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Note 20 - Reportable Segments | 12 Months Ended
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Dec. 31, 2015
Segment Reporting [Abstract] |
Segment Reporting Disclosure [Text Block] | 20. 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 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’s Pharmaceutical Technologies business, which consists of a pharmaceutical glass business and a glass tubing business used in the pharmaceutical packaging industry. This segment also includes Corning Precision Materials’ non-LCD business and new product lines and development projects such as laser technologies, advanced flow reactors and adjacency businesses in pursuit of thin, strong glass, as well as certain corporate investments such as Eurokera and Keraglass equity affiliates. 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. The following provides historical segment information as described above: Segment Information (in millions)
| Display Technologies |  | Optical Communications |  | Environmental Technologies |  | Specialty Materials |  | Life Sciences |  | All Other |  | Total
For the year ended December 31, 2015 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net sales | $ | 3,086 |  | $ | 2,980 |  | $ | 1,053 |  | $ | 1,107 |  | $ | 821 |  | $ | 64 |  | $ | 9,111
Depreciation (1) | $ | 605 |  | $ | 163 |  | $ | 125 |  | $ | 112 |  | $ | 60 |  | $ | 43 |  | $ | 1,108
Amortization of purchased intangibles |  |  |  | $ | 32 |  |  |  |  |  |  |  | $ | 20 |  | $ | 1 |  | $ | 53
Research, development and engineering expenses (2) | $ | 105 |  | $ | 138 |  | $ | 93 |  | $ | 113 |  | $ | 23 |  | $ | 186 |  | $ | 658
Restructuring, impairment and other charges |  |  |  | $ | (1) |  |  |  |  | $ | 16 |  |  |  |  |  |  |  | $ | 15
Equity in earnings of affiliated companies | $ | (9) |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 17 |  | $ | 8
Income tax (provision) benefit | $ | (499) |  | $ | (115) |  | $ | (78) |  | $ | (85) |  | $ | (30) |  | $ | 89 |  | $ | (718)
Net income (loss) (4) | $ | 1,095 |  | $ | 237 |  | $ | 161 |  | $ | 167 |  | $ | 61 |  | $ | (202) |  | $ | 1,519
Investment in affiliated companies, at equity | $ | 43 |  | $ | 1 |  | $ | 32 |  |  |  |  |  |  |  | $ | 261 |  | $ | 337
Segment assets (5) | $ | 8,344 |  | $ | 1,783 |  | $ | 1,288 |  | $ | 1,407 |  | $ | 514 |  | $ | 738 |  | $ | 14,074
Capital expenditures | $ | 594 |  | $ | 171 |  | $ | 117 |  | $ | 88 |  | $ | 32 |  | $ | 57 |  | $ | 1,059
For the year ended December 31, 2014 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net sales | $ | 3,851 |  | $ | 2,652 |  | $ | 1,092 |  | $ | 1,205 |  | $ | 862 |  | $ | 53 |  | $ | 9,715
Depreciation (1) | $ | 676 |  | $ | 154 |  | $ | 119 |  | $ | 113 |  | $ | 60 |  | $ | 31 |  | $ | 1,153
Amortization of purchased intangibles |  |  |  | $ | 10 |  |  |  |  |  |  |  | $ | 22 |  |  |  |  | $ | 32
Research, development and engineering expenses (2) | $ | 138 |  | $ | 141 |  | $ | 91 |  | $ | 140 |  | $ | 22 |  | $ | 177 |  | $ | 709
Restructuring, impairment and other charges | $ | 45 |  | $ | 17 |  |  |  |  | $ | (1) |  | $ | 1 |  | $ | 6 |  | $ | 68
Equity in earnings of affiliated companies | $ | (20) |  |  |  |  | $ | 2 |  |  |  |  |  |  |  | $ | 18 |  |  |
Income tax (provision) benefit | $ | (608) |  | $ | (111) |  | $ | (89) |  | $ | (75) |  | $ | (33) |  | $ | 83 |  | $ | (833)
Net income (loss) (4) | $ | 1,396 |  | $ | 194 |  | $ | 178 |  | $ | 138 |  | $ | 67 |  | $ | (198) |  | $ | 1,775
Investment in affiliated companies, at equity | $ | 63 |  | $ | 2 |  | $ | 32 |  |  |  |  |  |  |  | $ | 214 |  | $ | 311
Segment assets (5) | $ | 8,863 |  | $ | 1,737 |  | $ | 1,297 |  | $ | 1,288 |  | $ | 553 |  | $ | 518 |  | $ | 14,256
Capital expenditures | $ | 492 |  | $ | 145 |  | $ | 173 |  | $ | 104 |  | $ | 30 |  | $ | 101 |  | $ | 1,045
For the year ended December 31, 2013 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net sales | $ | 2,545 |  | $ | 2,326 |  | $ | 919 |  | $ | 1,170 |  | $ | 851 |  | $ | 8 |  | $ | 7,819
Depreciation (1) | $ | 481 |  | $ | 147 |  | $ | 120 |  | $ | 137 |  | $ | 57 |  | $ | 18 |  | $ | 960
Amortization of purchased intangibles |  |  |  | $ | 10 |  |  |  |  |  |  |  | $ | 21 |  |  |  |  | $ | 31
Research, development and engineering expenses (2) | $ | 84 |  | $ | 140 |  | $ | 89 |  | $ | 144 |  | $ | 20 |  | $ | 116 |  | $ | 593
Restructuring, impairment and other charges | $ | 7 |  | $ | 12 |  | $ | 1 |  | $ | 19 |  | $ | 4 |  | $ | 8 |  | $ | 51
Equity in earnings of affiliated companies (3) | $ | 357 |  | $ | 2 |  | $ | 1 |  | $ | 4 |  |  |  |  | $ | (24) |  | $ | 340
Income tax (provision) benefit | $ | (337) |  | $ | (96) |  | $ | (63) |  | $ | (88) |  | $ | (34) |  | $ | 59 |  | $ | (559)
Net income (loss) (4) | $ | 1,293 |  | $ | 189 |  | $ | 127 |  | $ | 181 |  | $ | 68 |  | $ | (165) |  | $ | 1,693
Investment in affiliated companies, at equity | $ | 3,666 |  | $ | 3 |  | $ | 31 |  | $ | 10 |  |  |  |  | $ | 232 |  | $ | 3,942
Segment assets (5) | $ | 9,501 |  | $ | 1,654 |  | $ | 1,230 |  | $ | 1,333 |  | $ | 551 |  | $ | 422 |  | $ | 14,691
Capital expenditures | $ | 350 |  | $ | 105 |  | $ | 196 |  | $ | 62 |  | $ | 51 |  | $ | 55 |  | $ | 819
(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) | In 2013, equity in earnings of affiliated companies in the Display Technologies segment included a $28 million restructuring charge for our share of costs for headcount reductions and asset write-offs.
(4) | 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.
(5) | Segment assets include inventory, accounts receivable, property, plant and equipment, net of accumulated depreciation, and associated equity companies and cost investments.
For the year ended December 31, 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 62% 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 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.
A significant amount of specialized manufacturing capacity for our Display Technologies segment is concentrated in Asia. It is at least reasonably possible that the use of a facility located outside of an entity’s home country could be disrupted. Due to the specialized nature of the assets, it would not be possible to find replacement capacity quickly. Accordingly, loss of these facilities could produce a near-term severe impact to our display business and the Company as a whole. A reconciliation of reportable segment net income (loss) to consolidated net income follows (in millions):
| Years ended December 31,
| 2015 |  | 2014 |  | 2013
Net income of reportable segments | $ | 1,721 |  | $ | 1,973 |  | $ | 1,858
Net loss of All Other |  | (202) |  |  | (198) |  |  | (165)
Unallocated amounts: |  |  |  |  |  |  |  |
Net financing costs (1) |  | (111) |  |  | (113) |  |  | (66)
Share-based compensation expense |  | (46) |  |  | (58) |  |  | (54)
Exploratory research |  | (109) |  |  | (102) |  |  | (112)
Corporate contributions |  | (52) |  |  | (43) |  |  | (42)
Equity in earnings of affiliated companies, net of impairments (2) |  | 291 |  |  | 269 |  |  | 207
Unrealized (loss) gain on foreign currency hedges related to translated earnings |  | (573) |  |  | 1,095 |  |  | 368
Income tax benefit (provision) |  | 568 |  |  | (267) |  |  | (1)
Other corporate items |  | (148) |  |  | (84) |  |  | (32)
Net income | $ | 1,339 |  | $ | 2,472 |  | $ | 1,961
(1) | Net financing costs include interest income, interest expense, and interest costs and investment gains and losses associated with benefit plans.
(2) | Primarily represents the equity earnings of Dow Corning.
A reconciliation of reportable segment assets to consolidated total assets follows (in millions):
| December 31,
| 2015 |  | 2014 |  | 2013
Total assets of reportable segments | $ | 13,336 |  | $ | 13,738 |  | $ | 14,269
Non-reportable segments |  | 738 |  |  | 518 |  |  | 422
Unallocated amounts: |  |  |  |  |  |  |  |
Current assets (1) |  | 5,488 |  |  | 7,402 |  |  | 6,349
Investments (2) |  | 1,638 |  |  | 1,490 |  |  | 1,595
Property, plant and equipment, net (3) |  | 1,692 |  |  | 1,657 |  |  | 1,594
Other non-current assets (4) |  | 5,655 |  |  | 5,258 |  |  | 4,249
Total assets | $ | 28,547 |  | $ | 30,063 |  | $ | 28,478
(1) | Includes current corporate assets, primarily cash, short-term investments, current portion of long-term derivative assets and deferred taxes.
(2) | Represents corporate investments in affiliated companies, at both cost and equity (primarily Dow Corning).
(3) | Represents corporate property not specifically identifiable to an operating segment.
(4) | Includes non-current corporate assets, pension assets, long-term derivative assets and deferred taxes.
Selected financial information concerning the Company’s product lines and reportable segments follow (in millions):
| Years Ended December 31,
Revenues from External Customers | 2015 |  | 2014 |  | 2013
Display Technologies | $ | 3,086 |  | $ | 3,851 |  | $ | 2,545
Optical Communications |  |  |  |  |  |  |  |
Carrier network |  | 2,194 |  |  | 2,036 |  |  | 1,782
Enterprise network |  | 786 |  |  | 616 |  |  | 544
Total Optical Communications |  | 2,980 |  |  | 2,652 |  |  | 2,326
Environmental Technologies |  |  |  |  |  |  |  |
Automotive and other |  | 528 |  |  | 528 |  |  | 485
Diesel |  | 525 |  |  | 564 |  |  | 434
Total Environmental Technologies |  | 1,053 |  |  | 1,092 |  |  | 919
Specialty Materials |  |  |  |  |  |  |  |
Corning Gorilla Glass |  | 810 |  |  | 846 |  |  | 848
Advanced optics and other specialty glass |  | 297 |  |  | 359 |  |  | 322
Total Specialty Materials |  | 1,107 |  |  | 1,205 |  |  | 1,170
Life Sciences |  |  |  |  |  |  |  |
Labware |  | 512 |  |  | 536 |  |  | 529
Cell culture products |  | 309 |  |  | 326 |  |  | 322
Total Life Science |  | 821 |  |  | 862 |  |  | 851
All Other |  | 64 |  |  | 53 |  |  | 8
| $ | 9,111 |  | $ | 9,715 |  | $ | 7,819
Information concerning principal geographic areas was as follows (in millions):
| 2015 |  | 2014 |  | 2013
| Net sales (2) |  | Long- lived assets (1) |  | Net sales (2) |  | Long- lived assets (1) |  | Net sales (2) |  | Long- lived assets (1)
North America |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
United States | $ | 2,719 |  | $ | 8,241 |  | $ | 2,275 |  | $ | 7,998 |  | $ | 2,061 |  | $ | 7,170
Canada |  | 244 |  |  | 144 |  |  | 311 |  |  |  |  |  | 308 |  |  |
Mexico |  | 37 |  |  | 135 |  |  | 35 |  |  | 50 |  |  | 23 |  |  | 36
Total North America |  | 3,000 |  |  | 8,520 |  |  | 2,621 |  |  | 8,048 |  |  | 2,392 |  |  | 7,206
Asia Pacific |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Japan |  | 440 |  |  | 1,160 |  |  | 608 |  |  | 1,311 |  |  | 621 |  |  | 1,548
Taiwan |  | 841 |  |  | 2,301 |  |  | 1,092 |  |  | 2,005 |  |  | 1,376 |  |  | 2,277
China |  | 1,869 |  |  | 1,036 |  |  | 1,893 |  |  | 1,115 |  |  | 1,916 |  |  | 1,218
Korea |  | 1,501 |  |  | 3,552 |  |  | 1,882 |  |  | 3,595 |  |  | 96 |  |  | 3,234
Other |  | 331 |  |  | 98 |  |  | 308 |  |  | 109 |  |  | 278 |  |  | 127
Total Asia Pacific | 4,982 |  |  | 8,147 |  |  | 5,783 |  |  | 8,135 |  |  | 4,287 |  |  | 8,404
Europe |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Germany |  | 326 |  |  | 189 |  |  | 397 |  |  | 217 |  |  | 337 |  |  | 171
France |  | 90 |  |  | 263 |  |  | 81 |  |  | 277 |  |  | 79 |  |  | 287
United Kingdom |  | 164 |  |  | 47 |  |  | 187 |  |  | 47 |  |  | 165 |  |  | 6
Other |  | 311 |  |  | 987 |  |  | 369 |  |  | 1,109 |  |  | 280 |  |  | 1,147
Total Europe |  | 891 |  |  | 1,486 |  |  | 1,034 |  |  | 1,650 |  |  | 861 |  |  | 1,611
Latin America |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Brazil |  | 55 |  |  | 36 |  |  | 67 |  |  | 36 |  |  | 77 |  |  | 66
Other |  | 34 |  |  |  |  |  | 35 |  |  |  |  |  | 37 |  |  | 6
Total Latin America |  | 89 |  |  | 36 |  |  | 102 |  |  | 36 |  |  | 114 |  |  | 72
All Other |  | 149 |  |  |  |  |  | 175 |  |  | 19 |  |  | 165 |  |  | 25
Total | $ | 9,111 |  | $ | 18,189 |  | $ | 9,715 |  | $ | 17,888 |  | $ | 7,819 |  | $ | 17,318
(1) | Long-lived assets primarily include investments, plant and equipment, goodwill and other intangible assets. In 2014 and 2015, assets in the U.S. include the investment in Dow Corning. In 2013, assets in the U.S. and South Korea include investments in Dow Corning and Samsung Corning Precision Materials.
(2) | Net sales are attributed to countries based on location of customer.

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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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