XML 32 R22.htm IDEA: XBRL DOCUMENT
v3.5.0.2

Note 16 - Share-based Compensation | 6 Months Ended
--- | ---
Jun. 30, 2016
Notes to Financial Statements |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | 16. Share-based Compensation Stock Compensation Plans The Company measures and recognizes compensation cost for all share-based payment awards made to employees and directors based on estimated fair values. Fair values for stock options were estimated using a multiple-point Black-Scholes valuation model. Share-based compensation cost was approximately $14 million and $15 million for the three months ended June 30, 2016 and 2015, respectively, and approximately $23 million and $25 million for the six months ended June 30, 2016 and 2015, respectively. Amounts for all periods presented included compensation expense for employee stock options and time-based restricted stock and restricted stock units. Stock Options Corning’s stock option plans provide non-qualified and incentive stock options to purchase authorized but unissued shares, or treasury shares, at the market price on the grant date and generally become exercisable in installments from one to five years from the grant date. The maximum term of non-qualified and incentive stock options is 10 years from the grant date. The following table summarizes information concerning stock options outstanding including the related transactions under the stock option plans for the six months ended June 30, 2016:
| Number of Shares (in thousands) |  | Weighted- Average Exercise Price |  | Weighted- Average Remaining Contractual Term in Years |  | Aggregate Intrinsic Value (in thousands)
Options Outstanding as of December 31, 2015 | 42,738 |  | $19.40 |  |  |  |
Granted | 1,624 |  | 19.93 |  |  |  |
Exercised | (2,087) |  | 13.13 |  |  |  |
Forfeited and Expired | (4,256) |  | 26.08 |  |  |  |
Options Outstanding as of June 30, 2016 | 38,019 |  | 19.02 |  | 4.06 |  | $110,178
Options Expected to Vest as of June 30, 2016 | 37,968 |  | 19.02 |  | 4.05 |  | 110,158
Options Exercisable as of June 30, 2016 | 33,177 |  | 18.78 |  | 3.36 |  | 108,177
The aggregate intrinsic value (market value of stock less option exercise price) in the preceding table represents the total pretax intrinsic value, based on the Company’s closing stock price on June 30, 2016, which would have been received by the option holders had all option holders exercised their “in-the-money” options as of that date. As of June 30, 2016, there was approximately $9 million of unrecognized compensation cost related to stock options granted under the plans. The cost is expected to be recognized over a weighted-average period of 1.9 years. Compensation cost related to stock options was approximately $5 million and $7 million for the three months ended June 30, 2016 and 2015, respectively, and approximately $8 million and $11 million for the six months ended June 30, 2016 and 2015, respectively. Proceeds received from the exercise of stock options were $27 million and $98 million for the six months ended June 30, 2016 and 2015, respectively. Proceeds received from the exercise of stock options were included in financing activities on the Company’s Consolidated Statements of Cash Flows. The total intrinsic value of options exercised for the six months ended June 30, 2016 and 2015 was approximately $15 million and $46 million, respectively. The income tax benefit realized from share-based compensation was not significant for the three and six months ended June 30, 2016 and 2015, respectively. Refer to Note 5 (Income Taxes) to the Consolidated Financial Statements. The following inputs were used for the valuation of option grants under our stock option plans:
| Three months ended June 30, |  | Six months ended June 30,
| 2016 |  | 2015 |  | 2016 |  | 2015
Expected volatility | 40.2% |  | 44.5% |  | 40.2 | - | 43.1% |  | 44.5 | - | 44.9%
Weighted-average volatility | 40.2% |  | 44.5% |  | 40.2 | - | 43.1% |  | 44.5 | - | 44.9%
Expected dividends | 2.89% |  | 2.24% |  | 2.89 | - | 2.94% |  | 1.92 | - | 2.24%
Risk-free rate | 1.6% |  | 1.9% |  | 1.5 | - | 1.6% |  | 1.9 | - | 1.9%
Average risk-free rate | 1.6% |  | 1.9% |  | 1.5 | - | 1.6% |  | 1.9 | - | 1.9%
Expected term (in years) | 7.4 |  | 7.2 |  | 7.4 | - | 7.4 |  | 7.2 | - | 7.2
Pre-vesting departure rate | 0.6% |  | 0.6% |  | 0.6 | - | 0.6% |  | 0.6 | - | 0.6%
Expected volatility is based on a blended approach defined as the weighted average of the short-term implied volatility, the most recent volatility for the period equal to the expected term, and the most recent 15-year historical volatility. The expected term assumption is the period of time the options are expected to be outstanding, and is calculated using a combination of historical exercise experience adjusted to reflect the current vesting period of options being valued, and partial life cycles of outstanding options. The risk-free rate assumption is the implied rate for a zero-coupon U.S. Treasury bond with a term equal to the option’s expected term. Incentive Stock Plans The Corning Incentive Stock Plan permits restricted stock and restricted stock unit grants, either determined by specific performance goals or issued directly, in most instances, subject to the possibility of forfeiture and without cash consideration. Restricted stock and restricted stock units under the Incentive Stock Plan are granted at the closing market price on the grant date, contingently vest over a period of generally one to ten years, and generally have contractual lives of one to ten years. The fair value of each restricted stock grant or restricted stock unit awarded under the Incentive Stock Plan is based on the grant date closing price of the Company’s stock. Time-Based Restricted Stock and Restricted Stock Units: Time-based restricted stock and restricted stock units are issued by the Company on a discretionary basis, and are payable in shares of the Company’s common stock upon vesting. The fair value is based on the closing market price of the Company’s stock on the grant date. Compensation cost is recognized over the requisite vesting period and adjusted for actual forfeitures before vesting. The following table represents a summary of the status of the Company’s non-vested time-based restricted stock and restricted stock units as of December 31, 2015, and changes which occurred during the six months ended June 30, 2016:
| Shares (000’s) |  | Weighted Average Grant-Date Fair Value
Non-vested shares and share units at December 31, 2015 | 5,242 |  | $ | 17.91
Granted | 1,279 |  |  | 20.44
Vested | (1,635) |  |  | 14.25
Forfeited | (49) |  |  | 21.00
Non-vested shares and share units at June 30, 2016 | 4,837 |  | $ | 19.79
As of June 30, 2016, there was approximately $37 million of unrecognized compensation cost related to non-vested time-based restricted stock and restricted stock units compensation arrangements granted under the Plan. The cost is expected to be recognized over a weighted-average period of 1.9 years. Compensation cost related to time-based restricted stock and restricted stock units was approximately $9 million and $8 million for the three months ended June 30, 2016 and 2015, respectively, and approximately $15 million and $14 million for the six months ended June 30, 2016 and 2015, respectively.

X
- Definition The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 40 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=65895303&loc=d3e17540-113929 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 50 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=68057994&loc=d3e25284-112666 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB Topic 14) -URI http://asc.fasb.org/extlink&oid=27013229&loc=d3e301413-122809 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5070-113901 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5047-113901 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5444-113901 + Details
Name: | us-gaap_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_DisclosureTextBlockAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration