Note 2 - Restructuring, Impairment and Other Charges and Credits

12 Months Ended

Dec. 31, 2023

Notes to Financial Statements

Restructuring and Related Activities Disclosure [Text Block]

2.  Restructuring, Impairment and Other Charges and Credits

Corning periodically assesses the operating efficiency and cost structure of the Company’s asset base and global workforce and takes appropriate actions to align corporate resources with the business environment. 

The following table presents the restructuring, impairment and other charges and credits (in millions):

	Year ended December 31,
	2023		2022		2021
Severance (1)	$	187	$	70	$	(13	)
Capacity optimization		176		219		46
Other charges and credits (2)		108		125		77
Total restructuring, impairment and other charges and credits	$	471	$	414	$	110

(1)	Severance charges in the year ended December 31, 2023 include $20 million in curtailment and special termination benefit charges.
(2)	Other charges and credits primarily includes disposal costs and inventory write-downs.

During the year ended December 31, 2023, Corning recorded $471 million in severance, asset write-offs and other related charges. Capacity optimization charges include asset write-offs associated with the exit of certain facilities, product lines and other exit activities primarily within Optical Communications, Specialty Materials and Life Sciences. Severance charges were recorded across all segments and as of December 31, 2023, the severance accrual of $118 million was reflected within other accrued liabilities on the consolidated balance sheet and is expected to be substantially completed within the next twelve months. 

During the year ended December 31, 2022, Corning recorded $414 million in severance, accelerated depreciation, asset write-offs and other related charges. Capacity optimization charges include accelerated depreciation and asset write-offs associated with the exit of certain facilities, product lines and other exit activities primarily within Display Technologies, Specialty Materials and an emerging growth business. Severance charges were recorded across all segments and as of December 31, 2022, the severance accrual was $66 million and reflected within other accrued liabilities on the consolidated balance sheet.

2.  Restructuring, Impairment and Other Charges and Credits (Continued)

The following tables present the impact and respective location of total restructuring, impairment and other charges and credits in the consolidated statements of income (in millions):

	Year ended December 31, 2023
			Selling,		Research,
			general		development
			and		and
	Gross		administrative		engineering
	margin (1)		expenses		expenses		Other		Total
Severance	$	65	$	69	$	33	$	20	$	187
Capacity optimization		121		21		13		21		176
Other charges and credits		97		1				10		108
Total restructuring, impairment and other charges and credits	$	283	$	91	$	46	$	51	$	471

	Year ended December 31, 2022
			Selling,		Research,
			general		development
			and		and
	Gross		administrative		engineering
	margin (1)		expenses		expenses		Other		Total
Severance	$	25	$	32	$	13			$	70
Capacity optimization		215		4						219
Other charges and credits		97		15		3	$	10		125
Total restructuring, impairment and other charges and credits	$	337	$	51	$	16	$	10	$	414

	Year ended December 31, 2021
				Selling,			Research,
				general			development
				and			and
	Gross			administrative			engineering
	margin (1)			expenses			expenses			Other		Total
Severance	$	(6	)	$	(5	)	$	(2	)			$	(13	)
Capacity optimization		36			7			3					46
Other charges and credits		50			(5	)				$	32		77
Total restructuring, impairment and other charges and credits	$	80		$	(3	)	$	1		$	32	$	110

(1) Activity reflected in cost of sales.