Note 10 - Debt

12 Months Ended

Dec. 31, 2023

Notes to Financial Statements

Debt Disclosure [Text Block]

10.  Debt

Debt consisted of the following (in millions):

	December 31,
	2023		2022
Long-term debt
Medium-term notes, average rate 0.70%, due through 2024	$	149	$	45
Debentures, 6.85%, due 2029		157		159
Debentures, callable, 7.25%, due 2036		249		249
Debentures, 4.70%, due 2037		296		296
Debentures, 5.75%, due 2040		396		396
Debentures, 4.75%, due 2042		497		496
Debentures, 5.35%, due 2048		545		544
Debentures, 3.90%, due 2049		395		395
Debentures, 4.375%, due 2057		743		743
Debentures, 5.85%, due 2068		297		297
Debentures, 5.45%, due 2079		1,086		1,086
Yen-denominated debentures, 0.698%, due 2024				160
Yen-denominated debentures, 0.722%, due 2025		71		76
Yen-denominated debentures, 0.992%, due 2027		263		358
Yen-denominated debentures, 1.043%, due 2028		181		232
Yen-denominated debentures, 1.219%, due 2030		177		190
Yen-denominated debentures, 1.153%, due 2031		221		237
Yen-denominated debentures, 1.583%, due 2037		71		76
Yen-denominated debentures, 1.513%, due 2039		41		45
Euro-denominated notes, 3.875%, due 2026		330
Euro-denominated notes, 4.125%, due 2031		602
Financing Leases, average discount rate 4.6%, due through 2043		195		190
Other, average rate 3.85%, due through 2043		564		641
Total long-term debt, including current portion		7,526		6,911
Less current portion of long-term debt		320		224
Long-term debt	$	7,206	$	6,687

Based on borrowing rates currently available to us for loans with similar terms and maturities, the fair value of long-term debt was $7.0 billion and $6.1 billion as of  December 31, 2023 and 2022, respectively, compared to recorded book values of $7.2 billion and $6.7 billion as of  December 31, 2023 and 2022, respectively. The Company measures the fair value of its long-term debt using Level 2 inputs based primarily on current market yields for its existing debt traded in the secondary market.

Corning did not have outstanding commercial paper as of  December 31, 2023 and 2022.

During 2022, Corning amended and restated its existing revolving credit agreement, which provides a committed $1.5 billion unsecured multi-currency line of credit, primarily to extend the term to 2027. There were no outstanding amounts under this facility as of December 31, 2023 and 2022. In addition, Corning had a 25 billion Japanese yen liquidity facility, which was schedule to mature in 2025. In the fourth quarter of 2023, the 25 billion Japanese yen liquidity facility was terminated. There were never any amounts outstanding under this facility.

10.  Debt (Continued)

Corning is the obligor to Chinese yuan-denominated unsecured variable rate loan facilities, whose proceeds are used for capital investment and general corporate purposes. As of December 31, 2023 and 2022, amounts outstanding under these facilities totaled $293 million and $352 million, respectively, and these facilities had variable interest rates ranging from 3.2% to 4.1% and 3.3% to 4.3%, respectively, and maturities ranging from 2024 to 2032.  As of December 31, 2023, Corning had 779 million Chinese yuan of unused capacity, equivalent to approximately $110 million.

The following table presents debt maturities by year as of  December 31, 2023 (in millions) ⁽¹⁾:

2024		2025		2026		2027		2028		Thereafter
$	320	$	188	$	397	$	312	$	210	$	6,203

(1) Excludes impact of an interest rate swap, bond discounts and deferred expenses.

Debt Issuances and Redemptions

In the fourth quarter of 2023, Corning repurchased ¥14.7 billion (equivalent to $100 million) of ¥9.8 billion 0.992% notes due 2027 and ¥4.9 billion 1.043% notes due 2028.  The repurchase transactions resulted in an insignificant gain in the current period.

On May 15, 2023, the Company issued €300 million 3.875% Notes due 2026 ( “2026 Notes”) and  €550 million 4.125% Notes due 2031 ( “2031 Notes”). The proceeds from the 2026 Notes and 2031 Notes were received in euros and converted to U.S. dollars on the date of issuance.  The net proceeds received were approximately $918 million and will be used for general corporate purposes. As of  December 31, 2023, the U.S. dollar equivalent carrying value of the euro-denominated long-term debt was $932 million.

The full amounts of the 2026 Notes and 2031 Notes have been designated as net investment hedges against our investments in certain European subsidiaries with euro functional currencies.  Refer to Note 13 (Financial Instruments) for additional information.

During the year ended December 31, 2021, Corning redeemed $375 million of 2.9% debentures due in 2022 and $250 million of 3.7% debentures due in 2023, paying premiums of $10 million and $19 million, respectively, by exercising the make-whole call.  The bond redemptions resulted in an $11 million and $20 million loss, respectively. Losses on bond redemption have been recorded within other income, net in the consolidated statements of income.