Note 2 - Revenue

9 Months Ended

Sep. 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				Nine months ended
	September 30,				September 30,
	2023		2022		2023		2022
Telecommunication products	$	918	$	1,317	$	3,109	$	3,828
Display products		727		558		2,061		2,223
Specialty glass products		560		516		1,384		1,494
Environmental substrate and filter products		420		393		1,260		1,130
Life science products		221		297		690		908
Polycrystalline silicon products		230		288		765		877
All other products		97		119		325		323
Total revenue	$	3,173	$	3,488	$	9,594	$	10,783

Customer Deposits

As of September 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  September 30, 2023 and 2022, customer deposits recognized were $6 million and $24 million, respectively.  For the nine months ended September 30, 2023 and 2022, customer deposits recognized were $88 million and $155 million, respectively.

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

Deferred Revenue

As of September 30, 2023 and December 31, 2022, Corning had deferred revenue of approximately $854 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 nine months ended  September 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.