Investments (Tables)

6 Months Ended

Jun. 30, 2020



	Ownership			June 30,		December 31,
	interest			2020		2019
Affiliated companies accounted for by the equity method (1)	20%	to	50%	$	275	$	291
Other investments					54		43
Subtotal investment assets				$	329	$	334

Affiliated companies accounted for by the equity method
HSG (1)(2)		50%		$	171	$	270
Subtotal investment liabilities				$	171	$	270

(1)Amounts reflect Corning’s direct ownership interest in the affiliated companies at June 30, 2020 and December 31, 2019.

(2)Hemlock Semiconductor LLC and Hemlock Semiconductor Operations LLC, of which Corning has 49.9% and 40.25% ownership, respectively, are recorded as equity method investments and are affiliated companies of HSG. At June 30, 2020 and December 31, 2019, the negative carrying value of Corning’s investment in HSG was $171 million and $270 million, respectively, recorded in other liabilities.

Results From Operations



	Three months ended				Six months ended
	June 30,				June 30,
	2020		2019		2020		2019
Statement of Operations:
Net sales	$	160	$	181	$	345	$	366
Gross profit	$	7	$	64	$	66	$	144
Net income	$	163	$	76	$	203	$	139
Net income attributable to HSG (1)	$	163	$	71	$	198	$	123
Corning's equity in earnings of affiliated companies	$	82	$	35	$	99	$	60

Related party transactions:
Intercompany sales within HSG (included in net sales)	$	20	$	33	$	43	$	54

(1)HSG’s net income for the three months ended June 30, 2020, includes a pre-tax gain on settlement of a long-term sales agreement of approximately $165 million, partially offsetting this gain was an inventory provision of approximately $44 million associated with the settlement of this contract. Corning’s share of the net settlement impact to equity earnings was approximately $62 million.