CORNING INC /NY | 2013 | FY | 3

11.
Other Liabilities

Other accrued liabilities follow (in millions):

 
December 31,
 
2013
 
2012
Current liabilities:
         
Wages and employee benefits
$
445
 
$
460
Income taxes
 
139
   
282
Other current liabilities
 
370
   
359
Other accrued liabilities
$
954
 
$
1,101
           
Non-current liabilities:
         
Asbestos litigation
$
690
 
$
671
Other non-current liabilities
 
793
   
903
Other liabilities
$
1,483
 
$
1,574

Asbestos Litigation

The proposed resolution of PCC asbestos claims under the Amended PCC Plan would have required Corning to contribute its equity interests in PCC and Pittsburgh Corning Europe N.V. (PCE), a Belgian corporation, and to contribute a fixed series of payments, recorded at present value.  Corning would have had the option to use its shares rather than cash to make these payments, but the liability would have been fixed by dollar value and not the number of shares.  The Amended PCC Plan would, originally, have required Corning to make (1) one payment of $100 million one year from the date the Amended PCC Plan becomes effective and certain conditions are met and (2) five additional payments of $50 million, on each of the five subsequent anniversaries of the first payment, the final payment of which is subject to reduction based on the application of credits under certain circumstances.  Documents were filed with the Bankruptcy Court further modifying the Amended PCC Plan by reducing Corning’s initial payment by $30 million and reducing its second and fourth payments by $15 million each.  In return, Corning would relinquish its claim for reimbursement of its payments and contributions under the Amended PCC Plan from the insurance carriers involved in the bankruptcy proceeding with certain exceptions.

The Amended PCC Plan does not include certain non-PCC asbestos claims that may be or have been raised against Corning.  Corning has recorded in its estimated asbestos litigation liability an additional $150 million for the approximately 9,700 current non-PCC cases alleging injuries from asbestos, and for any future non-PCC cases.  The liability for non-PCC claims was estimated based upon industry data for asbestos claims since Corning does not have recent claim history due to the injunction issued by the Bankruptcy Court.  The estimated liability represents the undiscounted projection of claims and related legal fees over the next 20 years.  The amount may need to be adjusted in future periods as more data becomes available.  Refer to Note 7 (Investments) to the Consolidated Financial Statements for additional information on the asbestos litigation.

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