Corning 2007 Annual Report

1. Summary of Significant Accounting Policies (continued)
In December 2007, the FASB issued EITF Issue 07-1 “Accounting for Collaborative Arrangements” (EITF 07-1). Collaborative
arrangements are agreements between parties to participate in some type of joint operating activity. The task force provided indicators
to help identify collaborative arrangements and provides for reporting of such arrangements on a gross or net basis pursuant to
guidance in existing authoritative literature. The task force also expanded disclosure requirements about collaborative arrangements.
Conclusions within EITF 07-1 are to be applied retrospectively. Corning is required to adopt EITF 07-1 effective January 1, 2008. The
adoption of EITF 07-1 is not expected to have a material impact on Corning’s consolidated results of operations and financial
condition.
2. Restructuring, Impairment and Other Charges and (Credits)
2007 Actions
In 2007, Corning recorded net credit adjustments of $4 million for revisions to existing restructuring plans.
The following table summarizes the restructuring, impairment, and other charges and (credits) as of and for the year ended
December 31, 2007 (in millions):
Reserve at 2007
Reserve at
January 1, Revisions to Cash Dec. 31,
2007 existing plans payments 2007
Restructuring:
Employee related costs $ 40 $ (28) $ 12
Other charges (credits) 36 $ (3) (11) 22
Total restructuring charges $ 76 $ (3) $ (39) $ 34
Impairment of long-lived assets:
Assets to be held and used $ (1)
Total impairment charges $ (1)
Total restructuring, impairment and other charges and (credits) $ (4)
Cash payments for employee-related costs will be substantially completed by the end of 2008, while payments for exit activities will
be substantially completed by the end of 2010.
2006 Actions
Corning recorded net charges of $54 million in 2006. A summary of the charges and credits follows:
• We recorded a $44 million asset impairment charge in accordance with SFAS 144 for certain assets in our Telecommunications
segment.
• We recorded a charge of $5 million for severance and curtailment costs and a $6 million impairment charge related to certain
manufacturing operations of our Life Sciences segment and Specialty Materials business in the U.K.
• We recorded a $7 million charge for a revision to an existing restructuring plan for a German location in our Telecommunications
segment.
• We recorded various credits related to existing restructuring plans and for previously impaired assets.
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