Debt

12 Months Ended

Dec. 31, 2019

11.Debt

(In millions)



	December 31,
	2019		2018

Current portion of long-term debt	$	11	$	4

Long-term debt
Debentures, 4.25%, due 2020			$	291
Debentures, 8.875%, due 2021	$	64		65
Debentures, 2.90%, due 2022		374		373
Debentures, 3.70%, due 2023		249		249
Medium-term notes, average rate 7.66%, due through 2023		45		45
Debentures, 7.00%, due 2024		100		100
Debentures, 3.9%, due 2049		395
Debentures, 5.45%, due 2079		1,085
Yen-denominated Debentures, 0.698%, due 2024		192		191
Yen-denominated Debentures, 0.722%, due 2025		91		90
Yen-denominated Debentures, 0.992%, due 2027		430		426
Yen-denominated Debentures, 1.043%, due 2028		278		276
Yen-denominated Debentures, 1.153%, due 2031		285
Yen-denominated Debentures, 1.513%, due 2039		54
Debentures, 6.85%, due 2029		163		164
Yen-denominated Debentures, 1.219%, due 2030		227		226
Debentures, callable, 7.25%, due 2036		249		248
Debentures, 4.70%, due 2037		295		295
Yen-denominated Debentures, 1.583%, due 2037		91		91
Debentures, 5.75%, due 2040		395		395
Debentures, 4.75%, due 2042		496		496
Debentures, 5.35%, due 2048		543		543
Debentures, 4.375%, due 2057		742		742
Debentures, 5.85%, due 2068		296		296
Financing Leases, average discount rate 5.47%, due through 2044		280
Other, average rate 4.27%, due through 2043		321		396
Total long-term debt		7,740		5,998
Less current portion of long-term debt		11		4
Long-term debt	$	7,729	$	5,994

Corning did not have outstanding commercial paper at December 31, 2019 and 2018.

In the third quarter of 2018, Corning amended and restated its revolving credit agreement (the “Revolving Credit Agreement”). The Revolving Credit Agreement provides a committed $1.5 billion unsecured multi-currency line of credit and expires August 15, 2023. At December 31, 2019, there were no outstanding amounts under the Revolving Credit Agreement.

Based on borrowing rates currently available to us for loans with similar terms and maturities, the fair value of long-term debt was $8.5 billion and $6.0 billion at December 31, 2019 and 2018, respectively. 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.

11.Debt (continued)

The following table shows debt maturities by year at December 31, 2019 (in millions)*:



2020		2021		2022		2023		2024		Thereafter
$	11	$	77	$	390	$	432	$	316	$	6,569

*Excludes interest rate swap gains, bond discounts and deferred expenses.

Debt Issuances and Retirements

2019

In the third quarter of 2019, Corning issued two Japanese yen-denominated debt securities (the “Notes”), as follows:

¥31.3 billion 1.153% senior unsecured notes with a maturity of 12 years; and

¥5.9 billion 1.513% senior unsecured notes with a maturity of 20 years.

The proceeds from the Notes were received in Japanese yen and converted to U.S. dollars on the date of issuance. The net proceeds received in U.S. dollars, after deducting offering expenses, were approximately $349 million and will be used for general corporate purposes. Payments of principal and interest on the Notes will be in Japanese yen, or should yen be unavailable due to circumstances beyond Corning’s control, a U.S. dollar equivalent.

In the fourth quarter of 2019, Corning issued two U.S. dollar-denominated debt securities (the “Notes”), as follows:

$400 million 3.90% senior unsecured notes with a maturity of 30 years; and

$1.1 billion 5.45% senior unsecured notes with a maturity of 60 years.

The net proceeds, after deducting offering expenses, were approximately $1.5 billion and will be used for general corporate purposes. We can redeem these notes at any time, subject to certain terms and conditions.

In the fourth quarter of 2019, Corning redeemed $300 million of 4.25% notes due in 2020, paying a premium of $4.7 million by exercising our make-whole call. The bond redemption resulted in an $8.4 million loss during the same quarter.

2018

In the second quarter of 2018, Corning issued three Japanese yen-denominated debt securities (the “Notes”), as follows:

¥10 billion 0.722% senior unsecured notes with a maturity of 7 years;

¥30.5 billion 1.043% senior unsecured notes with a maturity of 10 years; and

¥25 billion 1.219% senior unsecured notes with a maturity of 12 years.

The proceeds from the Notes were received in Japanese yen and converted to U.S. dollars on the date of issuance. The net proceeds received in U.S. dollars, after deducting offering expenses, were $596 million. Payments of principle and interest on the Notes will be in Japanese yen, or should yen be unavailable due to circumstances beyond Corning’s control, a U.S. dollar equivalent. The net proceeds of $596 million will be used for general corporate purposes.

11.Debt (continued)

In the fourth quarter of 2018, Corning issued three unsecured long-term notes as follows:

$50 million 4.70% senior unsecured notes with a maturity of 19 years;

$550 million 5.35% senior unsecured notes with a maturity of 30 years; and

$300 million 5.85% senior unsecured notes with a maturity of 50 years.

The net proceeds of $889 million will be used for general corporate purposes. We can redeem these notes at any time, subject to certain terms and conditions.

In the fourth quarter of 2018, Corning redeemed $250 million of 6.625% Notes due in 2019, paying a nominal call premium. The bond redemption incurred an insignificant loss during the fourth quarter of 2018.

On a quarterly basis, Corning will recognize the transaction gains and losses resulting from changes in the JPY/USD exchange rate in the Other expense, net line of the consolidated statements of income (loss). Cash proceeds from the offerings and payments for debt issuance costs are disclosed as financing activities, and cash payments to bondholders for interest will be disclosed as operating activities, in the consolidated statements of cash flows.