-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, TjVTCTQUWT/GbUI90aPNV+qRjvsvwgbA2aaeXY6eMcwpPelhhrAxeF6kCPTjEtzm nN2iXlrQNa/bgFpD7WUMug== 0000024741-00-000030.txt : 20000421 0000024741-00-000030.hdr.sgml : 20000421 ACCESSION NUMBER: 0000024741-00-000030 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19991231 ITEM INFORMATION: FILED AS OF DATE: 20000420 FILER: COMPANY DATA: COMPANY CONFORMED NAME: CORNING INC /NY CENTRAL INDEX KEY: 0000024741 STANDARD INDUSTRIAL CLASSIFICATION: TELEPHONE & TELEGRAPH APPARATUS [3661] IRS NUMBER: 160393470 STATE OF INCORPORATION: NY FISCAL YEAR END: 1228 FILING VALUES: FORM TYPE: 8-K SEC ACT: SEC FILE NUMBER: 001-03247 FILM NUMBER: 605755 BUSINESS ADDRESS: STREET 1: ONE RIVERFRONT PLAZA CITY: CORNING STATE: NY ZIP: 14831 BUSINESS PHONE: 6079749000 FORMER COMPANY: FORMER CONFORMED NAME: CORNING INC /NY / CORNING LAB SERVICES INC DATE OF NAME CHANGE: 19930713 FORMER COMPANY: FORMER CONFORMED NAME: CORNING GLASS WORKS DATE OF NAME CHANGE: 19890512 8-K 1 CORNING 8-K FILING FOR SUPPLEMENTAL DATA 1998-1995 SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of Report: (Date of earliest event reported) April 20, 2000 CORNING INCORPORATED (Exact name of registrant as specified in its charter) New York 1-3247 16-0393470 (State or other jurisdiction (Commission (I.R.S. Employer of incorporation) File Number) Identification No.) One Riverfront Plaza, Corning, New York 14831 (Address of principal executive offices) (Zip Code) (607) 974-9000 (Registrant's telephone number, including area code) N/A (Former name or former address, if changed since last report) Item 5. Current Events Effective with Corning's first quarter press release in 2000, Corning will transition to a new performance metric that will be its primary measure of performance. Corning will report pro forma earnings, which will exclude amortization of purchased intangibles and goodwill, purchased in-process research and development, acquisition-related costs, discontinued operations and any non-recurring items. This also represents the manner in which segment net income amounts are evaluated regularly by executive management in deciding how to allocate resources and in assessing performance. Corning believes comparing its operating results excluding these items, provides a better understanding of the trends in operating results. Corning's pro forma earnings is not a measure that is in accordance with generally accepted accounting principles (GAAP) and may not be consistent with measures used by other companies. It should not be considered superior to or used as a substitute for GAAP measures. Filed herewith is the following financial information: (1) Historical statements of income for the years ended December 31, 1998, 1997, 1996 and 1995. (2) Pro forma statements of income for the years ended December 31, 1998, 1997, 1996 and 1995. (3) Historical statements of income for the quarters ended March 31, 1999, June 30, 1999, September 30, 1999 and December 31, 1999. (4) Pro forma statements of income for the quarters ended March 31, 1999, June 30, 1999, September 30, 1999 and December 31, 1999. (5) Segment information for the quarters ended March 31, 1999, June 30, 1999, September 30, 1999 and December 31, 1999, and the year ended December 31, 1998, restated to conform to future presentations. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. CORNING INCORPORATED Registrant Date: April 20, 2000 By /s/ KATHERINE A. ASBECK Katherine A. Asbeck Vice President and Controller Corning Incorporated and Subsidiary Companies Consolidated Statements of Income (In millions, except per share amounts)
Year Ended December 31, ------------------------------------------ 1998 1997 1996 1995 ---- ---- ---- ---- Revenues Net sales $3,831.9 $3,831.2 $3,327.5 $2,900.1 Royalty, interest and dividend income 50.0 38.9 30.2 28.4 Non-operating gains 39.7 21.5 -------- -------- -------- -------- 3,921.6 3,870.1 3,379.2 2,928.5 -------- -------- -------- -------- Deductions Cost of sales 2,360.5 2,224.3 2,006.0 1,750.9 Selling, general and administrative expenses 542.8 593.4 548.1 444.2 Research, development and engineering expenses 307.4 262.9 200.1 177.3 Provision for impairment and restructuring 84.6 5.9 26.5 Amortization of purchased intangibles including goodwill 22.2 21.8 16.3 15.0 Interest expense 66.8 83.0 62.9 62.9 Non-recurring charges 80.9 Other, net 55.0 18.9 22.0 13.9 -------- -------- -------- -------- Income from continuing operations before taxes on income 482.3 665.8 517.9 356.9 Taxes on income from continuing operations 149.5 223.3 174.2 118.5 -------- -------- -------- -------- Income from continuing operations before minority interest and equity earnings 332.8 442.5 343.7 238.4 Minority interest in earnings of subsidiaries (61.6) (77.4) (59.8) (75.2) Dividends on convertible preferred securities of subsidiary (13.7) (13.7) (13.7) (13.7) Equity in earnings of associated companies 97.3 79.2 85.0 (279.8) -------- -------- -------- -------- Income from continuing operations 354.8 430.6 355.2 (130.3) Income from discontinued operations, net of income taxes 66.5 30.9 (137.8) 27.4 -------- -------- -------- -------- Net Income $ 421.3 $ 461.5 $ 217.4 $ (102.9) ======== ======== ======== ======== Basic Earnings Per Share Continuing operations $ 1.45 $ 1.77 $ 1.46 $ (0.55) Discontinued operations 0.27 0.12 (0.57) 0.11 -------- -------- -------- -------- Net Income $ 1.72 $ 1.89 $ 0.89 $ (0.44) ======== ======== ======== ======== Diluted Earnings Per Share Continuing operations $ 1.42 $ 1.71 $ 1.44 $ (0.55) Discontinued operations 0.25 0.11 (0.54) 0.11 -------- -------- -------- -------- Net Income $ 1.67 $ 1.82 $ 0.90 $ (0.44) ======== ======== ======== ======== Shares Used In Computing Earnings Per Share Basic earnings per share 244.4 242.9 242.0 241.1 Diluted earnings per share 259.2 260.4 255.0 241.1
Corning Incorporated and Subsidiary Companies Pro Forma Consolidated Statements of Income Excluding Amortization of Purchased Intangibles and Goodwill, Purchased In- Process Research and Development, Acquisition-Related Costs and Non-Recurring Items 1998 - 1995 (In millions, except per share amounts)
1998 1997 1996 1995 ---- ---- ---- ---- Revenues Net sales $3,831.9 $3,831.2 $3,327.5 $2,900.1 Royalty, interest and dividend income 50.0 38.9 30.2 28.4 -------- -------- -------- -------- 3,881.9 3,870.1 3,357.7 2,928.5 Deductions Cost of sales 2,360.5 2,224.3 2,006.0 1,750.9 Selling, general and administrative expenses 542.8 593.4 548.1 444.2 Research, development and engineering expenses 307.4 262.9 200.1 177.3 Interest expense 66.8 83.0 62.9 62.9 Other, net 55.0 18.9 22.0 13.9 -------- -------- -------- -------- Income before taxes 549.4 687.6 518.6 479.3 Taxes on income 169.3 228.0 171.8 132.1 -------- -------- -------- -------- Income before minority interest and equity earnings 380.1 459.6 346.8 347.2 Minority interest in earnings of subsidiaries (65.2) (77.4) (59.8) (75.2) Dividends on convertible preferred securities of subsidiary (13.7) (13.7) (13.7) (13.7) Equity in earnings of associated companies 97.3 79.2 85.0 85.7 -------- -------- -------- -------- Pro Forma Net Income $ 398.5 $ 447.7 $ 358.3 $ 344.0 ======== ======== ======== ======== Pro Forma Diluted Earnings Per Share $ 1.59 $ 1.78 $ 1.45 $ 1.42 ======== ======== ======== ======== Shares Used In Computing Earnings Per Share Diluted earnings per share 259.2 260.4 255.0 241.1
1998 The pro forma amounts for the year ended December 31, 1998 have been adjusted to eliminate the $22.2 million ($17.4 million after tax) or $0.07 per share of amortization of purchased intangibles and goodwill, $39.7 million ($22.9 million after minority interest and tax) or $0.09 per share for a non-operating gain, $84.6 million ($49.2 million after minority interest and taxes) or $0.19 per share for a restructuring charge and $66.5 million after tax, or $0.25 per share of income from discontinued operations. 1997 The pro forma amounts for the year ended December 31, 1997 have been adjusted to eliminate the $21.8 million ($17.1 million after tax) or $0.07 per share of amortization of purchased intangibles and goodwill and $30.9 million after tax, or $0.11 per share of income from discontinued operations. 1996 The pro forma amounts for the year ended December 31, 1996, have been adjusted to eliminate the $16.3 million ($12.8 million after tax), or $0.05 per share of amortization of purchased intangibles and goodwill, $1.5 million ($0.9 million after tax), or $0.00 per share for early extinguishment of Oak Industries debt, $5.9 million ($3.6 million after tax) or $0.01 per share for Oak restructuring charge, $1.0 million ($0.6 million after tax), or $0.00 per share for a non- operating gain, $20.5 million ($12.7 million after tax), or $0.05 per share and $136.9 million after tax, or $0.54 per share for loss from discontinued operations. 1995 The pro forma amounts for the year ended December 31, 1995, have been adjusted to eliminate the $15.0 million ($11.8 million after tax), or $0.05 per share of amortization of purchased intangibles and goodwill, $3.1 million ($1.6 million after tax), or $0.00 per share for early extinguishment of Oak Industries debt, $26.5 million ($16.1 million after tax), or $0.07 per share for a restructuring charge, $80.9 million after tax, or $0.33 per share for an in-process research and development charge for Oak Industries, $365.5 million after tax or $1.52 per share for the impairment of the equity investment in Dow Corning and $29 million after tax, or $0.11 per share for income from discontinued operations. Corning Incorporated and Subsidiary Companies Consolidated Statements of Income (In millions, except per share amounts)
1999 ----------------------------------------------- Q1 Q2 Q3 Q4 Total ---- ---- ---- ---- ----- Revenues Net sales $ 997.0 $1,129.7 $1,245.3 $1,369.1 $4,741.1 Royalty, interest and dividend income 10.0 11.3 8.7 11.4 41.4 Non-operating gains 30.0 30.0 ------- -------- -------- -------- -------- 1,007.0 1,141.0 1,284.0 1,380.5 4,812.5 Deductions Cost of sales 613.9 693.3 767.0 856.1 2,930.3 Selling, general and administrative expenses 152.2 151.2 172.0 192.0 667.4 Research, development and engineering expenses 83.4 88.5 100.2 106.1 378.2 Provision for impairment and restructuring 15.5 (14.1) 1.4 Amortization of purchased intangibles including goodwill 6.9 7.0 7.3 6.6 27.8 Interest expense 19.7 20.4 26.0 27.1 93.2 Other, net 9.9 10.7 11.9 6.8 39.3 ------- -------- -------- -------- -------- Income from continuing operations before taxes on income 121.0 169.9 184.1 199.9 674.9 Taxes on income from continuing operations 37.3 52.3 55.7 61.8 207.1 ------- -------- -------- -------- -------- Income from continuing operations before minority interest and equity earnings 83.7 117.6 128.4 138.1 467.8 Minority interest in earnings of subsidiaries (10.1) (17.4) (18.6) (20.7) (66.8) Dividends on convertible preferred securities of subsidiary (2.3) (2.3) Equity in earnings of associated companies 21.2 30.8 32.1 28.2 112.3 ------- -------- -------- -------- -------- Income from continuing operations 92.5 131.0 141.9 145.6 511.0 Income from discontinued operations, net of income taxes 4.8 4.8 ------- -------- -------- -------- -------- Net Income $ 92.5 $ 131.0 $ 141.9 $ 150.4 $ 515.8 ======= ======== ======== ======== ======== Diluted Earnings Per Share Continuing operations $ 0.36 $ 0.50 $ 0.54 $ 0.55 $ 1.95 Discontinued operations 0.02 0.02 ------- -------- -------- -------- -------- Net Income $ 0.36 $ 0.50 $ 0.54 $ 0.57 $ 1.97 ======= ======== ======== ======== ======== Shares Used In Computing Earnings Per Share Diluted earnings per share 260.4 265.3 265.7 266.6 265.1
Corning Incorporated and Subsidiary Companies Pro Forma Consolidated Statements of Income Excluding Amortization of Purchased Intangibles and Goodwill, Purchased In- Process Research and Development, Acquisition-Related Costs and Non-Recurring Items (In millions, except per share amounts)
1999 ----------------------------------------------- Q1 Q2 Q3 Q4 Total ---- ---- ---- ---- ----- Revenues Net sales $ 997.0 $1,129.7 $1,245.3 $1,369.1 $4,741.1 Royalty, interest and dividend income 10.0 11.3 8.7 11.4 41.4 ------- -------- -------- -------- -------- 1,007.0 1,141.0 1,254.0 1,380.5 4,782.5 Deductions Cost of sales 613.9 693.3 767.0 856.1 2,930.3 Selling, general and administrative expenses 152.2 151.2 172.0 192.0 667.4 Research, development and engineering expenses 83.4 88.5 100.2 106.1 378.2 Interest expense 19.7 20.4 26.0 27.1 93.2 Other, net 9.9 10.7 11.9 6.8 39.3 ------- -------- -------- -------- -------- Income before taxes on income 127.9 176.9 176.9 192.4 674.1 Taxes on income 38.8 53.8 51.8 57.7 202.1 ------- -------- -------- -------- -------- Income before minority interest and equity earnings 89.1 123.1 125.1 134.7 472.0 Minority interest in earnings of subsidiaries (10.1) (17.4) (9.1) (20.7) (57.3) Dividends on convertible preferred securities of subsidiary (2.3) (2.3) Equity in earnings of associated companies 21.2 30.8 32.1 28.2 112.3 ------- -------- -------- -------- -------- Pro Forma Net Income $ 97.9 $ 136.5 $ 148.1 $ 142.2 $ 524.7 ======= ======== ======== ======== ======== Pro Forma Diluted Earnings Per Share $ 0.38 $ 0.52 $ 0.56 $ 0.54 $ 2.00 ======= ======== ======== ======== ======== Shares Used In Computing Earnings Per Share Diluted earnings per share 260.4 265.3 265.7 266.6 265.1
The above pro forma amounts for the quarter ended March 31, 1999 have been adjusted to eliminate the $6.9 million ($5.4 million after tax) or $0.02 per share of amortization of purchased intangibles and goodwill. The above pro forma amounts for the quarter ended June 30, 1999 have been adjusted to eliminate the $7.0 million ($5.5 million after tax) or $0.02 per share of amortization of purchased intangibles and goodwill. The above pro forma amounts for the quarter ended September 30, 1999 have been adjusted to eliminate the $7.3 million ($5.7 million after tax) or $0.02 per share of amortization of purchased intangibles and goodwill, an impairment charge of $15.5 million ($10 million after tax) or $0.04 per share and a non- operating gain of $30.0 million ($9.5 million after tax and minority interest) or $0.04 per share. The above pro forma amounts for the quarter ended December 31, 1999 have been adjusted to eliminate the $6.6 million ($5.2 million after tax) or $0.02 per share of amortization of purchased intangibles and goodwill, the release of restructuring reserves totaling $14.1 million ($8.6 million after tax) or $0.03 per share and income from discontinued operations of $7.8 million ($4.8 million after tax) or $0.02 per share. Corning Incorporated and Subsidiary Companies Quarterly Information by Operating Segment (In millions)
1999 1998 ---------------------------------------------- ------ Q1 Q2 Q3 Q4 Total ---- ---- ---- ---- ----- Telecommunications Net sales $593.3 $ 692.5 $ 803.4 $ 869.0 $2,958.2 $2,139.6 Research, development and engineering expenses $ 56.1 $ 59.6 $ 71.3 $ 73.8 $ 260.8 $ 203.7 Interest expense $ 12.4 $ 12.8 $ 17.3 $ 16.3 $ 58.8 $ 39.8 Segment earnings before minority interest and equity earnings $ 60.4 $ 81.4 $ 89.7 $ 98.9 $ 330.4 $ 265.3 Minority interest in earnings of subsidiaries (4.3) (8.7) (7.4) (14.2) (34.6) (38.0) Equity in earnings of associated companies 4.0 2.6 4.9 3.4 14.9 22.7 ------ -------- -------- -------- -------- -------- Segment net income $ 60.1 $ 75.3 $ 87.2 $ 88.1 $ 310.7 $ 250.0 ====== ======== ======== ======== ======== ======== Advanced Materials Net sales $252.1 $ 264.7 $ 257.7 $ 279.4 $1,053.9 $1,020.1 Research, development and engineering expenses $ 21.9 $ 23.2 $ 23.7 $ 25.7 $ 94.5 $ 80.0 Interest expense $ 4.3 $ 4.9 $ 6.0 $ 7.5 $ 22.7 $ 16.7 Segment earnings before minority interest and equity earnings $ 20.0 $ 28.0 $ 23.6 $ 19.3 $ 90.9 $ 75.9 Minority interest in earnings of subsidiaries 0.1 (0.1) 0.3 Equity in earnings of associated companies 4.1 3.5 6.1 8.0 21.7 17.6 ------ -------- -------- -------- -------- -------- Segment net income $ 24.2 $ 31.5 $ 29.6 $ 27.3 $ 112.6 $ 93.8 ====== ======== ======== ======== ======== ======== Information Display Net sales $145.7 $ 166.0 $ 178.7 $ 210.8 $ 701.2 $ 644.7 Research, development and engineering expenses $ 5.4 $ 5.7 $ 5.3 $ 6.5 $ 22.9 $ 23.7 Interest expense $ 2.6 $ 2.7 $ 2.7 $ 3.2 $ 11.2 $ 10.0 Segment earnings before minority interest and equity earnings $ 9.4 $ 17.8 $ 12.9 $ 17.5 $ 57.6 $ 39.2 Minority interest in earnings of subsidiaries (5.9) (8.8) (1.5) (6.5) (22.7) (27.6) Equity in earnings of associated companies 12.4 22.2 18.3 14.9 67.8 44.9 ------ -------- -------- -------- -------- -------- Segment net income $ 15.9 $ 31.2 $ 29.7 $ 25.9 $ 102.7 $ 56.5 ====== ======== ======== ======== ======== ======== Total Segments Net sales $991.1 $1,123.2 $1,239.8 $1,359.2 $4,713.3 $3,804.4 Research, development and engineering expenses $ 83.4 $ 88.5 $ 100.3 $ 106.0 $ 378.2 $ 307.4 Interest expense $ 19.3 $ 20.4 $ 26.0 $ 27.0 $ 92.7 $ 66.5 Segment earnings before minority interest and equity earnings $ 89.8 $ 127.2 $ 126.2 $ 135.7 $ 478.9 $ 380.4 Minority interest in earnings of subsidiaries (10.1) (17.5) (9.0) (20.7) (57.3) (65.3) Equity in earnings of associated companies 20.5 28.3 29.3 26.3 104.4 85.2 ------ -------- -------- -------- -------- -------- Segment net income $100.2 $ 138.0 $ 146.5 $ 141.3 $ 526.0 $ 400.3 ====== ======== ======== ======== ======== ========
A reconciliation of the totals reported for the operating segment to the applicable line items in the consolidated financial statements is as follows:
1999 1998 ----------------------------------------------- ------ Q1 Q2 Q3 Q4 Total ---- ---- ---- ---- ----- Revenues Total segment net sales $ 991.1 $1,123.2 $1,239.8 $1,359.2 $4,713.3 $3,804.4 Non-segment net sales 5.9 6.5 5.5 9.9 27.8 27.5 Royalty, interest and dividend income 10.0 11.3 8.7 11.4 41.4 50.0 Non-operating gain 30.0 30.0 39.7 -------- -------- -------- -------- -------- -------- Total Revenues $1,007.0 $1,141.0 $1,284.0 $1,380.5 $4,812.5 $3,921.6 ======== ======== ======== ======== ======== ======== Net income Total segment income 100.2 138.0 146.5 141.3 526.0 400.3 Unallocated items: Non-segment loss and other (0.6) (5.8) (1.3) (2.1) (9.8) (0.2) Non-operating gain 30.0 30.0 39.7 Non-recurring charges (15.5) 14.1 (1.4) (84.6) Amortization of purchased intangibles including goodwill (1) (6.9) (7.0) (7.3) (6.6) (27.8) (22.2) Interest expense (0.4) (0.1) (0.5) (0.3) Income tax 1.8 3.3 (3.9) (2.8) (1.6) 20.0 Equity in earnings of associated companies 0.7 2.5 2.9 1.8 7.9 12.1 Minority interest in non-operating gain (9.5) (9.5) 3.7 Dividends on convertible preferred securities of subsidiary (2.3) (2.3) (13.7) -------- -------- -------- -------- -------- -------- Net income from continuing operations $ 92.5 $ 131.0 $ 141.9 $ 145.6 $ 511.0 $ 354.8 ======== ======== ======== ======== ======== ========
(1) Amortization of purchased intangibles relates primarily to the Telecommunications segment. -----END PRIVACY-ENHANCED MESSAGE-----