Restructuring, Impairment and Other Charges (Tables)

9 Months Ended

Sep. 30, 2020

Restructuring, Impairment and Other Charges and Credits [Abstract]

Restructuring, Impairment, and Other Charges and Credits

During the three and nine months ended September 30, 2020 and 2019, the following restructuring, impairment and other charges and credits were recorded (in millions):

```
	Three months ended				Nine months ended
	September 30,				September 30,
	2020		2019		2020		2019
Severance	$	6	$	18	$	141	$	25
Asset impairment		22				217
Capacity realignment		96		107		245		168
Other charges and credits		47		23		130		29
Total restructuring, impairment and other charges and credits	$	171	$	148	$	733	$	222

Severance

In the second quarter of 2020, the Company implemented a corporate-wide workforce reduction program. Severance charges were primarily incurred to facilitate realignment of capacity in the Asia regions for the Display Technologies segment, optimize the Optical Communications segment and contain corporate costs. For the three months and nine months ended September 30, 2020, severance charges were $6 million and $141 million, respectively. As of September 30, 2020, and December 31, 2019, the unpaid severance liabilities of $60 million and $44 million are expected to be substantially completed within the next twelve months.

Asset Impairment

Corning incurred a long-lived asset impairment loss for an asset group related to the reassessment and reprioritization of research and development programs within “All Other”. Given the current economic environment and market opportunities, Corning has rescoped and significantly reduced its investment in these research and development programs. Corning performed the impairment analysis for the long-lived asset group using discounted cash flow projections and recorded a pre-tax asset impairment loss of $195 million in the second quarter of 2020. During the third quarter of 2020, the Company further reduced investments in these research and development programs and reassessed the business plans. As a result, an additional impairment loss of $22 million was recorded, inclusive of an insignificant amount of goodwill, to reduce the book value to the fair value of the asset group, which resulted in a total pre-tax asset impairment loss of $217 million for the nine months ended September 30, 2020.

Capacity Realignment

Capacity realignment for the three and nine months ended September 30, 2020, primarily includes accelerated depreciation and asset disposals associated with the exit of certain facilities and other exit activities in the Display Technologies and Specialty Materials business segments. Capacity realignment for the three and nine months ended September 30, 2019, is primarily comprised of accelerated depreciation associated with the exit of certain facilities in the Display Technologies segment.

‎

The following tables present the impact and respective location of total restructuring, impairment, and other charges and credits on the consolidated statements of income (in millions):

	Three months ended										Three months ended
	September 30, 2020										September 30, 2019
			Selling,		Research,								Selling,		Research,
			general		development								general		development
			and		and								and		and
	Gross		admin.		engineering						Gross		admin.		engineering
	margin (1)		expenses		expenses		Other		Total		margin (1)		expenses		expenses		Other		Total
Severance	$	3	$	3					$	6	$	9	$	6	$	3			$	18
Asset impairment				6	$	16				22
Capacity realignment		95				1				96		94				13				107
Other charges and credits		26		12		1	$	8		47		14		5			$	4		23
Total restructuring, ‎    impairment and ‎    other charges and credits	$	124	$	21	$	18	$	8	$	171	$	117	$	11	$	16	$	4	$	148

(1)Activity reflected in cost of sales.

	Nine months ended										Nine months ended
	September 30, 2020										September 30, 2019
			Selling,		Research,								Selling,		Research,
			general		development								general		development
			and		and								and		and
	Gross		admin.		engineering						Gross		admin.		engineering
	margin (1)		expenses		expenses		Other		Total		margin (1)		expenses		expenses		Other		Total
Severance	$	79	$	34	$	28			$	141	$	10	$	12	$	3			$	25
Asset impairment				6		211				217
Capacity realignment		243				2				245		155				13				168
Other charges and credits		61		51		2	$	16		130		47		5			$	(23)		29
Total restructuring, ‎    impairment and ‎    other charges and credits	$	383	$	91	$	243	$	16	$	733	$	212	$	17	$	16	$	(23)	$	222

(1)Activity reflected in cost of sales.