Note 11 - Debt

12 Months Ended

Dec. 31, 2022

Notes to Financial Statements

Debt Disclosure [Text Block]

Debt consisted of the following (in millions):

	December 31,
	2022		2021
Long-term debt
Medium-term notes, average rate 7.66%, due through 2023	$	45	$	45
Debentures, 6.85%, due 2029		159		160
Debentures, callable, 7.25%, due 2036		249		249
Debentures, 4.70%, due 2037		296		296
Debentures, 5.75%, due 2040		396		396
Debentures, 4.75%, due 2042		496		496
Debentures, 5.35%, due 2048		544		544
Debentures, 3.90%, due 2049		395		395
Debentures, 4.375%, due 2057		743		743
Debentures, 5.85%, due 2068		297		297
Debentures, 5.45%, due 2079		1,086		1,086
Yen-denominated debentures, 0.698%, due 2024		160		182
Yen-denominated debentures, 0.722%, due 2025		76		87
Yen-denominated debentures, 0.992%, due 2027		358		407
Yen-denominated debentures, 1.043%, due 2028		232		264
Yen-denominated debentures, 1.219%, due 2030		190		216
Yen-denominated debentures, 1.153%, due 2031		237		270
Yen-denominated debentures, 1.583%, due 2037		76		86
Yen-denominated debentures, 1.513%, due 2039		45		51
Financing Leases, average discount rate 4.4%, due through 2044		190		183
Other, average rate 3.93%, due through 2043		641		591
Total long-term debt, including current portion		6,911		7,044
Less current portion of long-term debt		224		55
Long-term debt	$	6,687	$	6,989

Based on borrowing rates currently available to us for loans with similar terms and maturities, the fair value of long-term debt was $6.1 billion and $8.3 billion as of  December 31, 2022 and 2021, respectively, compared to recorded book values of $6.7 billion and $7.0 billion as of  December 31, 2022 and 2021, respectively. The Company measures the fair value of its long-term debt using Level 2 inputs based primarily on current market yields for its existing debt traded in the secondary market.

On a quarterly basis, Corning will recognize the foreign currency translation gains and losses resulting from changes in exchanges rates within accumulated other comprehensive loss in shareholders’ equity. Cash proceeds from loans and debt issuances are disclosed as financing activities, and cash payments for interest and bond redemptions are disclosed as operating activities and financing activities, respectively, in the consolidated statements of cash flows. 

Corning did not have outstanding commercial paper as of  December 31, 2022 and 2021.

During the year ended December 31, 2022, Corning amended and restated its existing revolving credit agreement, which provides a committed $1.5 billion unsecured multi-currency line of credit, primarily to extend the term to 2027.  Additionally, Corning amended and restated its 25 billion Japanese yen liquidity facility, equivalent to approximately $191 million, primarily to extend the term to 2025.  As of December 31, 2022 and 2021, there were no outstanding amounts under either the amended and restated or the existing facilities. 

Corning is the obligor to unsecured variable rate loan facilities, with an aggregate capacity of 4,645 million Chinese yuan, equivalent to approximately $673 million, whose proceeds are used for capital investment and general corporate purposes.  As of December 31, 2022 and 2021, these facilities had variable rates ranging from 3.3% to 4.3% and 3.8% to 4.5%, respectively, and maturities ranging from 2023 to 2032.  As of December 31, 2022 and 2021, amounts outstanding under these facilities totaled $352 million and $277 million, respectively. 

The following table presents debt maturities by year as of  December 31, 2022 (in millions) ⁽¹⁾:

2023		2024		2025		2026		2027		Thereafter
$	224	$	284	$	169	$	29	$	403	$	5,845

(1) Excludes impact of an interest rate swap, bond discounts and deferred expenses.

Debt Issuances and Redemptions

During the year ended December 31, 2021, Corning redeemed $375 million of 2.9% debentures due in 2022 and $250 million of 3.7% debentures due in 2023, paying premiums of $10 million and $19 million, respectively, by exercising the make-whole call.  The bond redemptions resulted in an $11 million and $20 million loss, respectively.

Losses on bond redemption have been recorded within other income (expense), net in the consolidated statements of income.