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Note 14 - Commitments, Contingencies, and Guarantees
 12 Months Ended
Dec. 31, 2015
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies Disclosure [Text Block]
14.      Commitments, Contingencies and Guarantees

The amounts of our obligations follow (in millions):

     
Amount of commitment and contingency expiration per period
 
Total
 
Less than
1 year
 
1 to 3
years
 
3 to 5
years
 
5 years and
thereafter
Performance bonds and guarantees
$
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.

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):

 
2016
 
2017
 
2018
 
2019
 
2020
 
2021 and
thereafter
                       
 
$49
 
$58
 
$52
 
$41
 
$36
 
$337

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.