Note 7 - Leases

12 Months Ended

Dec. 31, 2021

Notes to Financial Statements

Lessee, Operating And Finance Leases [Text Block]

Corning has operating and finance leases for real estate, vehicles, and equipment.

The following table shows components of lease expense (in millions):

	Year ended December 31,
	2021		2020
Finance:
Depreciation of right-of-use assets	$	17	$	15
Interest on lease liabilities		8		7
Total finance lease expense	$	25	$	22
Operating lease expense	$	139	$	133
Variable lease expense		59		41
Short-term lease expense		2		4
Total lease expense	$	225	$	200

The following table shows components of cash paid for amounts included in the measurement of lease liabilities (in millions) ⁽¹⁾:

	December 31,
	2021		2020
Finance:
Principal	$	13	$	10
Interest		8		7
Total finance lease payments	$	21	$	17
Operating lease payments	$	134	$	121
Total lease payments	$	155	$	138

(1) Principle payments for finance leases have been classified as an investing outflow, and cash payments for operating leases, along with interest payments for finance leases, have been classified as an operating outflow on the consolidated statements of cash flows.  

Supplemental balance sheet information related to leases was as follows (in millions, except lease term and discount rate):

	December 31,
	2021			2020
Operating Leases:
Operating lease right-of-use assets, net (1)	$	741		$	680
Other current liabilities	$	94		$	96
Operating lease liabilities (2)		691			633
Total operating lease liabilities	$	785		$	729
Finance Leases:
Property and equipment, at cost	$	200		$	184
Accumulated depreciation		(40	)		(27	)
Property and equipment, net	$	160		$	157
Current portion of long-term debt	$	15		$	10
Long-term debt		168			163
Total finance lease liabilities	$	183		$	173

(1) Included in other assets.

(2) Included in other liabilities.

The weighted average remaining lease terms and weighted average discount rates for operating and finance leases, respectively, are 12.9 years and 15.0 years and 4.0% and 4.4%, respectively.

As of December 31, 2021, maturities of lease liabilities are as follows (in millions):

	2022		2023		2024		2025		2026		After 2026		Gross Total		Imputed Discount			Total
Operating leases	$	103	$	110	$	97	$	85	$	78	$	553	$	1,026	$	(241	)	$	785
Finance leases		22		27		21		15		32		142		259		(76	)		183

As of December 31, 2021, Corning had additional operating leases, primarily for new production facilities, that have not yet commenced or been recorded, of approximately $122 million on an undiscounted basis. These operating leases will commence in fiscal years 2022 and 2023 with lease terms between 10 and 20 years.