8. Investments

Investments comprise the following (in millions):


	Ownership interest (1)	June 30, 2012		December 31, 2011
Affiliated companies accounted for by the equity method
Samsung Corning Precision Materials Co., Ltd.	50%	$	3,259	$	3,315
Dow Corning Corporation	50%		1,256		1,160
All other	20-50%		352		248
			4,867		4,723
Other investments			3		3
Total		$	4,870	$	4,726

(1)	Amounts reflect Corning's direct ownership interests in the respective affiliated companies. Corning does not control any of these entities.

Related party information for these investments in affiliates follows (in millions):


	Three months ended June 30,				Six months ended June 30,
	2012		2011		2012		2011
Related Party Transactions:
Corning sales to affiliated companies	$	6	$	6	$	13	$	12
Corning purchases from affiliated companies	$	50	$	19	$	68	$	56
Corning transfers of assets, at cost, to affiliated companies	$	25	$	27	$	40	$	61
Dividends received from affiliated companies	$	3	$	69	$	521	$	389
Royalty income from affiliated companies	$	22	$	66	$	44	$	127
Corning services to affiliates	$	6	$	13	$	16	$	21

As of June 30, 2012, balances due to and due from affiliates were $33 million and $67 million, respectively. As of December 31, 2011, balances due to and due from affiliates were $14 million and $77 million, respectively.

We have contractual agreements with several of our equity affiliates, including sales, purchasing, licensing and technology agreements.

Summarized results of operations for our two significant investments accounted for by the equity method follow:

Samsung Corning Precision Materials Co. Ltd. (Samsung Corning Precision)

Samsung Corning Precision is a South Korea-based manufacturer primarily of liquid crystal display (LCD) glass for flat panel displays. Samsung Corning Precision's results of operations follow (in millions):


	Three months ended June 30,				Six months ended June 30,
	2012		2011		2012		2011

Statement of Operations:
Net sales	$	785	$	1,209	$	1,569	$	2,350
Gross profit	$	540	$	892	$	1,064	$	1,747
Net income attributable to Samsung Corning Precision	$	402	$	638	$	773	$	1,248
Corning's equity in earnings of Samsung Corning Precision	$	193	$	325	$	376	$	624

Related Party Transactions:
Corning purchases from Samsung Corning Precision	$	42	$	11	$	52	$	41
Dividends received from Samsung Corning Precision					$	518	$	205
Royalty income from Samsung Corning Precision	$	21	$	64	$	43	$	125
Corning transfers of machinery and equipment to Samsung Corning Precision at cost (1)	$	25	$	27	$	40	$	61

(1)	Corning purchases machinery and equipment on behalf of Samsung Corning Precision to support its capital expansion initiatives. The machinery and equipment are transferred to Samsung Corning Precision at our cost basis.

As of June 30, 2012, balances due from Samsung Corning Precision were $12 million and balances due to Samsung Corning Precision were $30 million. As of December 31, 2011, balances due from Samsung Corning Precision were $16 million and balances due to Samsung Corning Precision were $11 million.

Corning owns 50% of Samsung Corning Precision. Samsung Display Co., Ltd. owns 43% and other shareholders own the remaining 7%.

In June 2011, the Korean tax authorities completed an audit of Samsung Corning Precision. As a result, Samsung Corning Precision was issued a pre-assessment of approximately $46 million for an asserted underpayment of withholding tax on dividends paid from September 2006 through March 2009. In April 2011, we appealed for a reversal of the assessment. In October 2011, that appeal was denied and a formal assessment was issued. Corning paid the assessment in the fourth quarter of 2011, allowing us to appeal to the Korean Tax Tribunal. Once a ruling from the Korean Tax Tribunal is received, Corning may continue the Korean appeals process and/or access the Competent Authority under the U.S./Korea tax treaty, which allows the U.S. tax authorities' involvement in resolving the matter. Samsung Corning Precision and Corning believe it is more likely than not we will receive a favorable ruling when all of the available appeals have been exhausted.

Dow Corning Corporation (Dow Corning)

Dow Corning is a U.S.-based manufacturer of silicone products. Dow Corning's results of operations follow (in millions):


	Three months ended June 30,				Six months ended June 30
	2012		2011		2012		2011

Statement of Operations:
Net sales	$	1,571	$	1,668	$	3,093	$	3,247
Gross profit	$	395	$	533	$	732	$	1,072
Net income attributable to Dow Corning	$	121	$	191	$	192	$	370
Corning's equity in earnings of Dow Corning	$	61	$	95	$	96	$	186

Related Party Transactions:
Corning purchases from Dow Corning	$	6	$	6	$	12	$	12
Dividends received from Dow Corning			$	65			$	180

Amounts owed to Dow Corning totaled $1 million as of June 30, 2012. At December 31, 2011, amounts owed to Dow Corning were not significant.

At June 30, 2012, Dow Corning's marketable securities included approximately $138 million of auction rate securities, net of a temporary impairment of $6 million.

Corning and The Dow Chemical Company (Dow Chemical) each own 50% of the common stock of Dow Corning. In May 1995, Dow Corning filed for bankruptcy protection to address pending and claimed liabilities arising from many thousands of breast implant product lawsuits. On June 1, 2004, Dow Corning emerged from Chapter 11 with a Plan of Reorganization (the Plan) which provided for the settlement or other resolution of implant claims. Under the terms of the Plan, Dow Corning has established and is funding a Settlement Trust and a Litigation Facility to provide a means for tort claimants to settle or litigate their claims. Inclusive of insurance, Dow Corning has paid approximately $1.7 billion to the Settlement Trust.

As of June 30, 2012, Dow Corning had recorded a reserve for breast implant litigation of $1.6 billion. As a separate matter arising from the bankruptcy proceedings, Dow Corning is defending claims asserted by a number of commercial creditors who claim additional interest at default rates and enforcement costs, during the period from May 1995 through June 2004. As of June 30, 2012, Dow Corning has estimated the liability to commercial creditors to be within the range of $88 million to $287 million. As Dow Corning management believes no single amount within the range appears to be a better estimate than any other amount within the range, Dow Corning has recorded the minimum liability within the range. Should Dow Corning not prevail in this matter, Corning's equity earnings would be reduced by its 50% share of the amount in excess of $88 million, net of applicable tax benefits.

Variable Interest Entities

For variable interest entities, we routinely assess the terms of our interest in each entity to determine if we are the primary beneficiary as prescribed by U.S. GAAP. We currently have three variable interest entities that are not considered significant to Corning's consolidated financial statements. Corning does not have retained interests in assets transferred to any unconsolidated entity that serves as credit, liquidity or market risk support to such entity.