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Reportable Segments | 12 Months Ended
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Dec. 31, 2018
Reportable Segments [Abstract] |
Reportable Segments | 17.Reportable Segm ents ﻿ Our reportable segments are as follows: ﻿
| · |  | Display Technologies – manufactures glass substrates for flat panel liquid crystal displays and other high performance display panels.
| · |  | Optical Communications – manufactures carrier network and enterprise network components for the telecommunications industry.
| · |  | 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.
| · |  | Environmental Technologies – manufactures ceramic substrates and filters for automotive and diesel applications.
| · |  | 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 the pharmaceutical technologies, auto glass and new product lines and development projects, as well as certain corporate investments such as Eurokera and Keraglass equity affiliates. 17.Reportable Segments (continued) Effective beginning in the first quarter of 2018, the Company has changed its measurement of segment sales and segment net income, and has recast prior periods presented based on the new methodology. Included in this new measurement is a change in our segment tax rate to 21% to better reflect the new corporate tax rate under the 2017 Tax Act. Additionally, the impact of changes in the Japanese yen, Korean won, Chinese yuan and New Taiwan dollar will be excluded from segment sales and segment net income for the Display Technologies and Specialty Materials segments, and certain income and expenses that were previously allocated to our segments are now included in the unallocated amounts in the reconciliation of reportable segment net income to consolidated net income. These include items that are not used by our chief operating decision maker (“CODM”) in evaluating the results of or in allocating resources to our segments and include the following items: the impact of our translated earnings contracts; acquisition-related costs; discrete tax items and other tax-related adjustments; litigation, regulatory and other legal matters; restructuring, impairment and other charges; adjustments relating to acquisitions; and other non-recurring non-operational items. Although we exclude these amounts from segment results, they are included in reported consolidated results. ﻿ 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. 17.Reportable Segments (continued) ﻿ The following provides historical segment information as described above: ﻿ Segment Information (in millions) ﻿
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﻿ | Display Technologies |  | Optical Communications |  | Specialty Materials |  | Environmental Technologies |  | Life Sciences |  | All Other |  | Total
﻿ |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
﻿For the year ended December 31, 2018 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
﻿Segment net sales | $ | 3,276 |  | $ | 4,192 |  | $ | 1,479 |  | $ | 1,289 |  | $ | 946 |  | $ | 216 |  | $ | 11,398
﻿Depreciation (1) | $ | 585 |  | $ | 218 |  | $ | 136 |  | $ | 119 |  | $ | 50 |  | $ | 38 |  | $ | 1,146
﻿Research, development and engineering expenses (2) | $ | 106 |  | $ | 212 |  | $ | 163 |  | $ | 118 |  | $ | 20 |  | $ | 231 |  | $ | 850
﻿Income tax (provision) benefit | $ | (221) |  | $ | (163) |  | $ | (83) |  | $ | (55) |  | $ | (31) |  | $ | 76 |  | $ | (477)
﻿Net income (loss) (3) | $ | 835 |  | $ | 592 |  | $ | 313 |  | $ | 208 |  | $ | 117 |  | $ | (281) |  | $ | 1,784
﻿Investment in affiliated companies, at equity | $ | 131 |  | $ | 3 |  | $ | 6 |  |  |  |  | $ | 1 |  | $ | 171 |  | $ | 312
﻿Segment assets (4) | $ | 8,794 |  | $ | 3,042 |  | $ | 2,176 |  | $ | 1,633 |  | $ | 585 |  | $ | 1,018 |  | $ | 17,248
﻿Capital expenditures | $ | 755 |  | $ | 417 |  | $ | 242 |  | $ | 273 |  | $ | 55 |  | $ | 329 |  | $ | 2,071
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﻿For the year ended December 31, 2017 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
﻿Segment net sales | $ | 3,137 |  | $ | 3,545 |  | $ | 1,403 |  | $ | 1,106 |  | $ | 879 |  | $ | 188 |  | $ | 10,258
﻿Depreciation (1) | $ | 534 |  | $ | 193 |  | $ | 129 |  | $ | 124 |  | $ | 52 |  | $ | 45 |  | $ | 1,077
﻿Research, development and engineering expenses (2) | $ | 88 |  | $ | 174 |  | $ | 152 |  | $ | 113 |  | $ | 22 |  | $ | 211 |  | $ | 760
﻿Income tax (provision) benefit | $ | (234) |  | $ | (129) |  | $ | (79) |  | $ | (44) |  | $ | (25) |  | $ | 69 |  | $ | (442)
﻿Net income (loss) (3) | $ | 888 |  | $ | 469 |  | $ | 301 |  | $ | 165 |  | $ | 95 |  | $ | (259) |  | $ | 1,659
﻿Investment in affiliated companies, at equity | $ | 134 |  | $ | 2 |  | $ | 3 |  |  |  |  |  |  |  | $ | 140 |  | $ | 279
﻿Segment assets (4) | $ | 8,662 |  | $ | 2,599 |  | $ | 2,155 |  | $ | 1,402 |  | $ | 538 |  | $ | 824 |  | $ | 16,180
﻿Capital expenditures | $ | 795 |  | $ | 505 |  | $ | 223 |  | $ | 157 |  | $ | 42 |  | $ | 156 |  | $ | 1,878
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﻿For the year ended December 31, 2016 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
﻿Segment net sales | $ | 3,288 |  | $ | 3,005 |  | $ | 1,124 |  | $ | 1,032 |  | $ | 839 |  | $ | 152 |  | $ | 9,440
﻿Depreciation (1) | $ | 598 |  | $ | 175 |  | $ | 109 |  | $ | 129 |  | $ | 58 |  | $ | 50 |  | $ | 1,119
﻿Research, development and engineering expenses (2) | $ | 45 |  | $ | 147 |  | $ | 126 |  | $ | 102 |  | $ | 24 |  | $ | 191 |  | $ | 635
﻿Income tax (provision) benefit | $ | (253) |  | $ | (96) |  | $ | (61) |  | $ | (42) |  | $ | (24) |  | $ | 55 |  | $ | (421)
﻿Net income (loss) (3) | $ | 953 |  | $ | 351 |  | $ | 228 |  | $ | 159 |  | $ | 90 |  | $ | (220) |  | $ | 1,561
﻿Investment in affiliated companies, at equity | $ | 41 |  | $ | (1) |  |  |  |  | $ | 32 |  |  |  |  | $ | 252 |  | $ | 324
﻿Segment assets (4) | $ | 8,032 |  | $ | 2,010 |  | $ | 1,604 |  | $ | 1,267 |  | $ | 504 |  | $ | 750 |  | $ | 14,167
﻿Capital expenditures | $ | 464 |  | $ | 245 |  | $ | 120 |  | $ | 97 |  | $ | 39 |  | $ | 56 |  | $ | 1,021
﻿
| (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.
| (4) |  | Segment assets include inventory, accounts receivable, property, plant and equipment, net of accumulated depreciation, and associated equity companies and cost investments.
﻿ A reconciliation of reportable segments and All Other net sales to consolidated net sales follows (in millions):
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﻿ |  | Years ended December 31,
﻿ |  | 2018 |  | 2017 |  | 2016
﻿Net sales of reportable segments and All Other |  | $ | 11,398 |  | $ | 10,258 |  | $ | 9,440
﻿ Impact of foreign currency movements (1) |  |  | (108) |  |  | (142) |  |  | (50)
﻿Net sales |  | $ | 11,290 |  | $ | 10,116 |  | $ | 9,390
﻿
| (1) |  | This amount primarily represents the impact of foreign currency adjustments in the Display Technologies segment.
17.Reportable Segments (continued) ﻿ A reconciliation of reportable segment net income (loss) to consolidated net income follows (in millions): ﻿
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﻿ | Years ended December 31,
﻿ | 2018 |  | 2017 |  | 2016
﻿Net income of reportable segments | $ | 2,065 |  | $ | 1,918 |  | $ | 1,781
﻿Net loss of All Other |  | (281) |  |  | (259) |  |  | (220)
﻿Unallocated amounts: |  |  |  |  |  |  |  |
﻿ Impact of foreign currency movements not included in segment net income (loss) |  | (157) |  |  | (168) |  |  | (85)
﻿ Loss on foreign currency hedges related to translated earnings |  | (78) |  |  | (121) |  |  | (448)
﻿ Translation loss on Japanese yen-denominated debt |  | (18) |  |  | (14) |  |  |
﻿ Litigation, regulatory and other legal matters |  | (124) |  |  | 12 |  |  | (153)
﻿ Research, development, and engineering expense |  | (134) |  |  | (106) |  |  | (107)
﻿ Equity in earnings of affiliated companies (1) |  | 390 |  |  | 352 |  |  | 288
﻿ Amortization of intangibles |  | (93) |  |  | (75) |  |  | (64)
﻿ Interest expense, net |  | (149) |  |  | (110) |  |  | (127)
﻿ Pension mark to market |  | (145) |  |  | (22) |  |  | (67)
﻿ Gain on realignment of equity investment |  |  |  |  |  |  |  | 2,676
﻿ Income tax benefit (provision) |  | 42 |  |  | (1,709) |  |  | 424
﻿ Other corporate items |  | (252) |  |  | (195) |  |  | (203)
﻿Net income (loss) | $ | 1,066 |  | $ | (497) |  | $ | 3,695
﻿ (1)Primarily represents the equity earnings of HSG in 2018 and 2017, and Dow Corning in 2016. ﻿ A reconciliation of reportable segment assets to consolidated total assets follows (in millions): ﻿
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﻿ | December 31,
﻿ | 2018 |  | 2017 |  | 2016
﻿Total assets of reportable segments | $ | 16,230 |  | $ | 15,356 |  | $ | 13,417
﻿Non-reportable segments |  | 1,018 |  |  | 824 |  |  | 750
﻿Unallocated amounts: |  |  |  |  |  |  |  |
﻿Current assets (1) |  | 3,065 |  |  | 5,315 |  |  | 6,070
﻿Investments (2) |  | 64 |  |  | 61 |  |  | 12
﻿Property, plant and equipment, net (3) |  | 1,928 |  |  | 1,628 |  |  | 1,681
﻿Other non-current assets (4) |  | 5,200 |  |  | 4,310 |  |  | 5,969
﻿Total assets | $ | 27,505 |  | $ | 27,494 |  | $ | 27,899
﻿
| (1) |  | Includes current corporate assets, primarily cash, short-term investments, current portion of long-term derivative assets and deferred taxes.
| (2) |  | Primarily represents corporate equity and cost basis investments. Asset balance does not include equity method affiliate liability balance of $105 and $241 for HSG in 2017 and 2016, respectively.
| (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.
17.Reportable Segments (continued) ﻿ Selected financial information concerning the Company’s product lines and reportable segments follow (in millions): ﻿
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﻿ | Years Ended December 31,
﻿Revenues from External Customers | 2018 |  | 2017 |  | 2016
﻿Display Technologies | $ | 3,276 |  | $ | 3,137 |  | $ | 3,288
﻿ |  |  |  |  |  |  |  |
﻿Optical Communications |  |  |  |  |  |  |  |
﻿Carrier network |  | 3,084 |  |  | 2,720 |  |  | 2,274
﻿Enterprise network |  | 1,108 |  |  | 825 |  |  | 731
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﻿Total Optical Communications |  | 4,192 |  |  | 3,545 |  |  | 3,005
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﻿Specialty Materials |  |  |  |  |  |  |  |
﻿Corning Gorilla Glass |  | 1,069 |  |  | 1,044 |  |  | 807
﻿Advanced optics and other specialty glass |  | 410 |  |  | 359 |  |  | 317
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﻿Total Specialty Materials |  | 1,479 |  |  | 1,403 |  |  | 1,124
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﻿Environmental Technologies |  |  |  |  |  |  |  |
﻿Automotive and other |  | 719 |  |  | 627 |  |  | 585
﻿Diesel |  | 570 |  |  | 479 |  |  | 447
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﻿Total Environmental Technologies |  | 1,289 |  |  | 1,106 |  |  | 1,032
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﻿Life Sciences |  |  |  |  |  |  |  |
﻿Labware |  | 536 |  |  | 524 |  |  | 512
﻿Cell culture products |  | 410 |  |  | 355 |  |  | 327
﻿ |  |  |  |  |  |  |  |
﻿Total Life Science |  | 946 |  |  | 879 |  |  | 839
﻿ |  |  |  |  |  |  |  |
﻿All Other |  | 216 |  |  | 188 |  |  | 152
﻿ | $ | 11,398 |  | $ | 10,258 |  | $ | 9,440
﻿ 17.Reportable Segments (continued) ﻿ Information concerning principal geographic areas was as follows (in millions): ﻿
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﻿ | 2018 |  | 2017 |  | 2016
﻿ | 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 | $ | 3,569 |  | $ | 7,383 |  | $ | 3,146 |  | $ | 6,605 |  | $ | 2,625 |  | $ | 6,318
﻿Canada |  | 296 |  |  | 127 |  |  | 287 |  |  | 144 |  |  | 282 |  |  | 142
﻿Mexico |  | 53 |  |  | 200 |  |  | 27 |  |  | 174 |  |  | 50 |  |  | 134
﻿Total North America |  | 3,918 |  |  | 7,710 |  |  | 3,460 |  |  | 6,923 |  |  | 2,957 |  |  | 6,594
﻿ |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
﻿Asia Pacific |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
﻿Japan |  | 415 |  |  | 1,148 |  |  | 476 |  |  | 1,119 |  |  | 455 |  |  | 1,008
﻿Taiwan |  | 921 |  |  | 2,326 |  |  | 900 |  |  | 2,357 |  |  | 857 |  |  | 2,347
﻿China |  | 2,716 |  |  | 2,811 |  |  | 2,247 |  |  | 2,125 |  |  | 2,092 |  |  | 1,524
﻿Korea |  | 1,259 |  |  | 3,736 |  |  | 1,337 |  |  | 3,869 |  |  | 1,464 |  |  | 3,413
﻿Other |  | 436 |  |  | 85 |  |  | 378 |  |  | 71 |  |  | 363 |  |  | 167
﻿Total Asia Pacific |  | 5,747 |  |  | 10,106 |  |  | 5,338 |  |  | 9,541 |  |  | 5,231 |  |  | 8,459
﻿ |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
﻿Europe |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
﻿Germany |  | 451 |  |  | 508 |  |  | 426 |  |  | 236 |  |  | 363 |  |  | 154
﻿Other |  | 905 |  |  | 1,155 |  |  | 701 |  |  | 1,108 |  |  | 617 |  |  | 1,125
﻿Total Europe |  | 1,356 |  |  | 1,663 |  |  | 1,127 |  |  | 1,344 |  |  | 980 |  |  | 1,279
﻿ |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
﻿All Other |  | 377 |  |  | 40 |  |  | 333 |  |  | 46 |  |  | 272 |  |  | 44
﻿Total | $ | 11,398 |  | $ | 19,519 |  | $ | 10,258 |  | $ | 17,854 |  | $ | 9,440 |  | $ | 16,376
﻿
| (1) |  | Long-lived assets primarily include investments, plant and equipment, goodwill and other intangible assets.
| (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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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