Note 10 - Goodwill and Other Intangible Assets

12 Months Ended

Dec. 31, 2016

Goodwill and Intangible Assets Disclosure [Text Block]

10.

Goodwill and Other Intangible Assets

Goodwill

Changes in the carrying amount of goodwill for the

twelve

months ended

December

31,

2016

and

2015

were as follows (in millions):

	Display Technologies			Optical Communications			Specialty Materials			Life Sciences			All Other			Total

Balance at December 31, 2014	$	134		$	238		$	198		$	580					$	1,150
Acquired goodwill (1)					220								$	87			307
Measurement period adjustment					(7	)											(7	)
Foreign currency translation adjustment		(6	)		(12	)		(4	)		(18	)		(1	)		(41	)
Other (2)								(44	)					15			(29	)
Balance at December 31, 2015	$	128		$	439		$	150		$	562		$	101		$	1,380
Acquired goodwill (3)					205												205
Measurement period adjustment					(4	)											(4	)
Foreign currency translation adjustment		(2	)		5						(4	)		(3	)		(4	)
Balance at December 31, 2016	$	126		$	645		$	150		$	558		$	98		$	1,577

(1)

The Company completed

four

acquisitions in the Optical Communications segment during the

first

quarter of

2015

and

one

acquisition that is being reported in All Other in the

fourth

quarter of

2015.

Refer to Note

(Acquisitions) to the Consolidated Financial Statements for additional information on these acquisitions.

(2)

In the

fourth

quarter of

2015,

Corning made a change to the internal reporting structure related to a small acquisition in

2014

originally recorded in the Specialty Materials segment, which is now being reported in All Other. Additionally, a charge of

$29

million for the impairment of goodwill related to this acquisition was recorded in the

fourth

quarter.

(3)	The Company completed two acquisitions in the Optical Communications segment during the year ended December 31, 2016 with total purchase price of $356 million.

Corning’s gross goodwill balance for the fiscal years ended

December

31,

2016

and

2015

were

$8.1

billion and

$7.9

billion, respectively. Accumulated impairment losses were

$6.5

billion for the fiscal years ended

December

31,

2016

and

2015,

respectively, and were generated primarily through goodwill impairments related to the Optical Communications segment.

Other Intangible Assets

Other intangible assets follow (in millions):

	December 31,
	2016						2015
	Gross		Accumulated amortization		Net		Gross		Accumulated amortization		Net

Amortized intangible assets:
Patents, trademarks & trade names	$	360	$	176	$	184	$	350	$	162	$	188
Customer list and other		761		149		612		621		103		518

Total	$	1,121	$	325	$	796	$	971	$	265	$	706

Amortized intangible assets are primarily related to the Optical Communications and Life Sciences segments. The net carrying amount of intangible assets increased by

$90

million during the year ended

December

31,

2016,

primarily due to acquisitions of

$150

million and foreign currency translation adjustments of

million offset by amortization of

$64

million.

Amortization expense related to these intangible assets is estimated to be

$68

million annually for

2017

through

2019,

$65

million annually for

2020

and

2021.

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

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