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9. Goodwill and Other Intangible Assets<br />
Goodwill<br />
There were no changes in the carrying amount of goodwill for the years ended December 31, <strong>2007</strong> and 2006. Balances by segment are<br />
as follows (in millions):<br />
Telecommunications Display Technologies Other (1) Total<br />
Balance at December 31, <strong>2007</strong> $118 $9 $150 $277<br />
(1) This balance relates to our Specialty Materials operating segment which is included in the All Other segment.<br />
Other Intangible Assets<br />
The carrying amount of other intangible assets follows (in millions):<br />
Gross<br />
December 31,<br />
<strong>2007</strong> 2006<br />
Accumulated<br />
Amortization Net Gross<br />
Accumulated<br />
Amortization Net<br />
Amortized intangible assets:<br />
Patents and trademarks $ 127 $ 102 $ 25 $ 147 $ 112 $ 35<br />
Non-competition agreements 109 107 2 116 116<br />
Other 5 1 4 5 1 4<br />
Total $ 241 $ 210 $ 31 $ 268 $ 229 $ 39<br />
Amortized intangible assets are primarily related to the Telecommunications segment. Amortization expense related to these<br />
intangible assets was approximately $10 million annually for the periods presented. Amortization expense is estimated to be<br />
approximately $11 million for 2008, $11 million in 2009, and insignificant thereafter.<br />
10. Other Liabilities<br />
Other accrued liabilities follow (in millions):<br />
December 31,<br />
<strong>2007</strong> 2006<br />
Current liabilities:<br />
Wages and employee benefits $ 389 $ 363<br />
Asbestos settlement 833 656<br />
Income taxes 181 125<br />
Customer deposits 222 213<br />
Other current liabilities 255 311<br />
Other accrued liabilities<br />
Non-current liabilities:<br />
$ 1,880 $ 1,668<br />
Asbestos settlement $ 169 $ 160<br />
Customer deposits 308 420<br />
Other non-current liabilities 426 440<br />
Other liabilities $ 903 $ 1,020<br />
Asbestos Settlement<br />
The current liability is expected to be settled by contribution of our investment in PCE, assigned insurance proceeds, and 25 million<br />
shares of <strong>Corning</strong> common stock, if and when the PCC Plan becomes effective. As the timing of the settlement of the obligation under<br />
this portion of the PCC liability is outside of <strong>Corning</strong>’s control, this liability is considered a “due on demand” obligation.<br />
Accordingly, this portion of the obligation has been classified as a current liability, even though it is possible that the contribution<br />
could be made in 2009 or later. The non-current liability represents the net present value of cash payments which will be contributed<br />
to the PCC Plan in six installments beginning one year after the PCC Plan is effective. Refer to Note 7 (Investments) for additional<br />
information on the asbestos settlement.<br />
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