Note 8 - Investments

6 Months Ended

Jun. 30, 2015

Equity Method Investments and Joint Ventures [Abstract]

Equity Method Investments and Joint Ventures Disclosure [Text Block]

8.      Investments

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,
	2015		2014		2015		2014
Statement of Operations:
Net sales	$	1,424	$	1,501	$	2,788	$	3,025
Gross profit (1)	$	364	$	349	$	722	$	720
Net income attributable to Dow Corning	$	113	$	109	$	298	$	300
Corning’s equity in earnings of Dow Corning	$	57	$	54	$	149	$	146

(1) Gross profit for the three and six months ended June 30, 2015 includes research and development costs of $63 million and $125 million (2014: $70 million and $137 million).

Dow Corning’s net income in the three and six months ended June 30, 2015 included a pre-tax gain of $29 million from the settlement of an intellectual property dispute and a pre-tax loss of $21 million and $48 million, respectively, on a derivative instrument.  Additionally, in the first quarter of 2015, Dow Corning recorded a pre-tax gain of $178 million on the settlement of long-term sales agreements.

Dow Corning’s net income in the three and six months ended June 30, 2014 includes a pre-tax gain of $25 million and $114 million, respectively, on a derivative instrument, and in the six months ending June 30, 2014 includes a pre-tax gain of $32 million on the settlement of long-term sales agreements.