Restructuring, Impairment and Other Charges (Tables)

6 Months Ended

Jun. 30, 2020

Restructuring, Impairment and Other Charges and Credits [Abstract]

Restructuring, Impairment, and Other Charges and Credits

During the three and six months ended June 30, 2020 and 2019, we recorded the following restructuring, impairment and other charges and credits (in millions):

```
	Three months ended				Six months ended
	June 30,				June 30,
	2020		2019		2020		2019
Severance	$	58	$	7	$	135	$	7
Asset impairment		195				195
Capacity realignment		60		61		149		61
Other charges and credits		24		(1)		83		6
Total restructuring, impairment and other charges and credits	$	337	$	67	$	562	$	74

Severance

During the second quarter of 2020, the Company implemented a corporate-wide workforce reduction program. Severance charges for the three and six months ended June 30, 2020, were primarily incurred to facilitate realignment of capacity in the Asia regions for our Display Technologies segment, optimize our Optical Communications segment and contain corporate costs.  For the three months and six months ended June 30, 2019, severance charges were primarily related to a reduction in force program to facilitate realignment of capacity in the Asia regions for our Optical Communications segment. Severance paid to employees for the three and six months ending June 30, 2020 was $22 million and $97 million, respectively. As of June 30, 2020 and December 31, 2019, the unpaid severance liabilities of $82 million and $44 million are expected to be substantially completed within the next twelve months.

Asset Impairment

For the three months ended June 30, 2020, Corning incurred a long-lived asset impairment loss for an asset group related to the reassessment and reprioritization of research and development programs within our All Other segment. Given the current economic environment and market opportunities, Corning has rescoped and significantly reduced its investment in these research and development programs. Accordingly, Corning performed an impairment analysis for the long-lived asset group. Based on the recoverability test, the undiscounted cash flow of the asset group is significantly lower than its carrying values. Corning further assessed the fair value of the asset group using discounted cash flow projections, which resulted in a total pre-tax asset impairment loss of $195 million, which was substantially all the carrying value of this asset group. 

Capacity Realignment

Capacity realignment for the three and six months ended June 30, 2020, primarily includes accelerated depreciation and asset disposals associated with the exit of certain facilities and other exit activities in our Display Technologies and Specialty Materials business segments. Capacity realignment for the three and six months ended June 30, 2019, is primarily comprised of accelerated depreciation associated with the exit of certain facilities in our Display Technologies segment.

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The following tables present the impact and respective location of total restructuring, impairment, and other charges and credits on the consolidated statements of (loss) income (in millions):

	Three months ended										Three months ended
	June 30, 2020										June 30, 2019
			Selling,		Research,								Selling,		Research,
			general		development								general		development
			and		and								and		and
	Gross		admin.		engineering						Gross		admin.		engineering
	margin (1)		expenses		expenses		Other		Total		margin (1)		expenses		expenses		Other		Total
Severance	$	24	$	18	$	16			$	58	$	1	$	6					$	7
Asset impairment						195				195
Capacity realignment		60								60		61								61
Other charges and credits		14		4		1	$	5		24		33					$	(34)		(1)
Total restructuring, ‎    impairment and ‎    other charges and credits	$	98	$	22	$	212	$	5	$	337	$	95	$	6	$	—	$	(34)	$	67

(1)Activity reflected in cost of goods sold.

	Six months ended										Six months ended
	June 30, 2020										June 30, 2019
			Selling,		Research,								Selling,		Research,
			general		development								general		development
			and		and								and		and
	Gross		admin.		engineering						Gross		admin.		engineering
	margin (1)		expenses		expenses		Other		Total		margin (1)		expenses		expenses		Other		Total
Severance	$	76	$	31	$	28			$	135	$	1	$	6					$	7
Asset impairment						195				195
Capacity realignment		148				1				149		61								61
Other charges and credits		35		39		1	$	8		83		33					$	(27)		6
Total restructuring, ‎    impairment and ‎    other charges and credits	$	259	$	70	$	225	$	8	$	562	$	95	$	6	$	—	$	(27)	$	74

(1)Activity reflected in cost of goods sold.