Note 2 - Restructuring, Impairment and Other Charges

12 Months Ended

Dec. 31, 2014

Restructuring and Related Activities [Abstract]

Restructuring and Related Activities Disclosure [Text Block]

2.      Restructuring, Impairment and Other Charges

2014 Activity

For the year ended December 31, 2014, we recorded charges of $71 million for workforce reductions, asset disposals and write-offs, and exit costs for restructuring activities with total cash expenditures estimated to be $51 million.

The following table summarizes the restructuring, impairment and other charges as of and for the year ended December 31, 2014 (in millions):

	Reserve at January 1, 2014		Net Charges/ Reversals		Non cash adjustments		Cash payments		Reserve at December 31, 2014
Restructuring:
Employee related costs	$	36	$	48	$	(9)	$	(31)	$	44
Other charges (credits)		8		1		(1)		(8)
Total restructuring activity	$	44	$	49	$	(10)	$	(39)	$	44
Impairment charges and disposal of long-lived assets			$	22
Total restructuring, impairment and other charges			$	71

Cash payments for employee-related and exit activity related to the 2014 restructuring actions are expected to be substantially completed in 2015.

The year-to-date cost of these plans for each of our reportable segments was as follows (in millions):

Operating segment	Employee- related and other charges
Display Technologies	$	50
Optical Communications		17
Specialty Materials		1
Life Sciences		1
Corporate and All Other		2
Total restructuring, impairment and other charges	$	71

2013 Activity

Corning implemented a corporate-wide 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.

The following table summarizes the restructuring, impairment and other charges as of and for the year ended December 31, 2013 (in millions):

	Reserve at January 1, 2013		Net Charges/ Reversals		Non cash adjustments		Cash payments		Reserve at December 31, 2013
Restructuring:
Employee related costs	$	38	$	34	$	(4)	$	(32)	$	36
Other charges (credits)		4		7				(3)		8
Total restructuring activity	$	42	$	41	$	(4)	$	(35)	$	44
Impairment charges and disposal of long-lived assets:			$	26
Total restructuring, impairment and other charges			$	67

Cash payments for employee-related and exit activity related to the 2013 corporate-wide restructuring plan were substantially completed in 2014.

2012 Activity

Corning implemented a corporate-wide restructuring plan in the fourth quarter of 2012 due to uncertain global economic conditions, and the potential for slower growth in many of our businesses in 2013.  We recorded charges of $89 million, before tax, which included costs for workforce reductions, asset write-offs and exit costs.  Total cash expenditures associated with these actions are expected to be approximately $49 million.

The Specialty Materials segment recorded an impairment charge in the fourth quarter of 2011 in the amount of $130 million related to certain assets used in the production of large cover glass due to sales that were significantly below our expectations.  In the fourth quarter of 2012, after reassessing the large cover glass business, Corning concluded that the large cover glass market was developing differently in 2012 than our expectations, demand for larger-sized cover glass was declining, and the market for this type of glass was instead targeting smaller gen size products.  Additionally, in the fourth quarter of 2012, our primary customer of large cover glass notified Corning of its decision to exit from this display market.  Based on these events, we recorded an additional impairment charge in the fourth quarter of 2012 in the amount of $44 million, before tax.  This impairment charge represents a write-down of assets specific to the glass-strengthening process for large size cover glass to their fair market values, and includes machinery and equipment used in the ion exchange process.

The following table summarizes the restructuring, impairment and other charges as of and for the year ended December 31, 2012 (in millions):

	Reserve at January 1, 2012		Net Charges/ Reversals		Non cash adjustments		Cash payments		Reserve at December 31, 2012
Restructuring:
Employee related costs	$	2	$	47	$	(7)	$	(4)	$	38
Other charges (credits)		8		5		(5)		(4)		4
Total restructuring activity	$	10	$	52	$	(12)	$	(8)	$	42
Impairment charges and disposal of long-lived assets:
Assets to be held and used				44
Assets to be disposed of				37
Total asset impairment charges and disposals			$	81
Total restructuring, impairment and other charges			$	133

Cash payments for employee-related costs related to the 2012 corporate-wide restructuring plan were substantially completed in 2013.  Cash payments for exit activities were completed in 2012.