Note 3 - Income Taxes

3 Months Ended

Mar. 31, 2023

Notes to Financial Statements

Income Tax Disclosure [Text Block]

3. Income Taxes

The following table presents the provision for income taxes and the related effective tax rate (in millions, except percentages):

	Three months ended
	March 31,
	2023			2022
Provision for income taxes	$	(37	)	$	(180	)
Effective tax rate		16.2	%		23.0	%

For the three months ended March 31, 2023, the effective tax rate differed from the United States (“U.S.”) statutory rate of 21%, primarily due to differences arising from foreign earnings and a net benefit due to foreign derived intangible income.  For the three months ended March 31, 2022, the effective tax rate differed from the U.S. statutory rate of 21%, primarily due to changes in tax reserves and the impact of changes in tax legislation, partially offset by differences arising from foreign earnings.

Corning Precision Materials, a South Korean subsidiary, is currently appealing certain tax assessments and tax refund claims for tax years 2010 through 2019. 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 the Company will prevail in the appeals process. The non-current receivable balance was $358 million and $349 million as of March 31, 2023 and December 31, 2022, respectively, for the amount on deposit with the South Korean government.