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Note 3 - Income Taxes
 6 Months Ended
Jun. 30, 2023
Notes to Financial Statements  
Income Tax Disclosure [Text Block]

3. Income Taxes

 

The following table presents the provision for income taxes and the related effective tax rate (in millions, except percentages):

 

  

Three months ended

  

Six months ended

 
  

June 30,

  

June 30,

 
  

2023

  

2022

  

2023

  

2022

 

Provision for income taxes

 $(106) $(166) $(143) $(346)

Effective tax rate

 

25.9

%  22.1%  22.4%  22.6%

 

For the three and six months ended June 30, 2023, the effective tax rate differed from the United States (“U.S.”) statutory rate of 21%, primarily due to changes in valuation allowance assessments, partially offset by differences arising from foreign earnings, adjustments to share-based compensation, and a net benefit due to foreign derived intangible income.

 

For the three and six months ended June 30, 2022, the effective tax rate differed from the U.S. statutory rate of 21%, primarily due to differences arising from foreign earnings and changes in tax reserves, partially offset by the impact of changes in tax legislation and adjustments to share-based compensation.

 

Corning Precision Materials, a South Korean subsidiary, is currently appealing certain tax assessments and tax refund claims for tax years 2010 through 2019. The Company was required to deposit the disputed tax amounts with the South Korean government as a condition of its appeal of any tax assessment. During the second quarter of 2023, $99 million was no longer under dispute and was refunded to the Company. The non-current receivable balance was $256 million and $349 million as of June 30, 2023 and December 31, 2022, respectively, for the amount on deposit with the South Korean government.  Corning believes that it is more likely than not the Company will prevail in the appeals process relating to these matters.