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What changed in Corning Inc.'s 10-K — 2023 vs 2024

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Paragraph-level year-over-year comparison of Corning Inc.'s 2023 and 2024 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2024 report.

+248 added−242 removedSource: 10-K (2025-02-13) vs 10-K (2024-02-12)

Top changes in Corning Inc.'s 2024 10-K

248 paragraphs added · 242 removed · 188 edited across 8 sections

Item 1. Business

Business — how the company describes what it does

66 edited+19 added−21 removed46 unchanged
Biggest changeImportant issued patents in our reportable segments include the following: • Optical Communications: patents relating to (i) multimode and single mode optical fiber products including low-loss optical fiber, large effective area optical fiber and other high data rate optical fiber, and processes and equipment for manufacturing optical fiber, including methods for making optical fiber preforms and methods for drawing, cooling and winding optical fiber; (ii) optical fiber ribbons and methods for making such ribbon, indoor and outdoor fiber optic cable products and methods for making and installing optical fiber cable; (iii) optical fiber connectors and factory-terminated assemblies, hardware, termination and storage and associated methods of manufacture; and (iv) optical fiber and hybrid fiber-coax wireless communication systems. • Display Technologies: patents relating to glass compositions and methods for the use and manufacture of glass substrates for display applications. • Specialty Materials: patents relating to protective cover glass materials and coatings, ophthalmic glasses and polarizing dyes and semiconductor/microlithography optics and blanks, metrology instrumentation and laser/precision optics, glass polarizers, specialty fiber and refractories. • Environmental Technologies: patents relating to cellular ceramic honeycomb products, together with ceramic batch and binder system compositions, honeycomb extrusion and firing processes, and honeycomb extrusion dies and equipment for the high-volume, low-cost manufacture of such products. • Life Sciences: patents relating to methods and apparatus for the manufacture and use of scientific laboratory equipment including multiwell plates and cell culture products, as well as equipment and processes for cell and gene therapy research. 7 Table of Contents The following table presents the approximate number of patents granted to our reportable segments: Number of patents worldwide U.S. patents Important U.S. patents expiring between 2024 and 2026 Optical Communications 4,824 2,213 31 Display Technologies 1,135 154 9 Specialty Materials 2,837 866 14 Environmental Technologies 936 346 9 Life Sciences 564 158 4 Many of our patents are used in operations or are licensed for use by others, and we are licensed to use patents owned by others.
Biggest changeImportant U.S. issued patents in our reportable segments include the following: • Optical Communications: patents relating to (i) multimode and single mode optical fiber products including low-loss optical fiber, large effective area optical fiber and other high data rate optical fiber, and processes and equipment for manufacturing optical fiber, including methods for making optical fiber preforms and methods for drawing, cooling and winding optical fiber; (ii) optical fiber ribbons and methods for making such ribbon, indoor and outdoor fiber optic cable products and methods for making and installing optical fiber cable; (iii) optical fiber connectors and factory-terminated assemblies, hardware, termination and storage and associated methods of manufacture; and (iv) optical fiber and hybrid fiber-coax wireless communication systems. • Display Technologies: patents relating to glass compositions and methods for the use and manufacture of glass substrates for display applications. • Specialty Materials: patents relating to protective cover glass materials and coatings, ophthalmic glasses and polarizing dyes and semiconductor/microlithography optics and blanks, metrology instrumentation and laser/precision optics, glass polarizers, specialty fiber and refractories. • Environmental Technologies: patents relating to cellular ceramic honeycomb products, together with ceramic batch and binder system compositions, honeycomb extrusion and firing processes, and honeycomb extrusion dies and equipment for the high-volume, low-cost manufacture of such products. • Life Sciences: patents relating to methods and apparatus for the manufacture and use of scientific laboratory equipment including multiwell plates and cell culture products, as well as equipment and processes for cell and gene therapy research.
Refer to the material under the heading “Patents and Trademarks” for more information. The Life Sciences segment represented 7% of Corning’s total segment net sales in 2023. Hemlock and Emerging Growth Businesses All other businesses that do not meet the quantitative threshold for separate reporting have been grouped as Hemlock and Emerging Growth Businesses.
Refer to the material under the heading “Patents and Trademarks” for more information. The Life Sciences segment represented 7% of Corning’s total segment net sales in 2024. Hemlock and Emerging Growth Businesses All other businesses that do not meet the quantitative threshold for separate reporting have been grouped as Hemlock and Emerging Growth Businesses.
In short, we believe that how we do things is as important as what we do. We measure how we live our Values through our annual “Voice to Action” workplace culture survey. In 2023, we had an 85% response rate with survey participation worldwide.
In short, we believe that how we do things is as important as what we do. We measure how we live our Values through our annual “Voice to Action” Workplace Culture Survey. In 2024, we had an 85% response rate with survey participation worldwide.
However, any future difficulty in obtaining sufficient and timely delivery, or inflationary pricing, of components and/or raw materials could result in lost revenue due to delays or reductions in product shipments, or reductions in gross margin. Patents and Trademarks Inventions by members of our research and engineering staff continue to be important to our growth.
However, any future difficulty in obtaining sufficient and timely delivery, or inflationary pricing, of components and/or raw materials could result in lost revenue due to delays or reductions in product shipments, or reductions in gross margin. 6 Table of Contents Patents and Trademarks Inventions by members of our research and engineering staff continue to be important to our growth.
Corning also faces competition from large distributors that have pursued backward integration or introduced private label products. 6 Table of Contents Raw Materials Our manufacturing processes and products require access to uninterrupted power sources, significant quantities of industrial water, certain precious metals and various batch materials.
Corning also faces competition from large distributors that have pursued backward integration or introduced private label products. Raw Materials Our manufacturing processes and products require access to uninterrupted power sources, significant quantities of industrial water, certain precious metals and various batch materials.
The Optical Communications segment represented 30% of Corning’s total segment net sales in 2023. Display Technologies Segment The Display Technologies segment manufactures glass substrates for flat panel displays, including liquid crystal displays (“LCDs”) and organic light-emitting diodes (“OLEDs”) that are used primarily in televisions, notebook computers, desktop monitors, tablets and handheld devices.
The Optical Communications segment represented 32% of Corning’s total segment net sales in 2024. Display Technologies Segment The Display Technologies segment manufactures glass substrates for flat panel displays, including liquid crystal displays (“LCDs”) and organic light-emitting diodes (“OLEDs”) that are used primarily in televisions, notebook computers, desktop monitors, tablets and handheld devices.
Corning also promotes healthy behaviors with its employees including flu and COVID vaccinations and has introduced global programs emphasizing mental health and wellness programs. 9 Table of Contents Executive Officers of the Registrant Jaymin Amin Senior Vice President and Chief Technology Officer Dr. Amin joined Corning in 1997 as a senior research scientist.
Corning also promotes healthy behaviors with its employees and has introduced global programs emphasizing mental health and wellness programs. 9 Table of Contents Executive Officers of the Registrant Jaymin Amin Senior Vice President and Chief Technology Officer Dr. Amin joined Corning in 1997 as a senior research scientist.
Each of our 49,800 full- and part-time employees in 44 countries make an important contribution, whether in one of our manufacturing or processing facilities, research labs, sales offices or other facilities. Approximately 60% of all employees are in production and maintenance roles and more than 60% of all employees are represented by a union, works council or other representative group.
Each of our 56,300 full- and part-time employees in 44 countries make an important contribution, whether in one of our manufacturing or processing facilities, research labs, sales offices or other facilities. Approximately 59% of all employees are in production and maintenance roles and more than 60% of all employees are represented by a union, works council or other representative group.
Schlesinger Executive Vice President and Chief Financial Officer Mr. Schlesinger joined Corning in 2013 as senior vice president and chief financial officer of Corning Optical Communications. He was appointed vice president and corporate controller in September 2015 and principal accounting officer in December 2015. He was named senior vice president in 2019.
Schlesinger joined Corning in 2013 as senior vice president and chief financial officer of Corning Optical Communications. He was appointed vice president and corporate controller in September 2015 and principal accounting officer in December 2015. He was named senior vice president in 2019. In 2022, he was appointed executive vice president and chief financial officer. Prior to joining Corning, Mr.
The segment has a growing portfolio of patents relating to its products, technologies and manufacturing processes. Brand recognition and loyalty, through well-known trademarks, are important to the segment. Refer to the material under the heading “Patents and Trademarks” for more information.
Patent protection is important to the segment’s operations. The segment has a growing portfolio of patents relating to its products, technologies and manufacturing processes. Brand recognition and loyalty, through well-known trademarks, are important to the segment. Refer to the material under the heading “Patents and Trademarks” for more information.
In 2023, we were granted about 520 patents in the U.S. and over 1,510 patents in countries outside the U.S. Each business segment possesses a patent portfolio that provides certain competitive advantages in protecting our innovations. We have historically enforced, and will continue to enforce, our intellectual property rights.
In 2024, we were granted about 490 patents in the U.S. and over 1,240 patents in countries outside the U.S. Each business segment possesses a patent portfolio that provides certain competitive advantages in protecting our innovations. We have historically enforced, and will continue to enforce, our intellectual property rights.
Cabling operations are in North Carolina, Poland and smaller regional locations. Our manufacturing operations for hardware and equipment products are in Texas, Mexico, Brazil, Germany, Poland and China. Patent protection is important to the segment’s operations. The segment has an extensive portfolio of patents relating to its products, technologies and manufacturing processes.
Our manufacturing operations for hardware and equipment products are in Texas, Mexico, Brazil, Germany, Poland and China. Patent protection is important to the segment’s operations. The segment has an extensive portfolio of patents relating to its products, technologies and manufacturing processes.
Document Availability A copy of Corning’s 2023 Annual Report on Form 10-K filed with the United States Securities and Exchange Commission (the “SEC”) is available upon written request to Corporate Secretary, Corning Incorporated, One Riverfront Plaza, Corning, NY 14831.
Age 52. 11 Table of Contents Document Availability A copy of Corning’s 2024 Annual Report on Form 10-K filed with the United States Securities and Exchange Commission (the “SEC”) is available upon written request to Corporate Secretary, Corning Incorporated, One Riverfront Plaza, Corning, NY 14831.
At the end of 2023, we owned about 12,975 unexpired patents in various countries, of which about 4,660 were U.S. patents. Between 2024 and 2026, approximately 730, or 6%, of these worldwide patents will expire, while at the same time we intend to seek patents protecting our newer innovations.
At the end of 2024, we owned about 12,000 unexpired patents in various countries, of which about 4,510 were U.S. patents. Between 2025 and 2027, approximately 730, or 6%, of these worldwide patents will expire, while at the same time we intend to seek patents protecting our newer innovations.
We also manufacture ultra-flat, ultra-thin glass wafers and substrates for a variety of applications including augmented reality, advanced semiconductor packaging, 3D sensing and more. These products are manufactured in New York, France and China. Other specialty glass products include tinted sunglasses and radiation shielding products that are made in France. Patent protection is important to the segment’s operations.
Our semiconductor optics products are manufactured in New York. We also manufacture ultra-flat, ultra-thin glass wafers and substrates for a variety of applications including augmented reality, advanced semiconductor packaging, 3D sensing and more. These products are manufactured in New York, France and China. Other specialty glass products include tinted sunglasses and radiation shielding products that are made in France.
Kammerud Senior Vice President and Chief Human Resources Officer Ms. Kammerud joined Corning in 2023 with more than 20 years of experience leading progressive HR functions and has deep expertise in people, technology, and change on a global scale and across multiple industries.
Kammerud joined Corning in 2023 with more than 20 years of experience leading progressive HR functions and has deep expertise in people, technology, and change on a global scale and across multiple industries.
This glass has been optimized for oxide thin-film transistor (“TFT”) backplanes, but enables a range of high-resolution applications from the top end of amorphous silicon (“s-Si”) TFT backplanes through low temperature poly-silicon (“LTPS”) backplanes, as well as other applications requiring precision glass; • Corning® Lotus™ NXT Glass, a high-performance display glass designed to withstand the harshest panel manufacturing process enabling highest-resolution displays in smaller and flexible devices; and • The world’s first Gen 10 and Gen 10.5 glass substrate sizes in support of improved efficiency in manufacturing large-sized displays.
This glass has been optimized for oxide thin-film transistor (“TFT”) backplanes, but enables a range of high-resolution applications from the top end of amorphous silicon (“s-Si”) TFT backplanes through low temperature poly-silicon (“LTPS”) backplanes, as well as other applications requiring precision glass; • Corning® Lotus™ NXT Glass, a high-performance display glass designed to withstand the harshest panel manufacturing process enabling highest-resolution displays in smaller and flexible devices; and • The world’s first Gen 10 and Gen 10.5 glass substrate sizes in support of improved efficiency in manufacturing large-sized displays. 3 Table of Contents We have display glass manufacturing operations in China, South Korea and Taiwan, and service our glass customers in all regions, utilizing our manufacturing facilities throughout Asia.
Life Sciences Segment As a leading developer, manufacturer and global supplier of laboratory products for over 105 years, the Life Sciences segment works with researchers and drug manufacturers seeking to drive innovation, increase efficiencies, reduce costs and compress timelines.
The Environmental Technologies segment represented 12% of Corning’s total segment net sales in 2024. Life Sciences Segment As a leading developer, manufacturer and global supplier of laboratory products for over 105 years, the Life Sciences segment works with researchers and drug manufacturers seeking to drive innovation, increase efficiencies, reduce costs and compress timelines.
The enterprise network group consists primarily of optical-based communication networks sold to businesses, governments and individuals for their own use. 2 Table of Contents Our carrier network product portfolio encompasses an array of optical fiber products, including Vascade® optical fibers for use in submarine networks; LEAF® optical fiber for long-haul, regional and metropolitan networks; SMF-28® ULL and TXF® fiber for more scalable long-haul and regional networks; SMF-28e+™ single-mode optical fiber providing additional transmission wavelengths in metropolitan and access networks and ClearCurve® ultra-bendable single-mode fiber for use in multiple-dwelling units and fiber-to-the-home applications.
Our carrier network product portfolio encompasses an array of optical fiber products, including Vascade® optical fibers for use in submarine networks; LEAF® optical fiber for long-haul, regional and metropolitan networks; SMF-28® ULL and TXF® fiber for more scalable long-haul and regional networks; SMF-28e+™ single-mode optical fiber providing additional transmission wavelengths in metropolitan and access networks and ClearCurve® ultra-bendable single-mode fiber for use in multiple-dwelling units and fiber-to-the-home applications.
Worldwide, we have about 8,370 patent applications in process, with about 2,130 in process in the U.S. Our patent portfolio will continue to provide a competitive advantage in protecting our innovations, although our competitors in each of our businesses are actively seeking patent protection as well.
Worldwide, we have about 5,880 patent applications in process, with about 1,780 in process in the U.S. Our patent portfolio will continue to provide a competitive advantage in protecting our innovation, although our competitors in each of our businesses are actively seeking patent protection as well.
The Display Technologies segment represented 26% of Corning’s total segment net sales in 2023. Specialty Materials Segment The Specialty Materials segment manufactures products that provide more than 150 material formulations for glass, glass ceramics and crystals, as well as precision metrology instruments and software to meet requirements for unique customer needs.
Specialty Materials Segment The Specialty Materials segment manufactures products that provide more than 150 material formulations for glass, glass ceramics and crystals, as well as precision metrology instruments and software to meet requirements for unique customer needs.
Our highly automated process yields glass substrates with a pristine surface and excellent thermal stability and dimensional uniformity – essential attributes in the production of large, high-performance display panels.
Our highly automated process yields glass substrates with a pristine surface and excellent thermal stability and dimensional uniformity – essential attributes in the production of large, high-performance display panels. Our fusion process is scalable and we believe it is the most cost-effective process for producing large size substrates.
Competition We compete with many large and varied manufacturers, both domestic and foreign. Some of these competitors are larger than we are, and some have broader product lines. We strive to maintain and improve our market position through technology and product innovation.
Some of these competitors are larger than we are, and some have broader product lines. We strive to maintain and improve our market position through technology and product innovation.
Verkleeren became vice president and general manager of the Pharmaceutical Technologies division. He was appointed senior vice president & general manager, Life Sciences Technologies in 2020. Age 53. Wendell P. Weeks Chairman and Chief Executive Officer Mr. Weeks joined Corning in 1983 in the finance group. He has held a variety of financial, business development, commercial and general management roles.
Verkleeren became vice president and general manager of the Pharmaceutical Technologies division. In 2020 he was appointed senior vice president & general manager, Life Sciences Technologies. He was appointed senior vice president, Emerging Innovations Group in 2024. Age 54. Wendell P. Weeks Chairman and Chief Executive Officer Mr. Weeks joined Corning in 1983 in the finance group.
He joined the Display Technologies division in 2005 as U.S. Controller. In 2007 he was appointed CFO, Corning Display Technologies Taiwan. In 2009 he was named director of Finance, Corning Display Technologies (“CDT”) and in 2010 was appointed division controller, CDT. Between 2012 and 2015, he served as international division vice president, Finance, Corning Glass Technologies. Mr.
In 2009 he was named director of Finance, Corning Display Technologies (“CDT”) and in 2010 was appointed division controller, CDT. Between 2012 and 2015, he served as international division vice president, Finance, Corning Glass Technologies. Mr. Becker was appointed Corning’s operations controller in 2015 and senior vice president in 2019.
In 2020, he was appointed senior vice president and general manager, Corning Display and was appointed as senior vice president and general manager, Display & Corning Asia in 2023. Age 51.
Zhang was appointed senior vice president and general manager, Corning Display and was appointed as senior vice president and general manager, Display & Corning Asia in 2023. He was appointed senior vice president and general manager, Corning Glass Innovations & Corning Asia in 2024.
Although most sales are made to the emission control systems manufacturers, the use of our substrates and filters is generally required by the specifications of the automotive and diesel vehicle or engine manufacturers. Patent protection is important to the segment’s operations. The segment has an extensive portfolio of patents relating to its products, technologies and manufacturing processes.
Although most sales are made to the emission control systems manufacturers, the use of our substrates and filters is generally required by the specifications of the automotive and diesel vehicle or engine manufacturers. 4 Table of Contents Patent protection is important to the segment’s operations.
He was appointed chief legal & administrative officer in 2020. Prior to joining Corning, Mr. Steverson served as senior vice president, general counsel, and corporate secretary of Motorola Solutions, Inc. During his 18 years with Motorola, he held a variety of law leadership roles across the company’s numerous business units. Prior to Motorola, Mr.
Steverson served as senior vice president, general counsel, and corporate secretary of Motorola Solutions, Inc. During his 18 years with Motorola, he held a variety of law leadership roles across the company’s numerous business units. Prior to Motorola, Mr. Steverson was in private practice at the law firm of Arnold & Porter. Age 61. Michaune D.
Corning’s industry-leading products include damage-resistant cover glass for mobile devices; precision glass for advanced displays; optical fiber and cable, wireless technologies and connectivity solutions for state-of-the-art communications networks; trusted products to accelerate drug discovery and delivery; and clean-air technologies for cars and trucks.
Corning’s industry-leading products include damage-resistant cover materials for mobile devices; precision glass for advanced displays; optical fiber, cable and connectivity solutions for advanced communications networks, such as fiber to the home and data centers, enabling artificial intelligence and connections around the world; trusted products to accelerate drug discovery and delivery; and clean-air technologies and technical glass for cars and trucks.
Human Capital Management Overview At Corning, we are proud of the life-changing innovations we bring to the world. Our unparalleled expertise in our core technologies along with deep manufacturing and engineering capabilities require a talent strategy focused on attracting and retaining exceptional people, building a culture that enables innovation and collaboration and supporting long and successful careers.
Our unparalleled expertise in our core technologies along with deep manufacturing and engineering capabilities require a talent strategy focused on attracting and retaining exceptional people, building a culture that enables innovation and collaboration and supporting long and successful careers.
Examples of enterprise network solutions include the EDGE® platform, which provides high-density pre-connectorized cabling solutions for data center applications, supporting a path to speeds of 400G and beyond and Everon™ Network Solutions, which provide next-generation cellular connectivity products for interior spaces of all sizes. Our optical fiber manufacturing facilities are in North Carolina, China, India and Poland.
Examples of enterprise network solutions include the EDGE® platform, which provides high-density pre-connectorized cabling solutions for data center applications, supporting a path to speeds of 400G and beyond and Everon™ Network Solutions, which provide next-generation cellular connectivity products for interior spaces of all sizes. We invented new fibers, cables and connectors to capture the generative AI enterprise demand.
In 2011, he assumed the role of business director, AAA Corning® Gorilla® Glass, New Business Development. Later that year, he was appointed division vice president, Heavy Duty Diesel (HDD). In 2013, he was appointed division vice president and business director. In 2014, Mr.
In 2009, he became general manager and regional director of China and India, CET. In 2010 he returned to the U.S. as program director, CET. In 2011, he assumed the role of business director, AAA Corning® Gorilla® Glass, New Business Development. Later that year, he was appointed division vice president, Heavy Duty Diesel. In 2014, Mr.
We are licensed to use certain patents owned by others, which are also considered important to the segment’s operations. Refer to the material under the heading “Patents and Trademarks” for more information. The Environmental Technologies segment represented 13% of Corning’s total segment net sales in 2023.
The segment has an extensive portfolio of patents relating to its products, technologies and manufacturing processes. We are licensed to use certain patents owned by others, which are also considered important to the segment’s operations. Refer to the material under the heading “Patents and Trademarks” for more information.
Hemlock and Emerging Growth Businesses represented 10% of Corning’s total segment net sales in 2023. 5 Table of Contents Additional explanation regarding Corning and its five reportable segments, as well as financial information about geographic areas, is presented in Management’s Discussion and Analysis of Financial Condition and Results of Operations and Note 17 (Reportable Segments) in the accompanying notes to the consolidated financial statements.
Additional explanation regarding Corning and its five reportable segments, as well as financial information about geographic areas, is presented in Management’s Discussion and Analysis of Financial Condition and Results of Operations and Note 17 (Reportable Segments) in the accompanying notes to the consolidated financial statements. 5 Table of Contents Competition We compete with many large and varied manufacturers, both domestic and foreign.
Our hardware and equipment for enterprise network applications include cable assemblies, fiber-optic hardware, fiber-optic connectors, optical components and couplers, closures and other accessories. These products may be sold as individual components or as part of integrated optical connectivity solutions designed for various network applications, including hyperscale data centers.
These products may be sold as individual components or as part of integrated optical connectivity solutions designed for various network applications, including hyperscale data centers.
In July 2004, he was appointed operations manager and in October 2004 he was appointed director of operations and plant manager of Corning (Shanghai) Company Ltd. In 2007, Mr. Fang was appointed vice president, Corning Display Technologies China, and director of commercial operations, government affairs and supply chain. In 2009 he was named president, Corning Display Technologies China.
Fang was appointed vice president, Corning Display Technologies China, and director of commercial operations, government affairs and supply chain. In 2009 he was named president, Corning Display Technologies China. From 2012-2021 Mr. Fang served as president and general manager of Corning Greater China.
He was named chief executive officer in 2005 and chairman of the board in 2007. Mr. Weeks is a director of Amazon.com, Inc. Age 64. John Z. Zhang Senior Vice President and General Manager, Display & Corning Asia Mr. Zhang joined Corning in 2008 as director, corporate development. In 2009, he was appointed director, corporate development Asia Pacific.
Weeks has been a member of Corning’s Board of Directors since December 2000. He was named chief executive officer in 2005 and chairman of the board in 2007. Mr. Weeks is a director of Amazon.com, Inc. Age 65. John Z. Zhang Senior Vice President and General Manager, Corning Glass Innovations & Corning Asia Mr.
We offer a variety of enterprise and on-demand developmental programs and experiences, targeted to all levels in the organization. We provide on-the-job learning experience, mentoring and career planning to ensure immediate application and lasting impact. Talent retention is an ongoing focus area which aligns with our strategy of encouraging and supporting longer-term careers with Corning.
We provide on-the-job learning experience, mentoring and career planning to ensure immediate application and lasting impact. Talent retention is an ongoing focus area which aligns with our strategy of encouraging and supporting longer-term careers with Corning. Historically, our salaried voluntary turnover has been consistently lower than the markets in which we compete for talent.
He was named vice president and general manager of the Optical Fiber business in 1996 and president of Corning’s Optical Communications division in 2001. He became Corning’s president and chief operation officer in 2002. Mr. Weeks has been a member of Corning’s Board of Directors since December 2000.
He has held a variety of financial, business development, commercial and general management roles. He was named vice president and general manager of the Optical Fiber business in 1996 and president of Corning’s Optical Communications division in 2001. He became Corning’s president and chief operating officer in 2002. Mr.
We use the results to pinpoint recurring global themes and develop plans to drive action based on employee feedback. Corning employees all contribute to the success of the Company by Living our Values—all seven, all the time, all around the world. Diversity, Equity and Inclusion We are focused on building globally diverse teams and creating an inclusive environment for all.
We use the results to pinpoint recurring global themes and develop plans to drive action based on employee feedback. Corning employees all contribute to the success of the Company by Living our Values—all seven, all the time, all around the world. Corning operates around the globe and builds strong, multifaceted teams in which all employees feel included at work.
Our fusion process is scalable and we believe it is the most cost-effective process for producing large size substrates. 3 Table of Contents We are recognized as a world leader in precision glass innovations that enable our customers to produce larger, thinner, more flexible and higher-resolution displays.
We are recognized as a world leader in precision glass innovations that enable our customers to produce larger, thinner, more flexible and higher-resolution displays.
In 2010, he further expanded his role to lead the strategy & corporate development organization of Corning International. In 2014, he was named deputy general manager, Corning Display Technologies. In 2015, Mr. Zhang was appointed senior vice president and general manager, Corning Display Technologies.
Zhang joined Corning in 2008 and has held a variety of progressive roles in Strategy, Mergers & Acquisitions, and Business Development. In 2010, he further expanded his role, leading the Strategy & Corporate Development organization of Corning International. In 2014, he was named deputy general manager, Corning Display Technologies. In 2020, Mr.
In 2014, he was appointed executive vice president, Corning Technologies and International. In 2020, he was appointed president & chief operating officer. Age 64. Avery H. Nelson III Senior Vice President and General Manager, Automotive & Solar Mr.
Mr. Musser served as general manager, Corning Greater China from 2007 to 2012 and president of Corning International from 2012 to 2014. In 2014, he was appointed executive vice president, Corning Technologies and International. In 2020, he was appointed president & chief operating officer. Age 65. Avery H.
He was appointed senior vice president and general manager of Mobile Consumer Electronics in April 2020. Age 57. Stefan Becker Senior Vice President and Corporate Controller Mr. Becker joined Corning in 2000 through Corning’s acquisition of Siemens Communication Cable Division. From 2001 to 2005, he held positions as manager, Planning and Analysis and later director of Finance, Corning Cable Systems.
Amin was appointed vice president and general manager, Corning Gorilla Glass, Mobile Consumer Electronics, and in June 2022 he was appointed senior vice president and chief technology officer. Age 56. Stefan Becker Senior Vice President, Finance and Corporate Controller Mr. Becker joined Corning in 2000 through Corning’s acquisition of Siemens Communication Cable Division.
Nelson joined Corning in 1991 as shift supervisor at the Harrodsburg, Kentucky plant and subsequently served in progressive roles in Corning Display Technologies. In 2007, he joined CET as general manager, Corning (Shanghai) Company Limited. In 2009, he became general manager and regional director of China and India, CET. In 2010 he returned to the U.S. as program director, CET.
Nelson III Senior Vice President and General Manager, Automotive, Life Sciences & Solar Mr. Nelson joined Corning in 1991 as shift supervisor at the Harrodsburg, Kentucky plant and subsequently served in progressive roles in Corning Display Technologies. In 2007, he joined CET as general manager, Corning (Shanghai) Company Limited.
Our cable products, including the RocketRibbon® and miniXtend® portfolios, support various outdoor, indoor/outdoor and indoor applications and include a broad range of loose tube, ribbon and drop cable designs with flame-retardant versions available for indoor and indoor/outdoor use including 5G networks.
Our cable products, including the RocketRibbon® and miniXtend® portfolios, support various outdoor, indoor/outdoor and indoor applications and include a broad range of loose tube, ribbon and drop cable designs with flame-retardant versions available for indoor and indoor/outdoor use including 5G networks. 2 Table of Contents In addition to optical fiber and cable, our carrier network product portfolio also includes hardware and equipment products, including cable assemblies, fiber-optic hardware, fiber-optic connectors, optical components and couplers, closures, network interface devices and other accessories.
The Optical Communications segment is divided into two main product groupings – carrier network and enterprise network. 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 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 sold to businesses, governments and individuals for their own use.
From 2012-2021 Mr. Fang served as president and general manager of Corning Greater China. In 2021 he was appointed as president and general manager, International, Corning Incorporated and in 2023 he was appointed senior vice president, Corning International and new business development, Solar. Age 61. 10 Table of Contents Jordana D.
In 2021 he was appointed as president and general manager, International, Corning Incorporated and in 2023 he was appointed senior vice president, Corning International and new business development, Solar. Age 62. Jordana D. Kammerud Senior Vice President and Chief Human Resources Officer Ms.
She brings deep experience in information technology, digital and systems transformation and risk governance to Corning. Age 48. Lewis A. Steverson Executive Vice President and Chief Legal & Administrative Officer Mr. Steverson joined Corning in 2013 as senior vice president and general counsel. In 2018 he was named executive vice president and general counsel.
Steverson Executive Vice President and Chief Legal & Administrative Officer Mr. Steverson joined Corning in 2013 as senior vice president and general counsel. In 2018 he was named executive vice president and general counsel. He was appointed chief legal & administrative officer in 2020. Prior to joining Corning, Mr.
The Specialty Materials segment represented 14% of Corning’s total segment net sales in 2023. 4 Table of Contents Environmental Technologies Segment The Environmental Technologies segment manufactures ceramic substrates and filter products for emissions control in mobile applications around the world.
The Specialty Materials segment represented 14% of Corning’s total segment net sales in 2024. Environmental Technologies Segment The Environmental Technologies segment manufactures ceramic substrates and filter products for emissions control in mobile applications around the world. In the early 1970s, we developed an economical, high-performance cellular ceramic substrate that is now the standard for catalytic converters in vehicles worldwide.
Our semiconductor optics include high-performance optical materials including Corning® HPFS® Fused Silica and Corning® ULE® Ultra-Low Expansion Glass, optical-based metrology instruments and custom optical assemblies for applications in the global semiconductor industry. Our semiconductor optics products are manufactured in New York.
Our semiconductor optics include high-performance optical materials including Corning® HPFS® Fused Silica and Corning® ULE® Ultra-Low Expansion Glass, optical-based metrology instruments and custom optical assemblies for applications in the global semiconductor industry. Additionally, in 2024, we introduced Corning® EXTREME ULE® Glass, a next-generation material that will support chip manufacturers in meeting the rapidly growing demand for advanced and intelligent technologies.
Nelson was appointed vice president and general manager for Environmental Technologies and in 2018 he was named senior vice president and general manager, CET. In 2020 was appointed senior vice president and general manager, Automotive. He was appointed senior vice president and general manager, Automotive & Solar in 2023. Age 55. Edward A.
Nelson was appointed vice president and general manager for CET and was named senior vice president and general manager, CET, in 2018. In 2020 he was appointed senior vice president and general manager, Automotive. His role was expanded in 2023 to include development of new business opportunities in solar markets.
Corning continued managing Total Recordable Incident Rate (“TRIR”) performance to world class levels with an annual TRIR of just 0.35 in 2023. Globally, we promote employee health and wellbeing through wellness programs which vary by region such as nutrition and fitness-related offerings, smoking cessation programs and smoke free campuses.
Globally, we promote employee health and wellbeing through wellness programs which vary by region such as nutrition and fitness-related offerings, smoking cessation programs and smoke free campuses.
Li Fang Senior Vice President, Corning International and New Business Development, Solar Mr. Fang joined Corning International in 1997 as business development manager, China. In 1999 he transferred to the Environmental Products Division and became production manager of Corning Environmental Technologies’ (CET) China Plant - Corning (Shanghai) Company Ltd.
In 1999 he transferred to the Environmental Products Division and became production manager of Corning Environmental Technologies’ (“CET”) China Plant - Corning (Shanghai) Company Ltd. In July 2004, he was appointed operations manager and in October 2004 he was appointed director of operations and plant manager of Corning (Shanghai) Company Ltd. In 2007, Mr.
In addition to optical fiber and cable, our carrier network product portfolio also includes hardware and equipment products, including cable assemblies, fiber-optic hardware, fiber-optic connectors, optical components and couplers, closures, network interface devices and other accessories. These products may be sold as individual components or as part of integrated optical connectivity solutions designed for various carrier network applications.
These products may be sold as individual components or as part of integrated optical connectivity solutions designed for various carrier network applications.
As global demand driven by video usage grows exponentially, telecommunications networks continue to migrate from copper to optical-based systems that can deliver the required cost-effective capacity. Our experience puts us in a unique position to design and deliver optical solutions that reach every edge of the communications network.
As global demand driven by video usage grows exponentially, telecommunications networks continue to migrate from copper to optical-based systems that can deliver the required cost-effective capacity. Additionally, the rapid acceleration of artificial intelligence (“AI”) is driving strong demand for fiber and connectivity products inside and between data centers.
We have entered into cross-licensing arrangements with some major competitors, but the scope of such licenses has been limited to specific product areas or technologies. Our principal trademarks include the following: Axygen, Celcor, ClearCurve, Corning, DuraTrap, Eagle XG, Edge8, Everon, Evolv, Falcon, Gorilla, Guardiant, HPFS, Leaf, PYREX, RocketRibbon, SMF-28e, Steuben, UniCam, Valor, Velocity, Victus and Viridian.
Our principal trademarks include the following: Axygen, Celcor, ClearCurve, Contour, Corning, DuraTrap, Eagle XG, Edge8, Everon, Evolv, Falcon, Gorilla, HPFS, Leaf, PYREX, RocketRibbon, SMF-28e, Steuben, UniCam, Valor, Velocity, Victus and Viridian. 7 Table of Contents Protection of the Environment We have an extensive program to ensure that our facilities comply with state, federal and foreign pollution-control regulations.
Musser joined Corning in 1986 and served in a variety of manufacturing and general management roles in Corning’s Optical Communications businesses. In 2005, he was named vice president and general manager of Optical Fiber. Mr. Musser served as general manager, Corning Greater China from 2007 to 2012 and president of Corning International from 2012 to 2014.
She has also held human resources leadership positions with SC Johnson, American Express, and DaimlerChrysler. Age 48. Eric S. Musser President and Chief Operating Officer Mr. Musser joined Corning in 1986 and served in a variety of manufacturing and general management roles in Corning’s Optical Communications businesses. In 2005, he was named vice president and general manager of Optical Fiber.
We have display glass manufacturing operations in China, South Korea, Japan and Taiwan, and service our glass customers in all regions, utilizing our manufacturing facilities throughout Asia. Patent protection and proprietary trade secrets are important to the Display Technologies segment’s operations. Refer to the material under the heading “Patents and Trademarks” for more information.
Patent protection and proprietary trade secrets are important to the Display Technologies segment’s operations. Refer to the material under the heading “Patents and Trademarks” for more information. The Display Technologies segment represented 27% of Corning’s total segment net sales in 2024.
Becker was appointed Corning’s operations controller in 2015 and senior vice president in 2019. In 2021 he was appointed senior vice president, Finance, and corporate controller and in February 2022 he was named principal accounting officer. Age 52. Michael A. Bell Senior Vice President and General Manager, Optical Communications Mr.
In 2021 he was appointed senior vice president, Finance, and corporate controller and in February 2022 he was named principal accounting officer. Age 53. Li Fang Senior Vice President, Corning International and New Business Development, Solar Mr. Fang joined Corning International in 1997 as business development manager, China.
To maintain compliance with such regulations, capital expenditures for pollution control in operations were approximately $21.8 million in 2023 and are estimated to be $20.1 million in 2024. Our 2023 consolidated operating results reflect approximately $69.6 million for depreciation, maintenance, waste disposal and other operating expenses associated with pollution control.
This program has resulted in capital and operating expenditures each year. To maintain compliance with such regulations, capital expenditures for pollution control in operations were approximately $10.4 million in 2024 and are estimated to be $14.2 million in 2025.
Historically, our salaried voluntary turnover has been consistently lower than the markets in which we compete for talent. Salaried talent retention in 2023 remained strong at 95%. At Corning, the health and safety of our workforce is always of paramount consideration. Our safety standards meet, and often exceed, local regulatory standards.
Salaried talent retention in 2024 remained strong at 95.7%. At Corning, the health and safety of our workforce is always of paramount consideration. Our safety standards meet, and often exceed, local regulatory standards. Corning continued managing Total Recordable Incident Rate (“TRIR”) performance to world class levels with an annual TRIR of just 0.29 in 2024.
Soumya Seetharam Senior Vice President and Chief Digital & Information Officer Ms. Seetharam joined Corning in November 2022 as senior vice president and chief digital & information officer. Prior to joining Corning, she was vice president and general manager IT at Intel Corporation.
Prior to joining Corning, she was vice president and general manager of Information Technology at Intel Corporation driving information technology (“IT”) vision and strategy for Corporate Functions. She also served as chief systems officer at Anadarko Petroleum Corporation. Ms. Seetharam brings deep experience in information technology, digital and systems transformation and risk governance to Corning. Age 49. Lewis A.
In addition to our optical-based portfolio, our carrier network portfolio also contains select copper-based products including subscriber demarcation, connection and protection devices, xDSL (different variations of digital subscriber lines) passive solutions and outside plant enclosures. Our enterprise network portfolio leverages optical fiber products, including ClearCurve® ultra-bendable multimode fiber for private and hyperscale data centers and other enterprise network applications.
Our enterprise network portfolio leverages optical fiber products, including ClearCurve® ultra-bendable multimode fiber for private and hyperscale data centers and other enterprise network applications. Our hardware and equipment for enterprise network applications include cable assemblies, fiber-optic hardware, fiber-optic connectors, optical components and couplers, closures and other accessories.
Our global workforce is comprised of 64% men and 36% women. In all regions of the world, we are continuing to invest in building our talent pipeline of women through targeted recruitment efforts, mentoring and coaching programs, networking opportunities, personalized development plans and proactive career management.
In all regions of the world, we maintain a talent pipeline that includes people of all backgrounds through our effective recruitment process, mentoring and coaching programs, networking opportunities, and proactive career discussions. As a result of these efforts, we have expanded the quality and depth of experience within our leadership teams.
Amin was appointed vice president and general manager, Corning Gorilla Glass, Mobile Consumer Electronics, and in June 2022 he was appointed senior vice president and chief technology officer. Age 55. John P. Bayne, Jr. Senior Vice President and General Manager, Mobile Consumer Electronics Mr.
O’Day served as vice president of Corning Optical Communications (“COC”) Technology and Program Management Office. He was appointed senior vice president & general manager, Optical Communications in 2024. Age 55. 10 Table of Contents Edward A. Schlesinger Executive Vice President and Chief Financial Officer Mr.
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In the early 1970s, we developed an economical, high-performance cellular ceramic substrate that is now the standard for catalytic converters in vehicles worldwide.
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Our experience puts us in a unique position to design and deliver optical solutions that reach every edge of the communications network. The Optical Communications segment is divided into two main product groupings – carrier network and enterprise network.
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Protection of the Environment We have an extensive program to ensure that our facilities comply with state, federal and foreign pollution-control regulations. This program has resulted in capital and operating expenditures each year.
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These components are being adopted by hyperscale data centers and others focusing on key technology vectors such as density, latency and sustainability. Our optical fiber manufacturing facilities are in North Carolina, China, India and Poland. Cabling operations are in North Carolina, Poland and smaller regional locations.
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As a result of these efforts, we have made significant diversity gains within our leadership teams.
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Hemlock and Emerging Growth Businesses represented 8% of Corning’s total segment net sales in 2024.
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Since 2013, gender and ethnic diversity among members of the Corporate Management Group, which includes approximately 240 of the Company’s top global leaders, increased from 30% to 51%; corporate officer diverse representation has increased from 23% to 42%. 8 Table of Contents In 2021, we achieved 100% pay equity for all salaried men and women in our worldwide operations, having achieved it in the U.S. since 2017.
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The following table presents the approximate number of patents granted to our reportable segments: Number of patents worldwide U.S. patents Important U.S. patents expiring between 2025 and 2027 Optical Communications 4,652 2,089 25 Display Technologies 1,320 173 12 Specialty Materials 2,426 883 13 Environmental Technologies 847 360 12 Life Sciences 547 161 6 Many of our patents are used in operations or are licensed for use by others, and we are licensed to use patents owned by others.
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Our U.S. analysis also includes minority groups compared with white employees. We continue to monitor regularly and make adjustments where appropriate to maintain our global gender pay equity. The Office of Racial Equality and Social Unity (“ORESU”) extends our longstanding commitment to diversity, equity and inclusion at Corning into the communities in which our employees live and work.
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We have entered into cross-licensing arrangements with some major competitors, but the scope of such licenses has been limited to specific product areas or technologies.
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Since its creation in 2020, in addition to driving inclusive mindsets within Corning, the office leads the development and execution of programs that address racial inequalities and socioeconomic disparities in communities at the local, state and national levels. Our programs drive equity and help communities thrive by investing in education, economic growth and access to healthcare.
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Our 2024 consolidated operating results reflect approximately $64.0 million for depreciation, maintenance, waste disposal and other operating expenses associated with pollution control. Human Capital Management Overview At Corning, we are proud of the life-changing innovations we bring to the world.
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Corning strives to attract and recruit diverse qualified candidates to maintain our culture of innovation and to foster creativity. We have created a strategic talent pipeline through internships, co-ops, rotational leadership programs and partnerships with various universities, including Historically Black Colleges & Universities.
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Our efforts are rooted in our Value of the Individual, by which we acknowledge the belief that the commitment and contributions of all of our employees determines our success. The rich diversity of our experiences, thoughts, and who we are as individuals strengthens the impact of our collective achievements.

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Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

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Biggest changeVolatility of demand for manufacturing equipment can increase capital, technical, operational and other risks for Corning and for companies throughout our supply chain, and may cause some suppliers to exit businesses, scale back or cease operations, which could impact our ability to meet customer demand and could have a material adverse effect on our business. 13 Table of Contents Corning may also experience significant interruptions of its manufacturing operations, delays in its ability to deliver products or services, increased costs or customer order cancellations as a result of: • The failure or inability to accurately forecast demand and obtain sufficient quantities of materials, equipment and services on a cost-effective basis; • Volatility in the availability and cost of materials, equipment and services, including rising prices due to inflation or scarcity of availability; • Difficulties or delays in obtaining required import or export approvals; • Shipment delays due to transportation interruptions or capacity constraints; • A worldwide shortage of semiconductor components or other issues; • Information technology or infrastructure failures, including those of a third-party supplier or service provider; and • Natural disasters, the impacts of climate change, or other events beyond Corning’s control (such as earthquakes, utility interruptions, tsunamis, hurricanes, typhoons, floods, storms or extreme weather conditions, fires, regional economic downturns, regional or global health crisis events, geopolitical turmoil, increased trade restrictions between the U.S. and China and other countries, social unrest, political instability, terrorism, or acts of war) in locations where it or its customers or suppliers have manufacturing, research, engineering or other operations.
Biggest changeCorning may also experience significant interruptions of its manufacturing operations, delays in its ability to deliver products or services, increased costs or customer order cancellations as a result of: • The failure or inability to accurately forecast demand and obtain sufficient quantities of materials, equipment and services on a cost-effective basis; • Volatility in the availability and cost of materials, equipment and services, including rising prices due to inflation or scarcity of availability; • Difficulties or delays in obtaining required import or export approvals; • Shipment delays due to transportation interruptions, labor strife or capacity constraints; • A worldwide shortage of semiconductor components or other issues; • Information technology or infrastructure failures, including those of a third-party supplier or service provider; and • Natural disasters, the impacts of climate change, or other events beyond Corning’s control (such as earthquakes, utility interruptions, tsunamis, hurricanes, typhoons, floods, storms or extreme weather conditions, fires, regional economic downturns, regional or global health crisis events, geopolitical turmoil, increased trade restrictions between the U.S. and China and other countries, social unrest, political instability, terrorism, or acts of war) in locations where it or its customers or suppliers have manufacturing, research, engineering or other operations. 13 Table of Contents Health crisis events, such as epidemics or pandemics, have adversely impacted, and may continue to impact, the economy and disrupt our operations and supply chains, which may have an adverse effect on our results of operations Health crisis events, including epidemics or pandemics, such as COVID-19, have impacted and may further impact the economy and could have additional impacts on economic growth, supply chains, the proper functioning of financial and capital markets, foreign currency exchange rates and interest rates.
Current or future litigation or regulatory investigations may harm our financial condition or results of operations As a global technology and manufacturing company, we are engaged in various litigations and regulatory matters. Litigation and regulatory proceedings may be uncertain, and adverse rulings could occur, resulting in significant liabilities, penalties or damages.
Current or future litigation or regulatory investigations may harm our financial condition or results of operations As a global technology and manufacturing company, we are engaged in various litigation and regulatory matters. Litigation and regulatory proceedings may be uncertain, and adverse rulings could occur, resulting in significant liabilities, penalties or damages.
Any significant disruption, breakdown, intrusion, interruption or corruption, data breach, or compromise to the accessibility, security or integrity of our or our providers’ IT systems, or the misappropriation or disclosure of any confidential, proprietary or personally identifiable information, could result in the loss of data or intellectual property, equipment or systems damage, downtime, safety related issues and could have a material adverse effect on our business, including by harming our competitive position and reputation, disrupting our manufacturing, reducing the value of our investment in research and development and other strategic initiatives, impairing our ability to access suppliers, contract manufacturers, customers and cloud-based services, subjecting us to litigation or regulatory investigations or fines, increasing the costs of compliance and remediation, or otherwise adversely affecting our business.
Any significant disruption, br eakdown, intrusion, interruption or corruption, data breach, or compromise to the accessibility, security or integrity of our or our providers’ IT systems, or the misappropriation or disclosure of any confidential, proprietary or personally identifiable information, could result in the loss of data or intellectual property, equipment or systems damage, downtime, safety related issues and could have a material adverse effect on our business, including by harming our competitive position and reputation, disrupting our manufacturing, reducing the value of our investment in research and development and other strategic initiatives, impairing our ability to access suppliers, contract manufacturers, customers and cloud-based services, subjecting us to litigation or regulatory investigations or fines, increasing the costs of compliance and remediation, or otherwise adversely affecting our business.
Our operations may be adversely affected by changes in the substance or enforcement of these regulatory requirements, and by actual or alleged violations of them; • Fluctuations in currency exchange rates, convertibility of currencies and restrictions involving the movement of funds between jurisdictions and countries; • Governmental protectionist policies and sovereign and political risks that may adversely affect Corning’s profitability and assets; • Tariffs, trade duties and other trade barriers including anti-dumping and countervailing duties; • Geographical concentration of our factories and operations, and regional shifts in our customer base; • Health crisis events, including epidemic or pandemic concerns; • Political unrest, geopolitical tensions, confiscation or expropriation of assets by foreign governments, terrorism and the potential for other hostilities; • Difficulty in protecting intellectual property, sensitive commercial and operations data and information technology systems; • Differing legal systems, including protection and treatment of intellectual property and patents; • Complex, changing or competing tax regimes; • Difficulty in collecting obligations owed to us; • Natural disasters such as floods, earthquakes, tsunamis and windstorms; and • Potential loss of utilities or other disruptions affecting manufacturing.
Our operations may be adversely affected by changes in the substance or enforcement of these regulatory requirements, and by actual or alleged violations of them; • Fluctuations in currency exchange rates, convertibility of currencies and restrictions involving the movement of funds between jurisdictions and countries; • Governmental protectionist policies and sovereign and political risks that may adversely affect Corning’s profitability and assets; • Adverse changes relating to government grants, tax credits or other government incentives; • Tariffs, trade duties and other trade barriers including anti-dumping and countervailing duties; • Geographical concentration of our factories and operations, and regional shifts in our customer base; • Health crisis events, including epidemic or pandemic concerns; • Political unrest, geopolitical tensions, confiscation or expropriation of assets by foreign governments, terrorism and the potential for other hostilities; • Difficulty in protecting intellectual property, sensitive commercial and operations data and information technology systems; • Differing legal systems, including protection and treatment of intellectual property and patents; • Complex, changing or competing tax regimes; • Difficulty in collecting obligations owed to us; • Natural disasters such as floods, earthquakes, tsunamis and windstorms; and • Potential loss of utilities or other disruptions affecting manufacturing.
We have significant exposure to foreign currency movements A large portion of our sales, profit and cash flows are transacted in non-U.S. dollar currencies, primarily the Japanese yen, South Korean won, New Taiwan dollar, Chinese yuan and euro.
We have significant exposure to foreign currency movements A large portion of our sales, profit and cash flows are transacted in non-U.S. dollar currencies, primarily the Japanese yen, South Korean won, New Taiwan dollar, Mexican peso, Chinese yuan and euro.
These factors could materially impact our results of operations, anticipated future results, financial position and cash flows. We may have significant exposure to counterparties of our related derivatives portfolio We maintain a significant portfolio of over-the-counter derivatives to hedge our projected currency exposure.
These factors could materially impact our results of operations, anticipated future results, financial position and cash flows. 17 Table of Contents We may have significant exposure to counterparties of our related derivatives portfolio We maintain a significant portfolio of over-the-counter derivatives to hedge our projected currency exposure.
Item 1A. Risk Factors We operate globally in a rapidly changing economic, political and technological environment that present numerous risks.
Item 1A. Risk Factors We operate globally in a rapidly changing economic, political and technological environment that presents numerous risks.
Any such substantial legal liability or regulatory action could have a material adverse effect on our business, financial condition, cash flows and reputation. 18 Table of Contents Our business is subject to various governmental regulations, and compliance with these regulations may cause us to incur significant expense.
Any such substantial legal liability or regulatory action could have a material adverse effect on our business, financial condition, cash flows and reputation. Our business is subject to various governmental regulations, and compliance with these regulations may cause us to incur significant expense.
Because we have a concentrated customer base, future sales and cash flows could be negatively impacted by the actions or loss of one or more key customers A relatively small number of end customers account for a high percentage of our net sales.
Because we have a concentrated customer base, future sales and cash flows could be negatively impacted by the actions or loss of one or more key customers A relatively small number of end customers account for a high percentage of our net sales in each of our business segments.
Corning ’ s Display Technologies segment generates a significant amount of the Company ’ s profits and cash flow; any significant decrease in display glass pricing, volume or market share could have a material and negative impact on our financial results Corning’s ability to generate profits and operating cash flow depends largely on the profitability of our display glass business, which is subject to pricing pressure, exchange rate movements, industry competition, potential over-capacity, development of new technologies and operational and regulatory risks.
Corning’s Display Technologies segment generates a significant amount of the Company’s profits and cash flow; any significant decrease in display glass pricing, volume or market share could have a material and negative impact on our financial results Corning’s ability to generate profits and operating cash flow could be significantly impacted by the profitability of our display glass business, which is subject to pricing pressure, exchange rate movements, industry competition, potential over-capacity, development of new technologies and operational and regulatory risks.
Such violations could result in prohibitions on our ability to offer our products and services in one or more countries and could also materially damage our reputation, our brand, our international expansion efforts, our ability to attract and retain employees, our businesses and operating results. Our success depends, in part, on our ability to anticipate and manage these risks.
Such violations could result in prohibitions on our ability to offer our products and services in one or more countries and could also materially damage our reputation, our brand, our international expansion efforts, our ability to attract and retain employees, our businesses and operating results.
Changes in regulations and the regulatory environment in the U.S. and the many other countries in which we operate, such as those resulting from the regulation and impact of climate change, CO 2 abatement and emission reduction targets, may affect our businesses and results in adverse ways by, among other things, substantially increasing manufacturing costs, limiting availability of scarce resources, especially energy, or requiring limitations on production or sales of our products or those of our customers. 16 Table of Contents General Risk Factors We may have additional tax liabilities We are subject to income taxes in the U.S. and many foreign jurisdictions and are commonly audited by various tax authorities.
Changes in regulations and the regulatory environment in the U.S. and the many other countries in which we operate, such as those resulting from the regulation and impact of climate change, CO 2 abatement and emission reduction targets, may affect our businesses and results in adverse ways by, among other things, substantially increasing manufacturing costs, limiting availability of scarce resources, especially energy, or requiring limitations on production or sales of our products or those of our customers.
Corning is exposed to risks associated with an uncertain, recessionary and inflationary global economy Uncertain or adverse economic and business conditions, including uncertainties and volatility in the financial markets, national debt, fiscal or monetary concerns, availability of government incentives, inflation and rising interest rates in various regions, could materially adversely impact Corning’s operating results.
Our success depends, in part, on our ability to anticipate and manage these risks. 16 Table of Contents Corning is exposed to risks associated with a global economy, including government fiscal and monetary policies Uncertain or adverse economic and business conditions, including uncertainties and volatility in the financial markets, national debt, fiscal or monetary concerns, availability of government incentives, inflation and rising interest rates in various regions, could materially adversely impact Corning’s operating results.
Moreover, several of our key customers are domiciled in areas of the world with laws, rules and business practices that may notably differ from those in the U.S., and we face the reputational and legal risk that our related partners may violate applicable laws, rules and business practices.
Moreover, several of our key customers are domiciled in areas of the world with laws, rules and business practices that may notably differ from those in the U.S., and we face the reputational and legal risk that our related partners may violate applicable laws, rules and business practices. 18 Table of Contents International trade policies may negatively impact our ability to sell and manufacture our products outside of the U.S.
Inadequate account security or organizational security practices may also result in unauthorized access. Increased work-from-home, at both the Company and our providers, presents additional operational risk. Companies that provide utilities, water, transportation, natural gas and other resources and services across our supply chain, are critical to our manufacturing operations and are vulnerable to cyber-attacks.
Increased work-from-home, at both the Company and our providers, presents additional operational risk. Companies that provide utilities, water, transportation, natural gas and other resources and services across our supply chain, are critical to our manufacturing ope rations and are vulnerable to cyber-attacks.
From time to time, both we and certain of our providers, have been subject to cyberattacks and security incidents. We may be unable to anticipate, detect, prevent or remediate future attacks, particularly as attackers are becoming more sophisticated in their ability to circumvent controls and remove forensic evidence.
From time to time, both we and certain of our providers, have been subject to cyberattacks and security incidents. Our security processes and initiatives may not be capable of anticipating, detecting, preventing or remediating all attacks, particularly as attackers are becoming more sophisticated in their ability to circumvent controls and remove forensic evidence.
Even during periods of economic uncertainty or lower revenues, Corning must continue to invest in research and development and maintain a global business infrastructure to compete effectively and support its customers, which can have a negative impact on its operating margins and earnings. 17 Table of Contents We are also subject to a variety of other risks in managing a global organization, including those related to: • The economic and political conditions in each country or region and relationships among countries; • Complex regulatory requirements affecting international trade and investment, including anti-dumping laws, export controls, the Foreign Corrupt Practices Act and local laws prohibiting improper payments.
We are also subject to a variety of other risks in managing a global organization, including those related to: • The economic and political conditions in each country or region and relationships among countries; • Complex regulatory requirements affecting international trade and investment, including anti-dumping laws, export controls, the Foreign Corrupt Practices Act and local laws prohibiting improper payments.
Intrusion into a supplier or contract manufacturer system not integrated with a Corning IT system could result in service disruption and/or loss of financial control. 15 Table of Contents Our IT systems, and those of our providers, may be vulnerable to compromise or disruption due to human error or malfeasance, outdated applications, computer viruses or malware (e.g., ransomware), natural disasters, unauthorized access, cyber-attacks and other similar incidents and disruptions.
Our IT systems, and those of our providers, may be vulnerable to compromise or disruption due to human error or malfeasance, outdated applications, computer viruses or malware (e.g., ransomware), natural disasters, unauthorized access, cyber-attacks and other similar incidents and disruptions. Inadequate account security or organizational security practices may also result in unauthorized access.
We may experience difficulties in enforcing our intellectual property rights, which could result in loss of market share and decreased sales and profits, and we may be subject to claims of infringement of the intellectual property rights of others We rely on patent and trade secret laws, copyright, trademark, confidentiality procedures, controls and contractual commitments to protect our intellectual property rights.
Due to the specialized nature of our products and single-site manufacturing locations, in the event such a location experiences disruption, it may not be possible to find replacement capacity or substitute production from other facilities. 14 Table of Contents We may experience difficulties in enforcing our intellectual property rights, which could result in loss of market share and decreased sales and profits, and we may be subject to claims of infringement of the intellectual property rights of others We rely on patent and trade secret laws, copyright, trademark, confidentiality procedures, controls and contractual commitments to protect our intellectual property rights.
This concentration subjects us to a variety of risks including: • The loss or insolvency of one or more of our key customers, could result in a substantial loss of sales and reduction in anticipated cash flows; • Customers may possess substantial leverage in negotiating contractual obligations, including liability provisions; and • Mergers and consolidations between customers could result in further concentration of the customer base. 14 Table of Contents The following table details the number of combined customers of our reportable segments that accounted for a large percentage of segment net sales: Number of combined end customers % of total segment net sales in 2023 Optical Communications 2 21 % Display Technologies 3 44 % Specialty Materials 2 44 % Environmental Technologies 3 68 % Life Sciences 2 41 % Events outside of Corning ’ s control, or those of our contract manufacturers, could cause a disruption to our manufacturing operations and our ability to serve our customers, resulting in a negative impact to Corning ’ s net sales, net income, asset values and liquidity Disruption to our manufacturing operations, or those of our contract manufacturers, could significantly impact Corning’s ability to supply its customers and could produce a near-term severe impact on our individual business units and the Company.
The following table details the number of combined customers of our reportable segments that accounted for a large percentage of segment net sales, not adjusted for constant currency: Number of combined end customers % of total segment net sales in 2024 Optical Communications 2 27 % Display Technologies 4 67 % Specialty Materials 2 43 % Environmental Technologies 3 71 % Life Sciences 2 42 % Events outside of Corning’s control, or those of our contract manufacturers, could cause a disruption to our manufacturing operations and our ability to serve our customers, resulting in a negative impact to Corning’s net sales, net income, asset values and liquidity Disruption to our manufacturing operations, or those of our contract manufacturers, could significantly impact Corning’s ability to supply its customers and could produce a near-term severe impact on our individual business units and the Company.
There are many transactions and calculations where the ultimate tax treatment is uncertain. Judgment is required in determining our worldwide provision for income taxes.
General Risk Factors We may have additional tax liabilities We are subject to income taxes in the U.S. and many foreign jurisdictions and are commonly audited by various tax authorities. There are many transactions and calculations where the ultimate tax treatment is uncertain. Judgment is required in determining our worldwide provision for income taxes.
If our investments do not provide a pipeline of products or technologies that our customers demand or lower our manufacturing costs, or if our products or technologies become obsolete or disrupted by emerging technologies, it could negatively impact our revenue and operating margins for both near- and long-term.
If our investments do not provide a pipeline of products or technologies that our customers demand or lower our manufacturing costs, or if our products or technologies become obsolete or disrupted by emerging technologies, it could negatively impact our revenue and operating margins for both near- and long-term. 15 Table of Contents Our innovation model depends on our ability to attract and retain specialized expertise Our innovation model requires us to employ highly specialized experts in glass science, ceramic science and optical physics to conduct our research and development and engineer our products and design our manufacturing facilities.
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Health crisis events, such as epidemics or pandemics, have adversely impacted, and may continue to impact, the economy and disrupt our operations and supply chains, which may have an adverse effect on our results of operations Health crisis events, including epidemics or pandemics, such as COVID-19, have impacted and may further impact the economy and could have additional impacts on economic growth, supply chains, the proper functioning of financial and capital markets, foreign currency exchange rates and interest rates.
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Volatility of demand for manufacturing equipment can increase capital, technical, operational and other risks for Corning and for companies throughout our supply chain, and may cause some suppliers to exit businesses, scale back or cease operations, which could impact our ability to meet customer demand and could have a material adverse effect on our business.
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Due to the specialized nature of our products and single-site manufacturing locations, in the event such a location experiences disruption, it may not be possible to find replacement capacity or substitute production from other facilities.
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This concentration subjects us to a variety of risks including: • The loss or insolvency of one or more of our key customers, could result in a substantial loss of sales and reduction in anticipated cash flows; • Customers may possess substantial leverage in negotiating contractual obligations, including liability provisions; and • Mergers and consolidations between customers could result in further concentration of the customer base.
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Our innovation model depends on our ability to attract and retain specialized expertise Our innovation model requires us to employ highly specialized experts in glass science, ceramic science and optical physics to conduct our research and development and engineer our products and design our manufacturing facilities.
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Intrusion into a supplier or contract manufacturer system not integrated with a Corning IT system could result in service disruption and/or loss of financial control.
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International trade policies may negatively impact our ability to sell and manufacture our products outside of the U.S.
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The rapid development and increasing adoption of emerging technologies, such as artificial intelligence and machine learning, may further complicate our ability to anticipate and implement effective protective measures against cyber events.
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Even during periods of economic uncertainty or lower revenues, Corning must continue to invest in research and development and maintain a global business infrastructure to compete effectively and support its customers, which can have a negative impact on its operating margins and earnings.

Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

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Biggest changeThe team’s efforts to prevent, detect, mitigate and remediate cybersecurity risks and incidents are enhanced by briefings from internal security personnel, by receipt of threat intelligence and other information obtained from governmental, public or private sources, including external consultants engaged by us, periodic assessments against the NIST CSF and through alerts and reports produced by security tools deployed in our IT environment. 20 Table of Contents While Corning has had to address various cybersecurity threats in the ordinary course of its business, we have not identified risks from cybersecurity threats, including as a result of any prior cybersecurity incidents, that have or are reasonably likely to materially affect us, including our operations, business strategy, results of operations, or financial condition.
Biggest changeThe team’s efforts to prevent, detect, mitigate and remediate cybersecurity risks and incidents are enhanced by briefings from internal security personnel, by receipt of threat intelligence and other information obtained from governmental, public or private sources, including external consultants engaged by us, periodic assessments against the NIST CSF and through alerts and reports produced by security tools deployed in our IT environment.
On an annual basis, the CISO provides a cybersecurity update to the Board and participates in a joint meeting of the IT and Audit Committees to review significant cybersecurity risks and their impact, if any, on internal controls. At any time, Board members may raise concerns regarding the Company’s cybersecurity posture and recommend future changes to controls or procedures.
On an annual basis, the CISO provides a cybersecurity update to the Board to review significant cybersecurity risks and their impact, if any, on internal controls. At any time, Board members may raise concerns regarding the Company’s cybersecurity posture and recommend future changes to controls or procedures.
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While Corning has had to address various cybersecurity threats in the ordinary course of its business, we have not identified risks from cybersecurity threats, including as a result of any prior cybersecurity incidents, that have or are reasonably likely to materially affect us, including our operations, business strategy, results of operations, or financial condition. 20 Table of Contents

Item 2. Properties

Properties — owned and leased real estate

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Biggest changeThe following table presents the distribution of this total area: (million square feet) Total Domestic Foreign Manufacturing 55.8 22.5 33.3 Sales and administrative 2.4 1.8 0.6 Research and development 3.9 1.9 2.0 Warehouse 3.4 2.6 0.8 Total 65.5 28.8 36.7 Total assets and capital expenditures by reportable segment are included in Note 17 (Reportable Segments) in the accompanying notes to the consolidated financial statements.
Biggest changeThe following table presents the distribution of this total area: (million square feet) Total Domestic Foreign Manufacturing 46.4 12.2 34.2 Sales and administrative 2.5 1.9 0.6 Research and development 2.1 1.9 0.2 Warehouse 3.2 2.5 0.7 Total 54.2 18.5 35.7 Total assets and capital expenditures by reportable segment are included in Note 17 (Reportable Segments) in the accompanying notes to the consolidated financial statements.
Item 2. Properties We operate 124 manufacturing plants and processing facilities in 15 countries, of which approximately 33% are in the U.S. We own approximately 53% of our executive and corporate buildings, with 93% located in and around Corning, New York.
Item 2. Properties We operate 124 manufacturing plants and processing facilities in 15 countries, of which approximately 32% are in the U.S. We own approximately 55% of our executive and corporate buildings, with 93% located in and around Corning, New York.
We also own approximately 63% of our sales and administrative office square footage, 80% of our research and development square footage, 60% of our manufacturing square footage and 8% of our warehousing square footage. Manufacturing, sales and administrative, research and development facilities and warehouse facilities have an aggregate floor space of approximately 65.5 million square feet.
We also own approximately 61% of our sales and administrative office square footage, 80% of our research and development square footage, 58% of our manufacturing square footage and 8% of our warehousing square footage. Manufacturing, sales and administrative, research and development facilities and warehouse facilities have an aggregate floor space of approximately 54.2 million square feet.

Item 3. Legal Proceedings

Legal Proceedings — active lawsuits and investigations

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Biggest changeAs of December 31, 2023 and 2022, Corning had accrued approximately $88 million and $109 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.
Biggest changeAs 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.
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 19 hazardous waste sites.
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.

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

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Biggest change(c) The following table provides information about purchases of common stock during the fourth quarter of 2023: Issuer Purchases of Equity Securities Execution date Total number of shares purchased (1) Average price paid per share (2) Number of shares purchased as part of publicly announced programs Approximate dollar value of shares that may be purchased under the publicly announced programs October 1-31, 2023 78,098 $ 29.94 — November 1-30, 2023 11,783 $ 26.70 — December 1-31, 2023 35,216 $ 29.02 — Total 125,097 $ 29.38 — $ 3,301,085,426 (1) This column reflects: (i) 94,437 shares of common stock related to the vesting of employee restricted stock; (ii) 29,894 shares of common stock related to the vesting of employee restricted stock units; and (iii) 766 shares of common stock related to the vesting of employee performance stock units.
Biggest change(c) The following table provides information about purchases of common stock during the fourth quarter of 2024: Issuer Purchases of Equity Securities Execution date Total number of shares purchased (1) Average price paid per share (2) Number of shares purchased as part of publicly announced programs Approximate dollar value of shares that may be purchased under the publicly announced programs October 1-31, 2024 89,530 $ 44.70 November 1-30, 2024 4,670 $ 48.33 December 1-31, 2024 675,228 $ 48.39 619,867 Total 769,428 $ 47.96 619,867 $ 3,135,661,048 (1) This column reflects: (iii) 105,281 shares of common stock related to the vesting of employee restricted stock; (i) 43,982 shares of common stock related to the vesting of employee restricted stock units; (ii) 298 shares of common stock related to the vesting of employee performance stock units; and (v) the purchase of 619,867 shares of common stock under the 2019 Repurchase Program.
This graph assumes the investment of $100 on December 31, 2018 and the reinvestment of all dividends since that date. 22 Table of Contents (b) Not applicable.
This graph assumes the investment of $100 on December 31, 2019 and the reinvestment of all dividends since that date. 22 Table of Contents (b) Not applicable.
The NYSE ticker symbol for Corning Incorporated is “GLW”. As of December 31, 2023, there were approximately 11,000 registered holders of common stock and approximately 777,000 beneficial shareholders. Information with respect to securities authorized for issuance under equity compensation plans is included herein under Item 12.
The NYSE ticker symbol for Corning Incorporated is “GLW”. As of December 31, 2024, there were approximately 10,500 registered holders of common stock and approximately 861,000 beneficial shareholders. Information with respect to securities authorized for issuance under equity compensation plans is included herein under Item 12.
(2) Represents the stock price at the time of surrender.
(2) Represents the stock price at the time of surrender and includes costs associated with the repurchase.

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

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Biggest changeThe following table presents our actual and expected return (loss) on assets, as well as the corresponding percentages (in millions, except percentages): December 31, 2023 2022 2021 Actual return (loss) on plan assets – Domestic plans $ 281 $ (728 ) $ 208 Expected return on plan assets – Domestic plans 176 210 209 Actual return (loss) on plan assets – International plans 10 (139 ) (2 ) Expected return on plan assets – International plans 13 9 7 Weighted-average actual and expected return on assets: Actual return (loss) on plan assets – Domestic plans 10.94 % (20.05 )% 6.17 % Expected return on plan assets – Domestic plans 6.75 % 6.00 % 6.00 % Actual return (loss) on plan assets – International plans 2.54 % (26.26 )% (0.33 )% Expected return on plan assets – International plans 3.85 % 1.64 % 1.26 % As of December 31, 2023, the Projected Benefit Obligation (“PBO”) for U.S. pension plans was $3.3 billion. 40 Table of Contents The following table presents the estimated increases (decreases) in future ongoing pension expense and projected benefit obligation assuming a 25 basis point change in the key assumptions for our U.S. pension plans (in millions): Change in ongoing pension expense Change in projected benefit obligation 25 basis point decrease in each spot rate $ (1 ) $ 76 25 basis point increase in each spot rate $ 1 $ (73 ) 25 basis point decrease in expected return on assets $ 7 25 basis point increase in expected return on assets $ (7 ) The above sensitivities reflect the impact of changing one assumption at a time.
Biggest changeWhile management believes that the assumptions used are appropriate, differences in actual experience or changes in assumptions may affect our employee pension and other postretirement obligations, and current and future expense. 40 Table of Contents The following table presents our actual and expected return (loss) on assets, as well as the corresponding percentages (in millions, except percentages): December 31, 2024 2023 2022 Actual return (loss) on plan assets – Domestic plans $ 303 $ 281 $ (728) Expected return on plan assets – Domestic plans 179 176 210 Actual (loss) return on plan assets – International plans (6) 10 (139) Expected return on plan assets – International plans 16 13 9 Weighted-average actual and expected return on assets: Actual return (loss) on plan assets – Domestic plans 11.74 % 10.94 % (20.05) % Expected return on plan assets – Domestic plans 6.75 % 6.75 % 6.00 % Actual (loss) return on plan assets – International plans (1.19) % 2.54 % (26.26) % Expected return on plan assets – International plans 4.34 % 3.85 % 1.64 % As of December 31, 2024, the Projected Benefit Obligation (“PBO”) for U.S. pension plans was $3.2 billion.
Some of the risks, uncertainties and other factors that could cause actual results to differ materially from those expressed in or implied by the forward-looking statements include, but are not limited to: — global economic trends, competition and geopolitical risks, or an escalation of sanctions, tariffs or other trade tensions between the U.S. and China or other countries, and related impacts on our businesses’ global supply chains and strategies; — changes in macroeconomic and market conditions and market volatility, including developments and volatility arising from health crisis events, inflation, interest rates, the value of securities and other financial assets, precious metals, oil, natural gas, raw materials and other commodity prices and exchange rates (particularly between the U.S. dollar and the Japanese yen, New Taiwan dollar, euro, Chinese yuan and South Korean won), the availability of government incentives, decreases or sudden increases of consumer demand, and the impact of such changes and volatility on our financial position and businesses; — the duration and severity of health crisis events, such as an epidemic or pandemic, and its impact across our businesses on demand, personnel, operations, our global supply chains and stock price; — possible disruption in commercial activities or our supply chain due to terrorist activity, cyber-attack, armed conflict, political or financial instability, natural disasters, international trade disputes or major health concerns; — loss of intellectual property due to theft, cyber-attack, or disruption to our information technology infrastructure; — ability to enforce patents and protect intellectual property and trade secrets; — disruption to Corning’s, our suppliers’ and manufacturers’ supply chain, equipment, facilities, IT systems or operations; — product demand and industry capacity; — competitive products and pricing; — availability and costs of critical components, materials, equipment, natural resources and utilities; — new product development and commercialization; — order activity and demand from major customers; — the amount and timing of our cash flows and earnings and other conditions, which may affect our ability to pay our quarterly dividend at the planned level or to repurchase shares at planned levels; — the amount and timing of any future dividends; — the effects of acquisitions, dispositions and other similar transactions; — the effect of regulatory and legal developments; — ability to pace capital spending to anticipated levels of customer demand; — our ability to increase margins through implementation of operational changes, pricing actions and cost reduction measures; — rate of technology change; — adverse litigation; — product and component performance issues; — retention of key personnel; — customer ability to maintain profitable operations and obtain financing to fund ongoing operations and manufacturing expansions and pay receivables when due; — loss of significant customers; — changes in tax laws, regulations and international tax standards; — the impacts of audits by taxing authorities; and — the potential impact of legislation, government regulations and other government action and investigations. 42 Table of Contents
Some of the risks, uncertainties and other factors that could cause actual results to differ materially from those expressed in or implied by the forward-looking statements include, but are not limited to: — global economic trends, competition and geopolitical risks, or an escalation of sanctions, tariffs or other trade tensions between the U.S. and other countries, and related impacts on our businesses’ global supply chains and strategies; — changes in macroeconomic and market conditions and market volatility, including developments and volatility arising from health crisis events, inflation, interest rates, the value of securities and other financial assets, precious metals, oil, natural gas, raw materials and other commodity prices and exchange rates (particularly between the U.S. dollar and the Japanese yen, New Taiwan dollar, euro, Chinese yuan, South Korean won and Mexican peso), decreases or sudden increases of consumer demand, and the impact of such changes and volatility on our financial position and businesses; — the availability of or adverse changes relating to government grants, tax credits or other government incentives; — the duration and severity of health crisis events, such as an epidemic or pandemic, and its impact across our businesses on demand, personnel, operations, our global supply chains and stock price; — possible disruption in commercial activities or our supply chain due to terrorist activity, cyber-attack, armed conflict, political or financial instability, natural disasters, international trade disputes or major health concerns; — loss of intellectual property due to theft, cyber-attack, or disruption to our information technology infrastructure; — ability to enforce patents and protect intellectual property and trade secrets; — disruption to Corning’s, our suppliers’ and manufacturers’ supply chain, equipment, facilities, IT systems or operations; — product demand and industry capacity; — competitive products and pricing; — availability and costs of critical components, materials, equipment, natural resources and utilities; — new product development and commercialization; — order activity and demand from major customers; — the amount and timing of our cash flows and earnings and other conditions, which may affect our ability to pay our quarterly dividend at the planned level or to repurchase shares at planned levels; — the amount and timing of any future dividends; — the effects of acquisitions, dispositions and other similar transactions; — the effect of regulatory and legal developments; — ability to pace capital spending to anticipated levels of customer demand; — our ability to increase margins through implementation of operational changes, pricing actions and cost reduction measures; — rate of technology change; — adverse litigation; — product and component performance issues; — retention of key personnel; — customer ability to maintain profitable operations and obtain financing to fund ongoing operations and manufacturing expansions and pay receivables when due; — loss of significant customers; — changes in tax laws, regulations and international tax standards; — the impacts of audits by taxing authorities; and — the potential impact of legislation, government regulations and other government action and investigations. 42 Table of Contents
However, to help fund cash needs of the U.S. or other international subsidiaries as they arise, we repatriate available cash from certain foreign subsidiaries whose earnings are not permanently reinvested. 35 Table of Contents Debt Facilities and Other Sources of Liquidity We have a commercial paper program pursuant to which we may issue short-term, unsecured commercial paper notes up to a maximum aggregate principal amount outstanding at any one time of $1.5 billion.
However, to help fund cash needs of the U.S. or other international subsidiaries as they arise, we repatriate available cash from certain foreign subsidiaries whose earnings are not permanently reinvested. 36 Table of Contents Debt Facilities and Other Sources of Liquidity We have a commercial paper program pursuant to which we may issue short-term, unsecured commercial paper notes up to a maximum aggregate principal amount outstanding at any one time of $1.5 billion.
Provision for Income Taxes For the year ended December 31, 2023, the effective tax rate differed from the U.S. statutory rate of 21% primarily due to tax credits generated, non-taxable items, foreign derived intangible income and stock compensation windfall deductions, partially offset by changes in valuation allowance assessments, non-deductible items and tax reserves.
For the year ended December 31, 2023, the effective tax rate differed from the U.S. statutory rate of 21% primarily due to tax credits generated, non-taxable items, foreign derived intangible income and stock compensation windfall deductions, partially offset by changes in valuation allowance assessments, non-deductible items and tax reserves.
In addition, other than items discussed, there are no known material trends, favorable or unfavorable, in our capital resources and no expected material changes in the mix of such resources. Our major sources of funding for 2024 and beyond will be our operating cash flow, our existing balances of cash and cash equivalents and proceeds from any issuances of debt.
In addition, other than items discussed, there are no known material trends, favorable or unfavorable, in our capital resources and no expected material changes in the mix of such resources. Our major sources of funding for 2025 and beyond will be our operating cash flow, our existing balances of cash and cash equivalents and proceeds from any issuances of debt.
Under this program, we may issue commercial paper from time to time and will use the proceeds for general corporate purposes. As of December 31, 2023, we did not have any commercial paper outstanding. Our $1.5 billion Revolving Credit Agreement is available to support obligations under the commercial paper program and for general corporate purposes, if needed.
Under this program, we may issue commercial paper from time to time and will use the proceeds for general corporate purposes. As of December 31, 2024, we did not have any commercial paper outstanding. Our $1.5 billion Revolving Credit Agreement is available to support obligations under the commercial paper program and for general corporate purposes, if needed.
In addition, some of our debt instruments contain a cross default provision, whereby an uncured default exceeding a specified amount on one debt obligation, also would be considered a default under the terms of another debt instrument. As of December 31, 2023, we were in compliance with all such provisions.
In addition, some of our debt instruments contain a cross default provision, whereby an uncured default exceeding a specified amount on one debt obligation, also would be considered a default under the terms of another debt instrument. As of December 31, 2024, we were in compliance with all such provisions.
Translated earnings contract gain, net Included in translated earnings contract gain, net, is the impact of foreign currency contracts which economically hedge the translation exposure arising from movements in the Japanese yen, South Korean won, New Taiwan dollar, euro, Chinese yuan and British pound and its impact on net income.
Translated earnings contract gain, net Included in translated earnings contract gain, net, is the impact of foreign currency contracts which economically hedge the translation exposure arising from movements in the Japanese yen, South Korean won, New Taiwan dollar, euro, Chinese yuan, Mexican peso and British pound and its impact on net income.
Included in our foreign exchange forward contracts and foreign exchange option contracts are foreign currency hedges that hedge our cash flow and translation exposure resulting from movements in the Japanese yen, South Korean won, New Taiwan dollar, Chinese yuan, British pound, and euro.
Included in our foreign exchange forward contracts and foreign exchange option contracts are foreign currency hedges that hedge our cash flow and translation exposure resulting from movements in the Japanese yen, South Korean won, New Taiwan dollar, Chinese yuan, British pound, euro and Mexican peso.
The discussion and analysis of the 2022 to 2021 year-over-year changes are not included herein and can be found in “Management’s Discussion and Analysis of Financial Conditions and Results of Operations” in our Annual Report on Form 10-K for the year ended December 31, 2022.
The discussion and analysis of the 2023 to 2022 year-over-year changes are not included herein and can be found in “Management’s Discussion and Analysis of Financial Conditions and Results of Operations” in our Annual Report on Form 10-K for the year ended December 31, 2023.
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. For details of the rates used, please see the footnotes to the “Reconciliation of Non-GAAP Measures” section.
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. For details of the rates used, refer to the footnotes to the “Reconciliation of Non-GAAP Measures” section.
We believe we have sufficient liquidity to fund operations and meet our obligations for the foreseeable future. Such obligations include requirements for acquisitions, capital expenditures, debt repayments, dividend payments and share repurchase programs. We will continue to generate cash from operations and maintain access to our revolving credit facilities and commercial paper programs as discussed in more detail below.
We believe we have sufficient liquidity to fund operations and meet our obligations for the foreseeable future. Such obligations may include requirements for acquisitions, capital expenditures, debt repayments, dividend payments and share repurchases. We will continue to generate cash from operations and maintain access to our revolving credit facilities and commercial paper programs as discussed in more detail below.
Hemlock and Emerging Growth Businesses The decrease was primarily driven by our HSG and Pharmaceutical Technologies businesses due to lower sales, as outlined above. 29 Table of Contents CORE PERFORMANCE MEASURES In managing the Company and assessing our financial performance, we adjust certain measures included in our consolidated financial statements to exclude specific items to arrive at our core performance measures.
Hemlock and Emerging Growth Businesses The decrease was primarily driven by our HSG business due to lower sales, as outlined above. 29 Table of Contents CORE PERFORMANCE MEASURES In managing the Company and assessing our financial performance, we adjust certain measures included in our consolidated financial statements to exclude specific items to arrive at our core performance measures.
Legal Proceedings or Note 12 (Commitments, Contingencies and Guarantees) in the accompanying notes to the consolidated financial statements for a discussion of Corning’s material litigation matters.
Legal Proceedings and Note 12 (Commitments, Contingencies and Guarantees) in the accompanying notes to the consolidated financial statements for a discussion of Corning’s material litigation and environmental matters.
Throughout 2023, actions were taken by management to improve profitability, including raising prices, restoring our productivity levels and normalizing inventory levels, which has resulted in improvements in gross margin as a percentage of net sales throughout the year despite the decline in sales. 25 Table of Contents Selling, General and Administrative Expenses The types of expenses included in selling, general and administrative expenses are: salaries, wages and benefits; share-based compensation expense; travel; sales commissions; professional fees; and depreciation and amortization, utilities and rent for administrative facilities.
Since 2023, actions were taken by management to improve profitability, including raising prices, restoring our productivity levels and normalizing inventory levels, which has resulted in improvements in gross margin as a percentage of net sales. 25 Table of Contents Selling, General and Administrative Expenses The types of expenses included in selling, general and administrative expenses are: salaries, wages and benefits, including variable compensation and share-based compensation expense; travel; sales commissions; professional fees; and depreciation and amortization, utilities and rent for administrative facilities.
Our cash and cash equivalents are held in various locations throughout the world and are generally unrestricted. We utilize a variety of strategies to ensure that our worldwide cash is available in the locations in which it is needed. As of December 31, 2023, approximately 60% of the consolidated cash and cash equivalents were held outside the U.S.
Our cash and cash equivalents are held in various locations throughout the world and are generally unrestricted. We utilize a variety of strategies to ensure that our worldwide cash is available in the locations in which it is needed. As of December 31, 2024, approximately 64% of the consolidated cash and cash equivalents were held outside the U.S.
During the year ended December 31, 2023, the Company distributed an immaterial amount from foreign subsidiaries to their respective U.S. parent companies. As of December 31, 2023, Corning had approximately $1.4 billion of indefinitely reinvested foreign earnings.
During the year ended December 31, 2024, the Company distributed an immaterial amount from foreign subsidiaries to their respective U.S. parent companies. As of December 31, 2024, Corning had approximately $1.6 billion of indefinitely reinvested foreign earnings.
OPEB plans (in millions): Change in ongoing OPEB expense Change in APBO 25 basis point decrease in each spot rate $ 1 $ 12 25 basis point increase in each spot rate $ (1 ) $ (11 ) The above sensitivities reflect the impact of changing one assumption at a time.
OPEB plans (in millions): Change in ongoing OPEB expense Change in APBO 25 basis point decrease in each spot rate $ 1 $ 9 25 basis point increase in each spot rate $ (1) $ (8) The above sensitivities reflect the impact of changing one assumption at a time.
These amounts were reflected within operating activities in the consolidated statements of cash flows. (2) For the year ended December 31, 2023, amount excludes $11 million gain related to a forward contract designated as a net investment hedge, which was reflected within investing activities in the consolidated statements of cash flows.
(2) For the year ended December 31, 2023, amount excludes an $11 million gain related to a forward contract designated as a net investment hedge, which was reflected within investing activities in the consolidated statements of cash flows.
Refer to Note 12 (Commitments, Contingencies and Guarantees) in the accompanying notes to the consolidated financial statements for additional information. ENVIRONMENT Refer to Item 3. Legal Proceedings or Note 12 (Commitments, Contingencies and Guarantees) in the accompanying notes to the consolidated financial statements for information.
Refer to Note 12 (Commitments, Contingencies and Guarantees) in the accompanying notes to the consolidated financial statements for additional information. ENVIRONMENT Refer to Item 3.
Refer to the “Segment Analysis” section of our MD&A below for a discussion of net sales by segment. In 2023 and 2022, sales in international markets accounted for 67% and 65% of total net sales, respectively.
Refer to the “Segment Analysis” section of our MD&A below for a discussion of net sales by segment. In 2024 and 2023, sales in international markets accounted for 64% and 67% of total net sales, respectively.
Therefore, management utilizes constant-currency reporting for the Display Technologies, Specialty Materials, Environmental Technologies and Life Sciences segments to exclude the impact from the Japanese yen, South Korean won, Chinese yuan, New Taiwan dollar and euro, as applicable to the segment. The most significant constant-currency adjustment relates to the Japanese yen exposure within the Display Technologies segment.
Therefore, management utilizes constant-currency reporting for the Display Technologies, Specialty Materials, Environmental Technologies and Life Sciences segments to exclude the impact from the Japanese yen, South Korean won, Chinese yuan, New Taiwan dollar and euro, as applicable to the segment.
As of December 31, 2023, our cash and cash equivalents and available credit capacity included (in millions): December 31, 2023 Cash and cash equivalents $ 1,779 Available credit capacity: U.S. dollar revolving credit facility $ 1,500 Chinese yuan facilities $ 110 Cash and Cash Equivalents We ended 2023 with $1.8 billion of cash and cash equivalents.
As of December 31, 2024, our cash and cash equivalents and available credit capacity included (in millions): December 31, 2024 Cash and cash equivalents $ 1,768 Available credit capacity: U.S. dollar revolving credit facility $ 1,500 Chinese yuan facilities $ 31 Cash and Cash Equivalents We ended 2024 with $1.8 billion of cash and cash equivalents.
We believe fair value assessments are most sensitive to market growth and the corresponding impact on volume and selling prices and that these are also more subjective than manufacturing cost and other assumptions. We believe our current assumptions and estimates are reasonable and appropriate.
We believe fair value assessments are most sensitive to market growth and the corresponding impact on volume and selling prices and that these are also more subjective than manufacturing cost and other assumptions.
Key Balance Sheet Data We fund our working capital with cash from operations and short-term borrowings, including commercial paper, when necessary. In addition, we receive upfront cash from customers relating to long-term supply agreements, as well as cash incentives from government entities generally for capital expansion and related expenses.
Key Balance Sheet Data We fund our working capital with cash from operations and, periodically, short-term and long-term borrowings. In addition, from time to time, we receive upfront cash from customers relating to long-term supply agreements, as well as cash incentives from government entities generally for capital expansion and related expenses.
We have access to certain Chinese yuan-denominated unsecured variable rate loan facilities, whose proceeds are used for capital investment and general corporate purposes. As of December 31, 2023, borrowings totaled $293 million and these facilities had variable interest rates ranging from 3.2% to 4.1% and maturities ranging from 2024 to 2032.
We have access to certain Chinese yuan-denominated unsecured variable rate loan facilities, whose proceeds are used for capital investment and general corporate purposes. As of December 31, 2024, borrowings totaled $314 million and these facilities had variable interest rates ranging from 2.8% to 3.9% and maturities ranging from 2025 to 2032.
Our largest single pension plan is our U.S. qualified plan, which accounted for 77% of our consolidated defined benefit pension plans’ projected benefit obligation, was 92% funded as of December 31, 2023. 37 Table of Contents The funded status of our pension plans is dependent upon multiple factors including actuarial assumptions, interest rates at year-end, prior investment returns and contributions made to the plans.
Our largest single pension plan is our U.S. qualified plan, which accounted for 78% of our consolidated defined benefit pension plans’ projected benefit obligation, was 98% funded as of December 31, 2024. The funded status of our pension plans is dependent upon multiple factors including actuarial assumptions, interest rates at year-end, prior investment returns and contributions made to the plans.
Precious metals are only acquired to support our operations and are not held for trading or other non-manufacturing related purposes. 38 Table of Contents Examples of events or circumstances that may be indicative of impairments include, but are not limited to: • A significant decrease in the market price of an asset; • A significant change in the use of a long-lived asset or its physical condition; • A significant adverse change in legal factors or in the business climate that could affect the value of the asset, including an adverse action or assessment by a regulator; • An accumulation of costs significantly more than the amount originally expected for the acquisition or construction of an asset; • A current-period operating or cash flow loss combined with a history of operating or cash flow losses or a projection or forecast that demonstrates continuing losses associated with the use of an asset; and • A current expectation that, more likely than not, an asset will be sold or otherwise disposed of significantly before the end of its previously estimated useful life.
Examples of events or circumstances that may be indicative of impairments include, but are not limited to: • A significant decrease in the market price of an asset; • A significant change in the use of a long-lived asset or its physical condition; • A significant adverse change in legal factors or in the business climate that could affect the value of the asset, including an adverse action or assessment by a regulator; • An accumulation of costs significantly more than the amount originally expected for the acquisition or construction of an asset; • A current-period operating or cash flow loss combined with a history of operating or cash flow losses or a projection or forecast that demonstrates continuing losses associated with the use of an asset; and • A current expectation that, more likely than not, an asset will be sold or otherwise disposed of significantly before the end of its previously estimated useful life.
During the year ended December 31, 2023, Corning made no voluntary contributions to our domestic defined benefit pension plan and cash contributions to our international pension plans were $25 million. During 2024, the Company anticipates making cash contributions of $11 million to the international pension plans.
During the year ended December 31, 2024, Corning made no voluntary contributions to our domestic defined benefit pension plan and cash contributions to our international pension plans were $9 million. During 2025, the Company anticipates making cash contributions of $10 million to the international pension plans.
See “Items Adjusted from GAAP Measures” for the descriptions of the footnoted reconciling items. 32 Table of Contents Items Adjusted from GAAP Measures Items adjusted from GAAP measures to arrive at core performance measures are as follows: (1) Constant-currency adjustment : As a significant portion of revenues and expenses are denominated in currencies other than the U.S. dollar, management believes it is important to understand the impact on sales and net income of translating these currencies into U.S. dollars.
Items Adjusted from GAAP Measures Items adjusted from GAAP measures to arrive at core performance measures are as follows: (1) Constant-currency adjustment : As a significant portion of revenues and expenses are denominated in currencies other than the U.S. dollar, management believes it is important to understand the impact on sales and net income of translating these currencies into U.S. dollars.
(9) Gain on investments : Amount reflects the gain or loss recognized on investment due to mark-to-market adjustments for the change in fair value or the disposition of the investment. (10) Gain on sale of assets : Amount represents the gain recognized for the sale of assets.
(9) Loss (gain) on investments : Amount reflects the loss or gain recognized on investments due to mark-to-market adjustments for the change in fair value or the disposition of an investment.
The following table sets forth the computation of core earnings per share (in millions, except per share amounts): Year ended December 31, 2023 2022 Core net income $ 1,463 $ 1,794 Weighted-average common shares outstanding - basic 848 843 Effect of dilutive securities: Stock options and other awards 11 14 Weighted-average common shares outstanding - diluted 859 857 Core earnings per share $ 1.70 $ 2.09 RECONCILIATION OF NON-GAAP MEASURES We utilize certain financial measures and key performance indicators that are not calculated in accordance with GAAP to assess our financial and operating performance.
The following table sets forth the computation of core earnings per share (in millions, except per share amounts): Year ended December 31, 2024 2023 Core net income $ 1,699 $ 1,463 Weighted-average common shares outstanding - basic 853 848 Effect of dilutive securities: Stock options and other awards 16 11 Weighted-average common shares outstanding - diluted 869 859 Core earnings per share $ 1.96 $ 1.70 31 Table of Contents RECONCILIATION OF NON-GAAP MEASURES We utilize certain financial measures and key performance indicators that are not calculated in accordance with GAAP to assess our financial and operating performance.
Net income of reportable segment and Hemlock and Emerging Growth Businesses are discussed in detail in the “Segment Analysis” section of our MD&A. Core Earnings per Share Core earnings per share decreased for the year ended December 31, 2023 to $1.70 per share, as a result of the decrease in core net income, as outlined above.
Net income of reportable segment and Hemlock and Emerging Growth Businesses are discussed in detail in the “Segment Analysis” section of our MD&A. Core Earnings per Share Core earnings per share increased for the year ended December 31, 2024 to $1.96 per share, as a result of the increase in core net income, as outlined above.
See “Items Adjusted from GAAP Measures” for the descriptions of the footnoted reconciling items. 31 Table of Contents The following tables reconcile our non-GAAP financial measures to their most directly comparable GAAP financial measure (amounts in millions, except percentages and per share amounts): Year ended December 31, 2023 Net income Income attributable Effective Net before to Corning tax Per sales income taxes Incorporated rate (a)(b) share As reported - GAAP $ 12,588 $ 816 $ 581 20.6 % $ 0.68 Constant-currency adjustment (1) 992 744 550 0.64 Translation gain on Japanese yen-denominated debt (2) (100 ) (81 ) (0.09 ) Translated earnings contract gain (3) (161 ) (130 ) (0.15 ) Acquisition-related costs (4) 131 90 0.10 Discrete tax items and other tax-related adjustments (5) 34 0.04 Restructuring, impairment and other charges and credits (6) 471 378 0.44 Litigation, regulatory and other legal matters (7) 61 54 0.06 Pension mark-to-market adjustment (8) 15 12 0.01 Gain on investments (9) (10 ) (10 ) (0.01 ) Gain on sale of assets (10) (20 ) (15 ) (0.02 ) Core performance measures $ 13,580 $ 1,947 $ 1,463 20.7 % $ 1.70 (a) Based upon statutory tax rates in the specific jurisdiction for each event.
(b) The calculation of the effective tax rate for GAAP and core excludes net income attributable to non-controlling interest of approximately $86 million and $92 million, respectively. 32 Table of Contents Year ended December 31, 2023 Net sales Income before income taxes Net income attributable to Corning Incorporated Effective tax rate (a)(b) Per Share As reported - GAAP $ 12,588 $ 816 $ 581 20.6 % $ 0.68 Constant-currency adjustment (1) 992 744 550 0.64 Translation gain on Japanese yen-denominated debt, net (2) (100) (81) (0.09) Translated earnings contract gain, net (3) (161) (130) (0.15) Acquisition-related costs (4) 131 90 0.10 Discrete tax items and other tax-related adjustments (5) 34 0.04 Restructuring, impairment and other charges and credits (6) 471 378 0.44 Litigation, regulatory and other legal matters (7) 61 54 0.06 Pension mark-to-market adjustment (8) 15 12 0.01 Gain on investments (9) (10) (10) (0.01) Gain on sale of assets (10) (20) (15) (0.02) Core performance measures $ 13,580 $ 1,947 $ 1,463 20.7 % $ 1.70 (a) Based upon statutory tax rates in the specific jurisdiction for each event.
Our Revolving Credit Agreement includes affirmative and negative covenants with which we must comply, including a leverage (debt to capital ratio) financial covenant. The required leverage ratio is a maximum of 60%. As of December 31, 2023, our leverage using this measure was approximately 39%. As of December 31, 2023, we were in compliance with all such covenants.
There were no outstanding amounts under this facility as of December 31, 2024 and 2023. Our Revolving Credit Agreement includes affirmative and negative covenants with which we must comply, including a leverage (debt to capital ratio) financial covenant. The required leverage ratio is a maximum of 60%. As of December 31, 2024, our leverage using this measure was approximately 39%.
The following table presents balance sheet and working capital measures (in millions): December 31, 2023 2022 Working capital $ 2,893 $ 2,278 Current ratio 1.7:1 1.4:1 Trade accounts receivable, net of doubtful accounts $ 1,572 $ 1,721 Days sales outstanding 47 45 Inventories $ 2,666 $ 2,904 Inventory turns 3.2 3.4 Days payable outstanding (1) 52 52 Long-term debt $ 7,206 $ 6,687 Total debt $ 7,526 $ 6,911 Total debt to total capital 39 % 36 % (1) Includes trade payables only.
The following table presents balance sheet and working capital measures (in millions): December 31, 2024 2023 Working capital $ 3,073 $ 2,893 Current ratio 1.6:1 1.7:1 Trade accounts receivable, net of doubtful accounts $ 2,053 $ 1,572 Days sales outstanding 53 47 Inventories $ 2,724 $ 2,666 Inventory turns 3.2 3.2 Days payable outstanding (1) 54 52 Long-term debt $ 6,885 $ 7,206 Total debt $ 7,211 $ 7,526 Total debt to total capital 39% 39% (1) Includes trade payables only.
(b) The calculation of the effective tax rate for GAAP and Core excludes net income attributable to non-controlling interest of approximately $67 million and $81 million, respectively.
(b) The calculation of the effective tax rate GAAP and core excludes net income attributable to non-controlling interest of approximately $67 million and $81 million, respectively. Refer to “Items Adjusted from GAAP Measures” for the descriptions of the footnoted reconciling items.
For a reconciliation of non-GAAP performance measures to their most directly comparable GAAP financial measure, please see “Reconciliation of Non-GAAP Measures.” Results of Operations – Core Performance Measures The following table presents selected highlights from our operations, excluding certain items, (in millions, except per share amounts): Year ended December 31, % change 2023 2022 23 vs. 22 Core net sales $ 13,580 $ 14,805 (8 )% Core net income $ 1,463 $ 1,794 (18 )% Core earnings per share $ 1.70 $ 2.09 (19 )% Core Net Sales For the year ended December 31, 2023, we generated core net sales of $13.6 billion compared to core net sales for the year ended December 31, 2022 of $14.8 billion.
For a reconciliation of non-GAAP performance measures to their most directly comparable GAAP financial measure, refer to “Reconciliation of Non-GAAP Measures.” 30 Table of Contents Results of Operations – Core Performance Measures The following table presents selected highlights from our operations, excluding certain items, (in millions, except per share amounts): Year ended December 31, % change 2024 2023 24 vs. 23 Core net sales $ 14,469 $ 13,580 7 % Core net income $ 1,699 $ 1,463 16 % Core earnings per share $ 1.96 $ 1.70 15 % Core Net Sales For the year ended December 31, 2024, we generated core net sales of $14.5 billion compared to core net sales for the year ended December 31, 2023 of $13.6 billion.
For the year ended December 31, 2022, the effective tax rate differed from the U.S. statutory rate of 21% primarily due to changes in tax reserves, foreign earnings and valuation allowance assessments, partially offset by changes in tax credits generated and foreign derived intangible income. 26 Table of Contents The effective tax rate for the year ended December 31, 2023 decreased compared to the year ended December 31, 2022 primarily due to changes in pretax earnings, non-taxable items and tax reserves, partially offset by changes in valuation allowance assessments, non-deductible items and foreign derived intangible income.
Provision for Income Taxes For the year ended December 31, 2024, the effective tax rate differed from the U.S. statutory rate of 21% primarily due to non-deductible items, including the release of cumulative translation losses and changes in tax reserves, partially offset by non-taxable items, tax credits generated, foreign derived intangible income and changes in valuation allowance assessments.
The following estimates are considered by management to be the most critical to the understanding of the consolidated financial statements as they require significant judgments that could materially impact our results of operations, financial position and cash flows.
This requires us to make estimates and assumptions that affect reported amounts and related disclosures. Actual results could differ from those estimates. The following estimates are considered by management to be the most critical to the understanding of the consolidated financial statements as they require significant judgments that could materially impact our results of operations, financial position and cash flows.
If Corning elects not to repurchase the common shares and SDC sells the common shares on the open market, Corning will be 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. • The remaining 58 million shares of common shares are subject to a seven-year lock-up period expiring in 2027.
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.
(3) Translated earnings contract : Amount reflects the impact of the realized and unrealized gains and losses from the Japanese yen, South Korean won, Chinese yuan, euro and New Taiwan dollar-denominated foreign currency hedges related to translated earnings, as well as the unrealized gains and losses of our British pound-denominated foreign currency hedges related to translated earnings.
(3) Translated earnings contract : Amount reflects the impact of the realized and unrealized gains and losses from the Japanese yen, South Korean won, Chinese yuan, euro, New Taiwan dollar and Mexican peso-denominated foreign currency hedges related to translated earnings, as well as the unrealized gains and losses of our British pound-denominated foreign currency hedges related to translated earnings. 33 Table of Contents (4) Acquisition-related costs : Amount reflects intangible amortization, inventory valuation adjustments and external acquisition-related deal costs, as well as other transaction related costs.
This review considers all our precious metals that are either in place in the production process; in reclamation, fabrication, or refinement in anticipation of re-use; or awaiting use to support increased capacity.
This review considers all our precious metals that are either in place in the production process; in reclamation, fabrication, or refinement in anticipation of re-use; or awaiting use to support increased capacity. Precious metals are only acquired to support our operations and are not held for trading or other non-manufacturing related purposes.
As of December 31, 2023, approximately $3.3 billion remains available under our 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.
Share Repurchases In 2019, the Board authorized the repurchase of up to $5.0 billion of additional common stock (“2019 Authorization”). As of December 31, 2024, approximately $3.1 billion remains available under our 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.
Net cash used in investing activities improved by $355 million for the year ended December 31, 2023, when compared to the same period last year, primarily driven by lower capital expenditures of $214 million, lower premiums paid on hedging contracts of $66 million and higher realized gains on translated earnings contracts of $26 million.
Net cash used in investing activities improved by $256 million for the year ended December 31, 2024, when compared to the same period last year, primarily driven by lower capital expenditures of $425 million, partially offset by higher premiums paid on hedging contracts of $89 million.
(6) Restructurin g, impairment and other charges and credits : Amount reflects certain restructuring, impairment losses and other charges and credits, as well as other expenses, including severance, accelerated depreciation, asset write-offs and facility repairs resulting from power outages, which are not related to ongoing operations.
(6) Restructuring, impairment and other charges and credits : Amount reflects certain restructuring, impairment losses and other charges and credits, as well as other expenses, including severance, accelerated depreciation, asset write-offs and facility repairs resulting from power outages, and the recognition of cumulative foreign currency translation adjustments upon the substantial liquidation or disposition of a foreign entity, which are not related to ongoing operations.
Our debt instruments contain customary event of default provisions, which allow the lenders the option of accelerating all obligations upon the occurrence of certain events.
As of December 31, 2024, we were in compliance with all such covenants. Our debt instruments contain customary event of default provisions, which allow the lenders the option of accelerating all obligations upon the occurrence of certain events.
Constant-currency rates are as follows and are applied to all periods presented and to all foreign exchange exposures during the period, even though we may be less than 100% hedged: Currency Japanese yen Korean won Chinese yuan New Taiwan dollar Euro Rate ¥107 ₩1,175 ¥6.7 NT$31 €.81 (2) Translation of Japanese yen-denominated debt : Amount reflects the gain or loss on the translation of our yen-denominated debt to U.S. dollars.
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 (2) Translation of Japanese yen-denominated debt : Amount reflects the gain or loss on the translation of our yen-denominated debt to U.S. dollars, net of a $15 million loss for the year ended December 31, 2024, related to the change in the fair value of our cross currency swap contracts, recorded in other (expense) income, net in the consolidated statements of income .
As a result, it is possible that our estimate of the benefits we will realize for uncertain tax positions may change when we become aware of new information affecting these judgments and estimates. 39 Table of Contents Fair value measures As required, we use two kinds of inputs to determine the fair value of assets and liabilities: observable and unobservable.
As a result, it is possible that our estimate of the benefits we will realize for uncertain tax positions may change when we become aware of new information affecting these judgments and estimates.
Display Technologies The increase in segment net income was primarily driven by the increase in sales, as outlined above, and improved profitability which includes price increases in the second half of 2023. Specialty Materials The decrease in segment net income was primarily driven by the decline in sales volume, as outlined above, and the inflationary impact on raw materials.
Optical Communications The increase in segment net income was primarily driven by strong incremental profit on higher sales volume, as outlined above. Display Technologies The increase in segment net income was primarily driven by the increase in sales, as outlined above, and improved profitability which includes the impact of price increases.
Of these amounts, we believe $1.2 billion would have been collected during the normal course of business within each year ended December 31, 2023 and 2022. 34 Table of Contents Cash Flows The following table presents a summary of cash flow data (in millions): Year ended December 31, 2023 2022 Net cash provided by operating activities $ 2,005 $ 2,615 Net cash used in investing activities $ (1,000 ) $ (1,355 ) Net cash used in financing activities $ (883 ) $ (1,649 ) Net cash provided by operating activities decreased by $610 million for the year ended December 31, 2023, when compared to the same period in the prior year, primarily driven by the decrease in net income partially offset by improvements in working capital, mostly due to the reduction in inventory levels.
By utilizing these types of programs, we accelerated the collection of $182 million in accounts receivable during the three months ended December 31, 2024, which would have been collected during the normal course of business in the following quarter. 35 Table of Contents Cash Flows The following table presents a summary of cash flow data (in millions): Year ended December 31, 2024 2023 Net cash provided by operating activities $ 1,939 $ 2,005 Net cash used in investing activities $ (744) $ (1,000) Net cash used in financing activities $ (1,164) $ (883) Net cash provided by operating activities decreased by $66 million for the year ended December 31, 2024, when compared to the same period in the prior year, primarily driven by the decrease in net income partially offset by improvements in working capital.
Selling, general and administrative expenses decreased by $55 million, or 3%, and increased as a percentage of net sales when compared to 2022, primarily due to the decline in net sales.
Selling, general and administrative expenses increased by $88 million, or 5%, when compared to 2023 primarily due to the increase in net sales, as discussed above, and remained consistent as a percentage of net sales.
Income taxes We are required to exercise judgment about our future results in assessing the realizability of our deferred tax assets. Inherent in this estimation process is the requirement for us to estimate future book and taxable income and possible tax planning strategies.
Inherent in this estimation process is the requirement for us to estimate future book and taxable income and possible tax planning strategies. These estimates require us to exercise judgment about our future results, the prudence and feasibility of possible tax planning strategies and the economic environments in which we do business.
The Company utilizes constant-currency reporting for Display Technologies, Specialty Materials, Environmental Technologies and Life Sciences segments for the Japanese yen, Korean won, Chinese yuan, New Taiwan dollar and euro, as applicable to the 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.
The Company utilizes constant-currency reporting for Display Technologies, Specialty Materials, Environmental Technologies and Life Sciences segments for the Japanese yen, Korean won, Chinese yuan, New Taiwan dollar and euro, as applicable to the segment.
Gross margin decreased by $575 million, or 13% and gross margin as a percentage of net sales decreased by 1 percentage point when compared to 2022. The decrease in gross margin is primarily driven by the decrease in net sales, as discussed above.
Gross margin increased by $345 million, or 9% and gross margin as a percentage of net sales increased by 2 percentage points when compared to 2023. The increase in gross margin is primarily driven by the increase in net sales, as discussed above.
The following table presents segment net sales by reportable segment and Hemlock and Emerging Growth Businesses (in millions): Year ended December 31, $ change % change 2023 2022 23 vs. 22 23 vs. 22 Optical Communications $ 4,012 $ 5,023 $ (1,011 ) (20 )% Display Technologies 3,532 3,306 226 7 % Specialty Materials 1,865 2,002 (137 ) (7 )% Environmental Technologies 1,766 1,584 182 11 % Life Sciences 959 1,228 (269 ) (22 )% Net sales of reportable segments 12,134 13,143 (1,009 ) (8 )% Hemlock and Emerging Growth Businesses 1,446 1,662 (216 ) (13 )% Net sales of reportable segments and Hemlock and Emerging Growth Businesses (1) $ 13,580 $ 14,805 $ (1,225 ) (8 )% (1) Refer to Note 17 (Reportable Segments) in the accompanying notes to the consolidated financial statements for the reconciliation to consolidated net sales.
The following table presents segment net sales by reportable segment and Hemlock and Emerging Growth Businesses (in millions): Year ended December 31, $ change % change 2024 2023 24 vs. 23 24 vs. 23 Optical Communications $ 4,657 $ 4,012 $ 645 16 % Display Technologies 3,872 3,532 340 10 % Specialty Materials 2,018 1,865 153 8 % Environmental Technologies 1,665 1,766 (101) (6) % Life Sciences 979 959 20 2 % Net sales of reportable segments 13,191 12,134 1,057 9 % Hemlock and Emerging Growth Businesses 1,278 1,446 (168) (12) % Net sales of reportable segments and Hemlock and Emerging Growth Businesses (1) $ 14,469 $ 13,580 $ 889 7 % (1) Refer to Note 17 (Reportable Segments) in the accompanying notes to the consolidated financial statements for the reconciliation to consolidated net sales.
The following table provides detailed information on the impact of translated earnings contract gain, net (in millions): Income before tax Net income Income before tax Net income Income before tax Net income 2023 2022 2023 vs. 2022 Hedges related to translated earnings: Realized gain, net (1) (2) $ 247 $ 198 $ 320 $ 245 $ (73 ) $ (47 ) Unrealized (loss) gain, net (3) (86 ) (68 ) 31 24 (117 ) (92 ) Total translated earnings contract gain, net $ 161 $ 130 $ 351 $ 269 $ (190 ) $ (139 ) (1) For the years ended December 31, 2023 and 2022, amount includes pre-tax realized losses of $68 million and pre-tax realized gains of $20 million, respectively, related to the expiration of option contracts.
The following table provides detailed information on the impact of translated earnings contract gain, net (in millions): Income before tax Net income Income before tax Net income Income before tax Net income 2024 2023 2024 vs. 2023 Hedges related to translated earnings: Realized gain, net (1) (2) $ 194 $ 149 $ 247 $ 198 $ (53) $ (49) Unrealized loss, net (111) (85) (86) (68) (25) (17) Total translated earnings contract gain, net $ 83 $ 64 $ 161 $ 130 $ (78) $ (66) (1) For the years ended December 31, 2024 and 2023, amount includes non-cash pre-tax realized losses of $85 million and $68 million, respectively, related to the premiums of expired option contracts.
Environmental Technologies The increase in segment net income was primarily driven by the increase in sales, as outlined above, and as a result of improvements from productivity actions. Life Sciences The decrease in segment net income was primarily driven by lower sales volume, as outlined above.
Specialty Materials The increase in segment net income was primarily driven by strong incremental profit on higher volumes. Environmental Technologies The decrease in segment net income was primarily driven by the decrease in sales, as outlined above. Life Sciences The increase in segment net income was primarily driven by profitability improvements from productivity actions taken.
Research, Development and Engineering Expenses Research, development and engineering expenses increased by $29 million, or 3%, and increased as a percentage of net sales when compared to 2022, primarily due to the decline in net sales.
Research, Development and Engineering Expenses Research, development and engineering expenses increased by $13 million, or 1%, and decreased as a percentage of net sales by 1 percentage point when compared to 2023.
Observable inputs are based on market data or independent sources, while unobservable inputs are based on our own market assumptions. Once inputs have been characterized, we prioritize the inputs used to measure fair value into one of three broad levels. Characterization of fair value inputs is required for those accounting pronouncements that prescribe or permit fair value measurement.
Once inputs have been characterized, we prioritize the inputs used to measure fair value into one of three broad levels. Characterization of fair value inputs is required for those accounting pronouncements that prescribe or permit fair value measurement. In addition, observable market data must be used when available and the highest-and-best-use measure should be applied to non-financial assets.
(3) The impact to income for the years ended December 31, 2023 and 2022 was primarily driven by Japanese yen, South Korean won and euro-denominated hedges of translated earnings.
The impact to income for the year ended December 31, 2023 was primarily driven by realized gains from our Japanese yen-denominated hedges, partially offset by realized losses from our South Korean won and Chinese yuan-denominated hedges.
Year ended December 31, 2022 Net income Income attributable Effective Net before to Corning tax Per sales income taxes Incorporated rate (a)(b) share As reported - GAAP $ 14,189 $ 1,797 $ 1,316 22.9 % $ 1.54 Constant-currency adjustment (1) 616 480 369 0.43 Translation gain on Japanese yen-denominated debt (2) (191 ) (146 ) (0.17 ) Translated earnings contract gain (3) (348 ) (267 ) (0.31 ) Acquisition-related costs (4) 140 109 0.13 Discrete tax items and other tax-related adjustments (5) 84 0.10 Restructuring, impairment and other charges and credits (6) 414 316 0.37 Litigation, regulatory and other legal matters (7) 100 77 0.09 Pension mark-to-market adjustment (8) 11 10 0.01 Gain on investments (9) (8 ) (8 ) (0.01 ) Gain on sale of business (11) (53 ) (41 ) (0.05 ) Contingent consideration (12) (32 ) (25 ) (0.03 ) Core performance measures $ 14,805 $ 2,310 $ 1,794 19.3 % $ 2.09 (a) Based upon statutory tax rates in the specific jurisdiction for each event.
The following tables reconcile our non-GAAP financial measures to their most directly comparable GAAP financial measure (amounts in millions, except percentages and per share amounts): Year ended December 31, 2024 Net sales Income before income taxes Net income attributable to Corning Incorporated Effective tax rate (a)(b) Per Share As reported - GAAP $ 13,118 $ 813 $ 506 27.2 % $ 0.58 Constant-currency adjustment (1) 1,309 989 773 0.89 Translation gain on Japanese yen-denominated debt, net (2) (104) (80) (0.09) Translated earnings contract gain, net (3) (83) (64) (0.07) Acquisition-related costs (4) 128 92 0.11 Discrete tax items and other tax-related adjustments (5) 21 0.02 Restructuring, impairment and other charges and credits (6) 42 407 374 0.43 Litigation, regulatory and other legal matters (7) 12 9 0.01 Pension mark-to-market adjustment (8) 3 2 Loss on investments (9) 23 22 0.03 Loss on sale of assets (10) 27 20 0.02 Loss on sale of business (11) 31 24 0.03 Core performance measures $ 14,469 $ 2,246 $ 1,699 20.3 % $ 1.96 (a) Based upon statutory tax rates in the specific jurisdiction for each event.
Pursuant to the SRA, with respect to the remaining 80 million common shares outstanding held by SDC: • SDC has the option to sell an additional 22 million common shares 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.
Uses of Cash Share Repurchase Agreement Pursuant to the Share Repurchase Agreement (“SRA”) with Samsung Display Co., Ltd. (“SDC”), 22 million common shares held by SDC 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.
Refer to Note 11 (Employee Retirement Plans) in the accompanying notes to the consolidated financial statements for additional information. Commitments, Contingencies and Guarantees A summary of our contractual obligations and other commercial commitments as of December 31, 2023 are detailed within Note 12 (Commitments, Contingencies and Guarantees) in the accompanying notes to the consolidated financial statements.
Commitments, Contingencies and Guarantees A summary of our contractual obligations and other commercial commitments as of December 31, 2024 and details of our commitments as of December 31, 2024 related to executed leases that have not yet commenced are included within Note 12 (Commitments, Contingencies and Guarantees) and Note 5 (Leases), respectively, in the accompanying notes to the consolidated financial statements.
Hemlock and Emerging Growth Businesses The decrease was primarily driven by a decrease in our HSG business due to declines in solar-grade polysilicon prices and lower sales in our Pharmaceutical Technologies business as the last of the volume commitments for COVID-related products were completed in the second quarter. 28 Table of Contents The following table presents segment net income by reportable segment and Hemlock and Emerging Growth Businesses (in millions): Year ended December 31, $ change % change 2023 2022 23 vs. 22 23 vs. 22 Optical Communications $ 478 $ 661 $ (183 ) (28 )% Display Technologies 842 769 73 9 % Specialty Materials 202 340 (138 ) (41 )% Environmental Technologies 386 292 94 32 % Life Sciences 50 153 (103 ) (67 )% Net income of reportable segments 1,958 2,215 (257 ) (12 )% Hemlock and Emerging Growth Businesses 15 39 (24 ) (62 )% Net income of reportable segments and Hemlock and Emerging Growth Businesses (1) $ 1,973 $ 2,254 $ (281 ) (12 )% (1) Refer to Note 17 (Reportable Segments) in the accompanying notes to the consolidated financial statements for the reconciliation to consolidated net income.
Hemlock and Emerging Growth Businesses The decrease was primarily driven by a decrease in our HSG business driven by lower volume and lower pricing for solar-grade polysilicon. 28 Table of Contents The following table presents segment net income by reportable segment and Hemlock and Emerging Growth Businesses (in millions): Year ended December 31, $ change % change 2024 2023 24 vs. 23 24 vs. 23 Optical Communications $ 612 $ 478 $ 134 28 % Display Technologies 1,006 842 164 19 % Specialty Materials 260 202 58 29 % Environmental Technologies 358 386 (28) (7) % Life Sciences 63 50 13 26 % Net income of reportable segments 2,299 1,958 341 17 % Hemlock and Emerging Growth Businesses (55) 15 (70) * Net income of reportable segments and Hemlock and Emerging Growth Businesses (1) $ 2,244 $ 1,973 $ 271 14 % * Not meaningful (1) Refer to Note 17 (Reportable Segments) in the accompanying notes to the consolidated financial statements for the reconciliation to consolidated net income.
Net cash used in financing activities improved by $766 million for the year ended December 31, 2023, when compared to the same period last year, primarily driven by the $918 million proceeds received from the issuance of euro-denominated notes in May 2023 and the purchase of common stock during the year ended December 31, 2022 of $221 million compared to no purchases of common stock made during year ended December 31, 2023.
During the year ended December 31, 2023, net cash used in financing activities primarily related to dividend payments of $989 million and the redemption of preferred stock of $507 million, partially offset by $918 million in proceeds received from the issuance of euro-denominated notes in May 2023.
(7) Litigation, regulatory and other legal matters : Amount reflects developments in commercial litigation, intellectual property disputes, adjustments to our estimated liability for environmental-related items and other legal matters.
The activity in 2023 primarily relates to asset write-offs associated with the exit of certain facilities and product lines and severance charges across all segments. (7) Litigation, regulatory and other legal matters : Amount reflects developments in commercial litigation, intellectual property disputes, adjustments to our estimated liability for environmental-related items and other legal matters.
These hedging instruments may include, but are not limited to, foreign exchange forward or option contracts and foreign-denominated debt. For the year ended December 31, 2023, the adjustment primarily relates to our Japanese yen exposure due to the difference in the average spot rate compared to our core rate.
For the year ended December 31, 2024, the adjustment primarily relates to our Japanese yen exposure due to the difference in the average spot rate compared to our core rate.
Therefore, as we expect our markets to normalize in the midterm, we believe we are well-positioned with the production capacity and technical capabilities necessary to capture this growth opportunity and deliver powerful incremental profit and cash to our shareholders. 2024 Corporate Outlook We expect core net sales of approximately $3.1 billion for the first quarter of 2024. 24 Table of Contents RESULTS OF OPERATIONS The following table presents selected highlights from our operations (in millions): Year ended December 31, % change 2023 2022 23 vs. 22 Net sales $ 12,588 $ 14,189 (11 %) Cost of sales $ 8,657 $ 9,683 (11 %) Gross margin $ 3,931 $ 4,506 (13 %) Gross margin % 31 % 32 % Selling, general and administrative expenses $ 1,843 $ 1,898 (3 %) as a % of net sales 15 % 13 % Research, development and engineering expenses $ 1,076 $ 1,047 3 % as a % of net sales 9 % 7 % Translated earnings contract gain, net $ 161 $ 351 (54 %) Income before income taxes $ 816 $ 1,797 (55 %) Provision for income taxes $ (168 ) $ (411 ) 59 % Effective tax rate 20.6 % 22.9 % Net income attributable to Corning Incorporated $ 581 $ 1,316 (56 %) Comprehensive income attributable to Corning Incorporated $ 363 $ 661 (45 %) Net Sales Net sales for the year ended December 31, 2023 decreased by $1.6 billion, or 11%, when compared to the same period in 2022.
Overall, we expect our businesses to benefit from a convergence of cyclical and secular trends, driving sales and profit growth across the company through 2026, and we are energized about the tremendous value Springboard creates for shareholders. 2025 Corporate Outlook We expect core net sales of approximately $3.6 billion for the first quarter of 2025. 24 Table of Contents RESULTS OF OPERATIONS The following table presents selected highlights from our operations (in millions): Year ended December 31, % change 2024 2023 24 vs. 23 Net sales $ 13,118 $ 12,588 4 % Cost of sales $ 8,842 $ 8,657 2 % Gross margin $ 4,276 $ 3,931 9 % Gross margin % 33 % 31 % Selling, general and administrative expenses $ 1,931 $ 1,843 5 % as a % of net sales 15 % 15 % Research, development and engineering expenses $ 1,089 $ 1,076 1 % as a % of net sales 8 % 9 % Translated earnings contract gain, net $ 83 $ 161 (48 %) Income before income taxes $ 813 $ 816 0 % Provision for income taxes $ 221 $ 168 32 % Effective tax rate 27.2 % 20.6 % Net Sales Net sales for the year ended December 31, 2024 increased by $530 million, or 4%, when compared to the same period in 2023.
The decrease was primarily driven by a decline in segment sales for Optical Communications of $1.0 billion, Life Sciences of $0.3 billion and Hemlock and Emerging Growth Businesses of $0.2 billion, partially offset by an increase in segment sales for Environmental Technologies of $0.2 billion.
The increase in core net sales of $0.9 billion was primarily driven by higher reportable segment net sales in Optical Communications of $645 million, Display Technologies of $340 million and Specialty Materials of $153 million, partially offset by a decrease in net sales from Hemlock and Emerging Growth Businesses of $168 million and Environmental Technologies of $101 million.
These categories use observable inputs only and are measured using a market approach based on quoted prices in markets considered active or in markets in which there are few transactions. Derivative assets and liabilities may include foreign exchange forward contracts and foreign exchange option contracts that are measured using observable quoted prices for similar assets and liabilities.
Derivative assets and liabilities may include foreign exchange forward contracts and foreign exchange option contracts that are measured using observable quoted prices for similar assets and liabilities.
Display Technologies The increase in segment net sales was primarily due to higher volumes, primarily attributable to the recovery of panel maker utilization, as well as a result of price increases in the second half of 2023.
Display Technologies The increase in segment net sales was primarily due to higher sales volume, attributable to increased panel maker utilization and growth in the retail and glass market driven by larger average screen size, as well as pricing actions taken in the second half of 2023 and the second half of 2024.
During the years ended December 31, 2023 and 2022, cash flows provided by operating activities were $2.0 billion and $2.6 billion, respectively.
Sources of Liquidity We generate strong ongoing cash flows from operations, which is our principal source of liquidity. During the years ended December 31, 2024 and 2023, cash flows provided by operating activities were $1.9 billion and $2.0 billion, respectively.
As a well-known seasoned issuer, we filed an automatic shelf registration with the SEC on December 1, 2023. Under this shelf registration we may offer, from time to time, debt securities, common stock, preferred stock, depositary shares and warrants. Customer Deposits, Deferred Revenue and Government Incentives We receive cash deposits or consideration, generally non-refundable, from customers under long-term supply agreements.
As of December 31, 2024, Corning had 0.2 billion Chinese yuan of unused capacity, equivalent to approximately $31 million. As a well-known seasoned issuer, we filed an automatic shelf registration statement with the SEC on December 1, 2023. Under this shelf registration statement we may offer, from time to time, debt securities, common stock, preferred stock, depository shares and warrants.
In addition, observable market data must be used when available and the highest-and-best-use measure should be applied to non-financial assets. Our major categories of financial assets and liabilities required to be measured at fair value are short-term and long-term investments, certain pension asset investments and derivatives.
Our major categories of financial assets and liabilities required to be measured at fair value are short-term and long-term investments, certain pension asset investments and derivatives. These categories use observable inputs only and are measured using a market approach based on quoted prices in markets considered active or in markets in which there are few transactions.
The maturity schedule of our existing long-term debt does not require significant cash outflows, with approximately $1.4 billion due over the next five years. Defined Benefit Pension Plans Our global pension plans, including our unfunded and non-qualified plans, were 81% funded as of December 31, 2023.
We expect our 2025 capital expenditures to be approximately $1.3 billion. Current Maturities of Short and Long-Term Debt As of December 31, 2024, the maturity schedule of our existing long-term debt does not require significant cash outflows, with approximately $1.4 billion due over the next five years, of which $326 million is due in less than one year.
The decrease in core net income of $331 million was driven by lower reportable segment net income in Optical Communications of $183 million, Specialty Materials of $138 million and Life Sciences of $103 million, offset by an increase in Environmental Technologies of $94 million and Display Technologies of $73 million.
The increase in core net income of $0.2 billion was driven by higher reportable segment net income in Display Technologies of $164 million, Optical Communications of $134 million, Specialty Materials of $58 million, partially offset by a decrease from Hemlock and Emerging Growth Businesses of $70 million.
Net sales of reportable segment and Hemlock and Emerging Growth Businesses are discussed in detail in the “Segment Analysis” section of our MD&A. 30 Table of Contents Core Net Income For the year ended December 31, 2023, we generated core net income of $1.5 billion, or $1.70 per share, compared to core net income generated for the year ended December 31, 2022 of $1.8 billion, or $2.09 per share.
Net sales of reportable segment and Hemlock and Emerging Growth Businesses are discussed in detail in the “Segment Analysis” section of our MD&A.
Capital Expenditures Capital expenditures were $1.4 billion, $1.6 billion and $1.6 billion during the years ended December 31, 2023, 2022 and 2021, respectively. We expect our 2024 capital expenditures to be lower than 2023.
On February 12, 2025, our Board of Directors declared a quarterly dividend of $0.28 per share of common stock, which will be payable on March 28, 2025. Capital Expenditures Capital expenditures were $1.0 billion, $1.4 billion and $1.6 billion during the years ended December 31, 2024, 2023 and 2022, respectively.
CRITICAL ACCOUNTING ESTIMATES Our consolidated financial statements are prepared in conformity with accounting principles generally accepted in the United States of America. This requires us to make estimates and assumptions that affect reported amounts and related disclosures. Actual results could differ from those estimates.
Legal Proceedings and Note 12 (Commitments, Contingencies and Guarantees) in the accompanying notes to the consolidated financial statements for information. 38 Table of Contents CRITICAL ACCOUNTING ESTIMATES Our consolidated financial statements are prepared in conformity with accounting principles generally accepted in the United States of America.

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

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Biggest changeWhen this revenue is translated back to U.S. dollars, we are exposed to foreign exchange rate movements in the Japanese yen. To protect translated earnings against movements in the Japanese yen, we have entered into a series of option contracts and average rate forwards. We use a sensitivity analysis to assess the market risk associated with foreign currency exposure.
Biggest changeWhen this revenue is translated back to U.S. dollars, we are exposed to foreign exchange rate movements in the Japanese yen. To protect translated earnings against movements in the Japanese yen, we have entered into a series of option contracts and average rate forwards.
As of December 31, 2023, with respect to open foreign exchange forward and option contracts and foreign denominated debt with values exposed to exchange rate movements, a 10% adverse movement in quoted foreign currency exchange rates could result in a loss in fair value of these instruments of $0.6 billion compared to $0.8 billion as of December 31, 2022.
As of December 31, 2024, with respect to open foreign exchange forward, option and cross currency swap contracts and foreign denominated debt with values exposed to exchange rate movements, a 10% adverse movement in quoted foreign currency exchange rates could result in a loss in fair value of these instruments of $0.8 billion compared to $0.6 billion as of December 31, 2023.
Specific to the Japanese yen, a 10% adverse movement in quoted yen exchange rates could result in a loss in fair value of these instruments of $0.3 billion and $0.4 billion as of December 31, 2023 and 2022, respectively.
Specific to the Japanese yen, a 10% adverse movement in quoted yen exchange rates could result in a loss in fair value of these instruments of $0.3 billion as of December 31, 2024 and 2023, respectively.
Our most significant foreign currency exposure relates to the Japanese yen, South Korean won, New Taiwan dollar, Chinese yuan and euro. We seek to mitigate the impact of exchange rate movements in our income statement by using over-the-counter (“OTC”) derivative instruments including foreign exchange forward and option contracts.
Our most significant foreign currency exposure relates to the Japanese yen, South Korean won, New Taiwan dollar, Chinese yuan, euro and Mexican peso. We seek to mitigate the impact of exchange rate movements in our consolidated statements of income by using over-the-counter (“OTC”) derivative instruments including foreign exchange forward and option contracts.
Management expects that these hypothetical losses from a 10% adverse movement in quoted foreign currency exchange rates on the derivative financial instruments should largely offset gains on the assets, liabilities and future transactions being hedged.
Management expects that these hypothetical losses from a 10% adverse movement in quoted foreign currency exchange rates on the derivative financial instruments should largely offset gains on the assets, liabilities and future transactions being hedged. 43 Table of Contents
Added
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.
Added
In 2024, to economically lock in unrealized foreign exchange gains, the Company entered into the cross currency swap contracts relating to a portion of the Company’s Japanese yen-denominated debt. We use a sensitivity analysis to assess the market risk associated with foreign currency exposure.

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