-----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, JVfcBLsarNYYnO4OlDkF5Dn4hl2/Ixb12wTW7DAbneNUDup/Ew1elKvsLCbVwjIq CFLdKlnC9r2TVHXF4Jz+nQ== 0000912057-01-522190.txt : 20010702 0000912057-01-522190.hdr.sgml : 20010702 ACCESSION NUMBER: 0000912057-01-522190 CONFORMED SUBMISSION TYPE: 11-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20001231 FILED AS OF DATE: 20010629 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: 11-K SEC ACT: SEC FILE NUMBER: 001-03247 FILM NUMBER: 1672636 BUSINESS ADDRESS: STREET 1: ONE RIVERFRONT PLAZA CITY: CORNING STATE: NY ZIP: 14831 BUSINESS PHONE: 6079749000 MAIL ADDRESS: STREET 1: ONE RIVERFRONT PLAZA CITY: CORNING STATE: NY ZIP: 14831 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 11-K 1 a2052997z11-k.txt FORM 11-K SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D. C. 20549 FORM 11-K [X] ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 [ ] TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ___ to ___ For fiscal year ended December 31, 2000 Commission File number 1-3247 A. Full title of the plan and the address of the plan, if different from that of the issuer named below THE CORNING INCORPORATED INVESTMENT PLAN FOR UNIONIZED EMPLOYEES B. Name of issuer of the securities held pursuant to the plan and the address of its principal executive office CORNING INCORPORATED ONE RIVERFRONT PLAZA CORNING, NY 14831 Documents filed as part of this report: (a) Index to financial statements filed as part of this report: The Statement of Net Assets Available for Benefits as at December 31, 2000 and 1999, the Statement of Changes in Net Assets Available for Benefits for the year ended December 31, 2000 and supplementary information, together with the report thereon of PricewaterhouseCoopers LLP dated April 20, 2001, except Note 9 as to which the date is June 8, 2001. The required financial statement schedules, if any, are included in the supplementary information referred to above and should be read in conjunction with the above financial statements. (b) Exhibits - The consent of PricewaterhouseCoopers LLP is attached hereto as Exhibit 23. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Unionized Hourly Employee Investment Plan Committee has duly caused this annual report to be signed by the undersigned thereunto duly authorized. THE CORNING INCORPORATED INVESTMENT PLAN FOR UNIONIZED EMPLOYEES By: /s/ Lindsay W. Brown ------------------------- Lindsay W. Brown Member Unionized Hourly Employee Investment Plan Committee Date: June 27, 2001 THE CORNING INCORPORATED INVESTMENT PLAN FOR UNIONIZED EMPLOYEES FINANCIAL STATEMENTS DECEMBER 31, 2000 AND 1999 [LETTERHEAD OF PRICEWATERHOUSECOOPERS] REPORT OF INDEPENDENT ACCOUNTANTS To the Corning Incorporated Investment Plan Committee and the Participants in The Corning Incorporated Investment Plan for Unionized Employees In our opinion, the accompanying statements of net assets available for benefits and the related statement of changes in net assets available for benefits present fairly, in all material respects, the net assets available for benefits of The Corning Incorporated Investment Plan for Unionized Employees (the "Plan") at December 31, 2000 and 1999, and the changes in net assets available for benefits for the year ended December 31, 2000, in conformity with accounting principles generally accepted in the United States of America. These financial statements are the responsibility of the plan's management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these statements in accordance with auditing standards generally accepted in the United States of America, which require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. /s/ PricewaterhouseCoopers LLP April 20, 2001, except Note 9 as to which the date is June 8, 2001 THE CORNING INCORPORATED INVESTMENT PLAN FOR UNIONIZED EMPLOYEES STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS DECEMBER 31, 2000 AND 1999 (DOLLAR AMOUNTS IN THOUSANDS) - --------------------------------------------------------------------------------
2000 1999 Assets: Investment in Corning Incorporated Master Investment Trust (Note 1) $ 498,708 $ 459,659 ---------- ---------- NET ASSETS AVAILABLE FOR BENEFITS $ 498,708 $ 459,659 ========= =========
The accompanying notes are an integral part of these financial statements. 2 THE CORNING INCORPORATED INVESTMENT PLAN FOR UNIONIZED EMPLOYEES STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS DECEMBER 31, 2000 (DOLLAR AMOUNTS IN THOUSANDS) - --------------------------------------------------------------------------------
Allocated portion of increase in net assets from investment activities in the Corning Incorporated Master Investment Trust (Note 1) $ 104,620 --------- Contributions: Employer contributions - cash 7,468 Participant contributions 13,020 --------- Total contributions 20,488 --------- Distributions to participants (77,516) --------- Net transfer to other qualified plans (8,543) --------- Increase in net assets during the year (65,571) Net assets available for benefits: Beginning of year 459,659 --------- End of Year $ 394,088 =========
The accompanying notes are an integral part of these financial statements. 3 THE CORNING INCORPORATED INVESTMENT PLAN FOR UNIONIZED EMPLOYEES NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2000 AND 1999 (DOLLAR AMOUNTS IN THOUSANDS EXCEPT PER SHARE DATA) - -------------------------------------------------------------------------------- 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The financial statements of the Corning Incorporated Investment Plan for Unionized Employees (the Plan) have been prepared on the accrual basis of accounting. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The accounting principles and practices which affect the significant elements of the financial statements are: BASIS OF ALLOCATION FROM THE CORNING INCORPORATED MASTER INVESTMENT TRUST The Plan has a specific interest in the Corning Incorporated Master Investment Trust (the Master Trust) in which another plan sponsored by Corning Incorporated (the Company) also participates. The Plan's specific interest in the Master Trust is credited or charged for contributions, transfers and benefit payments relating to its participants. Realized gains and losses and changes in net unrealized appreciation or depreciation on investments, income from investments and expenses are allocated to the Plan based on the Plan's specific interest in the net assets of the Master Trust. MASTER TRUST INVESTMENT VALUATION Master Trust investments are valued at market value with the exception of investment contracts and Corning Incorporated preferred stock. Investment contracts are valued at contract value, representing contributions made plus interest at the contract rate, less funds withdrawn and administrative expenses. There are no reserves against contract values for credit risk of the contract issuer or otherwise. At December 31, 2000, the average crediting interest rate was approximately 7.0 percent. Corning Incorporated preferred stock is valued at 14.37 times the market value of Corning Common Stock (Note 3). Market values for the common stock fund, mutual funds, preferred stock fund and the equity fund are based on market quotations. Participant loans receivable are valued at cost which approximates fair value. 2. DESCRIPTION OF PLAN GENERAL The following brief description of the Plan sponsored by the Company is provided for general information purposes only. Participants should refer to the Plan document for more complete information. 4 THE CORNING INCORPORATED INVESTMENT PLAN FOR UNIONIZED EMPLOYEES NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2000 AND 1999 (DOLLAR AMOUNTS IN THOUSANDS EXCEPT PER SHARE DATA) - -------------------------------------------------------------------------------- 2. DESCRIPTION OF PLAN (CONTINUED) GENERAL (CONTINUED) The Plan is a defined contribution profit-sharing-thrift-savings plan established in January 1984. The Plan is administered by The Corning Incorporated Investment Plan Committee (the Committee), appointed by the Board of Directors of the Company. The Plan is subject to the provisions of the Employee Retirement Income Security Act of 1974. The Chase Manhattan Bank, N.A. is the trustee for all Plan assets. COVERAGE The Plan covers all union employees of participating unions which contract with the Company. At December 31, 2000, the unions at the following locations participated in the Plan: Blacksburg, Virginia Greenville, Ohio Canton, New York Harrodsburg, Kentucky Corning, New York Oneonta, New York Danville, Virginia State College, Pennsylvania Erwin, New York Wilmington, North Carolina
CONTRIBUTIONS Participants, other than highly-compensated participants, may contribute up to 15% of their base salary on a before tax basis, after tax basis or any combination of the two, to the Plan. Highly compensated participants are limited to contribute 1% to 9% of their base salary before tax, and 1% to 6% of their base salary after tax, not to exceed 15% in total. The maximum amount a participant can contribute to the Plan on a before tax basis is $10,500 per year as adjusted by the Internal Revenue Service for cost of living increases. The Company makes matching contributions, out of profits (as defined in the Plan), as a percentage of a participant's first 5% of contributions based on years of service as follows: o less than 20 years of service 50% o 20 but less than 25 years of service 75% o 25 or more years of service 100% All matching Company contributions are invested in the Corning Incorporated Common Stock Fund. At December 31, 2000 and 1999, the Corning Incorporated Common Stock Fund contains net assets of $238,317 and $224,504, respectively, that are non-participant directed as a result of the accumulation of matching contributions made by the Company and the related earnings on those contributions. Benefit payments from this non-participant directed fund amounted to $33,895 in 2000. 5 THE CORNING INCORPORATED INVESTMENT PLAN FOR UNIONIZED EMPLOYEES NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2000 AND 1999 (DOLLAR AMOUNTS IN THOUSANDS EXCEPT PER SHARE DATA) - -------------------------------------------------------------------------------- 2. DESCRIPTION OF PLAN (CONTINUED) CONTRIBUTIONS (CONTINUED) Participants may also elect to have their contributions invested in the Corning Incorporated Common Stock Fund on a before or after tax basis. The Company will make a matching contribution for the account of each participant in an amount equal to 15% of such participant's contributions to the Corning Incorporated Common Stock Fund. With respect to all employees eligible to participate in the Plan, beginning in January of the year the participant is expected to reach 10 years of vesting service and irrespective of whether such employee has elected to contribute to the Plan, the Company contributes weekly or monthly (based on employee's pay frequency) a supplemental contribution to the Corning Incorporated Common Stock Fund an amount equal to 1.175% of such employee's compensation. VESTING OF COMPANY CONTRIBUTIONS The Company's contributions to the Corning Incorporated Common Stock Fund are fully vested after five years. All contributions become fully vested upon total and permanent disability, death, retirement or termination of the Plan. The Company's supplemental contributions to the Corning Incorporated Common Stock Fund are nonforfeitable. FUND TRANSFERS Participants are allowed to transfer their accumulated contributions between funds. There are certain restrictions, however, on transfers involving the Corning Incorporated Common Stock Fund. First, only participants age 55 or over are allowed to transfer employer contributions in the Corning Incorporated Common Stock Fund into any of the other investment funds. Second, employee contributions into the Corning Incorporated Common Stock Fund are available for transfer after the funds have been in the Plan for five years. The earnings on employee contributions to the Corning Incorporated Common Stock Fund are unrestricted and eligible for transfer at any time. No transfers may be made into the Corning Incorporated Preferred Stock Fund. Transfers from the Corning Incorporated Preferred Stock Fund can only be made to the Corning Incorporated Common Stock Fund. INVESTMENT OPTIONS Participants who contribute to the Plan may elect to have their contributions invested in any combination of the following funds on a before or after tax basis: o Stable Value Fund o Vanguard Institutional Index Fund o Pelican Fund o W.P. Stewart Fund o Vanguard Balanced Index Fund o Vanguard International Growth Fund 6 THE CORNING INCORPORATED INVESTMENT PLAN FOR UNIONIZED EMPLOYEES NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2000 AND 1999 (DOLLAR AMOUNTS IN THOUSANDS EXCEPT PER SHARE DATA) - -------------------------------------------------------------------------------- 2. DESCRIPTION OF PLAN (CONTINUED) INVESTMENT OPTIONS (CONTINUED) o Fidelity Contrafund o Putnam New Opportunities Fund o Vanguard Small-Cap Index Fund o Vanguard Total Bond Market Index Fund o Corning Incorporated Common Stock Fund STABLE VALUE FUND The Stable Value Fund is invested in a diversified portfolio of fixed income investments. These investments include Guaranteed Investment Contracts issued and guaranteed by insurance companies and U.S. Government agency investments. The Stable Value Fund seeks to provide a stable rate of return with safety of principal and liquidity as primary objectives. VANGUARD INSTITUTIONAL INDEX FUND The Vanguard Institutional Index Fund seeks to mirror the performance of the overall stock market by investing in large-company stocks. PELICAN FUND The Pelican Fund is invested in large-company stocks. The Pelican Fund seeks to provide moderate to high earnings with moderate to high variability of returns. W.P. STEWART FUND The W.P. Stewart Fund is invested in a variety of growth stocks. The fund seeks moderate to high earnings with moderate to high variability of returns. VANGUARD BALANCED INDEX FUND The Vanguard Balanced Index Fund replaced the Dodge & Cox Balanced Fund. This fund seeks income as well as long-term growth of capital and income with moderate variability of returns by investing 60% of its assets in stocks and 40% of its assets in bonds. VANGUARD INTERNATIONAL GROWTH FUND The Vanguard International Growth Fund seeks high earnings with high variability of returns by investing in stocks of large, non-U.S. companies with good growth potential. FIDELITY CONTRAFUND The Fidelity Contrafund seeks high earnings with high variability of returns by investing in stocks of medium sized and some small and large sized companies. 7 THE CORNING INCORPORATED INVESTMENT PLAN FOR UNIONIZED EMPLOYEES NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2000 AND 1999 (DOLLAR AMOUNTS IN THOUSANDS EXCEPT PER SHARE DATA) - -------------------------------------------------------------------------------- 2. DESCRIPTION OF PLAN (CONTINUED) PUTNAM NEW OPPORTUNITIES FUND The Putnam New Opportunities Fund seeks high earnings with high variability of returns by investing in stocks of small, medium and some large sized companies with good growth potential in fast-growing industries. VANGUARD SMALL-CAP INDEX FUND The Vanguard Small-Cap Index Fund seeks long-term growth of capital with high variability of returns by investing in small company stocks. VANGUARD TOTAL BOND MARKET INDEX FUND The Vanguard Total Bond Market Index Fund seeks a high level of interest income with low-to-moderate variability of returns by investing in U.S. Treasury, federal agency, mortgage-backed and high-quality corporate bonds. CORNING INCORPORATED COMMON STOCK FUND The Corning Incorporated Common Stock Fund seeks high earnings with high variability of returns by investing in Corning Common Stock. The number of participants in each fund category was as follows:
DECEMBER 31, 2000 1999 Fixed Income Fund 2,874 3,071 Mutual Funds 7,226 6,055 Equity Fund 1,138 1,258 Corning Incorporated Common Stock Fund 5,590 5,238 Corning Incorporated Preferred Stock Fund 224 256
As many eligible employees participate in more than one fund, the total number of participants in the plan is less than the sum of the number of participants shown above. A total of 5,754 and 5,392 employees participated in the Plan at December 31, 2000 and 1999, respectively. DISTRIBUTIONS TO PARTICIPANTS Distributions are made upon retirement under the Company's Investment Plan, or in the event of a participant's total and permanent disability, death or other termination of employment. A retired participant can elect to receive distributions in a lump sum, installments, or intermittent withdrawals. The Plan also provides for withdrawals by participants prior to termination. As of December 31, 2000 and 1999, there were 2,949 and 2,743, respectively, terminated and retired participants in the Master Trust with a total vested value of $573,732 and $565,110, respectively. 8 THE CORNING INCORPORATED INVESTMENT PLAN FOR UNIONIZED EMPLOYEES NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2000 AND 1999 (DOLLAR AMOUNTS IN THOUSANDS EXCEPT PER SHARE DATA) - -------------------------------------------------------------------------------- 2. DESCRIPTION OF PLAN (CONTINUED) LOANS Participants are eligible to obtain loans from the Plan. Loans are limited to one loan with a repay-ment term not to exceed 4.5 years, except for primary residence loans which term may not exceed 10 years. The maximum amount of any loan is the lesser of one-half of the vested account balance, or $50,000 (with a $1,000 minimum). The interest rate on a loan is the prime rate plus 1% on the last business day of the month before the request for a loan. The Participant Loan Fund includes all loans outstanding to participants. FORFEITED ACCOUNTS Forfeited matching contributions approximating $329 at December 31, 2000, will be used to reduce future employer contributions. ADMINISTRATIVE FEES Participants in the Plan are charged an account fee of $2.00/month. The fee is deducted from each participant's account pro-rated among funds on the last business day of each month. Also, participants in the Plan are charged a loan fee of $50 per loan. The fee is deducted from the participant's loan proceeds. 3. CORNING INCORPORATED PREFERRED STOCK FUND Effective September 6, 1989, the Master Trust and Plan agreements were amended to reflect the creation of a Series B Convertible Preferred Stock, $100 par value (Preferred Stock) to be offered to participants of the Plan. The participants were given the opportunity, during a certain period of time designated by the Committee, to designate a portion of their contributions made prior to the date of amendment to be invested in the Preferred Stock. Distributions paid and transfers from the Corning Incorporated Preferred Stock Fund must first be converted to the Company's Common Stock in whole shares only. The stock is convertible into the Company's Common Stock, at a conversion rate of 14.37 shares of Common Stock for each share of Preferred Stock converted, with a minimum value of $100 (par value). Effective October 3, 2000, a 3-for-1 stock split increased the conversion rate from 4.79 to 14.37. The $100 floor applies to all transactions involving Corning Preferred Stock except for non-hardship withdrawals. Dividends on the Preferred Stock are declared quarterly and are payable as of the end of each calendar quarter. The dividend rate is equal to $2 per share of preferred stock. Dividends paid on shares of Preferred Stock are reinvested in the Stable Value Fund. 9 THE CORNING INCORPORATED INVESTMENT PLAN FOR UNIONIZED EMPLOYEES NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2000 AND 1999 (DOLLAR AMOUNTS IN THOUSANDS EXCEPT PER SHARE DATA) - -------------------------------------------------------------------------------- 4. INVESTMENT IN CORNING INCORPORATED COMMON STOCK During 2000, the Master Trust purchased 842,671 shares of Common Stock of the Company at an aggregate cost of $72,360 and sold 3,668,493 shares for proceeds of $261,102 resulting in realized gains of $228,375. The Master Trust distributed 717,928 shares of Common Stock having a market value of $51,178 (cost of $9,901) to participants of the plans. The participants of the plans converted preferred shares or contributed cash for the purchase of 871,860 shares of Common Stock having a market value of $52,333 to the Master Trust. At December 31, 2000 and 1999, the Master Trust held 21,884,466 and 24,556,356 shares of Common Stock of the Company, respectively, of which the Plan had specific ownership of 6,636,487 and 7,819,314 shares, respectively. The activity in the Corning Incorporated Common Stock Fund prior to October 3, 2000 has been adjusted for the 3-for-1 stock split effective October 3, 2000. 5. PLAN TERMINATION The Company may modify, suspend, change or terminate the Plan at any time. Although the Company intends to continue the Plan indefinitely, in the event the Plan is terminated, all amounts credited to participants' accounts will become 100% vested and will be distributed to participants in accordance with plan provisions. 6. FEDERAL INCOME TAXES The Internal Revenue Service (IRS) has determined and informed the Company by a letter dated January 22, 1996, that the Plan as amended through December 20, 1994 and restated as of January 1, 1991, meets the requirements of Section 401(a) of the IRS Code and that the Plan is exempt from taxation under Section 501(a) of the IRS Code. The Plan has been amended since receiving the determination letter. However, the plan administrator believes that the Plan is designed and is currently being operated in compliance with the applicable provisions of the IRC. Participants are not taxed currently on their pro rata share of the Company's contributions to the Plan or on income earned by the Plan. Distributions from accumulated before-tax contributions and related earnings are generally subject to federal income tax as ordinary income. 7. RISK AND UNCERTAINTIES The Plan provides for any combination of twelve investment funds. These investments are exposed to various risks, such as interest rate risk and market risk. Due to the level of risk associated with these investments and the level of uncertainty related to changes in the value of these investments, it is at least reasonably possible that changes in valuations in the near term would materially affect participants' account balances and the amount of such investments reported in the statement of net assets available for Plan distribution and the statement of changes in net assets available for Plan distribution. 10 THE CORNING INCORPORATED INVESTMENT PLAN FOR UNIONIZED EMPLOYEES NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2000 AND 1999 (DOLLAR AMOUNTS IN THOUSANDS EXCEPT PER SHARE DATA) - -------------------------------------------------------------------------------- 8. MASTER TRUST FINANCIAL INFORMATION Exhibits I and II reflect the Master Trust statement of net assets available for plan distributions and statement of changes in net assets available for plan distributions, respectively, by investment fund. The Plan's percentage interest in the net assets of the Master Trust at December 31, 2000 and 1999 was approximately 23% and 22.8%, respectively. Exhibits III and IV reflect statements of the Plan's interest in net assets by investment fund and of changes in the Plan's interest in net assets by investment fund, respectively. 9. SUBSEQUENT EVENTS On June 8, 2001, the market value of Corning Incorporated Common Stock was $18.87 per share which represented a $33.94 or 64% decrease from the December 31, 2000 market value of $52.81 per share. This decrease in the market value resulted in an unrealized loss of approximately $225,200 for the 6,636,487 shares of Corning Incorporated Common Stock held on behalf of the Plan at December 31, 2000. 11
EXHIBIT I THE CORNING INCORPORATED MASTER INVESTMENT TRUST STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS BY INVESTMENT FUND DECEMBER 31, 2000 (DOLLAR AMOUNTS IN THOUSANDS) - ---------------------------------------------------------------------------------------------------------------------------------- CORNING VANGUARD VANGUARD PUTNAM ----------------------- INSTITU- INTERNA- NEW VANGUARD COMMON PREFERRED TIONAL TIONAL FIDELITY OPPOR- BALANCED STOCK STOCK PELICAN INDEX GROWTH CONTRA- TUNITIES INDEX FUND FUND FUND FUND FUND FUND FUND FUND ASSETS: Investments, at market value: Corning Incorporated common stock (cost of $277,459) $ 1,155,773 $ - $ - $ - $ - $ - $ - $ - Corning Incorporated preferred stock (cost of $8,590) - 62,383 - - - - - - Mutual funds (cost of $440,533) - - 60,151 140,923 28,403 62,970 80,184 35,781 Equity fund (cost of $37,147) - - - - - - - - Pooled investment fund (cost approximates market value) 9,066 - - - - - - - Group annuity contracts, at contract value - - - - - - - - ------------ ---------- ---------- ----------- ---------- ---------- ---------- ---------- Total investments 1,164,839 62,383 60,151 140,923 28,403 62,970 80,184 35,781 Interfund receivables (payables) 200 (289) (1) (1) - 36 (31) (28) Interest and dividends receivable 46 165 - 442 - - - 513 Participant loans receivable - - - - - - - - Cash - - - - - - - - ------------ ---------- ---------- ----------- ---------- ---------- ---------- ---------- Total assets 1,165,085 62,259 60,150 141,364 28,403 63,006 80,153 36,266 Liabilities: Forfeitures payable (1,090) - (4) (7) (1) (39) (5) (32) Accrued expenses (22) - (1) (2) (1) (2) (2) (3) Securities payable (1,561) - - (442) - - - (513) ------------ ---------- ---------- ----------- ---------- ---------- ---------- ---------- Net assets available for benefits $ 1,162,412 $ 62,259 $ 60,145 $ 140,913 $ 28,401 $ 62,965 $ 80,146 $ 35,718 ------------ ---------- ---------- ----------- ---------- ---------- ---------- ---------- VANGUARD VANGUAGE TOTAL BOND SMALL-CAP MARKET W.P. STABLE PARTICIPANT INDEX INDEX STEWART VALUE LOAN FUND FUND FUND FUND FUND TOTAL ASSETS: Investments, at market value: Corning Incorporated common stock (cost of $277,459) $ - $ - $ - $ - $ - 1,155,773 Corning Incorporated preferred stock (cost of $8,590) - - - - - 62,383 Mutual funds (cost of $440,533) 15,542 7,894 - - - 431,848 Equity fund (cost of $37,147) - - 46,110 - - 46,110 Pooled investment fund (cost approximates market value) - - 1,123 1,057 - 11,246 Group annuity contracts, at contract value - - - 447,074 - 447,074 ---------- ---------- ---------- ----------- ---------- ------------- Total investments 15,542 7,894 47,233 448,131 - 2,154,434 Interfund receivables (payables) - 15 - 99 - - Interest and dividends receivable 2,109 - 53 10 - 3,338 Participant loans receivable - - - - 20,560 20,560 Cash - - - - 16 16 ---------- ---------- ---------- ----------- ---------- ------------- Total assets 17,651 7,909 47,286 448,240 20,576 2,178,348 Liabilities: Forfeitures payable - - (3) (251) - (1,432) Accrued expenses (2) - (97) (46) - (178) Securities payable (2,109) - - - - (4,625) ---------- ---------- ---------- ----------- ---------- ------------- Net assets available for benefits $ 15,540 $ 7,909 $ 47,186 $ 447,943 $ 20,576 $2,172,113 ---------- ---------- ---------- ----------- ---------- -------------
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EXHIBIT I (CONTINUED) THE CORNING INCORPORATED MASTER INVESTMENT TRUST STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS BY INVESTMENT FUND DECEMBER 31, 1999 (DOLLAR AMOUNTS IN THOUSANDS) - ---------------------------------------------------------------------------------------------------------------------------------- CORNING VANGUARD VANGUARD PUTNAM ----------------------- INSTITU- INTERNA- NEW VANGUARD COMMON PREFERRED TIONAL TIONAL FIDELITY OPPOR- BALANCED STOCK STOCK PELICAN INDEX GROWTH CONTRA- TUNITIES INDEX FUND FUND FUND FUND FUND FUND FUND FUND Assets: Investments, at market value: Corning Incorporated common stock (cost of $215,220) $ 1,055,412 $ - $ - $ - $ - $ - $ - $ - Corning Incorporated preferred stock (cost of $17,870) - 76,147 - - - - - - Mutual funds (cost of $245,795) - - 72,096 165,165 22,007 58,581 83,248 30,196 Equity fund (cost of $49,426) - - - - - - - - Pooled investment fund (cost approximates market value) 1,310 3 - - - - - - Group annuity contracts, at contract value - - - - - - - - ------------ ---------- ---------- ----------- ---------- ---------- ---------- ---------- Total investments 1,056,722 76,150 72,096 165,165 22,007 58,581 83,248 30,196 Interfund receivables (payables) 19 (341) (12) (69) 88 10 (5) (37) Interest and dividends receivable 12 246 - 1,149 - - - 359 Securities receivable - - - - - - - - Participant loans recivable - - - - - - - - Cash - (2) - - - - - - ------------ ---------- ---------- ----------- ---------- ---------- ---------- ---------- Total assets 1,056,753 76,053 72,084 166,245 22,095 58,591 83,243 30,518 LIABILITIES: Forfeitures payable (1,023) - (6) (3) (1) (25) (3) (26) Accrued expenses (10) - (2) (2) (1) (2) (2) - Securities payable - - - (1,149) - - - (359) ------------ ---------- ---------- ----------- ---------- ---------- ---------- ---------- Net assets available for benefits $ 1,055,720 $ 76,053 $ 72,076 $ 165,091 $ 22,093 $ 58,564 $ 83,238 $ 30,133 ------------ ---------- ---------- ----------- ---------- ---------- ---------- ---------- VANGUARD VANGUAGE TOTAL BOND SMALL-CAP MARKET W.P. STABLE PARTICIPANT INDEX INDEX STEWART VALUE LOAN FUND FUND FUND FUND FUND TOTAL Assets: Investments, at market value: Corning Incorporated common stock (cost of $215,220) $ - $ - $ - $ - $ - $1,055,412 Corning Incorporated preferred stock (cost of $17,870) - - - - - 76,147 Mutual funds (cost of $245,795) 2,592 1,194 - - - 435,079 Equity fund (cost of $49,426) - - 68,673 - - 68,673 Pooled investment fund (cost approximates market value) - - 168 1,923 - 3,404 Group annuity contracts, at contract value - - - 365,756 - 365,756 ---------- ---------- ---------- ----------- ---------- ------------- Total investments 2,592 1,194 68,841 367,679 - 2,004,471 Interfund receivables (payables) 37 14 (59) 355 - - Interest and dividends receivable 169 6 57 10 - 2,008 Securities receivable - - - - - - Participant loans recivable - - - - 15,027 15,027 Cash - - - - - (2) ---------- ---------- ---------- ----------- ---------- ------------- Total assets 2,798 1,214 68,839 368,044 15,027 2,021,504 LIABILITIES: Forfeitures payable - - (3) (11) - (1,101) Accrued expenses - - (192) (31) - (242) Securities payable - - - - - (1,508) ---------- ---------- ---------- ----------- ---------- ------------- Net assets available for benefits $ 2,798 $ 1,214 $ 68,644 $ 368,002 $ 15,027 $2,018,653 ---------- ---------- ---------- ----------- ---------- -------------
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EXHIBIT II THE CORNING INCORPORATED MASTER INVESTMENT TRUST STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS BY INVESTMENT FUND DECEMBER 31, 2000 (DOLLAR AMOUNTS IN THOUSANDS) - --------------------------------------------------------------------------------------------------------------------------------- CORNING VANGUARD VANGUARD ------------------------ INSTITU- INTERNA- COMMON PREFERRED TIONAL TIONAL FIDELITY STOCK STOCK PELICAN INDEX GROWTH CONTRA- FUND FUND FUND FUND FUND FUND Income from investments: Interest $ 376 $ -- $ -- $ -- $ -- $ -- Dividends 5,401 735 13,523 1,650 2,266 7,704 Group annuity contracts -- -- -- -- -- -- ----------- ----------- ----------- ----------- ----------- ----------- Total income from investments 5,777 735 13,523 1,650 2,266 7,704 Net gain on sales of investments, based on average cost 269,652 38,708 (4,207) 15,864 460 511 Increase (decrease) in net unrealized appreciation on investments 18,590 (10,068) (3,182) (31,574) (5,660) (12,459) Expenses other than interest (254) -- (7) (21) (5) (12) ----------- ----------- ----------- ----------- ----------- ----------- Increase (decrease) in net assets from investment activities 293,765 29,375 6,127 (14,081) (2,939) (4,256) ----------- ----------- ----------- ----------- ----------- ----------- Contributions: Employer contributions (cash) 25,618 -- -- -- -- -- Participant contributions 19,108 -- 3,842 9,739 3,061 6,597 ----------- ----------- ----------- ----------- ----------- ----------- Total contributions 44,726 -- 3,842 9,739 3,061 6,597 ----------- ----------- ----------- ----------- ----------- ----------- Distributions to participants (128,487) -- (6,187) (13,766) (2,142) (4,389) Net transfer from (to) other qualified funds 29 29 91 3,343 661 5,424 Net transfer from (to) associated funds (103,341) (43,198) (15,804) (9,413) 7,667 1,025 ----------- ----------- ----------- ----------- ----------- ----------- Increase (decrease) in net assets during the year 106,692 (13,794) (11,931) (24,178) 6,308 4,401 Net assets available for benefits: Beginning of year 1,055,720 76,053 72,076 165,091 22,093 58,564 ----------- ----------- ----------- ----------- ----------- ----------- End of year $ 1,162,412 $ 62,259 $ 60,145 $ 140,913 $ 28,401 $ 62,965 ----------- ----------- ----------- ----------- ----------- ----------- PUTNAM VANGUARD NEW VANGUARD VANGUARD TOTAL BOND CORNING OPPOR- BALANCED SMALL-CAP MARKET W.P. STABLE TUNITIES INDEX INDEX INDEX STEWART VALUE FUND FUND FUND FUND FUND FUND Income from investments: Interest $ -- $ -- $ -- $ -- $ 96 $ -- Dividends 11,160 1,330 2,224 247 403 -- Group annuity contracts -- -- -- -- -- 28,064 ----------- ----------- ----------- ----------- ----------- ----------- Total income from investments 11,160 1,330 2,224 247 499 28,064 Net gain on sales of investments, based on average cost 6,388 492 (400) 28 (2,047) -- Increase (decrease) in net unrealized appreciation on investments (48,834) (2,544) (3,344) 207 (663) -- Expenses other than interest (18) (17) (61) 1 (287) (820) ----------- ----------- ----------- ----------- ----------- ----------- Increase (decrease) in net assets from investment activities (31,304) (739) (1,581) 483 (2,498) 27,244 ----------- ----------- ----------- ----------- ----------- ----------- Contributions: Employer contributions (cash) -- -- -- -- -- -- Participant contributions 9,705 4,114 1,875 534 3,992 7,295 ----------- ----------- ----------- ----------- ----------- ----------- Total contributions 9,705 4,114 1,875 534 3,992 7,295 ----------- ----------- ----------- ----------- ----------- ----------- Distributions to participants (7,602) (3,642) (550) (629) (3,750) (84,955) Net transfer from (to) other qualified funds 1,120 846 591 494 30 1,715 Net transfer from (to) associated funds 24,989 5,006 12,407 5,813 (19,232) 128,642 ----------- ----------- ----------- ----------- ----------- ----------- Increase (decrease) in net assets during the year (3,092) 5,585 12,742 6,695 (21,458) 79,941 Net assets available for benefits: Beginning of year 83,238 30,133 2,798 1,214 68,644 368,002 ----------- ----------- ----------- ----------- ----------- ----------- End of year $ 80,146 $ 35,718 $ 15,540 $ 7,909 $ 47,186 $ 447,943 ----------- ----------- ----------- ----------- ----------- ----------- VANGUARD PARTICIPANT LOAN FUND TOTAL Income from investments: Interest $ 1,351 $ 1,823 Dividends -- 46,643 Group annuity contracts -- 28,064 ----------- ----------- Total income from investments 1,351 76,530 Net gain on sales of investments, based on average cost -- 325,449 Increase (decrease) in net unrealized appreciation on investments -- (99,531) Expenses other than interest -- (1,501) ----------- ----------- Increase (decrease) in net assets from investment activities 1,351 300,947 ----------- ----------- Contributions: Employer contributions (cash) -- 25,618 Participant contributions -- 69,862 ----------- ----------- Total contributions -- 95,480 ----------- ----------- Distributions to participants (1,241) (257,340) Net transfer from (to) other qualified funds -- 14,373 Net transfer from (to) associated funds 5,439 -- ----------- ----------- Increase (decrease) in net assets during the year 5,549 153,460 Net assets available for benefits: Beginning of year 15,027 2,018,653 ----------- ----------- End of year $ 20,576 $ 2,172,113 ----------- -----------
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EXHIBIT III THE CORNING INCORPORATED MASTER INVESTMENT TRUST STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS BY INVESTMENT FUND DECEMBER 31, 2000 AND 1999 (DOLLAR AMOUNTS IN THOUSANDS) - --------------------------------------------------------------------------------------------------------------------------------- 2000 1999 ASSETS Investments in Corning Incorporated Master Investment Trust, at market value: Corning Incorporated Common Stock Funds (cost of $84,140 in 2000 and $60,234 in 1999) $352,503 $336,166 Corning Incorporated Preferred Stock Fund (cost of $523 in 2000 and $582 in 1999) 3,791 3,590 Pelican Fund (cost of $9,466 in 2000 and $10,647 in 1999) 7,940 9,537 Vanguard Institutional Index Fund (cost of $9,769 in 2000 and $10,116 in 1999) 13,173 17,188 Vanguard International Growth Fund (cost of $2,011 in 2000 and $1,295 in 1999) 1,881 1,564 Fidelity Contrafund (cost of $5,788 in 2000 and $5,039 in 1999) 5,217 5,567 Putnam New Opportunities Fund (cost of $17,177 in 2000 and $7,737 in 1999) 13,534 11,512 Vanguard Balanced Index Fund (cost of $3,216 in 2000 and $2,446 in 1999) 3,201 2,655 Vanguard Small-Cap Index Fund (cost of $2,730 in 2000 and $373 in 1999) 2,254 388 Vanguard Total Bond Market Index Fund (cost of $851 in 2000 and $107 in 1999) 874 107 W.P. Stewart Fund (cost of $4,627 in 2000 and $6,350 in 1999) 5,877 7,515 Stable Value Fund, at contract value 78,656 56,597 Participant Loan Fund (cost approximates market value) 9,807 7,273 -------- -------- Net assets available for benefits $498,708 $459,659 -------- --------
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EXHIBIT IV THE CORNING INCORPORATED MASTER INVESTMENT TRUST STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS BY INVESTMENT FUND DECEMBER 31, 2000 AND 1999 (DOLLAR AMOUNTS IN THOUSANDS) - --------------------------------------------------------------------------------------------------------------------------------- CORNING VANGUARD VANGUARD PUTNAM ---------------------- INSTITU- INTERNA- NEW COMMON PREFERRED TIONAL TIONAL FIDELITY OPPOR- STOCK STOCK PELICAN INDEX GROWTH CONTRA- TUNITIES FUND FUND FUND FUND FUND FUND FUND Allocated portion of increase in net assets from investment activities in the Corning Incorporated Master Investment Trust $ 105,660 $ 1,096 $ 782 $ (1,349) $ (177) $ (369) $ (5,765) --------- --------- --------- --------- --------- --------- --------- Contribution: Employer contributions - cash 7,468 -- -- -- -- -- -- Participant contributions 6,847 -- 610 925 252 515 1,060 --------- --------- --------- --------- --------- --------- --------- Total contributions 14,315 -- 610 925 252 515 1,060 --------- --------- --------- --------- --------- --------- --------- Distributions to participants (46,642) -- (831) (1,464) (165) (360) (1,495) Net transfer from (to) other qualified plans (7,016) (32) (113) (125) (91) (93) (399) Net transfers from (to) associated funds (49,980) (863) (2,045) (2,002) 498 (43) 8,621 --------- --------- --------- --------- --------- --------- --------- Increase (decrease) in net assets during the year 16,337 201 (1,597) (4,015) 317 (350) 2,022 Net assets available for benefits: Beginning of year 336,166 3,590 9,537 17,188 1,564 5,567 11,512 --------- --------- --------- --------- --------- --------- --------- End of year $ 352,503 $ 3,791 $ 7,940 $ 13,173 $ 1,881 $ 5,217 $ 13,534 --------- --------- --------- --------- --------- --------- --------- VANGUARD VANGUARD VANGUARD TOTAL BOND BALANCED SMALL-CAP MARKET W.P. STABLE PARTICIPANT INDEX INDEX INDEX STEWART VALUE LOAN FUND FUND FUND FUND FUND FUND TOTAL Allocated portion of increase in net assets from investment activities in the Corning Incorporated Master Investment Trust $ (69) $ (271) $ 41 $ (277) $ 4,674 $ 644 $ 104,620 --------- --------- --------- --------- --------- --------- --------- Contribution: Employer contributions - cash -- -- -- -- -- -- 7,468 Participant contributions 326 170 48 506 1,761 -- 13,020 --------- --------- --------- --------- --------- --------- --------- Total contributions 326 170 48 506 1,761 -- 20,488 --------- --------- --------- --------- --------- --------- --------- Distributions to participants (761) (77) (56) (395) (24,678) (592) (77,516) Net transfer from (to) other qualified plans (92) (36) (23) (115) (408) -- (8,543) Net transfers from (to) associated funds 1,142 2,080 757 (1,357) 40,710 2,482 -- --------- --------- --------- --------- --------- --------- --------- Increase (decrease) in net assets during the year 546 1,866 767 (1,638) 22,059 2,534 39,049 Net assets available for benefits: Beginning of year 2,655 388 107 7,515 56,597 7,273 459,659 --------- --------- --------- --------- --------- --------- --------- End of year $ 3,201 $ 2,254 $ 874 $ 5,877 $ 78,656 $ 9,807 $ 498,708 --------- --------- --------- --------- --------- --------- ---------
16 EX-23 2 a2052997zex-23.txt EXHIBIT 23 EXHIBIT 23 [LOGO] PRICEWATERHOUSECOOPER - -------------------------------------------------------------------------------- PRICEWATERHOUSECOOPERS LLP One Lincoln Center Syracuse NY 13202-9972 Telephone (315) 474 8541 Facsimile (315) 473 1385 CONSENT OF INDEPENDENT ACCOUNTANTS ---------------------------------- We hereby consent to the incorporation by reference in the Registration Statement on Form S-8 (Nos. 33-30575, 33-3036 and 333-26049) of Corning Incorporated of our report dated April 20, 2001 relating to the financial statements of The Corning Incorporated Investment Plan, which appears in this Form 11-K. /s/ PricewaterhouseCoopers LLP PricewaterhouseCoopers LLP Syracuse, New York June 25, 2001 -----END PRIVACY-ENHANCED MESSAGE-----