v3.26.1
Income Taxes
 6 Months Ended
Jun. 30, 2026
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
The following table presents the provision for income taxes and the related effective tax rate (in millions, except percentages):
Three months ended
June 30,		Six months ended
June 30,
2026202520262025
Provision for income taxes$(40)$(84)$(161)$(139)
Effective tax rate6.2%14.4%13.7%16.9%
For the three months ended June 30, 2026, the effective tax rate differed from the United States (“U.S.”) statutory rate of 21%, primarily due to adjustments to share-based compensation, government incentives and foreign derived deduction eligible income. For the six months ended June 30, 2026, the effective tax rate differed from the U.S. statutory rate of 21%, primarily due to adjustments to share-based compensation, government incentives, changes in reserves and foreign derived deduction eligible income partially offset by the impact of an unfavorable tax ruling in South Korea.
For the three and six months ended June 30, 2025, the effective tax rate differed from the U.S. statutory rate of 21%, primarily due to foreign-derived intangible income, adjustments to share-based compensation and non-taxable items, partially offset by certain pre-tax losses with no corresponding expected tax benefit.
The Internal Revenue Service (“IRS”) is currently conducting examinations of the Company’s U.S. federal income tax returns for the years 2015 through 2018 and 2019 through 2020, including matters related to the one-time transition tax enacted under the Tax Cuts and Jobs Act of 2017. If challenged, Corning believes that it is at least more likely than not to sustain its position relating to these matters. However, if the Company is ultimately unsuccessful in defending its position, the impact could be material to its consolidated financial statements.
Corning Precision Materials, a South Korean subsidiary, is currently appealing certain tax assessments and tax refund claims for tax years 2013 through 2019. The Company was required to deposit the disputed tax amounts with the South Korean government as a condition of its appeal of any tax assessment. On February 11, 2026, the Company received a final unfavorable ruling relating to a tax dispute for the tax years 2010 through 2012. As a result, the Company has reduced its receivable balance by $92 million through a noncash charge to the income tax provision in the first quarter of 2026. In addition, the Company has established an immaterial reserve against the remaining amount on deposit related to the tax year 2013. Corning continues to believe that it is more likely than not that the Company will prevail in the appeals process relating to the remaining matters. The non-current receivable balance was $134 million and $248 million as of June 30, 2026 and December 31, 2025, respectively, for the amount on deposit with the South Korean government.
Certain foreign subsidiaries in Luxembourg were subject to tax disputes for the tax years 2015 through 2018. While we maintained a more likely than not position with respect to these matters, on March 12, 2026, the Company received a final unfavorable ruling. As a result, during the first quarter of 2026, the Company reduced deferred tax assets associated with net operating loss carryforwards by $879 million and reduced the related valuation allowance by a corresponding amount. Because the reduction in deferred tax assets was offset by a corresponding reduction in the related valuation allowance, the final ruling had no impact on the Company’s income tax provision.