Note 2 - Restructuring, Impairment and Other Charges

3 Months Ended

Mar. 31, 2014

Restructuring and Related Activities [Abstract]

Restructuring and Related Activities Disclosure [Text Block]

2.      Restructuring, Impairment and Other Charges

2014 Activity

In the first quarter of 2014, we recorded charges of $17 million, pre-tax, for employee related costs and assets impairment charges associated with some minor restructuring activities in the Optical Communications and Specialty Materials segments, with total cash expenditures estimated to be $3 million. Annualized savings from these actions are anticipated to be approximately $5 million and will be reflected primarily in gross margin and operating expenses.

To better align our 2014 cost position in several of our businesses, Corning implemented a global restructuring plan within several of our segments in the fourth quarter of 2013, consisting of workforce reductions, asset disposals and write-offs, and exit costs.  We recorded charges of $67 million associated with these actions, with total cash expenditures expected to be approximately $40 million.  Annualized savings from these actions are estimated to be approximately $40 million and will be reflected largely in selling, general, and administrative expenses.

The following table summarizes the restructuring, impairment and other charges for the three months ended March 31, 2014 (in millions):

	Reserve at January 1, 2014		Net Charges/ Reversals		Cash payments		Reserve at March 31, 2014
Restructuring:
Employee related costs	$	36	$	3	$	(11)	$	28
Other charges		8						8
Total restructuring activity	$	44	$	3	$	(11)	$	36
Impairment charges and disposal of long-lived assets			$	14
Total restructuring, impairment and other charges			$	17

Cash payments for employee-related costs related to the 2014 and 2013 restructuring actions are expected to be substantially completed in 2014.

2013 Activity

The following table summarizes the restructuring reserve activity related to the 2012 corporate-wide restructuring plan for the three months ended March 31, 2013 (in millions):

	Reserve at January 1, 2013		Cash payments		Reserve at March 31, 2013
Restructuring:
Employee-related costs	$	38	$	(15)	$	23
Other charges (credits)		4		(1)		3
Total restructuring activity	$	42	$	(16)	$	26

Cash payments for the above restructuring activities were substantially completed in 2013.