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Operating Segments (Tables)
9 Months Ended
Sep. 30, 2011
Operating Segments 
Schedule Of Operating Segments Information By Segment
 
Display
Technologies
  
Telecom-
munications
  
Environmental
Technologies
  
Specialty
Materials
  
Life
Sciences
  
All
Other
  
Total
Three months ended September 30, 2011
                                        
Net sales
$
815 
  
$
560 
  
$
247 
  
$
299 
  
$
153 
  
$
1 
  
$
2,075 
Depreciation (1)
$
131 
  
$
31 
  
$
27 
  
$
41 
  
$
8 
  
$
3 
  
$
241 
Amortization of purchased intangibles
      
$
2 
              
$
1 
        
$
3 
Research, development and engineering expenses (2)
$
21 
  
$
29 
  
$
27 
  
$
35 
  
$
3 
  
$
22 
  
$
137 
Equity in earnings of affiliated companies
$
222 
              
$
5 
        
$
4 
  
$
231 
Income tax (provision) benefit
$
(118)
  
$
(30)
  
$
(15)
  
$
(16)
  
$
(10)
  
$
9 
  
$
(180)
Net income (loss) (3)
$
593 
  
$
82 
  
$
32 
  
$
38 
  
$
21 
  
$
(17)
  
$
749 
                                         
Three months ended September 30, 2010
                                        
Net sales
$
645 
  
$
464 
  
$
208 
  
$
159 
  
$
125 
  
$
1 
  
$
1,602 
Depreciation (1)
$
129 
  
$
27 
  
$
26 
  
$
20 
  
$
8 
  
$
3 
  
$
213 
Amortization of purchased intangibles
                        
$
2 
        
$
2 
Research, development and engineering expenses (2)
$
22 
  
$
27 
  
$
24 
  
$
25 
  
$
5 
  
$
24 
  
$
127 
Restructuring, impairment and other credits
      
$
(1)
                          
$
(1)
Equity in earnings of affiliated companies
$
386 
        
$
1 
              
$
16 
  
$
403 
Income tax (provision) benefit
$
(108)
  
$
(20)
  
$
(5)
  
$
2 
  
$
(7)
  
$
10 
  
$
(128)
Net income (loss) (3)
$
648 
  
$
41 
  
$
11 
  
$
(5)
  
$
13 
  
$
(12)
  
$
696 
                                         
Nine months ended September 30, 2011
                                        
Net sales
$
2,365 
  
$
1,582 
  
$
764 
  
$
836 
  
$
452 
  
$
4 
  
$
6,003 
Depreciation (1)
$
378 
  
$
91 
  
$
79 
  
$
120 
  
$
25 
  
$
8 
  
$
701 
Amortization of purchased intangibles
      
$
5 
              
$
5 
        
$
10 
Research, development and engineering expenses (2)
$
73 
  
$
90 
  
$
73 
  
$
100 
  
$
12 
  
$
68 
  
$
416 
Equity in earnings of affiliated companies
$
835 
  
$
4 
  
$
1 
  
$
13 
        
$
13 
  
$
866 
Income tax (provision) benefit
$
(375)
  
$
(71)
  
$
(44)
  
$
(28)
  
$
(24)
  
$
28 
  
$
(514)
Net income (loss) (3)
$
1,857 
  
$
169 
  
$
93 
  
$
69 
  
$
51 
  
$
(52)
  
$
2,187 
                                         
Nine months ended September 30, 2010
                                        
Net sales
$
2,261 
  
$
1,269 
  
$
584 
  
$
381 
  
$
368 
  
$
4 
  
$
4,867 
Depreciation (1)
$
386 
  
$
89 
  
$
77 
  
$
43 
  
$
24 
  
$
9 
  
$
628 
Amortization of purchased intangibles
      
$
1 
              
$
5 
        
$
6 
Research, development and engineering expenses (2)
$
66 
  
$
84 
  
$
70 
  
$
61 
  
$
13 
  
$
80 
  
$
374 
Restructuring, impairment and other credits
        
(1)
        
$
(2)
              
$
(3)
Equity in earnings of affiliated companies
$
1,083 
  
$
1 
  
$
5 
              
$
32 
  
$
1,121 
Income tax (provision) benefit
$
(391)
  
$
(38)
  
$
(12)
  
$
14 
  
$
(24)
  
$
34 
  
$
(417)
Net income (loss) (3)
$
2,107 
  
$
79 
  
$
27 
  
$
(29)
  
$
48 
  
$
(46)
  
$
2,186 

(1)
Depreciation expense for Corning's reportable segments includes an allocation of depreciation of corporate property not specifically identifiable to a segment.
(2)
Research, development, and engineering expenses include direct project spending that is identifiable to a segment.
(3)
Many of Corning's administrative and staff functions are performed on a centralized basis.  Where practicable, Corning charges these expenses to segments based upon the extent to which each business uses a centralized function.  Other staff functions, such as corporate finance, human resources and legal, are allocated to segments, primarily as a percentage of sales.  In the three and nine months ended September 30, 2011, the Telecommunications segment included a credit of $22 million from the reduction to a contingent liability associated with an acquisition recorded in the first quarter of 2011.

Reconciliation Of Revenue From Segments To Consolidated Net Income
 
Three months ended
September 30,
  
Nine months ended
September 30,
 
2011
  
2010
  
2011
  
2010
Net income of reportable segments
$
766 
  
$
708 
  
$
2,239 
  
$
2,232 
Non-reportable segments
  
(17)
    
(12)
    
(52)
    
(46)
Unallocated amounts:
                      
Net financing costs (1)
  
(47)
    
(47)
    
(146)
    
(137)
Stock-based compensation expense
  
(21)
    
(22)
    
(66)
    
(77)
Exploratory research
  
(23)
    
(15)
    
(59)
    
(44)
Corporate contributions
  
(6)
    
(7)
    
(38)
    
(26)
Equity in earnings of affiliated companies, net of impairments (2)
  
93 
    
101 
    
284 
    
326 
Asbestos settlement (3)
  
(5)
    
(6)
    
(15)
    
41 
Other corporate items (4)
  
71 
    
85 
    
167 
    
245 
Net income
$
811 
  
$
785 
  
$
2,314 
  
$
2,514 

(1)
Net financing costs include interest income, interest expense, and interest costs and investment gains associated with benefit plans.
(2)
Primarily represents the equity earnings of Dow Corning Corporation.  In the nine months ended September 30, 2010 equity earnings of affiliated companies, net of impairments, includes a credit of $21 million for our share of U.S. advanced energy manufacturing tax credits at Dow Corning Corporation.
(3)
In the three and nine months ended September 30, 2011, Corning recorded a charge of $5 million and $15 million, respectively, to adjust the asbestos liability for the change in value of the components of the Amended PCC Plan.  In the three and nine months ended September 30, 2010, Corning recorded a charge of $6 million and a net credit of $41 million, respectively, primarily reflecting the change in the terms of the proposed asbestos settlement.
(4)
In the three months ended September 30, 2011, Corning recorded a $41 million tax benefit from the filing of an amended 2006 U.S. Federal Tax return to claim foreign tax credits.  In the three months ended September 30, 2010, Corning recorded a loss of $30 million ($19 million after-tax) from the repurchase of $126 million principal amount of our 6.2% senior unsecured notes due March 15, 2016 and $100 million principal amount of our 5.9% senior unsecured notes due March 15, 2014.  In the nine months ended September 30, 2010, other corporate items included a tax charge of $56 million from the reversal of the deferred tax asset associated with a Medicare subsidy.