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Investments | 12 Months Ended
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Dec. 31, 2018
Investments [Abstract] |
Investments | 5.Invest ments ﻿ Investments are comprised of the following (in millions): ﻿
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﻿ |  |  |  |  |  |  |  |
﻿ |  | Ownership |  | December 31,
﻿ |  | interest |  | 2018 |  | 2017
﻿ |  |  |  |  |  |  |  |
﻿Affiliated companies accounted for by the equity method (1)(2) |  | 20% to 50% |  | $ | 354 |  | $ | 280
﻿Other investments |  |  |  |  | 22 |  |  | 60
﻿Subtotal Investment Assets |  |  |  | $ | 376 |  | $ | 340
﻿ |  |  |  |  |  |  |  |
﻿ |  |  |  |  |  |  |  |
﻿Affiliated companies accounted for by the equity method - HSG (1)(2) |  | 50% |  | $ |  |  | $ | 105
﻿Subtotal Investment Liabilities |  |  |  | $ |  |  | $ | 105
﻿
| (1) |  | Amount reflects Corning’s direct ownership interests in the affiliated companies at December 31, 2018 and December 31, 2017. Corning does not control any of such entities.
| (2) |  | HSG indirectly holds an 80.5% interest in a HSG operating partnership. At December 31, 2018, the carrying value of the investment in HSG was $42 million and recorded in Investments. At December 31, 2017, the negative carrying value of the investment in HSG was $105 million and recorded in Other Liabilities.
5.Investments (continued) ﻿ Affiliated Companies at Equity ﻿ The results of operations and financial position of the investments accounted for under the equity method follow (in millions): ﻿
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﻿ |  | Years ended December 31,
﻿ |  | 2018 |  | 2017 |  | 2016
﻿ |  |  |  |  |  |  |  |  |
﻿Statement of operations: |  |  |  |  |  |  |  |  |
﻿Net sales |  | $ | 1,759 |  | $ | 2,346 |  | $ | 4,024
﻿Gross profit |  | $ | 424 |  | $ | 560 |  | $ | 1,006
﻿Net income |  | $ | 835 |  | $ | 721 |  | $ | 565
﻿Corning’s equity in earnings of affiliated companies |  | $ | 390 |  | $ | 361 |  | $ | 284
﻿ |  |  |  |  |  |  |  |  |
﻿Related party transactions: |  |  |  |  |  |  |  |  |
﻿Corning sales to affiliated companies |  | $ | 184 |  | $ | 108 |  | $ | 95
﻿Corning purchases from affiliated companies |  | $ | 11 |  | $ | 12 |  | $ | 12
﻿Corning transfers of assets, at cost, to affiliated companies |  | $ | 2 |  | $ | 22 |  | $ | 44
﻿Dividends received from affiliated companies |  | $ | 241 |  | $ | 201 |  | $ | 85
﻿ |  |  |  |  |  |  |  |  |
﻿ |  | Years ended December 31, |  |  |
﻿ |  | 2018 |  | 2017 |  |
﻿Balance sheet: |  |  |  |  |  |  |  |  |
﻿Current assets |  | $ | 1,716 |  | $ | 1,593 |  |  |
﻿Noncurrent assets |  | $ | 1,922 |  | $ | 1,999 |  |  |
﻿Short-term borrowings, including current portion of long-term debt |  | $ | 8 |  | $ | 3 |  |  |
﻿Other current liabilities |  | $ | 810 |  | $ | 700 |  |  |
﻿Long-term debt |  | $ | 14 |  | $ | 16 |  |  |
﻿Other long-term liabilities |  | $ | 1,708 |  | $ | 2,128 |  |  |
﻿Non-controlling interest |  | $ | 259 |  | $ | 313 |  |  |
﻿ |  |  |  |  |  |  |  |  |
﻿Related party transactions: |  |  |  |  |  |  |  |  |
﻿Balances due from affiliated companies |  | $ | 95 |  | $ | 47 |  |  |
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﻿ We have contractual agreements with several of our equity affiliates which include sales, purchasing, licensing and technology agreements. ﻿ As of December 31, 2018 and 2017, the undistributed earnings of equity companies included in our retained earnings were not material. ﻿ HSG and Dow Corning ﻿ On May 31, 2016, Corning completed the strategic realignment of its equity investment in Dow Corning Corporation (”Dow Corning”) pursuant to the Transaction Agreement announced in December 2015. Under the terms of the Transaction Agreement, Corning exchanged with Dow Corning its 50% stock interest in Dow Corning for 100% of the stock of a newly formed entity, which held an equity interest in Hemlock Semiconductor Group (“HSG”) and approximately $4.8 billion in cash. 5.Investments (continued) ﻿ Prior to realignment, HSG, a consolidated subsidiary of Dow Corning, was an indirect equity investment of Corning. Upon completion of the exchange, Corning received a direct equity investment in HSG. Because our ownership percentage in HSG did not change as a result of the realignment, the investment in HSG is recorded at its carrying value, which had a negative carrying value of $383 million at the transaction date. The negative carrying value resulted from a one-time charge to this entity in 2014 for the permanent abandonment of certain assets. Excluding this charge, the entity has been profitable and recovered its equity as of December 31, 2018. The carrying value of the investment in HSG as of December 31, 2018 was $42 million and recorded in Investments. ﻿ Corning’s financial statements as of December 31, 2016 include the positive impact of the release of a deferred tax liability of $105 million related to Corning’s tax on Dow Corning’s earnings that were not distributed as of the date of the transaction and a non-taxable gain of $2,676 million on the realignment. Details of the gain are illustrated below (in millions): ﻿
﻿ |  |
﻿ |  |
﻿Cash | $ | 4,818
﻿Carrying Value of Dow Corning Equity Investment |  | (1,560)
﻿Carrying Value of HSG Equity Investment |  | (383)
﻿Other (1) |  | (199)
﻿Gain | $ | 2,676
﻿
| (1) |  | Primarily consists of the release of accumulated other comprehensive income items related to unamortized actuarial losses related to Dow Corning’s pension plan and foreign currency translation gains in the amounts of $260 million and $45 million, respectively.
﻿ Corning began reporting HSG equity earnings and dividends on June 1, 2016. HSG information presented below is shown for the years ended December 31, 2018 and 2017 and the seven months ended December 31, 2016 (in millions): ﻿ ﻿ ﻿
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﻿ |  | Years ended December 31,
﻿ |  | 2018 |  | 2017 |  | 2016
﻿ |  |  |  |  |  |  |  |  |
﻿Statement of operations: |  |  |  |  |  |  |  |  |
﻿Net sales |  | $ | 1,158 |  | $ | 1,716 |  | $ | 1,119
﻿Gross profit |  | $ | 367 |  | $ | 469 |  | $ | 361
﻿Net income |  | $ | 814 |  | $ | 706 |  | $ | 421
﻿Corning’s equity in earnings of affiliated companies |  | $ | 388 |  | $ | 352 |  | $ | 212
﻿ |  |  |  |  |  |  |  |  |
﻿Related party transactions: |  |  |  |  |  |  |  |  |
﻿Dividends received from affiliated companies |  | $ | 241 |  | $ | 196 |  | $ | 65
﻿ |  |  |  |  |  |  |  |  |
﻿ |  | Years ended December 31, |  |  |
﻿ |  | 2018 |  | 2017 |  |  |
﻿Balance sheet: |  |  |  |  |  |  |  |  |
﻿Current assets |  | $ | 1,188 |  | $ | 1,206 |  |  |
﻿Noncurrent assets |  | $ | 1,414 |  | $ | 1,522 |  |  |
﻿Short-term borrowings, including current portion of long-term debt |  | $ | 3 |  | $ | 3 |  |  |
﻿Other current liabilities |  | $ | 540 |  | $ | 484 |  |  |
﻿Long-term debt |  | $ | 11 |  | $ | 15 |  |  |
﻿Other long-term liabilities |  | $ | 1,708 |  | $ | 2,126 |  |  |
﻿Non-controlling interest |  | $ | 259 |  | $ | 313 |  |  |
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﻿ ﻿

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- Definition The entire disclosure for equity method investments and joint ventures. Equity method investments are investments that give the investor the ability to exercise significant influence over the operating and financial policies of an investee. Joint ventures are entities owned and operated by a small group of businesses as a separate and specific business or project for the mutual benefit of the members of the group. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 323 -URI http://asc.fasb.org/topic&trid=2196965 + Details
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