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Cover and table of contents
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
| ☒ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the quarterly period ended March 31, 2026
OR
| ☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the transition period from ____________________________ To ____________________________
Commission file number: 1-3247
CORNING INCORPORATED
(Exact name of registrant as specified in its charter)
| New York | 16-0393470 | |||||||||||||
| (State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |||||||||||||
| One Riverfront Plaza, Corning, New York | 14831 | |||||||||||||
| (Address of principal executive offices) | (Zip Code) |
607-974-9000
(Registrant’s telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
| Common Stock, $0.50 par value per share | GLW | New York Stock Exchange | ||||||||||||
| 3.875% Notes due 2026 | GLW26 | New York Stock Exchange | ||||||||||||
| 4.125% Notes due 2031 | GLW31 | New York Stock Exchange |
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days.
| Yes | ☒ | No | ☐ |
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
| Yes | ☒ | No | ☐ |
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
| Large Accelerated Filer | ☒ | Accelerated Filer | ☐ | |||||||||||||||||
| Non-Accelerated Filer | ☐ | Smaller Reporting Company | ☐ | |||||||||||||||||
| Emerging Growth Company | ☐ |
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards pursuant to Section 13(a) of the Exchange Act. ☐
If securities are registered pursuant to Section 12(b) of the Exchange Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements. ☐
Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant’s executive officers during the relevant recovery period pursuant to §240.10D-1(b). ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
| Yes | ☐ | No | ☒ |
Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.
| Class | Outstanding as of April 24, 2026 | |||||||||||||
| Corning’s Common Stock, $0.50 par value per share | 860,637,825 shares |
INDEX
| Consolidated Statements of Income | Corning Incorporated and Subsidiary Companies | ||||
| (Unaudited; in millions, except per share amounts) |
| Three months ended March 31, | |||||||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||||||
| Net sales | $ | 4,144 | $ | 3,452 | |||||||||||||||||||
| Cost of sales | 2,616 | 2,238 | |||||||||||||||||||||
| Gross margin | 1,528 | 1,214 | |||||||||||||||||||||
| Operating expenses: | |||||||||||||||||||||||
| Selling, general and administrative expenses | 588 | 471 | |||||||||||||||||||||
| Research, development and engineering expenses | 278 | 270 | |||||||||||||||||||||
| Amortization of purchased intangibles | 23 | 28 | |||||||||||||||||||||
| Operating income | 639 | 445 | |||||||||||||||||||||
| Interest income | 9 | 12 | |||||||||||||||||||||
| Interest expense | (92) | (82) | |||||||||||||||||||||
| Translated earnings contract loss, net (Note 9) | (16) | (101) | |||||||||||||||||||||
| Other expense, net | (11) | (34) | |||||||||||||||||||||
| Income before income taxes | 529 | 240 | |||||||||||||||||||||
| Provision for income taxes (Note 11) | (121) | (55) | |||||||||||||||||||||
| Net income | 408 | 185 | |||||||||||||||||||||
| Net income attributable to non-controlling interest | (37) | (28) | |||||||||||||||||||||
| Net income attributable to Corning Incorporated | $ | 371 | $ | 157 | |||||||||||||||||||
| Earnings per common share available to common shareholders: | |||||||||||||||||||||||
| Basic (Note 13) | $ | 0.43 | $ | 0.18 | |||||||||||||||||||
| Diluted (Note 13) | $ | 0.43 | $ | 0.18 |
The accompanying notes are an integral part of these consolidated financial statements.
| Consolidated Statements of Comprehensive Income | Corning Incorporated and Subsidiary Companies | ||||
| (Unaudited; in millions) |
| Three months ended March 31, | |||||||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||||||
| Net income | $ | 408 | $ | 185 | |||||||||||||||||||
| Foreign currency translation adjustments and other (Note 12) | (171) | 161 | |||||||||||||||||||||
| Unamortized losses and prior service costs for postretirement benefit plans | (4) | (5) | |||||||||||||||||||||
| Realized and unrealized (losses) gains on derivatives | (11) | 27 | |||||||||||||||||||||
| Other comprehensive (loss) income, net of tax | (186) | 183 | |||||||||||||||||||||
| Comprehensive income | 222 | 368 | |||||||||||||||||||||
| Comprehensive income attributable to non-controlling interest | (37) | (28) | |||||||||||||||||||||
| Comprehensive income attributable to Corning Incorporated | $ | 185 | $ | 340 |
The accompanying notes are an integral part of these consolidated financial statements.
| Consolidated Balance Sheets | Corning Incorporated and Subsidiary Companies | ||||
| (Unaudited; in millions, except share and per share amounts) |
| March 31, 2026 | December 31, 2025 | ||||||||||
| Assets | |||||||||||
| Current assets: | |||||||||||
| Cash and cash equivalents | $ | 1,755 | $ | 1,526 | |||||||
| Trade accounts receivable, net of doubtful accounts - $27 and $27 | 2,676 | 2,779 | |||||||||
| Inventories (Note 3) | 3,279 | 3,077 | |||||||||
| Other current assets (Note 5) | 1,816 | 1,554 | |||||||||
| Total current assets | 9,526 | 8,936 | |||||||||
| Property, plant and equipment, net of accumulated depreciation - $15,162 and $15,229 | 14,785 | 14,825 | |||||||||
| Goodwill | 2,479 | 2,489 | |||||||||
| Other intangible assets, net | 632 | 657 | |||||||||
| Deferred income taxes (Note 11) | 1,569 | 1,515 | |||||||||
| Other assets (Note 5) | 2,262 | 2,554 | |||||||||
| Total Assets | $ | 31,253 | $ | 30,976 | |||||||
| Liabilities and Equity | |||||||||||
| Current liabilities: | |||||||||||
| Current portion of long-term debt and short-term borrowings (Note 6) | $ | 1,255 | $ | 804 | |||||||
| Accounts payable | 2,251 | 1,979 | |||||||||
| Other accrued liabilities (Notes 5 and 8) | 2,410 | 2,845 | |||||||||
| Total current liabilities | 5,916 | 5,628 | |||||||||
| Long-term debt (Note 6) | 7,718 | 7,630 | |||||||||
| Postretirement benefits other than pensions (Note 7) | 311 | 314 | |||||||||
| Other liabilities (Notes 5 and 8) | 4,959 | 5,097 | |||||||||
| Total liabilities | 18,904 | 18,669 | |||||||||
| Commitments and contingencies (Note 8) | |||||||||||
| Shareholders’ equity: (Note 12) | |||||||||||
| Common stock – Par value $0.50 per share; Shares authorized 3.8 billion; Shares issued: 1.9 billion and 1.8 billion | 925 | 924 | |||||||||
| Additional paid-in capital – common stock | 17,704 | 17,580 | |||||||||
| Retained earnings | 16,680 | 16,551 | |||||||||
| Treasury stock, at cost; Shares held: 993 million and 992 million | (21,206) | (21,143) | |||||||||
| Accumulated other comprehensive loss | (2,291) | (2,105) | |||||||||
| Total Corning Incorporated shareholders’ equity | 11,812 | 11,807 | |||||||||
| Non-controlling interest | 537 | 500 | |||||||||
| Total equity | 12,349 | 12,307 | |||||||||
| Total Liabilities and Equity | $ | 31,253 | $ | 30,976 |
The accompanying notes are an integral part of these consolidated financial statements.
| Consolidated Statements of Cash Flows | Corning Incorporated and Subsidiary Companies | ||||
| (Unaudited; in millions) |
| Three months ended March 31, | |||||||||||
| 2026 | 2025 | ||||||||||
| Cash Flows from Operating Activities: | |||||||||||
| Net income | $ | 408 | $ | 185 | |||||||
| Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
| Depreciation | 334 | 291 | |||||||||
| Amortization of purchased intangibles | 23 | 28 | |||||||||
| Share-based compensation expense | 115 | 54 | |||||||||
| Translation (gain) loss on foreign denominated debt, net | (6) | 43 | |||||||||
| Deferred tax benefit | (62) | (50) | |||||||||
| Translated earnings contract loss, net | 16 | 101 | |||||||||
| Changes in assets and liabilities: | |||||||||||
| Trade accounts receivable | 12 | 10 | |||||||||
| Inventories | (232) | (146) | |||||||||
| Other current assets | (56) | (30) | |||||||||
| Accounts payable and other current liabilities | (80) | (253) | |||||||||
| Customer deposits and government incentives | (171) | (16) | |||||||||
| Deferred income | (38) | (29) | |||||||||
| Other, net | 99 | (37) | |||||||||
| Net cash provided by operating activities | 362 | 151 | |||||||||
| Cash Flows from Investing Activities: | |||||||||||
| Capital expenditures | (332) | (208) | |||||||||
| Proceeds from CHIPS Act incentives | 8 | ||||||||||
| Realized gains on translated earnings contracts and other | 150 | 56 | |||||||||
| Other, net | (29) | (13) | |||||||||
| Net cash used in investing activities | (203) | (165) | |||||||||
| Cash Flows from Financing Activities: | |||||||||||
| Repayments of debt | (13) | (47) | |||||||||
| Proceeds from issuance of debt and short-term borrowings | 427 | ||||||||||
| Proceeds from cross currency swap | 24 | ||||||||||
| Payments of employee withholding tax on stock awards | (63) | (29) | |||||||||
| Proceeds from exercise of stock options | 14 | 11 | |||||||||
| Purchases of common stock for treasury | (100) | ||||||||||
| Dividends paid | (244) | (242) | |||||||||
| Other, net | (62) | (20) | |||||||||
| Net cash provided by (used in) financing activities | 59 | (403) | |||||||||
| Effect of exchange rates on cash | (5) | 8 | |||||||||
| Net increase (decrease) in cash and cash equivalents and restricted cash | 213 | (409) | |||||||||
| Cash and cash equivalents and restricted cash at beginning of period | 1,566 | 1,768 | |||||||||
| Cash and cash equivalents and restricted cash at end of period | $ | 1,779 | $ | 1,359 | |||||||
| Restricted cash included in other current assets | 24 | ||||||||||
| Cash and cash equivalents at end of period | $ | 1,755 | $ | 1,359 |
The accompanying notes are an integral part of these consolidated financial statements.
| Consolidated Statements of Changes in Shareholders’ Equity | Corning Incorporated and Subsidiary Companies | ||||
| (Unaudited; in millions, except per share amounts) |
| 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, 2025 | $ | 924 | $ | 17,580 | $ | 16,551 | $ | (21,143) | $ | (2,105) | $ | 11,807 | $ | 500 | $ | 12,307 | |||||||||||||||||||||||||||||||
| Net income | 371 | 371 | 37 | 408 | |||||||||||||||||||||||||||||||||||||||||||
| Other comprehensive loss | (186) | (186) | (186) | ||||||||||||||||||||||||||||||||||||||||||||
| Shares issued to benefit plans and for option exercises | 1 | 124 | 125 | 125 | |||||||||||||||||||||||||||||||||||||||||||
| Common dividends ($0.28 per share) | (242) | (242) | (242) | ||||||||||||||||||||||||||||||||||||||||||||
| Other, net (1) | (63) | (63) | (63) | ||||||||||||||||||||||||||||||||||||||||||||
| Balance as of March 31, 2026 | $ | 925 | $ | 17,704 | $ | 16,680 | $ | (21,206) | $ | (2,291) | $ | 11,812 | $ | 537 | $ | 12,349 | |||||||||||||||||||||||||||||||
| 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, 2024 | $ | 921 | $ | 17,264 | $ | 15,926 | $ | (20,882) | $ | (2,543) | $ | 10,686 | $ | 384 | $ | 11,070 | |||||||||||||||||||||||||||||||
| Net income | 157 | 157 | 28 | 185 | |||||||||||||||||||||||||||||||||||||||||||
| Other comprehensive income | 183 | 183 | 183 | ||||||||||||||||||||||||||||||||||||||||||||
| Purchase of common stock for treasury | (100) | (100) | (100) | ||||||||||||||||||||||||||||||||||||||||||||
| Shares issued to benefit plans and for option exercises | 1 | 63 | 64 | 64 | |||||||||||||||||||||||||||||||||||||||||||
| Common dividends ($0.28 per share) | (244) | (244) | (244) | ||||||||||||||||||||||||||||||||||||||||||||
| Other, net (1) | (30) | (30) | (30) | ||||||||||||||||||||||||||||||||||||||||||||
| Balance as of March 31, 2025 | $ | 922 | $ | 17,327 | $ | 15,839 | $ | (21,012) | $ | (2,360) | $ | 10,716 | $ | 412 | $ | 11,128 | |||||||||||||||||||||||||||||||
(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
(Unaudited)
1. Summary of Significant Accounting Policies
Basis of Presentation and Principles of Consolidation
In these notes, the terms “Corning,” “Company,” “we,” “us,” or “our” mean Corning Incorporated and its subsidiary companies.
The consolidated financial statements include the accounts of Corning Incorporated and its consolidated subsidiaries (collectively, the “Company”), consisting of its wholly-owned subsidiaries, partially-owned subsidiaries in which the Company holds a controlling financial interest through ownership of a majority of the voting interests and those entities in which the Company has a variable interest and of which the Company is the primary beneficiary, and are consolidated in conformity with accounting principles generally accepted in the United States of America (“GAAP”). In the opinion of management, the accompanying unaudited consolidated financial statements contain all adjustments, consisting of normal recurring adjustments, necessary to state fairly the financial position, results of operations and cash flows for the periods presented. All intercompany balances, transactions and profits have been eliminated. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been omitted pursuant to the rules and regulations of the United States Securities and Exchange Commission (“SEC”). These consolidated financial statements should be read in conjunction with the audited financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025 (“2025 Form 10-K”). The results of operations for the interim periods are not necessarily indicative of results which may be expected for any other interim period or for the full year.
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 on the consolidated financial statements and accompanying notes. Significant estimates and assumptions in these consolidated financial statements require the exercise of judgment. Due to the inherent uncertainty involved in making estimates, actual results could differ materially from these estimates.
The non-controlling interest recorded on the consolidated financial statements represents amounts attributable to the minority shareholders of less-than-wholly-owned consolidated subsidiaries, including Hemlock Semiconductor Operations, a majority owned entity within our Solar segment, and US Conec, a variable interest entity within our Optical Communications segment, of which the Company is the primary beneficiary, and other subsidiaries.
Certain prior year amounts have been reclassified to conform to the current year presentation, including a recast of the Company’s segment related disclosures to align with its new reportable segments as of the first quarter of fiscal year 2026. Refer to Note 14 (Reportable Segments) for additional information. These reclassifications had no impact on the results of operations, financial position or changes in shareholders’ equity.
2. Revenue
Disaggregated Revenue
The following table presents revenues by product category. The product category classifications have been updated and the comparative period has been recast due to changes in how the business is being managed as of the first quarter of fiscal year 2026 (in millions):
| Three months ended March 31, | |||||||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||||||
| Optical communications products | $ | 1,846 | $ | 1,355 | |||||||||||||||||||
| Electronics glass and advanced optics products | 1,215 | 1,199 | |||||||||||||||||||||
| Automotive products | 441 | 426 | |||||||||||||||||||||
| Polycrystalline silicon and solar products | 370 | 206 | |||||||||||||||||||||
| Life Sciences products | 228 | 228 | |||||||||||||||||||||
| All other products | 44 | 38 | |||||||||||||||||||||
| Total revenue | $ | 4,144 | $ | 3,452 |
Customer Deposits
As of March 31, 2026 and December 31, 2025, Corning had customer deposits of approximately $1.3 billion and $1.5 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 three months ended March 31, 2026 and 2025, customer deposits recognized were $186 million and $62 million, respectively. The increase in customer deposits recognized during the three months ended March 31, 2026 as compared to the prior year is primarily due to revenue recognized for a contract for which no further performance obligations remained.
Refer to Note 5 (Other Assets and Other Liabilities) for additional information.
Deferred Revenue
As of March 31, 2026 and December 31, 2025, Corning had deferred revenue of approximately $737 million and $775 million, respectively. Deferred revenue was primarily related to the performance obligations of non-refundable consideration previously received by Hemlock Semiconductor Group, a business within our Solar segment, 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. For the three months ended March 31, 2026 and 2025, deferred revenue recognized was $45 million and $39 million, respectively.
Refer to Note 5 (Other Assets and Other Liabilities) for additional information.
3. Inventories
Inventories consisted of the following (in millions):
| March 31, 2026 | December 31, 2025 | ||||||||||
| Finished goods | $ | 1,420 | $ | 1,383 | |||||||
| Work in process | 697 | 618 | |||||||||
| Raw materials and accessories | 627 | 564 | |||||||||
| Supplies and packing materials | 535 | 512 | |||||||||
| Inventories | $ | 3,279 | $ | 3,077 |
4. Leases
Recently commenced leases
During the first quarter of 2026, the Company commenced and recognized $149 million of right-of use assets and lease liabilities under various leases for equipment placed in service within the solar manufacturing facility in Hemlock, Michigan. These leases were classified as finance leases, with lease terms ranging from five to eight years. Related to these assets, the Company recognized $49 million in Advanced Manufacturing Investment Credits under Section 48D of the Internal Revenue Code, as amended under the One Big Beautiful Bill Act, (“48D credits”) which reduced the carrying value of these right-of-use assets.
Leases not yet commenced
The Company has entered into various leases that have not yet commenced in an aggregate amount of approximately $413 million as of March 31, 2026, on an undiscounted basis, primarily for production-related equipment associated with the solar manufacturing facility in Hemlock, Michigan. The leases are expected to commence in 2026 with lease terms ranging from five to 16 years. The leases are expected to be classified as finance leases and the amount of right-of-use assets and lease liabilities will be determined and recorded upon lease commencement. Once placed in service, the Company will reduce the amount of right-of-use assets by any 48D credits, which are estimated to be approximately $80 million.
5. Other Assets and Other Liabilities
Other assets consisted of the following (in millions):
| March 31, 2026 | December 31, 2025 | ||||||||||
| Current assets: | |||||||||||
| Derivative instruments (Note 9) | $ | 526 | $ | 533 | |||||||
| Government incentives | 452 | 163 | |||||||||
| Other current assets | 838 | 858 | |||||||||
| Other current assets | $ | 1,816 | $ | 1,554 | |||||||
| Non-current assets: | |||||||||||
| Derivative instruments (Note 9) | $ | 337 | $ | 272 | |||||||
| Government incentives | 134 | 330 | |||||||||
| South Korean tax deposits (Note 11) | 135 | 248 | |||||||||
| Operating leases | 856 | 860 | |||||||||
| Investments | 488 | 512 | |||||||||
| Other non-current assets | 312 | 332 | |||||||||
| Other assets | $ | 2,262 | $ | 2,554 |
Other liabilities consisted of the following (in millions):
| March 31, 2026 | December 31, 2025 | ||||||||||
| Current liabilities: | |||||||||||
| Wages and employee benefits | $ | 529 | $ | 866 | |||||||
| Income taxes | 93 | 98 | |||||||||
| Derivative instruments (Note 9) | 174 | 159 | |||||||||
| Deferred revenue (Note 2) | 231 | 226 | |||||||||
| Customer deposits (Note 2) | 183 | 160 | |||||||||
| Short-term operating leases | 99 | 97 | |||||||||
| Other current liabilities | 1,101 | 1,239 | |||||||||
| Other accrued liabilities | $ | 2,410 | $ | 2,845 | |||||||
| Non-current liabilities: | |||||||||||
| Defined benefit pension plan liabilities | $ | 592 | $ | 587 | |||||||
| Derivative instruments (Note 9) | 370 | 307 | |||||||||
| Deferred revenue (Note 2) | 506 | 549 | |||||||||
| Customer deposits (Note 2) | 1,136 | 1,335 | |||||||||
| Contingent consideration | 155 | 136 | |||||||||
| Deferred tax liabilities | 121 | 149 | |||||||||
| Long-term operating leases | 852 | 846 | |||||||||
| Other non-current liabilities | 1,227 | 1,188 | |||||||||
| Other liabilities | $ | 4,959 | $ | 5,097 |
6. Debt
Based on borrowing rates currently available to us for loans with similar terms and maturities, the fair value of long-term debt was $7.3 billion compared to recorded book values of $7.7 billion and $7.6 billion as of March 31, 2026 and December 31, 2025, 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.
The Company maintains a revolving credit facility (the “Revolving Credit Facility”), which provides a committed $1.5 billion unsecured multi-currency line of credit and expires in 2030. As of March 31, 2026, there were no outstanding amounts under the Revolving Credit Facility.
Certain of Corning’s subsidiaries are the obligors to Chinese yuan-denominated unsecured variable rate loan facilities, whose proceeds are used for capital investment and related corporate purposes. During the three months ended March 31, 2026, the Company entered into new Chinese yuan-denominated variable rate loan facilities and incurred $427 million in short-term borrowings under these facilities. As of March 31, 2026, the amount outstanding under these facilities totaled $812 million, of which $754 million is due within one year. These facilities had variable interest rates ranging from 2.2% to 2.9%, respectively, and maturities ranging from 2026 to 2032. The unused capacity as of March 31, 2026 was not material. The amount outstanding under these facilities as of December 31, 2025 totaled $384 million.
7. Employee Retirement Plans
The following table presents the components of net periodic pension and postretirement benefit expense (income) for employee retirement plans, which other than the service cost component is recorded in other expense, net in the consolidated statements of income (in millions):
| Pension benefits | Postretirement benefits | ||||||||||||||||||||||||||||||||||||||||||||||
| Three months ended March 31, | Three months ended March 31, | ||||||||||||||||||||||||||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||||||||||||||||||||||||||
| Service cost | $ | 26 | $ | 24 | $ | 1 | $ | 1 | |||||||||||||||||||||||||||||||||||||||
| Interest cost | 45 | 47 | 3 | 4 | |||||||||||||||||||||||||||||||||||||||||||
| Expected return on plan assets | (52) | (50) | |||||||||||||||||||||||||||||||||||||||||||||
| Amortization of actuarial net gain | (6) | (6) | |||||||||||||||||||||||||||||||||||||||||||||
| Amortization of prior service cost (credit) | 1 | 1 | (1) | (2) | |||||||||||||||||||||||||||||||||||||||||||
| Total pension and postretirement benefit expense (income) | $ | 20 | $ | 22 | $ | (3) | $ | (3) |
8. Commitments and Contingencies
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.
Environmental Claims
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 March 31, 2026 and December 31, 2025, Corning had accrued approximately $87 million and $89 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.
9. Financial Instruments
The following table summarizes the notional amounts and respective fair values of Corning’s derivative financial instruments on a gross basis (in millions):
| March 31, 2026 | December 31, 2025 | ||||||||||||||||||||||||||||||||||
| 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) | $ | 993 | $ | 77 | $ | 1,116 | $ | 95 | $ | (19) | |||||||||||||||||||||||||
| Derivatives not designated as hedging instruments: | |||||||||||||||||||||||||||||||||||
| Foreign exchange contracts | 3,289 | 17 | $ | (33) | 4,333 | 29 | (29) | ||||||||||||||||||||||||||||
| Translated earnings contracts (4) | 13,104 | 769 | (314) | 10,816 | 681 | (224) | |||||||||||||||||||||||||||||
| Cross currency swap contracts | 1,092 | (197) | 798 | (194) | |||||||||||||||||||||||||||||||
| Total derivatives | $ | 18,478 | $ | 863 | $ | (544) | $ | 17,063 | $ | 805 | $ | (466) | |||||||||||||||||||||||
| Current | $ | 526 | $ | (174) | $ | 533 | $ | (159) | |||||||||||||||||||||||||||
| Non-current | 337 | (370) | 272 | (307) | |||||||||||||||||||||||||||||||
| Total derivatives | $ | 863 | $ | (544) | $ | 805 | $ | (466) |
(1)All of the Company’s derivative contracts are measured at fair value using Level 2 within the fair value hierarchy, primarily based on quoted prices in active markets for similar instruments. Derivative assets are presented in other current assets or other assets on the consolidated balance sheets. Derivative liabilities are presented in other accrued liabilities or other liabilities on the consolidated balance sheets.
(2)The amounts as of March 31, 2026 and December 31, 2025 do not include total notional amounts of €750 million ($859 million equivalent) and €750 million ($881 million equivalent), respectively, of euro-denominated debt, which is a non-derivative financial instrument designated as a net investment hedge.
(3)As of March 31, 2026, derivatives designated as hedging instruments include foreign exchange cash flow hedges and net investment hedges with gross notional amounts of $993 million. As of December 31, 2025, derivatives designated as hedging instruments include foreign exchange cash flow hedges and net investment hedges with gross notional amounts of $1,116 million and fair value hedges of leased precious metals with a gross notional amount of 4,090 troy ounces. Fair value liabilities include designated derivatives pertaining to precious metals lease contracts in the amount of $16 million as of December 31, 2025.
(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 March 31, 2026 and December 31, 2025, the Company has $218 million and $229 million, respectively, recorded in other accrued liabilities and $97 million recorded in other liabilities as of March 31, 2026 on the consolidated balance sheets.
The following table summarizes the total gross notional amount for translated earnings contracts (in millions):
| March 31, 2026 | December 31, 2025 | ||||||||||
| Forward contracts: | |||||||||||
| Japanese yen-denominated | $ | 1,791 | $ | 1,712 | |||||||
| South Korean won-denominated | 2,634 | 2,413 | |||||||||
| Chinese yuan-denominated | 1,582 | 1,179 | |||||||||
| New Taiwan dollar-denominated | 903 | 483 | |||||||||
| Mexican peso-denominated | 2,191 | 1,264 | |||||||||
| Euro-denominated | 1,557 | 1,595 | |||||||||
| Option contracts: | |||||||||||
| Japanese yen-denominated | 2,413 | 2,170 | |||||||||
| South Korean won-denominated | 33 | ||||||||||
| Total gross notional amount for translated earnings contracts | $ | 13,104 | $ | 10,816 |
The following tables summarize the effect on the consolidated statements of income relating to Corning’s derivative financial instruments (in millions). The accumulated gain or loss included in accumulated other comprehensive loss on the consolidated balance sheets as of March 31, 2026 and December 31, 2025 is a gain of $53 million and $37 million, respectively.
| Three months ended March 31, | |||||||||||||||||||||||||||||
| Gain recognized in other comprehensive income (OCI) (1) | Location of gain (loss) reclassified from accumulated OCI into income effective (ineffective) | Gain (loss) reclassified from accumulated OCI into income | |||||||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||||||||
| Hedging relationships for cash flow, net investment and fair value hedges: | |||||||||||||||||||||||||||||
| Foreign exchange and precious metals lease contracts | $ | 30 | $ | — | Cost of sales | $ | 13 | $ | (7) | ||||||||||||||||||||
| Other expense, net | 2 | 1 | |||||||||||||||||||||||||||
| Total designated | $ | 30 | $ | — | $ | 15 | $ | (6) |
(1)Amount includes a gain of $22 million and a loss of $33 million during the three months ended March 31, 2026 and 2025, respectively, relating to non-derivative financial instruments designated as net investment hedges.
| (Loss) gain recognized in income | Location of (loss) gain recognized in income | ||||||||||||||||||||||||||||
| Three months ended March 31, | |||||||||||||||||||||||||||||
| Undesignated derivatives | 2026 | 2025 | |||||||||||||||||||||||||||
| Foreign exchange contracts | $ | (35) | $ | 38 | Other expense, net | ||||||||||||||||||||||||
| Translated earnings contracts (1) | (16) | (101) | Translated earnings contract loss, net | ||||||||||||||||||||||||||
| Cross currency swap contracts | (11) | Other expense, net | |||||||||||||||||||||||||||
| Total undesignated | $ | (62) | $ | (63) |
(1)For the three months ended March 31, 2026 and 2025, amount includes non-cash pre-tax realized losses of $90 million and $40 million, respectively, related to the premiums of expired option contracts.
10. Share-Based Compensation
Total share-based compensation expense was $115 million and $54 million for the three months ended March 31, 2026 and 2025, respectively. The income tax benefit realized from share-based compensation for the three months ended March 31, 2026 and 2025 was $34 million and $8 million, respectively.
The increase in share‑based compensation expense and the related income tax benefit for the three months ended March 31, 2026 was primarily driven by an increase in the Company’s stock price year over year, which increased the fair value of performance-based restricted stock units and the related income tax benefits realized for awards that vest during the period.
11. Income Taxes
The following table presents the provision for income taxes and the related effective tax rate (in millions, except percentages):
| Three months ended March 31, | |||||||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||||||
| Provision for income taxes | $ | (121) | $ | (55) | |||||||||||||||||||
| Effective tax rate | 22.9 | % | 22.9 | % |
For the three months ended March 31, 2026, the effective tax rate differed from the United States (“U.S.”) statutory rate of 21%, primarily due to the impact of an unfavorable tax ruling in South Korea partially offset by changes in reserves, adjustments to share-based compensation, government incentives and foreign-derived deduction eligible income.
For the three months ended March 31, 2025, the effective tax rate differed from the U.S. statutory rate of 21%, primarily due to certain pre-tax losses with no corresponding expected tax benefit, partially offset by foreign-derived intangible income and non-taxable items.
The Internal Revenue Service (“IRS”) is currently conducting examinations of the Company’s U.S. federal income tax returns for the years 2015 through 2018 and 2019 through 2020, including the one-time transition tax enacted under the Tax Cuts and Jobs Act of 2017. If challenged, Corning believes that it is more likely than not to sustain its position relating to these matters. However, if the Company is ultimately unsuccessful in defending its position, the impact could be material to its consolidated financial statements.
Corning Precision Materials, a South Korean subsidiary, is currently appealing certain tax assessments and tax refund claims for tax years 2013 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. On February 11, 2026, the Company received a final unfavorable ruling relating to a tax dispute for the tax years 2010 through 2012. As a result, the Company has reduced its receivable balance by $92 million through a noncash charge to the income tax provision in the first quarter of 2026. In addition, the Company has established an immaterial reserve against the remaining amount on deposit related to the tax year 2013. Corning continues to believe that it is more likely than not that the Company will prevail in the appeals process relating to the remaining matters. The non-current receivable balance was $135 million and $248 million as of March 31, 2026 and December 31, 2025, respectively, for the amount on deposit with the South Korean government.
Certain foreign subsidiaries in Luxembourg were subject to tax disputes for the tax years 2015 through 2018. While we maintained a more likely than not position with respect to these matters, on March 12, 2026, the Company received a final unfavorable ruling. As a result, the Company reduced deferred tax assets associated with net operating loss carryforwards by $879 million and reduced the related valuation allowance by a corresponding amount. Because the reduction in deferred tax assets was offset by a corresponding reduction in the related valuation allowance, the final ruling had no impact on the Company’s income tax provision.
12. Shareholders’ Equity
Common Stock Dividends
On February 11, 2026, Corning's Board of Directors declared a quarterly dividend of $0.28 per share of common stock, which was paid on March 30, 2026.
On April 30, 2026, Corning’s Board of Directors declared a quarterly dividend of $0.28 per share of common stock, which will be payable on June 29, 2026.
Share Repurchase Program
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 March 31, 2026, approximately $3.0 billion remains available under the Company’s 2019 Authorization.
During the three months ended March 31, 2026, no shares were repurchased. During the three months ended March 31, 2025, the company repurchased 2.1 million shares, for approximately $100 million.
Accumulated Other Comprehensive Loss
For the three months ended March 31, 2026 and 2025, the change in accumulated other comprehensive loss was primarily related to foreign currency translation adjustments.
The following table presents the changes in foreign currency translation adjustments component of accumulated other comprehensive loss, including the proportionate share of equity method affiliates’ accumulated other comprehensive loss (in millions):
| Three months ended March 31, | |||||||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||||||
| Beginning balance | $ | (2,147) | $ | (2,530) | |||||||||||||||||||
| (Loss) gain on foreign currency translation (1) | (163) | 154 | |||||||||||||||||||||
| Equity method affiliates (1) | (8) | 7 | |||||||||||||||||||||
| Net current-period other comprehensive (loss) income, net of tax | (171) | 161 | |||||||||||||||||||||
| Ending balance | $ | (2,318) | $ | (2,369) |
(1)Amounts are after tax. Tax effects are not significant.
13. Earnings Per Common Share
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):
| Three months ended March 31, | |||||||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||||||
| Net income attributable to Corning Incorporated | $ | 371 | $ | 157 | |||||||||||||||||||
| Weighted-average common shares outstanding – basic | 857 | 855 | |||||||||||||||||||||
| Effect of dilutive securities: | |||||||||||||||||||||||
| Stock options and other awards | 14 | 11 | |||||||||||||||||||||
| Weighted-average common shares outstanding – diluted | 871 | 866 | |||||||||||||||||||||
| Basic earnings per common share | $ | 0.43 | $ | 0.18 | |||||||||||||||||||
| Diluted earnings per common share | $ | 0.43 | $ | 0.18 | |||||||||||||||||||
| Anti-dilutive potential shares excluded from diluted earnings per common share: | |||||||||||||||||||||||
| Stock options and other awards | 1 | 2 |
14. Reportable Segments
Effective in the first quarter of fiscal 2026, the Company revised its segment structure. This revision corresponds with changes in how our businesses are managed, which align with how our chief operating decision maker (“CODM”) reviews performance and allocates resources. As a result, the Company began managing its Display and Specialty Materials businesses as a single operating segment, referred to as Glass Innovations, and its Hemlock Semiconductor Group, solar wafer, and solar module businesses as a single operating segment, referred to as Solar. In addition, the Company’s Life Sciences business does not meet the quantitative threshold for separate reporting and therefore is no longer reported as a reportable segment and is included together with all other businesses that do not meet the quantitative threshold for separate reporting within Life Sciences and Emerging Growth Businesses. Optical Communications and Automotive remain unchanged and continue to be reported as separate reportable segments.
As a result of the above changes, the Company has determined it has four 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; the enterprise network group consists primarily of optical-based communication networks, including hyperscale data centers, sold to businesses, governments and individuals for their own use.
-
Glass Innovations** – utilizes proprietary melting, precision forming, strengthening, and finishing processes to create advanced flat glass substrates for LCD and OLED displays and cover materials for mobile consumer electronics; and provides material formulations and optical fabrication for specialty glass, glass ceramic, fluoride crystal, and other precision materials and components for semiconductor, aerospace and defense, telecommunications, commercial, and industrial applications.
-
Automotive** – manufactures ceramic substrates and filter products for emissions control systems in mobile applications; as well as technical glass and optic products and solutions for the interior and exterior of vehicles.
-
Solar** – manufactures silicon materials and products for semiconductor and solar applications, including hyper-pure polysilicon produced by Hemlock Semiconductor Group, solar wafers, and solar modules. The segment’s products serve customers across the semiconductor and solar markets globally from a manufacturing footprint in the United States.
All other businesses that do not meet the quantitative threshold for separate reporting have been grouped as Life Sciences and Emerging Growth Businesses.
These changes reflect the Company’s internal management structure and align with the information regularly reviewed by the CODM.
The 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, 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 Life Sciences 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 Optical Communications, Glass Innovations and Automotive segments to exclude the impact on segment sales and segment net income from the Japanese yen, South Korean won, Chinese yuan, New Taiwan dollar, Mexican peso and euro, as applicable to the segment. The Company believes that the use of constant-currency reporting allows management to understand our results without the volatility of currency fluctuation, analyze underlying trends in the businesses and establish operational goals and forecasts. The most significant constant-currency adjustment relates to the Japanese yen exposure within the Glass Innovations segment.
The constant-currency rates established for core performance measures are long-term management-determined rates, which are closely aligned with the Company’s hedging instrument rates. These hedging instruments may include, but are not limited to, foreign exchange forward or option contracts, cross-currency swaps and foreign-denominated debt.
Constant-currency rates used are as follows and are applied to the respective periods presented and to all foreign exchange exposures during the period, even though the Company may be less than 100% hedged:
| Currency | Japanese yen | South Korean won | Chinese yuan | New Taiwan dollar | Mexican peso | Euro | ||||||||||||||
| Rate | ¥120 | ₩1,250 | ¥6.9 | NT$31 | MX$21 | €0.88 |
In addition, certain income and expenses are excluded from segment net income and included in the unallocated amounts in the reconciliation of reportable segment net income to consolidated 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 foreign 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 items which do not reflect the ongoing operating results of the segment. 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 to consolidated net income. Segment net income may not be consistent with measures used by other companies.
The following provides selected segment information, with the comparative prior period recast for the changes in segment reporting as described above.
Segment information (in millions):
| Optical Communications | Glass Innovations | Automotive | Solar | Total Reportable Segments | Life Sciences and Emerging Growth Businesses | Total | |||||||||||||||||||||||||||||||||||
| Three months ended March 31, 2026 | |||||||||||||||||||||||||||||||||||||||||
| Segment net sales | $ | 1,846 | $ | 1,420 | $ | 437 | $ | 370 | $ | 4,073 | $ | 272 | $ | 4,345 | |||||||||||||||||||||||||||
| Less: | |||||||||||||||||||||||||||||||||||||||||
| Research, development and engineering expenses (1) | 85 | 84 | 36 | 2 | 207 | 28 | 235 | ||||||||||||||||||||||||||||||||||
| Depreciation (2) | 72 | 150 | 40 | 44 | 306 | 26 | 332 | ||||||||||||||||||||||||||||||||||
| Other segment items (3) | 1,192 | 777 | 273 | 311 | 2,553 | 249 | 2,802 | ||||||||||||||||||||||||||||||||||
| Income tax provision (benefit) (4) | 110 | 85 | 18 | 6 | 219 | (7) | 212 | ||||||||||||||||||||||||||||||||||
| Segment net income (loss) | $ | 387 | $ | 324 | $ | 70 | $ | 7 | $ | 788 | $ | (24) | $ | 764 | |||||||||||||||||||||||||||
| Capital expenditures | $ | 148 | $ | 150 | $ | 15 | $ | 26 | $ | 339 | $ | 5 | $ | 344 | |||||||||||||||||||||||||||
| Three months ended March 31, 2025 | |||||||||||||||||||||||||||||||||||||||||
| Segment net sales | $ | 1,355 | $ | 1,406 | $ | 440 | $ | 206 | $ | 3,407 | $ | 272 | $ | 3,679 | |||||||||||||||||||||||||||
| Less: | |||||||||||||||||||||||||||||||||||||||||
| Research, development and engineering expenses (1) | 77 | 92 | 35 | 2 | 206 | 30 | 236 | ||||||||||||||||||||||||||||||||||
| Depreciation (2) | 65 | 137 | 41 | 17 | 260 | 29 | 289 | ||||||||||||||||||||||||||||||||||
| Other segment items (3) | 954 | 776 | 278 | 149 | 2,157 | 252 | 2,409 | ||||||||||||||||||||||||||||||||||
| Income tax provision (benefit) (4) | 58 | 84 | 18 | 11 | 171 | (9) | 162 | ||||||||||||||||||||||||||||||||||
| Segment net income (loss) | $ | 201 | $ | 317 | $ | 68 | $ | 27 | $ | 613 | $ | (30) | $ | 583 | |||||||||||||||||||||||||||
| Capital expenditures | $ | 97 | $ | 77 | $ | 12 | $ | 45 | $ | 231 | $ | 8 | $ | 239 | |||||||||||||||||||||||||||
(1)Research, development and engineering expenses include direct project spending that is identifiable to a segment.
(2)Depreciation expense includes an allocation of depreciation of corporate property not specifically identifiable to a segment.
(3)Other segment items primarily include 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%.
Segment information, continued (in millions):
| Optical Communications | Glass Innovations | Automotive | Solar | Total Reportable Segments | Life Sciences and Emerging Growth Businesses | Total | |||||||||||||||||||||||||||||||||||
| March 31, 2026 | |||||||||||||||||||||||||||||||||||||||||
| Investment in affiliated companies | $ | 5 | $ | 111 | $ | — | $ | — | $ | 116 | $ | 168 | $ | 284 | |||||||||||||||||||||||||||
| Segment assets (1) | $ | 4,313 | $ | 9,110 | $ | 2,394 | $ | 2,970 | $ | 18,787 | $ | 1,423 | $ | 20,210 | |||||||||||||||||||||||||||
| December 31, 2025 | |||||||||||||||||||||||||||||||||||||||||
| Investment in affiliated companies | $ | 5 | $ | 114 | $ | — | $ | — | $ | 119 | $ | 183 | $ | 302 | |||||||||||||||||||||||||||
| Segment assets (1) | $ | 4,029 | $ | 9,236 | $ | 2,395 | $ | 2,734 | $ | 18,394 | $ | 1,470 | $ | 19,864 |
(1)Segment assets include inventory, accounts receivable, property, plant and equipment, net of accumulated depreciation and associated equity companies.
The following table presents a reconciliation of net sales of reportable segments to consolidated net sales (in millions):
| Three months ended March 31, | |||||||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||||||
| Net sales of reportable segments | $ | 4,073 | $ | 3,407 | |||||||||||||||||||
| Net sales of Life Sciences and Emerging Growth Businesses | 272 | 272 | |||||||||||||||||||||
| Impact of constant-currency reporting (1) | (201) | (227) | |||||||||||||||||||||
| Consolidated net sales | $ | 4,144 | $ | 3,452 |
(1)Amount primarily represents the impact of foreign currency adjustments in the Glass Innovations segment.
The following table presents a reconciliation of net income of reportable segments to consolidated net income (in millions):
| Three months ended March 31, | |||||||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||||||
| Net income of reportable segments | $ | 788 | $ | 613 | |||||||||||||||||||
| Net loss of Life Sciences and Emerging Growth Businesses | (24) | (30) | |||||||||||||||||||||
| Unallocated amounts: | |||||||||||||||||||||||
| Impact of constant-currency reporting | (180) | (180) | |||||||||||||||||||||
| Translated earnings contract loss, net | (16) | (101) | |||||||||||||||||||||
| Translation gain (loss) on foreign denominated debt, net | 6 | (43) | |||||||||||||||||||||
| Research, development, and engineering expenses | (43) | (34) | |||||||||||||||||||||
| Amortization of intangibles | (23) | (28) | |||||||||||||||||||||
| Interest expense, net | (61) | (63) | |||||||||||||||||||||
| Income tax benefit | 91 | 107 | |||||||||||||||||||||
| Restructuring, impairment and other charges and credits | (44) | 7 | |||||||||||||||||||||
| Other corporate items | (86) | (63) | |||||||||||||||||||||
| Consolidated net income | $ | 408 | $ | 185 |
Next: Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations