10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2023

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from   To  

Commission file number: 1-3247

CORNING INCORPORATED

(Exact name of registrant as specified in its charter)

New York	16-0393470
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
One Riverfront Plaza, Corning, New York	14831
(Address of principal executive offices)	(Zip Code)

607-974-9000

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $0.50 par value per share	GLW	New York Stock Exchange (NYSE)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days.

Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large Accelerated Filer	☒	Accelerated Filer	☐
Non-Accelerated Filer	☐	Smaller Reporting Company	☐
		Emerging Growth Company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards pursuant to Section 13(a) of the Exchange Act.

Yes ☐ No ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes ☐ No ☒

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

Class	Outstanding as of April 21, 2023
Corning’s Common Stock, $0.50 par value per share	850,130,495 shares

1

INDEX

PART I – FINANCIAL INFORMATION
	Page
Item 1. Financial Statements
Consolidated Statements of Income	3
Consolidated Statements of Comprehensive Income	4
Consolidated Balance Sheets	5
Consolidated Statements of Cash Flows	6
Consolidated Statements of Changes in Shareholders’ Equity	7
Notes to Consolidated Financial Statements	8
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	21
Item 3. Quantitative and Qualitative Disclosures About Market Risk	37
Item 4. Controls and Procedures	37
PART II – OTHER INFORMATION
Item 1. Legal Proceedings	38
Item 1A. Risk Factors	38
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	39
Item 6. Exhibits	40
Signatures	41

2

Consolidated Statements of Income	Corning Incorporated and Subsidiary Companies
(Unaudited; in millions, except per share amounts)

	Three months ended
	March 31,
	2023			2022
Net sales	$	3,178		$	3,680
Cost of sales		2,175			2,397
Gross margin		1,003			1,283
Operating expenses:
Selling, general and administrative expenses		421			434
Research, development and engineering expenses		254			248
Amortization of purchased intangibles		31			31
Operating income		297			570
Interest income		7			3
Interest expense		(76	)		(71	)
Translated earnings contract (loss) gain, net (Note 10)		(8	)		129
Other income, net		8			152
Income before income taxes		228			783
Provision for income taxes (Note 3)		(37	)		(180	)
Net income		191			603
Net income attributable to non-controlling interest		(15	)		(22	)
Net income attributable to Corning Incorporated	$	176		$	581
Earnings per common share available to common shareholders:
Basic (Note 4)	$	0.21		$	0.69
Diluted (Note 4)	$	0.20		$	0.68

The accompanying notes are an integral part of these consolidated financial statements.

‎

3

Consolidated Statements of Comprehensive Income	Corning Incorporated and Subsidiary Companies
(Unaudited; in millions)

	Three months ended
	March 31,
	2023			2022
Net income	$	191		$	603
Foreign currency translation adjustments and other		(84	)		(200	)
Unamortized losses and prior service costs for postretirement benefit plans		(4	)		(1	)
Realized and unrealized gains on derivatives		21			14
Other comprehensive loss, net of tax		(67	)		(187	)
Comprehensive income		124			416
Comprehensive income attributable to non-controlling interest		(15	)		(22	)
Comprehensive income attributable to Corning Incorporated	$	109		$	394

The accompanying notes are an integral part of these consolidated financial statements.

4

Consolidated Balance Sheets	Corning Incorporated and Subsidiary Companies
(Unaudited; in millions, except share and per share amounts)

	March 31,			December 31,
	2023			2022
Assets
Current assets:
Cash and cash equivalents	$	1,146		$	1,671
Trade accounts receivable, net of doubtful accounts - $27 and $40		1,688			1,721
Inventories (Note 5)		2,863			2,904
Other current assets		1,180			1,157
Total current assets		6,877			7,453
Property, plant and equipment, net of accumulated depreciation - $14,239 and $14,147		15,137			15,371
Goodwill, net		2,394			2,394
Other intangible assets, net		1,002			1,029
Deferred income taxes (Note 3)		1,106			1,073
Other assets		2,306			2,179
Total Assets	$	28,822		$	29,499
Liabilities and Equity
Current liabilities:
Current portion of long-term debt and short-term borrowings	$	197		$	224
Accounts payable		1,662			1,804
Other accrued liabilities (Notes 6 and 9)		2,914			3,147
Total current liabilities		4,773			5,175
Long-term debt (Note 7)		6,654			6,687
Postretirement benefits other than pensions (Note 8)		405			407
Other liabilities (Notes 6 and 9)		4,783			4,955
Total liabilities		16,615			17,224
Commitments and contingencies (Note 9)
Shareholders’ equity (Note 12):
Common stock – Par value $0.50 per share; Shares authorized 3.8 billion; Shares issued: 1.8 billion and 1.8 billion		911			910
Additional paid-in capital – common stock		16,746			16,682
Retained earnings		16,713			16,778
Treasury stock, at cost; Shares held: 977 million and 977 million		(20,548	)		(20,532	)
Accumulated other comprehensive loss		(1,897	)		(1,830	)
Total Corning Incorporated shareholders’ equity		11,925			12,008
Non-controlling interest		282			267
Total equity		12,207			12,275
Total Liabilities and Equity	$	28,822		$	29,499

The accompanying notes are an integral part of these consolidated financial statements. 

5

Consolidated Statements of Cash Flows	Corning Incorporated and Subsidiary Companies
(Unaudited; in millions)

	Three months ended
	March 31,
	2023			2022
Cash Flows from Operating Activities:
Net income	$	191		$	603
Adjustments to reconcile net income to net cash (used in) provided by operating activities:
Depreciation		310			342
Amortization of purchased intangibles		31			31
Gain on sale of business					(53	)
Share-based compensation expense		52			42
Translation gain on Japanese yen-denominated debt		(18	)		(84	)
Deferred tax (benefit) provision		(38	)		24
Translated earnings contract loss (gain)		8			(129	)
Unrealized translation loss on transactions		33			20
Changes in assets and liabilities:
Trade accounts receivable		(28	)		7
Inventories		17			(159	)
Other current assets		(62	)		(81	)
Accounts payable and other current liabilities		(369	)		77
Customer deposits and government incentives		(17	)		(9	)
Deferred income		(6	)		(25	)
Other, net		(153	)		(72	)
Net cash (used in) provided by operating activities		(49	)		534
Cash Flows from Investing Activities:
Capital expenditures		(382	)		(383	)
Proceeds from sale of equipment to related party		67
Proceeds from sale of business					74
Realized gains on translated earnings contracts		81			40
Other, net		6			(9	)
Net cash used in investing activities		(228	)		(278	)
Cash Flows from Financing Activities:
Repayments of short-term borrowings		(69	)		(11	)
Proceeds from other financing arrangements		54
Proceeds from exercise of stock options		16			18
Purchases of common stock for treasury					(149	)
Dividends paid		(239	)		(228	)
Other, net		(10	)		(5	)
Net cash used in financing activities		(248	)		(375	)
Effect of exchange rates on cash					(13	)
Net decrease in cash and cash equivalents		(525	)		(132	)
Cash and cash equivalents at beginning of period		1,671			2,148
Cash and cash equivalents at end of period	$	1,146		$	2,016

The accompanying notes are an integral part of these consolidated financial statements. 

6

Consolidated Statements of Changes in Shareholders' Equity	Corning Incorporated and Subsidiary Companies
(Unaudited; in millions, except per share amounts)

	Common stock		Additional paid-in capital common		Retained earnings			Treasury stock			Accumulated other comprehensive loss			Total Corning Incorporated shareholders' equity			Non-controlling interest		Total
Balance as of December 31, 2022	$	910	$	16,682	$	16,778		$	(20,532	)	$	(1,830	)	$	12,008		$	267	$	12,275
Net income						176									176			15		191
Other comprehensive loss												(67	)		(67	)				(67	)
Shares issued to benefit plans and for option exercises		1		64											65					65
Common dividends ($0.28 per share)						(241	)								(241	)				(241	)
Other, net (1)									(16	)					(16	)				(16	)
Balance as of March 31, 2023	$	911	$	16,746	$	16,713		$	(20,548	)	$	(1,897	)	$	11,925		$	282	$	12,207

	Common stock		Additional paid-in capital common		Retained earnings			Treasury stock			Accumulated other comprehensive loss			Total Corning Incorporated shareholders' equity			Non-controlling interest		Total
Balance as of December 31, 2021	$	907	$	16,475	$	16,389		$	(20,263	)	$	(1,175	)	$	12,333		$	212	$	12,545
Net income						581									581			22		603
Other comprehensive loss												(187	)		(187	)				(187	)
Purchase of common stock for treasury									(151	)					(151	)				(151	)
Shares issued to benefit plans and for option exercises		1		56											57					57
Common dividends ($0.27 per share)						(233	)								(233	)				(233	)
Other, net (1)									(5	)					(5	)				(5	)
Balance as of March 31, 2022	$	908	$	16,531	$	16,737		$	(20,419	)	$	(1,362	)	$	12,395		$	234	$	12,629

(1) Treasury stock includes the deemed surrender to the Company of common stock to satisfy employee tax withholding obligations.

The accompanying notes are an integral part of these consolidated financial statements. 

7

CORNING INCORPORATED AND SUBSIDIARY COMPANIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

1. Summary of Significant Accounting Policies

Basis of Presentation and Principles of Consolidation

In these notes, the terms “Corning,” “Company,” “we,” “us,” or “our” mean Corning Incorporated and its subsidiary companies.

The consolidated financial statements include the consolidated accounts of Corning Incorporated and its subsidiaries consolidated in conformity with accounting principles generally accepted in the United States of America (“GAAP”). In the opinion of management, the accompanying unaudited consolidated financial statements contain all adjustments, which include normal recurring adjustments, necessary to state fairly the financial position, results of operations and cash flows for the periods presented. All intercompany accounts, transactions and profits have been eliminated. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been omitted pursuant to the rules and regulations of the United States Securities and Exchange Commission (“SEC”). These consolidated financial statements should be read in conjunction with the audited financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2022 (“2022 Form 10-K”). The results of operations for the interim periods are not necessarily indicative of results which may be expected for any other interim period or for the full year.

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, expenses and the disclosure of contingent assets and liabilities in the consolidated financial statements and related notes. Significant estimates and assumptions in these consolidated financial statements require the exercise of judgment. Due to the inherent uncertainty involved in making estimates, actual results reported in future periods may be different from these estimates. 

The non-controlling interest as recorded in the consolidated financial statements represents amounts attributable to the minority shareholders of Hemlock Semiconductor Group (“Hemlock”) and other less-than-wholly-owned consolidated subsidiaries.

Certain prior year amounts have been reclassified to conform to the current year presentation. These reclassifications had no material impact on the results of operations, financial position, or changes in shareholders’ equity.

2. Revenue

Disaggregated Revenue

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

	Three months ended
	March 31,
	2023		2022
Telecommunication products	$	1,125	$	1,198
Display products		609		906
Specialty glass products		404		493
Environmental substrate and filter products		407		401
Life science products		247		307
Polycrystalline silicon products		277		282
All other products		109		93
Total revenue	$	3,178	$	3,680

8

 

Customer Deposits

As of March 31, 2023 and December 31, 2022, Corning had customer deposits of approximately $1.2 billion and $1.3 billion, respectively.  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 delivered to customers, Corning will recognize revenue and reduce the amount of the customer deposit liability.

For the three months ended March 31, 2023 and 2022, customer deposits recognized were $70 million and $83 million, respectively.

Refer to Note 6 (Other Liabilities) for additional information. 

Deferred Revenue

As of March 31, 2023 and December 31, 2022, Corning had deferred revenue of approximately $863 million and $869 million, respectively.  Deferred revenue was primarily related to the performance obligations of non-refundable consideration previously received by Hemlock 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 delivered compared to the remaining contractual units.  For the three months ended  March 31, 2023 and 2022, the amount of deferred revenue recognized in the consolidated statements of income was not material.

Refer to Note 6 (Other Liabilities) for additional information.  

3. Income Taxes

The following table presents the provision for income taxes and the related effective tax rate (in millions, except percentages):

	Three months ended
	March 31,
	2023			2022
Provision for income taxes	$	(37	)	$	(180	)
Effective tax rate		16.2	%		23.0	%

For the three months ended March 31, 2023, the effective tax rate differed from the United States (“U.S.”) statutory rate of 21%, primarily due to differences arising from foreign earnings and a net benefit due to foreign derived intangible income.  For the three months ended March 31, 2022, the effective tax rate differed from the U.S. statutory rate of 21%, primarily due to changes in tax reserves and the impact of changes in tax legislation, partially offset by differences arising from foreign earnings.

Corning Precision Materials, a South Korean subsidiary, is currently appealing certain tax assessments and tax refund claims for tax years 2010 through 2019. The Company is required to deposit the disputed tax amounts with the South Korean government as a condition of its appeal of any tax assessments. Corning believes that it is more likely than not the Company will prevail in the appeals process. The non-current receivable balance was $358 million and $349 million as of March 31, 2023 and December 31, 2022, respectively, for the amount on deposit with the South Korean government.

9

 

4. Earnings Per Common Share

The following table presents the reconciliation of the amounts used to compute basic and diluted earnings per common share (in millions, except per share amounts):

	Three months ended
	March 31,
	2023		2022
Net income attributable to Corning Incorporated	$	176	$	581
Weighted-average common shares outstanding – basic		844		843
Effect of dilutive securities:
Stock options and other dilutive securities		15		16
Weighted-average common shares outstanding – diluted		859		859
Basic earnings per common share	$	0.21	$	0.69
Diluted earnings per common share	$	0.20	$	0.68
Anti-dilutive potential shares excluded from diluted earnings per common share:
Employee stock options and awards		5

5. Inventories

Inventories consisted of the following (in millions):

	March 31,		December 31,
	2023		2022
Finished goods	$	1,272	$	1,315
Work in process		607		571
Raw materials and accessories		518		537
Supplies and packing materials		466		481
Inventories	$	2,863	$	2,904

10

 

6. Other Liabilities

Other liabilities consisted of the following (in millions):

	March 31,		December 31,
	2023		2022
Current liabilities:
Wages and employee benefits	$	447	$	727
Income taxes		157		127
Derivative instruments (Note 10)		144		174
Deferred revenue (Note 2)		170		144
Customer deposits (Note 2)		165		132
Share repurchase liability (Note 12)		507		506
Short-term operating leases		100		111
Other current liabilities		1,224		1,226
Other accrued liabilities	$	2,914	$	3,147
Non-current liabilities:
Defined benefit pension plan liabilities	$	680	$	668
Derivative instruments (Note 10)		43		17
Deferred revenue (Note 2)		693		725
Customer deposits (Note 2)		1,038		1,137
Deferred tax liabilities		219		243
Long-term operating leases		846		795
Other non-current liabilities		1,264		1,370
Other liabilities	$	4,783	$	4,955

7. Debt

Based on borrowing rates currently available to us for loans with similar terms and maturities, the fair value of long-term debt was $6.4 billion and $6.1 billion as of March 31, 2023 and December 31, 2022, respectively, compared to the carrying value of $6.7 billion as of March 31, 2023 and December 31, 2022. 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.

Corning had no outstanding commercial paper as of March 31, 2023 and December 31, 2022.

11

 

8. Employee Retirement Plans

Corning has defined benefit pension plans covering certain domestic and international employees. The Company may contribute, as necessary, an amount exceeding the minimum requirements to achieve the Company’s long-term funding targets. During 2023, the Company plans to make cash contributions of $28 million to international pension plans.

The following table presents the components of net periodic benefit expense for employee retirement plans, which other than the service cost component is recorded in other income, net in the consolidated statements of income (in millions):

	Pension benefits						Postretirement benefits
	Three months ended						Three months ended
	March 31,						March 31,
	2023			2022			2023			2022
Service cost	$	23		$	32		$	1		$	2
Interest cost		45			27			6			4
Expected return on plan assets		(46	)		(55	)
Amortization of actuarial net gain								(5	)
Amortization of prior service cost (credit)		2			1			(1	)		(1	)
Total pension and postretirement benefit expense	$	24		$	5		$	1		$	5

9. Commitments and Contingencies 

Corning is a defendant in various lawsuits and is subject to various claims that arise in the normal course of business, the most significant of which are summarized below. In the opinion of management, the likelihood that the ultimate disposition of these matters will have a material adverse effect on Corning’s consolidated financial position, liquidity, or results of operations, is remote.

Dow Corning Chapter 11 Related Matters

Until June 1, 2016, Corning and The Dow Chemical Company (“Dow”) each owned 50% of the common stock of Dow Corning Corporation (“Dow Corning”). On May 31, 2016, Corning and Dow realigned their ownership interest in Dow Corning. Following the realignment, Corning no longer owned any interest in Dow Corning. With the realignment, Corning agreed to indemnify Dow for 50% of Dow Corning’s non-ordinary course, pre-closing liabilities to the extent such liabilities exceed the amounts reserved for them by Dow Corning as of May 31, 2016, subject to certain conditions and limits.  Corning does not believe that its indemnity obligation will be material.

Dow Corning Environmental Claims

In September 2019, Dow formally notified Corning of certain environmental matters for which Dow asserts that it has, or will, experience losses arising from remediation and response at a number of sites.  In the event Dow is liable for these claims, Corning may be required to indemnify Dow for up to 50% of that liability, subject to certain conditions and limits.  As of March 31, 2023, Corning has determined a potential liability for these environmental matters is probable and the amount reserved was not material.

Environmental Litigation

Corning has been designated by federal or state governments under environmental laws, including Superfund, as a potentially responsible party that may be liable for cleanup costs associated with 19 hazardous waste sites.  It is Corning’s policy to accrue for its estimated liability related to such hazardous waste sites and other environmental liabilities related to property owned by Corning based on expert analysis and continual monitoring by both internal and external consultants.  As of  March 31, 2023 and December 31, 2022, Corning had accrued approximately $101 million and $109 million, respectively, for the estimated undiscounted liability for environmental cleanup and related litigation. Based upon the information developed to date, management believes that the accrued reserve is a reasonable estimate of the Company’s liability.

12

 

10. Hedging Activities

Designated Hedges

Corning uses over-the-counter (“OTC”) foreign exchange forward contracts designated as cash flow hedges to reduce the risk that movements in exchange rates will adversely affect the net cash flows resulting from the sale of products to customers and purchases from suppliers. The total gross notional values for foreign currency cash flow hedges are $365 million and $419 million at March 31, 2023 and December 31, 2022, respectively, with maturities through 2024. Corning defers gains and losses related to cash flow hedges into accumulated other comprehensive loss on the consolidated balance sheets until the hedged item impacts earnings. At March 31, 2023, the amount expected to be reclassified into earnings within the next 12 months is a pre-tax gain of $29 million.

Corning has entered into leases of precious metals, with maturities through 2025. To offset the risk of changes in the fair value of the Company’s separate accounting pool of leased precious metals due to adverse changes in the respective market prices, Corning designated the bifurcated embedded derivatives included in these leases as fair value hedges. The gain or loss on the derivatives, as well as the offsetting loss or gain on the hedged item attributable to the hedged risk, are recognized in current earnings. The amounts representing the time value component of the derivatives are excluded from the assessment of effectiveness and amortized in earnings. The impact of the excluded component on Corning’s other comprehensive income and earnings is not material. The carrying amount of the leased precious metals pool, which is included within property, plant and equipment, net of accumulated depreciation in the consolidated balance sheets, is $185 million and $278 million, respectively, as of March 31, 2023 and December 31, 2022. The carrying amount of the leased precious metals pool includes cumulative fair value losses of $188 million and $95 million as of March 31, 2023 and December 31, 2022, respectively.

Undesignated Hedges

Corning uses OTC foreign exchange forward and option contracts not designated as hedging instruments for accounting purposes to offset economic currency risks. The undesignated hedges limit exposure to foreign functional currency fluctuations related to certain subsidiaries’ monetary assets, monetary liabilities and net earnings in foreign currencies. 

A significant portion of the Company’s non-U.S. revenue and expenses are denominated in Japanese yen, South Korean won, new Taiwan dollar, Chinese yuan and euro. When this revenue and these expenses are translated to U.S. dollars, the Company is exposed to foreign exchange rate movements. To protect translated earnings against movements in these currencies, the Company has entered into a series of average rate forwards and option contracts. Most of these contracts hedge a significant portion of the Company’s exposure to the Japanese yen, with maturities through 2024, and South Korean won, with maturities through 2026.

The following table summarizes the notional amounts and respective fair values of Corning’s derivative financial instruments on a gross basis as of  March 31, 2023 and December 31, 2022 (in millions):

					Asset derivatives					Liability derivatives
	Notional amount				Balance	Fair value				Balance	Fair value
	March		December		sheet	March		December		sheet	March			December
	31, 2023		31, 2022		location	31, 2023		31, 2022		location	31, 2023			31, 2022
Derivatives designated as hedging instruments (1)
Foreign exchange and precious metals lease contracts (1)	$	365	$	419	Other current assets	$	75	$	26	Other accrued liabilities				$	(1	)
					Other assets		146		78
Derivatives not designated as hedging instruments
Foreign exchange contracts		2,924		2,231	Other current assets		22		44	Other accrued liabilities	$	(18	)		(49	)
Translated earnings contracts		6,770		7,543	Other current assets		354		384	Other accrued liabilities		(126	)		(124	)
					Other assets		114		146	Other liabilities		(43	)		(17	)
Total derivatives	$	10,059	$	10,193		$	711	$	678		$	(187	)	$	(191	)

⁽¹⁾ As of  March 31, 2023, derivatives designated as hedging instruments include foreign exchange cash flow hedges with gross notional amounts of $365 million and fair value hedges of leased precious metals with gross notional amounts of 23,152 troy ounces.  As of  December 31, 2022, derivatives designated as hedging instruments include foreign exchange cash flow hedges with gross notional amounts of $419 million and fair value hedges of leased precious metals with gross notional amounts of 23,152 troy ounces. 

13

 

The following table summarizes the total gross notional value for translated earnings contracts as of  March 31, 2023 and December 31, 2022 (in billions):

	March 31,		December 31,
	2023		2022
Average rate forward contracts:
Japanese yen-denominated	$	0.2	$	0.1
South Korean won-denominated		2.0		2.1
Other foreign currencies (1)		0.8		0.7
Option contracts:
Japanese yen-denominated (2)		3.8		4.6
Total gross notional value for translated earning contracts	$	6.8	$	7.5

(1)	Denominational currencies for other average rate forward contracts include the Chinese yuan, New Taiwan dollar, euro and British pound.
(2)	Japanese yen-denominated option contracts include purchased put and call options, knock-out options, and zero-cost collars. With respect to the zero-cost collars, the gross notional amount includes the value of the put and call options. However, due to the nature of the zero-cost collars, only the put or call option can be exercised at maturity.

The fair values of these derivative contracts are recorded as either assets (gain position) or liabilities (loss position) on the consolidated balance sheets. Changes in the fair value of the derivative contracts are recorded currently in earnings within translated earnings contract (loss) gain, net in the consolidated statements of income.

The following tables summarize the effect in the consolidated statements of income relating to Corning’s derivative financial instruments (in millions).  The accumulated derivative gain included in accumulated other comprehensive loss on the consolidated balance sheets as of March 31, 2023 and December 31, 2022 is $44 million and $19 million, respectively.

	Three months ended March 31,
					Location of gain (loss)
	Gain recognized				reclassified from	Gain (loss) reclassified
Derivative hedging	in other comprehensive				accumulated	from accumulated
relationships for cash	income (OCI)				OCI into income	OCI into income
flow and fair value hedges	2023		2022		effective (ineffective)	2023			2022
					Net sales				$	10
					Cost of sales	$	7			7
Foreign exchange and precious metals lease contracts	$	32	$	34	Other income, net		(1	)		(1	)
Total cash flow and fair value hedges	$	32	$	34		$	6		$	16

		Gain (loss) recognized in income
		Three months ended
	Location of gain (loss)	March 31,
Undesignated derivatives	recognized in income	2023			2022
Foreign exchange contracts	Other income, net	$	13		$	26
Translated earnings contracts	Translated earnings contract (loss) gain, net		(8	)		129
Total undesignated		$	5		$	155

14

 

11. Fair Value Measurements

The following table provides fair value measurement information for the Company’s major categories of financial assets and liabilities measured on a recurring basis (in millions):

	March 31, 2023								December 31, 2022
	Total		Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3
Current assets:
Other current assets (1)	$	503	$	2	$	451	$	50	$	505	$	2	$	454	$	49
Non-current assets:
Other assets (1)	$	266	$	6	$	260			$	225			$	224	$	1
Current liabilities:
Other accrued liabilities (1)	$	144			$	144			$	174			$	174
Non-current liabilities:
Other liabilities (1)	$	60			$	60			$	34			$	34

⁽¹⁾ Derivative assets and liabilities include foreign exchange and precious metals lease contracts which were measured using observable inputs for similar assets and liabilities.

There were no significant financial assets and liabilities measured on a non-recurring basis as of March 31, 2023 and December 31, 2022.

12. Shareholders’ Equity

Fixed Rate Cumulative Convertible Preferred Stock, Series A

We had 2,300 outstanding shares of Fixed Rate Cumulative Convertible Preferred Stock, Series A (the “Preferred Stock”) as of December 31, 2020. On January 16, 2021, the Preferred Stock became convertible into 115 million common shares. On April 5, 2021, we executed the Share Repurchase Agreement (“SRA”) with Samsung Display Co., Ltd. (“SDC”) and the Preferred Stock was fully converted as of April 8, 2021. Immediately following the conversion, we repurchased and retired 35 million of the common shares held by SDC for an aggregate purchase price of approximately $1.5 billion, of which approximately $507 million was paid in April 2022 and 2021. The remaining payment of approximately $507 million was made in April 2023.

Share Repurchase Program

In 2019, the Board authorized the repurchase of up to $5.0 billion of additional common stock upon the completion of the 2018 repurchase plan (“2019 Authorization”).

During the three months ended  March 31, 2022 the Company repurchased 3.9 million shares of common stock on the open market for approximately $151 million as part of its 2019 Authorization. No shares were purchased on the open market during the three months ended March 31, 2023.

As of March 31, 2023, approximately $3.3 billion remains available under the Company's 2019 Authorization.

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Accumulated Other Comprehensive Loss

For the three months ended March 31, 2023 and 2022, the change in accumulated other comprehensive loss was primarily related to the foreign currency translation adjustment.

The following table presents the changes in the foreign currency translation adjustment component of accumulated other comprehensive loss, including the proportionate share of equity method affiliates' accumulated other comprehensive loss (in millions) ⁽¹⁾:

	Three months ended
	March 31,
	2023			2022
Beginning balance	$	(1,712	)	$	(933	)
Loss on foreign currency translation (2)		(83	)		(198	)
Equity method affiliates (3)		(1	)		(2	)
Net current-period other comprehensive loss		(84	)		(200	)
Ending balance	$	(1,796	)	$	(1,133	)

⁽¹⁾ All amounts are after tax. Amounts in parentheses indicate debits to accumulated other comprehensive loss.

⁽²⁾ For the three months ended March 31, 2023 and 2022, amounts are net of tax benefit of $16 million and $11 million, respectively.  

⁽³⁾ Tax effects are not significant.

13. Share-Based Compensation

For the three months ended March 31, 2023 and 2022, share-based compensation cost was $52 million and $42 million, respectively.  

Incentive Stock Plans

Time-Based Restricted Stock and Restricted Stock Units

The following table summarizes the changes in non-vested time-based restricted stock and restricted stock units for the  three months ended March 31, 2023:

				Weighted
	Number			average
	of shares			grant-date
	(in thousands)			fair value
Non-vested shares and share units at December 31, 2022		11,299		$	29.19
Granted		5,772			35.14
Vested		(218	)		30.33
Forfeited		(66	)		29.92
Non-vested shares and share units at March 31, 2023		16,787		$	31.22

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Performance-Based Restricted Stock Units

The following table summarizes the changes in non-vested performance-based restricted stock units for the three months ended March 31, 2023:

				Weighted
	Number			average
	of shares			grant-date
	(in thousands)			fair value
Non-vested share units at December 31, 2022		4,696		$	35.41
Granted		1,110			35.14
Vested		(719	)		33.88
Performance adjustments		107			40.95
Forfeited		(24	)		35.23
Non-vested share units at March 31, 2023		5,170		$	35.68

Stock Options

The following table summarizes information concerning stock options as of  March 31, 2023 and the related activity for the three months ended March 31, 2023:

						Weighted-
						average
				Weighted-		remaining		Aggregate
	Number			average		contractual		intrinsic
	of shares			exercise		term		value
	(in thousands)			price		(in years)		(in thousands)
Options outstanding as of December 31, 2022		9,665		$	22.92
Exercised		(833	)		19.68
Forfeited and expired		(32	)		19.65
Options outstanding as of March 31, 2023		8,800			23.24		5.72	$	105,985
Options expected to vest as of March 31, 2023		8,794			23.24		5.72		105,910
Options exercisable as of March 31, 2023		7,079			24.11		5.37		79,091

There were no stock options granted during the three months ended March 31, 2023 or 2022. 

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14. Reportable Segments

The Company has determined that it has five reportable segments for financial reporting purposes, as follows:

● Optical Communications – manufactures carrier network and enterprise network components for the telecommunications industry; the carrier network group consists primarily of products and solutions for optical-based communications infrastructure for services such as video, data and voice communications, and the enterprise network group consists primarily of optical-based communication networks sold to businesses, governments and individuals for their own use.

● Display Technologies – manufactures high quality glass substrates for flat panel displays, including liquid crystal displays and organic light-emitting diodes that are used primarily in televisions, notebook computers, desktop monitors, tablets and handheld devices.

● Specialty Materials – manufactures products that provide material formulations for glass, glass ceramics and fluoride crystals to meet demand for unique customer needs across a wide variety of commercial and industrial markets, including materials optimized for mobile consumer electronics, semiconductor equipment optics and consumables, aerospace and defense optics, radiation shielding products, sunglasses and telecommunications components.

● Environmental Technologies – manufactures ceramic substrates and filter products for emissions control systems in mobile applications.

● Life Sciences – develops, manufactures, and supplies laboratory products, including labware, equipment, media, serum and reagents, enabling workflow solutions for drug discovery and bioproduction.

All other businesses that do not meet the quantitative threshold for separate reporting have been grouped as Hemlock and Emerging Growth Businesses.  The net sales for this group are primarily attributable to Hemlock, which is an operating segment that produces solar and semiconductor products.  The emerging growth businesses primarily consist of Pharmaceutical Technologies, Auto Glass Solutions and the Emerging Innovations Group.  

Financial results for the reportable segments and Hemlock and Emerging Growth Businesses are prepared on a basis consistent with the internal disaggregation of financial information to assist the chief operating decision maker (“CODM”) in making internal operating decisions. As a significant portion of segment revenues and expenses are denominated in currencies other than the U.S. dollar, management believes it is important to understand the impact on segment net sales and segment net income of translating these currencies into U.S. dollars.  Therefore, the Company utilizes constant-currency reporting for the Display Technologies, Specialty Materials, Environmental Technologies and Life Sciences segments to exclude the impact on segment sales and segment net income (loss) from the Japanese yen, South Korean won, Chinese yuan, new Taiwan dollar and euro, as applicable to the segment.  The most significant constant-currency adjustment relates to the Japanese yen exposure within the Display Technologies segment.  Management utilizes constant-currency reporting based on internally-derived rates, as detailed below, which are closely aligned with the currencies we have hedged. 

The Company believes that the use of constant-currency reporting allows management to understand segment results without the volatility of currency fluctuation, analyze underlying trends in the businesses and establish operational goals and forecasts.  Further, it reflects the underlying economics of the translated earnings contracts used to mitigate the impact of changes in currency exchange rates on our earnings and cash flows.

Constant-currency rates are as follows and are applied to all periods presented:

Currency	Japanese yen	Korean won	Chinese yuan	New Taiwan dollar	Euro
Rate	¥107	₩1,175	¥6.7	NT$31	€.81

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In addition, certain income and expenses are excluded from segment net income (loss) and included in the unallocated amounts in the reconciliation of reportable segment net income to consolidated net income. These items are not used by the CODM in allocating resources or evaluating the results of the segments and include the following: the impact of translating the Japanese yen-denominated debt; the impact of the translated earnings contracts; acquisition-related costs; certain discrete tax items and other tax-related adjustments; restructuring, impairment and other charges and credits; certain litigation, regulatory and other legal matters; pension mark-to-market adjustments; and other non-recurring non-operational items. Although these amounts are excluded from segment results, they are included in reported consolidated results.

Corning’s administrative and staff functions are performed on a centralized basis and such costs and expenses are allocated among the segments differently than they would be for stand-alone financial reporting purposes. These include certain costs and expenses of shared services, such as information technology, human resources, legal, finance and supply chain management. Expenses that are not allocated to the segments are included in the reconciliation of reportable segment net income to consolidated net income. Segment net income (loss) may not be consistent with measures used by other companies.

Segment Information (in millions):

																Hemlock
																and
																Emerging
	Optical			Display			Specialty			Environmental			Life			Growth
	Communications			Technologies			Materials			Technologies			Sciences			Businesses			Total
Three months ended March 31, 2023
Segment net sales	$	1,125		$	763		$	406		$	431		$	256		$	386		$	3,367
Depreciation (1)	$	66		$	123		$	35		$	33		$	17		$	33		$	307
Research, development and engineering expenses (2)	$	60		$	23		$	53		$	24		$	10		$	39		$	209
Income tax provision (3)	$	(43	)	$	(42	)	$	(10	)	$	(22	)	$	(2	)	$	(9	)	$	(128	)
Segment net income	$	159		$	160		$	39		$	82		$	9		$	16		$	465

																Hemlock
																and
																Emerging
	Optical			Display			Specialty			Environmental			Life			Growth
	Communications			Technologies			Materials			Technologies			Sciences			Businesses			Total
Three months ended March 31, 2022
Segment net sales	$	1,198		$	959		$	493		$	409		$	310		$	375		$	3,744
Depreciation (1)	$	59		$	156		$	40		$	33		$	14		$	38		$	340
Research, development and engineering expenses (2)	$	55		$	31		$	53		$	25		$	9		$	40		$	213
Income tax provision (3)	$	(45	)	$	(63	)	$	(20	)	$	(20	)	$	(11	)	$	(1	)	$	(160	)
Segment net income (loss)	$	166		$	236		$	75		$	74		$	42		$	(8	)	$	585

(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 reflects a tax rate of 21%.

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The following table presents a reconciliation of net sales of reportable segments to consolidated net sales (in millions):

	Three months ended
	March 31,
	2023			2022
Net sales of reportable segments	$	2,981		$	3,369
Net sales of Hemlock and Emerging Growth Businesses		386			375
Impact of constant currency reporting (1)		(189	)		(64	)
Consolidated net sales	$	3,178		$	3,680

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

The following table presents a reconciliation of net income of reportable segments to consolidated net income (in millions):

	Three months ended
	March 31,
	2023			2022
Net income of reportable segments	$	449		$	593
Net income (loss) of Hemlock and Emerging Growth Businesses		16			(8	)
Unallocated amounts:
Impact of constant currency reporting		(149	)		(63	)
(Loss) gain on foreign currency hedges related to translated earnings		(8	)		129
Translation gain on Japanese yen-denominated debt		18			84
Research, development, and engineering expenses		(45	)		(35	)
Amortization of intangibles		(31	)		(31	)
Interest expense, net		(56	)		(61	)
Income tax benefit (provision)		91			(20	)
Restructuring, impairment and other charges and credits		(66	)		(33	)
Gain on sale of business					53
Other corporate items		(43	)		(27	)
Net income attributable to Corning Incorporated	$	176		$	581

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Corning Incorporated and its consolidated subsidiaries are hereinafter sometimes referred to as the “Company,” the “Registrant,” “Corning,” “we,” “our,” or “us.”

This report contains forward-looking statements that involve a number of risks and uncertainties. These statements relate to plans, objectives, expectations and estimates and may contain words such as “believes,” “expects,” “anticipates,” “estimates,” “forecasts,” or similar expressions. Actual results could differ materially from what is expressed or forecasted in forward-looking statements. Some of the factors that could contribute to these differences include those discussed under “Forward-Looking Statements,” “Risk Factors,” “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” and elsewhere in this report.

ORGANIZATION OF INFORMATION

The following Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) was prepared to provide a historical and prospective narrative on our financial condition and results of operations through the eyes of management and should be read in conjunction with our MD&A of our Annual Report on Form 10-K for the year ended December 31, 2022 (“2022 Form 10-K”).

Our MD&A is organized as follows:

● Overview

● Results of Operations

● Segment Analysis

● Core Performance Measures

● Liquidity and Capital Resources

● Environment

● Critical Accounting Estimates

● Forward-Looking Statements

OVERVIEW

Corning Incorporated is central to the advancement of the industries we serve and secular trends touching many facets of daily life. It all starts with our focused and cohesive portfolio. We maintain clear leadership in three core technologies and four proprietary manufacturing and engineering platforms. We apply new combinations of our assets and capabilities to solve a broad range of significant challenges and shape new industries in tandem with our customers. By reapplying and repurposing our insights and assets across multiple opportunities and markets, we increase our profitably. Importantly, as we partner closely with our customers to realize their visions and help solve their toughest technology challenges, we unlock new ways to integrate more of our content into their ecosystems. This “More Corning” approach provides a powerful value-creation lever. We’re not just relying on people buying more stuff; we’re driving more Corning content into the products they’re already buying.

Our accomplishments over the past several years illustrate the efficacy of our approach. Despite the challenging external environment, we have advanced fiber-to-the-home and data center solutions in Optical Communications, delivered on our gasoline particulate filter content opportunity in Environmental Technologies, introduced Ceramic Shield with Apple in Specialty Materials and ramped our Gen 10.5 plants to extend our leadership in Display Technologies. In addition, we made major progress on our emerging innovations; we gained significant traction in our Automotive Glass Solutions business; and our pharmaceutical packaging portfolio played a central role in combatting the global pandemic. These achievements have helped extend our leadership positions across our markets and pave the way for future growth.

At the same time, profitability and cash flow have lagged sales growth. Since 2020, the external environment has been characterized by the impact of the pandemic and its resulting effects including supply chain disruptions, large swings in consumer spending and inflation. Our core priorities throughout this period were protecting our people and delivering for our customers, and as a result, we operated with elevated staffing and higher-than-normal inventory levels during this period leading to reduced productivity. In addition, persistent inflation added to the cost of raw materials we purchased, the cost to produce and ship our products and the inventory we maintained.

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In response, we took a series of actions to improve profitability and cash generation throughout 2022 and into 2023. We took multiple additional actions, including raising prices across our businesses to more appropriately share inflationary costs with our customers; adjusting our productivity ratios closer to historical metrics without impacting our ability to supply and capture future growth; and normalizing inventory levels. We expect these actions to improve profitability and cash flow throughout 2023, and they began delivering notable results in the first quarter.

Overall, we will continue to focus on operating each of our businesses well and adjusting to meet the needs of the moment while simultaneously advancing growth initiatives and capabilities that will drive continued success as the global economy stabilizes. Our focused and cohesive portfolio provides strategic resilience that is evident in our results, even in the current environment. We remain confident in our relevance to long-term secular trends and our “More Corning” approach, and we are well positioned to capture durable, profitable growth as the global economy improves.

Summary of results for the three months ended March 31, 2023

For the three months ended March 31, 2023, net sales were $3,178 million, compared to $3,680 million for the three months ended March 31, 2022, a net decrease of $502 million, or 14%, primarily driven by decreased sales in Display Technologies of $196 million, Specialty Materials of $87 million, Optical Communications of $73 million and Life Sciences of $54 million. In addition, movements in foreign exchange rates adversely impacted Corning’s consolidated net sales by $116 million for the three months ended March 31, 2023, when compared to the same period in 2022.

For the three months ended March 31, 2023, Corning generated net income attributable to Corning Incorporated of $176 million compared to $581 million for the three months ended March 31, 2022. The decrease of $405 million was primarily driven by a decrease in segment net income in Display Technologies of $76 million, Specialty Materials of $36 million, and Life Sciences of $33 million, a $105 million decrease in translated earnings contract gains and a $50 million decrease of translation gains on our Japanese yen-denominated debt. In addition, movements in foreign exchange rates adversely impacted the results by $32 million for the three months ended March 31, 2023, when compared to the same period in 2022. As a result of the decrease in net income attributable to Corning Incorporated, diluted earnings per share for the three months ended March 31, 2023 was $0.20 per diluted share compared to $0.68 per diluted share for the three months ended March 31, 2022.

2023 Corporate Outlook

We expect core net sales of approximately $3.4 billion to $3.6 billion for the second quarter of 2023.  

22

RESULTS OF OPERATIONS

The following table presents selected highlights from our operations (in millions):

	Three months ended						%
	March 31,						change
	2023			2022			23 vs. 22
Net sales	$	3,178		$	3,680			(14	%)
Gross margin	$	1,003		$	1,283			(22	%)
(gross margin %)		32	%		35	%
Selling, general and administrative expenses	$	421		$	434			(3	%)
(as a % of net sales)		13	%		12	%
Research, development and engineering expenses	$	254		$	248			2	%
(as a % of net sales)		8	%		7	%
Translated earnings contract (loss) gain, net	$	(8	)	$	129			*
(as a % of net sales)		*			4	%
Income before income taxes	$	228		$	783			(71	%)
(as a % of net sales)		7	%		21	%
Provision for income taxes	$	(37	)	$	(180	)		(79	%)
Effective tax rate		16	%		23	%
Net income attributable to Corning Incorporated	$	176		$	581			(70	%)
(as a % of net sales)		6	%		16	%
Comprehensive income attributable to Corning Incorporated	$	109		$	394			(72	%)

* Not meaningful

Net Sales 

Net sales for the three months ended March 31, 2023 decreased by $502 million, or 14%, when compared to the same period in 2022. The decrease was primarily driven by decreased segment sales in Display Technologies of $196 million, Specialty Materials of $87 million, Optical Communications of $73 million and Life Sciences of $54 million. Refer to the “Segment Analysis” section of our MD&A below for a discussion of net sales by segment.

Cost of Sales / Gross Margin

The types of expenses included in the cost of sales line item are: raw materials consumption, including direct and indirect materials; salaries, wages and benefits; depreciation and amortization; production utilities; production-related purchasing; warehousing (including receiving and inspection); repairs and maintenance; inter-location inventory transfer costs; production and warehousing facility property insurance; rent for production facilities; freight and logistics costs; and other production overhead.

For the three months ended March 31, 2023, gross margin decreased by $280 million, or 22%, and declined as a percentage of sales by 3 percentage points when compared to the same period in 2022. The decline in gross margin was primarily driven by higher production costs as a result of the decline in sales volume across the businesses. In addition, movements in foreign exchange rates adversely impacted Corning’s consolidated gross margin by $75 million for the three months ended March 31, 2023 when compared to the same period in 2022.

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Selling, General and Administrative Expenses

For the three months ended March 31, 2023, selling, general and administrative expenses decreased by $13 million, or 3%, and were fairly consistent as a percentage of sales when compared to the same period in 2022.

The types of expenses included in the selling, general and administrative expenses line item are salaries, wages and benefits; share-based compensation expense; travel; sales commissions; professional fees; and depreciation and amortization, utilities and rent for administrative facilities.

Research, Development and Engineering Expenses

For the three months ended March 31, 2023, research, development and engineering expenses increased by $6 million, or 2%, and were fairly consistent as a percentage of sales when compared to the same period in 2022.

Translated earnings contract (loss) gain, net

Included in translated earnings contract (loss) gain, net, is the impact of foreign currency contracts which economically hedge the translation exposure arising from movements in the Japanese yen, South Korean won, new Taiwan dollar, euro, Chinese yuan and British pound and its impact on net income.

The following table provides detailed information on the impact of translated earnings contract (loss) gain, net (in millions):

	Three months ended						Three months ended				Change
	March 31, 2023						March 31, 2022				2023 vs. 2022
	Income						Income				Income
	before			Net			before		Net		before			Net
	tax			income			tax		income		tax			income
Hedges related to translated earnings:
Realized gain, net (1)	$	67		$	52		$	33	$	25	$	34		$	27
Unrealized (loss) gain, net (2)		(75	)		(58	)		96		74		(171	)		(132	)
Total translated earnings contract (loss) gain, net	$	(8	)	$	(6	)	$	129	$	99	$	(137	)	$	(105	)

⁽¹⁾ For the three months ended March 31, 2023 and 2022, amount includes pre-tax realized losses of $14 million and $7 million, respectively, related to the expiration of option contracts.  These amounts were reflected within operating activities in the consolidated statements of cash flows.

⁽²⁾ The impact to income for the three months ended March 31, 2023 and 2022 was primarily driven by Japanese yen and South Korean won-denominated hedges of translated earnings. 

Income Before Income Taxes

The translation impact of fluctuations in foreign currency exchange rates, including the impact of hedges realized in the current period, adversely impacted Corning’s consolidated income before income taxes by $40 million for the three months ended March 31, 2023 when compared to the same period in 2022.

Provision for Income Taxes

For the three months ended March 31, 2023, the effective tax rate differed from the U.S. statutory rate of 21%, primarily due to differences arising from foreign earnings and a net benefit due to foreign derived intangible income.

For the three months ended March 31, 2022, the effective tax rate differed from the U.S. statutory rate of 21%, primarily due to changes in tax reserves and the impact of changes in tax legislation, partially offset by differences arising from foreign earnings.

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Net Income Attributable to Corning Incorporated

As a result of the items discussed above, net income attributable to Corning Incorporated and per share data were as follows (in millions, except per share amounts):

	Three months ended
	March 31,
	2023		2022
Net income attributable to Corning Incorporated	$	176	$	581
Basic earnings per common share	$	0.21	$	0.69
Diluted earnings per common share	$	0.20	$	0.68
Weighted-average common shares outstanding - basic		844		843
Weighted-average common shares outstanding - diluted		859		859

Comprehensive Income attributable to Corning Incorporated

Comprehensive income attributable to Corning Incorporated for the three months ended March 31, 2023 was $109 million compared to $394 million for the three months ended March 31, 2022. This decrease is primarily due to the $412 million decrease in net income attributable to Corning Incorporated and a decrease in net losses on foreign currency translation adjustments of $116 million, primarily driven by the Japanese yen and South Korean won.

25

SEGMENT ANALYSIS

Financial results for the reportable segments and Hemlock and Emerging Growth Businesses are prepared on a basis consistent with the internal disaggregation of financial information to assist the Chief Operating Decision Maker (“CODM”) in making internal operating decisions, which is more fully discussed within Note 14 (Reportable Segments) in the accompanying notes to the consolidated financial statements and includes a reconciliation of our segment information to the corresponding amounts in our consolidated statements of income.

Segment net income (loss) may not be consistent with measures used by other companies.

The following table presents segment net sales by reportable segment and Hemlock and Emerging Growth Businesses (in millions):

	Three months ended				$			%
	March 31,				change			change
	2023		2022		23 vs. 22			23 vs. 22
Optical Communications	$	1,125	$	1,198	$	(73	)		(6	)%
Display Technologies		763		959		(196	)		(20	)%
Specialty Materials		406		493		(87	)		(18	)%
Environmental Technologies		431		409		22			5	%
Life Sciences		256		310		(54	)		(17	)%
Net sales of reportable segments		2,981		3,369		(388	)		(12	)%
Hemlock and Emerging Growth Businesses		386		375		11			3	%
Net sales of reportable segments and Hemlock and Emerging Growth Businesses (1)	$	3,367	$	3,744	$	(377	)		(10	)%

⁽¹⁾ Refer to Note 14 (Reportable Segments) in the accompanying notes to the consolidated financial statements for the reconciliation to consolidated net sales.

Optical Communications

The decrease in segment net sales was primarily driven by a decline in sales volume for carrier products due to the timing of several large customer projects.

Display Technologies 

The decrease in segment net sales was due to lower volumes, primarily attributable to the slow recovery of panel maker utilization, while price remained relatively consistent.

Specialty Materials 

The decrease in segment net sales was primarily driven by lower demand in the smartphone, tablet and notebook markets, partially offset by continued demand for advanced optics.

Environmental Technologies 

The increase in segment net sales was primarily driven by increased demand of gasoline particulate filters as well as increased sales of light-duty and heavy-duty diesel products due to supply chain inventory replenishment.

Life Sciences 

The decrease in segment net sales was impacted by the lower demand for COVID-related products and the impact of customers drawing down their inventory.

Hemlock and Emerging Growth Businesses

The increase in segment net sales was primarily driven by increase in sales from our Pharmaceutical Technologies business, partially offset by a slight decrease in Hemlock sales due to a decline in solar prices.

26

The following table presents segment net income (loss) by reportable segment and Hemlock and Emerging Growth Businesses (in millions):

	Three months ended					$			%
	March 31,					change			change
	2023		2022			23 vs. 22			23 vs. 22
Optical Communications	$	159	$	166		$	(7	)		(4	)%
Display Technologies		160		236			(76	)		(32	)%
Specialty Materials		39		75			(36	)		(48	)%
Environmental Technologies		82		74			8			11	%
Life Sciences		9		42			(33	)		(79	)%
Net income of reportable segments		449		593			(144	)		(24	)%
Hemlock and Emerging Growth Businesses		16		(8	)		24			*
Net income of reportable segments and Hemlock and Emerging Growth Businesses (1)	$	465	$	585		$	(120	)		(21	)%

* Not meaningful

⁽¹⁾ Refer to Note 14 (Reportable Segments) in the accompanying notes to the consolidated financial statements for the reconciliation to consolidated net income.

Optical Communications

The decrease in segment net income was primarily driven by a decline in sales volume, as outlined above, partially offset by improvements from pricing and productivity actions.

Display Technologies

The decrease in segment net income was primarily driven by lower glass volume, impacting sales, as outlined above.

Specialty Materials

The decrease in segment net income was primarily driven by the decline in sales volume, as outlined above, and impacted by continued development spending related to next-generation products.

Environmental Technologies

The increase in segment net income was primarily driven by the increase in sales, as outlined above.

Life Sciences

The decrease in segment net income was primarily driven by lower sales volume, as outlined above, and the impact of reducing our production levels.

Hemlock and Emerging Growth Businesses

The increase in segment net income was primarily driven by our Pharmaceutical Technologies business, due to the increased sales as outlined above, and improvements resulting from productivity actions.

27

CORE PERFORMANCE MEASURES

In managing the Company and assessing our financial performance, we adjust certain measures provided by our consolidated financial statements to exclude specific items to arrive at our core performance measures. These items include the impact of translating the Japanese yen-denominated debt, the impact of the translated earnings contracts, acquisition-related costs, certain discrete tax items and other tax-related adjustments, restructuring, impairment and other charges and credits, certain litigation, regulatory and other legal matters, pension mark-to-market adjustments and other items which do not reflect the ongoing operating results of the Company.

In addition, because a significant portion of our revenues and expenses are denominated in currencies other than the U.S. dollar, management believes it is important to understand the impact on sales and net income of translating these currencies into U.S. dollars. Therefore, management utilizes constant-currency reporting for the Display Technologies, Specialty Materials, Environmental Technologies and Life Sciences segments to exclude the impact from the Japanese yen, South Korean won, Chinese yuan, new Taiwan dollar and euro, as applicable to the segment. The most significant constant-currency adjustment relates to the Japanese yen exposure within the Display Technologies segment. We establish constant-currency rates based on internally derived management estimates, which are closely aligned with the currencies we have hedged. For details of the rates used, please see the footnotes to the “Reconciliation of Non-GAAP Measures” section.

We believe that the use of constant-currency reporting allows management to understand our results without the volatility of currency fluctuation, analyze underlying trends in the businesses and establish operational goals and forecasts. Further, we believe it reflects the underlying economics of the translated earnings contracts used to mitigate the impact of changes in currency exchange rates on our earnings and cash flows.

Core performance measures are not prepared in accordance with GAAP, but management believes that reporting core performance measures provides investors with greater transparency to the information used by our management team to make financial and operational decisions.  We believe investors should consider these non-GAAP measures in evaluating results as they are more indicative of our core operating performance and how management evaluates operational results and trends. These measures are not, and should not be viewed as a substitute for, GAAP reporting measures. With respect to the outlook for future periods, it is not possible to provide reconciliations for these non-GAAP measures because management does not forecast the movement of foreign currencies against the U.S. dollar, or other items that do not reflect ongoing operations, nor does it forecast items that have not yet occurred or are out of management’s control. As a result, management is unable to provide outlook information on a GAAP basis.

For a reconciliation of non-GAAP performance measures to their most directly comparable GAAP financial measure, please see “Reconciliation of Non-GAAP Measures.”

28

RESULTS OF OPERATIONS – CORE PERFORMANCE MEASURES

The following table presents selected highlights from our operations, excluding certain items (in millions):

	Three months ended				%
	March 31,				change
	2023		2022		23 vs. 22
Core net sales	$	3,367	$	3,744		(10	)%
Core net income	$	350	$	465		(25	)%

Core Net Sales 

Core net sales are consistent with net sales by reportable segment and Hemlock and Emerging Growth Businesses. Segment and Hemlock and Emerging Growth Businesses net sales and variances are discussed in detail in the “Segment Analysis” section of our MD&A.

Core Net Income

For the three months ended March 31, 2023, we generated core net income of $350 million, or $0.41 per core diluted share, compared to core net income generated for the three months ended March 31, 2022 of $465 million, or $0.54 per core diluted share.  The decrease of $115 million, or $0.13 per core diluted share, was primarily due to lower core net income for Display Technologies of $76 million, Specialty Materials of $36 million and Life Sciences of $33 million. This was partially offset by higher core net income for Environmental Technologies of $8 million and Hemlock and Emerging Growth Businesses of $24 million. Segment and Hemlock and Emerging Growth Businesses net sales and variances are discussed in detail in the “Segment Analysis” section of our MD&A.

Core Earnings per Common Share

Core earnings per share decreased for the three months ended March 31, 2023 to $0.41 per share, primarily as a result of the changes in core net income, outlined above.

The following table sets forth the computation of core basic and core diluted earnings per common share (in millions, except per share amounts):

	Three months ended
	March 31,
	2023		2022
Core net income	$	350	$	465
Weighted-average common shares outstanding - basic		844		843
Effect of dilutive securities:
Stock options and other dilutive securities		15		16
Weighted-average common shares outstanding - diluted		859		859
Core basic earnings per common share	$	0.41	$	0.55
Core diluted earnings per common share	$	0.41	$	0.54

29

RECONCILIATION OF NON-GAAP MEASURES

We utilize certain financial measures and key performance indicators that are not calculated in accordance with GAAP to assess our financial and operating performance. A non-GAAP financial measure is defined as a numerical measure of a company’s financial performance that (i) excludes amounts, or is subject to adjustments that have the effect of excluding amounts, that are included in the comparable measure calculated and presented in accordance with GAAP in the consolidated statements of income or statements of cash flows, or (ii) includes amounts, or is subject to adjustments that have the effect of including amounts, that are excluded from the comparable measure as calculated and presented in accordance with GAAP in the consolidated statements of income or statements of cash flows.

Core net sales and core net income and the related per share numbers are non-GAAP financial measures utilized by management to analyze financial performance without the impact of items that are driven by general economic conditions and events that do not reflect the underlying fundamentals and trends in our operations.

See “Items Excluded from GAAP Measures” for the descriptions of the footnoted reconciling items.

The following tables reconcile our non-GAAP financial measures to their most directly comparable GAAP financial measure (amounts in millions, except percentages and per share amounts):

	Three months ended March 31, 2023
						Net income
						attributable
	Net		Income before			to Corning			Effective tax			Per
	sales		income taxes			Incorporated			rate (a)(b)			share
As reported – GAAP	$	3,178	$	228		$	176			16.2	%	$	0.20
Constant-currency adjustment (1)		189		149			114						0.13
Translation gain on Japanese yen-denominated debt (2)				(18	)		(14	)					(0.02	)
Translated earnings contract loss (3)				8			6						0.01
Acquisition-related costs (4)				34			20						0.02
Discrete tax items and other tax-related adjustments (5)							(2	)					(0.00	)
Restructuring, impairment and other charges and credits (6)				66			53						0.06
Pension mark-to-market adjustment (7)				10			8						0.01
Loss on investments (8)				4			4						0.00
Gain on sale of assets (9)				(20	)		(15	)					(0.02	)
Core performance measures	$	3,367	$	461		$	350			19.4	%	$	0.41

(a)	Based upon statutory tax rates in the specific jurisdiction for each event.
(b)	The calculation of the effective tax rate (“ETR”) excludes net income attributable to non-controlling interests (“NCI”).

	Three months ended March 31, 2022
						Net income
						attributable
	Net		Income before			to Corning			Effective tax			Per
	sales		income taxes			Incorporated			rate (a)(b)			share
As reported - GAAP	$	3,680	$	783		$	581			23.0	%	$	0.68
Constant-currency adjustment (1)		64		63			49						0.06
Translation gain on Japanese yen-denominated debt (2)				(84	)		(64	)					(0.07	)
Translated earnings contract gain (3)				(129	)		(99	)					(0.12	)
Acquisition-related costs (4)				39			32						0.04
Discrete tax items and other tax-related adjustments (5)							11						0.01
Restructuring, impairment and other charges and credits (6)				33			24						0.03
Pension mark-to-market adjustment (7)				(10	)		(8	)					(0.01	)
Gain on sale of business (10)				(53	)		(41	)					(0.05	)
Contingent consideration (11)				(26	)		(20	)					(0.02	)
Core performance measures	$	3,744	$	616		$	465			21.0	%	$	0.54

(a)	Based upon statutory tax rates in the specific jurisdiction for each event.
(b)	The calculation of the ETR excludes net income attributable to NCI.

See “Items Excluded from GAAP Measures” for the descriptions of the footnoted reconciling items.

30

Items Excluded from GAAP Measures

Items which we exclude from GAAP measures to arrive at core performance measures were as follows:

(1)	Constant-currency adjustment: As a significant portion of revenues and expenses are denominated in currencies other than the U.S. dollar, management believes it is important to understand the impact on sales and net income of translating these currencies into U.S. dollars. The Company utilizes constant-currency reporting for the Display Technologies, Specialty Materials, Environmental Technologies and Life Sciences segments for the Japanese yen, South Korean won, Chinese yuan, New Taiwan dollar and euro, as applicable to the segment.
	Currency	Japanese yen	Korean won	Chinese yuan	New Taiwan dollar	Euro
	Rate	¥107	₩1,175	¥6.7	NT$31	€.81
(2)	Translation of Japanese yen-denominated debt: Amount reflects the gain or loss on the translation of our yen-denominated debt to U.S. dollars.
(3)	Translated earnings contract: Amount reflects the impact of the realized and unrealized gains and losses from the Japanese yen, South Korean won, Chinese yuan, euro and new Taiwan dollar-denominated foreign currency hedges related to translated earnings, as well as the unrealized gains and losses of our British pound-denominated foreign currency hedges related to translated earnings.
(4)	Acquisition-related costs: Amount reflects intangible amortization, inventory valuation adjustments and external acquisition-related deal costs, as well as other transaction related costs.
(5)	Discrete tax items and other tax-related adjustments: Amount reflects certain discrete period tax items such as changes in tax law, the impact of tax audits, changes in tax reserves and changes in deferred tax asset valuation allowances, as well as other tax-related adjustments.
(6)	Restructuring, impairment and other charges and credits: Amount reflects certain restructuring, impairment losses and other charges and credits, as well as other expenses, primarily accelerated depreciation, asset write-offs and facility repairs resulting from power outages, which are not related to ongoing operations.
(7)	Pension mark-to-market adjustment: Amount primarily reflects defined benefit pension mark-to-market gains and losses, which arise from changes in actuarial assumptions and the difference between actual and expected returns on plan assets and discount rates.
(8)	Loss on investments: Amount primarily reflects the gain or loss recognized on investment due to mark-to-mark adjustments for the change in fair value or the disposition of the investment.
(9)	Gain on sale of assets: Amount represents the gain recognized for the sale assets.
(10)	Gain on sale of business:  Amount represents the gain recognized for the sale of a business.
(11)	Contingent consideration:  Amount reflects the fair value mark-to-market cost adjustment of contingent consideration resulting from the Hemlock transaction on September 9, 2020.

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LIQUIDITY AND CAPITAL RESOURCES

Our financial condition and liquidity are strong. We are not aware of any known trends, demands, commitments, events or uncertainties that will result in or that are reasonably likely to result in a material decrease in our liquidity. In addition, other than items discussed, there are no known material trends, favorable or unfavorable, in our capital resources and no expected material changes in the mix of such resources.

Our major source of funding for 2023 and beyond will be our operating cash flow, our existing balances of cash and cash equivalents and proceeds from any issuances of debt. We believe we have sufficient liquidity to fund operations, acquisitions, capital expenditures, scheduled debt repayments, dividend payments and share repurchase programs through 2023. We will continue to generate cash from operations and maintain access to our revolving credit facilities and commercial paper programs as discussed in more detail below.

Key Balance Sheet Data

We fund our working capital with cash from operations and short-term borrowings, including commercial paper, when necessary. In addition, we receive upfront cash from customers relating to long-term supply agreements, as well as cash incentives from government entities generally for capital expansion and related expenses.

The following table presents balance sheet and working capital measures (in millions):

	March 31,			December 31,
	2023			2022
Working capital	$	2,104		$	2,278
Current ratio	1.4:1			1.4:1
Trade accounts receivable, net of doubtful accounts	$	1,688		$	1,721
Days sales outstanding		48			45
Inventories	$	2,863		$	2,904
Inventory turns		3.3			3.4
Days payable outstanding (1)		49			52
Long-term debt	$	6,654		$	6,687
Total debt	$	6,851		$	6,911
Total debt to total capital		36	%		36	%

⁽¹⁾ Includes trade payables only.

We perform comprehensive reviews of our significant customers and their creditworthiness by analyzing their financial strength at least annually or more frequently for customers where we have identified a measure of increased risk. We closely monitor payments and developments to identify potential customer credit issues. We are not aware of any customer credit issues that could have a material impact on our liquidity.

We participate in accounts receivable management programs, including factoring arrangements to sell certain accounts receivable to third-party financial institutions or accelerate collections through our customer's supply chain financing arrangements. Sales of accounts receivable are reflected as a reduction of accounts receivable in the consolidated balance sheets and the proceeds are included in cash flows from operating activities in the consolidated statements of cash flows. By utilizing these types of programs, we have accelerated the collection of $435 million of accounts receivable during the three months ended March 31, 2023, which we believe would have been collected during the normal course of business in the following quarter.

32

Cash Flows

The following table presents a summary of cash flow data (in millions):

	Three months ended
	March 31,
	2023			2022
Net cash (used in) provided by operating activities	$	(49	)	$	534
Net cash used in investing activities	$	(228	)	$	(278	)
Net cash used in financing activities	$	(248	)	$	(375	)

Net cash from operating activities decreased by $583 million in the three months ended March 31, 2023, when compared to the same period in the prior year primarily driven by a decrease in net income of $412 million and increased cash outflows relating to working capital activity.

Net cash used in investing activities for the three months ended March 31, 2023 improved by $50 million when compared to the same period last year, primarily driven by a $41 million increase in realized gains on translated earnings contracts.

Net cash used in financing activities for the three months ended March 31, 2023 decreased by $127 million when compared to the same period last year, primarily driven by a decrease in purchases of treasury stock of $149 million.

Sources of Liquidity

As of March 31, 2023, our cash and cash equivalents and available credit capacity included (in millions):

	March 31,
	2023
Cash and cash equivalents	$	1,146
Available credit capacity:
U.S. dollar revolving credit facility	$	1,500
Japanese yen liquidity facility	$	188
Chinese yuan facilities	$	333

Cash and Cash Equivalents

As of March 31, 2023, we had $1.1 billion of cash and cash equivalents. Our cash and cash equivalents are held in various locations throughout the world and are generally unrestricted. We utilize a variety of strategies to ensure that our worldwide cash is available in the locations in which it is needed. As of March 31, 2023, approximately 63% of the consolidated cash and cash equivalents were held outside the U.S. 

If we distribute our foreign cash balances to the U.S. or to other foreign subsidiaries, we could be required to accrue and pay withholding taxes. We do not foresee a need to repatriate any earnings for which we asserted permanent reinvestment. However, to help fund cash needs of the U.S. or other international subsidiaries as they arise, we repatriate available cash from certain foreign subsidiaries whose earnings are not permanently reinvested.

33

Debt Facilities and Other Sources of Liquidity

We have a commercial paper program pursuant to which we may issue short-term, unsecured commercial paper notes up to a maximum aggregate principal amount outstanding at any one time of $1.5 billion. Under this program, we may issue paper from time to time and will use the proceeds for general corporate purposes. As of March 31, 2023, we did not have outstanding commercial paper.

Our $1.5 billion Revolving Credit Agreement is available to support obligations under the commercial paper program and for general corporate purposes, if needed. In addition, we have a 25 billion Japanese yen liquidity facility, equivalent to approximately $188 million. As of March 31, 2023, there were no amounts outstanding under these facilities.

Our Revolving Credit Agreement includes affirmative and negative covenants with which we must comply, including a leverage (debt to capital ratio) financial covenant. The required leverage ratio is a maximum of 60%. As of March 31, 2023, our leverage using this measure was approximately 36%. As of March 31, 2023, we were in compliance.

Our debt instruments contain customary event of default provisions, which allow the lenders the option of accelerating all obligations upon the occurrence of certain events. In addition, some of our debt instruments contain a cross default provision, whereby an uncured default exceeding a specified amount on one debt obligation, also would be considered a default under the terms of another debt instrument. As of March 31, 2023, we were in compliance with all such provisions.

We have access to certain unsecured variable rate loan facilities, with an aggregate capacity of 4,645 million Chinese yuan, equivalent to approximately $676 million, whose proceeds are used for capital investment and general corporate purposes.  As of March 31, 2023, borrowings totaled $343 million.

As a well-known seasoned issuer, we filed an automatic shelf registration for an undetermined amount of debt and equity securities with the SEC on December 4, 2020. Under this shelf registration we may offer, from time to time, debt securities, common stock, preferred stock, depositary shares and warrants. We plan to file a new shelf registration statement in the fourth quarter of 2023, prior to the expiration of the shelf registration statement currently in effect.

Uses of Cash

Fixed Rate Cumulative Convertible Preferred Stock, Series A

We had 2,300 outstanding shares of Fixed Rate Cumulative Convertible Preferred Stock, Series A (the “Preferred Stock”) as of December 31, 2020. On January 16, 2021, the Preferred Stock became convertible into 115 million common shares. On April 5, 2021, we executed the Share Repurchase Agreement (“SRA”) with Samsung Display Co., Ltd. (“SDC”) and the Preferred Stock was fully converted as of April 8, 2021. Immediately following the conversion, we repurchased and retired 35 million of the common shares held by SDC for an aggregate purchase price of approximately $1.5 billion, of which approximately $507 million was paid in April 2022 and 2021. The remaining payment of approximately $507 million was made in April 2023.

Stock Repurchases

In 2019, the Board authorized the repurchase of up to $5.0 billion of additional common stock upon the completion of the 2018 repurchase plan (“2019 Authorization”). As of March 31, 2023, approximately $3.3 billion remains available under our 2019 Authorization, which does not have an expiration date and may be amended or terminated by the Board of Directors at any time without prior notice.

Common Stock Dividends

On April 27, 2023, our Board of Directors declared a quarterly dividend of $0.28 per share of common stock. The dividend will be payable on June 29, 2023. The Board’s decision to declare and pay future dividends will depend on our income and liquidity position, among other factors. We expect to declare quarterly dividends and fund payments with cash from operations.

34

Capital Expenditures

Capital expenditures were $382 million for the three months ended March 31, 2023.  We expect our 2023 capital expenditures to be slightly lower than 2022.

Defined Benefit Pension Plans

Our global pension plans, including our unfunded and non-qualified plans, were 82% funded as of December 31, 2022. Our largest single pension plan is our U.S. qualified plan, which accounted for 77% of our consolidated defined benefit pension plans’ projected benefit obligation, was 93% funded as of December 31, 2022.

The funded status of our pension plans is dependent upon multiple factors including actuarial assumptions, interest rates at year-end, prior investment returns and contributions made to the plans. During 2023, the Company anticipates making cash contributions of $28 million to the international pension plans.

Commitments, Contingencies and Guarantees

There were no material changes outside the ordinary course of business in the obligations disclosed in the 2022 Form 10-K under the caption “Commitments, Contingencies and Guarantees.” 

Off Balance Sheet Arrangements

There were no material changes outside the ordinary course of business in off balance sheet arrangements as disclosed in the 2022 Form 10-K under the caption “Off Balance Sheet Arrangements.”

ENVIRONMENT 

Refer to Item 1. Legal Proceedings or Note 9 (Commitments and Contingencies) in the accompanying notes to the consolidated financial statements for information.

CRITICAL ACCOUNTING ESTIMATES

Our consolidated financial statements are prepared in conformity with accounting principles generally accepted in the United States of America. This requires us to make estimates and assumptions that affect reported amounts and related disclosures. Actual results could differ from those estimates. The estimates that are considered by management to be the most critical to the understanding of the consolidated financial statements as they require significant judgments that could materially impact our results of operations, financial position and cash flows are described in Management's Discussion and Analysis of Financial Condition and Results of Operations included in the Company's Annual Report on Form 10-K for the year ended December 31, 2022. Since the date of the Company's most recent Annual Report, there were no material changes in the Company's critical accounting estimates or assumptions.

35

FORWARD-LOOKING STATEMENTS

The statements in this Quarterly Report on Form 10-Q, in reports subsequently filed by Corning with the Securities and Exchange Commission (“SEC”) on Forms 10-Q and 8-K and related comments by management that are not historical facts or information and contain words such as “will,” “believe,” “anticipate,” “expect,” “intend,” “plan,” “seek,” “see,” “would,” and “target” and similar expressions are forward-looking statements. Such statements relate to future events that by their nature address matters that are, to different degrees, uncertain. These forward-looking statements relate to, among other things, the Company’s future operating performance, the Company’s share of new and existing markets, the Company's revenue and earnings growth rates, the Company’s ability to innovate and commercialize new products, the Company's expected capital expenditure and the Company’s implementation of cost-reduction initiatives and measures to improve pricing, including the optimization of the Company’s manufacturing capacity.

Although the Company believes that these forward-looking statements are based upon reasonable assumptions regarding, among other things, current estimates and forecasts, general economic conditions, its knowledge of its business and key performance indicators that impact the Company, there can be no assurance that these forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. The Company undertakes no obligation to update forward-looking statements if circumstances or management’s estimates or opinions should change except as required by applicable securities laws.

Some of the risks, uncertainties and other factors that could cause actual results to differ materially from those expressed in or implied by the forward-looking statements include, but are not limited to:

- global economic trends, competition and geopolitical risks, or an escalation of sanctions, tariffs or other trade tensions between the U.S. and China or other countries, and related impacts on our businesses' global supply chains and strategies;

- changes in macroeconomic and market conditions and market volatility, including developments and volatility arising from the COVID-19 pandemic, inflation, interest rates, the value of securities and other financial assets, precious metals, oil, natural gas and other commodity prices and exchange rates (particularly between the U.S. dollar and the Japanese yen, new Taiwan dollar, euro, Chinese yuan and South Korean won), the availability of government incentives, decreases or sudden increases of consumer demand, and the impact of such changes and volatility on our financial position and businesses;

- the duration and severity of the COVID-19 pandemic, and its impact across our businesses on demand, personnel, operations, our global supply chains and stock price;

- possible disruption in commercial activities or our supply chain due to terrorist activity, cyber-attack, armed conflict, political or financial instability, natural disasters, international trade disputes or major health concerns;

- loss of intellectual property due to theft, cyber-attack, or disruption to our information technology infrastructure;

- ability to enforce patents and protect intellectual property and trade secrets;

- unanticipated disruption to Corning’s, our suppliers’ and manufacturers’ supply chain, equipment, facilities, IT systems or operations;

- product demand and industry capacity;

- competitive products and pricing;

- availability and costs of critical components, materials, equipment, natural resources and utilities;

- new product development and commercialization;

- order activity and demand from major customers;

- the amount and timing of our cash flows and earnings and other conditions, which may affect our ability to pay our quarterly dividend at the planned level or to repurchase shares at planned levels;

- the amount and timing of any future dividends;

- the effects of acquisitions, dispositions and other similar transactions;

- the effect of regulatory and legal developments;

- ability to pace capital spending to anticipated levels of customer demand;

- our ability to increase margins through implementation of operational changes, pricing actions and cost reduction measures;

- rate of technology change;

- adverse litigation;

- product and component performance issues;

- retention of key personnel;

- customer ability to maintain profitable operations and obtain financing to fund ongoing operations and manufacturing expansions and pay receivables when due;

- loss of significant customers;

- changes in tax laws, regulations and international tax standards;

- the impacts of audits by taxing authorities; and

- the potential impact of legislation, government regulations, and other government action and investigations.

36

Item 3. Quantitative and Qualitative Disclosures About Market Risk

As noted in the 2022 Form 10-K, we operate and conduct business in many foreign countries and as a result are exposed to movements in foreign currency exchange rates. Our exposure to exchange rates has the following effects:

● Exchange rate movements on financial instruments and transactions denominated in foreign currencies that impact earnings; and

● Exchange rate movements upon conversion of net assets and net income of foreign subsidiaries for which the functional currency is not the U.S. dollar.

For a discussion of the Company’s exposure to market risk and how we mitigate that risk, refer to Part II, Item 7A, Quantitative and Qualitative Disclosures About Market Risks, contained in the 2022 Form 10-K.

Item 4. Controls and Procedures

Disclosure Controls and Procedures

Under the supervision of and with the participation of Corning’s management, including the chief executive officer and chief financial officer, we evaluated the effectiveness of the design and operation of the Company’s disclosure controls and procedures (as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended), as of March 31, 2023, the end of the period covered by this report. Based on that evaluation, we have concluded that the Company’s disclosure controls and procedures were effective as of that date. Corning’s disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by Corning in the reports that it files or submits under the Exchange Act is accumulated and communicated to Corning’s management, including Corning’s principal executive and principal financial officers, or other persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure.

Internal Control Over Financial Reporting

An evaluation of internal controls over financial reporting was performed to determine whether any changes have occurred during the period covered by this report that have materially affected, or are reasonably likely to materially affect, the internal control over financial reporting. The chief executive officer and chief financial officer concluded that there was no change in Corning’s internal control over financial reporting that materially affected, or is reasonably likely to materially affect, internal control over financial reporting.  

37

PART II

Item 1. Legal Proceedings

Corning is a defendant in various lawsuits and is subject to various claims that arise in the normal course of business, the most significant of which are summarized in Note 9 (Commitments and Contingencies) in the accompanying notes to the consolidated financial statements. In the opinion of management, the likelihood that the ultimate disposition of these matters will have a material adverse effect on the Company's consolidated financial position, liquidity, or results of operations, is remote.

Item 1A. Risk Factors

In addition to other information set forth in this report, you should carefully consider the factors discussed in Part I, Item 1A. Risk Factors in Corning’s 2022 Form 10-K, which could materially impact the Company’s business, financial condition or future results. Risks disclosed in the 2022 Form 10-K are not the only risks facing the Company. Additional risks and uncertainties not currently known to us or that we currently deem immaterial may materially adversely impact Corning’s business, financial condition or operating results.

38

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

This table provides information about purchases of common stock during the first quarter of 2023:

Issuer Purchases of Equity Securities

							Approximate
					Number of		dollar value of
					shares purchased		shares that may
	Total number		Average		as part of publicly		yet be purchased
	of shares		price paid		announced		under the
Period	purchased (1)		per share (2)		programs		programs
January 1 - 31, 2023		79,849	$	33.81
February 1 - 28, 2023		334,149		32.56
March 1 - 31, 2023		18,077		34.83
Total		432,075	$	32.89		—	$	3,301,085,426

(1)

This column reflects: (i) 320,043 shares of common stock related to the vesting of employee performance stock units; (ii) 99,009 shares of common stock related to the vesting of employee restricted stock units; (iii) 12,930 shares of common stock related to the vesting of employee restricted stock; and (iv) 93 shares of common stock related to the exercise of employee stock options and payment of the exercise price.

(2)

Represents the stock price at the time of surrender.

39

Item 6. Exhibits

(a)	Exhibits
	Exhibit Number	Exhibit Name
	31.1	Certification of Chief Executive Officer Pursuant to Rule 13a-14(a) under the Exchange Act
	31.2	Certification of Chief Financial Officer Pursuant to Rule 13a-14(a) under the Exchange Act
	32	Certification Pursuant to 18 U.S.C. Section 1350
	101.INS	Inline XBRL Instance Document
	101.SCH	Inline XBRL Taxonomy Extension Schema Document
	101.CAL	Inline XBRL Taxonomy Calculation Linkbase Document
	101.LAB	Inline XBRL Taxonomy Label Linkbase Document
	101.PRE	Inline XBRL Taxonomy Presentation Linkbase Document
	101.DEF	Inline XBRL Taxonomy Definition Document
	104	Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)

40

Signatures

Pursuant to the requirements of the Securities and Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	Corning Incorporated
	(Registrant)
April 28, 2023	/s/ Stefan Becker
Date	Stefan Becker
	Senior Vice President, Finance & Corporate Controller

41

EX-31.1

Exhibit 31.1

CHIEF EXECUTIVE OFFICER CERTIFICATION

I, Wendell P. Weeks, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Corning Incorporated (the registrant);

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal controls over financial reporting.

April 28, 2023

/s/ Wendell P. Weeks

Wendell P. Weeks

Chairman and Chief Executive Officer

(Principal Executive Officer)

EX-31.2

Exhibit 31.2

CHIEF FINANCIAL OFFICER CERTIFICATION

I, Edward A. Schlesinger, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Corning Incorporated (the registrant);

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal controls over financial reporting.

April 28, 2023

/s/ Edward A. Schlesinger

Edward A. Schlesinger

Executive Vice President and Chief Financial Officer

(Principal Financial Officer)

EX-32

Exhibit 32

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Corning Incorporated (the Company) on Form 10-Q for the period ended March 31, 2023, as filed with the Securities and Exchange Commission on the date hereof (the Report), we, Wendell P. Weeks, Chairman and Chief Executive Officer and Edward A. Schlesinger, Executive Vice President and Chief Financial Officer, of the Company, certify, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350, that:

(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated:  April 28, 2023

/s/ Wendell P. Weeks

Wendell P. Weeks

Chairman and Chief Executive Officer

/s/ Edward A. Schlesinger

Edward A. Schlesinger

Executive Vice President and Chief Financial Officer

XML

Document And Entity Information - shares	3 Months Ended
	Mar. 31, 2023	Apr. 21, 2023
Document Information [Line Items]
Entity Central Index Key	0000024741
Entity Registrant Name	CORNING INC /NY
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2023
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2023
Document Transition Report	false
Entity File Number	1-3247
Entity Incorporation, State or Country Code	NY
Entity Tax Identification Number	16-0393470
Entity Address, Address Line One	One Riverfront Plaza
Entity Address, City or Town	Corning
Entity Address, State or Province	NY
Entity Address, Postal Zip Code	14831
City Area Code	607
Local Phone Number	974-9000
Title of 12(b) Security	Common Stock, $0.50 par value per share
Trading Symbol	GLW
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		850,130,495

XML

Consolidated Statements of Income (Unaudited) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Net sales	$ 3,178	$ 3,680
Cost of sales	2,175	2,397
Gross margin	1,003	1,283
Operating expenses:
Selling, general and administrative expenses	421	434
Research, development and engineering expenses	254	248
Amortization of purchased intangibles	31	31
Operating income	297	570
Interest income	7	3
Interest expense	(76)	(71)
Translated earnings contract (loss) gain, net (Note 10)	(8)	129
Other income, net	8	152
Income before income taxes	228	783
Provision for income taxes (Note 3)	(37)	(180)
Net income	191	603
Net income attributable to non-controlling interest	(15)	(22)
Net income attributable to Corning Incorporated	$ 176	$ 581
Earnings per common share available to common shareholders:
Basic (Note 4) (in dollars per share)	$ 0.21	$ 0.69
Diluted (Note 4) (in dollars per share)	$ 0.20	$ 0.68

XML

Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Net income	$ 191	$ 603
Foreign currency translation adjustments and other	(84)	(200)
Unamortized losses and prior service costs for postretirement benefit plans	(4)	(1)
Realized and unrealized gains on derivatives	21	14
Other comprehensive loss, net of tax	(67)	(187)
Comprehensive income	124	416
Comprehensive income attributable to non-controlling interest	(15)	(22)
Comprehensive income attributable to Corning Incorporated	$ 109	$ 394

XML

Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Millions	Mar. 31, 2023	Dec. 31, 2022
Current assets:
Cash and cash equivalents	$ 1,146	$ 1,671
Trade accounts receivable, net of doubtful accounts - $27 and $40	1,688	1,721
Inventories (Note 5)	2,863	2,904
Other current assets	1,180	1,157
Total current assets	6,877	7,453
Property, plant and equipment, net of accumulated depreciation - $14,239 and $14,147	15,137	15,371
Goodwill, net	2,394	2,394
Other intangible assets, net	1,002	1,029
Deferred income taxes (Note 3)	1,106	1,073
Other assets	2,306	2,179
Total Assets	28,822	29,499
Current liabilities:
Current portion of long-term debt and short-term borrowings	197	224
Accounts payable	1,662	1,804
Other accrued liabilities (Notes 6 and 9)	2,914	3,147
Total current liabilities	4,773	5,175
Long-term debt (Note 7)	6,654	6,687
Postretirement benefits other than pensions (Note 8)	405	407
Other liabilities (Notes 6 and 9)	4,783	4,955
Total liabilities	16,615	17,224
Commitments and contingencies (Note 9)
Shareholders’ equity (Note 12):
Common stock – Par value $0.50 per share; Shares authorized 3.8 billion; Shares issued: 1.8 billion and 1.8 billion	911	910
Additional paid-in capital – common stock	16,746	16,682
Retained earnings	16,713	16,778
Treasury stock, at cost; Shares held: 977 million and 977 million	(20,548)	(20,532)
Accumulated other comprehensive loss	(1,897)	(1,830)
Total Corning Incorporated shareholders’ equity	11,925	12,008
Non-controlling interest	282	267
Total equity	12,207	12,275
Total Liabilities and Equity	$ 28,822	$ 29,499

XML

Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($) shares in Millions, $ in Millions	Mar. 31, 2023	Dec. 31, 2022
Doubtful accounts and allowances	$ 27	$ 40
Accumulated depreciation	$ 14,239	$ 14,147
Common stock, par value (in dollars per share)	$ 0.50	$ 0.50
Common stock, shares authorized (in shares)	3,800	3,800
Common stock, shares issued (in shares)	1,800	1,800
Treasury shares (in shares)	977	977

XML

Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Cash Flows from Operating Activities:
Net income	$ 191	$ 603
Adjustments to reconcile net income to net cash (used in) provided by operating activities:
Depreciation	310	342
Amortization of purchased intangibles	31	31
Gain on sale of business		(53)
Share-based compensation expense	52	42
Translation gain on Japanese yen-denominated debt	(18)	(84)
Deferred tax (benefit) provision	(38)	24
Translated earnings contract loss (gain)	8	(129)
Unrealized translation loss on transactions	33	20
Changes in assets and liabilities:
Trade accounts receivable	(28)	7
Inventories	17	(159)
Other current assets	(62)	(81)
Accounts payable and other current liabilities	(369)	77
Customer deposits and government incentives	(17)	(9)
Deferred income	(6)	(25)
Other, net	(153)	(72)
Net cash (used in) provided by operating activities	(49)	534
Cash Flows from Investing Activities:
Capital expenditures	(382)	(383)
Proceeds from sale of business		74
Realized gains on translated earnings contracts	81	40
Other, net	6	(9)
Net cash used in investing activities	(228)	(278)
Cash Flows from Financing Activities:
Repayments of short-term borrowings	(69)	(11)
Proceeds from other financing arrangements	54
Proceeds from exercise of stock options	16	18
Purchases of common stock for treasury		(149)
Dividends paid	(239)	(228)
Other, net	(10)	(5)
Net cash used in financing activities	(248)	(375)
Effect of exchange rates on cash		(13)
Net decrease in cash and cash equivalents	(525)	(132)
Cash and cash equivalents at beginning of period	1,671	2,148
Cash and cash equivalents at end of period	1,146	2,016
Related Party [Member]
Cash Flows from Investing Activities:
Proceeds from sale of equipment to related party	$ 67

XML

Consolidated Statements of Changes In Shareholders' Equity (Unaudited) - USD ($) $ in Millions		Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Treasury Stock, Common [Member]	AOCI Attributable to Parent [Member]	Parent [Member]	Noncontrolling Interest [Member]	Total
Balance at Dec. 31, 2021		$ 907	$ 16,475	$ 16,389	$ (20,263)	$ (1,175)	$ 12,333	$ 212	$ 12,545
Net income (loss)				581			581	22	603
Other comprehensive income (loss)						(187)	(187)		(187)
Shares issued to benefit plans and for option exercises		1	56				57		57
Common dividends				(233)			(233)		(233)
Other, net	[1]				(5)		(5)		(5)
Purchase of common stock for treasury					(151)		(151)		(151)
Balance at Mar. 31, 2022		908	16,531	16,737	(20,419)	(1,362)	12,395	234	12,629
Balance at Dec. 31, 2022		910	16,682	16,778	(20,532)	(1,830)	12,008	267	12,275
Net income (loss)				176			176	15	191
Other comprehensive income (loss)						(67)	(67)		(67)
Shares issued to benefit plans and for option exercises		1	64				65		65
Common dividends				(241)			(241)		(241)
Other, net	[1]				(16)		(16)		(16)
Balance at Mar. 31, 2023		$ 911	$ 16,746	$ 16,713	$ (20,548)	$ (1,897)	$ 11,925	$ 282	$ 12,207

[1] Treasury stock includes the deemed surrender to the Company of common stock to satisfy employee tax withholding obligations.

XML

Consolidated Statements of Changes In Shareholders' Equity (Unaudited) (Parentheticals) - $ / shares	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Common Dividends (in dollars per share)	$ 0.28	$ 0.27

XML

Note 1 - Significant Accounting Policies

3 Months Ended

Mar. 31, 2023

Notes to Financial Statements

Significant Accounting Policies [Text Block]

1. Summary of Significant Accounting Policies

Basis of Presentation and Principles of Consolidation

In these notes, the terms “Corning,” “Company,” “we,” “us,” or “our” mean Corning Incorporated and its subsidiary companies.

The consolidated financial statements include the consolidated accounts of Corning Incorporated and its subsidiaries consolidated in conformity with accounting principles generally accepted in the United States of America (“GAAP”). In the opinion of management, the accompanying unaudited consolidated financial statements contain all adjustments, which include normal recurring adjustments, necessary to state fairly the financial position, results of operations and cash flows for the periods presented. All intercompany accounts, transactions and profits have been eliminated. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been omitted pursuant to the rules and regulations of the United States Securities and Exchange Commission (“SEC”). These consolidated financial statements should be read in conjunction with the audited financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2022 (“2022 Form 10-K”). The results of operations for the interim periods are not necessarily indicative of results which may be expected for any other interim period or for the full year.

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, expenses and the disclosure of contingent assets and liabilities in the consolidated financial statements and related notes. Significant estimates and assumptions in these consolidated financial statements require the exercise of judgment. Due to the inherent uncertainty involved in making estimates, actual results reported in future periods may be different from these estimates. 

The non-controlling interest as recorded in the consolidated financial statements represents amounts attributable to the minority shareholders of Hemlock Semiconductor Group (“Hemlock”) and other less-than-wholly-owned consolidated subsidiaries.

Certain prior year amounts have been reclassified to conform to the current year presentation. These reclassifications had no material impact on the results of operations, financial position, or changes in shareholders’ equity.

XML

Note 2 - Revenue

3 Months Ended

Mar. 31, 2023

Notes to Financial Statements

Revenue from Contract with Customer [Text Block]

2. Revenue

Disaggregated Revenue

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

	Three months ended
	March 31,
	2023		2022
Telecommunication products	$	1,125	$	1,198
Display products		609		906
Specialty glass products		404		493
Environmental substrate and filter products		407		401
Life science products		247		307
Polycrystalline silicon products		277		282
All other products		109		93
Total revenue	$	3,178	$	3,680

Customer Deposits

As of March 31, 2023 and December 31, 2022, Corning had customer deposits of approximately $1.2 billion and $1.3 billion, respectively.  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 delivered to customers, Corning will recognize revenue and reduce the amount of the customer deposit liability.

For the three months ended March 31, 2023 and 2022, customer deposits recognized were $70 million and $83 million, respectively.

Refer to Note 6 (Other Liabilities) for additional information. 

Deferred Revenue

As of March 31, 2023 and December 31, 2022, Corning had deferred revenue of approximately $863 million and $869 million, respectively.  Deferred revenue was primarily related to the performance obligations of non-refundable consideration previously received by Hemlock 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 delivered compared to the remaining contractual units.  For the three months ended  March 31, 2023 and 2022, the amount of deferred revenue recognized in the consolidated statements of income was not material.

Refer to Note 6 (Other Liabilities) for additional information.  

XML

Note 3 - Income Taxes

3 Months Ended

Mar. 31, 2023

Notes to Financial Statements

Income Tax Disclosure [Text Block]

3. Income Taxes

The following table presents the provision for income taxes and the related effective tax rate (in millions, except percentages):

	Three months ended
	March 31,
	2023			2022
Provision for income taxes	$	(37	)	$	(180	)
Effective tax rate		16.2	%		23.0	%

For the three months ended March 31, 2023, the effective tax rate differed from the United States (“U.S.”) statutory rate of 21%, primarily due to differences arising from foreign earnings and a net benefit due to foreign derived intangible income.  For the three months ended March 31, 2022, the effective tax rate differed from the U.S. statutory rate of 21%, primarily due to changes in tax reserves and the impact of changes in tax legislation, partially offset by differences arising from foreign earnings.

Corning Precision Materials, a South Korean subsidiary, is currently appealing certain tax assessments and tax refund claims for tax years 2010 through 2019. The Company is required to deposit the disputed tax amounts with the South Korean government as a condition of its appeal of any tax assessments. Corning believes that it is more likely than not the Company will prevail in the appeals process. The non-current receivable balance was $358 million and $349 million as of March 31, 2023 and December 31, 2022, respectively, for the amount on deposit with the South Korean government.

XML

Note 4 - Earnings per Common Share

3 Months Ended

Mar. 31, 2023

Notes to Financial Statements

Earnings Per Share [Text Block]

4. Earnings Per Common Share

The following table presents the reconciliation of the amounts used to compute basic and diluted earnings per common share (in millions, except per share amounts):

	Three months ended
	March 31,
	2023		2022
Net income attributable to Corning Incorporated	$	176	$	581
Weighted-average common shares outstanding – basic		844		843
Effect of dilutive securities:
Stock options and other dilutive securities		15		16
Weighted-average common shares outstanding – diluted		859		859
Basic earnings per common share	$	0.21	$	0.69
Diluted earnings per common share	$	0.20	$	0.68
Anti-dilutive potential shares excluded from diluted earnings per common share:
Employee stock options and awards		5

XML

Note 5 - Inventories

3 Months Ended

Mar. 31, 2023

Notes to Financial Statements

Inventory Disclosure [Text Block]

5. Inventories

Inventories consisted of the following (in millions):

	March 31,		December 31,
	2023		2022
Finished goods	$	1,272	$	1,315
Work in process		607		571
Raw materials and accessories		518		537
Supplies and packing materials		466		481
Inventories	$	2,863	$	2,904

XML

Note 6 - Other Liabilities

3 Months Ended

Mar. 31, 2023

Notes to Financial Statements

Other Liabilities Disclosure [Text Block]

6. Other Liabilities

Other liabilities consisted of the following (in millions):

	March 31,		December 31,
	2023		2022
Current liabilities:
Wages and employee benefits	$	447	$	727
Income taxes		157		127
Derivative instruments (Note 10)		144		174
Deferred revenue (Note 2)		170		144
Customer deposits (Note 2)		165		132
Share repurchase liability (Note 12)		507		506
Short-term operating leases		100		111
Other current liabilities		1,224		1,226
Other accrued liabilities	$	2,914	$	3,147
Non-current liabilities:
Defined benefit pension plan liabilities	$	680	$	668
Derivative instruments (Note 10)		43		17
Deferred revenue (Note 2)		693		725
Customer deposits (Note 2)		1,038		1,137
Deferred tax liabilities		219		243
Long-term operating leases		846		795
Other non-current liabilities		1,264		1,370
Other liabilities	$	4,783	$	4,955

XML

Note 7 - Debt

3 Months Ended

Mar. 31, 2023

Notes to Financial Statements

Debt Disclosure [Text Block]

7. Debt

Based on borrowing rates currently available to us for loans with similar terms and maturities, the fair value of long-term debt was $6.4 billion and $6.1 billion as of March 31, 2023 and December 31, 2022, respectively, compared to the carrying value of $6.7 billion as of March 31, 2023 and December 31, 2022. 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.

Corning had no outstanding commercial paper as of March 31, 2023 and December 31, 2022.

XML

Note 8 - Employee Retirement Plans

3 Months Ended

Mar. 31, 2023

Notes to Financial Statements

Retirement Benefits [Text Block]

8. Employee Retirement Plans

Corning has defined benefit pension plans covering certain domestic and international employees. The Company may contribute, as necessary, an amount exceeding the minimum requirements to achieve the Company’s long-term funding targets. During 2023, the Company plans to make cash contributions of $28 million to international pension plans.

The following table presents the components of net periodic benefit expense for employee retirement plans, which other than the service cost component is recorded in other income, net in the consolidated statements of income (in millions):

	Pension benefits						Postretirement benefits
	Three months ended						Three months ended
	March 31,						March 31,
	2023			2022			2023			2022
Service cost	$	23		$	32		$	1		$	2
Interest cost		45			27			6			4
Expected return on plan assets		(46	)		(55	)
Amortization of actuarial net gain								(5	)
Amortization of prior service cost (credit)		2			1			(1	)		(1	)
Total pension and postretirement benefit expense	$	24		$	5		$	1		$	5

XML

Note 9 - Commitments and Contingencies

3 Months Ended

Mar. 31, 2023

Notes to Financial Statements

Commitments and Contingencies Disclosure [Text Block]

9. Commitments and Contingencies 

Corning is a defendant in various lawsuits and is subject to various claims that arise in the normal course of business, the most significant of which are summarized below. In the opinion of management, the likelihood that the ultimate disposition of these matters will have a material adverse effect on Corning’s consolidated financial position, liquidity, or results of operations, is remote.

Dow Corning Chapter 11 Related Matters

Until June 1, 2016, Corning and The Dow Chemical Company (“Dow”) each owned 50% of the common stock of Dow Corning Corporation (“Dow Corning”). On May 31, 2016, Corning and Dow realigned their ownership interest in Dow Corning. Following the realignment, Corning no longer owned any interest in Dow Corning. With the realignment, Corning agreed to indemnify Dow for 50% of Dow Corning’s non-ordinary course, pre-closing liabilities to the extent such liabilities exceed the amounts reserved for them by Dow Corning as of May 31, 2016, subject to certain conditions and limits.  Corning does not believe that its indemnity obligation will be material.

Dow Corning Environmental Claims

In September 2019, Dow formally notified Corning of certain environmental matters for which Dow asserts that it has, or will, experience losses arising from remediation and response at a number of sites.  In the event Dow is liable for these claims, Corning may be required to indemnify Dow for up to 50% of that liability, subject to certain conditions and limits.  As of March 31, 2023, Corning has determined a potential liability for these environmental matters is probable and the amount reserved was not material.

Environmental Litigation

Corning has been designated by federal or state governments under environmental laws, including Superfund, as a potentially responsible party that may be liable for cleanup costs associated with 19 hazardous waste sites.  It is Corning’s policy to accrue for its estimated liability related to such hazardous waste sites and other environmental liabilities related to property owned by Corning based on expert analysis and continual monitoring by both internal and external consultants.  As of  March 31, 2023 and December 31, 2022, Corning had accrued approximately $101 million and $109 million, respectively, for the estimated undiscounted liability for environmental cleanup and related litigation. Based upon the information developed to date, management believes that the accrued reserve is a reasonable estimate of the Company’s liability.

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Note 10 - Hedging Activities

3 Months Ended

Mar. 31, 2023

Notes to Financial Statements

Derivative Instruments and Hedging Activities Disclosure [Text Block]

10. Hedging Activities

Designated Hedges

Corning uses over-the-counter (“OTC”) foreign exchange forward contracts designated as cash flow hedges to reduce the risk that movements in exchange rates will adversely affect the net cash flows resulting from the sale of products to customers and purchases from suppliers. The total gross notional values for foreign currency cash flow hedges are $365 million and $419 million at March 31, 2023 and December 31, 2022, respectively, with maturities through 2024. Corning defers gains and losses related to cash flow hedges into accumulated other comprehensive loss on the consolidated balance sheets until the hedged item impacts earnings. At March 31, 2023, the amount expected to be reclassified into earnings within the next 12 months is a pre-tax gain of $29 million.

Corning has entered into leases of precious metals, with maturities through 2025. To offset the risk of changes in the fair value of the Company’s separate accounting pool of leased precious metals due to adverse changes in the respective market prices, Corning designated the bifurcated embedded derivatives included in these leases as fair value hedges. The gain or loss on the derivatives, as well as the offsetting loss or gain on the hedged item attributable to the hedged risk, are recognized in current earnings. The amounts representing the time value component of the derivatives are excluded from the assessment of effectiveness and amortized in earnings. The impact of the excluded component on Corning’s other comprehensive income and earnings is not material. The carrying amount of the leased precious metals pool, which is included within property, plant and equipment, net of accumulated depreciation in the consolidated balance sheets, is $185 million and $278 million, respectively, as of March 31, 2023 and December 31, 2022. The carrying amount of the leased precious metals pool includes cumulative fair value losses of $188 million and $95 million as of March 31, 2023 and December 31, 2022, respectively.

Undesignated Hedges

Corning uses OTC foreign exchange forward and option contracts not designated as hedging instruments for accounting purposes to offset economic currency risks. The undesignated hedges limit exposure to foreign functional currency fluctuations related to certain subsidiaries’ monetary assets, monetary liabilities and net earnings in foreign currencies. 

A significant portion of the Company’s non-U.S. revenue and expenses are denominated in Japanese yen, South Korean won, new Taiwan dollar, Chinese yuan and euro. When this revenue and these expenses are translated to U.S. dollars, the Company is exposed to foreign exchange rate movements. To protect translated earnings against movements in these currencies, the Company has entered into a series of average rate forwards and option contracts. Most of these contracts hedge a significant portion of the Company’s exposure to the Japanese yen, with maturities through 2024, and South Korean won, with maturities through 2026.

The following table summarizes the notional amounts and respective fair values of Corning’s derivative financial instruments on a gross basis as of  March 31, 2023 and December 31, 2022 (in millions):

					Asset derivatives					Liability derivatives
	Notional amount				Balance	Fair value				Balance	Fair value
	March		December		sheet	March		December		sheet	March			December
	31, 2023		31, 2022		location	31, 2023		31, 2022		location	31, 2023			31, 2022
Derivatives designated as hedging instruments (1)
Foreign exchange and precious metals lease contracts (1)	$	365	$	419	Other current assets	$	75	$	26	Other accrued liabilities				$	(1	)
					Other assets		146		78
Derivatives not designated as hedging instruments
Foreign exchange contracts		2,924		2,231	Other current assets		22		44	Other accrued liabilities	$	(18	)		(49	)
Translated earnings contracts		6,770		7,543	Other current assets		354		384	Other accrued liabilities		(126	)		(124	)
					Other assets		114		146	Other liabilities		(43	)		(17	)
Total derivatives	$	10,059	$	10,193		$	711	$	678		$	(187	)	$	(191	)

⁽¹⁾ As of  March 31, 2023, derivatives designated as hedging instruments include foreign exchange cash flow hedges with gross notional amounts of $365 million and fair value hedges of leased precious metals with gross notional amounts of 23,152 troy ounces.  As of  December 31, 2022, derivatives designated as hedging instruments include foreign exchange cash flow hedges with gross notional amounts of $419 million and fair value hedges of leased precious metals with gross notional amounts of 23,152 troy ounces. 

The following table summarizes the total gross notional value for translated earnings contracts as of  March 31, 2023 and December 31, 2022 (in billions):

	March 31,		December 31,
	2023		2022
Average rate forward contracts:
Japanese yen-denominated	$	0.2	$	0.1
South Korean won-denominated		2.0		2.1
Other foreign currencies (1)		0.8		0.7
Option contracts:
Japanese yen-denominated (2)		3.8		4.6
Total gross notional value for translated earning contracts	$	6.8	$	7.5

(1)	Denominational currencies for other average rate forward contracts include the Chinese yuan, New Taiwan dollar, euro and British pound.
(2)	Japanese yen-denominated option contracts include purchased put and call options, knock-out options, and zero-cost collars. With respect to the zero-cost collars, the gross notional amount includes the value of the put and call options. However, due to the nature of the zero-cost collars, only the put or call option can be exercised at maturity.

The fair values of these derivative contracts are recorded as either assets (gain position) or liabilities (loss position) on the consolidated balance sheets. Changes in the fair value of the derivative contracts are recorded currently in earnings within translated earnings contract (loss) gain, net in the consolidated statements of income.

The following tables summarize the effect in the consolidated statements of income relating to Corning’s derivative financial instruments (in millions).  The accumulated derivative gain included in accumulated other comprehensive loss on the consolidated balance sheets as of March 31, 2023 and December 31, 2022 is $44 million and $19 million, respectively.

	Three months ended March 31,
					Location of gain (loss)
	Gain recognized				reclassified from	Gain (loss) reclassified
Derivative hedging	in other comprehensive				accumulated	from accumulated
relationships for cash	income (OCI)				OCI into income	OCI into income
flow and fair value hedges	2023		2022		effective (ineffective)	2023			2022
					Net sales				$	10
					Cost of sales	$	7			7
Foreign exchange and precious metals lease contracts	$	32	$	34	Other income, net		(1	)		(1	)
Total cash flow and fair value hedges	$	32	$	34		$	6		$	16

		Gain (loss) recognized in income
		Three months ended
	Location of gain (loss)	March 31,
Undesignated derivatives	recognized in income	2023			2022
Foreign exchange contracts	Other income, net	$	13		$	26
Translated earnings contracts	Translated earnings contract (loss) gain, net		(8	)		129
Total undesignated		$	5		$	155

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Note 11 - Fair Value Measurements

3 Months Ended

Mar. 31, 2023

Notes to Financial Statements

Fair Value Disclosures [Text Block]

11. Fair Value Measurements

The following table provides fair value measurement information for the Company’s major categories of financial assets and liabilities measured on a recurring basis (in millions):

	March 31, 2023								December 31, 2022
	Total		Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3
Current assets:
Other current assets (1)	$	503	$	2	$	451	$	50	$	505	$	2	$	454	$	49
Non-current assets:
Other assets (1)	$	266	$	6	$	260			$	225			$	224	$	1
Current liabilities:
Other accrued liabilities (1)	$	144			$	144			$	174			$	174
Non-current liabilities:
Other liabilities (1)	$	60			$	60			$	34			$	34

⁽¹⁾ Derivative assets and liabilities include foreign exchange and precious metals lease contracts which were measured using observable inputs for similar assets and liabilities.

There were no significant financial assets and liabilities measured on a non-recurring basis as of March 31, 2023 and December 31, 2022.

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Note 12 - Shareholders' Equity

3 Months Ended

Mar. 31, 2023

Notes to Financial Statements

Equity [Text Block]

12. Shareholders’ Equity

Fixed Rate Cumulative Convertible Preferred Stock, Series A

We had 2,300 outstanding shares of Fixed Rate Cumulative Convertible Preferred Stock, Series A (the “Preferred Stock”) as of December 31, 2020. On January 16, 2021, the Preferred Stock became convertible into 115 million common shares. On April 5, 2021, we executed the Share Repurchase Agreement (“SRA”) with Samsung Display Co., Ltd. (“SDC”) and the Preferred Stock was fully converted as of April 8, 2021. Immediately following the conversion, we repurchased and retired 35 million of the common shares held by SDC for an aggregate purchase price of approximately $1.5 billion, of which approximately $507 million was paid in April 2022 and 2021. The remaining payment of approximately $507 million was made in April 2023.

Share Repurchase Program

In 2019, the Board authorized the repurchase of up to $5.0 billion of additional common stock upon the completion of the 2018 repurchase plan (“2019 Authorization”).

During the three months ended  March 31, 2022 the Company repurchased 3.9 million shares of common stock on the open market for approximately $151 million as part of its 2019 Authorization. No shares were purchased on the open market during the three months ended March 31, 2023.

As of March 31, 2023, approximately $3.3 billion remains available under the Company's 2019 Authorization.

Accumulated Other Comprehensive Loss

For the three months ended March 31, 2023 and 2022, the change in accumulated other comprehensive loss was primarily related to the foreign currency translation adjustment.

The following table presents the changes in the foreign currency translation adjustment component of accumulated other comprehensive loss, including the proportionate share of equity method affiliates' accumulated other comprehensive loss (in millions) ⁽¹⁾:

	Three months ended
	March 31,
	2023			2022
Beginning balance	$	(1,712	)	$	(933	)
Loss on foreign currency translation (2)		(83	)		(198	)
Equity method affiliates (3)		(1	)		(2	)
Net current-period other comprehensive loss		(84	)		(200	)
Ending balance	$	(1,796	)	$	(1,133	)

⁽¹⁾ All amounts are after tax. Amounts in parentheses indicate debits to accumulated other comprehensive loss.

⁽²⁾ For the three months ended March 31, 2023 and 2022, amounts are net of tax benefit of $16 million and $11 million, respectively.  

⁽³⁾ Tax effects are not significant.

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Note 13 - Share-based Compensation

3 Months Ended

Mar. 31, 2023

Notes to Financial Statements

Share-Based Payment Arrangement [Text Block]

13. Share-Based Compensation

For the three months ended March 31, 2023 and 2022, share-based compensation cost was $52 million and $42 million, respectively.  

Incentive Stock Plans

Time-Based Restricted Stock and Restricted Stock Units

The following table summarizes the changes in non-vested time-based restricted stock and restricted stock units for the  three months ended March 31, 2023:

				Weighted
	Number			average
	of shares			grant-date
	(in thousands)			fair value
Non-vested shares and share units at December 31, 2022		11,299		$	29.19
Granted		5,772			35.14
Vested		(218	)		30.33
Forfeited		(66	)		29.92
Non-vested shares and share units at March 31, 2023		16,787		$	31.22

Performance-Based Restricted Stock Units

The following table summarizes the changes in non-vested performance-based restricted stock units for the three months ended March 31, 2023:

				Weighted
	Number			average
	of shares			grant-date
	(in thousands)			fair value
Non-vested share units at December 31, 2022		4,696		$	35.41
Granted		1,110			35.14
Vested		(719	)		33.88
Performance adjustments		107			40.95
Forfeited		(24	)		35.23
Non-vested share units at March 31, 2023		5,170		$	35.68

Stock Options

The following table summarizes information concerning stock options as of  March 31, 2023 and the related activity for the three months ended March 31, 2023:

						Weighted-
						average
				Weighted-		remaining		Aggregate
	Number			average		contractual		intrinsic
	of shares			exercise		term		value
	(in thousands)			price		(in years)		(in thousands)
Options outstanding as of December 31, 2022		9,665		$	22.92
Exercised		(833	)		19.68
Forfeited and expired		(32	)		19.65
Options outstanding as of March 31, 2023		8,800			23.24		5.72	$	105,985
Options expected to vest as of March 31, 2023		8,794			23.24		5.72		105,910
Options exercisable as of March 31, 2023		7,079			24.11		5.37		79,091

There were no stock options granted during the three months ended March 31, 2023 or 2022. 

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Note 14 - Reportable Segments

3 Months Ended

Mar. 31, 2023

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

14. Reportable Segments

The Company has determined that it has five reportable segments for financial reporting purposes, as follows:

● Optical Communications – manufactures carrier network and enterprise network components for the telecommunications industry; the carrier network group consists primarily of products and solutions for optical-based communications infrastructure for services such as video, data and voice communications, and the enterprise network group consists primarily of optical-based communication networks sold to businesses, governments and individuals for their own use.

● Display Technologies – manufactures high quality glass substrates for flat panel displays, including liquid crystal displays and organic light-emitting diodes that are used primarily in televisions, notebook computers, desktop monitors, tablets and handheld devices.

● Specialty Materials – manufactures products that provide material formulations for glass, glass ceramics and fluoride crystals to meet demand for unique customer needs across a wide variety of commercial and industrial markets, including materials optimized for mobile consumer electronics, semiconductor equipment optics and consumables, aerospace and defense optics, radiation shielding products, sunglasses and telecommunications components.

● Environmental Technologies – manufactures ceramic substrates and filter products for emissions control systems in mobile applications.

● Life Sciences – develops, manufactures, and supplies laboratory products, including labware, equipment, media, serum and reagents, enabling workflow solutions for drug discovery and bioproduction.

All other businesses that do not meet the quantitative threshold for separate reporting have been grouped as Hemlock and Emerging Growth Businesses.  The net sales for this group are primarily attributable to Hemlock, which is an operating segment that produces solar and semiconductor products.  The emerging growth businesses primarily consist of Pharmaceutical Technologies, Auto Glass Solutions and the Emerging Innovations Group.  

Financial results for the reportable segments and Hemlock and Emerging Growth Businesses are prepared on a basis consistent with the internal disaggregation of financial information to assist the chief operating decision maker (“CODM”) in making internal operating decisions. As a significant portion of segment revenues and expenses are denominated in currencies other than the U.S. dollar, management believes it is important to understand the impact on segment net sales and segment net income of translating these currencies into U.S. dollars.  Therefore, the Company utilizes constant-currency reporting for the Display Technologies, Specialty Materials, Environmental Technologies and Life Sciences segments to exclude the impact on segment sales and segment net income (loss) from the Japanese yen, South Korean won, Chinese yuan, new Taiwan dollar and euro, as applicable to the segment.  The most significant constant-currency adjustment relates to the Japanese yen exposure within the Display Technologies segment.  Management utilizes constant-currency reporting based on internally-derived rates, as detailed below, which are closely aligned with the currencies we have hedged. 

The Company believes that the use of constant-currency reporting allows management to understand segment results without the volatility of currency fluctuation, analyze underlying trends in the businesses and establish operational goals and forecasts.  Further, it reflects the underlying economics of the translated earnings contracts used to mitigate the impact of changes in currency exchange rates on our earnings and cash flows.

Constant-currency rates are as follows and are applied to all periods presented:

Currency	Japanese yen	Korean won	Chinese yuan	New Taiwan dollar	Euro
Rate	¥107	₩1,175	¥6.7	NT$31	€.81

In addition, certain income and expenses are excluded from segment net income (loss) and included in the unallocated amounts in the reconciliation of reportable segment net income to consolidated net income. These items are not used by the CODM in allocating resources or evaluating the results of the segments and include the following: the impact of translating the Japanese yen-denominated debt; the impact of the translated earnings contracts; acquisition-related costs; certain discrete tax items and other tax-related adjustments; restructuring, impairment and other charges and credits; certain litigation, regulatory and other legal matters; pension mark-to-market adjustments; and other non-recurring non-operational items. Although these amounts are excluded from segment results, they are included in reported consolidated results.

Corning’s administrative and staff functions are performed on a centralized basis and such costs and expenses are allocated among the segments differently than they would be for stand-alone financial reporting purposes. These include certain costs and expenses of shared services, such as information technology, human resources, legal, finance and supply chain management. Expenses that are not allocated to the segments are included in the reconciliation of reportable segment net income to consolidated net income. Segment net income (loss) may not be consistent with measures used by other companies.

Segment Information (in millions):

																Hemlock
																and
																Emerging
	Optical			Display			Specialty			Environmental			Life			Growth
	Communications			Technologies			Materials			Technologies			Sciences			Businesses			Total
Three months ended March 31, 2023
Segment net sales	$	1,125		$	763		$	406		$	431		$	256		$	386		$	3,367
Depreciation (1)	$	66		$	123		$	35		$	33		$	17		$	33		$	307
Research, development and engineering expenses (2)	$	60		$	23		$	53		$	24		$	10		$	39		$	209
Income tax provision (3)	$	(43	)	$	(42	)	$	(10	)	$	(22	)	$	(2	)	$	(9	)	$	(128	)
Segment net income	$	159		$	160		$	39		$	82		$	9		$	16		$	465

																Hemlock
																and
																Emerging
	Optical			Display			Specialty			Environmental			Life			Growth
	Communications			Technologies			Materials			Technologies			Sciences			Businesses			Total
Three months ended March 31, 2022
Segment net sales	$	1,198		$	959		$	493		$	409		$	310		$	375		$	3,744
Depreciation (1)	$	59		$	156		$	40		$	33		$	14		$	38		$	340
Research, development and engineering expenses (2)	$	55		$	31		$	53		$	25		$	9		$	40		$	213
Income tax provision (3)	$	(45	)	$	(63	)	$	(20	)	$	(20	)	$	(11	)	$	(1	)	$	(160	)
Segment net income (loss)	$	166		$	236		$	75		$	74		$	42		$	(8	)	$	585

(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 reflects a tax rate of 21%.

The following table presents a reconciliation of net sales of reportable segments to consolidated net sales (in millions):

	Three months ended
	March 31,
	2023			2022
Net sales of reportable segments	$	2,981		$	3,369
Net sales of Hemlock and Emerging Growth Businesses		386			375
Impact of constant currency reporting (1)		(189	)		(64	)
Consolidated net sales	$	3,178		$	3,680

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

The following table presents a reconciliation of net income of reportable segments to consolidated net income (in millions):

	Three months ended
	March 31,
	2023			2022
Net income of reportable segments	$	449		$	593
Net income (loss) of Hemlock and Emerging Growth Businesses		16			(8	)
Unallocated amounts:
Impact of constant currency reporting		(149	)		(63	)
(Loss) gain on foreign currency hedges related to translated earnings		(8	)		129
Translation gain on Japanese yen-denominated debt		18			84
Research, development, and engineering expenses		(45	)		(35	)
Amortization of intangibles		(31	)		(31	)
Interest expense, net		(56	)		(61	)
Income tax benefit (provision)		91			(20	)
Restructuring, impairment and other charges and credits		(66	)		(33	)
Gain on sale of business					53
Other corporate items		(43	)		(27	)
Net income attributable to Corning Incorporated	$	176		$	581

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Significant Accounting Policies (Policies)

3 Months Ended

Mar. 31, 2023

Accounting Policies [Abstract]

Basis of Accounting, Policy [Policy Text Block]

Basis of Presentation and Principles of Consolidation

In these notes, the terms “Corning,” “Company,” “we,” “us,” or “our” mean Corning Incorporated and its subsidiary companies.

The consolidated financial statements include the consolidated accounts of Corning Incorporated and its subsidiaries consolidated in conformity with accounting principles generally accepted in the United States of America (“GAAP”). In the opinion of management, the accompanying unaudited consolidated financial statements contain all adjustments, which include normal recurring adjustments, necessary to state fairly the financial position, results of operations and cash flows for the periods presented. All intercompany accounts, transactions and profits have been eliminated. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been omitted pursuant to the rules and regulations of the United States Securities and Exchange Commission (“SEC”). These consolidated financial statements should be read in conjunction with the audited financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2022 (“2022 Form 10-K”). The results of operations for the interim periods are not necessarily indicative of results which may be expected for any other interim period or for the full year.

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, expenses and the disclosure of contingent assets and liabilities in the consolidated financial statements and related notes. Significant estimates and assumptions in these consolidated financial statements require the exercise of judgment. Due to the inherent uncertainty involved in making estimates, actual results reported in future periods may be different from these estimates. 

The non-controlling interest as recorded in the consolidated financial statements represents amounts attributable to the minority shareholders of Hemlock Semiconductor Group (“Hemlock”) and other less-than-wholly-owned consolidated subsidiaries.

Certain prior year amounts have been reclassified to conform to the current year presentation. These reclassifications had no material impact on the results of operations, financial position, or changes in shareholders’ equity.

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Note 2 - Revenue (Tables)

3 Months Ended

Mar. 31, 2023

Notes Tables

Disaggregation of Revenue [Table Text Block]

	Three months ended
	March 31,
	2023		2022
Telecommunication products	$	1,125	$	1,198
Display products		609		906
Specialty glass products		404		493
Environmental substrate and filter products		407		401
Life science products		247		307
Polycrystalline silicon products		277		282
All other products		109		93
Total revenue	$	3,178	$	3,680

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Note 3 - Income Taxes (Tables)

3 Months Ended

Mar. 31, 2023

Notes Tables

Schedule of Income Tax Provisions and Rates [Table Text Block]

	Three months ended
	March 31,
	2023			2022
Provision for income taxes	$	(37	)	$	(180	)
Effective tax rate		16.2	%		23.0	%

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Note 4 - Earnings per Common Share (Tables)

3 Months Ended

Mar. 31, 2023

Notes Tables

Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]

	Three months ended
	March 31,
	2023		2022
Net income attributable to Corning Incorporated	$	176	$	581
Weighted-average common shares outstanding – basic		844		843
Effect of dilutive securities:
Stock options and other dilutive securities		15		16
Weighted-average common shares outstanding – diluted		859		859
Basic earnings per common share	$	0.21	$	0.69
Diluted earnings per common share	$	0.20	$	0.68
Anti-dilutive potential shares excluded from diluted earnings per common share:
Employee stock options and awards		5

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Note 5 - Inventories (Tables)

3 Months Ended

Mar. 31, 2023

Notes Tables

Schedule of Inventory, Current [Table Text Block]

	March 31,		December 31,
	2023		2022
Finished goods	$	1,272	$	1,315
Work in process		607		571
Raw materials and accessories		518		537
Supplies and packing materials		466		481
Inventories	$	2,863	$	2,904

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Note 6 - Other Liabilities (Tables)

3 Months Ended

Mar. 31, 2023

Notes Tables

Other Liabilities [Table Text Block]

	March 31,		December 31,
	2023		2022
Current liabilities:
Wages and employee benefits	$	447	$	727
Income taxes		157		127
Derivative instruments (Note 10)		144		174
Deferred revenue (Note 2)		170		144
Customer deposits (Note 2)		165		132
Share repurchase liability (Note 12)		507		506
Short-term operating leases		100		111
Other current liabilities		1,224		1,226
Other accrued liabilities	$	2,914	$	3,147
Non-current liabilities:
Defined benefit pension plan liabilities	$	680	$	668
Derivative instruments (Note 10)		43		17
Deferred revenue (Note 2)		693		725
Customer deposits (Note 2)		1,038		1,137
Deferred tax liabilities		219		243
Long-term operating leases		846		795
Other non-current liabilities		1,264		1,370
Other liabilities	$	4,783	$	4,955

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Note 8 - Employee Retirement Plans (Tables)

3 Months Ended

Mar. 31, 2023

Notes Tables

Schedule of Net Benefit Costs [Table Text Block]

	Pension benefits						Postretirement benefits
	Three months ended						Three months ended
	March 31,						March 31,
	2023			2022			2023			2022
Service cost	$	23		$	32		$	1		$	2
Interest cost		45			27			6			4
Expected return on plan assets		(46	)		(55	)
Amortization of actuarial net gain								(5	)
Amortization of prior service cost (credit)		2			1			(1	)		(1	)
Total pension and postretirement benefit expense	$	24		$	5		$	1		$	5

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Note 10 - Hedging Activities (Tables)

3 Months Ended

Mar. 31, 2023

Notes Tables

Schedule of Notional Amounts of Outstanding Derivative Positions [Table Text Block]

					Asset derivatives					Liability derivatives
	Notional amount				Balance	Fair value				Balance	Fair value
	March		December		sheet	March		December		sheet	March			December
	31, 2023		31, 2022		location	31, 2023		31, 2022		location	31, 2023			31, 2022
Derivatives designated as hedging instruments (1)
Foreign exchange and precious metals lease contracts (1)	$	365	$	419	Other current assets	$	75	$	26	Other accrued liabilities				$	(1	)
					Other assets		146		78
Derivatives not designated as hedging instruments
Foreign exchange contracts		2,924		2,231	Other current assets		22		44	Other accrued liabilities	$	(18	)		(49	)
Translated earnings contracts		6,770		7,543	Other current assets		354		384	Other accrued liabilities		(126	)		(124	)
					Other assets		114		146	Other liabilities		(43	)		(17	)
Total derivatives	$	10,059	$	10,193		$	711	$	678		$	(187	)	$	(191	)

Derivatives Not Designated as Hedging Instruments [Table Text Block]

	March 31,		December 31,
	2023		2022
Average rate forward contracts:
Japanese yen-denominated	$	0.2	$	0.1
South Korean won-denominated		2.0		2.1
Other foreign currencies (1)		0.8		0.7
Option contracts:
Japanese yen-denominated (2)		3.8		4.6
Total gross notional value for translated earning contracts	$	6.8	$	7.5

Not Designated as Hedging Instrument [Member]

Notes Tables

Schedule of Derivative Instruments, Effect on Other Comprehensive Income (Loss) [Table Text Block]

		Gain (loss) recognized in income
		Three months ended
	Location of gain (loss)	March 31,
Undesignated derivatives	recognized in income	2023			2022
Foreign exchange contracts	Other income, net	$	13		$	26
Translated earnings contracts	Translated earnings contract (loss) gain, net		(8	)		129
Total undesignated		$	5		$	155

Designated as Hedging Instrument [Member]

Notes Tables

Schedule of Derivative Instruments, Effect on Other Comprehensive Income (Loss) [Table Text Block]

	Three months ended March 31,
					Location of gain (loss)
	Gain recognized				reclassified from	Gain (loss) reclassified
Derivative hedging	in other comprehensive				accumulated	from accumulated
relationships for cash	income (OCI)				OCI into income	OCI into income
flow and fair value hedges	2023		2022		effective (ineffective)	2023			2022
					Net sales				$	10
					Cost of sales	$	7			7
Foreign exchange and precious metals lease contracts	$	32	$	34	Other income, net		(1	)		(1	)
Total cash flow and fair value hedges	$	32	$	34		$	6		$	16

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Note 11 - Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2023

Notes Tables

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block]

	March 31, 2023								December 31, 2022
	Total		Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3
Current assets:
Other current assets (1)	$	503	$	2	$	451	$	50	$	505	$	2	$	454	$	49
Non-current assets:
Other assets (1)	$	266	$	6	$	260			$	225			$	224	$	1
Current liabilities:
Other accrued liabilities (1)	$	144			$	144			$	174			$	174
Non-current liabilities:
Other liabilities (1)	$	60			$	60			$	34			$	34

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Note 12 - Shareholders' Equity (Tables)

3 Months Ended

Mar. 31, 2023

Accumulated Foreign Currency Adjustment Attributable to Parent [Member]

Notes Tables

Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block]

	Three months ended
	March 31,
	2023			2022
Beginning balance	$	(1,712	)	$	(933	)
Loss on foreign currency translation (2)		(83	)		(198	)
Equity method affiliates (3)		(1	)		(2	)
Net current-period other comprehensive loss		(84	)		(200	)
Ending balance	$	(1,796	)	$	(1,133	)

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Note 13 - Share-based Compensation (Tables)

3 Months Ended

Mar. 31, 2023

Notes Tables

Share-Based Payment Arrangement, Restricted Stock and Restricted Stock Unit, Activity [Table Text Block]

				Weighted
	Number			average
	of shares			grant-date
	(in thousands)			fair value
Non-vested shares and share units at December 31, 2022		11,299		$	29.19
Granted		5,772			35.14
Vested		(218	)		30.33
Forfeited		(66	)		29.92
Non-vested shares and share units at March 31, 2023		16,787		$	31.22

Share-Based Payment Arrangement, Performance Shares, Activity [Table Text Block]

				Weighted
	Number			average
	of shares			grant-date
	(in thousands)			fair value
Non-vested share units at December 31, 2022		4,696		$	35.41
Granted		1,110			35.14
Vested		(719	)		33.88
Performance adjustments		107			40.95
Forfeited		(24	)		35.23
Non-vested share units at March 31, 2023		5,170		$	35.68

Share-Based Payment Arrangement, Option, Activity [Table Text Block]

						Weighted-
						average
				Weighted-		remaining		Aggregate
	Number			average		contractual		intrinsic
	of shares			exercise		term		value
	(in thousands)			price		(in years)		(in thousands)
Options outstanding as of December 31, 2022		9,665		$	22.92
Exercised		(833	)		19.68
Forfeited and expired		(32	)		19.65
Options outstanding as of March 31, 2023		8,800			23.24		5.72	$	105,985
Options expected to vest as of March 31, 2023		8,794			23.24		5.72		105,910
Options exercisable as of March 31, 2023		7,079			24.11		5.37		79,091

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Note 14 - Reportable Segments (Tables)

3 Months Ended

Mar. 31, 2023

Notes Tables

Schedule of Segment Reporting Information, by Segment [Table Text Block]

																Hemlock
																and
																Emerging
	Optical			Display			Specialty			Environmental			Life			Growth
	Communications			Technologies			Materials			Technologies			Sciences			Businesses			Total
Three months ended March 31, 2023
Segment net sales	$	1,125		$	763		$	406		$	431		$	256		$	386		$	3,367
Depreciation (1)	$	66		$	123		$	35		$	33		$	17		$	33		$	307
Research, development and engineering expenses (2)	$	60		$	23		$	53		$	24		$	10		$	39		$	209
Income tax provision (3)	$	(43	)	$	(42	)	$	(10	)	$	(22	)	$	(2	)	$	(9	)	$	(128	)
Segment net income	$	159		$	160		$	39		$	82		$	9		$	16		$	465

																Hemlock
																and
																Emerging
	Optical			Display			Specialty			Environmental			Life			Growth
	Communications			Technologies			Materials			Technologies			Sciences			Businesses			Total
Three months ended March 31, 2022
Segment net sales	$	1,198		$	959		$	493		$	409		$	310		$	375		$	3,744
Depreciation (1)	$	59		$	156		$	40		$	33		$	14		$	38		$	340
Research, development and engineering expenses (2)	$	55		$	31		$	53		$	25		$	9		$	40		$	213
Income tax provision (3)	$	(45	)	$	(63	)	$	(20	)	$	(20	)	$	(11	)	$	(1	)	$	(160	)
Segment net income (loss)	$	166		$	236		$	75		$	74		$	42		$	(8	)	$	585

Reconciliation of Revenue from Segments to Consolidated [Table Text Block]

	Three months ended
	March 31,
	2023			2022
Net sales of reportable segments	$	2,981		$	3,369
Net sales of Hemlock and Emerging Growth Businesses		386			375
Impact of constant currency reporting (1)		(189	)		(64	)
Consolidated net sales	$	3,178		$	3,680

Reconciliation of Net Income (Loss) from Segments to Consolidated [Table Text Block]

	Three months ended
	March 31,
	2023			2022
Net income of reportable segments	$	449		$	593
Net income (loss) of Hemlock and Emerging Growth Businesses		16			(8	)
Unallocated amounts:
Impact of constant currency reporting		(149	)		(63	)
(Loss) gain on foreign currency hedges related to translated earnings		(8	)		129
Translation gain on Japanese yen-denominated debt		18			84
Research, development, and engineering expenses		(45	)		(35	)
Amortization of intangibles		(31	)		(31	)
Interest expense, net		(56	)		(61	)
Income tax benefit (provision)		91			(20	)
Restructuring, impairment and other charges and credits		(66	)		(33	)
Gain on sale of business					53
Other corporate items		(43	)		(27	)
Net income attributable to Corning Incorporated	$	176		$	581

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Note 2 - Revenue (Details Textual) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Contract with Customer, Liability, Customer Deposits	$ 1,200		$ 1,300
Increase (Decrease) in Contract with Customer, Liability	70	$ 83
HSG [Member]
Contract with Customer, Liability	$ 863		$ 869
Maximum [Member]
Long Term Supply, Commitment Period (Year)	10 years

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Note 2 - Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Net sales	$ 3,178	$ 3,680
Telecommunication Products [Member]
Net sales	1,125	1,198
Display Products [Member]
Net sales	609	906
Specialty Glass Products [Member]
Net sales	404	493
Environmental Substrate and Filter Products [Member]
Net sales	407	401
Life Science Products [Member]
Net sales	247	307
Polycrystalline Silicon [Member]
Net sales	277	282
Product and Service, Other [Member]
Net sales	$ 109	$ 93

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Note 3 - Income Taxes (Details Textual) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent	21.00%	21.00%
National Tax Service of Korea [Member]
Income Taxes Receivable, Noncurrent	$ 358		$ 349

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Note 3 - Income Taxes - Provision for Income Taxes (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Provision for income taxes (Note 3)	$ (37)	$ (180)
Effective tax rate	16.20%	23.00%

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Note 4 - Earnings Per Common Share - Reconciliation of Earnings Per Common Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Net income attributable to Corning Incorporated	$ 176	$ 581
Weighted-average common shares outstanding – basic (in shares)	844	843
Stock options and other dilutive securities (in shares)	15	16
Weighted-average common shares outstanding – diluted (in shares)	859	859
Basic (Note 4) (in dollars per share)	$ 0.21	$ 0.69
Diluted (Note 4) (in dollars per share)	$ 0.20	$ 0.68
Share-Based Payment Arrangement [Member]
Total (in shares)	5

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Note 5 - Inventories - Inventories (Details) - USD ($) $ in Millions	Mar. 31, 2023	Dec. 31, 2022
Finished goods	$ 1,272	$ 1,315
Work in process	607	571
Raw materials and accessories	518	537
Supplies and packing materials	466	481
Inventories	$ 2,863	$ 2,904

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Note 6 - Other Liabilities - Other Liabilities (Details) - USD ($) $ in Millions	Mar. 31, 2023	Dec. 31, 2022
Wages and employee benefits	$ 447	$ 727
Income taxes	157	127
Derivative instruments (Note 10)	144	174
Deferred revenue (Note 2)	170	144
Customer deposits (Note 2)	165	132
Share repurchase liability (Note 12)	507	506
Short-term operating leases	100	111
Other current liabilities	1,224	1,226
Other accrued liabilities	2,914	3,147
Defined benefit pension plan liabilities	680	668
Derivative instruments (Note 10)	43	17
Deferred revenue (Note 2)	693	725
Customer deposits (Note 2)	1,038	1,137
Deferred tax liabilities	219	243
Long-term operating leases	846	795
Other non-current liabilities	1,264	1,370
Other liabilities	$ 4,783	$ 4,955

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Note 7 - Debt (Details Textual) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Long-Term Debt and Lease Obligation	$ 6,654,000	$ 6,687,000
Commercial Paper [Member]
Short-Term Debt	0	0
Fair Value, Inputs, Level 2 [Member]
Long-Term Debt, Fair Value	$ 6,400,000	$ 6,100,000

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Note 8 - Employee Retirement Plans (Details Textual) $ in Millions	Mar. 31, 2023 USD ($)
Defined Benefit Plan, Expected Future Employer Contributions, Next Fiscal Year	$ 28

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Note 8 - Employee Retirement Plans - Net Periodic Benefit Expense (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Pension Plan [Member]
Service cost	$ 23	$ 32
Interest cost	45	27
Expected return on plan assets	(46)	(55)
Amortization of actuarial net gain
Amortization of prior service cost (credit)	2	1
Total pension and postretirement benefit expense	24	5
Other Postretirement Benefits Plan [Member]
Service cost	1	2
Interest cost	6	4
Expected return on plan assets
Amortization of actuarial net gain	(5)
Amortization of prior service cost (credit)	(1)	(1)
Total pension and postretirement benefit expense	$ 1	$ 5

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Note 9 - Commitments and Contingencies (Details Textual) $ in Millions		3 Months Ended
	May 31, 2016	Mar. 31, 2023 USD ($)	Dec. 31, 2022 USD ($)	Jun. 01, 2016
Environmental Litigation [Member]
Number of Hazardous Waste Sites		19
Accrual for Environmental Loss Contingencies		$ 101	$ 109
Dow Corning Corporation [Member] | Dow Corning Chapter 11 Related Matters [Member]
Equity Method Investment, Ownership Percentage				50.00%
Indemnification of Excess Liability	50.00%
Dow Corning Corporation [Member] | Dow Corning Environmental Claims [Member]
Indemnification of Excess Liability		50.00%

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Note 10 - Hedging Activities (Details Textual) $ in Millions	3 Months Ended	12 Months Ended
	Mar. 31, 2023 USD ($) ozt	Dec. 31, 2022 USD ($) GT
Derivative, Notional Amount	$ 10,059	$ 10,193
Foreign Currency Cash Flow Hedge Gain (Loss) to be Reclassified During Next 12 Months	29
AOCI, Cash Flow Hedge, Cumulative Gain (Loss), after Tax	44	19
New Investment Hedges [Member] | Cash Flow Hedging [Member]
Derivative, Notional Amount	365	419
Leased Precious Metal Pools [Member]
Hedged Asset, Fair Value Hedge, Cumulative Increase (Decrease)	(188)	(95)
Leased Precious Metal Pools [Member] | Property and Equipment, Net [Member]
Derivative Instruments in Hedges, Assets, at Fair Value	185	278
Foreign Exchange Forward [Member] | Cash Flow Hedging [Member] | Designated as Hedging Instrument [Member]
Derivative, Notional Amount	$ 365	$ 419
Derivative, Nonmonetary Notional Amount, Mass (Troy Ounce)	23,152	23,152

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Note 10 - Hedging Activities - Summary of Notional Amounts and Respective Fair Values of Derivative Financial Instruments (Details) - USD ($) $ in Millions	Mar. 31, 2023	Dec. 31, 2022
Notional amount	$ 10,059	$ 10,193
Asset derivatives, fair value	711	678
Liability derivatives, fair value	(187)	(191)
Not Designated as Hedging Instrument [Member]
Notional amount	6,800	7,500
Foreign Exchange Contract [Member] | Designated as Hedging Instrument [Member]
Notional amount	365	419
Foreign Exchange Contract [Member] | Designated as Hedging Instrument [Member] | Other Current Assets [Member]
Asset derivatives, fair value	75	26
Foreign Exchange Contract [Member] | Designated as Hedging Instrument [Member] | Other Accrued Liabilities [Member]
Liability derivatives, fair value		(1)	[1]
Foreign Exchange Contract [Member] | Designated as Hedging Instrument [Member] | Other Assets [Member]
Asset derivatives, fair value	146	78
Foreign Exchange Contract [Member] | Not Designated as Hedging Instrument [Member]
Notional amount	2,924	2,231
Foreign Exchange Contract [Member] | Not Designated as Hedging Instrument [Member] | Other Current Assets [Member]
Asset derivatives, fair value	22	44
Foreign Exchange Contract [Member] | Not Designated as Hedging Instrument [Member] | Other Accrued Liabilities [Member]
Liability derivatives, fair value	(18)	(49)
Translated Earnings Contracts [Member] | Not Designated as Hedging Instrument [Member]
Notional amount	6,770	7,543
Translated Earnings Contracts [Member] | Not Designated as Hedging Instrument [Member] | Other Current Assets [Member]
Asset derivatives, fair value	354	384
Translated Earnings Contracts [Member] | Not Designated as Hedging Instrument [Member] | Other Accrued Liabilities [Member]
Liability derivatives, fair value	(126)	(124)
Translated Earnings Contracts [Member] | Not Designated as Hedging Instrument [Member] | Other Assets [Member]
Asset derivatives, fair value	114	146
Translated Earnings Contracts [Member] | Not Designated as Hedging Instrument [Member] | Other Liabilities [Member]
Liability derivatives, fair value	$ (43)	$ (17)

[1] As of March 31, 2023, derivatives designated as hedging instruments include foreign exchange cash flow hedges with gross notional amounts of $365 million and fair value hedges of leased precious metals with gross notional amounts of 23,152 troy ounces. As of December 31, 2022, derivatives designated as hedging instruments include foreign exchange cash flow hedges with gross notional amounts of $419 million and fair value hedges of leased precious metals with gross notional amounts of 23,152 troy ounces.

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Note 10 - Hedging Activities - Undesignated Hedges (Details) - USD ($) $ in Millions		Mar. 31, 2023	Dec. 31, 2022
Gross notional value for translated earning contracts		$ 10,059	$ 10,193
Not Designated as Hedging Instrument [Member]
Gross notional value for translated earning contracts		6,800	7,500
Average Rate Forward Contracts, Japanese Yen-denominated [Member] | Not Designated as Hedging Instrument [Member]
Gross notional value for translated earning contracts		200	100
Average Rate Forward Contracts, South Korean Won-denominated [Member] | Not Designated as Hedging Instrument [Member]
Gross notional value for translated earning contracts		2,000	2,100
Average Rate Forward Contracts, Other Foreign Currencies [Member] | Not Designated as Hedging Instrument [Member]
Gross notional value for translated earning contracts	[1]	800	700
Options Contracts, Japanese Yen-denominated [Member] | Not Designated as Hedging Instrument [Member]
Gross notional value for translated earning contracts	[2]	$ 3,800	$ 4,600

[1] Denominational currencies for other average rate forward contracts include the Chinese yuan, New Taiwan dollar, and British pound.

[2] Japanese yen-denominated option contracts include zero-cost collars, purchased put and call options. With respect to the zero-cost collars, the gross notional amount includes the value of the put and call options. However, due to the nature of the zero-cost collars, only the put or call option can be exercised at maturity.

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Note 10 - Hedging Activities - Summary of Effect of Designated Derivative Financial Instruments on Consolidated Financial Statements (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Consolidated net sales	$ 3,178	$ 3,680
Cost of sales	2,175	2,397
Gain (loss) recognized in other comprehensive income	32	34
Other expense, net	8	152
Net income attributable to Corning Incorporated	176	581
Foreign Exchange Contract [Member]
Gain (loss) recognized in other comprehensive income	32	34
Reclassification out of Accumulated Other Comprehensive Income [Member]
Consolidated net sales		10
Cost of sales	7	7
Other expense, net	(1)	(1)
Net income attributable to Corning Incorporated	$ 6	$ 16

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Note 10 - Hedging Activities - Summary of Effect of Undesignated Derivative Financial Instruments on Consolidated Financial Statements (Details) - Not Designated as Hedging Instrument [Member] - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Gain (loss) recognized in income	$ 5	$ 155
Foreign Exchange Contract [Member] | Other (Expense) Income, Net [Member]
Gain (loss) recognized in income	13	26
Translated Earnings Contracts [Member] | Translated Earnings Contract (Loss) Gain, Net [Member]
Gain (loss) recognized in income	$ (8)	$ 129

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Note 11 - Fair Value Measurements - Financial Assets and Liabilities Measured on a Recurring Basis (Details) - USD ($) $ in Millions		Mar. 31, 2023	Dec. 31, 2022
Other current assets	[1]	$ 503	$ 505
Other assets	[1]	266	225
Other accrued liabilities	[1]	144	174
Other liabilities	[1]	60	34
Fair Value, Inputs, Level 1 [Member]
Other current assets	[1]	2	2
Other assets	[1]	6
Fair Value, Inputs, Level 2 [Member]
Other current assets	[1]	451	454
Other assets	[1]	260	224
Other accrued liabilities	[1]	144	174
Other liabilities	[1]	60	34
Fair Value, Inputs, Level 3 [Member]
Other current assets	[1]	$ 50	49
Other assets	[1]		$ 1

[1] Derivative assets and liabilities mainly consist of foreign exchange contracts which were measured using observable inputs for similar assets and liabilities.

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Note 12 - Shareholders' Equity (Details Textual) - USD ($) $ in Millions				3 Months Ended		12 Months Ended
	Apr. 23, 2023	Apr. 08, 2022	Apr. 08, 2021	Mar. 31, 2023	Mar. 31, 2022	Apr. 05, 2022	Jan. 16, 2021	Dec. 31, 2020	Dec. 31, 2019
Payments for Repurchase of Common Stock					$ 149
Accumulated Foreign Currency Adjustment Attributable to Parent [Member]
Other Comprehensive Income (Loss), Tax				$ 16	$ 11
Share Repurchase Agreement [Member] | Samsung [Member]
Stock Repurchased and Retired During Period, Shares (in shares)			35,000,000
Payments for Repurchase of Common Stock		$ 507	$ 507			$ 1,500
Share Repurchase Agreement [Member] | Samsung [Member] | Forecast [Member]
Payments for Repurchase of Common Stock	$ 507
The 2019 Repurchase Program [Member]
Stock Repurchase Program, Authorized Amount									$ 5,000
Treasury Stock, Shares, Acquired (in shares)				0	3,900,000
Treasury Stock, Value, Acquired, Cost Method					$ 151
Stock Repurchase Program, Remaining Authorized Repurchase Amount				$ 3,300
Series A Convertible Preferred Stock [Member]
Preferred Stock, Shares Outstanding (in shares)								2,300
Preferred Stock, Convertible, Shares Issuable (in shares)							115,000,000

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Note 12 - Shareholders' Equity- Summary of Changes in Foreign Currency Translation Adjustment Component of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions		3 Months Ended
		Mar. 31, 2023	Mar. 31, 2022
Balance		$ 12,275	$ 12,545
Loss on foreign currency translation (2)		(84)	(200)
Net current-period other comprehensive loss		(67)	(187)
Balance		12,207	12,629
Accumulated Foreign Currency Adjustment Attributable to Parent [Member]
Balance	[1]	(1,712)	(933)
Loss on foreign currency translation (2)	[1],[2]	(83)	(198)
Equity method affiliates (3)	[1],[3]	(1)	(2)
Net current-period other comprehensive loss		(84)	(200)
Balance	[1]	$ (1,796)	$ (1,133)

[1] All amounts are after tax. Amounts in parentheses indicate debits to accumulated other comprehensive (loss) income.

[2] For the three months ended March 31, 2023 and 2022, amounts are net of tax benefit of $16 million and $11 million, respectively.

[3] Tax effects are not significant.

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Note 13 - Share-based Compensation (Details Textual) - USD ($) shares in Thousands, $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Share-Based Payment Arrangement, Expense	$ 52	$ 42
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Grants in Period, Gross (in shares)	0	0

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Note 13 - Share-based Compensation - Summary of Restricted Stock and Restricted Stock Units (Details) - Restricted Stock and Restricted Stock Units [Member] shares in Thousands	3 Months Ended
	Mar. 31, 2023 $ / shares shares
Beginning Non-vested shares and share units, number of shares (in shares) | shares	11,299
Beginning Non-vested shares and share units, weighted average grant-date fair value (in dollars per share) | $ / shares	$ 29.19
Granted, number of shares (in shares) | shares	5,772
Granted, weighted average grant-date fair value (in dollars per share) | $ / shares	$ 35.14
Vested, number of shares (in shares) | shares	(218)
Vested, weighted average grant-date fair value (in dollars per share) | $ / shares	$ 30.33
Forfeited, number of shares (in shares) | shares	(66)
Forfeited, weighted average grant-date fair value (in dollars per share) | $ / shares	$ 29.92
Beginning Non-vested shares and share units, number of shares (in shares) | shares	16,787
Beginning Non-vested shares and share units, weighted average grant-date fair value (in dollars per share) | $ / shares	$ 31.22

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Note 13 - Share-based Compensation - Summary of Performance-based Restricted Stock Units (Details) - Performance Shares [Member] shares in Thousands	3 Months Ended
	Mar. 31, 2023 $ / shares shares
Beginning Non-vested shares and share units, number of shares (in shares) | shares	4,696
Beginning Non-vested shares and share units, weighted average grant-date fair value (in dollars per share) | $ / shares	$ 35.41
Granted, number of shares (in shares) | shares	1,110
Granted, weighted average grant-date fair value (in dollars per share) | $ / shares	$ 35.14
Vested, number of shares (in shares) | shares	(719)
Vested, weighted average grant-date fair value (in dollars per share) | $ / shares	$ 33.88
Performance adjustments (in shares) | shares	107
Performance adjustments (in dollars per share) | $ / shares	$ 40.95
Forfeited, number of shares (in shares) | shares	(24)
Forfeited, weighted average grant-date fair value (in dollars per share) | $ / shares	$ 35.23
Beginning Non-vested shares and share units, number of shares (in shares) | shares	5,170
Beginning Non-vested shares and share units, weighted average grant-date fair value (in dollars per share) | $ / shares	$ 35.68

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Note 13 - Share-based Compensation - Summary of Stock Options Outstanding (Details) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2023 USD ($) $ / shares shares
Beginning Options Outstanding, number of shares (in shares) | shares	9,665
Beginning Options Outstanding, weighted average exercise price (in dollars per share) | $ / shares	$ 22.92
Exercised, number of shares (in shares) | shares	(833)
Exercised, weighted average exercise price (in dollars per share) | $ / shares	$ 19.68
Forfeited and Expired, number of shares (in shares) | shares	(32)
Forfeited and Expired, weighted average exercise price (in dollars per share) | $ / shares	$ 19.65
Ending Options Outstanding, number of shares (in shares) | shares	8,800
Ending Options Outstanding, weighted average exercise price (in dollars per share) | $ / shares	$ 23.24
Options Outstanding, weighted average remaining contractual term (Year)	5 years 8 months 19 days
Options Outstanding, aggregate intrinsic value | $	$ 105,985
Options Expected to Vest, number of shares (in shares) | shares	8,794
Options Expected to Vest, weighted average exercise price (in dollars per share) | $ / shares	$ 23.24
Options Expected to Vest, weighted average remaining contractual term (Year)	5 years 8 months 19 days
Options Expected to Vest, aggregate intrinsic value | $	$ 105,910
Options Exercisable, number of shares (in shares) | shares	7,079
Options Exercisable, weighted average exercise price (in dollars per share) | $ / shares	$ 24.11
Options Exercisable, weighted average remaining contractual term (Year)	5 years 4 months 13 days
Options Exercisable, aggregate intrinsic value | $	$ 79,091

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Note 14 - Reportable Segments (Details Textual)	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent	21.00%	21.00%

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Note 14 - Reportable Segments - Reportable Segments (Details) - USD ($) $ in Millions		3 Months Ended
		Mar. 31, 2023	Mar. 31, 2022
Depreciation (1)		$ 310	$ 342
Research, development and engineering expenses (2)		254	248
Income tax provision (3)		37	180
Net income of reportable segments		176	581
Operating Segments [Member]
Net sales of reportable segments		3,367	3,744
Depreciation (1)	[1]	307	340
Research, development and engineering expenses (2)	[2]	209	213
Income tax provision (3)	[3]	(128)	(160)
Net income of reportable segments		465	585
Optical Communications [Member] | Operating Segments [Member]
Net sales of reportable segments		1,125	1,198
Depreciation (1)	[1]	66	59
Research, development and engineering expenses (2)	[2]	60	55
Income tax provision (3)	[3]	(43)	(45)
Net income of reportable segments		159	166
Display Products [Member] | Operating Segments [Member]
Net sales of reportable segments		763	959
Depreciation (1)	[1]	123	156
Research, development and engineering expenses (2)	[2]	23	31
Income tax provision (3)	[3]	(42)	(63)
Net income of reportable segments		160	236
Specialty Materials [Member] | Operating Segments [Member]
Net sales of reportable segments		406	493
Depreciation (1)	[1]	35	40
Research, development and engineering expenses (2)	[2]	53	53
Income tax provision (3)	[3]	(10)	(20)
Net income of reportable segments		39	75
Environmental Technologies [Member] | Operating Segments [Member]
Net sales of reportable segments		431	409
Depreciation (1)	[1]	33	33
Research, development and engineering expenses (2)	[2]	24	25
Income tax provision (3)	[3]	(22)	(20)
Net income of reportable segments		82	74
Life Science Products [Member] | Operating Segments [Member]
Net sales of reportable segments		256	310
Depreciation (1)	[1]	17	14
Research, development and engineering expenses (2)	[2]	10	9
Income tax provision (3)	[3]	(2)	(11)
Net income of reportable segments		9	42
Hemlock and Emerging Growth Businesses [Member]
Net sales of reportable segments		386	375
Depreciation (1)	[1]	33	38
Research, development and engineering expenses (2)	[2]	39	40
Income tax provision (3)	[3]	(9)	(1)
Net income of reportable segments		$ 16	$ (8)

[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%.

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Note 14 - Reportable Segments - Reconciliation of Reportable Segments and All Other Net Sales to Consolidated Net Sales (Details) - USD ($) $ in Millions		3 Months Ended
		Mar. 31, 2023	Mar. 31, 2022
Consolidated net sales		$ 3,178	$ 3,680
Hemlock and Emerging Growth Businesses [Member]
Net sales of reportable segments		386	375
Operating Segments [Member]
Net sales of reportable segments		3,367	3,744
Operating Segments [Member] | Reportable Segments [Member]
Net sales of reportable segments		2,981	3,369
Segment Reconciling Items [Member]
Impact of constant currency reporting (1)	[1]	$ (189)	$ (64)

[1] This amount primarily represents the impact of foreign currency adjustments in the Display Technologies segment.

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Note 14 - Reportable Segments - Reconciliation of Reportable Segment Net Income (Loss) to Consolidated Net Income (Details) - USD ($) $ in Millions		3 Months Ended
		Mar. 31, 2023	Mar. 31, 2022
Net income of reportable segments		$ 176	$ 581
(Loss) gain on foreign currency hedges related to translated earnings		(8)	129
Research, development, and engineering expenses		(254)	(248)
Amortization of intangibles		(31)	(31)
Interest expense, net		(76)	(71)
Provision for income taxes (Note 3)		(37)	(180)
Gain on sale of business			53
Operating Segments [Member]
Net income of reportable segments		465	585
Research, development, and engineering expenses	[1]	(209)	(213)
Provision for income taxes (Note 3)	[2]	128	160
Operating Segments [Member] | Reportable Segments [Member]
Net income of reportable segments		449	593
Operating Segments [Member] | Nonreportable Segments [Member]
Net income of reportable segments		16	(8)
Segment Reconciling Items [Member]
Net income of reportable segments		176	581
Impact of constant currency reporting		(149)	(63)
(Loss) gain on foreign currency hedges related to translated earnings		(8)	129
Translation gain on Japanese yen-denominated debt		18	84
Research, development, and engineering expenses	[3]	(45)	(35)
Amortization of intangibles		(31)	(31)
Interest expense, net		(56)	(61)
Provision for income taxes (Note 3)		91	(20)
Restructuring, impairment and other charges and credits	[4]	(66)	(33)
Gain on sale of business			53
Other corporate items		$ (43)	$ (27)

[1] Research, development and engineering expenses include direct project spending that is identifiable to a segment.

[2] Income tax (provision) benefit reflects a tax rate of 21%.

[3] Amount does not include research, development, and engineering expense related to restructuring, impairment and other charges and credits.

[4] Refer to Note 2 (Restructuring, Impairment and Other Charges and Credits) to the consolidated financial statements for additional information on activities.