Note 2 - Restructuring, Impairment and Other Charges and Credits

6 Months Ended

Jun. 30, 2021

Notes to Financial Statements

Restructuring and Related Activities Disclosure [Text Block]

2. Restructuring, Impairment and Other Charges and Credits 

2021

There were no material restructuring, impairment and other charges and credits activities for the first half of 2021.  As of June 30, 2021, unpaid severance liabilities of $25 million are expected to be substantially completed within the next twelve months. 

2020

In the first half of 2020, and in response to uncertain global economic conditions, Corning undertook actions to transform the Company’s cost structure and improve operational efficiency. 

During the three and six months ended June 30, 2020, $337 million and $562 million were recorded, respectively, in restructuring, impairment and other charges and credits. Severance charges of $58 million and $135 million, respectively, were primarily related to a reduction in workforce to facilitate realignment of capacity in the Asia regions for our Display Technologies segment, optimize our Optical Communications segment and certain corporate costs. An impairment loss of $195 million was incurred for an asset group related to the reassessment of research and development programs within "All Other".  Charges of $84 million and $232 million, respectively, primarily included accelerated depreciation, asset disposals and other related exit costs in our Display Technologies and Specialty Materials business segments.

For the three and six months ended June 30, 2020, total restructuring, impairment and other charges and credits were reflected on the consolidated statements of income (loss) as follows:

	Three months ended
	June 30, 2020
			Selling,		Research,
			general		development
			and		and
	Gross		administrative		engineering
	margin (1)		expenses		expenses		Other		Total
Severance	$	24	$	18	$	16			$	58
Asset impairment						195				195
Capacity realignment		60								60
Other charges and credits		14		4		1	$	5		24
Total restructuring, impairment and other charges and credits	$	98	$	22	$	212	$	5	$	337

⁽¹⁾ Activity reflected in cost of sales.

	Six months ended
	June 30, 2020
			Selling,		Research,
			general		development
			and		and
	Gross		administrative		engineering
	margin (1)		expenses		expenses		Other		Total
Severance	$	76	$	31	$	28			$	135
Asset impairment						195				195
Capacity realignment		148				1				149
Other charges and credits		35		39		1	$	8		83
Total restructuring, impairment and other charges and credits	$	259	$	70	$	225	$	8	$	562

⁽¹⁾ Activity reflected in cost of sales.