CORNING INC NY

The following table presents the components of income before income taxes (in millions):

The following table presents the current and deferred amounts of the provision for income taxes (in millions):

Amounts reflected in the preceding tables are based on the location of the taxing authorities.

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The following table presents the reconciliation of the statutory U.S. federal income tax rate to the effective tax rate:

During the year ended* December 31, 2023*, the Company distributed an immaterial amount from foreign subsidiaries to their respective U.S. parent companies. As of* December 31, 2023*, Corning has approximately $1.4 billion of indefinitely reinvested foreign earnings. It remains impracticable to calculate the tax cost of repatriating unremitted earnings which are considered indefinitely reinvested.

The following table presents the tax effects of temporary differences and carryforwards that gave rise to significant portions of the deferred tax assets and liabilities (in millions):

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Net deferred tax assets on the consolidated balance sheets consisted of the following (in millions):

The following table presents details of the deferred tax assets for loss and tax credit carryforwards (in millions):

The following table presents the changes in the deferred tax valuation allowance (in millions):

The following table presents the reconciliation of the beginning and ending amount of unrecognized tax benefits (in millions):

During2020, the Internal Revenue Service (“IRS”) opened an audit for tax years2015-2018. In addition, during2023, the IRS opened an audit for tax years2019-2020. The Company doesnot expect additional material exposure for the tax years under audit. However, if upon conclusion of these matters, the ultimate determination of taxes owed is for an amount materially different than the current position, the overall tax expense and effective tax rate could be materially impacted in the period of adjustment.

The additions for tax positions of prior years were primarily due to tax audits, development of tax court cases and tax law changes in various jurisdictions.

Included in the balance as of* December 31, 2023,*2022 and2021 are $174 million, $169 million and $120 million, respectively, of unrecognized tax benefits that would impact the Company’s effective tax rate if recognized.

Interest and penalties associated with uncertain tax positions are recognized as part of tax expense. For the years ended* December 31, 2023,*2022 and2021 the amounts recognized werenot material.

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It is possible that the amount of unrecognized tax benefits will change due toone or more of the following events during the nexttwelve months: audit activity, tax payments, or final decisions in matters that are the subject of controversy in various jurisdictions. The Company believes that adequate tax reserves are provided for these matters. However, if upon conclusion of these matters, the ultimate determination of taxes owed is for an amount materially different than the current reserves, the Company’s overall tax expense and effective tax rate could be materially impacted in the period of adjustment. As of* December 31, 2023*, the Company isnot expecting any significant movements in the uncertain tax benefits in the nexttwelve months.

Corning Incorporated, as the common parent company, and all80%-or-more-owned of its U.S. subsidiaries join in the filing of consolidated U.S. federal income tax returns. The statute of limitations is closed for all periods ending through* December31,* 2013. All returns for periods ended through* December31,* 2014, have been audited by and settled with the IRS.

Corning Incorporated and its U.S. subsidiaries file income tax returns on a combined, unitary or stand-alone basis in multiple state and local jurisdictions, which generally have statutes of limitations ranging from3 to5 years. Various state income tax returns are currently in the process of examination or administrative appeal. The Company doesnot expect any material proposed adjustments from any of these audits.

Corning’s foreign subsidiaries file income tax returns in the countries where their operations are located. Generally, these countries have statutes of limitations ranging from3 to10 years. The statute of limitations is closed through the following years in these major jurisdictions: China (2014), Japan (2016), Taiwan (2018) and South Korea (2014).

Corning Precision Materials, a South Korean subsidiary, is currently appealing certain tax assessments and tax refund claims for tax years2010 through2019. 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. During2023, $99 million wasno longer under dispute and was refunded to the Company. The non-current receivable balance was $261 million and $349 million as of* December 31, 2023* and* December 31, 2022*, respectively, for the amount on deposit with the South Korean government. Corning believes that it is more likely thannot that the Company will prevail in the appeals process relating to these matters.