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Income Taxes

6 Months Ended

Jun. 30, 2020

6. Income Taxes

Our provision for income taxes and the related effective income tax rates are as follows (in millions):



	Three months ended				Six months ended
	June 30,				June 30,
	2020		2019		2020		2019

Provision for income taxes	$	(22)	$	(124)	$	(10)	$	(200)
Effective tax rate		(44.9%)		57.4%		(6.4%)		25.3%

For the three months ended June 30, 2020, the effective income tax rate differed from the United States (“U.S.”) statutory rate of 21% primarily due to changes in income tax reserves of approximately $40 million. For the six months ended June 30, 2020, the effective income tax rate differed from the U.S. statutory rate of 21% primarily due to changes in income tax reserves of approximately $40 million, an adjustment to our permanently reinvested foreign income position, foreign valuation allowances on deferred tax assets, and certain non-deductible expenses for tax purposes.

For the three and six months ended June 30, 2019, the effective income tax rate differed from the U.S. statutory rate of 21% primarily

due to additional net tax expense of $86 million driven by changes to our tax reserves, rate differences on income (loss) of consolidated foreign companies, estimated impact of base erosion and anti-deferral tax (“BEAT”) offset by the expected benefits related to foreign derived intangible income (“FDII”) and the release of foreign valuation allowances on deferred tax assets.

Corning Precision Materials is currently appealing certain tax assessments and tax refund claims for tax years 2010 through 2018. The Company is required to deposit the disputed tax amounts with the South Korean government as a condition of its appeal of any tax assessments. We believe that it is more likely than not we will prevail in the appeal process. During the first six months of 2020, we received refunds of $101 million related to these claims. As of June 30, 2020, we had recorded a non-current receivable of $340 million related to the appeals. As of December 31, 2019, we had recorded a current and non-current receivable of $33 million and $415 million, respectively.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

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