Restructuring, Impairment And Other Charges (Credits)

12 Months Ended

Dec. 31, 2011

Restructuring, Impairment And Other Charges (Credits) [Abstract]

Restructuring, Impairment And Other Charges (Credits)

2.      Restructuring, Impairment and Other Charges (Credits)

2011 Activity

During the fourth quarter of 2011, the Specialty Materials segment recorded an impairment charge related to certain assets used in the ion exchange process for the production of large cover glass.  Although sales of Corning Gorilla Glass used in our large cover glass products increased in 2011 when compared to 2010, gross margins continue to be weak and sales volumes were significantly below our expectations in 2011 and both sales and margins are expected to be lower than forecasted in 2012.  As a result, certain assets located in Japan used in the ion exchange process for the production of large cover glass were written down to estimated fair value in the fourth quarter of 2011 and an impairment loss of $130 million was recognized.  This asset group includes machinery and equipment used in the ion exchange process and facilities dedicated to the ion exchange process. 

The following table summarizes the restructuring, impairment and other charges (credits) as of and for the year ended December 31, 2011 (in millions):

	Reserve at January 1, 2011		Net Charges / Reversals		Cash payments		Reserve at December 31, 2011
Restructuring:
Employee related costs	$	15	$	(1)	$	(12)	$	2
Other charges (credits)		12				(4)		8
Total restructuring activity	$	27	$	(1)	$	(16)	$	10
Impairment of long-lived asset:
Assets to be held and used			$	130
Total impairment charges			$	130
Total restructuring, impairment and other charges			$	129

2010 Activity

Corning recorded credits of $329 million in 2010.  During 2009, we had two events which impacted production at several of our LCD glass manufacturing facilities.  In August 2009, an earthquake halted production at one of our LCD glass manufacturing facilities in Japan and in October 2009, production at our facility in Taichung, Taiwan was impacted by a power disruption.  In the fourth quarter of 2010, we recorded $324 million in other credits in our Display segment as settlement of business interruption and property damage insurance claims resulting from these events.

The following table summarizes the restructuring, and other charges (credits) as of and for the year ended December 31, 2010 (in millions):

	Reserve at January 1, 2010		Non-cash adjustments		Net charges/ (reversals)		Cash payments		Reserve at December 31, 2010
Restructuring:
Employee related costs	$	80	$	(2)	$	(5)	$	(58)	$	15
Other charges (credits)		20						(8)		12
Total restructuring activity	$	100	$	(2)	$	(5)	$	(66)	$	27
Other charges (credits):
Settlement of business interruption and property damage insurance claims					$	(324)
Total other credits					$	(324)
Total restructuring, impairment and other charges (credits)					$	(329)

Cash payments for employee-related costs were substantially completed in 2010.  Payments for exit activities were substantially completed in 2011.

2009 Activity

Corning recorded net charges of $228 million in 2009.  A summary of the charges follows:

·   We recorded a charge of $228 million associated with a corporate-wide restructuring plan to reduce our global workforce in response to anticipated lower sales in 2009.  The charge included costs for severance, special termination benefits, outplacement services, asset disposal costs, and the impact of a $32 million curtailment loss for postretirement benefits in 2009.  Total cash expenditures associated with this plan are expected to be approximately $150 million with the majority of spending completed in 2010.

The following table summarizes the restructuring, and other charges (credits) as of and for the year ended December 31, 2009 (in millions):

	Reserve at January 1, 2009		Charges		Non-cash settlements		Cash payments		Reserve at December 31, 2009
Restructuring:
Employee related costs	$	17	$	203	$	(54)	$	(86)	$	80
Other charges (credits)		17		6				(3)		20
Total restructuring activity	$	34	$	209	$	(54)	$	(89)	$	100
Impairment of long-lived assets:
Assets to be disposed of			$	19
Total impairment charges			$	19
Total restructuring, impairment and other charges			$	228

The year-to-date cost of these plans for each of our reportable segments was as follows (in millions):

Operating segment	Employee- related and other costs
Display Technologies	$	31
Telecommunications		42
Environmental Technologies		28
Specialty Materials		17
Life Sciences		8
Corporate and All Other		102
Total restructuring, impairment and other charges	$	228