Item 16. Form 10-K Summary.

None.

Signatures

Pursuant to the requirements of Section 13 or 15(d) of the Securities and Exchange Act of 1934, the Registrant has duly caused his report to be signed on its behalf by the undersigned, thereunto duly authorized.

			Corning Incorporated
Date: February 13, 2025			By:			/s/ Wendell P. Weeks
						Wendell P. Weeks
						Chairman of the Board of Directors,
						Chief Executive Officer

Power of Attorney

KNOW ALL PERSONS BY THESE PRESENTS, that each person whose signature appears below constitutes and appoints Edward A. Schlesinger, Lewis A. Steverson and Stefan Becker, jointly and severally, his or her attorneys-in-fact, each with the power of substitution, for him or her in any and all capacities, to sign any amendments to this Annual Report on Form 10-K, and to file the same, with exhibits thereto and other documents in connection therewith, with the Securities and Exchange Commission, hereby ratifying and confirming all that each of said attorneys-in-fact, or his substitute or substitutes, may do or cause to be done by virtue hereof.

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the Registrant and in the capacities as indicated and on the 13th day of February, 2025.

Signature						Capacity
/s/ Wendell P. Weeks						Chairman of the Board of Directors, Chief Executive Officer, and Director
Wendell P. Weeks						(Principal Executive Officer)
/s/ Edward A. Schlesinger						Executive Vice President and Chief Financial Officer (Principal Financial Officer)
Edward A. Schlesinger
/s/ Stefan Becker						Senior Vice President and Corporate Controller (Principal Accounting Officer)
Stefan Becker
/s/ Leslie A. Brun						Director
Leslie A. Brun
/s/ Stephanie A. Burns						Director
Stephanie A. Burns
/s/ Pamela J. Craig						Director
Pamela J. Craig
/s/ Robert F. Cummings, Jr.						Director
Robert F. Cummings, Jr.
/s/ Roger W. Ferguson Jr.						Director
Roger W. Ferguson Jr.

Signature						Capacity
/s/ Thomas D. French						Director
Thomas D. French
/s/ Deborah A. Henretta						Director
Deborah A. Henretta
/s/Daniel P. Huttenlocher						Director
Daniel P. Huttenlocher
/s/ Kevin J. Martin						Director
Kevin J. Martin
/s/ Deborah D. Rieman						Director
Deborah D. Rieman
/s/ Mark S. Wrighton						Director
Mark S. Wrighton

Corning Incorporated

2024 Annual Report

Index to Financial Statements

						Page
Report of Independent Registered Public Accounting Firm (PCAOB ID 238)						55
Consolidated Statements of Income						57
Consolidated Statements of Comprehensive Income						58
Consolidated Balance Sheets						59
Consolidated Statements of Cash Flows						60
Consolidated Statements of Changes in Shareholders’ Equity						61
Notes to Consolidated Financial Statements
			1. Summary of Significant Accounting Policies			62
			2. Restructuring, Impairment and Other Charges and Credits			70
			3. Revenue			71
			4. Inventories			72
			5. Leases			72
			6. Income Taxes			74
			7. Property, Plant and Equipment, Net of Accumulated Depreciation			77
			8. Goodwill and Other Intangible Assets			77
			9. Other Assets and Other Liabilities			78
			10. Debt			79
			11. Employee Retirement Plans			80
			12. Commitments, Contingencies and Guarantees			86
			13. Financial Instruments			87
			14. Shareholders’ Equity			89
			15. Earnings Per Common Share			92
			16. Share-Based Compensation			92
			17. Reportable Segments			94

Report of Independent Registered Public Accounting Firm

To the Board of Directors and Shareholders of Corning Incorporated

Opinions on the Financial Statements and Internal Control over Financial Reporting

We have audited the accompanying consolidated balance sheets of Corning Incorporated and its subsidiaries (the “Company”) as of December 31, 2024 and 2023, and the related consolidated statements of income, comprehensive income, changes in shareholders’ equity and cash flows for each of the three years in the period ended December 31, 2024, including the related notes (collectively referred to as the “consolidated financial statements”). We also have audited the Company’s internal control over financial reporting as of December 31, 2024, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of the Company as of December 31, 2024 and 2023, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2024 in conformity with accounting principles generally accepted in the United States of America. Also in our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2024, based on criteria established in Internal Control - Integrated Framework (2013) issued by the COSO.

Basis for Opinions

The Company’s management is responsible for these consolidated financial statements, for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting, included in Management’s Annual Report on Internal Control Over Financial Reporting appearing under Item 9A. Our responsibility is to express opinions on the Company’s consolidated financial statements and on the Company’s internal control over financial reporting based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud, and whether effective internal control over financial reporting was maintained in all material respects.

Our audits of the consolidated financial statements included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audits also included performing such other procedures as we considered necessary in the circumstances. We believe that our audits provide a reasonable basis for our opinions.

Definition and Limitations of Internal Control over Financial Reporting

A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Critical Audit Matters

The critical audit matter communicated below is a matter arising from the current period audit of the consolidated financial statements that was communicated or required to be communicated to the audit committee and that (i) relates to accounts or disclosures that are material to the consolidated financial statements and (ii) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.

Income Taxes - Receivables for South Korean Tax Disputes

As described in Notes 1, 6, and 9 to the consolidated financial statements, in evaluating the tax benefits associated with the Company’s various tax filing positions, management records a tax benefit for uncertain tax positions using the highest cumulative tax benefit that is more likely than not to be realized. Adjustments are made to the asset or liability for unrecognized tax benefits in the period in which the Company files the return containing the tax position or when new information becomes available. The Company is currently appealing certain South Korean tax assessments and tax refund claims for tax years 2010 through 2019. The Company is required to deposit the disputed tax amounts with the South Korean government as a condition of its appeal of any tax assessment. The Company believes that it is more likely than not that the Company will prevail in the appeals process and as a result, management recorded a non-current receivable of $253 million as of December 31, 2024.

The principal considerations for our determination that performing procedures relating to the receivables for South Korean tax disputes is a critical audit matter are (i) the significant judgment by management when applying the more-likely-than-not recognition criteria to the Company’s uncertain tax positions based on the application of the tax law; (ii) a high degree of auditor judgment, subjectivity, and effort in performing procedures and evaluating audit evidence relating to management’s assumption that the Company will prevail in the appeal of any tax assessment; and (iii) the audit effort involved the use of professionals with specialized skill and knowledge.

Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the consolidated financial statements. These procedures included testing the effectiveness of controls relating to uncertain tax positions, including management’s assessment of the South Korean tax disputes. These procedures also included, among others, obtaining management’s assessment and evidence supporting the more-likely-than-not tax position on the South Korean tax disputes and evaluating the reasonableness of the likelihood that the tax positions will ultimately be sustained upon examination by the South Korean tax authorities and through the appeals process. Professionals with specialized skill and knowledge were used to assist in evaluating management’s assessment and supporting evidence related to the application of the tax law.

/s/ PricewaterhouseCoopers LLP

New York, New York

February 13, 2025

We have served as the Company’s auditor since 1944.

Consolidated Statements of Income			Corning Incorporated and Subsidiary Companies

			Year ended December 31,
(in millions, except per share amounts)			2024						2023						2022
Net sales			$	13,118					$	12,588					$	14,189
Cost of sales			8,842						8,657						9,683
Gross margin			4,276						3,931						4,506
Operating expenses:
Selling, general and administrative expenses			1,931						1,843						1,898
Research, development and engineering expenses			1,089						1,076						1,047
Amortization of purchased intangibles			121						122						123
Operating income			1,135						890						1,438
Interest income			47						38						15
Interest expense			(329)						(329)						(292)
Translated earnings contract gain, net (Note 13)			83						161						351
Other (expense) income, net			(123)						56						285
Income before income taxes			813						816						1,797
Provision for income taxes (Note 6)			(221)						(168)						(411)
Net income			592						648						1,386
Net income attributable to non-controlling interest			(86)						(67)						(70)
Net income attributable to Corning Incorporated			$	506					$	581					$	1,316
Earnings per common share available to common shareholders:
Basic (Note 15)			$	0.59					$	0.69					$	1.56
Diluted (Note 15)			$	0.58					$	0.68					$	1.54

The accompanying notes are an integral part of these consolidated financial statements.

Consolidated Statements of Comprehensive Income			Corning Incorporated and Subsidiary Companies

			Year ended December 31,
(in millions)			2024						2023						2022
Net income			$	592					$	648					$	1,386
Foreign currency translation adjustments and other (Note 14)			(588)						(230)						(779)
Unamortized gains (losses) and prior service credits (costs) for postretirement benefit plans			184						(24)						154
Realized and unrealized (losses) gains on derivatives			(91)						36						(30)
Other comprehensive loss, net of tax			(495)						(218)						(655)
Comprehensive income			97						430						731
Comprehensive income attributable to non-controlling interest			(86)						(67)						(70)
Comprehensive income attributable to Corning Incorporated			$	11					$	363					$	661

The accompanying notes are an integral part of these consolidated financial statements.

Consolidated Balance Sheets			Corning Incorporated and Subsidiary Companies

			December 31,
(in millions, except share and per share amounts)			2024						2023
Assets
Current assets:
Cash and cash equivalents			$	1,768					$	1,779
Trade accounts receivable, net of doubtful accounts - $33 and $30			2,053						1,572
Inventories (Note 4)			2,724						2,666
Other current assets (Notes 9 and 13)			1,447						1,195
Total current assets			7,992						7,212
Property, plant and equipment, net of accumulated depreciation - $14,492 and $14,553 (Note 7)			13,359						14,630
Goodwill (Note 8)			2,363						2,380
Other intangible assets, net (Note 8)			752						905
Deferred income taxes (Note 6)			1,130						1,153
Other assets (Notes 9 and 13)			2,139						2,220
Total Assets			$	27,735					$	28,500
Liabilities and Equity
Current liabilities:
Current portion of long-term debt and short-term borrowings (Note 10)			$	326					$	320
Accounts payable			1,472						1,466
Other accrued liabilities (Notes 9 and 12)			3,121						2,533
Total current liabilities			4,919						4,319
Long-term debt (Note 10)			6,885						7,206
Postretirement benefits other than pensions (Note 11)			336						398
Other liabilities (Notes 9 and 12)			4,525						4,709
Total liabilities			16,665						16,632
Commitments and contingencies (Note 12)
Shareholders’ equity (Note 14):
Common stock – Par value $0.50 per share; Shares authorized 3.8 billion; Shares issued: 1.8 billion and 1.8 billion			921						916
Additional paid-in capital – common stock			17,264						16,929
Retained earnings			15,926						16,391
Treasury stock, at cost; Shares held: 987 million and 980 million			(20,882)						(20,637)
Accumulated other comprehensive loss			(2,543)						(2,048)
Total Corning Incorporated shareholders’ equity			10,686						11,551
Non-controlling interest			384						317
Total equity			11,070						11,868
Total Liabilities and Equity			$	27,735					$	28,500

The accompanying notes are an integral part of these consolidated financial statements.

Consolidated Statements of Cash Flows			Corning Incorporated and Subsidiary Companies

			Year ended December 31,
(in millions)			2024						2023						2022
Cash Flows from Operating Activities:
Net income			$	592					$	648					$	1,386
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation			1,229						1,247						1,329
Amortization of purchased intangibles			121						122						123
Loss on disposal of assets, net			143						155						189
Share-based compensation expense			273						218						175
Translation gain on Japanese yen-denominated debt			(104)						(100)						(191)
Deferred tax benefit			(33)						(75)						(46)
Translated earnings contract gain			(83)						(161)						(351)
Release of cumulative translation losses			145
Tax deposit refund									99
Changes in assets and liabilities:
Trade accounts receivable			(717)						50						113
Inventories			(171)						157						(522)
Other current assets			(107)						(80)						(139)
Accounts payable and other current liabilities			470						(173)						408
Customer deposits and government incentives			(6)						(42)						110
Deferred income			(27)						(5)						(49)
Other, net			214						(55)						80
Net cash provided by operating activities			1,939						2,005						2,615
Cash Flows from Investing Activities:
Capital expenditures			(965)						(1,390)						(1,604)
Proceeds from sale of equipment to related party									67
Proceeds from sale of business															76
Proceeds from sale of assets			80						22
Realized gains on translated earnings contracts and other			279						326						300
Premiums paid on hedging contracts			(98)						(9)						(75)
Other, net			(40)						(16)						(52)
Net cash used in investing activities			(744)						(1,000)						(1,355)
Cash Flows from Financing Activities:
Repayments of debt			(267)						(284)						(87)
Proceeds from issuance of debt			153						82						127
Proceeds from issuance of euro bonds									918
Proceeds from cross currency swap			134
Payment for redemption of preferred stock									(507)						(507)
Payments of employee withholding tax on stock awards			(81)						(106)						(47)
Proceeds from exercise of stock options			76						42						40
Purchases of common stock for treasury			(165)												(221)
Dividends paid			(986)						(989)						(932)
Other, net			(28)						(39)						(22)
Net cash used in financing activities			(1,164)						(883)						(1,649)
Effect of exchange rates on cash			(42)						(14)						(88)
Net (decrease) increase in cash and cash equivalents			(11)						108						(477)
Cash and cash equivalents at beginning of year			1,779						1,671						2,148
Cash and cash equivalents at end of year			$	1,768					$	1,779					$	1,671

The accompanying notes are an integral part of these consolidated financial statements.

Consolidated Statements of Changes in Shareholders’ Equity			Corning Incorporated and Subsidiary Companies

(in millions)									Common stock						Additional paid-in capital common						Retained earnings						Treasury stock						Accumulated other comprehensive loss						Total Corning Incorporated shareholders’ equity						Non- controlling interest						Total
Balance as of December 31, 2021									$	907					$	16,475					$	16,389					$	(20,263)					$	(1,175)					$	12,333					$	212					$	12,545
Net income																					1,316																		1,316						70						1,386
Other comprehensive loss																																	(655)						(655)						(2)						(657)
Purchase of common stock for treasury																											(221)												(221)												(221)
Shares issued to benefit plans and for option exercises									3						207																								210												210
Common dividends ($1.08 per share)																					(926)																		(926)												(926)
Other, net (1)																					(1)						(48)												(49)						(13)						(62)
Balance as of December 31, 2022									$	910					$	16,682					$	16,778					$	(20,532)					$	(1,830)					$	12,008					$	267					$	12,275
Net income																					581																		581						67						648
Other comprehensive loss																																	(218)						(218)						(1)						(219)
Shares issued to benefit plans and for option exercises									6						247																								253												253
Common dividends ($1.12 per share)																					(968)																		(968)												(968)
Other, net (1)																											(105)												(105)						(16)						(121)
Balance as of December 31, 2023									$	916					$	16,929					$	16,391					$	(20,637)					$	(2,048)					$	11,551					$	317					$	11,868
Net income																					506																		506						86						592
Other comprehensive loss																																	(495)						(495)						(1)						(496)
Purchase of common stock for treasury, net																											(163)												(163)												(163)
Shares issued to benefit plans and for option exercises									5						335																								340												340
Common dividends ($1.12 per share)																					(971)																		(971)												(971)
Other, net (1)																											(82)												(82)						(18)						(100)
Balance as of December 31, 2024									$	921					$	17,264					$	15,926					$	(20,882)					$	(2,543)					$	10,686					$	384					$	11,070

(1)Treasury stock includes the deemed surrender to the Company of common stock to satisfy employee tax withholding obligations.

The accompanying notes are an integral part of these consolidated financial statements.

Corning Incorporated and Subsidiary Companies

Notes to Consolidated Financial Statements

1. Summary of Significant Accounting Policies

Organization

Corning Incorporated is a provider of high-performance glass for notebook computers, flat panel desktop monitors, display televisions and other information display applications; carrier network and enterprise network products for the telecommunications industry; ceramic substrates for gasoline and diesel engines in automotive and heavy-duty vehicle markets; laboratory products for the scientific community and specialized polymer products for biotechnology applications; advanced optical materials for the semiconductor industry and the scientific community; polycrystalline silicon products and other technologies. In these notes, the terms “Corning,” “Company,” “we,” “us,” or “our” mean Corning Incorporated and subsidiary companies.

Basis of Presentation and Principles of Consolidation

The consolidated financial statements include the accounts of Corning Incorporated and its consolidated subsidiaries (collectively, the “Company”), consisting of its wholly-owned subsidiaries and those entities in which we have a variable interest and of which we are the primary beneficiary, and are consolidated in conformity with accounting principles generally accepted in the United States of America (“GAAP”). All intercompany balances, transactions and profits have been eliminated.

Certain prior year amounts have been reclassified to conform to the current year presentation. These reclassifications had no material impact on the results of operations, financial position, or changes in shareholders’ equity.

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, expenses and related disclosures of contingent assets and liabilities in the consolidated financial statements and accompanying notes. Estimates are used for, but not limited to, revenue recognition, restructuring charges, valuation of acquired assets and liabilities, valuation and impairment of goodwill and long-lived assets, valuation of investments and equity interests, environmental and legal liabilities, commitments and contingencies, income taxes and deferred tax valuation allowances, valuation of pension and other postretirement employee benefit obligations and the fair value of share-based compensation. Due to the inherent uncertainty involved in making estimates, actual results could differ materially from these estimates.

Revenue Recognition

Most of the Company’s revenue is generated by delivery of products to customers and recognized at a point in time based on evaluation of when the customer obtains control of the products. Revenue is recognized when all performance obligations under the terms of a contract are satisfied and control of the product has been transferred to the customer. If customer acceptance clauses are present and it cannot be objectively determined that control has been transferred, revenue is only recorded when customer acceptance is received and all performance obligations have been satisfied. Sales of goods typically do not include multiple product and/or service elements. Shipping and handling fees are treated as fulfillment costs and not as separate performance obligations under the terms of revenue contracts due to the perfunctory nature of the shipping and handling obligations.

Revenue is measured as the amount of consideration expected in exchange for transferring goods or providing services. Sales tax, value-added tax and other taxes are collected concurrently with revenue-producing activities and excluded from revenue. Incidental contract costs that are not material in the context of the delivery of goods and services are recognized as an expense.

At the time revenue is recognized, allowances are recorded with the related reduction to revenue for estimated product returns, allowances and price discounts based upon historical experience and related terms of customer arrangements. Where product warranties are offered, liabilities are established for estimated warranty costs based upon historical experience and specific warranty provisions. Warranty liabilities are adjusted when experience indicates the expected outcome will differ from initial estimates of the liability. Product warranty liabilities were not material as of December 31, 2024 and 2023.

1. Summary of Significant Accounting Policies (Continued)

In addition, the Company has contractual arrangements with certain customers, mainly related to telecommunications products and comprised of design, installation, training and software maintenance services, in which revenue is recognized over time. The performance obligations under these contracts generally require services to be performed over time, resulting in either a straight-line amortization method or an input method using incurred and forecasted expense to predict revenue recognition patterns which follows satisfaction of the performance obligation. Corning’s other revenue was not material for the years ended December 31, 2024, 2023 and 2022.

Contract Assets and Liabilities

Contract assets, such as incremental costs to obtain or fulfill contracts, are an insignificant component of Corning’s revenue recognition process. Most of Corning’s fulfillment costs as a manufacturer of products are classified as inventory, fixed assets and intangible assets, which are accounted for under the respective guidance for those asset types. Other fulfillment costs are immaterial due to the nature of the products and their respective manufacturing processes.

Contract liabilities include customer deposits, deferred revenue and other advanced payments. Customer deposits are primarily related to Display products and deferred revenue is primarily related to Hemlock Semiconductor Group (“HSG”). Other advanced payments are not significant to operations and are recorded within other accrued liabilities on the consolidated balance sheets.

Research and Development Costs

Research and development costs are charged to expense as incurred. Research and development costs totaled $0.8 billion, $0.9 billion and $0.9 billion for the years ended December 31, 2024, 2023 and 2022, respectively.

Foreign Currency Translation and Transactions

The determination of the functional currency for Corning’s foreign subsidiaries is made based on the appropriate economic factors. For most foreign operations, the local currencies are generally considered to be the functional currencies. Corning’s most significant exception is a Taiwanese subsidiary, which uses the Japanese yen as its functional currency. For all transactions denominated in a currency other than a subsidiary’s functional currency, foreign currency revaluation and remeasurement gains and losses are included in income for the period in which the exchange rates changed. A net foreign currency revaluation and remeasurement gain of $165 million, $59 million and $130 million was recorded within other expense (income), net in the consolidated statements of income for the years ended December 31, 2024, 2023 and 2022, respectively.

Foreign subsidiary functional currency balance sheet accounts have been translated at period-end exchange rates, and statement of operations accounts have been translated using average exchange rates for the period. Translation gains and losses are recorded as a separate component of accumulated other comprehensive loss in shareholders’ equity. The effects of remeasuring non-functional currency assets and liabilities into the functional currency are included in current earnings, except for those related to intra-entity foreign currency transactions of a long-term investment nature which are recorded together with translation gains and losses in accumulated other comprehensive loss in shareholders’ equity. Upon sale or substantially complete liquidation of an investment in a foreign entity, the amount of net translation gains or losses that have been accumulated in other comprehensive loss attributable to that investment are reported as a gain or loss for the period in which the sale or liquidation occurs. During 2024, Corning recognized $145 million of non-cash cumulative foreign currency translation losses related to the substantial liquidation and disposition of certain foreign entities, which was recorded in other (expense) income, net in the consolidated statements of income.

Share-Based Compensation

Corning maintains long-term incentive plans (the “Plans”) for employees and non-employee members of its Board of Directors. The Plans are established to grant equity-based compensation awards, including time-based restricted stock and restricted stock units, performance-based restricted stock units, stock options, stock appreciation rights or a combination of awards (collectively, “share-based awards”).

Share-based compensation cost is allocated to cost of sales, selling, general and administrative expenses and research, development and engineering expenses in the consolidated statements of income.

The cost of share-based compensation awards is equal to the fair value of the award at the grant date and compensation cost is recognized for awards expected to ultimately vest. The number of awards expected to vest equals the total awards granted less an estimation of the number of forfeitures expected to occur prior to vesting. The Company reassesses the probability of vesting annually and adjusts share-based compensation cost based on its probability assessment.

1. Summary of Significant Accounting Policies (Continued)

The forfeiture assumption is ultimately adjusted to the actual forfeiture rate. The effect of any change in estimated forfeitures would be recognized through a cumulative adjustment that would be included in compensation cost in the period of the change in estimate. As a result, changes in the forfeiture assumptions do not impact the total amount of expense ultimately recognized over the service period. Rather, different forfeiture assumptions would only impact the timing of expense recognition over the service period.

For awards granted to non-employee members of the Company’s Board of Directors, the Company recognizes the compensation cost over the service period for awards with vesting terms and immediately for awards with no vesting terms. For awards granted to employees, the Company recognizes the compensation cost over the service period. For awards containing retirement provisions that are granted to retirement eligible employees, share-based compensation cost is recognized over the period in which the required service is expected to be met.

During the requisite service period, the Company also recognizes a deferred income tax benefit for the expense recognized. At the time of subsequent vesting, exercise, forfeiture, or expiration of an award, the difference between the Company’s actual income tax deduction, if any, and the previously accrued income tax benefit is recognized in current income tax expense/benefit during the current period.

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.

Performance-Based Restricted Stock Units

Performance-based restricted stock units are issued by the Company on a discretionary basis, earned upon the achievement of certain targets and are payable in shares of the Company’s common stock upon vesting, typically over a three year period. The fair value is based on the closing market price of the Company’s common stock on the grant date and assumes that the target payout level will be achieved.

Stock Options

Corning’s stock option plans provide non-qualified and incentive stock options to purchase authorized but unissued common shares, or treasury shares, at the closing market price on the grant date and generally become exercisable in tranches from one year to five years from the grant date. The maximum term of non-qualified and incentive stock options is 10 years from the grant date. An award is considered vested when the employee’s retention of the award is no longer contingent on providing subsequent service (the “non-substantive vesting period approach”).

Cash and Cash Equivalents

Cash equivalents consist of highly liquid investments that are readily convertible into cash. Securities with contractual maturities of three months or less, when purchased, are considered cash equivalents. The carrying amount of these securities approximates fair value because of the short-term maturity of these instruments.

The following table presents supplemental disclosures of cash flow information (in millions):

			Year ended December 31,
			2024						2023						2022
Non-cash transactions:
Accruals for capital expenditures			$	149					$	217					$	414
Cash paid for interest and income taxes:
Interest (1)			$	310					$	274					$	275
Income taxes, net of refunds received			$	263					$	213					$	426

(1)Includes approximately $31 million, $40 million and $48 million of interest costs that were capitalized as part of property, plant and equipment during the years ended December 31, 2024, 2023 and 2022, respectively.

1. Summary of Significant Accounting Policies (Continued)

Trade Accounts Receivable, net of Doubtful Accounts

The allowance for doubtful accounts is based on the best estimate of the amount of probable lifetime credit losses in existing accounts receivable. The Company determines the allowance based on historical write-off experience and expected future default rate by industry. In addition, in circumstances where the Company is made aware of a specific customer’s inability to meet its financial obligations, a specific allowance is established. The Company does not have any significant off balance sheet credit exposure related to its customers.

Inventories

Inventories are stated at the lower of cost or net realizable value using the first-in, first-out method.

Property, Plant and Equipment, Net of Accumulated Depreciation

Land, buildings and equipment, including precious metals, are recorded at cost. Depreciation is based on the estimated useful life of the respective assets using the straight-line method. The estimated useful lives generally range from 10 to 40 years for buildings and improvements and 2 to 20 years for equipment, excluding precious metals as discussed below. Interest on borrowings is capitalized during the active construction period of major capital projects, added to the cost of the underlying assets and amortized over the useful life of the assets.

Included in the subcategory of equipment are the following types of assets (excluding precious metals):

Asset type			Range of useful life (in years)
Computer hardware and software			3 to 7
Manufacturing equipment			2 to 15
Furniture and fixtures			5 to 10
Transportation equipment			3 to 20

Manufacturing equipment includes certain components of production equipment that are constructed of precious metals. These assets are not depreciated because they have very low physical losses and are repeatedly reclaimed and reused in the Company’s manufacturing processes over a very long useful life. The physical loss of precious metals in the manufacturing and reclamation process is treated as depletion and these losses are accounted for as a period expense based on actual units lost. Precious metals are integral to many glass production processes and are only acquired to support operations. These metals are not held for trading or other purposes.

Leases

Corning leases certain buildings and real estate, vehicles and equipment from third parties, which are classified as operating or finance leases. Right-of-use assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent its obligation to make lease payments arising from the lease. Right-of-use assets and the corresponding lease liabilities are recognized at the commencement date based on the present value of lease payments for all leases with terms longer than twelve months. To determine the present value of lease payments, the Company uses its incremental borrowing rate based on information available on the lease commencement date or the implicit rate if it is readily determinable. The Company has elected to combine lease and non-lease components of a contract for its leases.

Renewal and termination options are included in the calculation of the right-of-use assets and lease liabilities when considered to be reasonably certain to be exercised.

Lease expense is recognized on a straight-line basis over the lease term for operating leases. Interest expense and amortization of the right-of-use assets relating to finance leases are calculated and recognized using the effective interest and straight-line methods, respectively.

Corning does not have any significant agreements as a lessor.

1. Summary of Significant Accounting Policies (Continued)

Impairment of Long-Lived Assets

The recoverability of long-lived assets, such as property, plant and equipment and intangible assets, is reviewed when events or changes in circumstances occur that indicate the carrying value of the asset or asset group may not be recoverable. The Company is required to assess the recoverability of the carrying value of long-lived assets when an indicator of impairment has been identified. The Company performs this review each quarter and exercises judgment in assessing whether impairment indicators are present. When impairment indicators are present, the estimated undiscounted future cash flows, including the eventual disposition of the asset group at market value, is compared to the assets’ carrying value to determine if the asset group is recoverable. For an asset group that fails the test of recoverability, the estimated fair value of long-lived assets is determined using an income approach that starts with the forecast of all the expected future net cash flows, including the eventual disposition at market value of long-lived assets, and considers the fair market value of all precious metals, if applicable. The recoverability of the carrying value of long-lived assets is assessed at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities. If there is an impairment, a loss is recorded to reflect the difference between the assets’ fair value and carrying value.

Goodwill

Goodwill reflects the purchase price of a business acquisition in excess of the fair values assigned to identifiable assets acquired and liabilities assumed. The Company’s goodwill relates, and is assigned directly, to one of our reporting units.

Goodwill is tested for impairment at the reporting unit level, annually, or more frequently if events or changes in circumstances indicate that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, by performing a qualitative assessment before performing a quantitative assessment. If the Company determines, based on the qualitative factors considered, that it is more likely than not that the fair value of a reporting unit is greater than its carrying amount, the Company will not need to proceed to the quantitative goodwill impairment process, except that the Company performs a detailed quantitative assessment at least every three years. The Company’s qualitative assessment is performed by assessing various factors including, but not limited to, expectations for the long-term growth of the business, forecasted future cash flows, changes in macroeconomic conditions, industry and market considerations, cost factors, overall financial performance, other relevant entity-specific events, or a sustained decrease in share price.

If a quantitative impairment analysis is required to estimate the fair value of any of our reporting units, then the Company will use an income approach using a discounted cash flow model. The estimates and key assumptions and inputs used in the model include management’s internal projections of future cash flows, the weighted-average cost of capital and the long-term growth rate. The fair value measurement is classified as Level 3 within the fair value hierarchy due to the unobservable inputs used. Estimates are based upon historical experience, current knowledge from commercial relationships and available external information about future trends. If the fair value were less than the carrying value, the difference between the implied fair value and the carrying amount would be recorded as an impairment to goodwill. Changes in these estimates and key assumptions could affect the determination of fair value. The most recent quantitative impairment test was performed as of October 1, 2023 and the implied fair value for each of the Company's reporting units significantly exceeded the reporting unit's carrying amount.

Government Assistance

The Company receives government assistance, typically in the form of cash incentives primarily for capital expansion projects and tax credits that are refundable or transferable (collectively, “incentives”). Incentives are recognized when it is probable that the Company will comply with any contractual conditions and that the incentives will be received. Incentives are classified as an asset when they are recognized but have not been received and as a liability when they are received but have not been recognized. Incentives relating to the purchase of property, plant and equipment are deducted from the cost of the relevant asset. Incentives relating to project costs or other expenses are recognized in the statements of income as an offset to the related expense.

During the year ended December 31, 2024, incentives recognized in net income were $126 million and incentives recognized as a reduction of property, plant and equipment were not material. As of December 31, 2024, the Company had $105 million classified within other current assets and $113 million classified within other liabilities in the consolidated balance sheet. Other amounts on the balance sheet as of December 31, 2024 were not material.

During the year ended December 31, 2023, incentives recognized in net income were $186 million and incentives recognized as a reduction of property, plant and equipment were not material. As of December 31, 2023, the Company had $98 million classified within other assets and $61 million classified within other liabilities in the consolidated balance sheet. Other amounts on the balance sheet as of December 31, 2023 were not material.

1. Summary of Significant Accounting Policies (Continued)

Environmental Liabilities

The Company accrues for its environmental investigation, remediation, operating and maintenance costs when it is probable that a liability has been incurred and the amount can be reasonably estimated. For environmental matters, the most likely cost to be incurred is accrued based on an evaluation of currently available facts with respect to each individual site, current laws and regulations and prior remediation experience. For sites with multiple potentially responsible parties, the Company considers its likely proportionate share of the anticipated remediation costs and the ability of the other parties to fulfill obligations in establishing a provision for those costs. Where no amount within a range of estimates is more likely to occur than another, the minimum undiscounted amount is accrued. When future liabilities are determined to be reimbursable by insurance coverage, an accrual is recorded for the potential liability and a receivable is recorded related to the insurance reimbursement when reimbursement is virtually certain.

The uncertain nature inherent in such remediation and the possibility that initial estimates may not reflect the outcome could result in additional costs being recognized by the Company in future periods.

Equity Method Investments

Investments in partially-owned affiliates are accounted for using the equity method of accounting, or at fair value when the fair value option is elected, if the investment gives the Company the ability to exercise significant influence, but not control, over an affiliated company. Under the equity method of accounting, the Company records its initial investment at cost and subsequently adjusts the carrying amount to reflect its share of the investee’s earnings or losses. The equity earnings or losses from associated companies are recorded within other (expense) income, net in the consolidated statements of income. Equity method investments are reviewed for impairment on a periodic basis or if an event occurs or circumstances change that indicate the carrying amount may be impaired. If it is probable that the carrying amount of the investment cannot be recovered, the impairment is considered other-than-temporary and recorded in earnings, and the equity investment balance is reduced to its fair value.

As of December 31, 2024 and 2023, Corning had investments in affiliated companies accounted for by the equity method totaling $290 million and $296 million, respectively. During the years ended December 31, 2024, 2023 and 2022 Corning had sales to affiliated companies of $224 million, $211 million and $228 million, respectively.

All equity investments that do not result in consolidation and are not accounted for under the equity method are measured at fair value with changes therein reflected in net income. The Company utilizes the measurement alternative for equity investments that do not have readily determinable fair values and measures these investments at cost less impairment, plus or minus observable price changes in orderly transactions. These investments were not material as of December 31, 2024 and 2023.

Employee Retirement Plans

Corning offers employee retirement plans consisting of defined benefit pension plans covering certain domestic and international employees and postretirement plans that provide health care and life insurance benefits for eligible retirees and dependents. The costs and obligations related to these benefits reflect the Company’s assumptions related to general economic conditions, particularly interest rates, expected return on plan assets, rate of compensation increase for employees and health care cost trend rates. The cost of providing plan benefits depends on demographic assumptions including retirements, mortality, turnover and plan participation.

Costs for defined benefit pension plans consist of two elements: (1) on-going costs recognized quarterly, which are comprised of service and interest costs, expected return on plan assets and amortization of prior service costs; and (2) mark-to-market gains and losses outside of the corridor, where the corridor is equal to 10% of the greater of the benefit obligation or the market-related value of plan assets at the beginning of the year, which are recognized annually in the fourth quarter of each year. These gains and losses result from changes in actuarial assumptions and the differences between actual and expected return on plan assets. Any interim remeasurement, triggered by a curtailment, settlement or significant plan change, as well as any true-up to the annual valuation, is recognized as a mark-to-market adjustment in the quarter in which such event occurs. Special termination benefit costs are recorded in the quarter in which the event occurs.

Costs for postretirement benefit plans consist of on-going costs recognized quarterly, and are comprised of service and interest costs, amortization of prior service costs and amortization of actuarial gains and losses. Actuarial gains and losses resulting from changes in actuarial assumptions are recognized as a component of accumulated other comprehensive loss in shareholders’ equity on an annual basis and amortized into operating results over the average remaining service period of employees expected to receive benefits under the plans, to the extent such gains and losses are outside the corridor.

1. Summary of Significant Accounting Policies (Continued)

Income Taxes

The Company accounts for income taxes using the asset and liability method. Under this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to operating loss and tax credit carryforwards and for differences between the carrying amounts of existing assets and liabilities and their respective tax bases. Valuation allowances are established when management is unable to conclude that it is more likely than not that some portion, or all, of the deferred tax asset will ultimately be realized based upon the available evidence, including consideration of tax planning strategies.

The effective tax rate reflects the assessment of the ultimate outcome of tax audits. In evaluating the tax benefits associated with the Company’s various tax filing positions, a tax benefit for uncertain tax positions is recorded using the highest cumulative tax benefit that is more likely than not to be realized. Adjustments are made to the asset or liability for unrecognized tax benefits in the period in which the return containing the tax position is filed or when new information becomes available. The liability for unrecognized tax benefits, including accrued penalties and interest, is included in other accrued liabilities and other long-term liabilities on the consolidated balance sheets and within income tax expense in the consolidated statements of income.

Discrete events such as audit settlements or changes in tax laws are recognized in the period in which they occur.

Generally, Corning will indefinitely reinvest the foreign earnings of: (1) any subsidiary that lacks sufficient local statutory earnings from which to make a distribution or otherwise lacks the ability to repatriate its earnings, (2) any subsidiary where Corning’s intention is to reinvest those earnings in operations, (3) legal entities for which Corning holds a non-controlling interest, (4) any subsidiary with an accumulated deficit in earnings and profits, or (5) any subsidiary where a future distribution would trigger a significant net cost.

Fair Value Measurements

Major categories of financial assets and liabilities, including short-term investments, other assets and derivatives, are measured at fair value on a recurring basis. Certain assets and liabilities are measured at fair value on a nonrecurring basis when impaired, which include long-lived assets, goodwill, equity method investments, other investments and asset retirement obligations. Non-financial assets and liabilities or financial assets and liabilities other than derivatives measured at fair value either on a recurring or nonrecurring basis were not significant as of December 31, 2024 and 2023.

Fair value is the price that would be received from selling an asset, or paid to transfer a liability, in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required to be recorded at fair value, the principal, or most advantageous, market in which Corning would transact is analyzed. Assumptions that market participants would use when pricing the asset or liability, such as inherent risk, transfer restrictions and risk of non-performance, are considered.

A three-level valuation hierarchy, based upon the observable and unobservable inputs, is used for fair value measurements. Observable inputs are based on market data or independent sources while unobservable inputs are based on the Company’s own market assumptions. Once inputs have been characterized, the inputs are prioritized into one of three broad levels used to measure fair value: Level 1, quoted market prices in active markets for identical instruments, Level 2, significant other observable inputs and Level 3, significant unobservable inputs.

Derivative Instruments

The Company enters into a variety of foreign exchange forward contracts and foreign exchange option contracts to manage the exposure to fluctuations in foreign exchange rates. Financial exposure is managed in accordance with corporate policies and procedures. The Company also utilizes derivatives that are bifurcated from its precious metals lease contracts to manage the exposure of its separate accounting pool of leased precious metals to changes in market prices.

The most significant foreign currency exposures relate to the Japanese yen, South Korean won, New Taiwan dollar, Chinese yuan, euro and the Mexican peso. Corning seeks to mitigate the impact of exchange rate movements in the consolidated statements of income by using over-the-counter (“OTC”) derivative instruments including foreign exchange forward and option contracts. In general, the expirations of these contracts coincide with the timing of the underlying foreign currency commitments and transactions.

Corning is exposed to potential losses in the event of non-performance by counterparties to these derivative contracts. However, this risk is minimized by maintaining a portfolio with a diverse group of highly-rated major financial institutions. The Company does not expect to record any losses due to counterparty default. Neither the Company nor its counterparties are required to post collateral for these financial instruments.

1. Summary of Significant Accounting Policies (Continued)

All derivatives are recorded at fair value on the consolidated balance sheets. The fair values of these derivative contracts are recorded as either assets (gain position) or liabilities (loss position) on the consolidated balance sheets. Changes in the fair value of derivatives designated as cash flow hedges are not recognized in current operating results but are recorded in accumulated other comprehensive loss. Amounts related to cash flow hedges are reclassified from accumulated other comprehensive loss when the underlying hedged item impacts earnings. This reclassification is recorded within the same line item of the consolidated statements of income where the underlying hedged transaction was recorded, typically sales, cost of sales or other (expense) income, net. Changes in the fair value, excluding the time value component, of derivatives designated as fair value hedges are recognized in current operating results within other (expense) income, net in the consolidated statements of income. Changes in the fair value of derivatives not designated as hedging instruments are recognized within translated earnings contract gain, net and other (expense) income, net in the consolidated statements of income.

Designated Hedges

Corning uses OTC foreign exchange forward contracts designated as cash flow hedges, with maturities through 2027, to reduce the risk that movements in exchange rates will adversely affect the net cash flows resulting from the sale of products to customers and purchases from suppliers. Corning defers gains and losses related to the cash flow hedges into accumulated other comprehensive loss on the consolidated balance sheets until the hedged item impacts earnings. As of December 31, 2024, the amount expected to be reclassified into earnings within the next 12 months is a pre-tax loss of $35 million.

Corning has entered into leases of precious metals, with maturities through 2025. To offset the risk of changes in the fair value of the Company’s separate accounting pool of leased precious metals due to adverse changes in the respective market prices, Corning designated the bifurcated embedded derivatives included in these leases as fair value hedges. The gain or loss on the derivatives, as well as the offsetting loss or gain on the hedged item attributable to the hedged risk, are recognized in current earnings. The amounts representing the time value component of the derivatives are excluded from the assessment of effectiveness and amortized in earnings. The impact of the excluded component is not material.

Corning uses regression analysis or the critical term match method to assess initial hedge effectiveness. Following the inception of a hedging relationship, hedge effectiveness is assessed quarterly based on qualitative factors.

Net Investment Hedges

From time to time, Corning utilizes derivative and non-derivative net investment hedges to offset risk against investments in foreign subsidiaries with non-USD functional currencies. Changes in the value of these hedging instruments due to foreign currency gains or losses are deferred in other comprehensive loss on the consolidated statements of comprehensive income, within the foreign currency translation adjustments and other line, and will remain in accumulated other comprehensive loss until the hedged investment is sold or substantially liquidated. We evaluate the effectiveness of the net investment hedges each quarter using the critical terms match method.

Undesignated Hedges

Corning uses OTC foreign exchange forward and option contracts not designated as hedging instruments for accounting purposes to offset foreign currency risks. The undesignated hedges limit exposure to foreign functional currency fluctuations related to certain subsidiaries’ monetary assets, monetary liabilities and net earnings in foreign currencies.

A significant portion of the Company’s non-U.S. revenue and expenses are denominated in Japanese yen, South Korean won, New Taiwan dollar, Chinese yuan, euro and Mexican peso. When this revenue and these expenses are translated back to U.S. dollars, the Company is exposed to foreign exchange rate movements. To protect translated earnings against movements in these currencies, the Company has entered into a series of average rate forwards and option contracts. Most of these contracts hedge a significant portion of the Company’s exposure to the Chinese yuan, euro, Japanese yen and South Korean won. The Company has contracts through 2026 for the Chinese yuan and 2027 for the Japanese yen, euro and South Korean won.

1. Summary of Significant Accounting Policies (Continued)

New Accounting Standards

In December 2023, the FASB issued Accounting Standards Update 2023-09 Income Taxes (Topic 740): Improvements to Income Tax Disclosures (“ASU 2023-09”). ASU 2023-09 enhances the transparency and decision usefulness of income tax disclosures. ASU 2023-09 is effective for annual periods beginning after December 15, 2024. Early adoption is permitted and application may be applied prospectively or retrospectively. We are currently evaluating the potential effect that ASU 2023-09 will have on our consolidated financial statements.

In November 2024, the FASB issued Accounting Standards Update 2024-03 Income Statement - Reporting Comprehensive Income (Topic 220): Disaggregation of Income Statement Expenses (“ASU 2024-03”). ASU 2024-03 requires additional disclosure of the nature of expenses included in the income statement. ASU 2024-03 is effective for annual periods beginning after December 15, 2026 and interim periods within annual reporting periods beginning after December 15, 2027. Early adoption is permitted and application may be applied prospectively or retrospectively. We are currently evaluating the potential effect that ASU 2024-03 will have on our consolidated financial statements.

2. Restructuring, Impairment and Other Charges and Credits

Corning periodically assesses the operating efficiency and cost structure of the Company’s asset base and global workforce and takes appropriate actions to align corporate resources with the business environment.

The following table presents restructuring, impairment and other charges and credits (in millions):

			Year ended December 31,
			2024						2023						2022
Severance (1)			$	45					$	187					$	70
Capacity optimization			128						176						219
Other charges and credits (2)			234						108						125
Total restructuring, impairment and other charges and credits (3)			$	407					$	471					$	414

(1)Severance charges in the years ended December 31, 2024 and 2023 include $6 million and $20 million, respectively, in curtailment and special termination benefit charges.

(2)Other charges and credits primarily include the recognition of non-cash cumulative foreign currency translation losses related to the substantial liquidation and disposition of foreign entities, disposal costs and inventory write-downs.

(3)Amounts impacting gross margin in the consolidated statements of income were $211 million, $283 million and $337 million for the years ended December 31, 2024, 2023 and 2022, respectively.

During the year ended December 31, 2024, Corning recorded $45 million in severance related charges and $128 million in non-cash asset write-offs, primarily associated with the closure of a display technologies manufacturing plant. In addition, the Company recorded $234 million in other charges and credits primarily related to $131 million of non-cash cumulative foreign currency translation losses required to be recognized upon the substantial liquidation or disposition of foreign entities, which was recorded in other (expense) income, net in the consolidated statements of income, and $49 million of non-cash charges in one of our Emerging Growth Businesses relating to a customer that recently entered into a multi-jurisdictional restructuring effort including insolvency filings in certain countries. These charges primarily relate to the full write-down of upfront payments made to the customer, which were determined to be nonrecoverable, and recorded as a charge to net sales in the consolidated statements of income. Remaining activity relates to disposal costs and inventory write-offs associated with the exit of certain facilities and product lines. As of December 31, 2024, the severance accrual of $34 million was reflected within other accrued liabilities on the consolidated balance sheet and is expected to be substantially paid within the next twelve months.

During the year ended December 31, 2023, Corning recorded $471 million in severance, asset write-offs and other related charges. Capacity optimization charges include asset write-offs associated with the exit of certain facilities, product lines and other exit activities primarily within Optical Communications, Specialty Materials and Life Sciences. Severance charges were recorded across all segments and as of December 31, 2023, the severance accrual of $118 million was reflected within other accrued liabilities on the consolidated balance sheet.

During the year ended December 31, 2022, Corning recorded $414 million in severance, accelerated depreciation, asset write-offs and other related charges. Capacity optimization charges include accelerated depreciation and asset write-offs associated with the exit of certain facilities, product lines and other exit activities primarily within Display Technologies, Specialty Materials and an emerging growth business.

3. Revenue

Disaggregated Revenue

The following table shows revenue by major product category, similar to the Company’s reportable segment disclosure. Within each product category, contract terms, conditions and economic factors affecting the nature, amount, timing and uncertainty around revenue recognition and cash flows are substantially similar. The commercial markets and selling channels are also similar. Except for an insignificant number of telecommunications products, product category revenues are recognized at the point in time when control transfers to the customer.

The following table presents revenues by product category (in millions):

			Year ended December 31,
			2024						2023						2022
Telecommunication products			$	4,657					$	4,012					$	5,023
Display products			2,727						2,694						2,829
Specialty glass products			2,000						1,854						1,996
Environmental substrate and filter products			1,565						1,660						1,492
Life science products			933						922						1,187
Polycrystalline silicon products			865						1,014						1,191
All other products			371						432						471
Total Revenue			$	13,118					$	12,588					$	14,189

Customer Deposits

As of December 31, 2024 and 2023, Corning had customer deposits of approximately $1.1 billion and $1.2 billion, respectively. Most of these customer deposits were non-refundable and allowed customers to secure rights to products produced by Corning under long-term supply agreements, generally over a period of up to 10 years. As products are delivered to customers, Corning will recognize revenue and reduce the amount of the customer deposit liability.

For the years ended December 31, 2024, 2023 and 2022, customer deposits recognized were $195 million, $103 million and $198 million, respectively.

Refer to Note 9 (Other Assets and Other Liabilities) for additional information.

Deferred Revenue

As of December 31, 2024 and 2023, Corning had deferred revenue of approximately $833 million and $860 million, respectively. Deferred revenue was primarily related to the performance obligations of non-refundable consideration previously received by HSG from its customers under long term supply agreements.

Deferred revenue is tracked on a per-customer contract-unit basis. As customers take delivery of the committed volumes under the terms of the contract, a per-unit amount of deferred revenue is recognized when control of the promised goods is transferred to the customer based upon the units delivered compared to the remaining contractual units. During the years ended December 31, 2024, 2023 and 2022, the amount of deferred revenue recognized in the consolidated statements of income was not material.

Refer to Note 9 (Other Assets and Other Liabilities) for additional information.

4. Inventories

Inventories consisted of the following (in millions):

			December 31,
			2024						2023
Finished goods			$	1,323					$	1,242
Work in process			547						551
Raw materials and accessories			413						445
Supplies and packing materials			441						428
Inventories			$	2,724					$	2,666

5. Leases

The following table presents the components of lease cost (in millions) (1):

			Year ended December 31,
			2024						2023						2022
Operating lease cost			$	170					$	171					$	147
Variable lease cost			55						57						51
Short-term lease cost			3						2						2
Total lease cost			$	228					$	230					$	200

(1)Finance lease costs were not material for the years ended December 31, 2024, 2023 and 2022.

The following table presents the components of cash paid for amounts included in the measurement of lease liabilities (in millions) (1):

			December 31,
			2024						2023						2022
Operating cash outflows from operating leases			$	139					$	153					$	116

(1)Cash payments for operating leases have been classified as operating activities on the consolidated statements of cash flows. Principal and interest payments for finance leases have been classified as financing activities and operating activities, respectively, on the consolidated statements of cash flows, and were not material for the years ended December 31, 2024, 2023 and 2022.

The following table presents supplemental consolidated balance sheet information (in millions, except lease term and discount rate) (1):

									December 31,
			Location of lease balances						2024						2023
Operating lease right-of-use assets			Other assets						$	796					$	883
Operating lease liabilities - current			Other accrued liabilities						$	95					$	112
Operating lease liabilities - noncurrent			Other liabilities						$	785					$	846
Weighted-average remaining lease term (in years)									13.2						13.6
Weighted-average discount rate									4.5		%				4.4		%

(1)Finance leases were not material as of December 31, 2024 and 2023.

5. Leases (Continued)

As of December 31, 2024, maturities of operating lease liabilities are as follows (in millions) (1):

			December 31, 2024
2025			$	129
2026			$	109
2027			$	92
2028			$	82
2029			$	81
After 2029			$	697
Total operating payments			$	1,190
Less: imputed discount			$	310
Present value of lease payments			$	880

(1)Finance leases were not material as of December 31, 2024.

As of December 31, 2024, Corning had additional operating leases, primarily for new production equipment, that have not yet commenced or been recorded, of approximately $138 million on an undiscounted basis. These operating leases will commence in 2025 with lease terms of four years.

On March 12, 2024, Corning entered into a synthetic lease (“Facility Lease”) for a solar manufacturing facility in Hemlock, Michigan (the “Facility”), for which the Company is the construction agent on behalf of the lessor, with an estimated construction cost of approximately $835 million.

The Facility Lease will commence upon completion of construction of the Facility, which is expected to be in the later part of 2025, and has a lease term of five years with options to renew the lease or purchase the facility. The Facility Lease is expected to be classified as a finance lease and the amount of right-of-use asset and lease liability will be determined and recorded upon lease commencement. The estimated undiscounted lease payments, inclusive of a residual value guarantee, are approximately $1.1 billion, of which $24 million, $92 million, $88 million, $85 million and $82 million is to be paid in 2025, 2026, 2027, 2028 and 2029, respectively, and $685 million is to be paid thereafter.

In conjunction with the Facility Lease, Corning entered into an equipment lease (“Equipment Lease”) on June 17, 2024, with an estimated purchase and installation cost of $365 million, for the equipment to be installed and operated within the Facility. The Company is the procurement and installation agent on behalf of the lessor.

The Equipment Lease will commence upon completion of the equipment installation, which is expected to be in the later part of 2025, and has a lease term of five years with obligations to purchase the equipment at lease maturity. The Equipment Lease is expected to be classified as a finance lease and the amount of right-of-use asset and lease liability will be determined and recorded upon lease commencement. The estimated undiscounted lease payments are approximately $434 million, of which $24 million, $95 million, $90 million, $85 million and $81 million is to be paid in 2025, 2026, 2027, 2028 and 2029, respectively, and $59 million is to be paid thereafter.

6. Income Taxes

The following table presents the components of income before income taxes (in millions):

			Year ended December 31,
			2024						2023						2022
U.S. companies			$	303					$	105					$	1,157
Non-U.S. companies			510						711						640
Income before income taxes			$	813					$	816					$	1,797

The following table presents the current and deferred amounts of the provision for income taxes, based on the location of the taxing authority (in millions):

			Year ended December 31,
			2024						2023						2022
Current:
Federal			$	(77)					$	(82)					$	(191)
State and municipal			(6)						(13)						(16)
Foreign			(171)						(148)						(250)
Deferred:
Federal			63						76						52
State and municipal			6						7						8
Foreign			(36)						(8)						(14)
Provision for income taxes			$	(221)					$	(168)					$	(411)

The following table presents the reconciliation of the statutory U.S. federal income tax rate to the effective tax rate:

			Year ended December 31,
			2024						2023						2022
Statutory U.S. federal income tax rate			21.0		%				21.0		%				21.0		%
State income tax provision (benefit), net of federal effect			0.2						(0.3)						0.7
Non-deductible Items			9.1						5.2						0.5
Release of cumulative translation losses			6.0
Audit settlements & change in reserve			4.8						4.8						3.7
Differential arising from foreign earnings (1)			1.6						0.3						2.2
Remeasurement of deferred tax assets and liabilities			(0.8)						(0.3)						(0.1)
Stock compensation			(0.9)						(2.1)						(0.8)
Valuation allowance			(2.3)						5.7						2.1
Foreign derived intangible income			(2.7)						(2.3)						(2.7)
Tax credits			(3.9)						(6.9)						(3.3)
Non-Taxable Items			(5.6)						(4.0)
Intercompany loan adjustment															0.6
Other items, net			0.7						(0.5)						(1.0)
Effective tax rate			27.2		%				20.6		%				22.9		%

(1)Includes impact of intercompany asset sales.

6. Income Taxes (Continued)

During the year ended December 31, 2024, the Company distributed $600 million from foreign subsidiaries to their respective U.S. parent companies. As of December 31, 2024, Corning has approximately $1.6 billion of indefinitely reinvested foreign earnings. It remains impracticable to calculate the tax cost of repatriating unremitted earnings which are considered indefinitely reinvested.

The following table presents the tax effects of temporary differences and carryforwards that gave rise to significant portions of the deferred tax assets and liabilities (in millions):

			December 31,
			2024						2023
Loss and tax credit carryforwards (1)			$	218					$	275
Other assets			246						245
Research and development capitalization			428						362
Asset impairments and restructuring reserves			32						43
Postretirement medical and life benefits			90						103
Other accrued liabilities			375						319
Other employee benefits			291						344
Gross deferred tax assets			1,680						1,691
Valuation allowances (1)			(173)						(207)
Total deferred tax assets			1,507						1,484
Intangible and other assets			(110)						(117)
Fixed assets			(212)						(223)
Finance leases			(192)						(209)
Total deferred tax liabilities			(514)						(549)
Net deferred tax assets			$	993					$	935

(1)The Company also has Luxembourg deferred tax asset net operating losses of up to $2.9 billion that have a remote possibility of realization and therefore, are not recognized in the deferred tax table above.

Net deferred tax assets on the consolidated balance sheets consisted of the following (in millions):

			December 31,
			2024						2023
Deferred tax assets			$	1,130					$	1,153
Other liabilities			(137)						(218)
Net deferred tax assets			$	993					$	935

The following table presents details of the deferred tax assets for loss and tax credit carryforwards (in millions):

									Expiration
			Total						2025-2029						2030-2034						2035-2044						Indefinite
Net operating losses			$	213					$	50					$	16					$	25					$	122
Tax credits			5						1						4
Balance as of December 31, 2024			$	218					$	51					$	20					$	25					$	122

The following table presents the changes in the deferred tax valuation allowance (in millions):

			2024						2023						2022
Balance as of January 1			$	207					$	166					$	138
Additions			26						66						81
Reductions			(60)						(25)						(53)
Balance as of December 31			$	173					$	207					$	166

6. Income Taxes (Continued)

The following table presents the reconciliation of the beginning and ending amount of unrecognized tax benefits (in millions):

			2024						2023						2022
Balance as of January 1			$	373					$	206					$	178
Additions based on tax positions related to the current year			41						54						10
Additions for tax positions of prior years			6						127						24
Reductions for tax positions of prior years			(6)						(3)						(5)
Settlements and lapse of statute of limitations			(3)						(11)						(1)
Balance as of December 31			$	411					$	373					$	206

During 2020, the Internal Revenue Service (“IRS”) opened an audit for tax years 2015-2018. In addition, during 2023, the IRS opened an audit for tax years 2019-2020. The Company does not expect additional material exposure for the tax years under audit. However, if upon conclusion of these matters, the ultimate determination of taxes owed is for an amount materially different than the current position, the overall tax expense and effective tax rate could be materially impacted in the period of adjustment.

The additions for tax positions of prior years were primarily due to tax audits, development of tax court cases and tax law changes in various jurisdictions.

As of December 31, 2024, unrecognized tax benefits that would impact the Company’s effective tax rate if recognized were $203 million.

Interest and penalties associated with uncertain tax positions are recognized as part of tax expense. For the years ended December 31, 2024, 2023 and 2022, the amount recognized was not material.

It is possible that the amount of unrecognized tax benefits will change due to one or more of the following events during the next twelve months: audit activity, tax payments, or final decisions in matters that are the subject of controversy in various jurisdictions. The Company believes that adequate tax reserves are provided for these matters. As of December 31, 2024, the Company is not expecting any significant movements in the uncertain tax benefits in the next twelve months.

Corning Incorporated, as the common parent company, and all 80%-or-more-owned of its U.S. subsidiaries join in the filing of consolidated U.S. federal income tax returns. The statute of limitations is closed for all periods ending through December 31, 2013. All returns for periods ended through December 31, 2014, have been audited by and settled with the IRS.

Corning Incorporated and its U.S. subsidiaries file income tax returns on a combined, unitary or stand-alone basis in multiple state and local jurisdictions, which generally have statutes of limitations ranging from 3 to 5 years. Various state income tax returns are currently in the process of examination or administrative appeal. The Company does not expect any material proposed adjustments from any of these audits.

Corning’s foreign subsidiaries file income tax returns in the countries where their operations are located. Generally, these countries have statutes of limitations ranging from 3 to 10 years. The statute of limitations is closed through the following years in these major jurisdictions: China (2015), Japan (2017), Taiwan (2019) and South Korea (2015).

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 2023, $99 million was no longer under dispute and was refunded to the Company. The non-current receivable balance was $253 million and $261 million as of December 31, 2024 and December 31, 2023, respectively, for the amount on deposit with the South Korean government. Corning believes that it is more likely than not that the Company will prevail in the appeals process relating to these matters.

7. Property, Plant and Equipment, Net of Accumulated Depreciation

Property, plant and equipment, net of accumulated depreciation consisted of the following (in millions):

			December 31,
			2024						2023
Land			$	375					$	412
Buildings			5,650						5,931
Equipment (1)			20,007						20,896
Construction in progress			1,819						1,944
Subtotal			27,851						29,183
Accumulated depreciation			(14,492)						(14,553)
Property, plant and equipment, net of accumulated depreciation (2)			$	13,359					$	14,630

(1)Manufacturing equipment includes certain components of production equipment that are constructed of precious metals. As of December 31, 2024 and 2023, the carrying value of precious metals was $2.8 billion and $3.1 billion, respectively, and significantly lower than the fair market value. Depletion expense for precious metals for the years ended December 31, 2024, 2023 and 2022 was $29 million, $35 million and $27 million, respectively.

(2)Approximately $31 million, $40 million and $48 million of interest costs were capitalized as part of property, plant and equipment during the years ended December 31, 2024, 2023 and 2022, respectively.

8. Goodwill and Other Intangible Assets

The following table presents the changes in the carrying amount of goodwill (in millions):

			Optical Communications						Display Technologies						Specialty Materials						Life Sciences						Hemlock and Emerging Growth Businesses						Total
Balance as of December 31, 2022			$	905					$	121					$	151					$	606					$	611					$	2,394
Foreign currency translation adjustment and other			(1)						(2)												1						(12)						(14)
Balance as of December 31, 2023			$	904					$	119					$	151					$	607					$	599					$	2,380
Acquired goodwill									11																								11
Foreign currency translation adjustment and other			(14)						(9)						(14)						(1)						10						(28)
Balance as of December 31, 2024			$	890					$	121					$	137					$	606					$	609					$	2,363

As of December 31, 2024 and 2023, Corning’s gross goodwill balance was $8.9 billion and accumulated impairment losses were $6.5 billion. Accumulated impairment losses were generated primarily through goodwill impairments related to the Optical Communications segment.

Other Intangible Assets, Net

Other intangible assets, net consisted of the following (in millions):

			December 31,
			2024																		2023
			Gross						Accumulated amortization						Net						Gross						Accumulated amortization						Net
Amortized intangible assets:
Patents, trademarks & trade names			$	407					$	266					$	141					$	493					$	318					$	175
Customer lists and other (1)			1,391						780						611						1,464						734						730
Other intangible assets, net			$	1,798					$	1,046					$	752					$	1,957					$	1,052					$	905

(1)Other consists of intangible assets related to developed technologies and intellectual know-how.

8. Goodwill and Other Intangible Assets (Continued)

Corning’s amortized intangible assets are primarily related to Optical Communications, Life Sciences and certain businesses within Hemlock and Emerging Growth Businesses. The net carrying amount of intangible assets decreased during the year, primarily driven by amortization of $121 million.

Annual amortization expense is expected to be approximately $118 million, $98 million, $95 million, $88 million and $69 million for years 2025 through 2029, respectively.

9. Other Assets and Other Liabilities

Other assets consisted of the following (in millions):

			December 31,
			2024						2023
Current assets:
Derivative instruments (Note 13)			$	619					$	501
Other current assets			828						694
Other current assets			$	1,447					$	1,195
Non-current assets:
Derivative instruments (Note 13)			$	360					$	130
South Korean tax deposits (Note 6)			253						261
Operating leases (Note 5)			796						883
Investments			394						414
Other non-current assets			336						532
Other assets			$	2,139					$	2,220

Other liabilities consisted of the following (in millions):

			December 31,
			2024						2023
Current liabilities:
Wages and employee benefits			$	883					$	609
Income taxes (Note 6)			109						69
Derivative instruments (Note 13)			348						66
Deferred revenue (Note 3)			190						181
Customer deposits (Note 3)			127						148
Short-term operating leases (Note 5)			95						112
Other current liabilities			1,369						1,348
Other accrued liabilities			$	3,121					$	2,533
Non-current liabilities:
Defined benefit pension plan liabilities (Note 11)			$	529					$	721
Derivative instruments (Note 13)			273						31
Deferred revenue (Note 3)			643						679
Customer deposits (Note 3)			983						1,083
Deferred tax liabilities (Note 6)			137						218
Long-term operating leases (Note 5)			785						846
Other non-current liabilities			1,175						1,131
Other liabilities			$	4,525					$	4,709

10. Debt

Debt consisted of the following (in millions):

			December 31,
			2024						2023
Long-term debt
Debentures, 6.85%, due 2029			$	156					$	157
Debentures, 7.25%, due 2036			249						249
Debentures, 4.70%, due 2037			297						296
Debentures, 5.75%, due 2040			397						396
Debentures, 4.75%, due 2042			497						497
Debentures, 5.35%, due 2048			545						545
Debentures, 3.90%, due 2049			396						395
Debentures, 4.375%, due 2057			743						743
Debentures, 5.85%, due 2068			297						297
Debentures, 5.45%, due 2079			1,087						1,086
Yen-denominated debentures, 0.698%, due 2024									149
Yen-denominated debentures, 0.722%, due 2025			64						71
Yen-denominated debentures, 0.992%, due 2027			236						263
Yen-denominated debentures, 1.043%, due 2028			163						181
Yen-denominated debentures, 1.219%, due 2030			159						177
Yen-denominated debentures, 1.153%, due 2031			198						221
Yen-denominated debentures, 1.583%, due 2037			63						71
Yen-denominated debentures, 1.513%, due 2039			37						41
Euro-denominated notes, 3.875%, due 2026			311						330
Euro-denominated notes, 4.125%, due 2031			568						602
Financing Leases, average discount rate 4.5%, due through 2044			174						195
Other, average rate 3.61%, due through 2042			575						564
Total long-term debt, including current portion			7,211						7,526
Less current portion of long-term debt			326						320
Long-term debt			$	6,885					$	7,206

Based on borrowing rates currently available to us for loans with similar terms and maturities, the fair value of long-term debt was $6.4 billion and $7.0 billion as of December 31, 2024 and 2023, respectively, compared to recorded book values of $6.9 billion and $7.2 billion as of December 31, 2024 and 2023, respectively. The Company measures the fair value of its long-term debt using Level 2 inputs based primarily on current market yields for its existing debt traded in the secondary market.

Corning did not have outstanding commercial paper as of December 31, 2024 and 2023.

Corning’s existing revolving credit agreement provides a committed $1.5 billion unsecured multi-currency line of credit which is scheduled to mature in 2027. There were no outstanding amounts under this facility as of December 31, 2024 and 2023.

Corning is the obligor to Chinese yuan-denominated unsecured variable rate loan facilities, whose proceeds are used for capital investment and general corporate purposes. As of December 31, 2024 and 2023, amounts outstanding under these facilities totaled $314 million and $293 million, respectively, and these facilities had variable interest rates ranging from 2.8% to 3.9% and 3.2% to 4.1%, respectively, and maturities ranging from 2025 to 2032. As of December 31, 2024, Corning had 0.2 billion Chinese yuan of unused capacity, equivalent to approximately $31 million.

10. Debt (Continued)

The following table presents debt maturities by year as of December 31, 2024 (in millions) (1):

2025						2026						2027						2028						2029						Thereafter
$	326					$	383					$	290					$	193					$	197					$	5,910

(1)Excludes impact of bond discounts and deferred expenses and includes obligations relating to finance leases that have commenced. For the estimated undiscounted lease payments associated with leases entered into but not yet commenced, refer to Note 5 (Leases) for additional information.

In 2024, the Company entered into various cross currency swap contracts to economically lock in unrealized foreign exchange gains relating to a portion of the Company’s Japanese yen-denominated debt due in 2027 and 2028. Refer to Note 13 (Financial Instruments) for additional information.

Debt Issuances and Redemptions

During the year ended December 31, 2024, Corning repaid ¥21.0 billion (equivalent to $143 million) aggregate principal amount of its 0.698% debentures due 2024.

During the year ended December 31, 2023, Corning repurchased a total of ¥14.7 billion (equivalent to $100 million) of debt comprised of ¥9.8 billion aggregate principal amount of its 0.992% debentures due 2027 and ¥4.9 billion aggregate principal amount of its 1.043% debentures due 2028. The repurchase transactions resulted in an insignificant gain in the current period.

On May 15, 2023, the Company issued €300 million 3.875% Notes due 2026 (“2026 Notes”) and €550 million 4.125% Notes due 2031 (“2031 Notes”). The proceeds from the 2026 Notes and 2031 Notes were received in euros and converted to U.S. dollars on the date of issuance. The net proceeds received were approximately $918 million and will be used for general corporate purposes. As of December 31, 2024 and 2023, the U.S. dollar equivalent carrying value of the euro-denominated long-term debt was $879 million and $932 million, respectively.

The full amounts of the 2026 Notes and 2031 Notes have been designated as net investment hedges against our investments in certain European subsidiaries with euro functional currencies. Refer to Note 13 (Financial Instruments) for additional information.

11. Employee Retirement Plans

Defined Benefit Plans

Corning has defined benefit pension plans covering certain domestic and international employees. The Company may contribute, as necessary, an amount exceeding the minimum requirements to achieve the Company’s long-term funding targets. During the year ended December 31, 2024, no voluntary cash contributions were made to domestic plans and cash contributions of $9 million were made to international pension plans. During the year ended December 31, 2023, no voluntary cash contributions were made to domestic plans and cash contributions of $25 million were made to international defined benefit plans. In 2025, the Company plans to make cash contributions of $10 million to international pension plans.

Corning offers postretirement plans that provide health care and life insurance benefits for retirees and eligible dependents. Certain employees may become eligible for such postretirement benefits upon reaching retirement age and service requirements. In 2024 and 2023, no voluntary cash contributions were made to domestic postretirement plans. For current retirees (including surviving spouses) and active employees eligible for the salaried retiree medical program, Corning has placed a “cap” on the amount to be contributed toward retiree medical coverage in the future. The cap is equal to 120% of the 2005 contributions toward retiree medical benefits. Once contributions toward salaried retiree medical costs reach this cap, impacted retirees will have to pay the excess amount in addition to their regular contributions for coverage. This cap was attained for post-65 retirees in 2008 and attained for pre-65 retirees in 2010. Furthermore, employees hired or rehired on or after January 1, 2007 will be eligible for Corning retiree medical benefits upon retirement; however, these employees will pay 100% of the cost.

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11. Employee Retirement Plans (Continued)

Obligations and Funded Status

The following table presents the change in benefit obligation and the funded status of the defined benefit pension and post-retirement benefit plans (in millions):

			Domestic pension benefits												International pension benefits												Postretirement benefits
			2024						2023						2024						2023						2024						2023
Change in benefit obligation
Benefit obligation at beginning of year			$	3,311					$	3,182					$	578					$	549					$	425					$	434
Service cost			79						80						20						18						3						5
Interest cost			165						168						20						20						19						23
Plan participants’ contributions																											9						9
Plan amendments																											(26)
Actuarial (gain) loss			(100)						89						(17)						9						(32)						(7)
Divestiture															(1)												(3)
Other (1)			6						14						(8)						(3)												1
Benefits paid			(241)						(222)						(31)						(25)						(33)						(40)
Foreign currency translation															(36)						10
Benefit obligation at end of year			$	3,220					$	3,311					$	525					$	578					$	362					$	425
Change in plan assets
Fair value of plan assets at beginning of year			$	2,760					$	2,683					$	405					$	381					$	—					$	5
Actual gain (loss) on plan assets			303						281						(6)						10
Employer contributions			20						18						17						32						24						26
Plan participants’ contributions																											9						9
Benefits paid			(241)						(222)						(28)						(25)						(33)						(40)
Foreign currency translation															(26)						7
Fair value of plan assets at end of year			$	2,842					$	2,760					$	362					$	405					$	—					$	—
Funded status at end of year
Fair value of plan assets			$	2,842					$	2,760					$	362					$	405					$	—					$	—
Benefit obligations			(3,220)						(3,311)						(525)						(578)						(362)						(425)
Funded status of plans			$	(378)					$	(551)					$	(163)					$	(173)					$	(362)					$	(425)
Amounts recognized in the consolidated balance sheets consist of:
Noncurrent asset															$	16					$	24
Current liability			$	(18)					$	(17)					(7)						(8)						$	(27)					$	(27)
Noncurrent liability			(360)						(534)						(172)						(189)						(335)						(398)
Recognized liability			$	(378)					$	(551)					$	(163)					$	(173)					$	(362)					$	(425)
Amounts recognized in accumulated other comprehensive loss consist of:
Net actuarial loss (gain)			$	64					$	259					$	12					$	10					$	(220)					$	(212)
Prior service cost (credit)			29						34																		(29)						(10)
Amounts recognized at end of year			$	93					$	293					$	12					$	10					$	(249)					$	(222)

(1)Other consists of domestic plan special termination benefits charge and curtailment and international plan settlements. Refer to Note 2 (Restructuring, Impairment and Other Charges and Credits) in the notes to the consolidated financial statements for more information.

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11. Employee Retirement Plans (Continued)

Across total pension benefits, an actuarial gain of $0.1 billion was recognized in 2024 primarily due to increases in bond yields during the year, leading to domestic plan weighted-average discount rates that were 51 basis points higher than 2023, partially offset by international plan weighted-average discount rates that were 20 basis points lower than 2023. In 2023, an actuarial loss of $0.1 billion was recognized primarily due to decreases in bond yields during the year, leading to domestic and international plan weighted-average discount rates that were 34 and 16 basis points lower, respectively, than 2022. The accumulated benefit obligation for defined benefit pension plans was $3.6 billion and $3.7 billion as of December 31, 2024 and 2023, respectively.

For the years ended December 31, 2024 and 2023, postretirement benefits actuarial gains of $32 million and $7 million, respectively, were recognized. The increase in actuarial gain recognized is primarily due to changes in weighted-average discount rates in response to bond yields during the year. For the years ended December 31, 2024 and 2023, the changes in weighted-average discount rates were an increase of 42 basis points and a decrease of 34 basis points, respectively.

The following table presents information for pension plans where the projected benefit obligation or the accumulated benefit obligation exceeded the fair value of plan assets (in millions):

			December 31,
			2024						2023
Projected benefit obligation			$	3,432					$	3,540
Fair value of plan assets			$	2,875					$	2,791
Accumulated benefit obligation			$	494					$	3,376
Fair value of plan assets			$	33					$	2,791

The following table presents the components of net periodic benefit expense (income) for employee retirement plans, which other than the service cost component is recorded in other (expense) income, net in the consolidated statements of income (in millions):

			Domestic pension benefits																		International pension benefits																		Postretirement benefits
			2024						2023						2022						2024						2023						2022						2024						2023						2022
Service cost			$	79					$	80					$	105					$	20					$	18					$	22					$	3					$	5					$	9
Interest cost			165						168						98						20						20						11						19						23						15
Expected return on plan assets			(179)						(176)						(210)						(16)						(13)						(9)
Amortization of prior service cost (credit)			6						6						6																		(1)						(7)						(5)						(5)
Amortization of actuarial gain																																							(24)						(22)						(5)
Recognition of actuarial (gain) loss			(31)						(16)						29						6						1						8
Total net periodic benefit expense (income)			$	40					$	62					$	28					$	30					$	26					$	31					$	(9)					$	1					$	14
Settlement charge																																	$	2
Curtailment charge									$	3
Special termination benefit charge			$	6					15						$	2																													$	1
Total expense (income)			$	46					$	80					$	30					$	30					$	26					$	33					$	(9)					$	2					$	14
Other changes in plan assets and benefit obligations recognized in other comprehensive loss:
Curtailment effects			$	(1)					$	(4)
Settlements																																	$	11
Current year actuarial (gain) loss			(225)						(16)						$	16					$	5					$	14					(27)						$	(32)					$	(8)					$	(209)
Amortization of actuarial (loss) gain																					(9)																		24						22						5
Recognition of actuarial gain (loss)			31						16						(29)						2						1						20
Current year prior service cost (credit)															28																								(26)
Amortization of prior service (cost) credit			(6)						(6)						(6)																		1						7						5						5
Total recognized in other comprehensive (loss) income			$	(201)					$	(10)					$	9					$	(2)					$	15					$	5					$	(27)					$	19					$	(199)

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11. Employee Retirement Plans (Continued)

Corning uses a hypothetical yield curve and associated spot rate curve to discount the plan’s projected benefit payments. Once the present value of projected benefit payments is calculated, the suggested discount rate is equal to the level rate that results in the same present value. The yield curve is based on actual high-quality corporate bonds across the full maturity spectrum, which also includes private placements and eurobonds that are denominated in U.S. currency. The curve is developed from yields on hundreds of bonds from four grading sources, Moody’s, S&P, Fitch and the Dominion Bond Rating Service. A bond will be included if at least half of the grades from these sources are Aa, non-callable bonds. The very highest 10% yields and the lowest 40% yields are excluded from the curve to eliminate outliers in the bond population.

Mortality is one of the key assumptions used in valuing liabilities of retirement plans. It is used to assign a probability of payment for benefits that are contingent upon participants’ survival. To make this assumption, benefit plan sponsors typically use a base mortality table and an improvement scale to mortality rates for future anticipated changes to historical death rates.

Corning uses the base mortality assumption (PRI-2012 white collar table and PRI-2012 blue collar table for non-union and union participants, respectively) to value its U.S. benefit plan obligation. In addition, Corning uses the MP-2020 projection scale and the mortality assumption applied to disabled participants (PRI-2012 disabled mortality base table with future improvements using MP-2020). As the Society of Actuaries publishes additional mortality improvement scales and base mortality tables, Corning considers these revised schedules in setting its mortality assumptions.

Measurement of postretirement benefit expense is based on assumptions used to value the postretirement benefit obligation at the beginning of the year.

The following table presents the weighted-average assumptions used to determine benefit obligations:

			Pension benefits
			Domestic																		International																		Postretirement benefits
			2024						2023						2022						2024						2023						2022						2024						2023						2022
Discount rate			5.67		%				5.16		%				5.50		%				2.10		%				2.30		%				2.46		%				5.66		%				5.24		%				5.58		%
Rate of compensation increase			3.50		%				3.97		%				3.48		%				2.61		%				3.74		%				3.73		%
Cash balance crediting rate			4.44		%				4.22		%				4.14		%				0.93		%				0.82		%				0.82		%
Employee contributions crediting rate			5.10		%				5.25		%				4.62		%

The following table presents the weighted-average assumptions used to determine net periodic benefit expense (income):

			Pension benefits
			Domestic																		International																		Postretirement benefits
			2024						2023						2022						2024						2023						2022						2024						2023						2022
Discount rate			5.16		%				5.50		%				2.88		%				2.30		%				2.46		%				1.20		%				5.24		%				5.58		%				2.99		%
Expected return on plan assets			6.75		%				6.75		%				6.00		%				4.34		%				3.85		%				1.64		%
Rate of compensation increase			3.98		%				3.87		%				3.50		%				3.74		%				3.73		%				3.63		%
Cash balance crediting rate			4.21		%				3.86		%				3.86		%				0.82		%				0.82		%				0.91		%
Employee contributions crediting rate			5.25		%				4.62		%				1.57		%

The following table presents the assumed health care trend rates:

Assumed health care trend rates as of December 31			2024						2023
Health care cost trend rate assumed for next year (pre-65 / post-65 retirees)			7.00% / 7.00%						6.75% / 14.75%
Ultimate health care trend rate			5		%				5		%
Year that the rate reaches the ultimate trend rate			2033						2031

Table of Contents

11. Employee Retirement Plans (Continued)

Plan Assets

The Company’s primary objective is to ensure the plan has sufficient return on assets to fund the plan’s current and future obligations as they become due. Investments are primarily made in public securities to ensure adequate liquidity to support benefit payments. Corning has a diversification to the portfolio through the investment in domestic stocks. The target allocation range equity investment is 50% which includes large, mid and small-cap companies and investments in developed markets. The target allocation for bond investments is 50%, which includes corporate bonds. Long-duration fixed income assets are utilized to mitigate the sensitivity of funding ratios to changes in interest rates.

The following table presents the fair values of domestic defined benefit and post-retirement benefit plan assets, by asset category (in millions):

			December 31, 2024																								December 31, 2023
			Total						Level 1						Level 2						Level 3						Total						Level 1						Level 2						Level 3
Equity securities:
U.S. companies			$	1,261											$	1,261											$	1,260					$	9					$	1,251
International companies
Fixed income:
U.S. treasury bonds			294						$	294																	204						204
U.S. corporate bonds			876												876												946												946
Preferred securities																											1												1
Private equity (1)
Real estate (2)			2																		$	2					3																		$	3
Cash equivalents			409						357						52												346						339						7
Total			$	2,842					$	651					$	2,189					$	2					$	2,760					$	552					$	2,205					$	3

(1)This category includes venture capital, leverage buyouts and distressed debt limited partnerships invested primarily in U.S. companies. The inputs are valued by discounted cash flow analysis and comparable sale analysis.

(2)This category includes industrial, office, apartments, hotels, infrastructure and retail investments which are limited partnerships predominately in the U.S. The inputs are valued by discounted cash flow analysis; comparable sale analysis and periodic external appraisals.

The following table presents the fair values of international defined benefit plan assets, by asset category (in millions):

			December 31, 2024																								December 31, 2023
			Total						Level 1						Level 2						Level 3						Total						Level 1						Level 2						Level 3
Fixed income:
International fixed income			$	94					$	94																	$	96					$	96
Insurance contracts			167																		$	167					195																		$	195
Mortgages			33																		33						43																		43
Cash equivalents			52						52																		59						59
Other			16																		16						12																		12
Total			$	362					$	146					$	—					$	216					$	405					$	155					$	—					$	250

Table of Contents

11. Employee Retirement Plans (Continued)

The following table presents the changes in the fair value of the defined benefit plans’ Level 3 assets (in millions):

			Domestic												International
			Private equity						Real estate						Mortgages						Insurance contracts						Other
Balance as of December 31, 2022			$	24					$	7					$	42					$	192					$	11
Actual return on plan assets relating to assets still held at the reporting date			(12)												1
Actual return on plan assets relating to assets sold during the reporting period
Asset (sales) purchases			(12)						(4)												3						1
Balance as of December 31, 2023			$	—					$	3					$	43					$	195					$	12
Actual return on plan assets relating to assets still held at the reporting date															2
Actual return on plan assets relating to assets sold during the reporting period
Asset (sales) purchases									(1)						(12)						(1)						4
Change in insurance contract valuation																					(27)
Balance as of December 31, 2024			$	—					$	2					$	33					$	167					$	16

Credit Risk

41% of domestic plan assets are invested in bonds with an average credit rating of AA-. These bonds are subject to both credit and default risk and changes in the risk could lead to a decline in the value of these bonds.

Liquidity Risk

Less than 1% of the domestic securities are invested in Level 3 securities. These are long-term investments in private equity and private real estate investments that may not mature or be sellable in the near-term without significant loss.

As of December 31, 2024 and 2023, the amount of Corning common stock included in equity securities was not significant.

Cash Flow Data

The following table presents the gross benefit payments expected to be paid for domestic and international defined benefit pension plans and the postretirement medical and life plans (in millions):

			Expected benefit payments
			Domestic pension benefits						International pension benefits						Postretirement benefits
2025			$	253					$	28					$	27
2026			$	255					$	37					$	27
2027			$	266					$	34					$	28
2028			$	268					$	37					$	28
2029			$	270					$	38					$	28
2030-2034			$	1,283					$	204					$	139

Other Benefit Plans

Corning offers defined contribution plans covering employees meeting certain eligibility requirements. Total consolidated defined contribution plan expense was $110 million, $118 million and $117 million for the years ended December 31, 2024, 2023 and 2022, respectively.

12. Commitments, Contingencies and Guarantees

Guarantees

The Company is required, at the time a guarantee is issued, to recognize a liability for the fair value or market value of the obligation it assumes. In the normal course of business, the Company does not routinely provide significant third-party guarantees. Generally, third-party guarantees provided by Corning are limited to certain financial guarantees, including stand-by letters of credit and performance bonds, and the incurrence of contingent liabilities in the form of purchase price adjustments related to attainment of milestones. These guarantees have various terms and none of these guarantees are individually significant. The Company believes a significant majority of these guarantees and contingent liabilities will expire without being funded.

Purchase Commitments

Purchase obligations are enforceable and legally binding obligations. The Company has purchase commitments primarily for raw materials and energy-related take-or-pay contracts. Commitments made under these obligations as of December 31, 2024 are as follows (in millions):

			Amount of commitment expiration per period
			Less than 1 year						1 to 3 years						3 to 5 years						5 years and thereafter
Purchase obligations			$	285					$	204					$	124					$	428

Litigation, Environmental and Indemnifications

Corning is a defendant in various lawsuits and is subject to various claims that arise in the normal course of business, the most significant of which are summarized below. In the opinion of management, the likelihood that the ultimate disposition of these matters will have a material adverse effect on Corning’s consolidated financial position, liquidity, or results of operations, is remote.

Dow Corning Chapter 11 Related Matters

Until June 1, 2016, Corning and The Dow Chemical Company (“Dow”) each owned 50% of the common stock of Dow Corning Corporation (“Dow Corning”). On May 31, 2016, Corning and Dow realigned their ownership interest in Dow Corning. Following the realignment, Corning no longer owned any interest in Dow Corning. With the realignment, Corning agreed to indemnify Dow for 50% of Dow Corning’s non-ordinary course, pre-closing liabilities to the extent such liabilities exceed the amounts reserved for them by Dow Corning as of May 31, 2016, subject to certain conditions and limits. In January 2024, we entered into an agreement to settle the Dow Corning Chapter 11 Related Matters and the settlement amount was not material.

Dow Corning Environmental Claims

Beginning in September 2019, Dow formally notified Corning of certain environmental matters for which Dow asserts that it has or will experience losses arising from remediation and response at a number of sites. Subject to certain conditions and limits, Corning may be required to indemnify Dow for up to 50% of such losses. As of December 31, 2024, Corning has determined that a potential liability for these environmental matters is probable and the amount reserved was not material.

Environmental Litigation

Corning has been designated by federal or state governments under environmental laws, including Superfund, as a potentially responsible party that may be liable for cleanup costs associated with 20 hazardous waste sites. It is Corning’s policy to accrue for its estimated liability related to such hazardous waste sites and other environmental liabilities related to property owned by Corning based on expert analysis and continual monitoring by both internal and external consultants. As of December 31, 2024 and 2023, Corning had accrued approximately $78 million and $88 million, respectively, for the estimated undiscounted liability for environmental cleanup and related litigation. Based upon the information developed to date, management believes that the accrued reserve is a reasonable estimate of the Company’s liability.

13. Financial Instruments

The following table summarizes the notional amounts and respective fair values of Corning’s derivative financial instruments on a gross basis as of December 31, 2024 and 2023 (in millions):

			December 31, 2024																		December 31, 2023
			Notional amount						Fair value asset (1)						Fair value liability (1)						Notional amount						Fair value asset (1)						Fair value liability (1)
Derivatives designated as hedging instruments (2):
Foreign exchange and precious metals lease contracts (3)			$	928					$	106					$	(69)					$	241					$	287
Derivatives not designated as hedging instruments:
Foreign exchange contracts			2,339						14						(77)						1,988						20						$	(17)
Translated earnings contracts (4)			9,817						859						(327)						5,042						324						(80)
Cross currency swap contracts			439												(148)
Total derivatives			$	13,523					$	979					$	(621)					$	7,271					$	631					$	(97)
Current									$	619					$	(348)											$	501					$	(66)
Non-current									360						(273)												130						(31)
Total derivatives									$	979					$	(621)											$	631					$	(97)

(1)All of the Company’s derivative contracts are measured at fair value and are classified as Level 2 within the fair value hierarchy. Derivative assets are presented in other current assets or other assets in the consolidated balance sheets. Derivative liabilities are presented in other accrued liabilities or other liabilities in the consolidated balance sheets.

(2)The amounts above do not include €850 million of euro-denominated debt ($879 million and $932 million equivalent as of December 31, 2024 and 2023, respectively), which is a non-derivative financial instrument designated as a net investment hedge.

(3)As of December 31, 2024, derivatives designated as hedging instruments include foreign exchange cash flow hedges with gross notional amounts of $928 million and fair value hedges of leased precious metals with a gross notional amount of 12,694 troy ounces. As of December 31, 2023, derivatives designated as hedging instruments include foreign exchange cash flow hedges with gross notional amounts of $241 million and fair value hedges of leased precious metals with a gross notional amount of 20,160 troy ounces. Fair value assets include designated derivatives pertaining to precious metals lease contracts in the amounts of $104 million and $229 million as of December 31, 2024 and 2023, respectively.

(4)The Company has deferred payments associated with its purchased option contracts that are classified as non-derivative liabilities and will be settled by the end of the option contract term. As of December 31, 2024, the Company has $141 million and $172 million recorded in other accrued liabilities and other liabilities, respectively, in the consolidated balance sheets.

The following table summarizes the total gross notional value for translated earnings contracts as of December 31, 2024 and 2023 (in millions):

			Year ended December 31,
			2024						2023
Average rate forward contracts:
Chinese yuan-denominated			$	864					$	684
Japanese yen-denominated			259						463
South Korean won-denominated			1,151						1,609
New Taiwan dollar-denominated			503						198
Euro-denominated			1,538
Mexican peso-denominated			320
Option contracts:
Japanese yen-denominated			4,997						2,088
Euro-denominated			185
Total gross notional value for translated earning contracts			$	9,817					$	5,042

13. Financial Instruments (Continued)

The following tables summarize the effect in the consolidated statements of income relating to Corning’s derivative financial instruments (in millions). The accumulated derivative (loss) gain included in accumulated other comprehensive loss on the consolidated balance sheets as of December 31, 2024 and 2023 is $(11) million and $54 million, respectively.

			(Loss) gain recognized in other comprehensive income (OCI)																		Location of gain (loss) reclassified from accumulated OCI into income effective (ineffective)						Gain (loss) reclassified from accumulated OCI into income
			2024						2023						2022									2024						2023						2022
Derivatives hedging relationships for cash flow and fair value hedges:
Foreign exchange and precious metals lease contracts			$	(18)					$	81					$	52					Net sales																		$	52
																					Cost of sales						$	47					$	49					32
																					Other (expense) income, net						(1)						(3)						(3)
Total cash flow and fair value hedges			$	(18)					$	81					$	52											$	46					$	46					$	81

			(Loss) gain recognized in income
Undesignated derivatives			2024						2023						2022						Location of gain recognized in income
Foreign exchange contracts			$	(80)					$	26					$	46					Other (expense) income, net
Translated earnings contracts			83						161						351						Translated earnings contract gain, net
Cross currency swap contracts			(15)																		Other (expense) income, net
Total undesignated			$	(12)					$	187					$	397

Cross Currency Swap Contracts

Since inception of the Company’s Japanese yen-denominated debt, the Japanese yen has weakened and the U.S. dollar value of these liabilities has decreased, generating unrealized foreign exchange gains that have been recognized over time in the consolidated statements of income. In 2024, to economically lock in unrealized foreign exchange gains, the Company entered into various cross currency swap contracts relating to a portion of the Company’s Japanese yen-denominated debt due in 2027 and 2028. The cross currency swap contracts have expiration dates in 2027 and 2028. At inception of these instruments, Corning received a net from the counterparties, representing an exchange of the notional amounts at a fixed foreign exchange rate of Japanese yen to U.S. dollar and was initially recorded as a derivative liability. The net payments received were $134 million and as of December 31, 2024, the fair value of this derivative liability is $148 million.

Net Investment Hedges

In May 2023, Corning designated the full amount of its euro-denominated 2026 Notes and 2031 Notes with a total notional amount of €850 million, which are non-derivative financial instruments, as net investment hedges against our investments in certain European subsidiaries with euro functional currencies. As of December 31, 2024, the net investment hedges are deemed to be effective. During the years ended December 31, 2024 and 2023, foreign currency gains of $55 million and foreign currency losses of $5 million, respectively, associated with these net investment hedges were recognized in other comprehensive income.

Leased Precious Metals Contracts

The carrying amount of the leased precious metals pool, which is included within property, plant and equipment, net of accumulated depreciation in the consolidated balance sheets, is $58 million and $90 million, respectively, as of December 31, 2024 and 2023. The carrying amount of the leased precious metals pool includes cumulative fair value loss of $108 million and $239 million as of December 31, 2024 and 2023, respectively. These losses are offset by changes in the fair value of the hedges.

14. Shareholders’ Equity

Common Stock Dividends

On February 12, 2025, Corning’s Board of Directors declared a quarterly dividend of $0.28 per share common stock, which will be payable on March 28, 2025.

Fixed Rate Cumulative Convertible Preferred Stock, Series A

The Company had 2,300 outstanding shares of Fixed Rate Cumulative Convertible Preferred Stock, Series A (the “Preferred Stock”) as of December 31, 2020. On January 16, 2021, the Preferred Stock became convertible into 115 million common shares. On April 5, 2021 Corning and Samsung Display Co., Ltd. (“SDC”) executed the Share Repurchase Agreement (“SRA”), and the Preferred Stock was fully converted as of April 8, 2021. Immediately following the conversion, Corning repurchased and retired 35 million of the common shares held by SDC for an aggregate purchase price of approximately $1.5 billion, of which approximately $507 million was paid in April in each of 2023, 2022 and 2021.

Pursuant to the SRA, with respect to the remaining 80 million common shares outstanding held by SDC, 58 million shares are subject to a seven-year lock-up period expiring in 2027. The remaining 22 million common shares can be offered to be sold to Corning in specified tranches from time to time in calendar years 2024 through 2027. Corning may, at its sole discretion, elect to repurchase such common shares. If Corning elects not to repurchase the common shares and SDC sells the common shares on the open market, Corning is required to pay SDC a make-whole payment, subject to a 5% cap of the repurchase proceeds that otherwise would have been paid by Corning. As of December 31, 2024, 2023 and 2022, the fair value of the liability associated with this option, measured using Level 2 significant other observable inputs, was not material.

Share Repurchases

In 2019, the Board authorized the repurchase of up to $5.0 billion of additional common stock (“2019 Authorization”), which does not have an expiration date and may be amended or terminated by the Board of Directors at any time without prior notice. As of December 31, 2024, approximately $3.1 billion remains available under the Company’s 2019 Authorization.

During the years ended December 31, 2024 and 2022, the Company repurchased 4.4 million and 6.0 million shares of common stock for approximately $165 million and $221 million, respectively. No shares were repurchased during the year ended December 31, 2023.

The following table presents changes in capital stock (in millions):

			Common stock												Treasury stock
			Shares						Par value						Shares						Cost
Balance as of December 31, 2021			1,815						$	907					(970)						$	(20,263)
Shares issued to benefit plans and for option exercises			5						3
Shares purchased for treasury															(6)						(221)
Other, net (1)															(1)						(48)
Balance as of December 31, 2022			1,820						$	910					(977)						$	(20,532)
Shares issued to benefit plans and for option exercises			11						6
Other, net (1)															(3)						(105)
Balance as of December 31, 2023			1,831						$	916					(980)						$	(20,637)
Shares issued to benefit plans and for option exercises			10						5
Shares purchased for treasury, net															(4)						(163)
Other, net (1)															(3)						(82)
Balance as of December 31, 2024			1,841						$	921					(987)						$	(20,882)

(1)Includes the deemed surrender to the Company of common stock to satisfy employee tax withholding obligations.

14. Shareholders’ Equity (Continued)

Accumulated Other Comprehensive Loss

The following table presents the changes in the components of accumulated other comprehensive loss, including the proportionate share of equity method investees’ accumulated other comprehensive loss (in millions) (1):

			Foreign currency translation adjustments and other						Unamortized actuarial gains (losses) and prior service (costs) credits						Net unrealized losses on investments						Realized and unrealized gains (losses) on derivatives						Accumulated other comprehensive loss
Balance as of December 31, 2021			$	(933)					$	(272)					$	(3)					$	33					$	(1,175)
Other comprehensive (loss) income before reclassifications (2)			$	(762)					$	151											$	31					$	(580)
Amounts reclassified from accumulated other comprehensive loss (5)									3												(61)						(58)
Equity method affiliates (6)			(17)																								(17)
Net current-period other comprehensive (loss) income			(779)						154						—						(30)						(655)
Balance as of December 31, 2022			$	(1,712)					$	(118)					$	(3)					$	3					$	(1,830)
Other comprehensive (loss) income before reclassifications (3)			$	(235)					$	1											$	71					$	(163)
Amounts reclassified from accumulated other comprehensive loss (5)									(25)												(35)						(60)
Equity method affiliates (6)			5																								5
Net current-period other comprehensive (loss) income			(230)						(24)						—						36						(218)
Balance as of December 31, 2023			$	(1,942)					$	(142)					$	(3)					$	39					$	(2,048)
Other comprehensive (loss) income before reclassifications (4)			$	(713)					$	192											$	(45)					$	(566)
Amounts reclassified from accumulated other comprehensive loss (5)			145						(8)												(46)						91
Equity method affiliates (6)			(20)																								(20)
Net current-period other comprehensive (loss) income			(588)						184						—						(91)						(495)
Balance as of December 31, 2024			$	(2,530)					$	42					$	(3)					$	(52)					$	(2,543)

(1)All amounts are after tax. Amounts in parentheses indicate debits to accumulated other comprehensive loss.

(2)Amounts are net of total tax benefit of $22 million, primarily driven by $29 million and $24 million related to foreign currency translation adjustments and the hedging component, respectively, offset by negative impacts of $31 million related to retirement plans.

(3)Amounts are net of total tax benefit of $19 million, primarily driven by $12 million and $8 million related to foreign currency translation adjustments and the hedging component, respectively, offset by negative impacts of $1 million related to retirement plans.

(4)Amounts are net of total tax benefit of $21 million, primarily driven by $50 million and $29 million related to foreign currency translation adjustments and the hedging component, respectively, offset by negative impacts of $58 million related to retirement plans.

(5)Tax effects of reclassifications are disclosed in the following table.

(6)Tax effects related to equity method affiliates are not significant in the reported periods.

14. Shareholders’ Equity (Continued)

The following table presents reclassifications out of accumulated other comprehensive loss (“AOCI”) by component (in millions) (1):

			Amount reclassified from AOCI																		Affected line item in the consolidated statements of income
			Year ended December 31
Details about AOCI Components			2024						2023						2022
Release of cumulative translation losses (2)			$	(145)																	Other (expense) income, net
																					Provision for income taxes
			$	(145)					$	—					$	—
Amortization of net actuarial gains (loss) (3)			$	48					$	39					$	(4)					Other (expense) income, net
Amortization of prior service (cost) credit (3)			(38)						(1)												Other (expense) income, net
			10						38						(4)
			(2)						(13)						1						Provision for income taxes
			$	8					$	25					$	(3)
Realized gains on designated hedges															$	52					Sales
			$	47					$	49					32						Cost of sales
			(1)						(3)						(3)						Other (expense) income, net
			46						46						81
			—						(11)						(20)						Provision for income taxes
			$	46					$	35					$	61
Total reclassifications for the period			$	(91)					$	60					$	58

(1)Amounts in parentheses indicate debits to the consolidated statements of income.

(2)For the year ended December 31, 2024, amount relates to the recognition of non-cash cumulative foreign currency translation losses related to the substantial liquidation and disposition of foreign entities, which was recorded in other (expense) income, net in the consolidated statements of income.

(3)These accumulated other comprehensive loss components are included in net periodic pension cost. Refer to Note 11 (Employee Retirement Plans) in the notes to the consolidated financial statements for additional details.

15. Earnings Per Common Share

Basic earnings per common share are computed by dividing net income attributable to Corning Incorporated by the weighted-average number of common shares outstanding for the period. Diluted earnings per common share assumes the issuance of common shares for all potentially dilutive securities outstanding.

The following table presents the reconciliation of the amounts used to compute basic and diluted earnings per common share (in millions, except per share amounts):

			Year ended December 31,
			2024						2023						2022
Net income attributable to Corning Incorporated			$	506					$	581					$	1,316
Weighted-average common shares outstanding - basic			853						848						843
Effect of dilutive securities:
Stock options and other awards			16						11						14
Weighted-average common shares outstanding - diluted			869						859						857
Basic earnings per common share			$	0.59					$	0.69					$	1.56
Diluted earnings per common share			$	0.58					$	0.68					$	1.54
Anti-dilutive potential shares excluded from diluted earnings per common share:
Stock options and other awards			0						2						1
Total			0						2						1

16. Share-Based Compensation

The following table presents share-based compensation cost and the unrecognized compensation cost by award type (in millions):

			Amount of share-based compensation cost recognized																		Unrecognized compensation cost						Weighted-average remaining term in years
			Year ended December 31,																		December 31,
			2024						2023						2022						2024
Time-based restricted stock and restricted stock units			$	141					$	172					$	111					$	113					1.5
Performance-based restricted stock units			123						36						52						30						1.5
Stock Options									2						7
Other			9						8						5
Total share-based compensation cost (1)			$	273					$	218					$	175

(1)The income tax benefit realized from share-based compensation was $9 million, $17 million and $16 million, respectively, for the years ended December 31, 2024, 2023 and 2022.

As of December 31, 2024, there were approximately 19 million unissued common shares available for future grants authorized under the Plans.

16. Share-Based Compensation (Continued)

Incentive Stock Plans

Time-Based Restricted Stock and Restricted Stock Units

The following table summarizes the changes in non-vested time-based restricted stock and restricted stock units during the year ended December 31, 2024:

			Number of shares (in thousands)						Weighted-average grant-date fair value
Non-vested shares and share units as of December 31, 2023			13,321						$	33.89
Granted			1,574						34.80
Vested			(5,877)						35.45
Forfeited			(562)						34.46
Non-vested shares and share units as of December 31, 2024			8,456						$	32.94

The total fair value of time-based restricted stock and restricted stock units that vested during the years ended December 31, 2024, 2023 and 2022 was approximately $208 million, $118 million and $93 million, respectively.

Performance-Based Restricted Stock Units

The following table summarizes the changes in non-vested performance-based restricted stock units during the year ended December 31, 2024:

			Number of shares (in thousands)						Weighted-average grant-date fair value
Non-vested share units as of December 31, 2023			2,026						$	38.89
Granted			1,647						32.70
Vested			(1,135)						41.63
Performance adjustments			1,603						32.74
Forfeited			(101)						32.98
Non-vested share units as of December 31, 2024			4,040						$	33.28

The total fair value of performance-based restricted stock units that vested during the years ended December 31, 2024, 2023 and 2022 was approximately $47 million, $120 million and $5 million, respectively.

Stock Options

During the year ended December 31, 2024, 3.3 million options were exercised and 9 thousand options were forfeited and expired with a weighted-average exercise price of $23.37 and $19.97, respectively. As of December 31, 2024, 4.2 million options were outstanding, vested and exercisable, with a weighted-average exercise price of $24.18, weighted average remaining contractual term of 4.2 years and aggregate intrinsic value of $99 million. As of December 31, 2023, 7.5 million options were outstanding, vested and exercisable, with a weighted-average exercise price of $23.82.

The aggregate intrinsic value (market value of stock less option exercise price) represents the total pre-tax intrinsic value, based on the Company’s closing stock price as of December 31, 2024, which would have been received by the option holders had all option holders exercised their “in-the-money” options as of that date.

There were no options granted in 2024, 2023 or 2022. The total fair value of options that vested during the years ended December 31, 2023 and 2022 was approximately $6 million and $20 million, respectively. There were no options that vested during the year ended December 31, 2024.

Proceeds received from the exercise of stock options were $76 million, with a corresponding realized tax benefit of $8 million, for the year ended December 31, 2024. The total intrinsic value of options exercised for the years ended December 31, 2024, 2023 and 2022 was approximately $56 million, $29 million and $36 million, respectively.

17. Reportable Segments

The Company has determined that it has five reportable segments for financial reporting purposes, organized primarily based on product offerings, as follows:

• Optical Communications – manufactures carrier network and enterprise network components for the telecommunications industry; the carrier network group consists primarily of products and solutions for optical-based communications infrastructure for services such as video, data and voice communications, and the enterprise network group consists primarily of optical-based communication networks sold to businesses, governments and individuals for their own use.

• Display Technologies – manufactures high quality glass substrates for flat panel displays including liquid crystal displays and organic light-emitting diodes that are used primarily in televisions, notebook computers, desktop monitors, tablets and handheld devices.

• Specialty Materials – manufactures products that provide material formulations for glass, glass ceramics and fluoride crystals to meet demand for unique customer needs across a wide variety of commercial and industrial markets, including materials optimized for mobile consumer electronics, semiconductor equipment optics and consumables, aerospace and defense optics, radiation shielding products, sunglasses and telecommunications components.

• Environmental Technologies – manufactures ceramic substrates and filter products for emissions control systems in mobile applications.

• Life Sciences – develops, manufactures and supplies laboratory products, including 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. Net sales for this group are mainly attributable to HSG, an operating segment that produces solar and semiconductor products. The emerging growth businesses primarily consist of Pharmaceutical Technologies, Auto Glass Solutions and the Emerging Innovations Group.

The chief operating decision maker (“CODM”) of the Company is the Company’s chief executive officer. The CODM assesses performance and decides how to allocate resources, including employees, financial or capital resources, based on segment net income (loss), which includes certain corporate overhead allocations directly attributable to each of the segments. The CODM considers actual-to-actual variances on a quarterly basis when making decisions about allocating capital and other resources to the segments and to assess the performance for each segment.

Financial results for the reportable segments and Hemlock and Emerging Growth Businesses are prepared on a basis consistent with the internal disaggregation of financial information to assist the CODM in making internal operating decisions. As 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 segment net sales and segment net income of translating these currencies into U.S. dollars. Therefore, the Company utilizes constant-currency reporting for the Display Technologies, Specialty Materials, Environmental Technologies and Life Sciences segments to exclude the impact on segment sales and segment net income from the Japanese yen, South Korean won, Chinese yuan, New Taiwan dollar and euro, as applicable to the segment. In addition, effective January 1, 2024, the Company began utilizing constant-currency reporting for the Optical Communications segment to exclude the impact from the Mexican peso on segment results. Prior periods were not recast as the impact was not material. The most significant constant-currency adjustment relates to the Japanese yen exposure within the Display Technologies segment. The constant-currency rates established for our core performance measures are internally derived long-term management estimates, which are closely aligned with our hedging instrument rates. These hedging instruments may include, but are not limited to, foreign exchange forward or option contracts and foreign-denominated debt.

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17. Reportable Segments (Continued)

The Company believes that the use of constant-currency reporting allows management to understand segment results without the volatility of currency fluctuation, analyze underlying trends in the businesses and establish operational goals and forecasts.

Constant-currency rates used are as follows and are applied to all periods presented and to all foreign exchange exposures during the period, with the exception of the Mexican peso as discussed above, even though we may be less than 100% hedged:

Currency						Japanese yen						Korean won						Chinese yuan						New Taiwan dollar						Euro						Mexican Peso
Rate						¥107						₩1,175						¥6.7						NT$31						€0.81						MX$20

In addition, certain income and expenses are excluded from segment net income (loss) and included in the unallocated amounts in the reconciliation of reportable segment net income (loss) to net income. These items are not used by the CODM in allocating resources or evaluating the results of the segments and include the following: the impact of translating the Japanese yen-denominated debt; the impact of the translated earnings contracts; acquisition-related costs; certain discrete tax items and other tax-related adjustments; restructuring, impairment and other charges and credits; certain litigation, regulatory and other legal matters; pension mark-to-market adjustments; and other non-recurring non-operational items. Although these amounts are excluded from segment results, they are included in reported consolidated results.

Corning’s administrative and staff functions are performed on a centralized basis and such costs and expenses are allocated among the segments differently than they would be for stand-alone financial reporting purposes. These include certain costs and expenses of shared services, such as information technology, human resources, legal, finance and supply chain management. Expenses that are not allocated to the segments are included in the reconciliation of reportable segment net income (loss) to net income. Segment net income (loss) may not be consistent with measures used by other companies.

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17. Reportable Segments (Continued)

The following provides segment information as described above:

Segment Information (in millions)

			Optical Communications						Display Technologies						Specialty Materials						Environmental Technologies						Life Sciences						Hemlock and Emerging Growth Businesses						Total
For the year ended December 31, 2024
Segment net sales			$	4,657					$	3,872					$	2,018					$	1,665					$	979					$	1,278					$	14,469
Less:
Research, development and engineering expenses (1)			274						110						253						100						22						168						927
Depreciation (2)			267						446						153						126						67						160						1,219
Other segment items (3)			3,330						2,047						1,283						986						810						1,007						9,463
Income tax provision (benefit) (4)			174						263						69						95						17						(2)						616
Segment net income (loss)			$	612					$	1,006					$	260					$	358					$	63					$	(55)					$	2,244
Investment in affiliated companies, at equity			$	4					$	90					$	15					$	—					$	—					$	181					$	290
Segment assets (5)			$	3,506					$	6,596					$	2,489					$	1,760					$	800					$	2,475					$	17,626
Capital expenditures			$	193					$	256					$	107					$	33					$	15					$	193					$	797
For the year ended December 31, 2023
Segment net sales			$	4,012					$	3,532					$	1,865					$	1,766					$	959					$	1,446					$	13,580
Less:
Research, development and engineering expenses (1)			238						102						229						99						33						162						863
Depreciation (2)			263						481						149						129						69						144						1,235
Other segment items (3)			2,903						1,887						1,232						1,049						794						1,103						8,968
Income tax provision (4)			130						220						53						103						13						22						541
Segment net income			$	478					$	842					$	202					$	386					$	50					$	15					$	1,973
Investment in affiliated companies, at equity			$	3					$	105					$	11					$	—					$	3					$	174					$	296
Segment assets (5)			$	3,241					$	7,899					$	2,476					$	1,873					$	782					$	2,307					$	18,578
Capital expenditures			$	176					$	363					$	175					$	31					$	41					$	303					$	1,089
For the year ended December 31, 2022
Segment net sales			$	5,023					$	3,306					$	2,002					$	1,584					$	1,228					$	1,662					$	14,805
Less:
Research, development and engineering expenses (1)			230						124						222						98						37						163						874
Depreciation (2)			249						547						155						128						60						146						1,285
Other segment items (3)			3,703						1,663						1,195						988						938						1,290						9,777
Income tax provision (4)			180						203						90						78						40						24						615
Segment net income			$	661					$	769					$	340					$	292					$	153					$	39					$	2,254
Investment in affiliated companies, at equity			$	3					$	102					$	8					$	—					$	4					$	144					$	261
Segment assets (5)			$	3,295					$	8,104					$	2,419					$	2,061					$	862					$	2,136					$	18,877
Capital expenditures			$	368					$	495					$	306					$	110					$	116					$	218					$	1,613

(1)Research, development and engineering expenses include direct project spending that is identifiable to a segment.

(2)Depreciation expense includes an allocation of depreciation or corporate property not specifically identifiable to a segment.

(3)Other segment items for each reportable segment primarily includes the cost of materials, salaries, wages and benefits, including variable compensation, and selling, general and administrative expenses.

(4)Income tax provision (benefit) reflects a tax rate of 21%.

(5)Segment assets include inventory, accounts receivable, property, plant and equipment, net of accumulated depreciation, and associated equity companies.

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17. Reportable Segments (Continued)

The following table presents a reconciliation of net sales of reportable segments to consolidated net sales (in millions):

			Year ended December 31,
			2024						2023						2022
Net sales of reportable segments			$	13,191					$	12,134					$	13,143
Net sales of Hemlock and Emerging Growth Businesses			1,278						1,446						1,662
Impact of constant currency reporting (1)			(1,309)						(992)						(616)
Impairment of upfront fees to a customer (2)			(42)
Consolidated net sales			$	13,118					$	12,588					$	14,189

(1)This amount primarily represents the impact of foreign currency adjustments in the Display Technologies segment.

(2)Amount represents non-cash charges to write-down upfront payments made to a customer. Refer to Note 2 (Restructuring, Impairment and Other Charges and Credits) to the consolidated financial statements for additional information.

The following table presents a reconciliation of net (loss) income of reportable segments to consolidated net income (in millions):

			Year ended December 31,
			2024						2023						2022
Net income of reportable segments			$	2,299					$	1,958					$	2,215
Net (loss) income of Hemlock and Emerging Growth Businesses			(55)						15						39
Unallocated amounts:
Impact of constant currency reporting			(989)						(744)						(480)
Translated earnings contract gain, net			83						161						348
Translation gain on Japanese yen-denominated debt, net			104						100						191
Litigation, regulatory and other legal matters			(12)						(61)						(100)
Research, development, and engineering expense (1)(2)			(151)						(162)						(163)
Amortization of intangibles			(121)						(122)						(123)
Interest expense, net			(248)						(244)						(237)
Income tax benefit			395						373						204
Pension mark-to-market			(3)						(15)						(11)
Severance charges (2)			(45)						(187)						(70)
Capacity optimization and other charges and credits (3)			(362)						(284)						(344)
(Loss) gain on sale of business			(31)												53
Other corporate items			(272)						(140)						(136)
Net income			$	592					$	648					$	1,386

(1)Amount does not include research, development and engineering expense related to restructuring, impairment and other charges and credits and pension mark-to-market.

(2)Refer to Note 2 (Restructuring, Impairment and Other Charges and Credits) for additional information.

(3)Amount includes charges associated with impairment losses, asset write-offs, accelerated depreciation, disposal costs, inventory write-downs and non-cash charges to write-down upfront payments made to a customer. Refer to Note 2 (Restructuring, Impairment and Other Charges and Credits) for additional information.

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17. Reportable Segments (Continued)

The following table presents a reconciliation of total assets of reportable segments to consolidated total assets (in millions):

			December 31,
			2024						2023						2022
Total assets of reportable segments			$	15,151					$	16,271					$	16,741
Total assets of Hemlock and Emerging Growth Businesses			2,475						2,307						2,136
Unallocated amounts:
Current assets (1)			2,881						2,522						2,823
Investments (2)			104						119						99
Property, plant and equipment, net (3)			1,133						1,038						1,385
Other non-current assets (4)			5,991						6,243						6,315
Total assets			$	27,735					$	28,500					$	29,499

(1)Includes cash, other receivables, prepaid expenses and current portion of long-term derivative assets.

(2)Represents other corporate investments.

(3)Represents corporate property not specifically identifiable to an operating segment.

(4)Includes goodwill, other intangible assets, pension assets, long-term derivative assets, right of use assets and deferred income taxes.

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17. Reportable Segments (Continued)

The following table presents selected financial information about the Company’s product lines and reportable segments (in millions):

			Year ended December 31,
Revenue from external customers			2024						2023						2022
Optical Communications (1)
Carrier network			$	2,678					$	2,686					$	3,573
Enterprise network			1,979						1,326						1,450
Total Optical Communications			4,657						4,012						5,023
Display Technologies			3,872						3,532						3,306
Specialty Materials
Corning® Gorilla® Glass			1,224						1,136						1,331
Advanced optics and other specialty glass			794						729						671
Total Specialty Materials			2,018						1,865						2,002
Environmental Technologies
Automotive and other			1,098						1,123						934
Diesel			567						643						650
Total Environmental Technologies			1,665						1,766						1,584
Life Sciences
Labware			490						487						657
Cell culture products			489						472						571
Total Life Science			979						959						1,228
Hemlock and Emerging Growth Businesses
Polycrystalline Silicon			865						1,014						1,191
Other			413						432						471
Total Hemlock and Emerging Growth Businesses			1,278						1,446						1,662
Net sales of reportable segments			13,191						12,134						13,143
Net sales of Hemlock and Emerging Growth Businesses			1,278						1,446						1,662
Impact of constant currency reporting (2)			(1,309)						(992)						(616)
Impairment of upfront fees to a customer (3)			(42)
Consolidated net sales			$	13,118					$	12,588					$	14,189

(1)Prior results for Optical Communications have been recast to confirm to the current period presentation. Reclassification between Carrier and Enterprise reflect how customers are utilizing Corning products in their deployments.

(2)This amount primarily represents the impact of foreign currency adjustments in the Display Technologies segment.

(3)Amount represents non-cash charges to write-down upfront payments made to a customer. Refer to Note 2 (Restructuring, Impairment and Other Charges and Credits) for additional information.

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17. Reportable Segments (Continued)

The following table presents information relating to the Company’s operations by geographic area (in millions):

			2024												2023												2022
			Net sales (1)						Long-lived assets (2)						Net sales (1)						Long-lived assets (2)						Net sales (1)						Long-lived assets (2)
North America:
United States			$	5,172					$	8,617					$	4,439					$	8,698					$	5,149					$	8,937
Canada			256						83						317						95						503						99
Mexico			127						203						84						211						96						180
Total North America			5,555						8,903						4,840						9,004						5,748						9,216
Asia Pacific:
Japan			688						125						667						388						617						429
Taiwan			1,019						1,281						855						1,515						813						1,696
China			4,694						4,291						4,439						4,575						4,435						4,794
Korea			486						2,671						418						3,092						514						3,294
Other			424						88						620						88						729						81
Total Asia Pacific			7,311						8,456						6,999						9,658						7,108						10,294
Europe:
Germany			494						400						535						464						539						459
Other			926						827						998						956						1,116						937
Total Europe			1,420						1,227						1,533						1,420						1,655						1,396
All Other			183						27						208						53						294						67
Total			$	14,469					$	18,613					$	13,580					$	20,135					$	14,805					$	20,973

(1)Net sales are attributed to countries based on location of customer.

(2)Long-lived assets primarily include investments, plant and equipment, goodwill and other intangible assets.