Note 12 - Shareholders' Equity

9 Months Ended

Sep. 30, 2023

Notes to Financial Statements

Equity [Text Block]

12. Shareholders’ Equity

Fixed Rate Cumulative Convertible Preferred Stock, Series A

We had 2,300 outstanding shares of Fixed Rate Cumulative Convertible Preferred Stock, Series A (the “Preferred Stock”) as of December 31, 2020. On January 16, 2021, the Preferred Stock became convertible into 115 million common shares. On April 5, 2021, we executed a Share Repurchase Agreement (“SRA”) with Samsung Display Co., Ltd. (“SDC”) and the Preferred Stock was fully converted as of April 8, 2021. Immediately following the conversion, we repurchased and retired 35 million of the common shares held by SDC for an aggregate purchase price of approximately $1.5 billion, of which approximately $507 million was paid in April 2022 and 2021. The remaining payment of approximately $507 million was made in April 2023.

Share Repurchase Program

In 2019, the Board authorized the repurchase of up to $5.0 billion of common stock (“2019 Authorization”).

During the three and nine months ended  September 30, 2022, the Company repurchased 0.5 million shares and 6.0 million shares, respectively, of common stock on the open market for approximately $17 million and $221 million, respectively, as part of its 2019 Authorization. No shares were purchased on the open market during the three and nine months ended September 30, 2023.

As of September 30, 2023, approximately $3.3 billion remains available under the Company’s 2019 Authorization.

Common Stock Dividends

On October 4, 2023, Corning’s Board of Directors declared a dividend of $0.28 per share of common stock.  The dividend will be payable on December 15, 2023.

Accumulated Other Comprehensive Loss

For the three and nine months ended September 30, 2023 and 2022, the change in accumulated other comprehensive loss was primarily related to the foreign currency translation adjustments.

The following table presents the changes in the foreign currency translation adjustment component of accumulated other comprehensive loss, including the proportionate share of equity method affiliates’ accumulated other comprehensive loss (in millions) (1):

	Three months ended						Nine months ended
	September 30,						September 30,
	2023			2022			2023			2022
Beginning balance	$	(2,114	)	$	(1,783	)	$	(1,712	)	$	(933	)
Loss on foreign currency translation (2)		(195	)		(664	)		(588	)		(1,497	)
Equity method affiliates (3)		4			(21	)		(5	)		(38	)
Net current-period other comprehensive loss		(191	)		(685	)		(593	)		(1,535	)
Ending balance	$	(2,305	)	$	(2,468	)	$	(2,305	)	$	(2,468	)

(1) All amounts are after tax. Amounts in parentheses indicate debits to accumulated other comprehensive loss.

(2) For the three and nine months ended September 30, 2023, amounts are net of tax benefit of $14 million and $33 million, respectively.  For the three and nine months ended September 30, 2022, amounts are net of tax benefit of $49 million and $87 million, respectively.

(3) Tax effects are not significant.