Note 5 - Income Taxes

3 Months Ended

Mar. 31, 2021

Notes to Financial Statements

Income Tax Disclosure [Text Block]

5. Income Taxes

The (provision) benefit for income taxes and the related effective income tax rates are as follows (in millions):

	Three months ended
	March 31,
	2021			2020
(Provision) benefit for income taxes	$	(226	)	$	12
Effective tax rate		27.4	%		11.1	%

For the three months ended March 31, 2021, the effective income tax rate differed from the United States (“U.S.”) statutory rate of 21%, primarily due to adjustments to our permanently reinvested foreign income position and tax reform items.

For the three months ended March 31, 2020, the effective income tax rate differed from the U.S. statutory rate of 21% primarily due to an adjustment to our permanently reinvested foreign income position, foreign valuation allowances on deferred tax assets, and certain non-deductible expenses for tax purposes.

Corning Precision Materials is currently appealing certain tax assessments and tax refund claims for tax years 2010 through 2018. The Company is required to deposit the disputed tax amounts with the South Korean government as a condition of its appeal of any tax assessments. Corning believes that it is more likely than not we will prevail in the appeals process.  As of March 31, 2021 and December 31, 2020, non-current receivables of $358 million and $365 million, respectively, were recorded related to the appeals.