GLW 10-K Fiscal year ended Dec. 31, 2016

Table of Contents

☒	ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
	For the fiscal year ended December 31, 2016

☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
	For the transition period from ___ to ___
	Commission file number:  1-3247

NEW YORK		16-0393470
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

ONE RIVERFRONT PLAZA, CORNING, NY		14831
(Address of principal executive offices)		(Zip Code)

Title of each class		Name of each exchange on which registered
Common Stock, $0.50 par value per share		New York Stock Exchange

Yes

☒

No

☐

Yes

☐

No

☒

Yes

☒

No

☐

Yes

☒

No

☐

	Large accelerated filer	☒			Accelerated filer	☐
	Non-accelerated filer	☐	(Do not check if a smaller reporting company)		Smaller reporting company	☐

Yes

☐

No

☒

	Total number of patents worldwide		U.S. patents		Important patents expiring between 2017 and 2019
Display Technologies	1,700		370		11
Optical Communications	3,500		1,600		10
Environmental Technologies	800		320		36
Specialty Materials	920		430		8
Life Sciences	600		240		16

	Number of combined customers		% of total segment net sales in 2016
Display Technologies	3		65%
Optical Communications	1		15%
Environmental Technologies	3		85%
Specialty Materials	3		56%
Life Sciences	2		46%

(million square feet)	Total		Domestic		Foreign
Manufacturing	31.6		7.3		24.3
Sales and administrative	2.6		1.9		0.7
Research and development	2.2		1.9		0.3
Warehouse	2.4		1.7		0.7
Total	38.8		12.8		26.0

	First quarter			Second quarter			Third quarter			Fourth quarter
2016
Price range
High	$	21.07		$	21.30		$	23.81		$	25.35
Low	$	16.13		$	18.21		$	19.78		$	22.23
2015
Price range
High	$	25.16		$	22.98		$	20.02		$	19.29
Low	$	21.89		$	19.57		$	15.24		$	16.36

	Years ended December 31,
		2016		2015			2014			2013			2012
Results of operations
Net sales	$	9,390		$	9,111		$	9,715		$	7,819		$	8,012
Research, development and engineering expenses	$	742		$	769		$	815		$	710		$	769
Equity in earnings of affiliated companies	$	284		$	299		$	266		$	547		$	810
Net income attributable to Corning Incorporated (1)	$	3,695		$	1,339		$	2,472		$	1,961		$	1,636
Earnings per common share attributable to Corning Incorporated:
Basic	$	3.53		$	1.02		$	1.82		$	1.35		$	1.10
Diluted	$	3.23		$	1.00		$	1.73		$	1.34		$	1.09
Cash dividends declared per common share	$	0.54		$	0.36		$	0.52		$	0.39		$	0.32
Shares used in computing per share amounts:
Basic earnings per common share		1,020			1,219			1,305			1,452			1,494
Diluted earnings per common share		1,144			1,343			1,427			1,462			1,506
Financial position
Working capital	$	6,297		$	5,455		$	7,914		$	7,145		$	7,739
Total assets	$	27,899		$	28,527		$	30,041		$	28,455		$	29,354
Long-term debt	$	3,646		$	3,890		$	3,205		$	3,249		$	3,361
Total Corning Incorporated shareholders' equity	$	17,893		$	18,788		$	21,579		$	21,162		$	21,486
Selected data
Capital expenditures	$	1,130		$	1,250		$	1,076		$	1,019		$	1,801
Depreciation and amortization	$	1,195		$	1,184		$	1,200		$	1,002		$	997
Number of employees		40,700			35,700			34,600			30,400			28,700

	2016			2015			2014			% change
										16 vs. 15		15 vs. 14
Net sales	$	9,390		$	9,111		$	9,715		3		(6)
Gross margin	$	3,746		$	3,653		$	4,052		3		(10)
(gross margin %)		40%			40%			42%
Selling, general and administrative expenses	$	1,472		$	1,508		$	1,202		(2)		25
(as a % of net sales)		16%			17%			12%
Research, development and engineering expenses	$	742		$	769		$	815		(4)		(6)
(as a % of net sales)		8%			8%			8%
Equity in earnings of affiliated companies	$	284		$	299		$	266		(5)		12
(as a % of net sales)		3%			3%			3%
Translated earnings contract (loss) gain, net	$	(448)		$	80		$	1,369		(660)		(94)
(as a % of net sales)		(5)%			1%			14%
Gain on realignment of equity investment	$	2,676								*		*
(as a % of net sales)		28%
Income before income taxes	$	3,692		$	1,486		$	3,568		148		(58)
(as a % of net sales)		39%			16%			37%
Benefit (provision) for income taxes	$	3		$	(147)		$	(1,096)		102		(87)
(as a % of net sales)		0%			(2)%			(11)%
Net income attributable to Corning Incorporated	$	3,695		$	1,339		$	2,472		176		(46)
(as a % of net sales)		39%			15%			25%

	Years ended December 31,									% Change		% Change
	2016			2015			2014			16 vs. 15		15 vs. 14
Display Technologies	$	3,238		$	3,086		$	3,851		5%		(20)%
Optical Communications		3,005			2,980			2,652		1%		12%
Environmental Technologies		1,032			1,053			1,092		(2)%		(4)%
Specialty Materials		1,124			1,107			1,205		2%		(8)%
Life Sciences		839			821			862		2%		(5)%
All Other		152			64			53		138%		21%
Total net sales	$	9,390		$	9,111		$	9,715		3%		(6)%

	Years ended December 31,
	2016			2015			2014
Dow Corning Corporation (1)	$	82		$	281		$	252
Hemlock Semiconductor Group (2)		212
All other		(10)			18			14
Total equity earnings	$	284		$	299		$	266

	Year ended December 31, 2016						Year ended December 31, 2015						Change 2016 vs. 2015
(in millions)	Income before income taxes			Net income			Income before income taxes			Net income			Income before income taxes			Net income
Hedges related to translated earnings:
Realized gain, net	$	201		$	127		$	653		$	410		$	(452)		$	(283)
Unrealized (loss) gain		(649)			(409)			(573)			(362)			(76)			(47)
Total translated earnings contract (loss) gain	$	(448)		$	(282)		$	80		$	48		$	(528)		$	(330)

	Year ended December 31, 2015						Year ended December 31, 2014						Change 2015 vs. 2014
(in millions)	Income before income taxes			Net income			Income before income taxes			Net income			Income before income taxes			Net income
Hedges related to translated earnings:
Realized gain, net	$	653		$	410		$	274		$	224		$	379		$	186
Unrealized (loss) gain		(573)			(362)			1,095			692			(1,668)			(1,054)
Total translated earnings contract gain (loss)	$	80		$	48		$	1,369		$	916		$	(1,289)		$	(868)

	Years ended December 31,
	2016			2015			2014
Japanese yen-denominated hedges	$	14.9		$	8.3		$	9.8
South Korean won-denominated hedges		1.2			3.3			2.3
Euro-denominated hedges		0.3			0.3
Chinese yuan-denominated hedges		0.3
Total gross notional value outstanding	$	16.7		$	11.9		$	12.1

	Years ended December 31,
	2016			2015			2014
Benefit (provision) for income taxes	$	3		$	(147)		$	(1,096)
Effective tax rate		(0.1)%			9.9%			30.7%

	Years ended December 31,
	2016			2015			2014
Net income attributable to Corning Incorporated	$	3,695		$	1,339		$	2,472
Net income attributable to Corning Incorporated used in basic earnings per common share calculation (1)	$	3,597		$	1,241		$	2,378
Net income attributable to Corning Incorporated used in diluted earnings per common share calculation (1)	$	3,695		$	1,339		$	2,472
Basic earnings per common share	$	3.53		$	1.02		$	1.82
Diluted earnings per common share	$	3.23		$	1.00		$	1.73
Weighted-average common shares outstanding - basic		1,020			1,219			1,305
Weighted-average common shares outstanding - diluted		1,144			1,343			1,427

	Years ended December 31,
(In millions)	2016			2015			2014
Net income attributable to Corning Incorporated	$	3,695		$	1,339		$	2,472
Foreign currency translation adjustments and other		(104)			(590)			(1,073)
Net unrealized (losses) gain on investments		(3)			1			(1)
Unamortized gains (losses) and prior service credits (costs) for postretirement benefit plans		241			121			(281)
Net unrealized gains (losses) on designated hedges		1			(36)			4
Other comprehensive income (loss), net of tax		135			(504)			(1,351)
Comprehensive income attributable to Corning Incorporated	$	3,830		$	835		$	1,121

	2016			2015			2014			% change
										16 vs. 15		15 vs. 14
Core net sales	$	9,710		$	9,800		$	9,955		(1)%		(2)%
Core equity in earnings of affiliated companies	$	250		$	269		$	310		(7)%		(13)%
Core earnings	$	1,774		$	1,882		$	2,023		(6)%		(7)%

	Years ended December 31,									% Change		% Change
	2016			2015			2014			16 vs. 15		15 vs. 14
Display Technologies	$	3,556		$	3,774		$	4,092		(6)%		(8)%
Optical Communications		3,005			2,980			2,652		1%		12%
Environmental Technologies		1,032			1,053			1,092		(2)%		(4)%
Specialty Materials		1,124			1,107			1,205		2%		(8)%
Life Sciences		839			821			862		2%		(5)%
All Other		154			65			52		137%		25%
Total core net sales	$	9,710		$	9,800		$	9,955		(1)%		(2)%

	2016			2015			2014			% change
										16 vs. 15		15 vs. 14
Dow Corning Corporation (1)	$	98		$	245		$	287		(60)%		(15)%
Hemlock Semiconductor Group (2)		154
All other		(2)			24			23		(108)%		4%
Total core equity earnings	$	250		$	269		$	310		(7)%		(13)%

	2016			2015			2014
Core earnings attributable to Corning Incorporated	$	1,774		$	1,882		$	2,023
Less:  Series A convertible preferred stock dividend		98			98			94
Core earnings available to common stockholders - basic		1,676			1,784			1,929
Add:  Series A convertible preferred stock dividend		98			98			94
Core earnings available to common stockholders - diluted	$	1,774		$	1,882		$	2,023
Weighted-average common shares outstanding - basic		1,020			1,219			1,305
Effect of dilutive securities:
Stock options and other dilutive securities		9			9			12
Series A convertible preferred stock		115			115			110
Weighted-average common shares outstanding - diluted		1,144			1,343			1,427
Core basic earnings per common share	$	1.64		$	1.46		$	1.48
Core diluted earnings per common share	$	1.55		$	1.40		$	1.42

	Year ended December 31, 2016
	Net sales			Equity earnings			Income before income taxes			Net income			Effective tax rate (a)		Earnings per share
As reported	$	9,390		$	284		$	3,692		$	3,695		0%		$	3.23
Constant-yen (1)		316			4			300			222					0.19
Constant-won (1)		4			(1)			(47)			(34)					(0.03)
Translated earnings contract loss (2)								448			282					0.25
Acquisition-related costs (3)								127			107					0.09
Discrete tax items and other tax-related adjustments (4)											(27)					(0.02)
Litigation, regulatory and other legal matters (5)								55			70					0.06
Restructuring, impairment and other charges (6)								199			138					0.12
Equity in earnings of affiliated companies (8)					(37)			(37)			(18)					(0.02)
Impacts from the acquisition of Samsung Corning Precision Materials (9)								(49)			(42)					(0.04)
Pension mark-to-market adjustment (11)								67			44					0.04
Gain on realignment of equity investment (12)								(2,676)			(2,676)					(2.34)
Taiwan power outage (13)								17			13					0.01
Core performance measures	$	9,710		$	250		$	2,096		$	1,774		15.4%		$	1.55

	Year ended December 31, 2015
	Net sales			Equity earnings			Income before income taxes			Net income			Effective tax rate (a)		Earnings per share
As reported	$	9,111		$	299		$	1,486		$	1,339		9.9%		$	1.00
Constant-yen (1)		687			6			567			423					0.31
Constant-won (1)		2			(2)			(25)			(19)					(0.01)
Translated earnings contract gain (2)								(80)			(48)					(0.04)
Acquisition-related costs (3)								55			36					0.03
Discrete tax items and other tax-related adjustments (4)											36					0.03
Litigation, regulatory and other legal matters (5)								5			3
Restructuring, impairment and other charges (6)								46			42					0.03
Equity in earnings of affiliated companies (8)					(34)			(34)			(33)					(0.02)
Impacts from the acquisition of Samsung Corning Precision Materials (9)								(20)			(18)					(0.01)
Post-combination expenses (10)								25			16					0.01
Pension mark-to-market adjustment (11)								165			105					0.08
Core performance measures	$	9,800		$	269		$	2,190		$	1,882		14.1%		$	1.40

	Year ended December 31, 2014
	Net sales			Equity earnings			Income before income taxes			Net income			Effective tax rate (a)		Earnings per share
As reported	$	9,715		$	266		$	3,568		$	2,472		30.7%		$	1.73
Constant-yen (1)*		240			1			197			144					0.10
Constant-won (1)								37			26					0.02
Translated earnings contract gain (2)								(1,369)			(916)					(0.64)
Acquisition-related costs (3)								74			57					0.04
Discrete tax items and other tax-related adjustments (4)											240					0.17
Litigation, regulatory and other legal matters (5)								(1)			(2)
Restructuring, impairment and other charges (6)								86			66					0.05
Liquidation of subsidiary (7)											(3)
Equity in earnings of affiliated companies (8)					43			43			38					0.03
Gain on previously held equity investment (9)								(394)			(292)					(0.20)
Settlement of pre-existing contract (9)								320			320					0.22
Contingent consideration fair value adjustment (9)								(249)			(194)					(0.14)
Post-combination expenses (9)								72			55					0.04
Impacts from the acquisition of Samsung Corning Precision Materials (9)								(9)			(12)					(0.01)
Pension mark-to-market adjustment (11)								29			24					0.02
Core performance measures	$	9,955		$	310		$	2,404		$	2,023		15.8%		$	1.42

(1)	Constant-currency adjustments:
	Constant-yen :  Because a significant portion of Display Technologies segment revenues and manufacturing costs are denominated in Japanese yen, management believes it is important to understand the impact on core earnings of translating yen into dollars.  Presenting results on a constant-yen basis mitigates the translation impact of the Japanese yen, and allows management to evaluate performance period over period, analyze underlying trends in our businesses, and establish operational goals and forecasts.  As of January 1, 2015, we used an internally derived management rate of ¥99, which is closely aligned to our current yen portfolio of foreign currency hedges, and have recast all periods presented based on this rate in order to effectively remove the impact of changes in the Japanese yen.
	Constant-won :  Because a significant portion of Corning Precision Materials' costs are denominated in South Korean won, management believes it is important to understand the impact on core earnings from translating won into dollars.  Presenting results on a constant-won basis mitigates the translation impact of the South Korean won, and allows management to evaluate performance period over period, analyze underlying trends in our businesses, and establish operational goals and forecasts without the variability caused by the fluctuations caused by changes in the rate of this currency.  We use an internally derived management rate of ₩1,100, which is consistent with historical prior period averages of the won.
(2)	Translated earnings contract loss (gain) :  We have excluded the impact of the gains and losses of our translated earnings contracts for each period presented.
(3)	Acquisition-related costs :  These expenses include intangible amortization, inventory valuation adjustments and external acquisition-related deal costs.
(4)	Discrete tax items and other tax-related adjustments :  This represents the removal of discrete adjustments attributable to changes in tax law and changes in judgment about the realizability of certain deferred tax assets, as well as other non-operational tax-related adjustments, including the tax effect of transfer pricing out-of-period adjustments in 2014 and 2015.
(5)	Litigation, regulatory and other legal matters :  Includes amounts related to the Pittsburgh Corning Corporation (PCC) asbestos litigation, adjustments to our estimated liability for environmental-related items and other legal matters.
(6)	Restructuring, impairment and other charges :  This amount includes restructuring, impairment and other charges, including goodwill impairment charges and other expenses and disposal costs not classified as restructuring expense.
(7)	Liquidation of subsidiary :  The partial impact of non-restructuring related items due to the decision to liquidate a consolidated subsidiary that is not significant.
(8)	Equity in earnings of affiliated companies :  These adjustments relate to items which do not reflect expected on-going operating results of our affiliated companies, such as restructuring, impairment and other charges and settlements under "take-or-pay" contracts.
(9)	Impacts from the acquisition of Samsung Corning Precision Materials :  Pre-acquisition gains and losses on previously held equity investment and other gains and losses related to the acquisition, including post-combination expenses, fair value adjustments to the indemnity asset related to contingent consideration and the impact of the withholding tax on a dividend from Samsung Corning Precision Materials.
(10)	Post-combination expenses :  Post-combination expenses incurred as a result of an acquisition in the first quarter of 2015.
(11)	Pension mark-to-market adjustment :  Mark-to-market pension gains and losses, which arise from changes in actuarial assumptions and the difference between actual and expected returns on plan assets and discount rates.
(12)	Gain on realignment of equity investment :  Gain recorded upon the completion of the strategic realignment of our ownership interest in Dow Corning.
(13)	Taiwan power outage :  Impact of the power outage that temporarily halted production at our Tainan, Taiwan manufacturing location in the second quarter of 2016.  The impact includes asset write-offs and charges for facility repairs, offset somewhat by partial reimbursement through our insurance program.

	Year ended December 31, 2016						Year ended December 31, 2015						Year ended December 31, 2014
(in millions)	Sales			Net income			Sales			Net income			Sales			Net income
As reported	$	3,238		$	935		$	3,086		$	1,095		$	3,851		$	1,396
Constant-yen (1)*		316			222			686			419			240			142
Constant-won (1)		2			(33)			2			(17)						27
Translated earnings contract gain (2)					(127)						(416)						(290)
Acquisition-related costs (3)																	37
Discrete tax items and other tax-related adjustments (4)																	4
Restructuring, impairment and other charges (6)					44												40
Equity in earnings of affiliated companies (8)																	6
Impacts from the acquisition of Samsung Corning Precision Materials (9)					(42)						(10)			1			(121)
Pension mark-to-market adjustment (11)					1						4						2
Taiwan power outage (13)					6
Core performance measures	$	3,556		$	1,006		$	3,774		$	1,075		$	4,092		$	1,243

	Year ended December 31, 2016						Year ended December 31, 2015						Year ended December 31, 2014
(in millions)	Sales			Net income			Sales			Net income			Sales			Net income
As reported	$	3,005		$	245		$	2,980		$	237		$	2,652		$	194
Acquisition-related costs (3)					23						16						(2)
Litigation, regulatory and other legal matters (5)											13
Restructuring, impairment and other charges (6)					24						(1)						17
Liquidation of subsidiary (7)																	(2)
Post-combination expenses (10)											16
Pension mark-to-market adjustment (11)					5												13
Core performance measures	$	3,005		$	297		$	2,980		$	281		$	2,652		$	220

	Year ended December 31, 2016						Year ended December 31, 2015						Year ended December 31, 2014
(in millions)	Sales			Net income			Sales			Net income			Sales			Net income
As reported	$	1,032		$	133		$	1,053		$	161		$	1,092		$	178
Restructuring, impairment and other charges (6)					3
Pension mark-to-market adjustment (11)																	5
Core performance measures	$	1,032		$	136		$	1,053		$	161		$	1,092		$	183

	Year ended December 31, 2016						Year ended December 31, 2015						Year ended December 31, 2014
(in millions)	Sales			Net income			Sales			Net income			Sales			Net income
As reported	$	1,124		$	174		$	1,107		$	167		$	1,205		$	138
Constant-yen (1)*					(1)						(6)						(3)
Constant-won (1)					(2)						(2)
Translated earnings contract loss (gain) (2)											5						14
Acquisition-related costs (3)																	(1)
Restructuring, impairment and other charges (6)					15						14						12
Taiwan power outage (13)					3
Core performance measures	$	1,124		$	189		$	1,107		$	178		$	1,205		$	160

	Year ended December 31, 2016						Year ended December 31, 2015						Year ended December 31, 2014
(in millions)	Sales			Net income			Sales			Net income			Sales			Net income
As reported	$	839		$	58		$	821		$	61		$	862		$	67
Acquisition-related costs (3)					12						12						14
Restructuring, impairment and other charges (6)					7												2
Core performance measures	$	839		$	77		$	821		$	73		$	862		$	83

										% change
As Reported	2016			2015			2014			16 vs. 15		15 vs. 14
Net sales	$	152		$	64		$	53		138		21
Research, development and engineering expenses	$	191		$	186		$	177		3		5
Equity earnings of affiliated companies	$	(6)		$	17		$	18		(135)		(6)
Net loss	$	(240)		$	(202)		$	(198)		(19)		(2)

	Years ended December 31,
	2016			2015			2014
Net cash provided by operating activities	$	2,521		$	2,809		$	4,709
Net cash provided by (used in) investing activities	$	3,662		$	(685)		$	(962)
Net cash used in financing activities	$	(5,306)		$	(2,603)		$	(2,586)

	December 31,
	2016			2015
Working capital	$	6,297		$	5,455
Current ratio		3.3:1			2.9:1
Trade accounts receivable, net of allowances	$	1,481		$	1,372
Days sales outstanding		54			55
Inventories	$	1,471		$	1,385
Inventory turns		3.8			4.0
Days payable outstanding (1)		45			42
Long-term debt	$	3,646		$	3,890
Total debt to total capital		18%			19%

RATING AGENCY	Rating long-term debt		Outlook last update
Standard & Poor's	BBB+		Stable
			October 27, 2015
Moody's	Baa1		Stable
			October 28, 2015

				Amount of commitment and contingency expiration per period
	Total			Less than 1 year			1 to 3 years			3 to 5 years			5 years and thereafter
Performance bonds and guarantees	$	178		$	102		$	2					$	74
Stand-by letters of credit (1)		51			44					$	1			6
Credit facility to equity company		30			30
Loan guarantees		8						1						7
Subtotal of commitment expirations per period	$	267		$	176		$	3		$	1		$	87
Purchase obligations (6)	$	231		$	127		$	81		$	20		$	3
Capital expenditure obligations (2)		378			378
Total debt (3)		3,557			250			625			362			2,320
Interest on long-term debt (4)		2,222			162			299			259			1,502
Capital leases and financing obligations		359			6			8			10			335
Imputed interest on capital leases and financing obligations		231			18			36			36			141
Minimum rental commitments		545			68			111			76			290
Amended PCC Plan (7)		290			70			85			85			50
Uncertain tax positions (5)		48
Subtotal of contractual obligation payments due by period (5)	$	7,861		$	1,079		$	1,245		$	848		$	4,641
Total commitments and contingencies (5)	$	8,128		$	1,255		$	1,248		$	849		$	4,728

	December 31,
(In millions)	2016			2015			2014
Actual return on plan assets – Domestic plans	$	235		$	(111)		$	287
Expected return on plan assets – Domestic plans		153			166			159
Actual return on plan assets – International plans		75			3			68
Expected return on plan assets – International plans		12			12			15
	December 31,
	2016		2015				2014
Weighted-average actual and expected return on assets:
Actual return on plan assets – Domestic plans	9.62%			(4.23%)			10.82%
Expected return on plan assets – Domestic plans	6.00%			6.00%			6.25%
Actual return on plan assets – International plans	19.06%			0.59%			17.15%
Expected return on plan assets – International plans	3.92%			2.97%			4.12%

Change in assumption	Effect on 2017 pre-tax pension expense		Effect on December 31, 2016 PBO
25 basis point decrease in each spot rate	- 2 million		+ 92 million
25 basis point increase in each spot rate	+ 2 million		- 88 million
25 basis point decrease in expected return on assets	+ 7 million
25 basis point increase in expected return on assets	- 7 million

Change in assumption	Effect on 2017 pre-tax OPEB expense		Effect on December 31, 2016 APBO*
25 basis point decrease in each spot rate	+ 0 million		+ 25 million
25 basis point increase in each spot rate	- 0 million		- 23 million

	A		B		C
Plan category	Number of securities to be issued upon exercise of outstanding options, warrants and rights		Weighted-average exercise price of outstanding options, warrants and rights		Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column A)
Equity compensation plans approved by security holders (1)	36,147,000		$16.91		68,646,314
Equity compensation plans not approved by security holders
Total	36,147,000		$16.91		68,646,314

(a)	Documents filed as part of this report:
					Page
	1.	Financial statements			77
	2.	Financial statement schedule:
			(i)	Valuation accounts and reserves	131
			See separate index to financial statements and financial statement schedules

(b)	Exhibits filed as part of this report:
	2.1	Framework Agreement, dated as of October 22, 2013, by and among Samsung Display Co., Ltd.; Corning Incorporated and the other parties thereto.  (Incorporated by reference to Exhibit 10.65 to Corning's Form 10-K filed on February 10, 2014, as amended by its Form 10-K/A filed on March 21, 2014).  The Company has omitted certain schedules, exhibits and similar attachments to the Framework Agreement pursuant to Item 601(b)(2) of Regulation S-K.
	2.2	Transaction Agreement, dated December 10, 2015, by and between Corning Incorporated, The Dow Chemical Company, Dow Corning Corporation and HS Upstate Inc. (Incorporated by reference to Exhibit 2.1 of Corning's Form 8-K filed on December 11, 2015).
	2.3	Assignment Agreement, dated as of December 29, 2015, between Samsung Display Co., Ltd., Corning Incorporated, Corning Precision Materials Co., Ltd., and Corning Luxembourg S.àr.l., Corning Hungary Data Services Limited Liability Company, Corning Japan K.K., and Samsung Corning Advanced Glass LLC (Incorporated by reference to Exhibit 2.1 of Corning's Form 8-K filed on December 29, 2015).
	3 (i)	Restated Certificate of Incorporation dated April 27, 2012, filed with the Secretary of State of the State of New York on April 27, 2012 (Incorporated by reference to Exhibit 3(i) 1 of Corning's Form 8-K filed on May 1, 2012).
	3 (i)(1)	Certificate of Amendment to the Restated Certificate of Incorporation dated January 14, 2014, filed with the Secretary of State of the State of New York on January 14, 2014 (Incorporated by reference to Exhibit 3(i) of Corning's Form 8-K filed on January 15, 2014).
	3 (ii)	Amended and Restated By-Laws of Corning Incorporated, effective as of December 7, 2015 (Incorporated by reference to Exhibit 3(ii) of Corning's Form 8-K filed December 7, 2015).
	4.1	Indenture, dated November 8, 2000, by and between the Company and of The Bank of New York Mellon Trust Company, N.A. (successor to J. P. Morgan Chase & Co., formerly The Chase Manhattan Bank), as trustee (Incorporated by reference to Exhibit 4.01 to Corning's Registration Statement on Form S-3, Registration Statement No. 333-57082).  The Company agrees to furnish to the Commission on request copies of other instruments with respect to long-term debt.
	4.2	Form of certificate for shares of the common stock (Incorporated by reference to Exhibit 4 to Corning's registration statement on Form S-8 dated May 7, 2010 (Registration Statement No. 333-166642)).  The terms of the Company's Fixed Rate Cumulative Convertible Preferred Stock, Series A are reflected in the Certificate of Amendment to the Restated Certificate of Incorporation dated January 14, 2014, filed with the Secretary of State of the State of New York on January 14, 2014 and included as Exhibit 3(i)(1) hereto.
	4.3	Shareholder Agreement, dated as of October 22, 2013, by and between Samsung Display Co., Ltd. and Corning Incorporated (Incorporated by reference to Exhibit 10.66 to Corning's Form 10-K filed on February 10, 2014, as amended by its Form 10-K/A filed on March 21, 2014).
	4.4	Standstill Agreement, dated as of October 22, 2013, by and among Samsung Electronics Co., Ltd., Samsung Display Co., Ltd. and Corning Incorporated (Incorporated by reference to Exhibit 10.67 to Corning's Form 10-K filed on February 10, 2014, as amended by its Form 10-K/A filed on March 21, 2014).

	10.1		2000 Employee Equity Participation Program and 2003 Amendments (Incorporated by reference to Exhibit 1 of Corning Proxy Statement, Definitive 14A filed March 10, 2003 for April 24, 2003 Annual Meeting of Shareholders).
	10.2		2003 Variable Compensation Plan (Incorporated by reference to Exhibit 2 of Corning Proxy Statement, Definitive 14A filed March 10, 2003 for April 24, 2003 Annual Meeting of Shareholders).
	10.3		2003 Equity Plan for Non-Employee Directors (Incorporated by reference to Exhibit 3 of Corning Proxy Statement, Definitive 14A filed March 10, 2003 for April 24, 2003 Annual Meeting of Shareholders).
	10.4		Form of Officer Severance Agreement dated as of February 1, 2004 between Corning Incorporated and each of the following individuals:  James P. Clappin, James B. Flaws, Kirk P. Gregg, and Lawrence D. McRae (Incorporated by reference to Exhibit 10.1 of Corning's Form 10-Q filed May 4, 2004).
	10.5		Form of Amendment dated as of February 1, 2004 to Change In Control Agreement dated as of October 4, 2000 between Corning Incorporated and the following individuals:  James P. Clappin, James B. Flaws, Kirk P. Gregg, and Lawrence D. McRae (Incorporated by reference to Exhibit 10.4 of Corning's Form 10-Q filed May 4, 2004).
	10.6		Form of Change In Control Amendment dated as of October 4, 2000 between Corning Incorporated and the following individuals:  James P. Clappin, James B. Flaws, Kirk P. Gregg and Lawrence D. McRae (Incorporated by reference to Exhibit 10.5 of Corning's Form 10-Q filed May 4, 2004).
	10.7	Amendment dated as of February 1, 2004 to Change In Control Agreement dated as of April 23, 2002 between Corning Incorporated and Wendell P. Weeks (Incorporated by reference to Exhibit 10.8 of Corning's Form 10-Q filed May 4, 2004).
	10.8	Change In Control Agreement dated as of April 23, 2002 between Corning Incorporated and Wendell P. Weeks (Incorporated by reference to Exhibit 10.9 of Corning's Form 10-Q filed May 4, 2004).
	10.9	Form of Corning Incorporated Incentive Stock Plan Agreement for Restricted Stock Grants (Incorporated by reference to Exhibit 10.1 of Corning's Form 10-Q filed October 28, 2004).
	10.10	Form of Corning Incorporated Incentive Stock Plan Agreement for Restricted Stock Retention Grants (Incorporated by reference to Exhibit 10.2 of Corning's Form 10-Q filed October 28, 2004).
	10.11	Form of Corning Incorporated Incentive Stock Option Agreement (Incorporated by reference to Exhibit 10.3 of Corning's Form 10-Q filed October 28, 2004).
	10.12	Form of Corning Incorporated Non-Qualified Stock Option Agreement (Incorporated by reference to Exhibit 10.4 of Corning's Form 10-Q filed October 28, 2004).
	10.13	2005 Employee Equity Participation Program (Incorporated by reference to Exhibit I of Corning Proxy Statement, Definitive 14A filed March 1, 2005 for April 28, 2005 Annual Meeting of Shareholders).
	10.14	2006 Variable Compensation Plan (Incorporated by reference to Appendix J of Corning Proxy Statement, Definitive 14A filed March 8, 2006 for April 27, 2006 Annual Meeting of Shareholders).
	10.15	Amended 2003 Equity Plan for Non-Employee Directors (Incorporated by reference to Appendix K of Corning Proxy Statement, Definitive 14A filed March 8, 2006 for April 27, 2006 Annual Meeting of Shareholders).
	10.16	Amended Corning Incorporated 2003 Equity Plan for Non-Employee Directors effective October 4, 2006 (Incorporated by reference to Exhibit 10.28 of Corning's Form 10-K filed February 25, 2007).
	10.17	Amended Corning Incorporated 2005 Employee Equity Participation Program effective October 4, 2006 (Incorporated by reference to Exhibit 10.29 of Corning's Form 10-K filed February 25, 2007).
	10.18	Form of Corning Incorporated Incentive Stock Plan Agreement for Restricted Stock Grants, amended effective December 6, 2006 (Incorporated by reference to Exhibit 10.30 of Corning's Form 10-K filed February 25, 2007).
	10.19	Executive Supplemental Pension Plan effective February 7, 2007 and signed February 12, 2007 (Incorporated by reference to Exhibit 10.31 of Corning's Form 10-K filed February 25, 2007).

	10.20	Executive Supplemental Pension Plan as restated and signed April 10, 2007 (Incorporated by reference to Exhibit 10 of Corning's Form 10-Q filed April 27, 2007).
	10.21	Amendment No. 1 to 2006 Variable Compensation Plan dated October 3, 2007 (Incorporated by reference to Exhibit 10.34 of Corning's Form 10-K filed February 15, 2008).
	10.22	Corning Incorporated Goalsharing Plan dated October 3, 2007 (Incorporated by reference to Exhibit 10.35 of Corning's Form 10-K filed February 15, 2008).
	10.23	Corning Incorporated Performance Incentive Plan dated October 3, 2007 (Incorporated by reference to Exhibit 10.36 of Corning's Form 10-K filed February 15, 2008).
	10.24	Amendment No. 1 to Deferred Compensation Plan for Directors dated October 3, 2007 (Incorporated by reference to Exhibit 10.37 of Corning's Form 10-K filed February 15, 2008).
	10.25	Corning Incorporated Supplemental Pension Plan dated October 3, 2007 (Incorporated by reference to Exhibit 10.38 of Corning's Form 10-K filed February 15, 2008).
	10.26	Corning Incorporated Supplemental Investment Plan dated October 3, 2007 (Incorporated by reference to Exhibit 10.39 of Corning's Form 10-K filed February 15, 2008).
	10.27	Form of Corning Incorporated Incentive Stock Plan Agreement for Restricted Stock Grants, amended effective December 5, 2007 (Incorporated by reference to Exhibit 10.40 of Corning's Form 10-K filed February 15, 2008).
	10.28	Form of Corning Incorporated Non-Qualified Stock Option Agreement, amended effective December 5, 2007 (Incorporated by reference to Exhibit 10.41 of Corning's Form 10-K filed February 15, 2008).
	10.29	Amendment No. 2 dated February 13, 2008 and Amendment dated as of February 1, 2004 to Letter of Understanding between Corning Incorporated and Wendell P. Weeks, and Letter of Understanding dated April 23, 2002 between Corning Incorporated and Wendell P. Weeks (Incorporated by reference to Exhibit 10.42 of Corning's Form 10-K filed February 15, 2008).
	10.30	Form of Change in Control Agreement Amendment No. 2, effective December 5, 2007 (Incorporated by reference to Exhibit 10.43 of Corning's Form 10-K filed February 15, 2008).
	10.31	Form of Officer Severance Agreement Amendment, effective December 5, 2007 (Incorporated by reference to Exhibit 10.44 of Corning's Form 10-K filed February 15, 2008).
	10.32	Amendment No. 1 to Corning Incorporated Supplemental Investment Plan, approved December 17, 2007 (Incorporated by reference to Exhibit 10.45 of Corning's Form 10-K filed February 15, 2008).
	10.33	Amendment No. 1 to Corning Incorporated Supplemental Pension Plan, approved December 17, 2007 (Incorporated by reference to Exhibit 10.46 of Corning's Form 10-K filed February 15, 2008).
	10.34	Amendment No. 1 to Corning Incorporated Executive Supplemental Pension Plan, approved December 17, 2007 (Incorporated by reference to Exhibit 10.47 of Corning's Form 10-K filed February 15, 2008).
	10.35	Second Amended 2005 Employee Equity Participation Program (Incorporated by reference to Exhibit 10 of Corning's Form 8-K filed April 25, 2008).
	10.36	Amendment No. 2 to Executive Supplemental Pension Plan effective July 16, 2008 (Incorporated by reference to Exhibit 10 of Corning's Form 10-Q filed July 30, 2008).
	10.37	Form of Corning Incorporated Non-Qualified Stock Option Agreement effective as of December 3, 2008 (Incorporated by reference to Exhibit 10.50 of Corning's Form 10-K filed February 24, 2009).
	10.38	Form of Corning Incorporated Incentive Stock Right Agreement effective as of December 3, 2008 (Incorporated by reference to Exhibit 10.51 of Corning's Form 10-K filed February 24, 2009).
	10.39	Form of Corning Incorporated Incentive Stock Plan Agreement for Restricted Stock Grants effective December 3, 2008 (Incorporated by reference to Exhibit 10.52 of Corning's Form 10-K filed February 24, 2009).

	10.40	Form of Change of Control Agreement Amendment No. 3 effective December 19, 2008 (Incorporated by reference to Exhibit 10.53 of Corning's Form 10-K filed February 24, 2009).
	10.41	Form of Officer Severance Agreement Amendment No. 2 effective December 19, 2008 (Incorporated by reference to Exhibit 10.54 of Corning's Form 10-K filed February 24, 2009).
	10.42	Amendment No. 3 dated December 19, 2008 to Letter of Understanding dated April 23, 2002 between Corning Incorporated and Wendell P. Weeks (Incorporated by reference to Exhibit 10.55 of Corning's Form 10-K filed February 24, 2009).
	10.43	Amendment No. 2 to Corning Incorporated Supplemental Investment Plan approved April 29, 2009 (Incorporated by reference to Exhibit 10.1 of Corning's Form 10-Q filed July 29, 2009).
	10.44	Amendment No. 2 to Deferred Compensation Plan dated April 29, 2009 (Incorporated by reference to Exhibit 10.2 of Corning's Form 10-Q filed July 29, 2009).
	10.45	Amendment No. 2 to 2006 Variable Compensation Plan dated December 2, 2009 (Incorporated by reference to Exhibit 10.58 of Corning's Form 10-K filed February 10, 2010).
	10.46	Form of Corning Incorporated Cash Performance Unit Agreement, effective December 2, 2009 (Incorporated by reference to Exhibit 10.59 of Corning's Form 10-K filed February 10, 2010).
	10.47	Form of Corning Incorporated Incentive Stock Right Agreement for Time-Based Restricted Stock Units, effective December 2, 2009 (Incorporated by reference to Exhibit 10.60 of Corning's Form 10-K filed February 10, 2010).
	10.48	2010 Variable Compensation Plan (Incorporated by reference to Appendix A of Corning's Proxy Statement, Definitive 14A filed March 15, 2010 for April 29, 2010 Annual Meeting of Shareholders).
	10.49	2010 Equity Plan for Non-Employee Directors (Incorporated by reference to Appendix B of Corning Proxy Statement, Definitive 14A filed March 15, 2010 for April 29, 2010 Annual Meeting of Shareholders).
	10.50	Compensation Arrangement for Retention of James B. Flaws approved by the Corning Board Compensation Committee on January 3, 2011 (Incorporated by reference to Corning's Form 8-K filed January 3, 2011).
	10.51	Amendment No. 2 to Corning Incorporated Supplemental Pension Plan dated December 18, 2008 (Incorporated by reference to Exhibit 10.66 of Corning's Form 10-K filed February 10, 2011).
	10.52	Form of Corning Incorporated Incentive Stock Right Agreement for Time-Based Incentive Stock Rights, effective January 3, 2011 (Incorporated by reference to Exhibit 10.67 of Corning's Form 10-K filed February 10, 2011).
	10.53	Form of Corning Incorporated Cash Performance Unit Agreement, effective January 3, 2011 (Incorporated by reference to Exhibit 10.68 of Corning's Form 10-K filed February 10, 2011).
	10.54	Amendment No. 2 to Deferred Compensation Plan for Directors dated February 1, 2012 (Incorporated by reference to Exhibit 10.62 of Corning's Form 10-K filed February 13, 2012).
	10.55	Amendment No. 3 to Corning Incorporated Executive Supplemental Pension Plan effective December 31, 2008 (Incorporated by reference to Exhibit 10.59 of Corning's Form 10-K filed February 13, 2013).
	10.56	2012 Long-Term Incentive Plan (Incorporated by reference to Appendix A of Corning Proxy Statement, Definitive 14A filed March 13, 2012, for April 26, 2012 Annual Meeting of Shareholders).
	10.57	Amendment No. 3 to Deferred Compensation Plan for Directors dated December 28, 2012 (Incorporated by reference to Exhibit 10.61 of Corning's Form 10-K filed February 13, 2013).
	10.58	Amendment No. 4 to Corning Incorporated Executive Supplemental Pension Plan effective December 31, 2012 (Incorporated by reference to Exhibit 10.62 of Corning's Form 10-K filed February 13, 2013).
	10.59	Form of Corning Incorporated Cash Performance Unit Agreement, effective January 1, 2014 (Incorporated by reference to Exhibit 10.69 to Corning's Form 10-K filed on February 10, 2014, as amended by its Form 10-K/A filed on March 21, 2014).

	10.60	Amendment No. 4 to Deferred Compensation Plan for Directors dated September 30, 2014 (Incorporated by reference to Exhibit 10.1 of Corning's Form 10-Q filed on October 29, 2014).
	10.61	Amended and Restated Credit Agreement dated as of September 30, 2014, among Corning Incorporated, JPMorgan Chase Bank, N.A., Citibank, N.A., Bank of America, N.A., Deutsche Bank AG New York Branch, The Bank of Tokyo-Mitsubishi UFJ, Ltd., HSBC Bank USA, National Association, Standard Chartered Bank, Sumitomo Mitsui Banking Corporation, Barclays Bank PLC, Goldman Sachs Bank USA, Wells Fargo Bank, National Association, Bank of China New York Branch, and The Bank of New York Mellon (Incorporated by reference to Exhibit 10.1 to Corning's Form 8-K filed on October 3, 2014).
	10.62	2014 Variable Compensation Plan (Incorporated by reference to Appendix B of Corning's Proxy Statement, Definitive 14A filed March 13, 2014 for the April 29, 2014 Annual Meeting of Shareholders).
	10.63	Form of Corning Incorporated Incentive Stock Rights Agreement, effective January 1, 2015 (Incorporated by reference to Exhibit 10.64 of Corning's Form 10-K filed February 13, 2015).
	10.64	Form of Corning Incorporated Cash Performance Unit Agreement, effective January 1, 2015 (Incorporated by reference to Exhibit 10.65 of Corning's Form 10-K filed February 13, 2015).
	10.65	Form of Officer Severance Agreement dated as of January 1, 2015 between Corning Incorporated and each of the following individuals: Martin J. Curran; Eric S. Musser; Christine M. Pambianchi; and R. Tony Tripeny (Incorporated by reference to Exhibit 10.1 of Corning's Form 10-Q filed July 30, 2015).
	10.66	Form of Change in Control Agreement dated as of January 1, 2015 between Corning Incorporated and each of the following individuals: Martin J. Curran; Eric S. Musser; Christine M. Pambianchi; and R. Tony Tripeny (Incorporated by reference to Exhibit 10.2 of Corning's Form 10-Q filed July 30, 2015).
	10.67	Master Confirmation – Uncollared Accelerated Share Repurchase, dated October 28, 2015 by and between Morgan Stanley & Co. LLC and Corning Incorporated (Incorporated by reference to Exhibit 10.67 of Corning's Form 10-K filed February 12, 2016).
	10.68	Tax Matters Agreement, dated December 10, 2015, by and between Corning Incorporated, The Dow Chemical Company, Dow Corning Corporation and HS Upstate Inc. (Incorporated by reference to Exhibit 1.2 of Corning's Form 8-K filed on December 11, 2015).
	10.69	Form of Corning Incorporated Incentive Stock Rights Agreement, effective January 1, 2016 (Incorporated by reference to Exhibit 10.69 of Corning's Form 10-K filed February 12, 2016).
	10.70	Form of Corning Incorporated Cash Performance Unit Agreement, effective January 1, 2016 (Incorporated by reference to Exhibit 10.70 of Corning's Form 10-K filed February 12, 2016).
	10.71	Master Confirmation – Uncollared Accelerated Share Repurchase (Incorporated by reference to Exhibit 10.1 to Corning's Form 10-Q filed on October 27, 2016).
	10.72	Form of Corning Incorporated Incentive Stock Rights Agreement for Employees, effective January 1, 2017.
	10.73	Form of Corning Incorporated Cash Performance Unit Agreement, effective January 1, 2017.
	10.74	Form of Corning Incorporated Restricted Stock Unit Grant Notice and Agreement for Non-Employee Directors (for grants made under the 2012 Equity Plan for Non-Employee Directors), effective January 1, 2017.
	12	Computation of Ratio of Earnings to Fixed Charges and Ratio of Earnings to Combined Fixed Charges and Preferred Stock Dividends.
	14	Corning Incorporated Code of Ethics for Chief Executive Officer and Financial Executives, and Code of Conduct for Directors and Executive Officers (Incorporated by reference to Appendix G of Corning Proxy Statement, Definitive 14A filed March 13, 2012 for April 26, 2012 Annual Meeting of Shareholders).
	21	Subsidiaries of the Registrant at December 31, 2016.
	23	Consent of PricewaterhouseCoopers LLP, Independent Registered Public Accounting Firm.
	24	Powers of Attorney.

	31.1	Certification Pursuant to Rule 13a-15(e) and 15d-15(e), As Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
	31.2	Certification Pursuant to Rule 13a-15(e) and 15d-15(e), As Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
	32	Certification Pursuant to 18 U.S.C. Section 1350, As Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
	101.INS	XBRL Instance Document
	101.SCH	XBRL Taxonomy Extension Schema Document
	101.CAL	XBRL Taxonomy Calculation Linkbase Document
	101.LAB	XBRL Taxonomy Label Linkbase Document
	101.PRE	XBRL Taxonomy Presentation Linkbase Document
	101.DEF	XBRL Taxonomy Definition Document

By		/s/ Wendell P. Weeks		Chairman of the Board of Directors, Chief		February 6, 2017
		(Wendell P. Weeks)		Executive Officer and President
Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the date indicated.
				Capacity		Date
/s/ Wendell P. Weeks				Chairman of the Board of Directors, Chief Executive Officer and President		February 6, 2017
(Wendell P. Weeks)				(Principal Executive Officer)
/s/ R. Tony Tripeny				Senior Vice President and Chief Financial Officer		February 6, 2017
(R. Tony Tripeny)				(Principal Financial Officer)
/s/ Edward A. Schlesinger				Vice President and Corporate Controller		February 6, 2017
(Edward A. Schlesinger)				(Principal Accounting Officer)
*				Director		February 6, 2017
(Donald W. Blair)
*				Director		February 6, 2017
(Stephanie A. Burns)
*				Director		February 6, 2017
(John A. Canning, Jr.)
*				Director		February 6, 2017
(Richard T. Clark)
*				Director		February 6, 2017
(Robert F. Cummings, Jr.)
*				Director		February 6, 2017
(Deborah A. Henretta)
*				Director		February 6, 2017
(Daniel P. Huttenlocher)
*				Director		February 6, 2017
(Kurt M. Landgraf)
*				Director		February 6, 2017
(Kevin J. Martin)

*				Director		February 6, 2017
(Deborah D. Rieman)
*				Director		February 6, 2017
(Hansel E. Tookes II)
*				Director		February 6, 2017
(Mark S. Wrighton)
*By		/s/ Lewis A. Steverson
		(Lewis A. Steverson, Attorney-in-fact)

					Page
Report of Independent Registered Public Accounting Firm					76
Consolidated Statements of Income					77
Consolidated Statements of Comprehensive Income					78
Consolidated Balance Sheets					79
Consolidated Statements of Cash Flows					80
Consolidated Statements of Changes in Shareholders' Equity					81
Notes to Consolidated Financial Statements
	1.		Summary of Significant Accounting Policies		82
	2.		Restructuring, Impairment and Other Charges		89
	3.		Available-for-Sale Investments		89
	4.		Significant Customers		89
	5.		Inventories, Net of Inventory Reserves		89
	6.		Income Taxes		90
	7.		Investments		93
	8.		Acquisitions		96
	9.		Property, Plant and Equipment, Net of Accumulated Depreciation		100
	10.		Goodwill and Other Intangible Assets		100
	11.		Other Assets and Other Liabilities		101
	12		Debt		103
	13.		Employee Retirement Plans		104
	14.		Commitments, Contingencies and Guarantees		112
	15.		Hedging Activities		113
	16.		Fair Value Measurements		116
	17.		Shareholders' Equity		118
	18.		Earnings Per Common Share		123
	19.		Share-based Compensation		123
	20.		Reportable Segments		126
Financial Statement Schedule
	II.		Valuation Accounts and Reserves		131
Quarterly Operating Results (unaudited)					132

Consolidated Statements of Income

Corning Incorporated and Subsidiary Companies

	Years ended December 31,
(In millions, except per share amounts)	2016			2015			2014
Net sales	$	9,390		$	9,111		$	9,715
Cost of sales		5,644			5,458			5,663
Gross margin		3,746			3,653			4,052
Operating expenses:
Selling, general and administrative expenses		1,472			1,508			1,202
Research, development and engineering expenses		742			769			815
Amortization of purchased intangibles		64			54			33
Restructuring, impairment and other charges (Note 2)		77						71
Operating income		1,391			1,322			1,931
Equity in earnings of affiliated companies (Note 7)		284			299			266
Interest income		32			21			26
Interest expense		(159)			(140)			(123)
Transaction-related gain, net (Note 8)								74
Translated earnings contract (loss) gain, net		(448)			80			1,369
Gain on realignment of equity investment		2,676
Other (expense) income, net		(84)			(96)			25
Income before income taxes		3,692			1,486			3,568
Benefit (provision) for income taxes (Note 6)		3			(147)			(1,096)
Net income attributable to Corning Incorporated	$	3,695		$	1,339		$	2,472
Earnings per common share attributable to Corning Incorporated:
Basic (Note 18)	$	3.53		$	1.02		$	1.82
Diluted (Note 18)	$	3.23		$	1.00		$	1.73
Dividends declared per common share (1)	$	0.54		$	0.36		$	0.52

Consolidated Statements of Comprehensive Income

Corning Incorporated and Subsidiary Companies

	Years ended December 31,
(In millions)	2016			2015			2014
Net income attributable to Corning Incorporated	$	3,695		$	1,339		$	2,472
Foreign currency translation adjustments and other		(104)			(590)			(1,073)
Net unrealized (losses) gains on investments		(3)			1			(1)
Unamortized gains (losses) and prior service credits (costs) for postretirement benefit plans		241			121			(281)
Net unrealized gains (losses) on designated hedges		1			(36)			4
Other comprehensive income (loss), net of tax (Note 17)		135			(504)			(1,351)
Comprehensive income attributable to Corning Incorporated	$	3,830		$	835		$	1,121

Consolidated Balance Sheets

Corning Incorporated and Subsidiary Companies

	December 31,
(In millions, except share and per share amounts)	2016			2015
Assets
Current assets:
Cash and cash equivalents	$	5,291		$	4,500
Short-term investments, at fair value (Note 3)					100
Trade accounts receivable, net of doubtful accounts and allowances - $59 and $48		1,481			1,372
Inventories, net of inventory reserves - $151 and $146 (Note 5)		1,471			1,385
Other current assets (Note 8, 11 and 15)		805			912
Total current assets		9,048			8,269
Investments (Note 7)		336			1,975
Property, plant and equipment, net of accumulated depreciation - $9,884 and $9,188 (Note 9)		12,546			12,648
Goodwill, net (Note 10)		1,577			1,380
Other intangible assets, net (Note 10)		796			706
Deferred income taxes (Note 6)		2,325			2,056
Other assets (Note 8, 11 and 15)		1,271			1,493
Total Assets	$	27,899		$	28,527
Liabilities and Equity
Current liabilities:
Current portion of long-term debt and short-term borrowings (Note 12)	$	256		$	572
Accounts payable		1,079			934
Other accrued liabilities (Note 11 and 14)		1,416			1,308
Total current liabilities		2,751			2,814
Long-term debt (Note 12)		3,646			3,890
Postretirement benefits other than pensions (Note 13)		737			718
Other liabilities (Note 11 and 14)		2,805			2,242
Total liabilities		9,939			9,664
Commitments and contingencies (Note 14)
Shareholders' equity (Note 17):
Convertible preferred stock, Series A – Par value $100 per share; Shares authorized 3,100; Shares issued: 2,300		2,300			2,300
Common stock – Par value $0.50 per share; Shares authorized: 3.8 billion; Shares issued: 1,691 million and 1,681 million		846			840
Additional paid-in capital – common stock		13,695			13,352
Retained earnings		16,880			13,832
Treasury stock, at cost; shares held: 765 million and 551 million		(14,152)			(9,725)
Accumulated other comprehensive loss		(1,676)			(1,811)
Total Corning Incorporated shareholders' equity		17,893			18,788
Noncontrolling interests		67			75
Total equity		17,960			18,863
Total Liabilities and Equity	$	27,899		$	28,527

Consolidated Statements of Cash Flows

Corning Incorporated and Subsidiary Companies

	Years ended December 31,
(In millions)		2016			2015			2014
Cash Flows from Operating Activities:
Net income	$	3,695		$	1,339		$	2,472
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation		1,131			1,130			1,167
Amortization of purchased intangibles		64			54			33
Restructuring, impairment and other charges		77						71
Stock compensation charges		42			46			58
Equity in earnings of affiliated companies		(284)			(299)			(266)
Dividends received from affiliated companies		85			143			1,704
Deferred tax (benefit) provision		(308)			54			612
Restructuring payments		(12)			(40)			(39)
Customer deposits		185			197
Employee benefit payments in excess of expense		(92)			(52)			(52)
Translated earnings contract loss (gain)		448			(80)			(1,369)
Unrealized translation losses on transactions		1			268			431
Contingent consideration fair value adjustment		(43)			(13)			(249)
Gain on realignment of equity investment		(2,676)
Changes in certain working capital items:
Trade accounts receivable		(106)			162			(16)
Inventories		(68)			(77)			2
Other current assets		18			(57)			(16)
Accounts payable and other current liabilities		243			(146)			(3)
Other, net		121			180			169
Net cash provided by operating activities		2,521			2,809			4,709
Cash Flows from Investing Activities:
Capital expenditures		(1,130)			(1,250)			(1,076)
Acquisitions of businesses, net of cash (paid) received		(333)			(732)			66
Proceeds from sale of a business					12
Investment in unconsolidated entities		(24)			(33)			(109)
Cash received on realignment of equity investment		4,818
Proceeds from sale of assets to related party		42
(Payments) repayments of loans to unconsolidated entities		(23)			6			23
Short-term investments – acquisitions		(20)			(969)			(1,398)
Short-term investments – liquidations		121			1,629			1,167
Realized gains on translated earnings contracts		201			653			361
Other, net		10			(1)			4
Net cash provided by (used in) investing activities		3,662			(685)			(962)
Cash Flows from Financing Activities:
Net repayments of short-term borrowings and current portion of long-term debt		(85)			(12)			(52)
Proceeds from issuance of long-term debt					745
Proceeds from issuance of short-term debt, net					3			29
(Payments) proceeds from issuance of commercial paper		(481)			481
Payments from the settlement of interest rate swap agreements					(10)
Principal payments under capital lease obligations		(7)			(6)			(6)
Proceeds from issuance of preferred stock (1)								400
Proceeds received for asset financing and related incentives, net		1			1			1
Proceeds from the exercise of stock options		138			102			116
Repurchases of common stock for treasury		(4,227)			(3,228)			(2,483)
Dividends paid		(645)			(679)			(591)
Net cash used in financing activities		(5,306)			(2,603)			(2,586)
Effect of exchange rates on cash		(86)			(330)			(556)
Net increase (decrease) in cash and cash equivalents		791			(809)			605
Cash and cash equivalents at beginning of year		4,500			5,309			4,704
Cash and cash equivalents at end of year	$	5,291		$	4,500		$	5,309

Consolidated Statements of Changes in Shareholders' Equity

Corning Incorporated and Subsidiary Companies

(In millions)	Convertible preferred stock		Common stock		Additional paid-in capital-common		Retained earnings		Treasury stock		Accumulated other comprehensive income (loss)		Total Corning Incorporated shareholders' equity		Non- controlling interests		Total
Balance, December 31, 2013			$	831	$	13,066	$	11,320	$	(4,099)	$	44	$	21,162	$	49	$	21,211
Net income								2,472						2,472		3		2,475
Other comprehensive loss												(1,351)		(1,351)		(1)		(1,352)
Shares issued for acquisition of equity investment company	$	1,900												1,900		15		1,915
Shares issued for cash		400												400				400
Purchase of common stock for treasury						129				(2,612)				(2,483)				(2,483)
Shares issued to benefit plans and for option exercises				5		261				(2)				264				264
Dividends on shares								(771)						(771)				(771)
Other, net										(14)				(14)		7		(7)
Balance, December 31, 2014	$	2,300	$	836	$	13,456	$	13,021	$	(6,727)	$	(1,307)	$	21,579	$	73	$	21,652
Net income								1,339						1,339		9		1,348
Other comprehensive loss												(504)		(504)		(1)		(505)
Purchase of common stock for treasury						(250)				(2,978)				(3,228)				(3,228)
Shares issued to benefit plans and for option exercises				4		146				(1)				149				149
Dividends on shares								(528)						(528)				(528)
Other, net										(19)				(19)		(6)		(25)
Balance, December 31, 2015	$	2,300	$	840	$	13,352	$	13,832	$	(9,725)	$	(1,811)	$	18,788	$	75	$	18,863
Net income								3,695						3,695		10		3,705
Other comprehensive income (loss)												135		135		(6)		129
Purchase of common stock for treasury						165				(4,409)				(4.244)				(4,244)
Shares issued to benefit plans and for option exercises				6		178				(2)				182				182
Dividends on shares								(647)						(647)				(647)
Other, net										(16)				(16)		(12)		(28)
Balance, December 31, 2016	$	2,300	$	846	$	13,695	$	16,880	$	(14,152)	$	(1,676)	$	17,893	$	67	$	17,960

Notes to Consolidated Financial Statements

Corning Incorporated and Subsidiary Companies

	Years ended December 31,
	2016			2015			2014
Non-cash transactions:
Accruals for capital expenditures	$	381		$	298		$	358
Cash paid for interest and income taxes:
Interest (1)	$	184		$	178		$	171
Income taxes, net of refunds received	$	293		$	253		$	577

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

	December 31,
	2016			2015
Finished goods	$	606		$	633
Work in process		303			264
Raw materials and accessories		270			200
Supplies and packing materials		292			288
Total inventories, net of inventory reserves	$	1,471		$	1,385

	Years ended December 31,
	2016			2015			2014
U.S. companies	$	2,658		$	426		$	2,384
Non-U.S. companies		1,034			1,060			1,184
Income before income taxes	$	3,692		$	1,486		$	3,568

	Years ended December 31,
	2016			2015			2014
Current:
Federal	$	(1)		$	(40)		$	(38)
State and municipal		(17)			(20)			(32)
Foreign		(287)			(33)			(414)
Deferred:
Federal		310			(144)			(411)
State and municipal		48			(30)			9
Foreign		(50)			120			(210)
Benefit (provision) for income taxes	$	3		$	(147)		$	(1,096)

	Years ended December 31,
	2016		2015		2014
Statutory U.S. income tax rate	35.0%		35.0%		35.0%
State income tax (benefit), net of federal effect	(0.3)		0.1		4.9
Rate difference on foreign earnings (1)	(9.2)		(19.8)		(8.3)
Uncertain tax positions	(0.1)		4.3		(0.1)
Equity earnings impact	(0.4)		(5.4)		(2.0)
Valuation allowances	1.2		(4.2)		0.8
Realignment of Dow Corning interest (2)	(28.2)
Other items, net	1.9		(0.1)		0.4
Effective income tax (benefit) rate	(0.1)%		9.9%		30.7%

	December 31,
	2016			2015
Loss and tax credit carryforwards	$	1,465		$	1,151
Other assets		62			69
Asset impairments and restructuring reserves		154			153
Postretirement medical and life benefits		283			276
Other accrued liabilities		190			265
Other employee benefits		462			505
Gross deferred tax assets		2,616			2,419
Valuation allowance		(270)			(238)
Total deferred tax assets		2,346			2,181
Intangible and other assets		(104)			(181)
Fixed assets		(234)			(284)
Total deferred tax liabilities		(338)			(465)
Net deferred tax assets	$	2,008		$	1,716

	December 31,
	2016			2015
Deferred tax assets	$	2,325		$	2,056
Deferred tax liabilities		(317)			(340)
Net deferred tax assets	$	2,008		$	1,716

				Expiration
	Amount			2017-2021			2022-2026			2027-2036			Indefinite
Net operating losses	$	416		$	144		$	46		$	8		$	218
Tax credits		1,049			420			70			523			36
Totals as of December 31, 2016	$	1,465		$	564		$	116		$	531		$	254

	2016			2015
Balance at January 1	$	253		$	10
Additions based on tax positions related to the current year		10
Additions for tax positions of prior years		4			245
Reductions for tax positions of prior years		(18)			(1)
Settlements and lapse of statute of limitations		(6)			(1)
Balance at December 31	$	243		$	253

	Ownership interest				December 31,
					2016			2015
Affiliated companies accounted for by the equity method
Dow Corning (1)		50%						$	1,483
All other (2)	20%	to	50%		$	269			422
						269			1,905
Other investments						67			70
Subtotal Investment Assets					$	336		$	1,975
Affiliated companies accounted for by the equity method
HSG (3)		50%			$	241
Subtotal Investment Liabilities					$	241

	Years ended December 31,
	2016			2015			2014
Statement of operations:
Net sales	$	4,024		$	6,461		$	7,124
Gross profit	$	1,006		$	1,606		$	1,701
Net income	$	565		$	586		$	647
Corning's equity in earnings of affiliated companies	$	284		$	299		$	266
Related party transactions:
Corning sales to affiliated companies	$	95		$	75		$	53
Corning purchases from affiliated companies	$	19		$	19		$	25
Corning transfers of assets, at cost, to affiliated companies	$	42
Dividends received from affiliated companies	$	85		$	143		$	130
Royalty income from affiliated companies							$	2
	December 31,
	2016			2015
Balance sheet:
Current assets	$	1,522		$	5,228
Noncurrent assets	$	2,112		$	6,453
Short-term borrowings, including current portion of long-term debt	$	3		$	6
Other current liabilities	$	715		$	1,461
Long-term debt	$	23		$	800
Other long-term liabilities	$	2,523		$	4,557
Non-controlling interest	$	267		$	631
Related party transactions:
Balances due from affiliated companies	$	27		$	11
Balances due to affiliated companies				$	1

Cash	$	4,818
Carrying Value of Dow Corning Equity Investment		(1,560)
Carrying Value of HSG Equity Investment		(383)
Other (1)		(199)
Gain	$	2,676

	Years ended December 31,
	2016			2015				2014
Statement of operations:
Net sales	$	2,215		$	5,649			$	6,221
Gross profit (1)	$	588		$	1,472			$	1,543
Net income attributable to Dow Corning	$	163		$	563			$	513
Corning's equity in earnings of Dow Corning	$	82		$	281			$	252
Related party transactions:
Corning purchases from Dow Corning	$	7		$	15			$	15
Dividends received from Dow Corning	$	20		$	143			$	125
	December 31, 2015
Balance sheet:
Current assets				$	4,511
Noncurrent assets				$	6,064
Short-term borrowings, including current portion of long-term debt				$	6
Other current liabilities				$	1,305
Long-term debt				$	785
Other long-term liabilities				$	4,539
Non-controlling interest				$	631

	Amended PCC Plan						Non-PCC			Total Asbestos Litigation Liability
	Equity Interests			Fixed Series of Payments
Fair Value of Asbestos Litigation Liability as of December 31, 2015	$	238		$	290		$	150		$	678
Contribution of PCC & PCE Equity Interests - Carrying Value		(182)									(182)
Gain on Contribution of Equity Interests		(56)									(56)
Other adjustments								(1)			(1)
Asbestos Litigation Liability as of December 31, 2016	$	0		$	290		$	149		$	439

Cash and cash equivalents	$	2
Trade receivables		63
Inventory		47
Property, plant and equipment		117
Other intangible assets		286
Other current and non-current assets		27
Current and non-current liabilities		(117)
Total identified net assets		425
Purchase consideration		(725)
Goodwill (1)	$	300

Net consideration applied to acquired assets	Samsung Display			Corning Incorporated			Samsung Corning Precision Materials
Ownership percentage		42.5%			57.5%			100%
Fair value based on $1.9 billion consideration transferred	$	1,911		$	2,588		$	4,499
Less contingent consideration - receivable		(196)			(265)			(461)
Net fair value of consideration @ 100%		1,715			2,323			4,038
Corning's loss on royalty contract		(136)			(184)			(320)
Fair value post-acquisition	$	1,579		$	2,139		$	3,718
Corning's fair value 57.5% post-acquisition		2,139
Total fair value at January 15, 2014	$	3,718

December 2013 Investment Balance	$	3,709
Dividend (1)		(1,574)
Other		(18)
Net investment book balance at 1/15/2014	$	2,117
Fair value Samsung Corning Precision Materials	$	4,038
57.5% of Samsung Corning Precision Materials (2)		2,323
Working capital adjustment and other		52
57.5% of the pre-acquisition fair value of assets	$	2,375
Gain on previously held equity investment (2)	$	258
Translation gain		136
Net gain	$	394

Cash and cash equivalents (1)	$	133
Trade receivables (3)		357
Inventory (3)		105
Property, plant and equipment (3)		3,595
Other current and non-current assets (3)		71
Debt – current		(32)
Accounts payable and accrued expenses (3)		(357)
Other current and non-current liabilities (3)		(294)
Total identified net assets (3)		3,578
Non-controlling interests		15
Fair value of Samsung Corning Precision Materials on acquisition date		(3,718)
Goodwill (2)(3)	$	125

	December 31,
	2016			2015
Land	$	435		$	438
Buildings		5,540			5,504
Equipment		14,973			14,688
Construction in progress		1,482			1,206
		22,430			21,836
Accumulated depreciation		(9,884)			(9,188)
Total	$	12,546		$	12,648

	Display Technologies			Optical Communications			Specialty Materials			Life Sciences			All Other			Total
Balance at December 31, 2014	$	134		$	238		$	198		$	580					$	1,150
Acquired goodwill (1)					220								$	87			307
Measurement period adjustment					(7)												(7)
Foreign currency translation adjustment		(6)			(12)			(4)			(18)			(1)			(41)
Other (2)								(44)						15			(29)
Balance at December 31, 2015	$	128		$	439		$	150		$	562		$	101		$	1,380
Acquired goodwill (3)					205												205
Measurement period adjustment					(4)												(4)
Foreign currency translation adjustment		(2)			5						(4)			(3)			(4)
Balance at December 31, 2016	$	126		$	645		$	150		$	558		$	98		$	1,577

	December 31,
	2016									2015
	Gross			Accumulated amortization			Net			Gross			Accumulated amortization			Net
Amortized intangible assets:
Patents, trademarks & trade names	$	360		$	176		$	184		$	350		$	162		$	188
Customer list and other		761			149			612			621			103			518
Total	$	1,121		$	325		$	796		$	971		$	265		$	706

	December 31,
	2016			2015
Current assets:
Derivative instruments	$	435		$	522
Other current assets		370			390
Other current assets	$	805		$	912
Non-current assets:
Derivative instruments	$	146		$	473
Contingent consideration asset		289			246
Other non-current assets		836			774
Other assets	$	1,271		$	1,493

	December 31,
	2016			2015
Current liabilities:
Wages and employee benefits	$	487		$	491
Income taxes		150			53
Asbestos litigation		70			238
Derivative instruments		88			55
Other current liabilities		621			471
Other accrued liabilities	$	1,416		$	1,308
Non-current liabilities:
Asbestos litigation	$	369		$	440
Derivative instruments		282			88
Investment in Hemlock Semiconductor Group (1)		241
Defined benefit pension plan liabilities		692			672
Other non-current liabilities		1,221			1,042
Other liabilities	$	2,805		$	2,242

	December 31,
	2016			2015
Current portion of long-term debt and short-term borrowings
Current portion of long-term debt	$	256		$	91
Commercial paper					481
Total current portion of long-term debt and short-term borrowings	$	256		$	572
Long-term debt
Debentures, 8.875%, due 2016				$	64
Debentures, 1.45%, due 2017	$	250			249
Debentures, 1.5%, due 2018		374			373
Debentures, 6.625%, due 2019		245			245
Debentures, 4.25%, due 2020		290			290
Debentures, 8.875%, due 2021		67			68
Debentures, 2.9%, due 2022		372			372
Debentures, 3.70%, due 2023		248			248
Medium-term notes, average rate 7.66%, due through 2023		45			45
Debentures, 7.00%, due 2024		99			99
Debentures, 6.85%, due 2029		167			168
Debentures, callable, 7.25%, due 2036		248			248
Debentures, 4.70%, due 2037		248			247
Debentures, 5.75%, due 2040		395			395
Debentures, 4.75%, due 2042		495			495
Other, average rate 5.02%, due through 2042		359			375
Total long-term debt		3,902			3,981
Less current portion of long-term debt		256			91
Long-term debt	$	3,646		$	3,890

	2017		2018		2019		2020		2021		Thereafter
	$256		$379		$254		$305		$67		$2,655

	Total pension benefits						Domestic pension benefits						International pension benefits
December 31,	2016			2015			2016			2015			2016			2015
Change in benefit obligation
Benefit obligation at beginning of year	$	3,715		$	3,809		$	3,161		$	3,222		$	554		$	587
Service cost		85			90			61			64			24			26
Interest cost		124			144			111			126			13			18
Plan participants' contributions		1			1			1			1
Actuarial loss (gain)		229			(95)			145			(87)			84			(8)
Other		(3)			(8)			1						(4)			(8)
Benefits paid		(210)			(188)			(191)			(165)			(19)			(23)
Foreign currency translation		(54)			(38)									(54)			(38)
Benefit obligation at end of year	$	3,887		$	3,715		$	3,289		$	3,161		$	598		$	554
Change in plan assets
Fair value of plan assets at beginning of year	$	3,058		$	3,263		$	2,616		$	2,814		$	442		$	449
Actual gain (loss) on plan assets		310			(108)			235			(111)			75			3
Employer contributions		125			116			104			77			21			39
Plan participants' contributions		1			1			1			1
Benefits paid		(210)			(188)			(191)			(165)			(19)			(23)
Foreign currency translation		(59)			(26)									(59)			(26)
Fair value of plan assets at end of year	$	3,225		$	3,058		$	2,765		$	2,616		$	460		$	442
Funded status at end of year
Fair value of plan assets	$	3,225		$	3,058		$	2,765		$	2,616		$	460		$	442
Benefit obligations		(3,887)			(3,715)			(3,289)			(3,161)			(598)			(554)
Funded status of plans	$	(662)		$	(657)		$	(524)		$	(545)		$	(138)		$	(112)
Amounts recognized in the consolidated balance sheets consist of:
Noncurrent asset	$	35		$	50								$	35		$	50
Current liability		(18)			(35)		$	(13)		$	(30)			(5)			(5)
Noncurrent liability		(679)			(672)			(511)			(515)			(168)			(157)
Recognized liability	$	(662)		$	(657)		$	(524)		$	(545)		$	(138)		$	(112)
Amounts recognized in accumulated other comprehensive income consist of:
Net actuarial loss	$	348		$	332		$	311		$	305		$	37		$	27
Prior service cost (credit)		30			35			31			37			(1)			(2)
Amount recognized at end of year	$	378		$	367		$	342		$	342		$	36		$	25

	Postretirement benefits
December 31,	2016			2015
Change in benefit obligation
Benefit obligation at beginning of year	$	763		$	862
Service cost		9			13
Interest cost		26			33
Plan participants' contributions		8			7
Actuarial loss (gain)		16			(97)
Other		2			4
Benefits paid		(50)			(61)
Medicare subsidy received		2			2
Benefit obligation at end of year	$	776		$	763
Funded status at end of year
Fair value of plan assets	$	0		$	0
Benefit obligations		(776)			(763)
Funded status of plans	$	(776)		$	(763)
Amounts recognized in the consolidated balance sheets consist of:
Current liability	$	(39)		$	(45)
Noncurrent liability		(737)			(718)
Recognized liability	$	(776)		$	(763)
Amounts recognized in accumulated other comprehensive income consist of:
Net actuarial loss	$	50		$	33
Prior service credit		(15)			(19)
Amount recognized at end of year	$	35		$	14

	December 31,
	2016			2015
Projected benefit obligation	$	3,607		$	3,341
Fair value of plan assets	$	2,787		$	2,635

	December 31,
	2016			2015
Accumulated benefit obligation	$	3,285		$	3,159
Fair value of plan assets	$	2,786		$	2,634

	Total pension benefits						Domestic pension benefits						International pension benefits
December 31,	2016		2015		2014		2016		2015		2014		2016		2015		2014
Service cost	$  85		$  90		$  82		$  61		$  64		$  55		$24		$26		$ 27
Interest cost	124		144		160		111		126		137		13		18		23
Expected return on plan assets	(165)		(178)		(174)		(153)		(166)		(159)		(12)		(12)		(15)
Amortization of prior service cost (credit)	6		6		6		6		7		7				(1)		(1)
Recognition of actuarial loss	67		165		29		55		162		4		12		3		25
Total net periodic benefit expense	$117		$227		$103		$  80		$193		$  44		$37		$34		$ 59
Settlement charge	1						1
Total expense	$118		$227		$103		$  81		$193		$  44		$37		$34		$ 59
Other changes in plan assets and benefit obligations recognized in other comprehensive income:
Curtailment effects					$  (3)												$  (3)
Settlements	$ (2)		$  (1)		(2)		$ (2)								$(1)		(2)
Current year actuarial loss	84		191		212		63		$189		$198		$21		2		14
Recognition of actuarial (loss)	(64)		(165)		(29)		(55)		(162)		(4)		(9)		(3)		(25)
Current year prior service cost					25						25
Amortization of prior service (cost) credit	(6)		(6)		(6)		(6)		(7)		(7)				1		1
Total recognized in other comprehensive (income) loss	$  12		$  19		$197		$  0		$  20		$212		$12		$(1)		$(15)
Total recognized in net periodic benefit cost and other comprehensive (income) loss	$130		$246		$300		$  81		$213		$256		$49		$33		$ 44

	Postretirement benefits
	2016			2015			2014
Service cost	$	9		$	13		$	11
Interest cost		26			33			38
Amortization of net gain (loss)		(1)			3
Amortization of prior service credit		(4)			(7)			(6)
Total net periodic benefit expense	$	30		$	42		$	43
Other changes in plan assets and benefit obligations recognized in other comprehensive income:
Current year actuarial loss (gain)	$	15		$	(96)		$	49
Amortization of actuarial gain (loss)		1			(3)
Current year prior service credit								(5)
Amortization of prior service credit		5			7			6
Total recognized in other comprehensive loss (income)	$	21		$	(92)		$	50
Total recognized in net periodic benefit cost and other comprehensive loss  (income)	$	51		$	(50)		$	93

	Pension benefits
	Domestic						International						Postretirement benefits
	2016		2015		2014		2016		2015		2014		2016		2015		2014
Discount rate	4.01%		4.24%		4.00%		2.29%		3.23%		3.21%		4.07%		4.31%		4.00%
Rate of compensation increase	3.50%		3.50%		3.50%		3.97%		3.92%		3.88%

	Pension benefits
	Domestic						International						Postretirement benefits
	2016		2015		2014		2016		2015		2014		2016		2015		2014
Discount rate	4.24%		4.00%		4.75%		3.23%		3.21%		4.08%		4.31%		4.00%		4.75%
Expected return on plan assets	6.00%		6.00%		6.25%		2.89%		2.97%		4.12%
Rate of compensation increase	3.50%		3.50%		4.00%		3.92%		3.88%		3.85%

Assumed health care trend rates at December 31	2016		2015
Health care cost trend rate assumed for next year	6.75%		7%
Rate that the cost trend rate gradually declines to	5%		5%
Year that the rate reaches the ultimate trend rate	2024		2024

	One-percentage-point increase		One-percentage-point decrease
Effect on annual total of service and interest cost (credit)	$  3		$  (3)
Effect on postretirement benefit obligation	$55		$(45)

	December 31, 2016												December 31, 2015
(in millions)	Total			(Level 1)			(Level 2)			(Level 3)			Total			(Level 1)			(Level 2)			(Level 3)
Equity securities:
U.S. companies	$	318		$	47		$	271					$	336		$	51		$	285
International companies		340			90			250						322			79			243
Fixed income:
U.S. corporate bonds		1,608			175			1,433						1,566			158			1,408
Private equity (1)		137								$	137			163								$	163
Real estate (2)		150									150			61									61
Cash equivalents		100			100									71			71
Commodities (3)		112						112						97						97
Total	$	2,765		$	412		$	2,066		$	287		$	2,616		$	359		$	2,033		$	224

	December 31, 2016												December 31, 2015
(in millions)	Total			(Level 1)			(Level 2)			(Level 3)			Total			(Level 1)			(Level 2)			(Level 3)
Equity securities:
U.S. companies	$	7					$	7					$	7					$	7
International companies		26						26						23						23
Fixed income:
International fixed income		385		$	321			64						347		$	286			61
Insurance contracts		2								$	2			3								$	3
Mortgages														2									2
Cash equivalents		40			40									60			60
Total	$	460		$	361		$	97		$	2		$	442		$	346		$	91		$	5

	Level 3 assets – Domestic						Level 3 assets – International
	Year ended December 2016						Year ended December 2016
(in millions)	Private equity			Real estate			Mortgages			Insurance contracts
Beginning balance at December 31, 2015	$	163		$	61		$	2		$	3
Actual return on plan assets relating to assets still held at the reporting date		14			(7)
Transfers in and/or out of level 3		(40)			96			(2)			(1)
Ending balance at December 31, 2016	$	137		$	150		$	0		$	2

	Level 3 assets – Domestic						Level 3 assets – International
	Year ended December 2015						Year ended December 2015
(in millions)	Private equity			Real estate			Mortgages			Insurance contracts
Beginning balance at December 31, 2014	$	192		$	84		$	7		$	5
Actual return on plan assets relating to assets still held at the reporting date		16			12
Transfers in and/or out of level 3		(45)			(35)			(5)			(2)
Ending balance at December 31, 2015	$	163		$	61		$	2		$	3

	Expected benefit payments
	Domestic pension benefits		International pension benefits	Postretirement benefits		Expected federal subsidy payments postretirement benefits
2017	$   182		$  19	$  43		$  3
2018	$   189		$  24	$  42		$  3
2019	$   196		$  24	$  42		$  3
2020	$   201		$  27	$  42		$  3
2021	$   206		$  27	$  43		$  3
2022-2026	$1,118		$172	$215		$17

				Amount of commitment and contingency expiration per period
	Total			Less than 1 year			1 to 3 years			3 to 5 years			5 years and thereafter
Performance bonds and guarantees	$	178		$	102		$	2					$	74
Stand-by letters of credit (1)		51			44					$	1			6
Credit facility to equity company		30			30
Loan guarantees		8						1						7
Subtotal of commitment expirations per period	$	267		$	176		$	3		$	1		$	87
Purchase obligations (6)	$	231		$	127		$	81		$	20		$	3
Capital expenditure obligations (2)		378			378
Total debt (3)		3,557			250			625			362			2,320
Interest on long-term debt (4)		2,222			162			299			259			1,502
Capital leases and financing obligations		359			6			8			10			335
Imputed interest on capital leases and financing obligations		231			18			36			36			141
Minimum rental commitments		545			68			111			76			290
Amended PCC Plan (7)		290			70			85			85			50
Uncertain tax positions (5)		48
Subtotal of contractual obligation payments due by period (5)	$	7,861		$	1,079		$	1,245		$	848		$	4,641
Total commitments and contingencies (5)	$	8,128		$	1,255		$	1,248		$	849		$	4,728

	2017		2018		2019		2020		2021		2022 and thereafter
	$68		$63		$48		$40		$36		$290

							Asset derivatives								Liability derivatives
	Notional amount						Balance sheet location		Fair value						Balance sheet location		Fair value
	2016			2015					2016			2015					2016			2015
Derivatives designated as hedging instruments
Foreign exchange contracts (1)	$	458		$	782		Other current assets		$	1		$	5		Other accrued liabilities		$	(29)		$	(10)
							Other assets						1		Other liabilities						(23)
Interest rate contracts		550			550		Other assets								Other liabilities			(5)			(4)
Derivatives not designated as hedging instruments
Foreign exchange contracts, other		890			1,095		Other current assets			11			6		Other accrued liabilities			(7)			(12)
Translated  earnings contracts		16,711			11,972		Other current assets			423			511		Other accrued liabilities			(52)			(33)
							Other assets			146			472		Other liabilities			(277)			(61)
Total derivatives	$	18,609		$	14,399				$	581		$	995				$	(370)		$	(143)

	Effect of derivative instruments on the consolidated financial statements for the years ended December 31
Derivatives in hedging relationships	(Loss)/gain recognized in other comprehensive income (OCI)									Location of gain/(loss) reclassified from accumulated OCI into income effective/ineffective	Gain/(loss) reclassified from accumulated OCI into income ineffective/effective (1)
	2016			2015			2014				2016			2015			2014
Cash flow hedges
-										Net sales	$	4		$	20		$	3
Interest rate hedge				$	(7)		$	(3)		Cost of sales		(36)			6			7
Foreign exchange contracts	$	(33)			(17)			20		Other (expense) income, net		(2)
Total cash flow hedges	$	(33)		$	(24)		$	17			$	(34)		$	26		$	10

			Gain (loss) recognized in income
Undesignated derivatives	Location of gain/(loss) recognized in income		2016			2015			2014
Foreign exchange contracts – balance sheet	Translated earnings contract gain (loss), net		$	4		$	8		$	29
Foreign exchange contracts – loans	Translated earnings contract (loss) gain, net			(31)			(3)			13
Translated earnings contracts	Translated earnings contract (loss) gain, net			(448)			80			1,369
Total undesignated			$	(475)		$	85		$	1,411

			Fair value measurements at reporting date using
(in millions)	December 31, 2016		Quoted prices in active markets for identical assets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
Current assets:
Short-term investments
Other current assets (1)	$435				$435
Non-current assets:
Other assets (1)(2)	$464				$175		$289
Current liabilities:
Other accrued liabilities (1)	$  88				$  88
Non-current liabilities:
Other liabilities (1)	$282				$282

			Fair value measurements at reporting date using
(in millions)	December 31, 2015		Quoted prices in active markets for identical assets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
Current assets:
Short-term investments	$100		$100
Other current assets (1)	$522				$522
Non-current assets:
Other assets (1)(2)	$752				$506		$246
Current liabilities:
Other accrued liabilities (1)	$   55				$  55
Non-current liabilities:
Other liabilities (1)(2)	$   98				$  88		$  10

	Level 3 Roll-Forward – Other Assets
(in millions)	2016		2015
Beginning balance	$246		$445
Unrealized gains (loss)	43		13
Transfer in (out) of level 3			(212)
Ending balance	$289		$246

	Common stock					Treasury stock
	Shares		Par value			Shares		Cost
Balance at December 31, 2013	1,661		$	831		(262)		$	(4,099)
Shares issued to benefit plans and for option exercises	11			5					(2)
Shares purchased for treasury						(135)			(2,612)
Other, net						(1)			(14)
Balance at December 31, 2014 (1)	1,672		$	836		(398)		$	(6,727)
Shares issued to benefit plans and for option exercises	9			4					(1)
Shares purchased for treasury						(151)			(2,978)
Other, net						(2)			(19)
Balance at December 31, 2015	1,681		$	840		(551)		$	(9,725)
Shares issued to benefit plans and for option exercises	10			6					(2)
Shares purchased for treasury						(214)			(4,409)
Other, net									(16)
Balance at December 31, 2016	1,691		$	846		(765)		$	(14,152)

	Foreign currency translation adjustments and other			Unamortized actuarial gains (losses) and prior service (costs) credits			Net unrealized gains (losses) on investments			Net unrealized gains (losses) on designated hedges			Accumulated other comprehensive income (loss)
Balance at December 31, 2013	$	492		$	(428)		$	(14)		$	(6)		$	44
Other comprehensive (loss) income before reclassifications (4)		(821)			(172)			4			10			(979)
Amounts reclassified from accumulated other comprehensive income (loss) (2)(8)					18			1			(6)			13
Equity method affiliates (3)		(252)			(127)			(6)						(385)
Net current-period other comprehensive (loss) income		(1,073)			(281)			(1)			4			(1,351)
Balance at December 31, 2014	$	(581)		$	(709)		$	(15)		$	(2)		$	(1,307)
Other comprehensive (loss) income before reclassifications (5)	$	(487)		$	(59)					$	(18)		$	(564)
Amounts reclassified from accumulated other comprehensive income (loss) (2)					105		$	1			(20)			86
Equity method affiliates (3)		(103)			75						2			(26)
Net current-period other comprehensive (loss) income		(590)			121			1			(36)			(504)
Balance at December 31, 2015	$	(1,171)		$	(588)		$	(14)		$	(38)		$	(1,811)
Other comprehensive income before reclassifications (6)	$	(89)		$	(63)		$	(2)		$	(21)		$	(175)
Amounts reclassified from accumulated other comprehensive income (loss) (2)					40						22			62
Equity method affiliates (3)(7)		(15)			264			(1)						248
Net current-period other comprehensive (loss) income		(104)			241			(3)			1			135
Balance at December 31, 2016	$	(1,275)		$	(347)		$	(17)		$	(37)		$	(1,676)

Reclassifications Out of Accumulated Other Comprehensive Income (AOCI) by Component (1)
Details about AOCI Components	Amount reclassified from AOCI									Affected line item in the consolidated statements of income
	Years ended December 31,
	2016			2015			2014
Amortization of net actuarial loss	$	(62)		$	(168)		$	(29)		(2)
Amortization of prior service (cost) credit		(1)			1					(2)
		(63)			(167)			(29)		Total before tax
		23			62			11		Tax benefit
	$	(40)		$	(105)		$	(18)		Net of tax
Realized gains (losses) on investments				$	(1)		$	(1)		Other income (expense), net
										Tax expense
				$	(1)		$	(1)		Net of tax
Realized (losses) gains on designated hedges	$	4		$	20		$	3		Sales
		(36)			6			7		Cost of sales
		(2)								Other expense (income), net
		(34)			26			10		Total before tax
		12			(6)			(4)		Tax benefit (expense)
	$	(22)		$	20		$	6		Net of tax
Total reclassifications for the period	$	(62)		$	(86)		$	(13)		Net of tax

	Years ended December 31,
	2016			2015			2014
Net income attributable to Corning Incorporated	$	3,695		$	1,339		$	2,472
Less:  Series A convertible preferred stock dividend		98			98			94
Net income available to common stockholders - basic		3,597			1,241			2,378
Plus:  Series A convertible preferred stock dividend		98			98			94
Net income available to common stockholders - diluted	$	3,695		$	1,339		$	2,472
Weighted-average common shares outstanding - basic		1,020			1,219			1,305
Effect of dilutive securities:
Stock options and other dilutive securities		9			9			12
Series A convertible preferred stock		115			115			110
Weighted-average common shares outstanding - diluted		1,144			1,343			1,427
Basic earnings per common share	$	3.53		$	1.02		$	1.82
Diluted earnings per common share	$	3.23		$	1.00		$	1.73
Anti-dilutive potential shares excluded from diluted earnings per common share:
Employee stock options and awards		15			22			24
Accelerated share repurchase forward contract					15			3
Total		15			37			27

	Number of shares (in thousands)		Weighted- average exercise price		Weighted- average remaining contractual term in years		Aggregate intrinsic value (in thousands)
Options outstanding as of December 31, 2015	42,738		$19.40
Granted	1,680		20.01
Exercised	(8,549)		16.16
Forfeited and expired	(4,362)		25.97
Options outstanding as of December 31, 2016	31,507		19.40		3.79		$160,932
Options expected to vest as of December 31, 2016	31,469		19.40		3.79		160,794
Options exercisable as of December 31, 2016	26,723		19.15		2.98		144,236

	2016				2015				2014
Expected volatility	37.1	-	43.1%		43.6	-	44.9%		45.4	-	46.2%
Weighted-average volatility	37.1	-	43.1%		43.6	-	44.9%		45.4	-	46.2%
Expected dividends	2.28	-	2.94%		1.92	-	2.68%		1.90	-	2.09%
Risk-free rate	1.4	-	2.1%		1.9	-	2.1%		2.0	-	2.2%
Average risk-free rate	1.4	-	2.1%		1.9	-	2.1%		2.0	-	2.2%
Expected term (in years)	7.4	-	7.4		7.2	-	7.2		7.2	-	7.2
Pre-vesting departure rate	0.6	-	0.6%		0.6	-	0.6%		0.5	-	0.5%

	Shares (000's)		Weighted- average grant-date fair value
Non-vested shares and share units at December 31, 2015	5,242		$17.91
Granted	1,518		20.80
Vested	(2,014)		14.78
Forfeited	(106)		20.58
Non-vested shares and share units at December 31, 2016	4,640		$20.15

	Display Technologies			Optical Communications			Environmental Technologies			Specialty Materials			Life Sciences			All Other			Total
For the year ended December 31, 2016
Net sales	$	3,238		$	3,005		$	1,032		$	1,124		$	839		$	152		$	9,390
Depreciation (1)	$	598		$	175		$	129		$	109		$	58		$	50		$	1,119
Amortization of purchased intangibles				$	35								$	20		$	8		$	63
Research, development and engineering expenses (2)	$	45		$	147		$	102		$	126		$	24		$	191		$	635
Restructuring, impairment and other charges	$	4		$	5		$	5		$	12		$	3		$	40		$	69
Equity in earnings (loss) of affiliated companies	$	1														$	(6)		$	(5)
Income tax (provision) benefit	$	(372)		$	(129)		$	(65)		$	(85)		$	(28)		$	114		$	(565)
Net income (loss) (3)	$	935		$	245		$	133		$	174		$	58		$	(240)		$	1,305
Investment in affiliated companies, at equity	$	41		$	(1)		$	32								$	252		$	324
Segment assets (4)	$	8,032		$	2,010		$	1,267		$	1,604		$	504		$	750		$	14,167
Capital expenditures	$	464		$	245		$	97		$	120		$	39		$	56		$	1,021
For the year ended December 31, 2015
Net sales	$	3,086		$	2,980		$	1,053		$	1,107		$	821		$	64		$	9,111
Depreciation (1)	$	605		$	163		$	125		$	112		$	60		$	43		$	1,108
Amortization of purchased intangibles				$	32								$	20		$	1		$	53
Research, development and engineering expenses (2)	$	105		$	138		$	93		$	113		$	23		$	186		$	658
Equity in earnings (loss) of affiliated companies	$	(9)														$	17		$	8
Income tax (provision) benefit	$	(499)		$	(115)		$	(78)		$	(85)		$	(30)		$	89		$	(718)
Net income (loss) (3)	$	1,095		$	237		$	161		$	167		$	61		$	(202)		$	1,519
Investment in affiliated companies, at equity	$	43		$	1		$	32								$	261		$	337
Segment assets (4)	$	8,344		$	1,783		$	1,288		$	1,407		$	514		$	738		$	14,074
Capital expenditures	$	594		$	171		$	117		$	88		$	32		$	57		$	1,059
For the year ended December 31, 2014
Net sales	$	3,851		$	2,652		$	1,092		$	1,205		$	862		$	53		$	9,715
Depreciation (1)	$	676		$	154		$	119		$	113		$	60		$	31		$	1,153
Amortization of purchased intangibles				$	10								$	22					$	32
Research, development and engineering expenses (2)	$	138		$	141		$	91		$	140		$	22		$	177		$	709
Restructuring, impairment and other charges	$	50		$	17								$	1					$	68
Equity in earnings (loss) of affiliated companies	$	(20)					$	2								$	18
Income tax (provision) benefit	$	(608)		$	(111)		$	(89)		$	(75)		$	(33)		$	83		$	(833)
Net income (loss) (3)	$	1,396		$	194		$	178		$	138		$	67		$	(198)		$	1,775
Investment in affiliated companies, at equity	$	63		$	2		$	32								$	214		$	311
Segment assets (4)	$	8,863		$	1,737		$	1,297		$	1,288		$	553		$	518		$	14,256
Capital expenditures	$	492		$	145		$	173		$	104		$	30		$	101		$	1,045

	Years ended December 31,
	2016			2015			2014
Net income of reportable segments	$	1,545		$	1,721		$	1,973
Net loss of All Other		(240)			(202)			(198)
Unallocated amounts:
Net financing costs (1)		(107)			(111)			(113)
Share-based compensation expense		(42)			(46)			(58)
Exploratory research		(107)			(109)			(102)
Corporate contributions		(49)			(52)			(43)
Gain on realignment of equity investment		2,676
Equity in earnings of affiliated companies, net of impairments (2)		292			291			269
Unrealized (loss) gain on translated earnings contracts		(649)			(573)			1,095
Resolution of Department of Justice investigation		(98)
Income tax benefit (provision)		573			568			(267)
Other corporate items		(99)			(148)			(84)
Net income	$	3,695		$	1,339		$	2,472

	December 31,
	2016			2015			2014
Total assets of reportable segments	$	13,417		$	13,336		$	13,738
Non-reportable segments		750			738			518
Unallocated amounts:
Current assets (1)		6,070			5,488			7,402
Investments (2)		12			1,638			1,490
Property, plant and equipment, net (3)		1,681			1,692			1,657
Other non-current assets (4)		5,969			5,635			5,258
Total assets	$	27,899		$	28,527		$	30,063

	Years Ended December 31,
Revenues from External Customers	2016			2015			2014
Display Technologies	$	3,238		$	3,086		$	3,851
Optical Communications
Carrier network		2,274			2,194			2,036
Enterprise network		731			786			616
Total Optical Communications		3,005			2,980			2,652
Environmental Technologies
Automotive and other		585			528			528
Diesel		447			525			564
Total Environmental Technologies		1,032			1,053			1,092
Specialty Materials
Corning Gorilla Glass		807			810			846
Advanced optics and other specialty glass		317			297			359
Total Specialty Materials		1,124			1,107			1,205
Life Sciences
Labware		512			512			536
Cell culture products		327			309			326
Total Life Science		839			821			862
All Other		152			64			53
	$	9,390		$	9,111		$	9,715

	2016						2015						2014
	Net sales (2)			Long- lived assets (1)			Net sales (2)			Long- lived assets (1)			Net sales (2)			Long- lived assets (1)
North America
United States	$	2,625		$	6,473		$	2,719		$	8,241		$	2,275		$	7,998
Canada		282			142			244			144			311
Mexico		50			134			37			135			35			50
Total North America		2,957			6,749			3,000			8,520			2,621			8,048
Asia Pacific
Japan		450			1,008			440			1,160			608			1,311
Taiwan		840			2,347			841			2,301			1,092			2,005
China		2,083			1,140			1,869			1,036			1,893			1,115
Korea		1,444			3,413			1,501			3,552			1,882			3,595
Other		363			167			331			98			308			109
Total Asia Pacific	5,180				8,075			4,982			8,147			5,783			8,135
Europe
Germany		363			154			326			189			397			217
France		83			266			90			263			81			277
United Kingdom		182			41			164			47			187			47
Other		352			1,047			311			987			369			1,109
Total Europe		980			1,508			891			1,486			1,034			1,650
All Other		273			44			238			36			277			55
Total	$	9,390		$	16,376		$	9,111		$	18,189		$	9,715		$	17,888

Year ended December 31, 2016	Balance at beginning of period			Additions			Net deductions and other			Balance at end of period
Doubtful accounts and allowances	$	48		$	11					$	59
Deferred tax valuation allowance	$	238		$	55		$	23		$	270
Accumulated amortization of purchased intangible assets	$	265		$	64		$	4		$	325
Reserves for accrued costs of business restructuring	$	3		$	15		$	13		$	5

Year ended December 31, 2015	Balance at beginning of period			Additions			Net deductions and other			Balance at end of period
Doubtful accounts and allowances	$	47		$	1					$	48
Deferred tax valuation allowance	$	298		$	30		$	90		$	238
Accumulated amortization of purchased intangible assets	$	216		$	49					$	265
Reserves for accrued costs of business restructuring	$	44					$	41		$	3

Year ended December 31, 2014	Balance at beginning of period			Additions			Net deductions and other			Balance at end of period
Doubtful accounts and allowances	$	28		$	19					$	47
Deferred tax valuation allowance	$	286		$	186		$	174		$	298
Accumulated amortization of purchased intangible assets	$	185		$	31					$	216
Reserves for accrued costs of business restructuring	$	44		$	49		$	49		$	44

2016	First quarter			Second quarter			Third quarter			Fourth quarter			Total year
Net sales	$	2,047		$	2,360		$	2,507		$	2,476		$	9,390
Gross margin	$	764		$	951		$	1,041		$	990		$	3,746
Equity in earnings of affiliated companies	$	59		$	41		$	19		$	165		$	284
Benefit (provision) for income taxes	$	304		$	504		$	27		$	(832)		$	3
Net (loss) income attributable to Corning Incorporated	$	(368)		$	2,207		$	284		$	1,572		$	3,695
Basic (loss) earnings per common share	$	(0.36)		$	2.06		$	0.27		$	1.64		$	3.53
Diluted (loss) earnings per common share	$	(0.36)		$	1.87		$	0.26		$	1.47		$	3.23

2015	First quarter			Second quarter			Third quarter			Fourth quarter			Total year
Net sales	$	2,265		$	2,343		$	2,272		$	2,231		$	9,111
Gross margin	$	929		$	975		$	892		$	857		$	3,653
Equity in earnings of affiliated companies	$	94		$	62		$	39		$	104		$	299
(Provision) benefit for income taxes	$	(86)		$	(110)		$	(6)		$	55		$	(147)
Net income attributable to Corning Incorporated	$	407		$	496		$	212		$	224		$	1,339
Basic earnings per common share	$	0.30		$	0.38		$	0.16		$	0.17		$	1.02
Diluted earnings per common share	$	0.29		$	0.36		$	0.15		$	0.17		$	1.00