Note 2 - Restructuring, Impairment and Other Charges and Credits

9 Months Ended

Sep. 30, 2021

Notes to Financial Statements

Restructuring and Related Activities Disclosure [Text Block]

2. Restructuring, Impairment and Other Charges and Credits 

2021

There was no material restructuring, impairment and other charges and credits activity for the first nine months of 2021.  As of September 30, 2021, Corning had unpaid severance liabilities of $17 million, and payment is expected to be complete in less than twelve months. 

2020

In the first nine months of 2020, and in response to uncertain global economic conditions, Corning undertook actions to transform the Company’s cost structure and improve operational efficiency. 

During the three and nine months ended September 30, 2020, $171 million and $733 million were recorded, respectively, in restructuring, impairment and other charges and credits. Severance charges of $6 million and $141 million, respectively, were primarily related to a reduction in workforce to facilitate realignment of capacity in the Asia regions for our Display Technologies segment, optimize our Optical Communications segment and certain corporate costs. Asset impairment losses of $22 million and $217 million, respectively, were incurred for an asset group related to the reassessment of research and development programs within "All Other".  Charges of $143 million and $375 million, respectively, primarily included accelerated depreciation, asset disposals and other related exit costs in our Display Technologies and Specialty Materials segments.

For the three and nine months ended September 30, 2020, total restructuring, impairment and other charges and credits were reflected on the consolidated statements of income as follows:

	Three months ended
	September 30, 2020
			Selling,		Research,
			general		development
			and		and
	Gross		administrative		engineering
	margin (1)		expenses		expenses		Other		Total
Severance	$	3	$	3					$	6
Asset impairment				6	$	16				22
Capacity realignment		95				1				96
Other charges and credits		26		12		1	$	8		47
Total restructuring, impairment and other charges and credits	$	124	$	21	$	18	$	8	$	171

⁽¹⁾ Activity reflected in cost of sales.

	Nine months ended
	September 30, 2020
			Selling,		Research,
			general		development
			and		and
	Gross		administrative		engineering
	margin (1)		expenses		expenses		Other		Total
Severance	$	79	$	34	$	28			$	141
Asset impairment				6		211				217
Capacity realignment		243				2				245
Other charges and credits		61		51		2	$	16		130
Total restructuring, impairment and other charges and credits	$	383	$	91	$	243	$	16	$	733

⁽¹⁾ Activity reflected in cost of sales.