Reportable Segments (Tables)

6 Months Ended

Jun. 30, 2020

Reportable Segments [Abstract]

Reportable Segments

:

	Display		Optical		Specialty		Environmental		Life		All
	Technologies		Communications		Materials		Technologies		Sciences		Other		Total
Three months ended
June 30, 2020
Segment net sales	$	753	$	887	$	417	$	226	$	243	$	62	$	2,588
Depreciation (1)	$	133	$	62	$	38	$	33	$	13	$	14	$	293
Research, development and ‎   engineering expenses (2)	$	25	$	52	$	33	$	22	$	6	$	43	$	181
Income tax (provision) ‎   benefit (3)	$	(41)	$	(23)	$	(24)	$	—	$	(8)	$	19	$	(77)
Segment net income (loss) (4)	$	152	$	81	$	90	$	—	$	31	$	(66)	$	288

	Display		Optical		Specialty		Environmental		Life		All
	Technologies		Communications		Materials		Technologies		Sciences		Other		Total
Three months ended
June 30, 2019
Segment net sales	$	848	$	1,090	$	369	$	366	$	260	$	53	$	2,986
Depreciation (1)	$	149	$	60	$	35	$	32	$	12	$	12	$	300
Research, development and ‎   engineering expenses (2)	$	29	$	54	$	41	$	28	$	5	$	57	$	214
Income tax (provision) ‎   benefit (3)	$	(55)	$	(43)	$	(18)	$	(17)	$	(11)	$	18	$	(126)
Segment net income (loss) (4)	$	213	$	158	$	67	$	65	$	40	$	(68)	$	475

	Display		Optical		Specialty		Environmental		Life		All
	Technologies		Communications		Materials		Technologies		Sciences		Other		Total
Six months ended
June 30, 2020
Segment net sales	$	1,504	$	1,678	$	769	$	546	$	501	$	119	$	5,117
Depreciation (1)	$	266	$	124	$	80	$	67	$	25	$	27	$	589
Research, development and ‎   engineering expenses (2)	$	55	$	107	$	74	$	50	$	13	$	91	$	390
Income tax (provision) ‎   benefit (3)	$	(81)	$	(31)	$	(38)	$	(9)	$	(18)	$	38	$	(139)
Segment net income (loss) (4)	$	304	$	110	$	141	$	35	$	69	$	(135)	$	524

‎

	Display		Optical		Specialty		Environmental		Life		All
	Technologies		Communications		Materials		Technologies		Sciences		Other		Total
Six months ended
June 30, 2019
Segment net sales	$	1,666	$	2,154	$	678	$	728	$	503	$	107	$	5,836
Depreciation (1)	$	301	$	119	$	72	$	63	$	25	$	23	$	603
Research, development and ‎   engineering expenses (2)	$	55	$	110	$	82	$	58	$	10	$	112	$	427
Income tax (provision) ‎   benefit (3)	$	(110)	$	(82)	$	(31)	$	(32)	$	(19)	$	37	$	(237)
Segment net income (loss) (4)	$	421	$	300	$	116	$	120	$	71	$	(140)	$	888

(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 (loss) to consolidated net (loss) income.

Reconciliation of Reportable Segment and All Other Net Sales to Consolidated Net Sales

	Three months ended				Six months ended
	June 30,				June 30,
	2020		2019		2020		2019
Net sales of reportable segments and All Other	$	2,588	$	2,986	$	5,117	$	5,836
Impact of foreign currency movements (1)		(27)		(46)		(60)		(84)
Cumulative adjustment related to customer contract (2)						(105)
Consolidated net sales	$	2,561	$	2,940	$	4,952	$	5,752

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

(2)Amount represents the negative impact of a cumulative adjustment to reduce revenue in the amount of $105 million recorded during the first quarter of 2020. The adjustment was associated with a previously recorded commercial benefit asset, reflected as a prepayment, to a customer with a long-term supply agreement that is exiting its production of LCD panels. Refer to Note 3 (Revenue) to the consolidated financial statements for additional information.

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

	Three months ended				Six months ended
	June 30,				June 30,
	2020		2019		2020		2019
Net income of reportable segments	$	354	$	543	$	659	$	1,028
Net loss of All Other		(66)		(68)		(135)		(140)
Unallocated amounts:
Impact of foreign currency movements not ‎    included in segment net income (loss)		(6)		(36)		(25)		(73)
Gain (loss) on foreign currency hedges ‎    related to translated earnings		35		(107)		93		77
Translation gain (loss) on Japanese yen-denominated debt		3		(36)		(11)		(21)
Research, development, and engineering expenses		(37)		(35)		(76)		(71)
Equity in earnings of affiliated companies (1)		81		34		99		60
Amortization of intangibles		(28)		(28)		(54)		(57)
Interest expense, net		(64)		(49)		(122)		(94)
Income tax benefit		55		2		129		37
Cumulative adjustment related to customer contract (2)						(105)
Severance charges (3)		(58)		(7)		(135)		(7)
Asset impairment (3)		(195)				(195)
Capacity realignment and other charges and credits (3)		(84)		(60)		(232)		(67)
Other corporate items		(61)		(61)		(57)		(81)
Net (loss) income	$	(71)	$	92	$	(167)	$	591

(1)Primarily represents the equity earnings of HSG.

(2)Amount represents the negative impact of a cumulative adjustment to reduce revenue in the amount of $105 million recorded during the first quarter of 2020. The adjustment was associated with a previously recorded commercial benefit asset, reflected as a prepayment, to a customer with a long-term supply agreement that is exiting its production of LCD panels. Refer to Note 3 (Revenue) to the consolidated financial statements for additional information.

(3)Refer to Note 2 (Restructuring, Impairment and Other Charges and Credits) to the consolidated financial statements for additional information on restructuring activities and impairment