Mar. 31, 2014
USD ($)
|
Dec. 31, 2015 |
Dec. 31, 2014
USD ($)
|
Dec. 31, 2013
USD ($)
|
|
Note 20 - Reportable Segments (Details) [Line Items] | ||||||
Restructuring Costs and Asset Impairment Charges (in Dollars) | $ 20 | $ 34 | $ 17 | $ 71 | $ 67 | |
Operating Segments [Member] | Display Technologies [Member] | ||||||
Note 20 - Reportable Segments (Details) [Line Items] | ||||||
Restructuring Costs and Asset Impairment Charges (in Dollars) | $ 28 | |||||
Operating Segments [Member] | Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | Display Technologies [Member] | ||||||
Note 20 - Reportable Segments (Details) [Line Items] | ||||||
Number of Customers Individually Accounting for 10% or More of Each Segment's Sales | 3 | |||||
Concentration Risk, Percentage | 62.00% | |||||
Operating Segments [Member] | Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | Optical Communications [Member] | ||||||
Note 20 - Reportable Segments (Details) [Line Items] | ||||||
Number of Customers Individually Accounting for 10% or More of Each Segment's Sales | 2 | |||||
Concentration Risk, Percentage | 22.00% | |||||
Operating Segments [Member] | Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | Environmental Technologies [Member] | ||||||
Note 20 - Reportable Segments (Details) [Line Items] | ||||||
Number of Customers Individually Accounting for 10% or More of Each Segment's Sales | 3 | |||||
Concentration Risk, Percentage | 86.00% | |||||
Operating Segments [Member] | Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | Specialty Materials [Member] | ||||||
Note 20 - Reportable Segments (Details) [Line Items] | ||||||
Number of Customers Individually Accounting for 10% or More of Each Segment's Sales | 3 | |||||
Concentration Risk, Percentage | 56.00% | |||||
Operating Segments [Member] | Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | Life Sciences [Member] | ||||||
Note 20 - Reportable Segments (Details) [Line Items] | ||||||
Number of Customers Individually Accounting for 10% or More of Each Segment's Sales | 2 | |||||
Concentration Risk, Percentage | 46.00% | |||||
Minimum [Member] | ||||||
Note 20 - Reportable Segments (Details) [Line Items] | ||||||
Number of Material Formulations | 150 |
Note 20 - Reportable Segments (Details) - Reportable Segments - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended | |||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 |
Sep. 30, 2015 |
Jun. 30, 2015 |
Mar. 31, 2015 |
Dec. 31, 2014 |
Sep. 30, 2014 |
Jun. 30, 2014 |
Mar. 31, 2014 |
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||||||||
Net sales | $ 2,231 | $ 2,272 | $ 2,343 | $ 2,265 | $ 2,404 | $ 2,540 | $ 2,482 | $ 2,289 | $ 9,111 | [1] | $ 9,715 | [1] | $ 7,819 | [1] | |||||||||||||
Depreciation | 1,130 | 1,167 | 971 | ||||||||||||||||||||||||
Amortization of purchased intangibles | 54 | 33 | 31 | ||||||||||||||||||||||||
Research, development and engineering expenses | 769 | 815 | 710 | ||||||||||||||||||||||||
Restructuring, impairment & other charges | 71 | 67 | |||||||||||||||||||||||||
Equity in earnings of affiliated companies | 104 | 39 | 62 | 94 | 23 | 95 | 62 | 86 | 299 | 266 | 547 | ||||||||||||||||
Income tax (provision) benefit | 55 | (6) | (110) | (86) | (349) | (395) | (172) | (180) | (147) | (1,096) | (512) | ||||||||||||||||
Net income (loss) | 224 | $ 212 | $ 496 | $ 407 | 988 | $ 1,014 | $ 169 | $ 301 | 1,339 | 2,472 | 1,961 | ||||||||||||||||
Investment in affiliated companies, at equity | 1,905 | 1,777 | 1,905 | 1,777 | |||||||||||||||||||||||
Operating Segments [Member] | |||||||||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||||||||
Net sales | 9,111 | 9,715 | 7,819 | ||||||||||||||||||||||||
Depreciation | [2] | 1,108 | 1,153 | 960 | |||||||||||||||||||||||
Amortization of purchased intangibles | 53 | 32 | 31 | ||||||||||||||||||||||||
Research, development and engineering expenses | [3] | 658 | 709 | 593 | |||||||||||||||||||||||
Restructuring, impairment & other charges | 15 | 68 | 51 | ||||||||||||||||||||||||
Equity in earnings of affiliated companies | 8 | 340 | [4] | ||||||||||||||||||||||||
Income tax (provision) benefit | (718) | (833) | (559) | ||||||||||||||||||||||||
Net income (loss) | [5] | 1,519 | 1,775 | 1,693 | |||||||||||||||||||||||
Investment in affiliated companies, at equity | 337 | 311 | 337 | 311 | 3,942 | ||||||||||||||||||||||
Segment assets | [6] | 14,074 | 14,256 | 14,074 | 14,256 | 14,691 | |||||||||||||||||||||
Capital expenditures | 1,059 | 1,045 | 819 | ||||||||||||||||||||||||
Display Technologies [Member] | Operating Segments [Member] | |||||||||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||||||||
Net sales | 3,086 | 3,851 | 2,545 | ||||||||||||||||||||||||
Depreciation | [2] | 605 | 676 | 481 | |||||||||||||||||||||||
Research, development and engineering expenses | [3] | 105 | 138 | 84 | |||||||||||||||||||||||
Restructuring, impairment & other charges | 45 | 7 | |||||||||||||||||||||||||
Equity in earnings of affiliated companies | (9) | (20) | 357 | [4] | |||||||||||||||||||||||
Income tax (provision) benefit | (499) | (608) | (337) | ||||||||||||||||||||||||
Net income (loss) | [5] | 1,095 | 1,396 | 1,293 | |||||||||||||||||||||||
Investment in affiliated companies, at equity | 43 | 63 | 43 | 63 | 3,666 | ||||||||||||||||||||||
Segment assets | [6] | 8,344 | 8,863 | 8,344 | 8,863 | 9,501 | |||||||||||||||||||||
Capital expenditures | 594 | 492 | 350 | ||||||||||||||||||||||||
Optical Communications [Member] | Operating Segments [Member] | |||||||||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||||||||
Net sales | 2,980 | 2,652 | 2,326 | ||||||||||||||||||||||||
Depreciation | [2] | 163 | 154 | 147 | |||||||||||||||||||||||
Amortization of purchased intangibles | 32 | 10 | 10 | ||||||||||||||||||||||||
Research, development and engineering expenses | [3] | 138 | 141 | 140 | |||||||||||||||||||||||
Restructuring, impairment & other charges | (1) | 17 | 12 | ||||||||||||||||||||||||
Equity in earnings of affiliated companies | [4] | 2 | |||||||||||||||||||||||||
Income tax (provision) benefit | (115) | (111) | (96) | ||||||||||||||||||||||||
Net income (loss) | [5] | 237 | 194 | 189 | |||||||||||||||||||||||
Investment in affiliated companies, at equity | 1 | 2 | 1 | 2 | 3 | ||||||||||||||||||||||
Segment assets | [6] | 1,783 | 1,737 | 1,783 | 1,737 | 1,654 | |||||||||||||||||||||
Capital expenditures | 171 | 145 | 105 | ||||||||||||||||||||||||
Environmental Technologies [Member] | Operating Segments [Member] | |||||||||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||||||||
Net sales | 1,053 | 1,092 | 919 | ||||||||||||||||||||||||
Depreciation | [2] | 125 | 119 | 120 | |||||||||||||||||||||||
Research, development and engineering expenses | [3] | 93 | 91 | 89 | |||||||||||||||||||||||
Restructuring, impairment & other charges | 1 | ||||||||||||||||||||||||||
Equity in earnings of affiliated companies | 2 | 1 | [4] | ||||||||||||||||||||||||
Income tax (provision) benefit | (78) | (89) | (63) | ||||||||||||||||||||||||
Net income (loss) | [5] | 161 | 178 | 127 | |||||||||||||||||||||||
Investment in affiliated companies, at equity | 32 | 32 | 32 | 32 | 31 | ||||||||||||||||||||||
Segment assets | [6] | 1,288 | 1,297 | 1,288 | 1,297 | 1,230 | |||||||||||||||||||||
Capital expenditures | 117 | 173 | 196 | ||||||||||||||||||||||||
Specialty Materials [Member] | Operating Segments [Member] | |||||||||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||||||||
Net sales | 1,107 | 1,205 | 1,170 | ||||||||||||||||||||||||
Depreciation | [2] | 112 | 113 | 137 | |||||||||||||||||||||||
Research, development and engineering expenses | [3] | 113 | 140 | 144 | |||||||||||||||||||||||
Restructuring, impairment & other charges | 16 | (1) | 19 | ||||||||||||||||||||||||
Equity in earnings of affiliated companies | [4] | 4 | |||||||||||||||||||||||||
Income tax (provision) benefit | (85) | (75) | (88) | ||||||||||||||||||||||||
Net income (loss) | [5] | 167 | 138 | 181 | |||||||||||||||||||||||
Investment in affiliated companies, at equity | 10 | ||||||||||||||||||||||||||
Segment assets | [6] | 1,407 | 1,288 | 1,407 | 1,288 | 1,333 | |||||||||||||||||||||
Capital expenditures | 88 | 104 | 62 | ||||||||||||||||||||||||
Life Sciences [Member] | Operating Segments [Member] | |||||||||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||||||||
Net sales | 821 | 862 | 851 | ||||||||||||||||||||||||
Depreciation | [2] | 60 | 60 | 57 | |||||||||||||||||||||||
Amortization of purchased intangibles | 20 | 22 | 21 | ||||||||||||||||||||||||
Research, development and engineering expenses | [3] | 23 | 22 | 20 | |||||||||||||||||||||||
Restructuring, impairment & other charges | 1 | 4 | |||||||||||||||||||||||||
Income tax (provision) benefit | (30) | (33) | (34) | ||||||||||||||||||||||||
Net income (loss) | [5] | 61 | 67 | 68 | |||||||||||||||||||||||
Segment assets | [6] | 514 | 553 | 514 | 553 | 551 | |||||||||||||||||||||
Capital expenditures | 32 | 30 | 51 | ||||||||||||||||||||||||
Other Segments [Member] | Operating Segments [Member] | |||||||||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||||||||
Net sales | 64 | 53 | 8 | ||||||||||||||||||||||||
Depreciation | [2] | 43 | 31 | 18 | |||||||||||||||||||||||
Amortization of purchased intangibles | 1 | ||||||||||||||||||||||||||
Research, development and engineering expenses | [3] | 186 | 177 | 116 | |||||||||||||||||||||||
Restructuring, impairment & other charges | 6 | 8 | |||||||||||||||||||||||||
Equity in earnings of affiliated companies | 17 | 18 | (24) | [4] | |||||||||||||||||||||||
Income tax (provision) benefit | 89 | 83 | 59 | ||||||||||||||||||||||||
Net income (loss) | [5] | (202) | (198) | (165) | |||||||||||||||||||||||
Investment in affiliated companies, at equity | 261 | 214 | 261 | 214 | 232 | ||||||||||||||||||||||
Segment assets | [6] | $ 738 | $ 518 | 738 | 518 | 422 | |||||||||||||||||||||
Capital expenditures | $ 57 | $ 101 | $ 55 | ||||||||||||||||||||||||
|
Note 20 - Reportable Segments (Details) - Reconciliation of Reportable Segment Net Income (Loss) to Consolidated Net Income - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended | ||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 |
Sep. 30, 2015 |
Jun. 30, 2015 |
Mar. 31, 2015 |
Dec. 31, 2014 |
Sep. 30, 2014 |
Jun. 30, 2014 |
Mar. 31, 2014 |
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||||||||||||
Net income (loss) | $ 224 | $ 212 | $ 496 | $ 407 | $ 988 | $ 1,014 | $ 169 | $ 301 | $ 1,339 | $ 2,472 | $ 1,961 | |||||
Unallocated amounts: | ||||||||||||||||
Net financing costs (1) | [1] | (111) | (113) | (66) | ||||||||||||
Share-based compensation expense | (46) | (58) | (54) | |||||||||||||
Exploratory research | (109) | (102) | (112) | |||||||||||||
Corporate contributions | (52) | (43) | (42) | |||||||||||||
Equity in earnings of affiliated companies, net of impairments (2) | [2] | 291 | 269 | 207 | ||||||||||||
Unrealized (loss) gain on foreign currency hedges related to translated earnings | (573) | 1,095 | 368 | |||||||||||||
Income tax benefit (provision) | 568 | (267) | (1) | |||||||||||||
Other corporate items | (148) | (84) | (32) | |||||||||||||
Reportable Segments [Member] | ||||||||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||||||||||||
Net income (loss) | 1,721 | 1,973 | 1,858 | |||||||||||||
Non Reportable Segments [Member] | ||||||||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||||||||||||
Net income (loss) | $ (202) | $ (198) | $ (165) | |||||||||||||
|
Note 20 - Reportable Segments (Details) - Reconciliation of Reportable Segment Net Assets to Consolidated Net Assets - USD ($) $ in Millions |
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Unallocated amounts: | ||||||||||||
Current assets (1) | [1] | $ 5,488 | $ 7,402 | $ 6,349 | ||||||||
Investments (2) | [2] | 1,638 | 1,490 | 1,595 | ||||||||
Property, plant and equipment, net (3) | [3] | 1,692 | 1,657 | 1,594 | ||||||||
Other non-current assets (4) | [4] | 5,655 | 5,258 | 4,249 | ||||||||
Total assets | 28,547 | 30,063 | 28,478 | |||||||||
Reportable Segments [Member] | ||||||||||||
Segment Reporting, Asset Reconciling Item [Line Items] | ||||||||||||
Total assets of reportable segments | 13,336 | 13,738 | 14,269 | |||||||||
Non Reportable Segments [Member] | ||||||||||||
Segment Reporting, Asset Reconciling Item [Line Items] | ||||||||||||
Non-reportable segments | $ 738 | $ 518 | $ 422 | |||||||||
|
Note 20 - Reportable Segments (Details) - Selected Financial Information On Product Lines and Reportable Segments - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended | ||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 |
Sep. 30, 2015 |
Jun. 30, 2015 |
Mar. 31, 2015 |
Dec. 31, 2014 |
Sep. 30, 2014 |
Jun. 30, 2014 |
Mar. 31, 2014 |
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
||||||
Revenue from External Customer [Line Items] | ||||||||||||||||
Revenues | $ 2,231 | $ 2,272 | $ 2,343 | $ 2,265 | $ 2,404 | $ 2,540 | $ 2,482 | $ 2,289 | $ 9,111 | [1] | $ 9,715 | [1] | $ 7,819 | [1] | ||
Operating Segments [Member] | ||||||||||||||||
Revenue from External Customer [Line Items] | ||||||||||||||||
Revenues | 9,111 | 9,715 | 7,819 | |||||||||||||
Operating Segments [Member] | Display Technologies [Member] | ||||||||||||||||
Revenue from External Customer [Line Items] | ||||||||||||||||
Revenues | 3,086 | 3,851 | 2,545 | |||||||||||||
Operating Segments [Member] | Optical Communications [Member] | ||||||||||||||||
Revenue from External Customer [Line Items] | ||||||||||||||||
Revenues | 2,980 | 2,652 | 2,326 | |||||||||||||
Operating Segments [Member] | Environmental Technologies [Member] | ||||||||||||||||
Revenue from External Customer [Line Items] | ||||||||||||||||
Revenues | 1,053 | 1,092 | 919 | |||||||||||||
Operating Segments [Member] | Specialty Materials [Member] | ||||||||||||||||
Revenue from External Customer [Line Items] | ||||||||||||||||
Revenues | 1,107 | 1,205 | 1,170 | |||||||||||||
Operating Segments [Member] | Life Sciences [Member] | ||||||||||||||||
Revenue from External Customer [Line Items] | ||||||||||||||||
Revenues | 821 | 862 | 851 | |||||||||||||
Operating Segments [Member] | Other Segments [Member] | ||||||||||||||||
Revenue from External Customer [Line Items] | ||||||||||||||||
Revenues | 64 | 53 | 8 | |||||||||||||
Operating Segments [Member] | Carrier Network [Member] | Optical Communications [Member] | ||||||||||||||||
Revenue from External Customer [Line Items] | ||||||||||||||||
Revenues | 2,194 | 2,036 | 1,782 | |||||||||||||
Operating Segments [Member] | Enterprise Network [Member] | Optical Communications [Member] | ||||||||||||||||
Revenue from External Customer [Line Items] | ||||||||||||||||
Revenues | 786 | 616 | 544 | |||||||||||||
Operating Segments [Member] | Automative and Other [Member] | Environmental Technologies [Member] | ||||||||||||||||
Revenue from External Customer [Line Items] | ||||||||||||||||
Revenues | 528 | 528 | 485 | |||||||||||||
Operating Segments [Member] | Diesel [Member] | Environmental Technologies [Member] | ||||||||||||||||
Revenue from External Customer [Line Items] | ||||||||||||||||
Revenues | 525 | 564 | 434 | |||||||||||||
Operating Segments [Member] | Corning Gorilla Glass [Member] | Specialty Materials [Member] | ||||||||||||||||
Revenue from External Customer [Line Items] | ||||||||||||||||
Revenues | 810 | 846 | 848 | |||||||||||||
Operating Segments [Member] | Advanced Optics and Other Specialty Glass [Member] | Specialty Materials [Member] | ||||||||||||||||
Revenue from External Customer [Line Items] | ||||||||||||||||
Revenues | 297 | 359 | 322 | |||||||||||||
Operating Segments [Member] | Labware [Member] | Life Sciences [Member] | ||||||||||||||||
Revenue from External Customer [Line Items] | ||||||||||||||||
Revenues | 512 | 536 | 529 | |||||||||||||
Operating Segments [Member] | Cell Culture Products [Member] | Life Sciences [Member] | ||||||||||||||||
Revenue from External Customer [Line Items] | ||||||||||||||||
Revenues | $ 309 | $ 326 | $ 322 | |||||||||||||
|
Note 20 - Reportable Segments (Details) - Information Concerning Principal Geographic Areas - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended | |||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 |
Sep. 30, 2015 |
Jun. 30, 2015 |
Mar. 31, 2015 |
Dec. 31, 2014 |
Sep. 30, 2014 |
Jun. 30, 2014 |
Mar. 31, 2014 |
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|||||||||
North America | |||||||||||||||||||
Net sales | $ 2,231 | $ 2,272 | $ 2,343 | $ 2,265 | $ 2,404 | $ 2,540 | $ 2,482 | $ 2,289 | $ 9,111 | [1] | $ 9,715 | [1] | $ 7,819 | [1] | |||||
Long- lived assets | [2] | 18,189 | 17,888 | 18,189 | 17,888 | 17,318 | |||||||||||||
UNITED STATES | |||||||||||||||||||
North America | |||||||||||||||||||
Net sales | [1] | 2,719 | 2,275 | 2,061 | |||||||||||||||
Long- lived assets | [2] | 8,241 | 7,998 | 8,241 | 7,998 | 7,170 | |||||||||||||
CANADA | |||||||||||||||||||
North America | |||||||||||||||||||
Net sales | [1] | 244 | 311 | 308 | |||||||||||||||
Long- lived assets | [2] | 144 | 144 | ||||||||||||||||
MEXICO | |||||||||||||||||||
North America | |||||||||||||||||||
Net sales | [1] | 37 | 35 | 23 | |||||||||||||||
Long- lived assets | [2] | 135 | 50 | 135 | 50 | 36 | |||||||||||||
North America [Member] | |||||||||||||||||||
North America | |||||||||||||||||||
Net sales | [1] | 3,000 | 2,621 | 2,392 | |||||||||||||||
Long- lived assets | [2] | 8,520 | 8,048 | 8,520 | 8,048 | 7,206 | |||||||||||||
JAPAN | |||||||||||||||||||
North America | |||||||||||||||||||
Net sales | [1] | 440 | 608 | 621 | |||||||||||||||
Long- lived assets | [2] | 1,160 | 1,311 | 1,160 | 1,311 | 1,548 | |||||||||||||
TAIWAN, PROVINCE OF CHINA | |||||||||||||||||||
North America | |||||||||||||||||||
Net sales | [1] | 841 | 1,092 | 1,376 | |||||||||||||||
Long- lived assets | [2] | 2,301 | 2,005 | 2,301 | 2,005 | 2,277 | |||||||||||||
CHINA | |||||||||||||||||||
North America | |||||||||||||||||||
Net sales | [1] | 1,869 | 1,893 | 1,916 | |||||||||||||||
Long- lived assets | [2] | 1,036 | 1,115 | 1,036 | 1,115 | 1,218 | |||||||||||||
KOREA, REPUBLIC OF | |||||||||||||||||||
North America | |||||||||||||||||||
Net sales | [1] | 1,501 | 1,882 | 96 | |||||||||||||||
Long- lived assets | [2] | 3,552 | 3,595 | 3,552 | 3,595 | 3,234 | |||||||||||||
Other Asia Pacific [Member] | |||||||||||||||||||
North America | |||||||||||||||||||
Net sales | [1] | 331 | 308 | 278 | |||||||||||||||
Long- lived assets | [2] | 98 | 109 | 98 | 109 | 127 | |||||||||||||
Asia Pacific [Member] | |||||||||||||||||||
North America | |||||||||||||||||||
Net sales | [1] | 4,982 | 5,783 | 4,287 | |||||||||||||||
Long- lived assets | [2] | 8,147 | 8,135 | 8,147 | 8,135 | 8,404 | |||||||||||||
GERMANY | |||||||||||||||||||
North America | |||||||||||||||||||
Net sales | [1] | 326 | 397 | 337 | |||||||||||||||
Long- lived assets | [2] | 189 | 217 | 189 | 217 | 171 | |||||||||||||
FRANCE | |||||||||||||||||||
North America | |||||||||||||||||||
Net sales | [1] | 90 | 81 | 79 | |||||||||||||||
Long- lived assets | [2] | 263 | 277 | 263 | 277 | 287 | |||||||||||||
UNITED KINGDOM | |||||||||||||||||||
North America | |||||||||||||||||||
Net sales | [1] | 164 | 187 | 165 | |||||||||||||||
Long- lived assets | [2] | 47 | 47 | 47 | 47 | 6 | |||||||||||||
Other Europe [Member] | |||||||||||||||||||
North America | |||||||||||||||||||
Net sales | [1] | 311 | 369 | 280 | |||||||||||||||
Long- lived assets | [2] | 987 | 1,109 | 987 | 1,109 | 1,147 | |||||||||||||
Europe [Member] | |||||||||||||||||||
North America | |||||||||||||||||||
Net sales | [1] | 891 | 1,034 | 861 | |||||||||||||||
Long- lived assets | [2] | 1,486 | 1,650 | 1,486 | 1,650 | 1,611 | |||||||||||||
BRAZIL | |||||||||||||||||||
North America | |||||||||||||||||||
Net sales | [1] | 55 | 67 | 77 | |||||||||||||||
Long- lived assets | [2] | 36 | 36 | 36 | 36 | 66 | |||||||||||||
Other Latin America [Member] | |||||||||||||||||||
North America | |||||||||||||||||||
Net sales | 34 | [1] | 35 | [2] | 37 | [1],[2] | |||||||||||||
Long- lived assets | [1] | 6 | |||||||||||||||||
Latin America [Member] | |||||||||||||||||||
North America | |||||||||||||||||||
Net sales | [1] | 89 | 102 | 114 | |||||||||||||||
Long- lived assets | [2] | $ 36 | 36 | 36 | 36 | 72 | |||||||||||||
All Other [Member] | |||||||||||||||||||
North America | |||||||||||||||||||
Net sales | $ 149 | [1] | 175 | [2] | 165 | [2] | |||||||||||||
Long- lived assets | [1] | $ 19 | $ 19 | $ 25 | |||||||||||||||
|
Schedule II - Valuation Accounts and Reserves (Details) - Valuation Accounts and Reserves - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Allowance for Doubtful Accounts [Member] | |||
Valuation Allowance [Line Items] | |||
Balance at beginning of period | $ 47 | $ 28 | $ 26 |
Additions | 1 | 19 | 2 |
Balance at end of period | 48 | 47 | 28 |
Valuation Allowance of Deferred Tax Assets [Member] | |||
Valuation Allowance [Line Items] | |||
Balance at beginning of period | 298 | 286 | 210 |
Additions | 30 | 186 | 80 |
Net deductions and other | 90 | 174 | 4 |
Balance at end of period | 238 | 298 | 286 |
Accumulated Amortization of Purchased Intangible Assets [Member] | |||
Valuation Allowance [Line Items] | |||
Balance at beginning of period | 216 | 185 | 154 |
Additions | 49 | 31 | 31 |
Balance at end of period | 265 | 216 | 185 |
Business Restructuring Reserves [Member] | |||
Valuation Allowance [Line Items] | |||
Balance at beginning of period | 44 | 44 | 42 |
Additions | 49 | 41 | |
Net deductions and other | 41 | 49 | 39 |
Balance at end of period | $ 3 | $ 44 | $ 44 |
Quarterly Operating Results (Details) - Quarterly Operating Results - USD ($) $ / shares in Units, $ in Millions |
3 Months Ended | 12 Months Ended | ||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 |
Sep. 30, 2015 |
Jun. 30, 2015 |
Mar. 31, 2015 |
Dec. 31, 2014 |
Sep. 30, 2014 |
Jun. 30, 2014 |
Mar. 31, 2014 |
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
||||||
Quarterly Operating Results [Abstract] | ||||||||||||||||
Net sales | $ 2,231 | $ 2,272 | $ 2,343 | $ 2,265 | $ 2,404 | $ 2,540 | $ 2,482 | $ 2,289 | $ 9,111 | [1] | $ 9,715 | [1] | $ 7,819 | [1] | ||
Gross margin | 857 | 892 | 975 | 929 | 996 | 1,089 | 1,032 | 935 | 3,653 | 4,052 | 3,324 | |||||
Restructuring, impairment and other charges | 20 | 34 | 17 | 71 | 67 | |||||||||||
Equity in earnings of affiliated companies | 104 | 39 | 62 | 94 | 23 | 95 | 62 | 86 | 299 | 266 | 547 | |||||
Provision for income taxes | 55 | (6) | (110) | (86) | (349) | (395) | (172) | (180) | (147) | (1,096) | (512) | |||||
Net income attributable to Corning Incorporated | $ 224 | $ 212 | $ 496 | $ 407 | $ 988 | $ 1,014 | $ 169 | $ 301 | $ 1,339 | $ 2,472 | $ 1,961 | |||||
Basic earnings per common share (in Dollars per share) | $ 0.17 | $ 0.16 | $ 0.38 | $ 0.30 | $ 0.76 | $ 0.77 | $ 0.11 | $ 0.21 | $ 1.02 | $ 1.82 | $ 1.35 | |||||
Diluted earnings per common share (in Dollars per share) | $ 0.17 | $ 0.15 | $ 0.36 | $ 0.29 | $ 0.70 | $ 0.72 | $ 0.11 | $ 0.20 | $ 1.00 | $ 1.73 | $ 1.34 | |||||
|
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