Note 8 - Investments

9 Months Ended

Sep. 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 September 30,				Nine months ended September 30,
	2015		2014		2015		2014
Statement of Operations:
Net sales	$	1,389	$	1,520	$	4,177	$	4,545
Gross profit (1)	$	336	$	351	$	1,058	$	1,071
Net income attributable to Dow Corning	$	72	$	176	$	370	$	476
Corning’s equity in earnings of Dow Corning	$	36	$	88	$	185	$	234

(1) Gross profit for the three and nine months ended September 30, 2015 includes research and development costs of $54 million and $179 million (2014: $70 million and $207 million).

Dow Corning’s net income in the three and nine months ended September 30, 2015 includes a pre-tax loss of $56 million and $98 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 nine months ended September 30, 2014 includes a pre-tax (loss) gain of $(24) million and $90 million, respectively, on a derivative instrument.  Additionally, for the three months ended September 30, 2014 Dow Corning’s net income includes a foreign tax credit of $82 million.