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Note 18 - Reportable Segments | 6 Months Ended
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Jun. 30, 2015
Segment Reporting [Abstract] |
Segment Reporting Disclosure [Text Block] | 18. Reportable Segments Our reportable segments are as follows:
· | Display Technologies – manufactures glass substrates for flat panel liquid crystal displays.
· | Optical Communications – manufactures carrier network and enterprise network components for the telecommunications industry.
· | Environmental Technologies – manufactures ceramic substrates and filters for automotive and diesel applications.
· | Specialty Materials – manufactures products that provide more than 150 material formulations for glass, glass ceramics and fluoride crystals to meet demand for unique customer needs.
· | Life Sciences – manufactures glass and plastic labware, equipment, media and reagents to provide workflow solutions for scientific applications.
All other reportable segments that do not meet the quantitative threshold for separate reporting have been grouped as “All Other.” This group is primarily comprised of the results of Corning Precision Materials’ non-LCD business and new product lines and development projects that involve the use of various technologies for new products such as advanced flow reactors and adjacency businesses in pursuit of thin, strong glass. We prepared the financial results for our reportable segments on a basis that is consistent with the manner in which we internally disaggregate financial information to assist in making internal operating decisions. We included the earnings of equity affiliates that are closely associated with our reportable segments in the respective segment’s net income. We have allocated certain common expenses among reportable segments differently than we would for stand-alone financial information. Segment net income may not be consistent with measures used by other companies. The accounting policies of our reportable segments are the same as those applied in the consolidated financial statements. Reportable Segments (in millions)
| Display Technologies |  | Optical Communications |  | Environmental Technologies |  | Specialty Materials |  | Life Sciences |  | All Other |  | Total
Three months ended June 30, 2015 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Net sales | $ | 789 |  | $ | 800 |  | $ | 260 |  | $ | 272 |  | $ | 211 |  | $ | 11 |  | $ | 2,343
| Depreciation (1) | $ | 152 |  | $ | 43 |  | $ | 32 |  | $ | 27 |  | $ | 15 |  | $ | 11 |  | $ | 280
| Amortization of purchased intangibles |  |  |  | $ | 11 |  |  |  |  |  |  |  | $ | 5 |  |  |  |  | $ | 16
| Research, development and engineering expenses (2) | $ | 26 |  | $ | 35 |  | $ | 23 |  | $ | 29 |  | $ | 6 |  | $ | 44 |  | $ | 163
| Restructuring, impairment and other charges |  |  |  |  |  |  |  |  |  | $ | 3 |  |  |  |  |  |  |  | $ | 3
| Equity in earnings of affiliated companies | $ | (3) |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 6 |  | $ | 3
| Income tax (provision) benefit | $ | (136) |  | $ | (37) |  | $ | (22) |  | $ | (22) |  | $ | (9) |  | $ | 21 |  | $ | (205)
| Net income (loss) (3) | $ | 303 |  | $ | 77 |  | $ | 46 |  | $ | 44 |  | $ | 18 |  | $ | (45) |  | $ | 443
| Display Technologies |  | Optical Communications |  | Environmental Technologies |  | Specialty Materials |  | Life Sciences |  | All Other |  | Total
Three months ended June 30, 2014 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Net sales | $ | 987 |  | $ | 686 |  | $ | 285 |  | $ | 298 |  | $ | 223 |  | $ | 3 |  | $ | 2,482
| Depreciation (1) | $ | 171 |  | $ | 37 |  | $ | 30 |  | $ | 29 |  | $ | 16 |  | $ | 7 |  | $ | 290
| Amortization of purchased intangibles |  |  |  | $ | 2 |  |  |  |  |  |  |  | $ | 6 |  |  |  |  | $ | 8
| Research, development and engineering expenses (2) | $ | 41 |  | $ | 34 |  | $ | 21 |  | $ | 34 |  | $ | 5 |  | $ | 48 |  | $ | 183
| Restructuring, impairment and other charges | $ | 24 |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 10 |  | $ | 34
| Equity in earnings of affiliated companies | $ | (4) |  |  |  |  | $ | 1 |  |  |  |  |  |  |  | $ | 7 |  | $ | 4
| Income tax (provision) benefit | $ | (119) |  | $ | (31) |  | $ | (23) |  | $ | (21) |  | $ | (9) |  | $ | 22 |  | $ | (181)
| Net income (loss) (3) | $ | 282 |  | $ | 61 |  | $ | 47 |  | $ | 39 |  | $ | 18 |  | $ | (59) |  | $ | 388
| Display Technologies |  | Optical Communications |  | Environmental Technologies |  | Specialty Materials |  | Life Sciences |  | All Other |  | Total
Six months ended June 30, 2015 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Net sales | $ | 1,597 |  | $ | 1,497 |  | $ | 542 |  | $ | 544 |  | $ | 408 |  | $ | 20 |  | $ | 4,608
| Depreciation (1) | $ | 308 |  | $ | 81 |  | $ | 61 |  | $ | 53 |  | $ | 30 |  | $ | 20 |  | $ | 553
| Amortization of purchased intangibles |  |  |  | $ | 17 |  |  |  |  |  |  |  | $ | 10 |  |  |  |  | $ | 27
| Research, development and engineering expenses (2) | $ | 50 |  | $ | 68 |  | $ | 46 |  | $ | 60 |  | $ | 11 |  | $ | 89 |  | $ | 324
| Restructuring, impairment and other charges |  |  |  | $ | (1) |  |  |  |  | $ | 3 |  |  |  |  |  |  |  | $ | 2
| Equity in earnings of affiliated companies | $ | (5) |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 8 |  | $ | 3
| Income tax (provision) benefit | $ | (268) |  | $ | (66) |  | $ | (45) |  | $ | (43) |  | $ | (17) |  | $ | 44 |  | $ | (395)
| Net income (loss) (3) | $ | 597 |  | $ | 134 |  | $ | 94 |  | $ | 82 |  | $ | 34 |  | $ | (93) |  | $ | 848
| Display Technologies |  | Optical Communications |  | Environmental Technologies |  | Specialty Materials |  | Life Sciences |  | All Other |  | Total
Six months ended June 30, 2014 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Net sales | $ | 1,916 |  | $ | 1,279 |  | $ | 560 |  | $ | 559 |  | $ | 433 |  | $ | 24 |  | $ | 4,771
| Depreciation (1) | $ | 344 |  | $ | 73 |  | $ | 60 |  | $ | 56 |  | $ | 31 |  | $ | 12 |  | $ | 576
| Amortization of purchased intangibles |  |  |  | $ | 4 |  |  |  |  |  |  |  | $ | 12 |  |  |  |  | $ | 16
| Research, development and engineering expenses (2) | $ | 86 |  | $ | 71 |  | $ | 42 |  | $ | 67 |  | $ | 10 |  | $ | 76 |  | $ | 352
| Restructuring, impairment and other charges | $ | 29 |  | $ | 12 |  |  |  |  |  |  |  |  |  |  | $ | 10 |  | $ | 51
| Equity in earnings of affiliated companies | $ | (13) |  |  |  |  | $ | 2 |  |  |  |  |  |  |  | $ | 9 |  | $ | (2)
| Income tax (provision) benefit | $ | (317) |  | $ | (50) |  | $ | (44) |  | $ | (37) |  | $ | (17) |  | $ | 38 |  | $ | (427)
| Net income (loss) (3) | $ | 491 |  | $ | 88 |  | $ | 90 |  | $ | 70 |  | $ | 35 |  | $ | (99) |  | $ | 675
(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) | Many of Corning’s administrative and staff functions are performed on a centralized basis. Where practicable, Corning charges these expenses to segments based upon the extent to which each business uses a centralized function. Other staff functions, such as corporate finance, human resources and legal, are allocated to segments, primarily as a percentage of sales.
A reconciliation of reportable segment net income to consolidated net income follows (in millions):
| Three months ended June 30, |  | Six months ended June 30,
| 2015 |  | 2014 |  | 2015 |  | 2014
Net income of reportable segments | $ | 488 |  | $ | 447 |  | $ | 941 |  | $ | 774
Non-reportable segments |  | (45) |  |  | (59) |  |  | (93) |  |  | (99)
Unallocated amounts: |  |  |  |  |  |  |  |  |  |  |
Net financing costs (1) |  | (25) |  |  | (30) |  |  | (49) |  |  | (59)
Stock-based compensation expense |  | (15) |  |  | (13) |  |  | (25) |  |  | (28)
Exploratory research |  | (28) |  |  | (24) |  |  | (54) |  |  | (51)
Corporate contributions |  | (12) |  |  | (11) |  |  | (24) |  |  | (16)
Equity in earnings of affiliated companies, net of impairments (2) |  | 59 |  |  | 59 |  |  | 153 |  |  | 151
Asbestos settlement |  | (2) |  |  | (4) |  |  | (3) |  |  | (6)
Unrealized loss on foreign currency hedges related to translated earnings |  | (7) |  |  | (119) |  |  | (82) |  |  | (149)
Other corporate items (3) |  | 83 |  |  | (77) |  |  | 139 |  |  | (47)
Net income | $ | 496 |  | $ | 169 |  | $ | 903 |  | $ | 470
(1) | Net financing costs include interest income, interest expense, and interest costs and investment gains associated with benefit plans.
(2) | Primarily represents the equity earnings of Dow Corning.
(3) | Other corporate items include the tax impact of the unallocated amounts, excluding foreign currency hedges related to translated earnings.
The sales of each of our reportable segments are concentrated across a relatively small number of customers. In the three months ended June 30, 2015, the following number of customers, which individually accounted for 10% or more of each segment’s sales, represented the following concentration of segment sales:
· | In the Display Technologies segment, three customers accounted for 61% of total segment sales.
· | In the Optical Communications segment, two customers accounted for 22% of total segment sales.
· | In the Environmental Technologies segment, three customers accounted for 87% of total segment sales.
· | In the Specialty Materials segment, three customers accounted for 53% of total segment sales.
· | In the Life Sciences segment, two customers accounted for 48% of total segment sales.
In the six months ended June 30, 2015, the following number of customers, which individually accounted for 10% or more of each segment’s sales, represented the following concentration of segment sales:
· | In the Display Technologies segment, three customers accounted for 61% of total segment sales.
· | In the Optical Communications segment, one customer accounted for 11% of total segment sales.
· | In the Environmental Technologies segment, three customers accounted for 86% of total segment sales.
· | In the Specialty Materials segment, three customers accounted for 56% of total segment sales.
· | In the Life Sciences segment, two customers accounted for 46% of total segment sales.

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8981-108599 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e9038-108599 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 33 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8971-108599 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8595-108599 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8380-108599 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 35 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8984-108599 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e9031-108599 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e9054-108599 Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8538-108599 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 29 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8864-108599 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8924-108599 Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8906-108599 + Details
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