XML 32 R23.htm IDEA: XBRL DOCUMENT
v3.22.2.2

Note 15 - Reportable Segments | 9 Months Ended
--- | ---
Sep. 30, 2022
Notes to Financial Statements |
Segment Reporting Disclosure [Text Block] | 15. Reportable Segments The Company’s reportable segments are as follows:
● | Optical Communications – manufactures carrier network and enterprise network components for the telecommunications industry.
● | Display Technologies – manufactures glass substrates for flat panel liquid crystal displays and other high-performance display panels.
● | 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, serum and reagents enabling workflow solutions for drug discovery and bioproduction.
All other businesses that do not meet the quantitative threshold for separate reporting have been grouped as “Hemlock and Emerging Growth Businesses”. The net sales for this group are primarily attributable to Hemlock, which is an operating segment that produces solar and semiconductor products. The emerging growth businesses primarily consist of Pharmaceutical Technologies (“CPT”), Auto Glass Solutions (“AGS”) and the Emerging Innovations Group (“EIG”), which are also operating segments. Financial results for the reportable segments are prepared on a basis consistent with the internal disaggregation of financial information to assist the chief operating decision maker (“CODM”) in making internal operating decisions. A significant portion of segment revenues and expenses are denominated in currencies other than the U.S. dollar. Management believes it is important to understand the impact on core net income of translating these currencies into U.S. dollars. For segment sales and net income, the Company utilizes constant-currency reporting for Display Technologies, Specialty Materials, Environmental Technologies and Life Sciences segments for the Japanese yen, South Korean won, Chinese yuan, new Taiwan dollar and the euro. Certain income and expenses are included in the unallocated amounts in the reconciliation of reportable segment net income (loss) to consolidated net income. These include items that are not used by the CODM in evaluating the results of, or in allocating resources to, the segments and include the following: the impact of translated earnings contracts; acquisition-related costs; discrete tax items and other tax-related adjustments; certain litigation, regulatory and other legal matters; restructuring, impairment losses and other charges and credits; and other non-recurring non-operational items. Although these amounts are excluded from segment results, they are included in reported consolidated results. Reportable Segments and Hemlock and Emerging Growth Businesses (in millions):
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Hemlock |  |  |  |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | and |  |  |  |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Emerging |  |  |  |
|  | Optical |  |  | Display |  |  | Specialty |  |  | Environmental |  |  | Life |  |  | Growth |  |  |  |  |
|  | Communications |  |  | Technologies |  |  | Materials |  |  | Technologies |  |  | Sciences |  |  | Businesses |  |  | Total |
Three months ended September 30, 2022 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Segment net sales |  | $ | 1,317 |  |  | $ | 686 |  |  | $ | 519 |  |  | $ | 425 |  |  | $ | 312 |  |  | $ | 407 |  |  | $ | 3,666 |
Depreciation (1) |  | $ | 96 |  |  | $ | 151 |  |  | $ | 56 |  |  | $ | 44 |  |  | $ | 23 |  |  | $ | 38 |  |  | $ | 408 |
Research, development and engineering expenses (2) |  | $ | 60 |  |  | $ | 31 |  |  | $ | 66 |  |  | $ | 25 |  |  | $ | 10 |  |  | $ | 43 |  |  | $ | 235 |
Income tax provision (3) |  | $ | (50 | ) |  | $ | (35 | ) |  | $ | (26 | ) |  | $ | (23 | ) |  | $ | (11 | ) |  | $ | (8 | ) |  | $ | (153 | )
Segment net income (4) |  | $ | 183 |  |  | $ | 134 |  |  | $ | 96 |  |  | $ | 87 |  |  | $ | 43 |  |  | $ | 18 |  |  | $ | 561 |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Hemlock |  |  |  |  |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | and |  |  |  |  |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Emerging |  |  |  |  |
|  | Optical |  |  | Display |  |  | Specialty |  |  | Environmental |  |  | Life |  |  | Growth |  |  |  |  |
|  | Communications |  |  | Technologies |  |  | Materials |  |  | Technologies |  |  | Sciences |  |  | Businesses |  |  | Total |
Three months ended September 30, 2021 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Segment net sales |  | $ | 1,131 |  |  | $ | 956 |  |  | $ | 556 |  |  | $ | 385 |  |  | $ | 305 |  |  | $ | 306 |  |  | $ | 3,639 |
Depreciation (1) |  | $ | 58 |  |  | $ | 153 |  |  | $ | 42 |  |  | $ | 34 |  |  | $ | 14 |  |  | $ | 38 |  |  | $ | 339 |
Research, development and engineering expenses (2) |  | $ | 57 |  |  | $ | 31 |  |  | $ | 49 |  |  | $ | 28 |  |  | $ | 9 |  |  | $ | 44 |  |  | $ | 218 |
Income tax provision (3) |  | $ | (38 | ) |  | $ | (64 | ) |  | $ | (28 | ) |  | $ | (16 | ) |  | $ | (12 | ) |  | $ | (1 | ) |  | $ | (159 | )
Segment net income (loss) (4) |  | $ | 139 |  |  | $ | 247 |  |  | $ | 107 |  |  | $ | 60 |  |  | $ | 45 |  |  | $ | (5 | ) |  | $ | 593 |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Hemlock |  |  |  |  |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | and |  |  |  |  |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Emerging |  |  |  |  |
|  | Optical |  |  | Display |  |  | Specialty |  |  | Environmental |  |  | Life |  |  | Growth |  |  |  |  |
|  | Communications |  |  | Technologies |  |  | Materials |  |  | Technologies |  |  | Sciences |  |  | Businesses |  |  | Total |
Nine months ended September 30, 2022 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Segment net sales |  | $ | 3,828 |  |  | $ | 2,523 |  |  | $ | 1,497 |  |  | $ | 1,190 |  |  | $ | 934 |  |  | $ | 1,200 |  |  | $ | 11,172 |
Depreciation (1) |  | $ | 223 |  |  | $ | 453 |  |  | $ | 138 |  |  | $ | 111 |  |  | $ | 53 |  |  | $ | 111 |  |  | $ | 1,089 |
Research, development and engineering expenses (2) |  | $ | 173 |  |  | $ | 92 |  |  | $ | 163 |  |  | $ | 74 |  |  | $ | 28 |  |  | $ | 121 |  |  | $ | 651 |
Income tax provision (3) |  | $ | (146 | ) |  | $ | (157 | ) |  | $ | (70 | ) |  | $ | (59 | ) |  | $ | (32 | ) |  | $ | (19 | ) |  | $ | (483 | )
Segment net income (4) |  | $ | 531 |  |  | $ | 598 |  |  | $ | 262 |  |  | $ | 223 |  |  | $ | 122 |  |  | $ | 35 |  |  | $ | 1,771 |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Hemlock |  |  |  |  |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | and |  |  |  |  |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Emerging |  |  |  |  |
|  | Optical |  |  | Display |  |  | Specialty |  |  | Environmental |  |  | Life |  |  | Growth |  |  |  |  |
|  | Communications |  |  | Technologies |  |  | Materials |  |  | Technologies |  |  | Sciences |  |  | Businesses |  |  | Total |
Nine months ended September 30, 2021 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Segment net sales |  | $ | 3,143 |  |  | $ | 2,758 |  |  | $ | 1,490 |  |  | $ | 1,233 |  |  | $ | 917 |  |  | $ | 865 |  |  | $ | 10,406 |
Depreciation (1) |  | $ | 174 |  |  | $ | 450 |  |  | $ | 125 |  |  | $ | 105 |  |  | $ | 40 |  |  | $ | 104 |  |  | $ | 998 |
Research, development and engineering expenses (2) |  | $ | 160 |  |  | $ | 79 |  |  | $ | 143 |  |  | $ | 84 |  |  | $ | 25 |  |  | $ | 114 |  |  | $ | 605 |
Income tax (provision) benefit (3) |  | $ | (109 | ) |  | $ | (184 | ) |  | $ | (74 | ) |  | $ | (57 | ) |  | $ | (39 | ) |  | $ | 10 |  |  | $ | (453 | )
Segment net income (loss) (4) |  | $ | 398 |  |  | $ | 708 |  |  | $ | 279 |  |  | $ | 215 |  |  | $ | 145 |  |  | $ | (44 | ) |  | $ | 1,701 |
(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) | Income tax (provision) benefit reflects a tax rate of 21%.
(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. Expenses that are not allocated to the segments are included in the reconciliation of reportable segment net income (loss) to consolidated net income.
The following table is a reconciliation of net sales of reportable segments to consolidated net sales (in millions):
|  | Three months ended |  |  | Nine months ended |
|  | September 30, |  |  | September 30, |
|  | 2022 |  |  | 2021 |  |  | 2022 |  |  | 2021 |
Net sales of reportable segments |  | $ | 3,259 |  |  | $ | 3,333 |  |  | $ | 9,972 |  |  | $ | 9,541 |
Net sales of Hemlock and Emerging Growth Businesses |  |  | 407 |  |  |  | 306 |  |  |  | 1,200 |  |  |  | 865 |
Impact of constant currency reporting (1) |  |  | (178 | ) |  |  | (24 | ) |  |  | (389 | ) |  |  |  |
Consolidated net sales |  | $ | 3,488 |  |  | $ | 3,615 |  |  | $ | 10,783 |  |  | $ | 10,406 |
(1) | This amount represents the impact of foreign currency adjustments primarily in the Display Technologies segment.
The following table is a reconciliation of net income of reportable segments to net income attributable to Corning Incorporated (in millions):
|  | Three months ended |  |  | Nine months ended |
|  | September 30, |  |  | September 30, |
|  | 2022 |  |  | 2021 |  |  | 2022 |  |  | 2021 |
Net income of reportable segments |  | $ | 543 |  |  | $ | 598 |  |  | $ | 1,736 |  |  | $ | 1,745 |
Net income (loss) of Hemlock and Emerging Growth Businesses |  |  | 18 |  |  |  | (5 | ) |  |  | 35 |  |  |  | (44 | )
Unallocated amounts: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Impact of constant currency reporting not included in segment net income (loss) (1) |  |  | (136 | ) |  |  | (33 | ) |  |  | (319 | ) |  |  | (47 | )
(Loss) gain on foreign currency hedges related to translated earnings |  |  | (68 | ) |  |  | (13 | ) |  |  | 257 |  |  |  | 262 |
Translation gain on Japanese yen-denominated debt |  |  | 84 |  |  |  | 4 |  |  |  | 321 |  |  |  | 127 |
Litigation, regulatory and other legal matters |  |  | (23 | ) |  |  | (3 | ) |  |  | (65 | ) |  |  | (11 | )
Research, development, and engineering expenses (2) |  |  | (43 | ) |  |  | (34 | ) |  |  | (115 | ) |  |  | (107 | )
Amortization of intangibles |  |  | (31 | ) |  |  | (32 | ) |  |  | (92 | ) |  |  | (97 | )
Interest expense, net |  |  | (59 | ) |  |  | (64 | ) |  |  | (180 | ) |  |  | (205 | )
Income tax benefit |  |  | 119 |  |  |  | 50 |  |  |  | 103 |  |  |  | 51 |
Restructuring, impairment and other charges and credits (3) |  |  | (138 | ) |  |  | (40 | ) |  |  | (217 | ) |  |  | (42 | )
Gain on sale of a business |  |  |  |  |  |  |  |  |  |  | 53 |  |  |  | 54 |
Other corporate items |  |  | (58 | ) |  |  | (57 | ) |  |  | (165 | ) |  |  | (267 | )
Net income attributable to Corning Incorporated |  | $ | 208 |  |  | $ | 371 |  |  | $ | 1,352 |  |  | $ | 1,419 |
(1) | This amount represents the impact of foreign currency adjustments primarily in the Display Technologies segment.
(2) | Amount does not include research, development, and engineering expense related to restructuring, impairment and other charges and credits.
(3) | Refer to Note 2 (Restructuring, Impairment and Other Charges and Credits) to the consolidated financial statements for additional information on activities.

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

X
- 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/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8924-108599 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8981-108599 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9031-108599 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (f) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (e) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (d) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8736-108599 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9054-108599 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 15 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8657-108599 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI https://asc.fasb.org/topic&trid=2134510 + Details
Name: | us-gaap_SegmentReportingDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration