Note 4 - Revenue

12 Months Ended

Dec. 31, 2022

Notes to Financial Statements

Revenue from Contract with Customer [Text Block]

Revenue Disaggregation Table

The following table shows revenue by major product categories, similar to the Company’s reportable segment disclosure. Within each product category, contract terms, conditions and economic factors affecting the nature, amount, timing and uncertainty around revenue recognition and cash flows are substantially similar. The commercial markets and selling channels are also similar. Except for an insignificant number of Telecommunications products, product category revenues are recognized at the point in time when control transfers to the customer.

The following table presents revenues by product category (in millions):

	Year ended December 31,
	2022		2021		2020
Telecommunication products	$	5,023	$	4,349	$	3,563
Display products		2,829		3,666		3,077
Specialty glass products		1,996		2,008		1,884
Environmental substrate and filter products		1,492		1,584		1,333
Life science products		1,187		1,232		981
Polycrystalline silicon products (1)		1,191		892		194
All other products (1)		471		351		271
Total Revenue	$	14,189	$	14,082	$	11,303

(1) Corning obtained a controlling interest in HSG during the third quarter of 2020 and has consolidated results in Hemlock and Emerging Growth Businesses beginning on September 9, 2020. Refer to Note 3 (HSG Transactions and Acquisitions) in the notes to the consolidated financial statements for additional information.

Customer Deposits

As of December 31, 2022 and 2021, Corning had customer deposits of approximately $1.3 billion.  Most of these customer deposits were non-refundable and allowed customers to secure rights to products produced by Corning under long-term supply agreements.  The duration of these long-term supply agreements ranges up to 10 years.  As products are shipped to customers, Corning will recognize revenue and reduce the amount of the customer deposit liability. 

For the years ended December 31, 2022 and 2021, customer deposits recognized were $198 million and $216 million, respectively. As of December 31, 2022 and 2021, $1.1 billion was recorded in other long-term liabilities. The remaining $132 million and $223 million, respectively, were recorded in other accrued liabilities.

Deferred Revenue

As of December 31, 2022 and 2021, Corning had deferred revenue of approximately $869 million and $912 million, respectively.  Deferred revenue was primarily related to the performance obligations of non-refundable consideration previously received by HSG from its customers under long term supply agreements.

Deferred revenue is tracked on a per-customer contract-unit basis. As customers take delivery of the committed volumes under the terms of the contract, a per-unit amount of deferred revenue is recognized when control of the promised goods is transferred to the customer based upon the units shipped compared to the remaining contractual units. During the years ended December 31, 2022 and 2021, the amount of deferred revenue recognized in the consolidated statements of income was not material.

As of December 31, 2022 and 2021, $725 million and $764 million, respectively, were recorded in other liabilities and $144 million and $148 million, respectively, were recorded in other accrued liabilities. 

The value of unsatisfied performance obligations is not disclosed for (i) contracts with an original expected length of one year or less and (ii) contracts for which revenue has been recognized at an amount for which the right exists to invoice for services performed.

Significant Customers

For 2022, 2021 and 2020, no customer met or exceeded 10% of Corning’s consolidated net sales.