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Reportable Segments (Tables)
 9 Months Ended
Sep. 30, 2019
Reportable Segments [Abstract]  
Reportable Segments

Display

Optical

Specialty

Environmental

Life

All

Technologies

Communications

Materials

Technologies

Sciences

Other

Total

Three months ended

September 30, 2019

Segment net sales

$

793 

$

1,007 

$

463 

$

397 

$

256 

$

53 

$

2,969 

Depreciation (1)

$

144 

$

59 

$

35 

$

32 

$

12 

$

13 

$

295 

Research, development and
‎   engineering expenses (2)

$

30 

$

53 

$

37 

$

29 

$

5 

$

52 

$

206 

Income tax (provision)
‎   benefit (3)

$

(49)

$

(35)

$

(25)

$

(21)

$

(11)

$

19 

$

(122)

Segment net income (loss) (4)

$

185 

$

127 

$

92 

$

79 

$

41 

$

(70)

$

454 

Display

Optical

Specialty

Environmental

Life

All

Technologies

Communications

Materials

Technologies

Sciences

Other

Total

Three months ended

September 30, 2018

Segment net sales

$

852 

$

1,117 

$

459 

$

331 

$

231 

$

55 

$

3,045 

Depreciation (1)

$

146 

$

55 

$

34 

$

30 

$

12 

$

10 

$

287 

Research, development and
‎   engineering expenses (2)

$

26 

$

53 

$

43 

$

28 

$

5 

$

58 

$

213 

Income tax (provision)
‎   benefit (3)

$

(57)

$

(46)

$

(31)

$

(16)

$

(8)

$

19 

$

(139)

Segment net income (loss) (4)

$

218 

$

168 

$

116 

$

60 

$

30 

$

(72)

$

520 

Display

Optical

Specialty

Environmental

Life

All

Technologies

Communications

Materials

Technologies

Sciences

Other

Total

Nine months ended

September 30, 2019

Segment net sales

$

2,459 

$

3,161 

$

1,141 

$

1,125 

$

759 

$

160 

$

8,805 

Depreciation (1)

$

445 

$

178 

$

107 

$

95 

$

37 

$

36 

$

898 

Research, development and
‎   engineering expenses (2)

$

85 

$

163 

$

119 

$

87 

$

15 

$

164 

$

633 

Income tax (provision)
‎   benefit (3)

$

(159)

$

(117)

$

(56)

$

(53)

$

(30)

$

56 

$

(359)

Segment net income (loss) (4)

$

606 

$

427 

$

208 

$

199 

$

112 

$

(210)

$

1,342 

Display

Optical

Specialty

Environmental

Life

All

Technologies

Communications

Materials

Technologies

Sciences

Other

Total

Nine months ended

September 30, 2018

Segment net sales

$

2,377 

$

3,026 

$

1,080 

$

970 

$

708 

$

156 

$

8,317 

Depreciation (1)

$

436 

$

160 

$

102 

$

89 

$

39 

$

31 

$

857 

Research, development and
‎   engineering expenses (2)

$

76 

$

153 

$

123 

$

86 

$

15 

$

174 

$

627 

Income tax (provision)
‎   benefit (3)

$

(157)

$

(117)

$

(60)

$

(44)

$

(23)

$

60 

$

(341)

Segment net income (loss) (4)

$

595 

$

427 

$

226 

$

166 

$

88 

$

(224)

$

1,278 

(1)Depreciation expense for Corning’s reportable segments includes an allocation of depreciation of corporate property not specifically identifiable to a segment.

(2)Research, development and engineering expenses include direct project spending that is identifiable to a segment.

(3)Income tax (provision) benefit reflects a tax rate of 21%.

(4)Many of Corning’s administrative and staff functions are performed on a centralized basis. Where practicable, Corning charges these expenses to segments based upon the extent to which each business uses a centralized function. Other staff functions, such as corporate finance, human resources and legal, are allocated to segments, primarily as a percentage of sales. Expenses that are not allocated to the segments are included in the reconciliation of reportable segment net income to consolidated net income below.
Reconciliation of Reportable Segment and All Other Net Sales to Consolidated Net Sales

Three months ended

Nine months ended

September 30,

September 30,

2019

2018

2019

2018

Net sales of reportable segments and All Other

$

2,969

$

3,045

$

8,805

$

8,317

Impact of foreign currency movements (1)

(35)

(37)

(119)

(62)

Net sales

$

2,934

$

3,008

$

8,686

$

8,255

(1)This amount primarily represents the impact of foreign currency adjustments in the Display Technologies and Environmental Technologies segments.

Reconciliation of Reportable Segment Net Income to Consolidated Net Income (Loss)

Three months ended

Nine months ended

September 30,

September 30,

2019

2018

2019

2018

Net income of reportable segments

$

524

$

592

$

1,552

$

1,502

Net loss of All Other

(70)

(72)

(210)

(224)

Unallocated amounts:

Impact of foreign currency movements

(20)

(42)

(93)

(110)

Gain on foreign currency hedges
‎    related to translated earnings

84

230

161

66

Translation gain (loss) on Japanese yen-denominated debt

11

30

(10)

28

Litigation, regulatory and other legal matters

24

(11)

24

(143)

Research, development, and engineering expenses

(33)

(31)

(104)

(99)

Equity in earnings of affiliated companies (1)

20

31

74

100

Amortization of intangibles

(28)

(27)

(85)

(68)

Interest expense, net

(51)

(38)

(145)

(111)

Income tax benefit (provision)

51

6

88

(42)

Other corporate items 

(175)

(43)

(324)

(125)

Net income

$

337

$

625

$

928

$

774

(1)Primarily represents the equity earnings of HSG.