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Note 12 - Hedging Activities | 9 Months Ended
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Sep. 30, 2015
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Derivative Instruments and Hedging Activities Disclosure [Text Block] | 12. Hedging Activities Undesignated Hedges The table below includes a total gross notional value for the foreign currency hedges related to translated earnings of $12.7 billion at September 30, 2015 (at December 31, 2014: $12.1 billion), including zero-cost collars of $5.7 billion (at December 31, 2014: $2.3 billion) and average rate forwards of $7.0 billion (at December 31, 2014: $9.8 billion). With respect to the zero-cost collars, the gross notional amount includes the value of both the put and call options. However, due to the nature of the zero-cost collars, either the put or the call option can be exercised at maturity. As of September 30, 2015, the total net notional value of the zero-cost collars was $3.0 billion (at December 31, 2014: $1.2 billion). The following tables summarize the notional amounts and respective fair values of Corning’s derivative financial instruments on a gross basis for September 30, 2015 and December 31, 2014 (in millions):
| U.S. Dollar |  | Asset derivatives |  | Liability derivatives
| Gross notional amount |  | Balance sheet location |  | Fair value |  | Balance sheet location |  | Fair value
| Sept. 30, 2015 |  | Dec. 31, 2014 |  |  | Sept. 30, 2015 |  | Dec. 31, 2014 |  |  | Sept. 30, 2015 |  | Dec. 31, 2014
Derivatives designated as hedging instruments |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Foreign exchange contracts | $ 803 |  | $ 487 |  | Other current assets |  | $ 7 |  | $ 22 |  | Other accrued liabilities |  | $ (10) |  | $ (6)
|  |  |  |  | Other assets |  | 1 |  |  |  | Other liabilities |  | (28) |  |
Interest rate contracts | 550 |  | 1,300 |  | Other assets |  | 2 |  | 1 |  | Other liabilities |  |  |  | (15)
Derivatives not designated as hedging instruments |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Foreign exchange contracts, other | 592 |  | 1,285 |  | Other current assets |  | 2 |  | 17 |  | Other accrued liabilities |  | (5) |  | (5)
Foreign currency hedges related to translated earnings | 12,678 |  | 12,126 |  | Other current assets |  | 540 |  | 649 |  | Other accrued liabilities |  | (59) |  | (33)
|  |  |  |  | Other assets |  | 605 |  | 846 |  | Other liabilities |  | (72) |  |
Total derivatives | $14,623 |  | $15,198 |  |  |  | $1,157 |  | $1,535 |  |  |  | $(174) |  | $(59)
The following tables summarize the effect of derivative financial instruments on Corning’s consolidated financial statements for the three months ended September 30, 2015 and 2014 (in millions):
| Effect of derivative instruments on the consolidated financial statements for the three months ended September 30
Derivatives in hedging relationships | Gain/(loss) recognized in other comprehensive income (OCI) |  | Location of gain/(loss) reclassified from accumulated OCI into income (effective) |  | Gain reclassified from accumulated OCI into income (effective) (1)
2015 |  | 2014 |  |  | 2015 |  | 2014
Interest rate hedges |  |  |  |  | Sales |  | $4 |  | $1
Foreign exchange contracts | $(58) |  | $11 |  | Cost of sales |  | 1 |  | 2
Total cash flow hedges | $(58) |  | $11 |  |  |  | $5 |  | $3
(1) | The amount of hedge ineffectiveness at September 30, 2015 and 2014 was insignificant.
The following tables summarize the effect of derivative financial instruments on Corning’s consolidated financial statements for the nine months ended September 30, 2015 and 2014 (in millions):
| Effect of derivative instruments on the consolidated financial statements for the nine months ended September 30
Derivatives in hedging relationships | Gain/(loss) recognized in other comprehensive income (OCI) |  | Location of gain/(loss) reclassified from accumulated OCI into income (effective) |  | Gain reclassified from accumulated OCI into income (effective) (1)
2015 |  | 2014 |  |  | 2015 |  | 2014
Interest rate hedges | $ (7) |  |  |  | Sales |  | $14 |  | $1
Foreign exchange contracts | (24) |  | $6 |  | Cost of sales |  | 7 |  | 2
Total cash flow hedges | $(31) |  | $6 |  |  |  | $21 |  | $3
(1) | The amount of hedge ineffectiveness at September 30, 2015 and 2014 was insignificant.
The following table summarizes the effect on the consolidated financial statements relating to Corning’s derivative financial instruments (in millions):
Undesignated derivatives | Location of gain/(loss) recognized in income |  | Gain (loss) recognized in income
Three months ended September 30, |  | Nine months ended September 30,
2015 |  | 2014 |  | 2015 |  | 2014
Foreign exchange contracts – balance sheet | Foreign currency hedge gain (loss), net |  | $ | (6) |  | $ | 21 |  | $ | 7 |  | $ | 16
Foreign exchange contracts – loans | Foreign currency hedge gain (loss), net |  |  | 1 |  |  | 5 |  |  | 3 |  |  | 6
Foreign currency hedges related to translated earnings | Foreign currency hedge gain (loss), net |  |  | (149) |  |  | 739 |  |  | 42 |  |  | 600
Total undesignated |  |  | $ | (154) |  | $ | 765 |  | $ | 52 |  | $ | 622

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- Definition The entire disclosure for derivative instruments and hedging activities including, but not limited to, risk management strategies, non-hedging derivative instruments, assets, liabilities, revenue and expenses, and methodologies and assumptions used in determining the amounts. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 30 -Section 45 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6441202&loc=d3e80720-113993 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4C -URI http://asc.fasb.org/extlink&oid=56946850&loc=SL5624171-113959 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=56946850&loc=d3e41620-113959 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4B -URI http://asc.fasb.org/extlink&oid=56946850&loc=SL5624163-113959 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=56946850&loc=SL5579240-113959 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4D -URI http://asc.fasb.org/extlink&oid=56946850&loc=SL5624177-113959 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 30 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=35736893&loc=d3e80784-113994 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 5 -URI http://asc.fasb.org/extlink&oid=56946850&loc=d3e41641-113959 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 1A -URI http://asc.fasb.org/extlink&oid=56946850&loc=SL5579245-113959 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4H -URI http://asc.fasb.org/extlink&oid=56946850&loc=SL5624258-113959 Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 30 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=35736893&loc=d3e80748-113994 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4K -URI http://asc.fasb.org/extlink&oid=56946850&loc=SL5708775-113959 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4J -URI http://asc.fasb.org/extlink&oid=56946850&loc=SL5708773-113959 Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4A -URI http://asc.fasb.org/extlink&oid=56946850&loc=SL5618551-113959 Reference 15: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 1B -URI http://asc.fasb.org/extlink&oid=56946850&loc=SL5580258-113959 Reference 16: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4E -URI http://asc.fasb.org/extlink&oid=56946850&loc=SL5624181-113959 Reference 17: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 25 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6886632&loc=d3e76258-113986 Reference 18: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=56946850&loc=d3e41638-113959 Reference 19: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(n)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 + Details
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