CORNING INC /NYGLW
CORNING INC /NY Leases Disclosure
Leases
The following table presents the components of lease cost (in millions):
| Year ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Operating lease cost | $ | 165 | $ | 170 | $ | 171 | |||||||||||
| Variable lease cost | 55 | 55 | 57 | ||||||||||||||
| Short-term lease cost | 4 | 3 | 2 | ||||||||||||||
| Finance lease cost | |||||||||||||||||
| Amortization of right-of-use assets | 45 | 34 | 35 | ||||||||||||||
| Interest on lease liabilities | 21 | 7 | 8 | ||||||||||||||
| Total lease cost | $ | 290 | $ | 269 | $ | 273 | |||||||||||
The following table presents the supplemental cash flow information for amounts included in the measurement of lease liabilities (in millions):
| December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Cash paid for amounts included in the measurement of lease liabilities | |||||||||||||||||
| Operating cash outflows from operating leases | $ | 147 | $ | 139 | $ | 153 | |||||||||||
| Operating cash outflows from interest on finance leases | $ | 8 | $ | 7 | $ | 8 | |||||||||||
| Financing cash outflows from finance leases | $ | 346 | $ | 30 | $ | 36 | |||||||||||
| Right-of-use assets obtained in exchange for lease liabilities | |||||||||||||||||
| Operating leases | $ | 140 | $ | 11 | $ | 156 | |||||||||||
| Finance leases | $ | 1,389 | $ | 21 | $ | 30 | |||||||||||
The following table presents the weighted-average remaining lease term and weighted-average discount rate:
| December 31, | ||||||||||||||
| 2025 | 2024 | |||||||||||||
| Weighted-average remaining lease term (in years) | ||||||||||||||
| Operating leases | 12.6 | 13.2 | ||||||||||||
| Finance leases | 6.1 | 11.6 | ||||||||||||
| Weighted-average discount rate | ||||||||||||||
| Operating leases | 4.5 | % | 4.5 | % | ||||||||||
| Finance leases | 5.9 | % | 4.5 | % | ||||||||||
The following table presents supplemental consolidated balance sheet information (in millions):
| December 31, | ||||||||||||||
| 2025 | 2024 | |||||||||||||
| Operating leases | ||||||||||||||
| $ | 860 | $ | 796 | |||||||||||
| $ | 97 | $ | 95 | |||||||||||
| $ | 846 | $ | 785 | |||||||||||
| Total operating lease liabilities | $ | 943 | $ | 880 | ||||||||||
| Finance leases | ||||||||||||||
Property, plant and equipment (1) | $ | 1,279 | $ | 265 | ||||||||||
| Accumulated depreciation | $ | (147) | $ | (118) | ||||||||||
| $ | 1,132 | $ | 147 | |||||||||||
| $ | 84 | $ | 30 | |||||||||||
| $ | 1,148 | $ | 144 | |||||||||||
Total finance lease liabilities (1) | $ | 1,232 | $ | 174 | ||||||||||
(1)During the year ended December 31, 2025, the Company recognized $1.4 billion in right-of-use assets and lease liabilities primarily associated with recently commenced leases, as discussed below. In addition, the Company recognized $318 million in 48D credits, which reduced the right-of-use asset, and repaid $346 million in principal payments, primarily driven by a $315 million payment made in December 2025 on the Facility Lease as discussed below, which reduced the lease liability.
As of December 31, 2025, future minimum lease payments are as follows (in millions) (1):
| Operating Leases | Finance Leases | |||||||
| 2026 | $ | 129 | $ | 126 | ||||
| 2027 | $ | 115 | $ | 213 | ||||
| 2028 | $ | 102 | $ | 176 | ||||
| 2029 | $ | 99 | $ | 168 | ||||
| 2030 | $ | 91 | $ | 166 | ||||
| After 2030 | $ | 711 | $ | 718 | ||||
| Total payments | $ | 1,247 | $ | 1,567 | ||||
| Less: imputed discount | $ | 304 | $ | 335 | ||||
| Present value of lease payments | $ | 943 | $ | 1,232 | ||||
(1)Amounts exclude estimated lease payments for various leases commencing in future periods, as described below.
Recently commenced leases
Facility Lease - On March 12, 2024, the Company entered into a lease (“Facility Lease”) for a solar manufacturing facility in Hemlock, Michigan and fully commenced this lease during the fourth quarter of 2025. The Company recognized $797 million of right-of-use assets and lease liabilities. Related to these assets, the Company recognized $189 million in 48D credits, which reduced the carrying value of these right-of-use assets.
The Facility Lease was classified as a finance lease, with a lease term of approximately five years and a residual value guarantee at the end of the lease term. During the fourth quarter of 2025, the Company amended the payment terms of the Facility Lease, resulting in the principal payment of $315 million in December 2025. The remaining lease payments over the lease term are interest-only with the residual value guarantee of approximately $495 million at the end of the lease term.
Equipment Leases - During 2025, the Company commenced and recognized $541 million of right-of use assets and lease liabilities under various leases for equipment placed in service within the solar manufacturing facility in Hemlock, Michigan. These leases were classified as finance leases, with lease terms ranging from to eight years. Related to these assets, the Company recognized $129 million in 48D credits, which reduced the carrying value of these right-of-use assets.
Leases not yet commenced
The Company has entered into various leases that have not yet commenced in an aggregate amount of approximately $527 million, on an undiscounted basis, primarily for production-related equipment associated with the solar manufacturing facility in Hemlock, Michigan. The leases are expected to commence in 2026 with lease terms ranging from to 16 years. The leases are expected to be classified as finance leases and the amount of right-of-use assets and lease liabilities will be determined and recorded upon lease commencement. Once placed in service, the Company will reduce the amount of right-of-use assets by any 48D credits, which is estimated to be approximately $126 million.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 12, 2026 | Showing above |
| 2024 | Feb 13, 2025 | |
| 2023 | Feb 12, 2024 | |
| 2021 | Feb 14, 2022 | |
| 2020 | Feb 12, 2021 | |
| 2019 | Feb 18, 2020 | |
About Leases Disclosures
Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.
Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.