Note 2 - Revenue

6 Months Ended

Jun. 30, 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				Six months ended
	June 30,				June 30,
	2023		2022		2023		2022
Telecommunication products	$	1,066	$	1,313	$	2,191	$	2,511
Display products		725		759		1,334		1,665
Specialty glass products		420		485		824		978
Environmental substrate and filter products		433		336		840		737
Life science products		222		304		469		611
Polycrystalline silicon products		258		306		535		588
All other products		119		112		228		205
Total revenue	$	3,243	$	3,615	$	6,421	$	7,295

Customer Deposits

As of June 30, 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  June 30, 2023 and 2022, customer deposits recognized were $12 million and $48 million, respectively.  For the six months ended June 30, 2023 and 2022, customer deposits recognized were $82 million and $131 million, respectively.

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

Deferred Revenue

As of June 30, 2023 and December 31, 2022, Corning had deferred revenue of approximately $840 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 and six months ended  June 30, 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.