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What changed in Corning Inc.'s 10-K — 2024 vs 2025

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Paragraph-level year-over-year comparison of Corning Inc.'s 2024 and 2025 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 2025 report.

+251 added−238 removedSource: 10-K (2026-02-12) vs 10-K (2025-02-13)

Top changes in Corning Inc.'s 2025 10-K

251 paragraphs added · 238 removed · 211 edited across 8 sections

Item 1. Business

Business — how the company describes what it does

81 edited+15 added−10 removed40 unchanged
Biggest changeShe also previously served as General Counsel at Worthington Steel Processing and Worthington Armstrong Venture (“WAVE”). Across these roles, Ms. Tillman led corporate governance matters, litigation, commercial transactions, regulatory, antitrust, environmental health and safety, cyber security, data privacy, import/export, labor and employment, intellectual property and compliance.
Biggest changeTillman led corporate governance matters, litigation, commercial transactions, regulatory, antitrust, environmental health and safety, cyber security, data privacy, import/export, labor and employment, intellectual property and compliance. Prior to WAVE, she served in executive leadership roles at Ricoh Americas Corporation including deputy general counsel and as employment and commercial litigation counsel at IKON Office Solutions. Age 54. Ronald L.
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-28e® 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 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, 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.
We have established a strategic talent pipeline by partnering with schools around the world with exceptional strength in the material sciences and other fields relevant to our Company's business, including renowned MBA schools and top engineering and scientific schools.
We have established a strategic talent pipeline by partnering with schools around the world with exceptional strength in the material sciences and other fields relevant to our Company’s business, including renowned business schools and top engineering and scientific schools.
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.
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 to 2021 Mr. Fang served as president and general manager of Corning Greater 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 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 1999 he transferred to the Environmental Products Division and became production manager of Corning Environmental Technologies’ 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.
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.
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 18 (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 capabilities are versatile and synergistic, allowing Corning to evolve to meet changing market needs, while also helping customers capture new opportunities in dynamic industries. Today, Corning’s markets include optical communications, mobile consumer electronics, display, automotive, solar, semiconductor and life sciences.
Our capabilities are versatile and synergistic, allowing Corning to evolve to meet changing market needs, while also helping customers capture new opportunities in dynamic industries. Today, Corning’s markets include optical communications, display, mobile consumer electronics, automotive, life sciences, semiconductors and solar.
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.
In 2021, he was appointed senior vice president, Finance, and corporate controller and in February 2022 he was named principal accounting officer. Age 54. Li Fang Senior Vice President, Corning International and New Business Development, Solar Mr. Fang joined Corning International in 1997 as business development manager, China.
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.
Prior to joining Corning, she was vice president and general manager of Information Technology at Intel Corporation driving information technology 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 50. Lewis A.
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.
Our principal trademarks include the following: Axygen, Celcor, ClearCurve, Contour, Corning, DuraTrap, Eagle XG, Edge8, Everon, Evolv, Falcon, FlexNAP, FLORA, Gorilla, HPFS, Leaf, miniXtend, PUSHLOK, 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.
Some of the product innovations we have launched over the past ten years utilizing our world-class processes and capabilities include the following: • Corning® EAGLE XG® Slim Glass, Corning’s flagship display glass product enabling thinner televisions and monitors with larger-sized screens; it is trusted by the world’s leading panel makers for LCD displays with more than 30 billion square feet sold; • Corning® Astra® Glass, an innovative glass solution designed to meet the emerging needs for high-resolution displays.
Some of the product innovations we have launched in recent years utilizing our world-class processes and capabilities include the following: • Corning® EAGLE XG® Slim Glass, Corning’s flagship display glass product enabling thinner televisions and monitors with larger-sized screens; it is trusted by the world’s leading panel makers for LCD displays with more than 30 billion square feet sold; • Corning® Astra® Glass, an innovative glass solution designed to meet the emerging needs for high-resolution displays.
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.
Refer to the material under the heading “Patents and Trademarks” for more information. The Life Sciences segment represented 6% of Corning’s total segment net sales in 2025. 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.
The information contained on the Company’s website is not included in, or incorporated by reference into, this Annual Report on Form 10-K. Other Additional information in response to Item 1 is found in Note 17 (Reportable Segments) in the accompanying notes to the consolidated financial statements. 12 Table of Contents
The information contained on the Company’s website is not included in, or incorporated by reference into, this Annual Report on Form 10-K. Other Additional information in response to Item 1 is found in Note 18 (Reportable Segments) in the accompanying notes to the consolidated financial statements. 11 Table of Contents
Our products and capabilities in this segment position us to meet the needs of a broad array of markets, including semiconductor, aerospace, defense, industrial, commercial and telecommunications. Our principal competitors include Schott AG, AGC Inc., Nippon Electric Glass Co., Ltd. and Heraeus.
Our products and capabilities in this segment position us to meet the needs of a broad array of markets, including semiconductor, aerospace, defense, industrial, commercial and telecommunications. Our principal competitors include Schott AG, AGC Inc., Nippon Electric Glass Co., Ltd., Heraeus and JENOPTIK Industrial Metrology Germany GmbH.
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.
Worldwide, we have about 5,650 patent applications in process, with about 1,740 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.
For high performance across the range of long-haul, metro, access and fiber-to-the-home network applications, SMF-28® Ultra and SMF-28® Contour fibers deliver industry-leading attenuation, compatibility and improved macrobend performance in one fiber. A portion of our optical fiber is sold directly to end users and third-party cablers globally.
For high performance across the range of long-haul, metro, access and fiber-to-the-home network applications, SMF-28e® Ultra and SMF-28e® Contour fibers deliver industry-leading attenuation, compatibility and improved 2 Table of Contents macrobend performance in one fiber. A portion of our optical fiber is sold directly to end users and third-party cablers globally.
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.
The Optical Communications segment represented 38% of Corning’s total segment net sales in 2025. Display Segment The Display 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.
We sell our ceramic substrate and filter products worldwide to catalyzers and manufacturers of emission control systems who then sell to automotive and diesel vehicle or engine manufacturers.
We sell our ceramic substrate and filter products worldwide to catalyzers and manufacturers of emission control systems who then sell to automotive and diesel vehicle or engine 4 Table of Contents manufacturers.
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.
Nelson was appointed vice president and general manager for Corning Environmental Technologies and was named senior vice president and general manager, Corning Environmental Technologies, 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.
Important 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.
Important 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: 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. • Automotive: 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.
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.
Our 2025 consolidated operating results reflect approximately $81.9 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.
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.
Steverson Vice Chairman, 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.
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.
In 2025, we were granted about 370 patents in the U.S. and over 970 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.
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.
Zhang Senior Executive Vice President and Chief Corporate Development Officer Mr. 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.
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.
Salaried talent retention in 2025 remained strong at 96.9%. Health and Safety 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 0.26 in 2025.
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.
These components are being adopted by hyperscale data centers as well as the carriers building data center interconnect networks, 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.
As global emissions control regulations tighten, we have continued to develop more effective and durable ceramic substrate and filter products for gasoline and diesel applications, most recently launching low-mass Corning® FLORA® substrates and Corning® DuraTrap® GC gasoline particulate filters. We manufacture substrate and filter products in New York, Virginia, China and Germany.
As global emissions control regulations tighten, we have continued to develop more effective and durable ceramic substrate and filter products for gasoline and diesel applications, most recently launching low-mass Corning® FLORA® substrates and Corning® DuraTrap® GC gasoline particulate filters.
Schlesinger served in various finance leadership roles with American Standard and Ingersoll Rand. Age 57. 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.
Schlesinger served in various finance leadership roles with American Standard and Ingersoll Rand. Age 58. 10 Table of Contents 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.
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.
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; 3 Table of Contents • 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.
Talent Management Each year we formally evaluate the talent implications of our strategic business plans and align our actions and objectives accordingly. As business needs change, we create human capital objectives to ensure we have the right people with the right skills in place to deliver that growth.
Talent Management Each year we formally evaluate the talent implications of our strategic business plans and align our actions and objectives accordingly. As business needs change, we create human capital objectives to ensure we have the right people with the right skills in place to deliver that growth. Our global workforce is comprised of 59% men and 41% women.
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 2007 he was appointed Chief Financial Officer, Corning Display Technologies Taiwan. In 2009, he was named director of Finance, Corning Display Technologies and in 2010 was appointed division controller. 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.
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.
Age 53. Document Availability A copy of this 2025 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.
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.
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 enterprise network group consists primarily of optical-based communication networks sold to businesses, governments and individuals for their own use.
Our large-scale manufacturing experience, fiber process, technology leadership and intellectual property provide cost advantages relative to several of our competitors. Our principal competitors include CommScope Holding Company, Inc. and Prysmian Group S.p.A. Display Technologies Segment We are the largest worldwide producer of glass substrates for flat panel displays.
Our large-scale manufacturing experience, fiber process, technology leadership and intellectual property provide cost advantages relative to several of our competitors. Our principal competitors include Amphenol, Fujikura and their subsidiary America Fujikura Ltd., Sumitomo and Prysmian Group S.p.A. Display Segment We are the largest worldwide producer of glass substrates for flat panel displays.
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.
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.
Hemlock and Emerging Growth Businesses represented 8% of Corning’s total segment net sales in 2024.
Hemlock and Emerging Growth Businesses represented 9% of Corning’s total segment net sales in 2025.
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.
In 2010 he returned to the U.S. as program director, Corning Environmental Technologies. 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.
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.
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 $7.9 million in 2025 and are estimated to be $18.9 million in 2026.
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.
At the end of 2025, we owned about 11,375 unexpired patents in various countries, of which about 4,015 were U.S. patents. Between 2026 and 2028, approximately 740, or 6.5%, of these worldwide patents will expire, while at the same time we intend to seek patents protecting our newer innovations.
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.
Prior to his current role, Mr. O’Day served as vice president of Corning Optical Communications Technology and Program Management Office. He was appointed senior vice president & general manager, Optical Communications in 2024. Age 56. Edward A. Schlesinger Executive Vice President and Chief Financial Officer Mr.
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.
Weeks Chairman and Chief Executive Officer & President Mr. Weeks joined Corning in 1983 in the finance group. 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.
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.
Life Sciences Segment As a leading developer, manufacturer and global supplier of laboratory products for over 110 years, the Life Sciences segment works with researchers and drug manufacturers seeking to drive innovation, increase efficiencies, reduce costs and compress timelines.
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.
In 2020, Mr. 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. He was appointed executive vice president and chief corporate officer in 2025.
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.
The Display segment represented 23% of Corning’s total segment net sales in 2025. 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 optics, components and metrology instruments and software to meet requirements for unique customer needs.
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.
He became Corning’s president and chief operating officer in 2002. Mr. 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 66. John Z.
Our competitive advantage in automotive ceramic substrate products for catalytic converters and filter products for particulate emissions in exhaust systems is based on an advantaged product portfolio, collaborative engineering design services, customer service and support, strategic global presence and continued product innovation. Our principal competitors include NGK Insulators, Ltd. and Ibiden Co., Ltd.
Our competitive advantage in automotive ceramic substrate products for catalytic converters and filter products for particulate emissions in exhaust systems is based on an advantaged product portfolio, collaborative engineering design services, customer service and support, strategic global presence and continued product innovation. In automotive glass, our competitive advantage is in more reliable, large and shaped digital display covers.
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.
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 63. Michelle L. Gullo Senior Vice President and Chief Human Resources Officer Ms. Gullo joined Corning in 2012 as human resources manager for finance.
Corning is vital to progress – in the industries we help advance and in the world we share. For more than 170 years, Corning has combined its unparalleled expertise in glass science, ceramic science and optical physics with deep manufacturing and engineering capabilities to develop category-defining products that transform industries and enhance people’s lives.
Corning is vital to progress – in the industries we help advance and in the world we share. With a 175-year track record of life-changing inventions, Corning applies its unparalleled expertise in glass science, ceramic science and optical physics, along with its deep manufacturing and engineering capabilities to develop category-defining products that transform industries and enhance people’s lives.
He joined the Life Sciences segment in 2004 and has held a variety of progressive roles in that segment. In 2010, he was named division vice president and director of Advanced Life Sciences. In 2012 he was named division vice president and program director for Corning Pharmaceutical Technologies. In 2015, Mr.
Verkleeren Senior Vice President, Emerging Innovations Group Mr. Verkleeren joined Corning in 2001 in the Optical Communications segment. He joined the Life Sciences segment in 2004 and has held a variety of progressive roles in that segment. In 2010, he was named division vice president and director of Advanced Life Sciences.
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.
In 2025, he was appointed vice chairman, executive vice president and chief legal & administrative officer. 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.
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.
In 2012, he was named division vice president and program director for Corning Pharmaceutical Technologies. In 2015, Mr. 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 55. Wendell P.
Life Sciences Segment We seek to maintain a competitive advantage by emphasizing product quality, global distribution, supply chain efficiency, a broad product line, technical support and superior product attributes. Our principal competitors include Thermo Fisher Scientific Inc., Avantor, Inc., Greiner AG, Eppendorf SE, Sarstedt AG & Co. KG and Danaher Corporation.
Our principal competitors include NGK Insulators, Ltd., Ibiden Co., Ltd., AGC Inc. and LENS. Life Sciences Segment We seek to maintain a competitive advantage by emphasizing product quality, global distribution, supply chain efficiency, a broad product line, technical support and superior product attributes.
He was appointed senior vice president and general manager, Automotive, Life Sciences & Solar in 2024. Age 56. Michael P. O’Day Senior Vice President & General Manager Optical Communications Mr. O’Day joined Corning in 1998 with Siecor, which later became Corning Cable Systems (“CCS”). He worked in both the Strategy and Marketing organizations for CCS through 2003.
He was appointed senior vice president and general manager, Automotive, Life Sciences & Solar in 2024. In 2025, he was appointed executive vice president and chief operating officer. Age 57. Michael P. O’Day Senior Vice President & General Manager Optical Communications Mr. O’Day joined Corning in 1998 with Siecor, which later became Corning Cable Systems.
From 2004 to 2010 he served in CCS’s Optical Connectivity Product Line Management organization. In 2010 Mr. O’Day was appointed program manager for Corning’s IDAS Wireless Program. In 2017 he became the head of Product Line Management for Optical Connectivity Solutions. Prior to his current role, Mr.
He worked in both the Strategy and Marketing organizations for Corning Cable Systems through 2003. From 2004 to 2010 he served in Corning Cable Systems’ Optical Connectivity Product Line Management organization. In 2010, Mr. O’Day was appointed program manager for Corning’s IDAS Wireless Program. In 2017, he became the head of Product Line Management for Optical Connectivity Solutions.
Hemlock and Emerging Growth Businesses also includes our pharmaceutical technologies business, which produces high-quality pharmaceutical glass tubing and vials to meet the rigorous needs of the pharmaceutical industry; our automotive glass solutions business, which enhances vehicle exteriors and interiors with innovations that enable lightweight, damage-resistant windows and displays; as well as other businesses and certain corporate investments.
Hemlock and Emerging Growth Businesses also includes our businesses that transform polysilicon into solar wafers and solar modules; our pharmaceutical technologies business, which produces high-quality pharmaceutical glass tubing and vials to meet the rigorous needs of the pharmaceutical industry; and, the emerging innovations group as well as other businesses and certain corporate investments.
From 2001 to 2005, he held positions as manager, Planning and Analysis and later director of Finance, Corning Cable Systems. He joined the Display Technologies division in 2005 as U.S. Controller. In 2007 he was appointed CFO, Corning Display Technologies Taiwan.
Stefan Becker Senior Vice President, Finance 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. He joined the Display Technologies division in 2005 as U.S. Controller.
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.
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 2026 and 2028 Optical Communications 4,121 1,625 44 Display 1,430 191 12 Specialty Materials 2,245 845 12 Automotive 1,351 506 12 Life Sciences 1,091 315 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.
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.
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 Corning Environmental Technologies as general manager, Corning (Shanghai) Company Limited. In 2009, he became general manager and regional director of China and India, Corning Environmental Technologies.
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.
Each of our approximately 67,200 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.
Environmental Technologies Segment We maintain a strong position in the worldwide market for automotive ceramic substrate and filter products, as well as in the heavy-duty and light-duty diesel vehicle markets.
Automotive Segment We maintain a strong market position with our automotive products including automotive ceramic substrate and filter products, and technical glass solutions for global light-duty and heavy-duty vehicle markets.
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.
Refer to the material under the heading “Patents and Trademarks” for more information. The Automotive segment represented 11% of Corning’s total segment net sales in 2025.
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.
We manufacture our automotive products in New York, Virginia, China, South Korea, Taiwan, and Germany. 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. We are licensed to use certain patents owned by others, which are also considered important to the segment’s operations.
We value the unique ability of each individual to contribute, and we intend that all employees shall have the opportunity to participate fully, to grow professionally, and to develop to their highest potential. Our global workforce is comprised of 60.5% men and 39.5% women.
The rich diversity of our experiences, thoughts, and who we are as individuals strengthens the impact of our collective achievements. We value the unique ability of each individual to contribute, and we intend that all employees have the opportunity to participate fully, to grow professionally and to develop to their highest potential.
Certain key materials and proprietary equipment used in the manufacturing of products are currently sole-sourced or available only from a limited number of suppliers. To minimize this risk, we closely monitor raw materials and equipment with limited availability or sole-sourced suppliers.
For many of our materials, we have alternate suppliers that would allow operations to continue without interruption in the event of specific materials shortages. Certain key materials and proprietary equipment used in the manufacturing of products are currently sole-sourced or available only from a limited number of suppliers.
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.
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.
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. Examples of enterprise network solutions include the Edge8® platform, which provides high-density pre-connectorized cabling solutions for data center applications, supporting a path to speeds of 400G and beyond.
Tillman Senior Vice President and General Counsel Ms. Tillman joined Corning in 2024 with more than 25 years of domestic and international experience as an attorney and trusted advisor. Prior to joining Corning, she served as General Counsel and Corporate Secretary of Worthington Steel, Inc.
Steverson was in private practice at the law firm of Arnold & Porter. Age 62. Michaune D. Tillman Senior Vice President and General Counsel Ms. Tillman joined Corning in 2024 with more than 25 years of domestic and international experience as an attorney and trusted advisor.
We have adequate programs to ensure a reliable supply of raw and batch materials, as well as precious metals which are used in our production processes. For many of our materials, we have alternate suppliers that would allow operations to continue without interruption in the event of specific materials shortages.
From time to time, our suppliers may experience capacity limitations in their own operations or may eliminate certain product lines. We have adequate programs to ensure a reliable supply of raw and batch materials, as well as precious metals which are used in our production processes.
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.
In the early 1970s, we developed an economical, high-performance cellular ceramic substrate that is now the standard for catalytic converters in vehicles worldwide.
These products may be sold as individual components or as part of integrated optical connectivity solutions designed for various carrier network applications.
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.
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.
Optical Communications Segment We invented the world’s first low-loss optical fiber in 1970. Since that milestone, we have continued to pioneer optical fiber, cable and connectivity solutions. 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.
Values Corning is guided by an enduring set of Values that defines our relationship with employees, customers and our communities: Quality, Integrity, Performance, Leadership, Innovation, Independence and the Individual. Our Values are the key to our business success, a source of pride and excitement for our employees and the factor that ultimately sets us apart from our competitors.
Our Values are the key to our business success, a source of pride and excitement for our employees and the factor that ultimately sets us apart from our competitors. In short, we believe that how we do things is as important as what we do.
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.
Additionally, the rapid acceleration of artificial intelligence (“AI”) is driving strong demand for fiber and connectivity products inside and between data centers. Our experience puts us in a unique position to design and deliver optical solutions that reach every edge of the communications network.
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.
Corning operates around the globe and builds strong, multifaceted teams in which all employees feel included at work. Our efforts are rooted in our Value of the Individual, by which we acknowledge that the commitment and contributions of all of our employees determines our success.
Corning is committed to attracting and recruiting highly qualified candidates of all backgrounds to sustain our culture of innovation and to stimulate creativity.
Corning is committed to attracting and recruiting highly qualified candidates of all backgrounds, experiences and skillsets. This not only strengthens our culture, but it also helps drive our ability to innovate and succeed.
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.
He led product and process development, product engineering and commercial technology for Gorilla Glass and later for Mobile Consumer Electronics. In 2020, Dr. 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 57.
Availability of resources, such as ores, minerals, polymers, lithium, helium and processed chemicals, required in our manufacturing operations appear to be adequate. From time to time, our suppliers may experience capacity limitations in their own operations or may eliminate certain product lines.
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. Availability of resources, such as ores, minerals, polymers, lithium, helium and processed chemicals, required in our manufacturing operations appear to be adequate.
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.
We measure how we live our Values through our annual “Voice to Action” Workplace Culture Survey. In 2025, we had an 87% response rate with survey participation worldwide. We use the results to pinpoint recurring global themes and develop plans to drive action based on employee feedback.
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.
These efforts reflect Corning’s dedication to fostering a safe, healthy and thriving workplace for all employees. 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. He held numerous operational roles within Photonics before joining Corning Specialty Materials in 2004.

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Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

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Biggest changeIf 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.
Biggest changeIf 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.
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.
We have significant exposure to foreign currency movements A large portion of our sales, costs, profit and cash flows are transacted in non-U.S. dollar currencies, primarily the Japanese yen, South Korean won, Chinese yuan, New Taiwan dollar, Mexican peso, and euro.
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.
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 14 Table of Contents regulatory investigations or fines, increasing the costs of compliance and remediation, or otherwise adversely affecting our business.
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.
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. 17 Table of Contents International trade policies may negatively impact our ability to sell and manufacture our products outside of the U.S.
For example, a country’s adoption of nationalistic policies or retaliation by another government against such policies could have a negative impact on our results of operations. Further, these actions in conjunction with any trade tensions may restrict us from participating in a specific market or may prevent us from competing effectively. 19 Table of Contents
For example, a country’s adoption of nationalistic policies or retaliation by another government against such policies could have a negative impact on our results of operations. Further, these actions in conjunction with any trade tensions may restrict us from participating in a specific market or may prevent us from competing effectively.
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.
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 around the world. Litigation and regulatory proceedings may be uncertain, and adverse rulings could occur, resulting in significant liabilities, penalties or damages.
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.
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.
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, 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.
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, 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; • Implementation of emerging technologies, such as artificial intelligence and machine learning, as part of the manufacturing process by us or members of our supply chain; 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. 12 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.
Additionally, we rely on a global supply chain for key components and capabilities that are central to our ability to invent, make and sell products. Compliance with multiple legal and regulatory requirements increases our costs.
Additionally, we rely on a global supply chain for key components and capabilities that are central to our ability to invent, make and sell products. 15 Table of Contents Compliance with multiple legal and regulatory requirements increases our costs.
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.
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.
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.
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 2025 Optical Communications 2 28 % Display 3 59 % Specialty Materials 2 43 % Automotive 3 61 % Life Sciences 2 45 % 13 Table of Contents 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.
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.
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.
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.
Corning’s Optical Communications and Display segments generate a significant amount of the Company’s profits and cash flow; any significant decrease in 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 these businesses, which are subject to pricing pressure, industry competition, potential over-capacity or under capacity, development of new technologies and operational and regulatory risks.
Recently, the COVID-19 pandemic resulted in authorities around the world implementing numerous unprecedented measures such as travel restrictions, quarantines, shelter in place orders, vaccine mandates and facility shutdowns.
A pandemic may result in authorities around the world implementing numerous unprecedented measures such as travel restrictions, quarantines, shelter in place orders, vaccine mandates and facility shutdowns.
The ultimate realized gain or loss with respect to currency fluctuations will generally depend on the size and type of cross-currency exposure that we have, the changes in exchange rates associated with those exposures, whether we have entered into foreign currency contracts to offset these exposures and other factors.
Additionally, gains or losses may be experienced if the underlying exposure which has been hedged increases or decreases significantly. 16 Table of Contents The ultimate realized gain or loss with respect to currency fluctuations will generally depend on the size and type of cross-currency exposure that we have, the changes in exchange rates associated with those exposures, whether we have entered into foreign currency contracts to offset these exposures and other factors.
The Company expects to continue to experience fluctuations in the U.S. dollar value of these activities if it is not possible, cost-effective or should we not elect to hedge certain currency exposure. Additionally, gains or losses may be experienced if the underlying exposure which has been hedged increases or decreases significantly.
The Company expects to continue to experience fluctuations in the U.S. dollar value of these activities if it is not possible, cost-effective or should we not elect to hedge certain currency exposure.
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.
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.
Added
Further, the optical communications business faces risks related to fluctuations in telecommunication and hyperscale data center capital spending, which may negatively affect the demand for our products and have a material adverse impact on our financial results. Additionally, the display glass business is exposed to exchange rate movements.
Added
Risks associated with the launch of a new business Launching new businesses involves inherent risks, including execution challenges, regulatory compliance, supply chain complexity, and uncertainty in market demand and competitive conditions. These factors may affect our ability to achieve anticipated returns and strategic objectives.
Added
In connection with our recent entry into the solar industry, we face risks specific to this sector, such as dependence on government manufacturing tax incentives, exposure to policy and regulatory changes, and complexities in sourcing specialized components. These factors, along with market volatility and evolving industry standards, could further impact the profitability of this business.
Added
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.
Added
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.

Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

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Biggest changeShould a cybersecurity incident rise to the level of a corporate crisis, consistent with the Company’s CCRT escalation protocols, the Board would be engaged. Our CDIO and our CISO lead our management team in assessing and managing our response to cybersecurity threats and incidents.
Biggest changeShould a cybersecurity incident rise to the level of a corporate crisis, consistent with the Company’s CCRT escalation protocols, the Board would be engaged. 18 Table of Contents Our CDIO and our CISO lead our management team in assessing and managing our response to cybersecurity threats and incidents.
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
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. 19 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 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.
Biggest changeThe following table presents the distribution of this total area: (million square feet) Total Domestic Foreign Manufacturing 47.1 14.5 32.6 Sales and administrative 2.5 1.9 0.6 Research and development 2.1 1.9 0.2 Warehouse 3.9 2.8 1.1 Total 55.6 21.1 34.5 Total assets and capital expenditures by reportable segment are included in Note 18 (Reportable Segments) in the accompanying notes to the consolidated financial statements.
Information concerning lease commitments is included in Note 5 (Leases) in the accompanying notes to the consolidated financial statements.
Information concerning lease commitments is included in Note 8 (Leases) in the accompanying notes to the consolidated financial statements.
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.
We also own approximately 62% of our sales and administrative office square footage, 85% of our research and development square footage, 61% of our manufacturing square footage and 7% of our warehousing square footage. Manufacturing, sales and administrative, research and development facilities and warehouse facilities have an aggregate floor space of approximately 55.6 million square feet.
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.
Item 2. Properties We operate 128 manufacturing plants and related facilities in 14 countries, of which approximately 34% are in the U.S. We own approximately 56% of our executive and corporate buildings, with 94% located in and around Corning, New York.

Item 3. Legal Proceedings

Legal Proceedings — active lawsuits and investigations

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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.
Biggest changeAs of December 31, 2025 and 2024, Corning had accrued approximately $89 million and $78 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.

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

3 edited+0 added−0 removed3 unchanged
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.
Biggest change(c) The following table provides information about purchases of common stock during the fourth quarter of 2025: 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, 2025 57,366 $ 84.66 November 1-30, 2025 75,140 $ 84.78 59,207 December 1-31, 2025 55,947 $ 87.33 Total 188,453 $ 85.50 59,207 $ 2,972,667,460 (1) This column reflects: (iii) 95,625 shares of common stock related to the vesting of employee restricted stock; (i) 31,455 shares of common stock related to the vesting of employee restricted stock units; (ii) 2,166 shares of common stock related to the vesting of employee performance stock units; and (v) the purchase of 59,207 shares of common stock under the 2019 Repurchase Program.
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.
The NYSE ticker symbol for Corning Incorporated is “GLW”. As of December 31, 2025, there were approximately 10,000 registered holders of common stock and approximately 1,286,000 beneficial shareholders. Information with respect to securities authorized for issuance under equity compensation plans is included herein under Item 12.
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.
This graph assumes the investment of $100 on December 31, 2020 and the reinvestment of all dividends since that date. 21 Table of Contents (b) Not applicable.

Item 7. Management's Discussion & Analysis

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

94 edited+20 added−17 removed61 unchanged
Biggest changeOverall, 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.
Biggest changeWe therefore expect to increase both our capacity and technology capabilities as required to achieve our goals, while sharing risk appropriately to achieve the returns that underpin our Springboard plan. 2026 Corporate Outlook For the first quarter of 2026, we expect core net sales in the range of approximately $4.2 billion to $4.3 billion. 23 Table of Contents RESULTS OF OPERATIONS The following table presents selected highlights from our operations (in millions): Year ended December 31, % change 2025 2024 25 vs. 24 Net sales $ 15,629 $ 13,118 19 % Cost of sales $ 10,008 $ 8,842 13 % Gross margin $ 5,621 $ 4,276 31 % Gross margin % 36 % 33 % Selling, general and administrative expenses $ 2,122 $ 1,931 10 % as a % of net sales 14 % 15 % Research, development and engineering expenses $ 1,110 $ 1,089 2 % as a % of net sales 7 % 8 % Translated earnings contract gain, net $ 150 $ 83 81 % Income before income taxes $ 2,052 $ 813 * Provision for income taxes $ 310 $ 221 40 % Effective tax rate 15.1 % 27.2 % * Not Meaningful Net Sales Net sales for the year ended December 31, 2025 increased by $2.5 billion, or 19%, when compared to the same period in 2024.
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
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, South Korean won, Chinese yuan, New Taiwan dollar, Mexican peso and euro), 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. 41 Table of Contents
For the year ended December 31, 2024, amount includes $131 million of non-cash cumulative foreign currency translation losses required to be recognized upon the substantial liquidation or disposition of foreign entities, which was recorded in other (expense) income, net in the consolidated statements of income .
For the year ended December 31, 2024, amount includes $131 million of non-cash cumulative foreign currency translation losses required to be recognized upon the substantial liquidation or disposition of foreign entities, which was recorded in other (expense) income, net on the consolidated statements of income.
NEW ACCOUNTING STANDARDS Refer to Note 1 (Summary of Significant Accounting Policies) in the accompanying notes to the consolidated financial statements. 41 Table of Contents FORWARD-LOOKING STATEMENTS The statements in this Annual Report on Form 10-K, in reports subsequently filed by Corning with the Securities and Exchange Commission (“SEC”) on Forms 10-Q and 8-K and related comments by management that are not historical facts or information and contain words such as “will,” “believe,” “anticipate,” “expect,” “intend,” “plan,” “seek,” “see,” “would,” “target,” “estimate,” “forecast” or similar expressions are forward-looking statements.
NEW ACCOUNTING STANDARDS Refer to Note 1 (Summary of Significant Accounting Policies) in the accompanying notes to the consolidated financial statements. 40 Table of Contents FORWARD-LOOKING STATEMENTS The statements in this Annual Report on Form 10-K, in reports subsequently filed by Corning with the Securities and Exchange Commission (“SEC”) on Forms 10-Q and 8-K and related comments by management that are not historical facts or information and contain words such as “will,” “believe,” “anticipate,” “expect,” “intend,” “plan,” “seek,” “see,” “would,” “target,” “estimate,” “forecast” or similar expressions are forward-looking statements.
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) $ 75 25 basis point increase in each spot rate $ 1 $ (72) 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.
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) $ 78 25 basis point increase in each spot rate $ 1 $ (75) 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.
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.
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.
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.
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 2026 and beyond will be our operating cash flow, our existing balances of cash and cash equivalents and proceeds from any issuances of debt.
These charges primarily relate to the full write-down of upfront payments made to the customer, which were determined to be nonrecoverable, and recorded as a charge to net sales in the consolidated statements of income . Other charges recorded during 2024 related to asset write-offs associated with the exit of certain facilities and product lines.
These charges primarily relate to the full write-down of upfront payments made to the customer, which were determined to be nonrecoverable, and recorded as a charge to net sales on the consolidated statements of income. Other charges recorded during 2024 related to asset write-offs associated with the exit of certain facilities and product lines.
These forward-looking statements relate to, among other things, the Company’s future operating performance, the Company’s share of new and existing markets, the Company’s revenue and earnings growth rates, the Company’s ability to innovate and commercialize new products, the Company’s expected capital expenditure and the Company’s implementation of cost-reduction initiatives and measures to improve pricing, including the optimization of the Company’s manufacturing capacity.
These forward-looking statements relate to, among other things, the Company’s Springboard plan, the Company’s future operating performance, the Company’s share of new and existing markets, the Company’s revenue and earnings growth rates, the Company’s ability to innovate and commercialize new products, the Company’s expected capital expenditure and the Company’s implementation of cost-reduction initiatives and measures to improve pricing, including the optimization of the Company’s manufacturing capacity.
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.
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, 2025, 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, Mexican peso 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, Chinese yuan, New Taiwan dollar, Mexican peso and euro, and its impact on net income.
We believe our current assumptions and estimates are reasonable and appropriate. 39 Table of Contents Income taxes We are subject to income tax laws and regulations of the many jurisdictions in which we operate. These tax laws and regulations are complex and involve uncertainties in the application to our facts and circumstances that may be open to interpretation.
We believe our current assumptions and estimates are reasonable and appropriate. 38 Table of Contents Income taxes We are subject to income tax laws and regulations of the many jurisdictions in which we operate. These tax laws and regulations are complex and involve uncertainties in the application to our facts and circumstances that may be open to interpretation.
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.
Legal Proceedings and Note 12 (Commitments, Contingencies and Guarantees) in the accompanying notes to the consolidated financial statements for information. 37 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.
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 discussion and analysis of the 2024 to 2023 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, 2024.
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.
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, 2025, approximately $3.0 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.
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.
OPEB plans (in millions): Change in ongoing OPEB expense Change in APBO 25 basis point decrease in each spot rate $ 1 $ 8 25 basis point increase in each spot rate $ (1) $ (7) The above sensitivities reflect the impact of changing one assumption at a time.
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.
The constant-currency rates established for our core performance measures are long-term management-determined rates, 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.
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.
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, 2025, approximately 61% of the consolidated cash and cash equivalents were held outside of the U.S.
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.
Derivatives may include foreign exchange forward contracts and foreign exchange option contracts that are measured using observable quoted prices for similar assets and liabilities.
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.
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 purposes.
Refer to Note 6 (Income Taxes) in the accompanying notes to the consolidated financial statements for further details regarding income tax matters.
Refer to Note 15 (Income Taxes) in the accompanying notes to the consolidated financial statements for further details regarding income tax matters.
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.
Sources of Liquidity We generate strong ongoing cash flows from operations, which is our principal source of liquidity. During the years ended December 31, 2025 and 2024, cash flows provided by operating activities were $2.7 billion and $1.9 billion, respectively.
Refer to Note 10 (Debt) in the accompanying notes to the consolidated financial statements for additional information. Defined Benefit Pension Plans Our global pension plans, including our unfunded and non-qualified plans, were 86% funded as of December 31, 2024.
Refer to Note 10 (Debt) in the accompanying notes to the consolidated financial statements for additional information. Defined Benefit Pension Plans Our global pension plans, including our unfunded and non-qualified plans, were 85% funded as of December 31, 2025.
(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.
(b) The calculation of the effective tax rate GAAP and core excludes net income attributable to non-controlling interest of approximately $86 million and $92 million, respectively. Refer to “Items Adjusted from GAAP Measures” for the descriptions of the footnoted reconciling items.
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.
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 97% funded as of December 31, 2025. 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.
Refer to Note 14 (Shareholders' Equity) in the accompanying notes to the consolidated financial statements for additional information. 37 Table of Contents Common Stock Dividends The Board’s decision to declare and pay future dividends will depend on our income and liquidity position, among other factors. We expect to declare quarterly dividends and fund payments with cash from operations.
Refer to Note 16 (Shareholders’ Equity) in the accompanying notes to the consolidated financial statements for additional information. Common Stock Dividends The Board’s decision to declare and pay future dividends will depend on our income and liquidity position, among other factors. We expect to declare quarterly dividends and fund payments with cash from operations.
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.
Included in our foreign exchange forward contracts and foreign exchange option contracts are foreign currency hedges that hedge our cash flow, translation and net investments in foreign subsidiaries exposure resulting from movements in the Japanese yen, South Korean won, Chinese yuan, New Taiwan dollar, Mexican peso, and euro.
(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.
(3) Translated earnings contract, net : Amount reflects the impact of the realized and unrealized gains and losses from the Japanese yen, South Korean won, Chinese yuan, New Taiwan dollar, Mexican peso and euro-denominated foreign currency hedges related to translated earnings. 32 Table of Contents (4) Acquisition-related costs : Amount reflects intangible amortization, inventory valuation adjustments, contingent consideration adjustments and external acquisition-related deal costs, as well as other transaction related costs.
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.
Commitments, Contingencies and Guarantees A summary of our contractual obligations and other commercial commitments, including details of our commitments related to executed leases that have not yet commenced, as of December 31, 2025 are included within Note 12 (Commitments, Contingencies and Guarantees) and Note 8 (Leases) in the accompanying notes to the consolidated financial statements.
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.
The impact to income from realized activity for the year ended December 31, 2025 was primarily driven by realized gains from our Mexican peso and Japanese yen-denominated hedges, partially offset by realized losses from our South Korean won and Chinese yuan-denominated hedges.
As of December 31, 2024 and 2023, the fair value of the liability associated with this option, measured using Level 2 inputs, was not material. Refer to Note 14 (Shareholders’ Equity) in the accompanying notes to the consolidated financial statements for additional information.
As of December 31, 2025, the fair value of the liability associated with this option, measured using Level 2 inputs, was not material. Refer to Note 16 (Shareholders’ Equity) in the accompanying notes to the consolidated financial statements for additional information.
(5) Discrete tax items and other tax-related adjustments : Amount reflects certain discrete period tax items such as changes in tax law, the impact of tax audits, changes in tax reserves and changes in deferred tax asset valuation allowances, as well as other tax-related adjustments.
(5) Discrete tax items and other tax-related adjustments : Amount reflects certain discrete period tax items such as changes in tax law, the impact of tax audits, changes in tax reserves, changes in deferred tax asset valuation allowances and stock compensation windfall or shortfall, as well as other tax-related adjustments.
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.
The following table sets forth the computation of core earnings per share (in millions, except per share amounts): Year ended December 31, 2025 2024 Core net income $ 2,199 $ 1,699 Weighted-average common shares outstanding - basic 855 853 Effect of dilutive securities: Stock options and other awards 16 16 Weighted-average common shares outstanding - diluted 871 869 Core earnings per share $ 2.52 $ 1.96 30 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 sales of reportable segment and Hemlock and Emerging Growth Businesses are discussed in detail in the “Segment Analysis” section of our MD&A.
Net sales of reportable segments and Hemlock and Emerging Growth Businesses is discussed in detail in the “Segment Analysis” section of our MD&A.
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.
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 or tax credits from government entities primarily for capital expansion projects or for production related operating expenses.
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.
(b) The calculation of the effective tax rate for GAAP and core excludes net income attributable to non-controlling interest of approximately $146 million and $150 million, respectively. 31 Table of Contents 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 foreign 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 0.00 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.
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.
Research, Development and Engineering Expenses Research, development and engineering expenses increased by $21 million, or 2%, and decreased as a percentage of net sales by 1 percentage point when compared to 2024.
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.
Refer to the “Segment Analysis” section of our MD&A below for a discussion of net sales by segment. In 2025 and 2024, sales in international markets accounted for 57% and 61% of total net sales, respectively.
While 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.
While 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. 39 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, 2025 2024 2023 Actual return on plan assets – Domestic plans $ 282 $ 303 $ 281 Expected return on plan assets – Domestic plans 184 179 176 Actual return (loss) on plan assets – International plans 14 (6) 10 Expected return on plan assets – International plans 17 16 13 Weighted-average actual and expected return (loss) on assets: Actual return on plan assets – Domestic plans 10.65 % 11.74 % 10.94 % Expected return on plan assets – Domestic plans 6.75 % 6.75 % 6.75 % Actual return (loss) on plan assets – International plans 3.68 % (1.19 %) 2.54 % Expected return on plan assets – International plans 4.90 % 4.34 % 3.85 % As of December 31, 2025, the Projected Benefit Obligation (“PBO”) for U.S. pension plans was $3.4 billion.
With respect to the outlook for future periods, it is not possible to provide reconciliations for these non-GAAP measures because management does not forecast the movement of foreign currencies against the U.S. dollar, or other items that do not reflect ongoing operations, nor does it forecast items that have not yet occurred or are out of management’s control.
For a reconciliation of non-GAAP performance measures to their most directly comparable GAAP financial measure, refer to “Reconciliation of Non-GAAP Measures.” With respect to the outlook for future periods, it is not possible to provide reconciliations for these non-GAAP measures because management does not forecast the movement of foreign currencies against the U.S. dollar, or other items that do not reflect ongoing operations, nor does it forecast items that have not yet occurred or are out of management’s control.
Core Net Income For the year ended December 31, 2024, we generated core net income of $1.7 billion, or $1.96 per share, compared to core net income generated for the year ended December 31, 2023 of $1.5 billion, or $1.70 per share.
Core Net Income For the year ended December 31, 2025, we generated core net income of $2.2 billion, or $2.52 per share, compared to core net income generated for the year ended December 31, 2024 of $1.7 billion, or $1.96 per share.
These items include the impact of translating the Japanese yen-denominated debt, the impact of the translated earnings contracts, acquisition-related costs, certain discrete tax items and other tax-related adjustments, restructuring, impairment and other charges and credits, certain litigation, regulatory and other legal matters, pension mark-to-market adjustments and other items which do not reflect the ongoing operating results of the Company.
Items that are excluded from certain core performance calculations include: the impact of translating foreign denominated debt, the impact of the translated earnings contracts, acquisition-related costs, certain discrete tax items and other tax-related adjustments, restructuring, impairment and other charges and credits, certain litigation, regulatory and other legal matters, pension mark-to-market adjustments and other items which do not reflect the ongoing operating results of the Company.
(11) Loss on sale of business : Amount reflects the loss recognized for the sale of a business, recorded in other (expense) income, net in the consolidated statements of income, and includes $14 million for the year ended December 31, 2024 of non-cash cumulative foreign currency translation losses related to the disposition of a foreign entity . 34 Table of Contents LIQUIDITY AND CAPITAL RESOURCES Our financial condition and liquidity are strong.
(11) Loss on sale of business : Amount reflects the loss recognized for the sale of a business, recorded in other (expense) income, net on the consolidated statements of income , and includes $14 million for the year ended December 31, 2024 of non-cash cumulative foreign currency translation losses related to the disposition of a foreign entity .
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.
Net income of reportable segments and Hemlock and Emerging Growth Businesses is 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, 2025 to $2.52 per share, as a result of the increase in core net income, as outlined above.
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 Company utilizes constant-currency reporting for Optical Communications, Display, Specialty Materials, Automotive and Life Sciences segments for the Japanese yen, South Korean won, Chinese yuan, New Taiwan dollar, Mexican peso and euro, as applicable to the segment.
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.
Optical Communications The increase in segment net income was primarily driven by strong incremental profit on higher sales volume, as outlined above. Display The decrease in segment net income was primarily driven by the decrease in sales, as outlined above, partially offset by improved profitability which includes the impact of cost reductions.
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.
During the year ended December 31, 2025, the Company distributed $896 million from foreign subsidiaries to their respective U.S. parent companies. As of December 31, 2025, Corning had approximately $1.9 billion of indefinitely reinvested foreign earnings.
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.
The following table presents balance sheet and working capital measures (in millions): December 31, 2025 2024 Working capital $ 3,308 $ 3,073 Current ratio 1.6:1 1.6:1 Trade accounts receivable, net of doubtful accounts $ 2,779 $ 2,053 Days sales outstanding 60 53 Inventories $ 3,077 $ 2,724 Inventory turns 3.3 3.2 Days payable outstanding (1) 63 54 Long-term debt $ 7,630 $ 6,885 Total debt $ 8,434 $ 7,211 Total debt to total capital 41 % 39 % (1) Includes trade payables only.
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.
As of December 31, 2025, our cash and cash equivalents and available credit capacity included (in millions): December 31, 2025 Cash and cash equivalents $ 1,526 Available credit capacity: U.S. dollar revolving credit facility $ 1,500 Cash and Cash Equivalents We ended 2025 with $1.5 billion of cash and cash equivalents.
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.
Current Maturities of Short and Long-Term Debt As of December 31, 2025, the maturity schedule of our existing long-term debt, inclusive of finance leases, does not require significant cash outflows, with approximately $2.1 billion due over the next five years, of which $804 million is due in less than one year.
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.
Therefore, management utilizes constant-currency reporting for the Optical Communications, Display, Specialty Materials, Automotive and Life Sciences segments to exclude the impact from the Japanese yen, South Korean won, Chinese yuan, New Taiwan dollar, Mexican peso and euro, as applicable to the segment. The most significant constant-currency adjustment relates to the Japanese yen exposure within the Display segment.
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.
(“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.
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.
During the year ended December 31, 2025, Corning made $50 million of voluntary contributions to our domestic defined benefit pension plan and $18 million of cash contributions to our international pension plans. In 2026, the Company anticipates making voluntary cash contributions of $40 million to our domestic defined benefit pension plan and $12 million to the international pension plans.
We provide investors with these non-GAAP measures to evaluate our results as we believe they are indicative of our core operating performance and provide greater transparency to how management evaluates our results and trends and makes financial and operational decisions. These measures are not, and should not be viewed as a substitute for, GAAP reporting measures.
Management believes that our core performance measures are indicative of our core operating performance and provide investors with greater visibility into how management evaluates our results and trends and makes business decisions. These measures are not, and should not be viewed as a substitute for, GAAP reporting measures.
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.
The increase in core net sales of $1.9 billion was primarily driven by higher reportable segment net sales in Optical Communications of $1.6 billion, Hemlock and Emerging Growth Businesses of $363 million and Specialty Materials of $193 million, partially offset by a decrease in net sales in Display of $175 million.
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.
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 2025 2024 2025 vs. 2024 Hedges related to translated earnings: Realized gain, net (1) (2) $ 4 $ 3 $ 194 $ 149 $ (190) $ (146) Unrealized gain (loss), net 146 111 (111) (85) 257 196 Total translated earnings contract gain, net $ 150 $ 114 $ 83 $ 64 $ 67 $ 50 (1) For the years ended December 31, 2025 and 2024, amount includes non-cash pre-tax realized losses of $295 million and $85 million, respectively, related to the premiums of expired option contracts.
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.
The increase in core net income of $500 million was driven by higher reportable segment net income in Optical Communications of $436 million and Specialty Materials of $107 million, partially offset by a decrease from Hemlock and Emerging Growth Businesses of $68 million.
(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.
(9) Loss on investments : Amount reflects the loss recognized on investments due to mark-to-market adjustments for the change in fair value or the disposition of an investment. (10) Loss on sale of assets : Amount represents the loss recognized for the sale of assets, recorded in cost of sales, on the consolidated statements of income.
(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.
(2) For the year ended December 31, 2025, amount excludes $5 million gain related to forward contracts designated as a net investment hedge, which was recorded in accumulated other comprehensive loss on the consolidated balance sheets and reflected within investing activities on the consolidated statements of cash flows.
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 .
Constant-currency rates used 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 South Korean won Chinese yuan New Taiwan dollar Mexican peso Euro 2024 Rate ¥107 ₩1,175 ¥6.7 NT$31 MX$20 €0.81 2025 Rate ¥120 ₩1,250 ¥6.9 NT$31 MX$21 €0.88 (2) Translation of foreign denominated debt, net : Amount reflects the gain or loss on the translation of our yen-denominated and euro-denominated debt to U.S. dollars, net of gains or losses on related hedging instruments.
The impact of the Pillar Two Framework is not material to our results of operations, financial position or cash flow as of and for the year ended December 31, 2024. 27 Table of Contents SEGMENT ANALYSIS Financial results for the reportable segments and Hemlock and Emerging Growth Businesses are prepared on a basis consistent with the internal disaggregation of financial information to assist the chief operating decision maker (“CODM”) in making internal operating decisions, which is more fully discussed within Note 17 (Reportable Segments) in the accompanying notes to the consolidated financial statements and includes a reconciliation of our segment information to the corresponding amounts in our consolidated statements of income.
However, if the Company is ultimately unsuccessful in defending its position, the impact could be material to its consolidated financial statements. 26 Table of Contents SEGMENT ANALYSIS Financial results for the reportable segments and Hemlock and Emerging Growth Businesses are prepared on a basis consistent with the internal disaggregation of financial information to assist the chief operating decision maker in making internal operating decisions, which is more fully discussed within Note 18 (Reportable Segments) in the accompanying notes to the consolidated financial statements and includes a reconciliation of our segment information to the corresponding amounts in our consolidated statements of income.
We believe that the use of constant-currency reporting allows management to understand our results without the volatility of currency fluctuations, analyze underlying trends in the businesses and establish operational goals and forecasts. Core performance measures are not prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”).
We believe that the use of constant-currency reporting allows management to understand our results without the volatility of currency fluctuations, analyze underlying trends in the businesses and establish operational goals and forecasts.
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 agreement governing the Revolving Credit Facility includes affirmative and negative covenants with which we must comply, including a leverage (debt to capital ratio) financial covenant. As of December 31, 2025, we were in compliance with all such covenants. The required leverage ratio is a maximum of 60%.
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.
Gross margin increased by $1.3 billion, or 31% and gross margin as a percentage of net sales increased by 3 percentage points when compared to 2024 driven by higher volume and the impact of actions taken by management to improve profitability, including raising prices, reducing costs and increasing productivity. 24 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.
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.
Selling, general and administrative expenses increased by $191 million, or 10%, when compared to 2024 primarily due to the increase in net sales, as discussed above, and an increase in variable compensation and legal-related expenses and decreased as a percentage of net sales by 1 percentage point when compared to 2024.
Sales of accounts receivable are reflected as a reduction of accounts receivable in the consolidated balance sheets and the proceeds are included in cash flows from operating activities in the consolidated statements of cash flows.
Sales of accounts receivable are reflected as a reduction of accounts receivable on the consolidated balance sheets and the proceeds are included in cash flows from operating activities on the consolidated statements of cash flows. During the years ended December 31, 2025 and 2024, we accelerated the collection of $1.1 billion and $1.2 billion, respectively, in accounts receivable.
For more than 170 years, Corning has combined its unparalleled expertise in glass science, ceramic science and optical physics with deep manufacturing and engineering capabilities to develop category-defining products that transform industries and enhance people’s lives.
With a 175-year track record of life-changing inventions, Corning applies its unparalleled expertise in glass science, ceramic science and optical physics, along with its deep manufacturing and engineering capabilities to develop category-defining products that transform industries and enhance people’s lives.
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.
As of December 31, 2025, our leverage using this measure was approximately 41%. 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.
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.
As a result, management is unable to provide outlook information on a GAAP basis. 29 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 2025 2024 25 vs. 24 Core net sales $ 16,408 $ 14,469 13 % Core net income $ 2,199 $ 1,699 29 % Core earnings per share $ 2.52 $ 1.96 29 % Core Net Sales For the year ended December 31, 2025, we generated core net sales of $16.4 billion compared to core net sales for the year ended December 31, 2024 of $14.5 billion.
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.
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. Refer to Note 10 (Debt) in the accompanying notes to the consolidated financial statements for additional information.
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.
Net cash used in investing activities increased by $499 million for the year ended December 31, 2025, when compared to the same period last year, primarily driven by higher capital expenditures of $317 million and higher investments in unconsolidated entities of $127 million.
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 presents segment net sales by reportable segment and Hemlock and Emerging Growth Businesses (in millions): Year ended December 31, $ change % change 2025 2024 25 vs. 24 25 vs. 24 Optical Communications $ 6,274 $ 4,657 $ 1,617 35 % Display 3,697 3,872 (175) (5 %) Specialty Materials 2,211 2,018 193 10 % Automotive 1,794 1,846 (52) (3 %) Life Sciences 972 979 (7) (1 %) Net sales of reportable segments 14,948 13,372 1,576 12 % Hemlock and Emerging Growth Businesses 1,460 1,097 363 33 % Net sales of reportable segments and Hemlock and Emerging Growth Businesses (1) $ 16,408 $ 14,469 $ 1,939 13 % (1) Refer to Note 18 (Reportable Segments) in the accompanying notes to the consolidated financial statements for the reconciliation to consolidated net sales.
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.
(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.
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.
Specialty Materials The increase in segment net income was primarily driven by strong incremental profit on higher volumes. Automotive The increase in segment net income was primarily driven by improved performance within our automotive glass business, partially offset by decreased sales of our environmental technologies business, as outlined above. Life Sciences Segment net income remained consistent with the comparative period.
Certain countries have enacted this tax law change, with an effective date starting January 1, 2024 and January 1, 2025, for certain aspects of the directive.
Certain countries have enacted this tax law change, with an effective date starting January 1, 2024 and January 1, 2025, for certain aspects of the directive. The impact of the Pillar Two Framework is not material to our results of operations, financial position or cash flow as of and for the years ended December 31, 2025 and 2024.
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.
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. Under this program, we may issue commercial paper from time to time and will use the proceeds for general corporate purposes.
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.
Hemlock and Emerging Growth Businesses The increase was primarily driven by growth in polysilicon and solar module sales for the solar industry. 27 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 2025 2024 25 vs. 24 25 vs. 24 Optical Communications $ 1,048 $ 612 $ 436 71 % Display 993 1,006 (13) (1 %) Specialty Materials 367 260 107 41 % Automotive 278 261 17 7 % Life Sciences 61 63 (2) (3 %) Net income of reportable segments 2,747 2,202 545 25 % Hemlock and Emerging Growth Businesses (26) 42 (68) * Net income of reportable segments and Hemlock and Emerging Growth Businesses (1) $ 2,721 $ 2,244 $ 477 21 % * Not meaningful (1) Refer to Note 18 (Reportable Segments) in the accompanying notes to the consolidated financial statements for the reconciliation to consolidated net income.
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.
For the years ended December 31, 2025 and 2024, the constant-currency adjustment primarily relates to our Japanese yen exposure due to the difference in the average spot rate compared to our core rate. The constant-currency rates established for our core performance measures are long-term management-determined rates, which are closely aligned with our hedging instrument rates.
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.
Cost of sales increased by $1.2 billion, or 13%, when compared to the same period in 2024, primarily driven by the increase in net sales, as discussed above.
Refer to Note 10 (Debt) in the accompanying notes to the consolidated financial statements for additional information. Customer Deposits, Deferred Revenue and Government Incentives We receive cash deposits or consideration, generally non-refundable, from customers under long-term supply agreements.
Customer Deposits, Deferred Revenue and Government Incentives We receive cash deposits or consideration, generally non-refundable, from customers under long-term supply agreements. In addition, we receive government incentives, typically in the form of cash incentives or tax credits primarily for capital expansion projects or for production related operating expenses.

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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 changeOur cash flow hedging activities utilize OTC foreign exchange forward contracts to reduce the risk that movements in exchange rates will adversely affect the net cash flows resulting from the sale of products to foreign customers and purchases from foreign suppliers. We also use OTC foreign exchange forward and option contracts that are not designated as hedged instruments.
Biggest changeOur cash flow and net investment hedging activities utilize OTC foreign exchange forward contracts to reduce the risk that movements in exchange rates will adversely affect the net cash flows associated with purchases from foreign suppliers and investments in foreign subsidiaries with non-USD functional currencies.
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.
Our most significant foreign currency exposure relates to the Japanese yen, South Korean won, Chinese yuan, New Taiwan dollar, Mexican peso and euro. We seek to mitigate the impact of exchange rate movements in our consolidated financial statements 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. 43 Table of Contents
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. 42 Table of Contents
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.
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 on the consolidated statements of income.
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.
In 2025 and 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 performed a sensitivity analysis to assess the market risk associated with foreign currency exposure.
When 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.
A significant portion of our non-U.S. revenue is denominated in Japanese yen. When 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, 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.
As of December 31, 2025, 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 $1.0 billion.
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.
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 $0.4 billion as of December 31, 2025.
These contracts are used to offset economic currency risks. The undesignated hedges limit exposure to foreign functional currency fluctuations related to certain subsidiaries’ monetary assets, monetary liabilities and net earnings in foreign currencies. A significant portion of our non-U.S. revenue is denominated in Japanese yen.
We also use OTC foreign exchange forward and option contracts that are not designated as hedged instruments. These contracts are used to offset economic currency risks. The undesignated hedges limit exposure to foreign functional currency fluctuations related to certain subsidiaries’ monetary assets, monetary liabilities and net earnings in foreign currencies.

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