Form 8-K CORNING INC /NY For: Jan 26
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E-mailUNITED STATES
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)
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January 27, 2015
|
CORNING INCORPORATED
(Exact name of registrant as specified in its charter)
|
New�York
(State�or�other�jurisdiction
of�incorporation)
|
1-3247
(Commission
File�Number)
|
16-0393470
(I.R.S.�Employer
Identification�No.)
|
|
One�Riverfront�Plaza,�Corning,�New�York
(Address�of�principal�executive�offices)
|
� |
14831
(Zip�Code)
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(607) 974-9000
(Registrants telephone number, including area code)
N/A
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
|
�
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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|
�
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
|
|
�
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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�
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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� 2015 Corning Incorporated. All Rights Reserved.
-1-
�
�
Item�7.01 Regulation FD Disclosure.
Corning Incorporated (the Company ) adopted the use of core performance measures as a supplement to U.S. generally accepted accounting principles ( GAAP ), in early 2013 when the Japanese yen began a significant weakening trend relative to the U.S. dollar.��Corning used a yen-to-dollar rate of �93 ( constant-yen ) for its core reporting in 2013 and 2014, which was aligned with the Companys hedge rates during that time period.��The Company announced that, beginning with the first quarter of 2015, it is changing the constant-yen rate used in the calculation of its core performance measures to the rate of �99 to align with its hedges entered into for the years 2015 through 2017.��The Company believes that presenting its results on a constant-yen basis mitigates the translation impact of the Japanese yen, and allows management to evaluate operating performance period over period, analyze underlying trends in its businesses, and establish operational goals and forecasts, as well as assisting investors in understanding its financial results.
Exhibit 99 to this Form 8-K provides recast core performance measures for Corning Incorporated in total, as well as the Display Technologies and Specialty Materials segments, for the years ended December 31, 2014 and 2013, and quarters ended March 31, 2014 and 2013, June 30, 2014 and 2013, September 30, 2014 and 2013, and December 31, 2014 and 2013.��Cornings remaining segments are not impacted by the change in constant-yen.
In Exhibit�99, the Company discloses items not prepared in accordance with GAAP, or non-GAAP financial measures (as defined in Regulation G promulgated by the U.S. Securities and Exchange Commission) that exclude certain significant charges or credits that are important to an understanding of the Companys ongoing operations.��The Company believes that its inclusion of these non-GAAP financial measures provides useful supplementary information to and facilitates analysis by investors in evaluating the Companys performance and trends.��The Company uses both GAAP financial measures and the disclosed non-GAAP financial measures internally to evaluate and manage the Companys operations and to better understand its business.��These non-GAAP financial measures are in addition to, not a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP.
The recasting of previously issued financial information does not represent a restatement of previously issued financial statements and does not affect the Companys reported sales, equity earnings, net income or earnings per share, for any of the previously reported periods.��The information contained in this Form�8-K is being furnished pursuant to Regulation FD in order to provide the financial community with historical financial data that is presented on a basis consistent with the Companys new core performance measure reporting structure.
In accordance with General Instruction B.2 of Form�8-K, the information in this Current Report on Form�8-K, shall not be deemed to be filed for purposes of Section�18 of the Securities Exchange Act of 1934, as amended (the Exchange Act ), or otherwise subject to the liability of that section, and shall not be incorporated by reference into any registration statement or other document filed under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.
� 2015 Corning Incorporated. All Rights Reserved.
-2-
�
Item 9.01.��Financial Statements and Exhibits
(d)�����������Exhibit
|
�
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99
|
Summary of Core Performance Measure changes for the years ended December 31, 2014 and 2013, and quarters ended March 31, 2014 and 2013, June 30, 2014 and 2013, September 30, 2014 and 2013, and December 31, 2014 and 2013 for Corning Incorporated, the Display Technologies segment and the Specialty Materials segment, issued by Corning Incorporated.
|
� 2015 Corning Incorporated. All Rights Reserved.
-3-
�
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:��January 27, 2015
|
By
|
/s/��R. TONY TRIPENY
|
| � | � |
R. Tony Tripeny
|
| � | � |
Senior Vice President & Corporate Controller
|
� 2015 Corning Incorporated. All Rights Reserved.
-4-
�
Exhibit 99
Summary of Changes in Core Performance Measures
|
Three months ended March 31, 2014
|
Corning
Incorporated
|
� |
Display
Technologies
|
� |
Specialty
Materials
|
|||
|
Core net sales as reported -JPY 93^
|
$
|
2,389�
|
� |
$
|
1,029�
|
� |
$
|
261
|
|
Constant yen adjustment to JPY 99
|
� |
(63)
|
� | � |
(63)
|
� | � |
�
|
|
Core net sales - JPY 99*
|
$
|
2,326�
|
� |
$
|
966�
|
� |
$
|
261
|
| � | � | � | � | � | � | � | � | � |
|
Core equity earnings as reported - JPY 93^
|
$
|
61�
|
� |
$
|
(2)
|
� |
�
|
� |
|
Constant yen adjustment to JPY 99
|
� |
�
|
� | � |
�
|
� | � | � |
|
Core equity earnings - JPY 99*
|
$
|
61�
|
� |
$
|
(2)
|
� |
�
|
� |
| � | � | � | � | � | � | � | � | � |
|
Core earnings as reported - JPY 93^
|
$
|
461�
|
� |
$
|
323�
|
� |
$
|
32
|
|
Constant yen adjustment to JPY 99
|
� |
(38)
|
� | � |
(40)
|
� | � |
�
|
|
Core earnings - JPY 99*
|
$
|
423�
|
� |
$
|
283�
|
� |
$
|
32
|
|
Three months ended June 30, 2014
|
Corning
Incorporated
|
� |
Display
Technologies
|
� |
Specialty
Materials
|
|||
|
Core net sales as reported -JPY 93^
|
$
|
2,577�
|
� |
$
|
1,083�
|
� |
$
|
298
|
|
Constant yen adjustment to JPY 99
|
� |
(65)
|
� | � |
(66)
|
� | � |
�
|
|
Core net sales - JPY 99*
|
$
|
2,512�
|
� |
$
|
1,017�
|
� |
$
|
298
|
| � | � | � | � | � | � | � | � | � |
|
Core equity earnings as reported - JPY 93^
|
$
|
58�
|
� |
$
|
(3)
|
� |
�
|
� |
|
Constant yen adjustment to JPY 99
|
� |
(1)
|
� | � |
(1)
|
� | � | � |
|
Core equity earnings - JPY 99*
|
$
|
57�
|
� |
$
|
(4)
|
� |
�
|
� |
| � | � | � | � | � | � | � | � | � |
|
Core earnings as reported - JPY 93^
|
$
|
527�
|
� |
$
|
342�
|
� |
$
|
44
|
|
Constant yen adjustment to JPY 99
|
� |
(40)
|
� | � |
(42)
|
� | � |
1
|
|
Core earnings - JPY 99*
|
$
|
487�
|
� |
$
|
300�
|
� |
$
|
45
|
|
Three months ended September 30, 2014
|
Corning
Incorporated |
� |
Display
Technologies
|
� |
Specialty
Materials
|
|||
|
Core net sales as reported -JPY 93^
|
$
|
2,649�
|
� |
$
|
1,119�
|
� |
$
|
327
|
|
Constant yen adjustment to JPY 99
|
� |
(66)
|
� | � |
(66)
|
� | � |
�
|
|
Core net sales - JPY 99*
|
$
|
2,583�
|
� |
$
|
1,053�
|
� |
$
|
327
|
| � | � | � | � | � | � | � | � | � |
|
Core equity earnings as reported - JPY 93^
|
$
|
76�
|
� |
$
|
(2)
|
� |
�
|
� |
|
Constant yen adjustment to JPY 99
|
� |
(1)
|
� | � |
(1)
|
� | � | � |
|
Core equity earnings - JPY 99*
|
$
|
75�
|
� |
$
|
(3)
|
� |
�
|
� |
| � | � | � | � | � | � | � | � | � |
|
Core earnings as reported - JPY 93^
|
$
|
568�
|
� |
$
|
347�
|
� |
$
|
52
|
|
Constant yen adjustment to JPY 99
|
� |
(41)
|
� | � |
(43)
|
� | � |
1
|
|
Core earnings - JPY 99*
|
$
|
527�
|
� |
$
|
304�
|
� |
$
|
53
|
|
Three months ended December 31, 2014
|
Corning
Incorporated
|
� |
Display
Technologies
|
� |
Specialty
Materials
|
|||
|
Core net sales as reported -JPY 93^
|
$
|
2,602�
|
� |
$
|
1,123�
|
� |
$
|
319
|
|
Constant yen adjustment to JPY 99
|
� |
(68)
|
� | � |
(68)
|
� | � |
�
|
|
Core net sales - JPY 99*
|
$
|
2,534�
|
� |
$
|
1,055�
|
� |
$
|
319
|
| � | � | � | � | � | � | � | � | � |
|
Core equity earnings as reported - JPY 93^
|
$
|
116�
|
� |
$
|
(3)
|
� |
�
|
� |
|
Constant yen adjustment to JPY 99
|
� |
�
|
� | � |
�
|
� | � | � |
|
Core equity earnings - JPY 99*
|
$
|
116�
|
� |
$
|
(3)
|
� |
�
|
� |
| � | � | � | � | � | � | � | � | � |
|
Core earnings as reported - JPY 93^
|
$
|
630�
|
� |
$
|
378�
|
� |
$
|
34
|
|
Constant yen adjustment to JPY 99
|
� |
(43)
|
� | � |
(49)
|
� | � |
2
|
|
Core earnings - JPY 99*
|
$
|
587�
|
� |
$
|
329�
|
� |
$
|
36
|
|
Year ended December 31, 2014
|
Corning
Incorporated
|
� |
Display
Technologies
|
� |
Specialty
Materials
|
|||
|
Core net sales as reported -JPY 93^
|
$
|
10,217�
|
� |
$
|
4,354
|
� |
$
|
1,205
|
|
Constant yen adjustment to JPY 99
|
� |
(262)
|
� | � |
(262)
|
� | � |
�
|
|
Core net sales - JPY 99*
|
$
|
9,955�
|
� |
$
|
4,092
|
� |
$
|
1,205
|
| � | � | � | � | � | � | � | � | � |
|
Core equity earnings as reported - JPY 93^
|
$
|
311�
|
� |
$
|
(10)
|
� |
�
|
� |
|
Constant yen adjustment to JPY 99
|
� |
(1)
|
� | � |
(2)
|
� | � | � |
|
Core equity earnings - JPY 99*
|
$
|
310�
|
� |
$
|
(12)
|
� |
�
|
� |
| � | � | � | � | � | � | � | � | � |
|
Core earnings as reported - JPY 93^
|
$
|
2,185�
|
� |
$
|
1,390�
|
� |
$
|
162
|
|
Constant yen adjustment to JPY 99
|
� |
(162)
|
� | � |
(174)
|
� | � |
4
|
|
Core earnings - JPY 99*
|
$
|
2,023�
|
� |
$
|
1,216�
|
� |
$
|
166
|
� 2015 Corning Incorporated. All Rights Reserved.
-1-
�
|
Three months ended March 31, 2013
|
Corning
Incorporated
|
� |
Display
Technologies
|
� |
Specialty
Materials
|
|||
|
Core net sales as reported -JPY 93^
|
$
|
1,814�
|
� |
$
|
650�
|
� |
$
|
258
|
|
Constant yen adjustment to JPY 99
|
� |
(44)
|
� | � |
(44)
|
� | � |
�
|
|
Core net sales - JPY 99*
|
$
|
1,770�
|
� |
$
|
606�
|
� |
$
|
258
|
| � | � | � | � | � | � | � | � | � |
|
Core equity earnings as reported - JPY 93^
|
$
|
180�
|
� |
$
|
133�
|
� |
�
|
� |
|
Constant yen adjustment to JPY 99
|
� |
(25)
|
� | � |
(25)
|
� | � | � |
|
Core equity earnings - JPY 99*
|
$
|
155�
|
� |
$
|
108�
|
� |
�
|
� |
| � | � | � | � | � | � | � | � | � |
|
Core earnings as reported - JPY 93^
|
$
|
431�
|
� |
$
|
336�
|
� |
$
|
39
|
|
Constant yen adjustment to JPY 99
|
� |
(45)
|
� | � |
(47)
|
� | � |
2
|
|
Core earnings - JPY 99*
|
$
|
386�
|
� |
$
|
289�
|
� |
$
|
41
|
|
Three months ended June 30, 2013
|
Corning
Incorporated
|
� |
Display
Technologies
|
� |
Specialty
Materials
|
|||
|
Core net sales as reported -JPY 93^
|
$
|
2,021�
|
� |
$
|
670�
|
� |
$
|
301
|
|
Constant yen adjustment to JPY 99
|
� |
(41)
|
� | � |
(41)
|
� | � |
�
|
|
Core net sales - JPY 99*
|
$
|
1,980�
|
� |
$
|
629�
|
� |
$
|
301
|
| � | � | � | � | � | � | � | � | � |
|
Core equity earnings as reported - JPY 93^
|
$
|
173�
|
� |
$
|
117�
|
� |
�
|
� |
|
Constant yen adjustment to JPY 99
|
� |
(13)
|
� | � |
(12)
|
� | � | � |
|
Core equity earnings - JPY 99*
|
$
|
160�
|
� |
$
|
105�
|
� |
�
|
� |
| � | � | � | � | � | � | � | � | � |
|
Core earnings as reported - JPY 93^
|
$
|
469�
|
� |
$
|
314�
|
� |
$
|
53
|
|
Constant yen adjustment to JPY 99
|
� |
(31)
|
� | � |
(33)
|
� | � |
1
|
|
Core earnings - JPY 99*
|
$
|
438�
|
� |
$
|
281�
|
� |
$
|
54
|
|
Three months ended September 30, 2013
|
Corning
Incorporated |
� |
Display
Technologies
|
� |
Specialty
Materials
|
|||
|
Core net sales as reported -JPY 93^
|
$
|
2,108�
|
� |
$
|
689�
|
� |
$
|
326
|
|
Constant yen adjustment to JPY 99
|
� |
(42)
|
� | � |
(42)
|
� | � |
�
|
|
Core net sales - JPY 99*
|
$
|
2,066�
|
� |
$
|
647�
|
� |
$
|
326
|
| � | � | � | � | � | � | � | � | � |
|
Core equity earnings as reported - JPY 93^
|
$
|
121�
|
� |
$
|
85�
|
� |
�
|
� |
|
Constant yen adjustment to JPY 99
|
� |
(13)
|
� | � |
(13)
|
� | � | � |
|
Core equity earnings - JPY 99*
|
$
|
108�
|
� |
$
|
72�
|
� |
�
|
� |
| � | � | � | � | � | � | � | � | � |
|
Core earnings as reported - JPY 93^
|
$
|
487�
|
� |
$
|
304�
|
� |
$
|
65
|
|
Constant yen adjustment to JPY 99
|
� |
(32)
|
� | � |
(32)
|
� | � |
�
|
|
Core earnings - JPY 99*
|
$
|
455�
|
� |
$
|
272�
|
� |
$
|
65
|
|
Three months ended December 31, 2013
|
Corning
Incorporated
|
� |
Display
Technologies
|
� |
Specialty
Materials
|
|||
|
Core net sales as reported -JPY 93^
|
$
|
2,005�
|
� |
$
|
665�
|
� |
$
|
285
|
|
Constant yen adjustment to JPY 99
|
� |
(40)
|
� | � |
(40)
|
� | � |
�
|
|
Core net sales - JPY 99*
|
$
|
1,965�
|
� |
$
|
625�
|
� |
$
|
285
|
| � | � | � | � | � | � | � | � | � |
|
Core equity earnings as reported - JPY 93^
|
$
|
121�
|
� |
$
|
85�
|
� |
�
|
� |
|
Constant yen adjustment to JPY 99
|
� |
(13)
|
� | � |
(13)
|
� | � | � |
|
Core equity earnings - JPY 99*
|
$
|
108�
|
� |
$
|
72�
|
� |
�
|
� |
| � | � | � | � | � | � | � | � | � |
|
Core earnings as reported - JPY 93^
|
$
|
410�
|
� |
$
|
299�
|
� |
$
|
39
|
|
Constant yen adjustment to JPY 99
|
� |
(33)
|
� | � |
(34)
|
� | � |
1
|
|
Core earnings - JPY 99*
|
$
|
377�
|
� |
$
|
265�
|
� |
$
|
40
|
|
Year ended December 31, 2013
|
Corning
Incorporated
|
� |
Display
Technologies
|
� |
Specialty
Materials
|
|||
|
Core net sales as reported -JPY 93^
|
$
|
7,948�
|
� |
$
|
2,674�
|
� |
$
|
1,170
|
|
Constant yen adjustment to JPY 99
|
� |
(168)
|
� | � |
(167)
|
� | � |
0
|
|
Core net sales - JPY 99*
|
$
|
7,780�
|
� |
$
|
2,507�
|
� |
$
|
1,170
|
| � | � | � | � | � | � | � | � | � |
|
Core equity earnings as reported - JPY 93^
|
$
|
595�
|
� |
$
|
420�
|
� |
�
|
� |
|
Constant yen adjustment to JPY 99
|
� |
(64)
|
� | � |
(63)
|
� | � | � |
|
Core equity earnings - JPY 99*
|
$
|
531�
|
� |
$
|
357�
|
� |
�
|
� |
| � | � | � | � | � | � | � | � | � |
|
Core earnings as reported - JPY 93^
|
$
|
1,797�
|
� |
$
|
1,253�
|
� |
$
|
196
|
|
Constant yen adjustment to JPY 99
|
� |
(141)
|
� | � |
(146)
|
� | � |
4
|
|
Core earnings - JPY 99*
|
$
|
1,656�
|
� |
$
|
1,107�
|
� |
$
|
200
|
|
*
|
These are non-GAAP financial measures.��The reconciliation between GAAP and non-GAAP measures is provided in the tables following this news release, as well as on the companys website.��Core performance metrics (non-GAAP) are adjusted to exclude the impact of changes in Japanese yen and Korean won foreign exchange rates, as well as other items that do not reflect ongoing operations of the company.��See Use of Non-GAAP Financial Measures section of attached Form 8-K for details on core performance measures.
|
|
^
|
These are non-GAAP financial measures.��The reconciliation between these GAAP and non-GAAP measures is provided on the companys website.
|
� 2015 Corning Incorporated. All Rights Reserved.
-2-
�
CORNING INCORPORATED AND SUBSIDIARY COMPANIES
RECONCILIATION OF NON-GAAP FINANCIAL MEASURE TO GAAP FINANCIAL MEASURE
Three Months Ended March 31, 2014
(Unaudited; amounts in millions, except per share amounts)
| � |
Three�months�ended�March�31,�2014
|
||||||||||||||
| � |
Net
sales
|
� |
Equity
earnings
|
� |
Income
before
income
taxes
|
� |
Net
income
|
� |
Effective
tax
rate
|
� |
Per
share
|
||||
|
As reported
|
$
|
2,289
|
� |
$
|
86�
|
� |
$
|
481�
|
� |
$
|
301�
|
� |
37.4%
|
� |
0.20�
|
|
Constant-yen�(1)
|
� |
37
|
� | � | � | � | � |
31�
|
� | � |
23�
|
� | � | � |
0.02�
|
|
Purchased collars and average forward contracts�(2)
|
� | � | � | � | � | � | � |
(2)
|
� | � |
(10)
|
� | � | � |
(0.01)
|
|
Acquisition-related costs�(3)
|
� | � | � | � | � | � | � |
48�
|
� | � |
40�
|
� | � | � |
0.03�
|
|
Discrete tax items�(4)
|
� | � | � | � | � | � | � | � | � | � |
21�
|
� | � | � |
0.01�
|
|
Asbestos settlement�(5)
|
� | � | � | � | � | � | � |
2�
|
� | � |
1�
|
� | � | � | � |
|
Restructuring, impairment and other charges�(6)
|
� | � | � | � | � | � | � |
17�
|
� | � |
15�
|
� | � | � |
0.01�
|
|
Liquidation of subsidiary�(7)
|
� | � | � | � | � | � | � | � | � | � |
(3)
|
� | � | � | � |
|
Equity in earnings of affiliated companies�(8)
|
� | � | � | � |
(25)
|
� | � |
(25)
|
� | � |
(24)
|
� | � | � |
(0.02)
|
|
Gain on previously held equity investment�(9)
|
� | � | � | � | � | � | � |
(394)
|
� | � |
(292)
|
� | � | � |
(0.20)
|
|
Settlement of pre-existing contract�(9)
|
� | � | � | � | � | � | � |
320�
|
� | � |
320�
|
� | � | � |
0.22�
|
|
Post-combination expenses�(9)
|
� | � | � | � | � | � | � |
72�
|
� | � |
55�
|
� | � | � |
0.04�
|
|
Other items related to the acquisition of Samsung Corning Precision Materials�(9)
|
� | � | � | � | � | � | � |
(24)
|
� | � |
(24)
|
� | � | � |
(0.02)
|
|
Core Performance measures
|
$
|
2,326
|
� |
$
|
61�
|
� |
$
|
526�
|
� |
$
|
423�
|
� |
19.6%
|
� |
0.29�
|
See Reconciliation of Non-GAAP Financial Measures, Items which we exclude from GAAP measures to arrive at Core Performance measures for the descriptions of the footnoted reconciling items.
� 2015 Corning Incorporated. All Rights Reserved.
-3-
�
CORNING INCORPORATED AND SUBSIDIARY COMPANIES
RECONCILIATION OF NON-GAAP FINANCIAL MEASURE TO GAAP FINANCIAL MEASURE
Three Months Ended March 31, 2013
(Unaudited; amounts in millions, except per share amounts)
| � |
Three�months�ended�March�31,�2013
|
||||||||||||||
| � |
Net
sales
|
� |
Equity
earnings
|
� |
Income
before
income
taxes
|
� |
Net
income
|
� |
Effective
tax
rate
|
� |
Per
share
|
||||
|
As reported
|
$
|
1,814�
|
� |
$
|
173�
|
� |
$
|
528�
|
� |
$
|
494�
|
� |
6.4%
|
� |
0.33�
|
|
Constant-yen�(1)
|
� |
(44)
|
� | � |
(25)
|
� | � |
(53)
|
� | � |
(45)
|
� | � | � |
(0.03)
|
|
Purchased collars�(2)
|
� | � | � | � | � | � | � |
(23)
|
� | � |
(16)
|
� | � | � | � |
|
Other yen-related transactions�(2)
|
� | � | � | � | � | � | � |
(19)
|
� | � |
(13)
|
� | � | � |
(0.01)
|
|
Hemlock Semiconductor operating results�(3)
|
� | � | � | � |
5�
|
� | � |
5�
|
� | � |
4�
|
� | � | � | � |
|
Hemlock Semiconductor non-operating results�(3)
|
� | � | � | � |
2�
|
� | � |
2�
|
� | � |
2�
|
� | � | � | � |
|
Acquisition-related costs�(4)
|
� | � | � | � | � | � | � |
18�
|
� | � |
13�
|
� | � | � |
0.01�
|
|
Discrete tax items and other tax-related adjustments (5)
|
� | � | � | � | � | � | � | � | � | � |
(54)
|
� | � | � |
(0.04)
|
|
Litigation, regulatory and other legal matters�(6)
|
� | � | � | � | � | � | � |
2�
|
� | � |
1�
|
� | � | � | � |
|
Core Performance measures
|
$
|
1,770�
|
� |
$
|
155�
|
� |
$
|
460�
|
� |
$
|
386�
|
� |
16.1%
|
� |
0.26�
|
See Reconciliation of Non-GAAP Financial Measures, Items which we exclude from GAAP measures to arrive at Core Performance measures for the descriptions of the footnoted reconciling items.
� 2015 Corning Incorporated. All Rights Reserved.
-4-
�
CORNING INCORPORATED AND SUBSIDIARY COMPANIES
RECONCILIATION OF NON-GAAP FINANCIAL MEASURE TO GAAP FINANCIAL MEASURE
Three Months Ended June 30, 2014
(Unaudited; amounts in millions, except per share amounts)
| � |
Three�months�ended�June�30,�2014
|
|||||||||||||||
| � |
Net
sales
|
� |
Equity
earnings
|
� |
Income
before
income
taxes
|
� |
Net
income
|
� |
Effective
tax
rate
|
� |
Earnings
per
share
|
|||||
|
As reported
|
$
|
2,482
|
� |
$
|
62�
|
� |
$
|
341�
|
� |
$
|
169�
|
� |
50.4%
|
� |
$
|
0.11
|
|
Constant-yen�(1)
|
� |
30
|
� | � | � | � | � |
26�
|
� | � |
19�
|
� | � | � | � |
0.01
|
|
Constant-won�(1)
|
� | � | � | � | � | � | � |
17�
|
� | � |
12�
|
� | � | � | � |
0.01
|
|
Purchased collars and average forward contracts�(2)
|
� | � | � | � | � | � | � |
141�
|
� | � |
82�
|
� | � | � | � |
0.06
|
|
Acquisition-related costs�(4)
|
� | � | � | � | � | � | � |
10�
|
� | � |
7�
|
� | � | � | � | � |
|
Discrete tax items and other tax-related adjustments (5)
|
� | � | � | � | � | � | � | � | � | � |
164�
|
� | � | � | � |
0.11
|
|
Litigation, regulatory and other legal matters�(6)
|
� | � | � | � | � | � | � |
4�
|
� | � |
2�
|
� | � | � | � | � |
|
Restructuring, impairment and other charges�(7)
|
� | � | � | � | � | � | � |
39�
|
� | � |
29�
|
� | � | � | � |
0.02
|
|
Equity in earnings of affiliated companies�(9)
|
� | � | � | � |
(5)
|
� | � |
(5)
|
� | � |
(5)
|
� | � | � | � | � |
|
Other items related to the Acquisition of Samsung Corning Precision Materials�(10)
|
� | � | � | � | � | � | � |
10�
|
� | � |
8�
|
� | � | � | � |
0.01
|
|
Core Performance measures
|
$
|
2,512
|
� |
$
|
57�
|
� |
$
|
583�
|
� |
$
|
487�
|
� |
16.5%
|
� |
$
|
0.34
|
See Reconciliation of Non-GAAP Financial Measures, Items which we exclude from GAAP measures to arrive at Core Performance measures for the descriptions of the footnoted reconciling items.
� 2015 Corning Incorporated. All Rights Reserved.
-5-
�
CORNING INCORPORATED AND SUBSIDIARY COMPANIES
RECONCILIATION OF NON-GAAP FINANCIAL MEASURE TO GAAP FINANCIAL MEASURE
Three Months Ended June 30, 2013
(Unaudited; amounts in millions, except per share amounts)
| � |
Three�months�ended�June�30,�2013
|
|||||||||||||||
| � |
Net
sales
|
� |
Equity
earnings
|
� |
Income
before
income
taxes
|
� |
Net
income
|
� |
Effective
tax
rate
|
� |
Earnings
per
share
|
|||||
|
As reported
|
$
|
1,982�
|
� |
$
|
166�
|
� |
$
|
829�
|
� |
$
|
638�
|
� |
23.0%
|
� |
$
|
0.43�
|
|
Constant-yen�(1)
|
� |
(2)
|
� | � |
(3)
|
� | � |
(4)
|
� | � |
(4)
|
� | � | � | � | � |
|
Purchased collars and average forward contracts�(2)
|
� | � | � | � | � | � | � |
(229)
|
� | � |
(147)
|
� | � | � | � |
(0.10)
|
|
Other yen-related transactions�(2)
|
� | � | � | � | � | � | � |
(27)
|
� | � |
(19)
|
� | � | � | � |
(0.01)
|
|
Hemlock Semiconductor operating results�(3)
|
� | � | � | � |
(12)
|
� | � |
(12)
|
� | � |
(11)
|
� | � | � | � |
(0.01)
|
|
Hemlock Semiconductor�non-operating results�(3)
|
� | � | � | � |
9�
|
� | � |
9�
|
� | � |
9�
|
� | � | � | � |
0.01�
|
|
Acquisition-related costs�(4)
|
� | � | � | � | � | � | � |
8�
|
� | � |
5�
|
� | � | � | � | � |
|
Litigation, regulatory and other legal matters�(6)
|
� | � | � | � | � | � | � |
6�
|
� | � |
4�
|
� | � | � | � | � |
|
Pension mark-to-market adjustment�(11)
|
� | � | � | � | � | � | � |
(41)
|
� | � |
(26)
|
� | � | � | � |
(0.02)
|
|
Gain on change in control of equity investment�(12)
|
� | � | � | � | � | � | � |
(17)
|
� | � |
(11)
|
� | � | � | � |
(0.01)
|
|
Core Performance measures
|
$
|
1,980�
|
� |
$
|
160�
|
� |
$
|
522�
|
� |
$
|
438�
|
� |
16.1%
|
� |
$
|
0.30�
|
See Reconciliation of Non-GAAP Financial Measures, Items which we exclude from GAAP measures to arrive at Core Performance measures for the descriptions of the footnoted reconciling items.
� 2015 Corning Incorporated. All Rights Reserved.
-6-
�
CORNING INCORPORATED AND SUBSIDIARY COMPANIES
RECONCILIATION OF NON-GAAP FINANCIAL MEASURE TO GAAP FINANCIAL MEASURE
Three Months Ended September 30, 2014
(Unaudited; amounts in millions, except per share amounts)
| � |
Three�months�ended�September�30,�2014
|
|||||||||||||||
| � |
Net
sales
|
� |
Equity
earnings
|
� |
Income
before
income
taxes
|
� |
Net
income
|
� |
Effective
tax
rate
|
� |
Earnings
per
share
|
|||||
|
As reported
|
$
|
2,540�
|
� |
$
|
95�
|
� |
$
|
1,409�
|
� |
$
|
1,014�
|
� |
28%
|
� |
$
|
0.72�
|
|
Constant-yen�(1)
|
� |
44�
|
� | � | � | � | � |
36�
|
� | � |
27�
|
� | � | � | � |
0.02�
|
|
Constant-won�(1)
|
� |
(1)
|
� | � | � | � | � |
17�
|
� | � |
12�
|
� | � | � | � |
0.01�
|
|
Purchased collars and average forward contracts�(2)
|
� | � | � | � | � | � | � |
(739)
|
� | � |
(478)
|
� | � | � | � |
(0.34)
|
|
Acquisition-related costs�(4)
|
� | � | � | � | � | � | � |
7�
|
� | � |
5�
|
� | � | � | � | � |
|
Discrete tax items and other tax-related adjustments (5)
|
� | � | � | � | � | � | � | � | � | � |
13�
|
� | � | � | � |
0.01�
|
|
Litigation, regulatory and other legal matters�(6)
|
� | � | � | � | � | � | � |
6�
|
� | � |
4�
|
� | � | � | � | � |
|
Restructuring, impairment and other charges�(7)
|
� | � | � | � | � | � | � |
7�
|
� | � |
7�
|
� | � | � | � | � |
|
Equity in earnings of affiliated companies�(9)
|
� | � | � | � |
(20)
|
� | � |
(20)
|
� | � |
(19)
|
� | � | � | � |
(0.01)
|
|
Contingent consideration fair value adjustment�(10)
|
� | � | � | � | � | � | � |
(77)
|
� | � |
(60)
|
� | � | � | � |
(0.04)
|
|
Other items related to the Acquisition of Samsung Corning Precision Materials�(10)
|
� | � | � | � | � | � | � |
2�
|
� | � |
2�
|
� | � | � | � | � |
|
Core Performance measures
|
$
|
2,583�
|
� |
$
|
75�
|
� |
$
|
648�
|
� |
$
|
527�
|
� |
18.7%
|
� |
$
|
0.37�
|
See Reconciliation of Non-GAAP Financial Measures, Items which we exclude from GAAP measures to arrive at Core Performance measures for the descriptions of the footnoted reconciling items.
� 2015 Corning Incorporated. All Rights Reserved.
-7-
�
CORNING INCORPORATED AND SUBSIDIARY COMPANIES
RECONCILIATION OF NON-GAAP FINANCIAL MEASURE TO GAAP FINANCIAL MEASURE
Three Months Ended September 30, 2013
(Unaudited; amounts in millions, except per share amounts)
| � |
Three�months�ended�September�30,�2013
|
|||||||||||||||
| � |
Net
sales
|
� |
Equity
earnings
|
� |
Income
before
income
taxes
|
� |
Net
income
|
� |
Effective
tax
rate
|
� |
Earnings
per
share
|
|||||
|
As reported
|
$
|
2,067�
|
� |
$
|
138�
|
� |
$
|
549�
|
� |
$
|
408�
|
� |
25.7%
|
� |
$
|
0.28�
|
|
Constant-yen�(1)
|
� |
(1)
|
� | � |
(1)
|
� | � |
(1)
|
� | � |
(1)
|
� | � | � | � |
0.01�
|
|
Purchased collars and average forward contracts�(2)
|
� | � | � | � | � | � | � |
46�
|
� | � |
25�
|
� | � | � | � |
0.02�
|
|
Other yen-related transactions�(2)
|
� | � | � | � | � | � | � |
(25)
|
� | � |
(18)
|
� | � | � | � |
(0.01)
|
|
Hemlock Semiconductor operating results�(3)
|
� | � | � | � |
3�
|
� | � |
3�
|
� | � |
3�
|
� | � | � | � | � |
|
Hemlock Semiconductor�non-operating results�(3)(7)
|
� | � | � | � |
(10)
|
� | � |
(10)
|
� | � |
(9)
|
� | � | � | � |
(0.01)
|
|
Acquisition-related costs�(4)
|
� | � | � | � | � | � | � |
10�
|
� | � |
7�
|
� | � | � | � | � |
|
Discrete tax items and other tax-related adjustments (5)
|
� | � | � | � | � | � | � | � | � | � |
58�
|
� | � | � | � |
0.04�
|
|
Litigation, regulatory and other legal matters�(6)
|
� | � | � | � | � | � | � |
5�
|
� | � |
3�
|
� | � | � | � | � |
|
Equity in earnings of affiliated companies�(9)
|
� | � | � | � |
(22)
|
� | � |
(22)
|
� | � |
(20)
|
� | � | � | � |
(0.02)
|
|
Gain on change in control of equity investment�(12)
|
� | � | � | � | � | � | � | � | � | � |
(1)
|
� | � | � | � | � |
|
Core Performance measures
|
$
|
2,066�
|
� |
$
|
108�
|
� |
$
|
555�
|
� |
$
|
455�
|
� |
18.0%
|
� |
$
|
0.31�
|
See Reconciliation of Non-GAAP Financial Measures, Items which we exclude from GAAP measures to arrive at Core Performance measures for the descriptions of the footnoted reconciling items.
� 2015 Corning Incorporated. All Rights Reserved.
-8-
�
CORNING INCORPORATED AND SUBSIDIARY COMPANIES
RECONCILIATION OF NON-GAAP FINANCIAL MEASURE TO GAAP FINANCIAL MEASURE
Three Months Ended December 31, 2014
(Unaudited; amounts in millions, except per share amounts)
| � |
Net
sales
|
� |
Equity
earnings
|
� |
Income
before
income
taxes
|
� |
Net
income
|
� |
Effective
tax
rate
|
� |
Per
share
|
|||||
| � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � |
|
As reported
|
$
|
2,404
|
� |
$
|
23
|
� |
$
|
1,337�
|
� |
$
|
988�
|
� |
26.1%
|
� |
$
|
0.70�
|
|
Constant-yen�(1)
|
� |
130
|
� | � | � | � | � |
104�
|
� | � |
75�
|
� | � | � | � |
0.06�
|
|
Constant-won (1)
|
� | � | � | � | � | � | � |
3�
|
� | � |
2�
|
� | � | � | � | � |
|
Purchased collars and average forward contracts�(2)
|
� | � | � | � | � | � | � |
(769)
|
� | � |
(510)
|
� | � | � | � |
(0.36)
|
|
Acquisition-related costs�(4)
|
� | � | � | � | � | � | � |
8�
|
� | � |
5�
|
� | � | � | � | � |
|
Discrete tax items and other tax-related adjustments�(5)
|
� | � | � | � | � | � | � | � | � | � |
42�
|
� | � | � | � |
0.03�
|
|
Litigation, regulatory and other legal matters�(6)
|
� | � | � | � | � | � | � |
(13)
|
� | � |
(9)
|
� | � | � | � |
(0.01)
|
|
Restructuring, impairment and other charges�(7)
|
� | � | � | � | � | � | � |
23�
|
� | � |
15�
|
� | � | � | � |
0.01�
|
|
Liquidation of subsidiary�(8)
|
� | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � |
|
Equity in earnings of affiliated companies�(9)
|
� | � | � | � |
93
|
� | � |
93�
|
� | � |
86�
|
� | � | � | � |
0.06�
|
|
Contingent consideration fair value adjustment�(10)
|
� | � | � | � | � | � | � |
(172)
|
� | � |
(134)
|
� | � | � | � |
(0.10)
|
|
Other items related to the Acquisition of Samsung Corning Precision Materials�(10)
|
� | � | � | � | � | � | � |
3�
|
� | � |
3�
|
� | � | � | � | � |
|
Pension mark-to-market adjustment�(11)
|
� | � | � | � | � | � | � |
29�
|
� | � |
24�
|
� | � | � | � |
0.02�
|
| � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � |
|
Core performance measures
|
$
|
2,534
|
� |
$
|
116
|
� |
$
|
646�
|
� |
$
|
587�
|
� |
9.1%
|
� |
$
|
0.42�
|
See Reconciliation of Non-GAAP Financial Measures, Items which we exclude from GAAP measures to arrive at Core Performance measures for the descriptions of the footnoted reconciling items.
� 2015 Corning Incorporated. All Rights Reserved.
-9-
�
CORNING INCORPORATED AND SUBSIDIARY COMPANIES
RECONCILIATION OF NON-GAAP FINANCIAL MEASURE TO GAAP FINANCIAL MEASURE
Three Months Ended December 31, 2013
(Unaudited; amounts in millions, except per share amounts)
| � |
Net
sales
|
� |
Equity
earnings
|
� |
Income
before
income
taxes
|
� |
Net
income
|
� |
Effective
tax
rate
|
� |
Per
share
|
|||||
| � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � |
|
As reported
|
$
|
1,956
|
� |
$
|
70�
|
� |
$
|
567�
|
� |
$
|
421�
|
� |
25.7%
|
� |
$
|
0.30�
|
|
Constant-yen�(1)
|
� |
9
|
� | � |
1�
|
� | � |
7�
|
� | � |
5�
|
� | � | � | � | � |
|
Purchased collars and average rate forwards�(2)
|
� | � | � | � | � | � | � |
(228)
|
� | � |
(149)
|
� | � | � | � |
(0.10)
|
|
Other yen-related transactions�(2)
|
� | � | � | � | � | � | � |
(28)
|
� | � |
(20)
|
� | � | � | � |
(0.01)
|
|
Hemlock Semiconductor�operating results�(3)
|
� | � | � | � |
(27)
|
� | � |
(27)
|
� | � |
(26)
|
� | � | � | � |
(0.02)
|
|
Acquisition-related costs�(4)
|
� | � | � | � | � | � | � |
18�
|
� | � |
15�
|
� | � | � | � |
0.01�
|
|
Discrete tax items and other tax-related adjustments�(5)
|
� | � | � | � | � | � | � | � | � | � |
6�
|
� | � | � | � | � |
|
Litigation, regulatory and other legal matters�(6)
|
� | � | � | � | � | � | � |
6�
|
� | � |
4�
|
� | � | � | � | � |
|
Restructuring, impairment and other charges�(7)
|
� | � | � | � | � | � | � |
67�
|
� | � |
46�
|
� | � | � | � |
0.03�
|
|
Equity in earnings of affiliated companies�(9)
|
� | � | � | � |
64�
|
� | � |
64�
|
� | � |
64�
|
� | � | � | � |
0.04�
|
|
Pension mark-to-market adjustment�(11)
|
� | � | � | � | � | � | � |
11�
|
� | � |
9�
|
� | � | � | � |
0.01�
|
|
Other
|
� | � | � | � | � | � | � |
4�
|
� | � |
2�
|
� | � | � | � | � |
| � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � |
|
Core performance measures
|
$
|
1,965
|
� |
$
|
108�
|
� |
$
|
461�
|
� |
$
|
377�
|
� |
18.2%
|
� |
$
|
0.26�
|
See Reconciliation of Non-GAAP Financial Measures, Items which we exclude from GAAP measures to arrive at Core Performance measures for the descriptions of the footnoted reconciling items.
� 2015 Corning Incorporated. All Rights Reserved.
-10-
�
CORNING INCORPORATED AND SUBSIDIARY COMPANIES
RECONCILIATION OF NON-GAAP FINANCIAL MEASURE TO GAAP FINANCIAL MEASURE
Year Ended December 31, 2014
(Unaudited; amounts in millions, except per share amounts)
| � |
Net
sales
|
� |
Equity
earnings
|
� |
Income
before
income
taxes
|
� |
Net
income
|
� |
Effective
tax
rate
|
� |
Per
share
|
|||||
| � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � |
|
As reported
|
$
|
9,715
|
� |
$
|
266
|
� |
$
|
3,568�
|
� |
$
|
2,472�
|
� |
30.7%
|
� |
$
|
1.73�
|
|
Constant-yen�(1)
|
� |
240
|
� | � |
1
|
� | � |
197�
|
� | � |
144�
|
� | � | � | � |
0.10�
|
|
Constant-won�(1)
|
� | � | � | � | � | � | � |
37�
|
� | � |
26�
|
� | � | � | � |
0.02�
|
|
Purchased collars and average forward contracts�(2)
|
� | � | � | � | � | � | � |
(1,369)
|
� | � |
(916)
|
� | � | � | � |
(0.64)
|
|
Acquisition-related costs�(4)
|
� | � | � | � | � | � | � |
74�
|
� | � |
57�
|
� | � | � | � |
0.04�
|
|
Discrete tax items and other tax-related adjustments�(5)
|
� | � | � | � | � | � | � | � | � | � |
240�
|
� | � | � | � |
0.17�
|
|
Litigation, regulatory and other legal matters�(6)
|
� | � | � | � | � | � | � |
(1)
|
� | � |
(2)
|
� | � | � | � | � |
|
Restructuring, impairment and other charges�(7)
|
� | � | � | � | � | � | � |
86�
|
� | � |
66�
|
� | � | � | � |
0.05�
|
|
Liquidation of subsidiary�(8)
|
� | � | � | � | � | � | � | � | � | � |
(3)
|
� | � | � | � | � |
|
Equity in earnings of affiliated companies�(9)
|
� | � | � | � |
43
|
� | � |
43�
|
� | � |
38�
|
� | � | � | � |
0.03�
|
|
Gain on previously held equity investment�(10)
|
� | � | � | � | � | � | � |
(394)
|
� | � |
(292)
|
� | � | � | � |
(0.20)
|
|
Settlement of pre-existing contract�(10)
|
� | � | � | � | � | � | � |
320�
|
� | � |
320�
|
� | � | � | � |
0.22�
|
|
Contingent consideration fair value adjustment�(10)
|
� | � | � | � | � | � | � |
(249)
|
� | � |
(194)
|
� | � | � | � |
(0.14)
|
|
Post-combination expenses�(10)
|
� | � | � | � | � | � | � |
72�
|
� | � |
55�
|
� | � | � | � |
0.04�
|
|
Other items related to the Acquisition of Samsung Corning Precision Materials�(10)
|
� | � | � | � | � | � | � |
(9)
|
� | � |
(12)
|
� | � | � | � |
(0.01)
|
|
Pension mark-to-market adjustment�(11)
|
� | � | � | � | � | � | � |
29�
|
� | � |
24�
|
� | � | � | � |
0.02�
|
| � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � |
|
Core performance measures
|
$
|
9,955
|
� |
$
|
310
|
� |
$
|
2,404�
|
� |
$
|
2,023�
|
� |
15.8%
|
� |
$
|
1.42�
|
See Reconciliation of Non-GAAP Financial Measures, Items which we exclude from GAAP measures to arrive at Core Performance measures for the descriptions of the footnoted reconciling items.
� 2015 Corning Incorporated. All Rights Reserved.
-11-
�
CORNING INCORPORATED AND SUBSIDIARY COMPANIES
RECONCILIATION OF NON-GAAP FINANCIAL MEASURE TO GAAP FINANCIAL MEASURE
Year Ended December 31, 2013
(Unaudited; amounts in millions, except per share amounts)
| � |
Net
sales
|
� |
Equity
earnings
|
� |
Income
before
income
taxes
|
� |
Net
income
|
� |
Effective
tax
rate
|
� |
Per
share
|
|||||
| � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � |
|
As reported
|
$
|
7,819�
|
� |
$
|
547�
|
� |
$
|
2,473�
|
� |
$
|
1,961�
|
� |
20.7%
|
� |
$
|
1.34�
|
|
Constant-yen�(1)
|
� |
(39)
|
� | � |
(28)�
|
� | � |
(53)
|
� | � |
(45)
|
� | � | � | � |
(0.03)
|
|
Purchased collars and average rate forwards�(2)
|
� | � | � | � | � | � | � |
(435)
|
� | � |
(287)
|
� | � | � | � |
(0.20)
|
|
Other yen-related transactions�(2)
|
� | � | � | � | � | � | � |
(99)
|
� | � |
(69)
|
� | � | � | � |
(0.05)
|
|
Hemlock Semiconductor operating results�(3)
|
� | � | � | � |
(31)
|
� | � |
(31)
|
� | � |
(30)
|
� | � | � | � |
(0.02)
|
|
Hemlock Semiconductor non-operating results�(3)
|
� | � | � | � |
1�
|
� | � |
1�
|
� | � |
1�
|
� | � | � | � | � |
|
Acquisition-related costs�(4)
|
� | � | � | � | � | � | � |
54�
|
� | � |
40�
|
� | � | � | � |
0.03�
|
|
Discrete tax items and other tax-related adjustments�(5)
|
� | � | � | � | � | � | � | � | � | � |
9�
|
� | � | � | � |
0.01�
|
|
Litigation, regulatory and other legal matters�(6)
|
� | � | � | � | � | � | � |
19�
|
� | � |
13�
|
� | � | � | � |
0.01�
|
|
Restructuring, impairment and other charges�(7)
|
� | � | � | � | � | � | � |
67�
|
� | � |
46�
|
� | � | � | � |
0.03�
|
|
Equity in earnings of affiliated companies�(9)
|
� | � | � | � |
42�
|
� | � |
42�
|
� | � |
44�
|
� | � | � | � |
0.02�
|
|
Pension mark-to-market adjustment�(11)
|
� | � | � | � | � | � | � |
(30)
|
� | � |
(17)
|
� | � | � | � |
(0.01)
|
|
Gain on change in control of equity investment�(12)
|
� | � | � | � | � | � | � |
(17)
|
� | � |
(12)
|
� | � | � | � |
(0.01)
|
|
Other
|
� | � | � | � | � | � | � |
4�
|
� | � |
2�
|
� | � | � | � | � |
| � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � |
|
Core performance measures
|
$
|
7,780�
|
� |
$
|
531�
|
� |
$
|
1,995�
|
� |
$
|
1,656�
|
� |
17.0%
|
� |
$
|
1.13�
|
� 2015 Corning Incorporated. All Rights Reserved.
-12-
�
CORNING INCORPORATED AND SUBSIDIARY COMPANIES
RECONCILIATION OF NON-GAAP FINANCIAL MEASURE TO GAAP FINANCIAL MEASURE
Display Technologies Segment
Three Months Ended March 31, 2014 and 2013
(Unaudited; amounts in millions, except percentages)
| � |
Three months�ended
March�31,�2014
|
� |
Three months�ended
March�31,�2013
|
||||||||||||||
| � |
Net
sales
|
� |
Equity
earnings
|
� |
Net
income
|
� |
Net
sales
|
� |
Equity
earnings
|
� |
Net
income
|
||||||
|
�
|
� | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � |
|
As reported�
|
$
|
929
|
� |
$
|
(9)
|
� |
$
|
209�
|
� |
$
|
650�
|
� |
$
|
133�
|
� |
$
|
349�
|
|
Constant-yen�(1)
|
� |
37
|
� | � | � | � | � |
23�
|
� | � |
(44)
|
� | � |
(25)
|
� | � |
(47)
|
|
Other yen-related transaction�(2)
|
� | � | � | � | � | � | � |
(56)
|
� | � | � | � | � | � | � | � |
(13)
|
|
Acquisition-related costs�(4)
|
� | � | � | � | � | � | � |
35�
|
� | � | � | � | � | � | � | � | � |
|
Restructuring, impairment and other charges�(7)
|
� | � | � | � | � | � | � |
3�
|
� | � | � | � | � | � | � | � | � |
|
Equity in earnings of affiliated companies�(9)
|
� | � | � | � |
7�
|
� | � |
6�
|
� | � | � | � | � | � | � | � | � |
|
Other items related to the Acquisition of Samsung Corning Precision Materials�(10)
|
� | � | � | � | � | � | � |
63�
|
� | � | � | � | � | � | � | � | � |
| � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � |
|
Core Performance measures
|
$
|
966
|
� |
$
|
(2)
|
� |
$
|
283�
|
� |
$
|
606�
|
� |
$
|
108�
|
� |
$
|
289�
|
See Reconciliation of Non-GAAP Financial Measures, Items which we exclude from GAAP measures to arrive at Core Performance measures for the descriptions of the footnoted reconciling items.
� 2015 Corning Incorporated. All Rights Reserved.
-13-
�
CORNING INCORPORATED AND SUBSIDIARY COMPANIES
RECONCILIATION OF NON-GAAP FINANCIAL MEASURE TO GAAP FINANCIAL MEASURE
Display Technologies Segment
Three Months Ended June 30, 2014 and 2013
(Unaudited; amounts in millions, except percentages)
| � |
Three months�ended
June�30,�2014
|
� |
Three months�ended
June�30,�2013
|
||||||||||||||
| � |
Net
sales
|
� |
Equity
earnings
|
� |
Net
income
|
� |
Net
sales
|
� |
Equity
earnings
|
� |
Net
income
|
||||||
|
�
|
� | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � |
|
As reported�
|
$
|
987
|
� |
$
|
(4)
|
� |
$
|
282�
|
� |
$
|
631�
|
� |
$
|
108�
|
� |
$
|
337�
|
|
Constant-yen�(1)
|
� |
30
|
� | � | � | � | � |
19�
|
� | � |
(2)
|
� | � |
(3)
|
� | � |
(4)
|
|
Constant-won�(1)
|
� | � | � | � | � | � | � |
11�
|
� | � | � | � | � | � | � | � | � |
|
Purchased collars, average forward contracts and other yen-related transactions�(2)
|
� | � | � | � | � | � | � |
(53)
|
� | � | � | � | � | � | � | � |
(43)
|
|
Acquisition-related costs�(4)
|
� | � | � | � | � | � | � |
2�
|
� | � | � | � | � | � | � | � | � |
|
Discrete tax items and other tax-related adjustments�(5)
|
� | � | � | � | � | � | � |
4�
|
� | � | � | � | � | � | � | � | � |
|
Restructuring, impairment and other charges�(7)
|
� | � | � | � | � | � | � |
27�
|
� | � | � | � | � | � | � | � | � |
|
Other items related to the Acquisition of Samsung Corning Precision Materials�(10)
|
� | � | � | � | � | � | � |
8�
|
� | � | � | � | � | � | � | � | � |
|
Pension mark-to-market adjustment�(11)
|
� | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � |
(9)
|
| � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � |
|
Core Performance measures
|
$
|
1,017
|
� |
$
|
(4)
|
� |
$
|
300�
|
� |
$
|
629�
|
� |
$
|
105�
|
� |
$
|
281�
|
See Reconciliation of Non-GAAP Financial Measures, Items which we exclude from GAAP measures to arrive at Core Performance measures for the descriptions of the footnoted reconciling items.
� 2015 Corning Incorporated. All Rights Reserved.
-14-
�
CORNING INCORPORATED AND SUBSIDIARY COMPANIES
RECONCILIATION OF NON-GAAP FINANCIAL MEASURE TO GAAP FINANCIAL MEASURE
Display Technologies Segment
Three Months Ended September 30, 2014 and 2013
(Unaudited; amounts in millions, except percentages)
| � |
Three months�ended
September�30,�2014
|
� |
Three months�ended
September�30,�2013
|
||||||||||||||
| � |
Net
sales
|
� |
Equity
earnings
|
� |
Net
income
|
� |
Net
sales
|
� |
Equity
earnings
|
� |
Net
income
|
||||||
|
�
|
� | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � |
|
As reported�
|
$
|
1,009
|
� |
$
|
(3)
|
� |
$
|
387�
|
� |
$
|
648�
|
� |
$
|
73�
|
� |
$
|
318�
|
|
Constant-yen�(1)
|
� |
44
|
� | � | � | � | � |
27�
|
� | � |
(1)
|
� | � |
(1)
|
� | � |
(1)
|
|
Constant-won�(1)
|
� | � | � | � | � | � | � |
12�
|
� | � | � | � | � | � | � | � | � |
|
Purchased collars, average forward contracts and other yen-related transactions�(2)
|
� | � | � | � | � | � | � |
(63)
|
� | � | � | � | � | � | � | � |
(45)
|
|
Restructuring, impairment and other charges�(7)
|
� | � | � | � | � | � | � |
1�
|
� | � | � | � | � | � | � | � | � |
|
Contingent consideration fair value adjustment�(10)
|
� | � | � | � | � | � | � |
(60)
|
� | � | � | � | � | � | � | � | � |
| � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � |
|
Core Performance measures
|
$
|
1,053
|
� |
$
|
(3)
|
� |
$
|
304�
|
� |
$
|
647�
|
� |
$
|
72�
|
� |
$
|
272�
|
See Reconciliation of Non-GAAP Financial Measures, Items which we exclude from GAAP measures to arrive at Core Performance measures for the descriptions of the footnoted reconciling items.
� 2015 Corning Incorporated. All Rights Reserved.
-15-
�
CORNING INCORPORATED AND SUBSIDIARY COMPANIES
RECONCILIATION OF NON-GAAP FINANCIAL MEASURE TO GAAP FINANCIAL MEASURE
Display Technologies Segment
Three Months Ended December 31, 2014 and 2013
(Unaudited; amounts in millions, except percentages)
| � |
Three�months�ended�December�31,�2014
|
� |
Three�months�ended�December�31,�2013
|
||||||||||||||
| � |
Net
sales
|
� |
Equity
earnings
|
� |
Net
income
|
� |
Net
sales
|
� |
Equity
earnings
|
� |
Net
income
|
||||||
| � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � |
|
As reported�
|
$
|
926
|
� |
$
|
(4)
|
� |
$
|
491�
|
� |
$
|
616
|
� |
$
|
43
|
� |
$
|
263�
|
|
Constant-yen�(1)
|
� |
129
|
� | � |
1�
|
� | � |
77�
|
� | � |
9
|
� | � |
1
|
� | � |
5�
|
|
Constant-won�(1)
|
� | � | � | � | � | � | � |
2�
|
� | � | � | � | � | � | � | � | � |
|
Purchased collars�(2)
|
� | � | � | � | � | � | � |
(118)
|
� | � | � | � | � | � | � | � |
(37)
|
|
Other yen-related transaction�(2)
|
� | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � |
(19)
|
|
Acquisition related costs�(4)
|
� | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � |
8�
|
|
Discrete tax items�(5)
|
� | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � |
10�
|
|
Restructuring, impairment and other charges�(7)
|
� | � | � | � | � | � | � |
9�
|
� | � | � | � | � | � | � | � |
6�
|
|
Equity in earnings of affiliated companies�(9)
|
� | � | � | � | � | � | � | � | � | � | � | � | � |
28
|
� | � |
28�
|
|
Contingent consideration fair value adjustment�(10)
|
� | � | � | � | � | � | � |
(134)
|
� | � | � | � | � | � | � | � | � |
|
Other items related to the Acquisition of Samsung Corning Precision Materials�(10)
|
� | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � |
|
Pension mark-to-market adjustment�(11)
|
� | � | � | � | � | � | � |
2�
|
� | � | � | � | � | � | � | � |
1�
|
| � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � |
|
Core performance measures
|
$
|
1,055
|
� |
$
|
(3)
|
� |
$
|
329�
|
� |
$
|
625�
|
� |
$
|
72
|
� |
$
|
265�
|
See Reconciliation of Non-GAAP Financial Measures, Items which we exclude from GAAP measures to arrive at Core Performance measures for the descriptions of the footnoted reconciling items.
� 2015 Corning Incorporated. All Rights Reserved.
-16-
�
CORNING INCORPORATED AND SUBSIDIARY COMPANIES
RECONCILIATION OF NON-GAAP FINANCIAL MEASURE TO GAAP FINANCIAL MEASURE
Display Technologies Segment
Years Ended December 31, 2014 and 2013
(Unaudited; amounts in millions, except percentages)
| � |
Year�ended�December�31,�2014
|
� |
Year�ended�December�31,�2013
|
||||||||||||||
| � |
Net
sales
|
� |
Equity
earnings
|
� |
Net
income
|
� |
Net
sales
|
� |
Equity
earnings
|
� |
Net
income
|
||||||
| � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � |
|
As reported�
|
$
|
3,851
|
� |
$
|
(20)
|
� |
$
|
1,369�
|
� |
$
|
2,545�
|
� |
$
|
357�
|
� |
$
|
1,267�
|
|
Constant-yen�(1)
|
� |
240
|
� | � |
1�
|
� | � |
142�
|
� | � |
(38)
|
� | � |
(28)
|
� | � |
(47)
|
|
Constant-won�(1)
|
� | � | � | � | � | � | � |
27�
|
� | � | � | � | � | � | � | � | � |
|
Purchased collars�(2)
|
� | � | � | � | � | � | � |
(290)
|
� | � | � | � | � | � | � | � |
(90)
|
|
Other yen-related transaction�(2)
|
� | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � |
(67)
|
|
Acquisition related costs�(4)
|
� | � | � | � | � | � | � |
37�
|
� | � | � | � | � | � | � | � |
8�
|
|
Discrete tax items�(5)
|
� | � | � | � | � | � | � |
4�
|
� | � | � | � | � | � | � | � |
10�
|
|
Restructuring, impairment and other charges�(7)
|
� | � | � | � | � | � | � |
40�
|
� | � | � | � | � | � | � | � |
6�
|
|
Equity in earnings of affiliated companies�(9)
|
� | � | � | � |
7�
|
� | � |
6�
|
� | � | � | � | � |
28�
|
� | � |
28�
|
|
Contingent consideration fair value adjustment�(10)
|
� | � | � | � | � | � | � |
(194)
|
� | � | � | � | � | � | � | � | � |
|
Other items related to the Acquisition of Samsung Corning Precision Materials�(10)
|
� |
1
|
� | � | � | � | � |
73�
|
� | � | � | � | � | � | � | � | � |
|
Pension mark-to-market adjustment�(11)
|
� | � | � | � | � | � | � |
2�
|
� | � | � | � | � | � | � | � |
(8)
|
| � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � |
|
Core performance measures
|
$
|
4,092
|
� |
$
|
(12)
|
� |
$
|
1,216�
|
� |
$
|
2,507�
|
� |
$
|
357�
|
� |
$
|
1,107�
|
See Reconciliation of Non-GAAP Financial Measures, Items which we exclude from GAAP measures to arrive at Core Performance measures for the descriptions of the footnoted reconciling items.
� 2015 Corning Incorporated. All Rights Reserved.
-17-
�
CORNING INCORPORATED AND SUBSIDIARY COMPANIES
RECONCILIATION OF NON-GAAP FINANCIAL MEASURE TO GAAP FINANCIAL MEASURE
Specialty Materials Segment
Three Months Ended March 31, 2014 and 2013
(Unaudited; amounts in millions, except percentages)
| � |
Three�months�ended
March�31,�2014
|
� |
Three�months�ended
March�31,�2013
|
||||||||
| � |
Net
sales
|
� |
Net
income
|
� |
Net
sales
|
� |
Net
income
|
||||
| � | � | � | � | � | � | � | � | � | � | � | � |
|
As reported
|
$
|
261
|
� |
$
|
31�
|
� |
$
|
258
|
� |
$
|
39
|
|
Constant-yen�(1)
|
� | � | � | � |
(1)
|
� | � | � | � | � |
2
|
|
Other yen-related transactions�(2)
|
� | � | � | � |
3�
|
� | � | � | � | � | � |
|
Acquisition-related costs�(3)
|
� | � | � | � |
(1)
|
� | � | � | � | � | � |
| � | � | � | � | � | � | � | � | � | � | � | � |
|
Core Performance measures
|
$
|
261
|
� |
$
|
32�
|
� |
$
|
258
|
� |
$
|
41
|
See Reconciliation of Non-GAAP Financial Measures, Items which we exclude from GAAP measures to arrive at Core Performance measures for the descriptions of the footnoted reconciling items.
� 2015 Corning Incorporated. All Rights Reserved.
-18-
�
CORNING INCORPORATED AND SUBSIDIARY COMPANIES
RECONCILIATION OF NON-GAAP FINANCIAL MEASURE TO GAAP FINANCIAL MEASURE
Specialty Materials Segment
Three Months Ended June 30, 2014 and 2013
(Unaudited; amounts in millions, except percentages)
| � |
Three�months�ended
June�30,�2014
|
� |
Three�months�ended
June�30,�2013
|
||||||||
| � |
Net
sales
|
� |
Net
income
|
� |
Net
sales
|
� |
Net
income
|
||||
| � | � | � | � | � | � | � | � | � | � | � | � |
|
As reported
|
$
|
298
|
� |
$
|
39�
|
� |
$
|
301
|
� |
$
|
58�
|
|
Constant-yen�(1)
|
� | � | � | � | � | � | � | � | � | � | � |
|
Purchased collars, average forward contracts and other yen-related transactions�(2)
|
� | � | � | � |
3�
|
� | � | � | � | � |
(1)
|
|
Restructuring, impairment and other charges�(7)
|
� | � | � | � |
3�
|
� | � | � | � | � | � |
|
Pension mark-to-market adjustment�(11)
|
� | � | � | � | � | � | � | � | � | � |
(3)
|
| � | � | � | � | � | � | � | � | � | � | � | � |
|
Core Performance measures
|
$
|
298
|
� |
$
|
45�
|
� |
$
|
301
|
� |
$
|
54�
|
See Reconciliation of Non-GAAP Financial Measures, Items which we exclude from GAAP measures to arrive at Core Performance measures for the descriptions of the footnoted reconciling items.
� 2015 Corning Incorporated. All Rights Reserved.
-19-
�
CORNING INCORPORATED AND SUBSIDIARY COMPANIES
RECONCILIATION OF NON-GAAP FINANCIAL MEASURE TO GAAP FINANCIAL MEASURE
Specialty Materials Segment
Three Months Ended September 30, 2014 and 2013
(Unaudited; amounts in millions, except percentages)
| � |
Three�months�ended
September�30,�2014
|
� |
Three�months�ended
September�30,�2013
|
||||||||
| � |
Net
sales
|
� |
Net
income
|
� |
Net
sales
|
� |
Net
income
|
||||
| � | � | � | � | � | � | � | � | � | � | � | � |
|
As reported
|
$
|
327
|
� |
$
|
43�
|
� |
$
|
326
|
� |
$
|
65
|
|
Constant-yen�(1)
|
� | � | � | � |
(1)
|
� | � | � | � | � | � |
|
Purchased collars, average forward contracts and other yen-related transactions�(2)
|
� | � | � | � |
3�
|
� | � | � | � | � | � |
|
Restructuring, impairment and other charges�(7)
|
� | � | � | � |
8�
|
� | � | � | � | � | � |
| � | � | � | � | � | � | � | � | � | � | � | � |
|
Core Performance measures
|
$
|
327
|
� |
$
|
53�
|
� |
$
|
326
|
� |
$
|
65
|
See Reconciliation of Non-GAAP Financial Measures, Items which we exclude from GAAP measures to arrive at Core Performance measures for the descriptions of the footnoted reconciling items.
� 2015 Corning Incorporated. All Rights Reserved.
-20-
�
CORNING INCORPORATED AND SUBSIDIARY COMPANIES
RECONCILIATION OF NON-GAAP FINANCIAL MEASURE TO GAAP FINANCIAL MEASURE
Specialty Materials Segment
Three Months Ended December 31, 2014 and 2013
(Unaudited; amounts in millions, except percentages)
| � |
Three�months�ended
December�31,�2014
|
� |
Three�months�ended
December�31,�2013
|
||||||||
| � |
Net
sales
|
� |
Net
income
|
� |
Net
sales
|
� |
Net
income
|
||||
| � | � | � | � | � | � | � | � | � | � | � | � |
|
As reported�
|
$
|
319
|
� |
$
|
31�
|
� |
$
|
285
|
� |
$
|
25�
|
|
Constant-yen�(1)
|
� | � | � | � |
(1)
|
� | � | � | � | � | � |
|
Other yen-related transactions�(2)
|
� | � | � | � | � | � | � | � | � | � |
(1)
|
|
Purchased collars�(2)
|
� | � | � | � |
5�
|
� | � | � | � | � |
2�
|
|
Acquisition-related costs�(4)
|
� | � | � | � | � | � | � | � | � | � |
1�
|
|
Restructuring, impairment and other charges�(7)
|
� | � | � | � |
1�
|
� | � | � | � | � |
12�
|
|
Pension mark-to-market adjustment�(11)
|
� | � | � | � | � | � | � | � | � | � |
1�
|
| � | � | � | � | � | � | � | � | � | � | � | � |
|
Core performance measures
|
$
|
319
|
� |
$
|
36�
|
� |
$
|
285
|
� |
$
|
40�
|
See Reconciliation of Non-GAAP Financial Measures, Items which we exclude from GAAP measures to arrive at Core Performance measures for the descriptions of the footnoted reconciling items.
� 2015 Corning Incorporated. All Rights Reserved.
-21-
�
�
�
�
CORNING INCORPORATED AND SUBSIDIARY COMPANIES
RECONCILIATION OF NON-GAAP FINANCIAL MEASURE TO GAAP FINANCIAL MEASURE
Specialty Materials Segment
Years Ended December 31, 2014 and 2013
(Unaudited; amounts in millions, except percentages)
| � |
Year�ended
December�31,�2014
|
� |
Year�ended
December�31,�2013
|
||||||||
| � |
Net
sales
|
� |
Net
income
|
� |
Net
sales
|
� |
Net
income
|
||||
| � | � | � | � | � | � | � | � | � | � | � | � |
|
As reported�
|
$
|
1,205
|
� |
$
|
144�
|
� |
$
|
1,170
|
� |
$
|
187�
|
|
Constant-yen�(1)
|
� | � | � | � |
(3)
|
� | � | � | � | � |
2�
|
|
Purchased collars�(2)
|
� | � | � | � |
14�
|
� | � | � | � | � | � |
|
Acquisition-related costs�(4)
|
� | � | � | � |
(1)
|
� | � | � | � | � |
1�
|
|
Restructuring, impairment and other charges�(7)
|
� | � | � | � |
12�
|
� | � | � | � | � |
12�
|
|
Pension mark-to-market adjustment�(11)
|
� | � | � | � | � | � | � | � | � | � |
(2)
|
| � | � | � | � | � | � | � | � | � | � | � | � |
|
Core performance measures
|
$
|
1,205
|
� |
$
|
166�
|
� |
$
|
1,170
|
� |
$
|
200�
|
See Reconciliation of Non-GAAP Financial Measures, Items which we exclude from GAAP measures to arrive at Core Performance measures for the descriptions of the footnoted reconciling items.
� 2015 Corning Incorporated. All Rights Reserved.
-22-
�
CORNING INCORPORATED AND SUBSIDIARY COMPANIES
RECONCILIATION OF NON-GAAP FINANCIAL MEASURE TO GAAP FINANCIAL MEASURE
Three Months and Year Ended December 31, 2014
(Unaudited; amounts in millions)
�
�
�
|
Three months ended December 31, 2014
|
Sales
|
� |
Gross
margin
|
� |
Gross
Margin�%
|
� |
Selling,
general
and
admin.
expenses
|
� |
Research,
development
and
engineering
expenses
|
|||||
|
Core net sales as reported -JPY 93^
|
$
|
2,602�
|
� |
$
|
1,162�
|
� |
44.7%
|
� |
$
|
380
|
� |
$
|
209
|
|
|
Constant yen adjustment to JPY 99
|
� |
(68)
|
� | � |
(54)
|
� | � | � | � | � | � | � | � | |
|
Core net sales - JPY 99*
|
$
|
2,534�
|
� |
$
|
1,108�
|
� |
43.7%
|
� |
$
|
380
|
� |
$
|
209
|
|
|
Year ended December 31, 2014
|
Sales
|
� |
Gross
margin
|
� |
Gross
Margin�%
|
� |
Selling,
general
and
admin.
expenses
|
� |
Research,
development
and
engineering
expenses
|
||||
|
Core net sales as reported -JPY 93^
|
$
|
10,217�
|
� |
$
|
4,571�
|
� |
44.7%
|
� |
$
|
1,349�
|
� |
$
|
812
|
|
Constant yen adjustment to JPY 99
|
� |
(262)
|
� | � |
(219)
|
� | � | � | � |
(1)
|
� | � | � |
|
Core net sales - JPY 99*
|
$
|
9,955�
|
� |
$
|
4,352�
|
� |
43.7%
|
� |
$
|
1,348�
|
� |
$
|
812
|
| � |
Three months�ended�December�31,�2014
|
� |
Year�ended�December�31,�2014
|
||||||||||||||
| � |
Sales
|
Gross
Margin
|
� |
Gross
margin
%
|
� |
Selling,
general
and
admin.
expenses
|
� |
Research,
development
and
engineering
expenses
|
� |
Sales
|
Gross
Margin
|
� |
Gross
margin
%
|
� |
Selling,
general
and
admin.
expenses
|
� |
Research,
development
and
engineering
expenses
|
| � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � |
|
As reported�
|
$2,404
|
$996
|
� |
41.4%
|
� |
$242�
|
� |
$210�
|
� |
$9,715
|
$4,052
|
� |
41.7%
|
� |
$1,211�
|
� |
$815�
|
|
Constant-yen�(1)
|
130
|
108
|
� | � | � | � | � | � | � |
240
|
201
|
� | � | � |
(1)
|
� | � |
|
Constant-won�(1)
|
� |
2
|
� | � | � | � | � | � | � | � |
28
|
� | � | � |
(2)
|
� |
(2)
|
|
Other yen-related transactions�(2)
|
� | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � |
|
Acquisition-related costs�(4)
|
� | � | � | � | � |
16�
|
� | � | � | � |
30
|
� | � | � |
(3)
|
� | � |
|
Litigation, regulatory and other legal matters�(6)
|
� | � | � | � | � |
(22)
|
� | � | � | � | � | � | � | � |
(22)
|
� | � |
|
Restructuring, impairment and other charges�(7)
|
� | � | � | � | � | � | � | � | � | � |
25
|
� | � | � |
16�
|
� | � |
|
Contingent consideration fair value adjustment�(10)
|
� | � | � | � | � |
172�
|
� | � | � | � | � | � | � | � |
249�
|
� | � |
|
Post-combination expenses�(10)
|
� | � | � | � | � | � | � | � | � | � | � | � | � | � |
(72)
|
� | � |
|
Other items related to the Acquisition of Samsung Corning Precision Materials�(10)
|
� | � | � | � | � | � | � | � | � | � |
14
|
� | � | � | � | � | � |
|
Pension mark-to-market adjustment�(11)
|
� |
2
|
� | � | � |
(28)
|
� |
(1)
|
� | � |
2
|
� | � | � |
(28)
|
� |
(1)
|
| � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � |
|
Core performance measures
|
$2,534
|
$1,108
|
� |
43.7%
|
� |
$380�
|
� |
$209�
|
� |
$9,955
|
$4,352
|
� |
43.7%
|
� |
$1,348�
|
� |
$812�
|
See Reconciliation of Non-GAAP Financial Measures, Items which we exclude from GAAP measures to arrive at Core Performance measures for the descriptions of the footnoted reconciling items.
�
� 2015 Corning Incorporated. All Rights Reserved.
-23-
�
CORNING INCORPORATED AND SUBSIDIARY COMPANIES
Use of Non-GAAP Financial Measures
In managing the Company and assessing our financial performance, we supplement certain measures provided by our consolidated financial statements with measures adjusted to exclude certain items, to arrive at Core Performance measures.��We believe reporting Core Performance measures provides investors greater transparency to the information used by our management team to make financial and operational decisions.��Core net sales, Core equity earnings of affiliated companies, Core income before income taxes, Core earnings, Core earnings per share, Core gross margin and Core gross margin percentage and Core selling, general and administrative expenses are adjusted to exclude the impacts of changes in the Japanese yen, the impact of the purchased collars, average forward contracts and other yen-related transactions, acquisition-related costs, the 2013 results of the polysilicon business of our equity affiliate Dow Corning Corporation, discrete tax items, restructuring and restructuring-related charges, certain litigation and regulatory expenses, pension mark-to-market adjustments, and other items which do not reflect on-going operating results of the Company or our equity affiliates.��These measures are not prepared in accordance with U.S. Generally Accepted Accounting Principles (GAAP).��We believe investors should consider these non-GAAP measures in evaluating our results as they are more indicative of our core operating performance and how management evaluates our operational results and trends.��These measures are not, and should not be viewed as a substitute for U.S. GAAP reporting measures.
The following is an explanation of each adjustment that management excluded as part of these non-GAAP financial measures as well as reasons for excluding each item:
Items which we exclude from GAAP measures to arrive at Core Performance measures are as follows:
|
(1)
|
Constant-currency adjustments:
|
| � |
Constant-yen:��Because a significant portion of Cornings LCD glass business revenues and manufacturing costs are denominated in Japanese yen, management believes it is important to understand the impact on core earnings of translating yen into dollars.��Presenting results on a constant-yen basis mitigates the translation impact of the Japanese yen, and allows management to evaluate performance period over period, analyze underlying trends in our businesses, and establish operational goals and forecasts.��We use an internally derived management rate of �99, which is aligned to our yen portfolio of purchased collars, and have recast all periods presented based on this rate in order to effectively remove the impact of changes in the Japanese yen.
|
| � |
Constant-won:��Following the Acquisition of Samsung Corning Precision Materials and because a significant portion of Samsung Corning Precision Materials(now Corning Precision Materials) costs are denominated in Korean won, management believes it is important to understand the impact on core earnings from translating won into dollars.��Presenting results on a constant-won basis mitigates the translation impact of the Korean won, and allows management to evaluate performance period over period, analyze underlying trends in our businesses, and establish operational goals and forecasts without the variability caused by the fluctuations caused by changes in the rate of this currency.��We use an internally derived management rate of 1,100, which is consistent with historical prior period averages of the won.��We have not recast prior periods presented as the impact is not material to Corning in those periods.
|
|
(2)
|
Purchased and zero cost collars, average forward contracts and other yen-related transactions:��We have excluded the impact of our yen-denominated purchased collars, average forward contracts, and other yen-related transactions for each period presented.��Additionally, we are also excluding the impact of our portfolio of Korean won-denominated zero cost collars which we entered into in the second quarter of 2014.��By aligning an internally derived rate with our portfolio of purchased collars and average forward contracts, and excluding other yen-related transactions and the constant-currency adjustments, we have materially mitigated the impact of changes in the Japanese yen and Korean won.
|
|
(3)
|
Results of Dow Cornings consolidated subsidiary, Hemlock Semiconductor: In 2013, we excluded the results of Dow Cornings consolidated subsidiary, Hemlock Semiconductor, a producer of polycrystalline silicon, to remove the operating and non-operating items and events which have caused severe unpredictability and instability in earnings beginning in 2012.��These events were primarily driven by the macro-economic environment.��Specifically, the negative impact of the determination by the Chinese Ministry of Commerce ( MOFCOM ), which imposes provisional anti-dumping duties on solar-grade polysilicon imports from the United States, and the impact of asset write-offs, offset by the benefit of large payments required under Hemlock Semiconductor customers take-or-pay contracts, are events that are unrelated to Dow Cornings core operations, and that have, or could have, significant impacts to this business.��Beginning in 2014, due to the stabilization of the polycrystalline silicon industry, we will no longer exclude the operating results of Hemlock Semiconductor from core performance measures.
|
|
(4)
|
Acquisition-related costs:��These expenses include intangible amortization, inventory valuation adjustments and external acquisition-related deal costs.
|
|
(5)
|
Discrete tax items and other tax-related adjustments:��This represents the removal of discrete adjustments attributable to changes in tax law and changes in judgment about the realizability of certain deferred tax assets, as well as other non-operational tax-related adjustments, including an out of period adjustment in 2014.��This item also includes the income tax effects of adjusting from GAAP earnings to core earnings.
|
|
(6)
|
Litigation, regulatory and other legal matters:��Includes amounts related to the Pittsburgh Corning Corporation (PCC) asbestos litigation, adjustments to our estimated liability for environmental-related items and the settlement of litigation related to a small acquisition.
|
�
� 2015 Corning Incorporated. All Rights Reserved.
-24-
�
|
(7)
|
Restructuring, impairment and other charges.��This amount includes restructuring, impairment and other charges, as well as other expenses and disposal costs not classified as restructuring expense.
|
|
(8)
|
Liquidation of subsidiary:��The partial impact of non-restructuring related items due to the decision to liquidate a consolidated subsidiary that is not significant.
|
|
(9)
|
Equity in earnings of affiliated companies:��These adjustments relate to items which do not reflect expected on-going operating results of our affiliated companies, such as restructuring, impairment and other charges and settlements under take-or-pay contracts.
|
|
(10)
|
Impacts from the Acquisition of Samsung Corning Precision Materials: Pre-acquisition gains and losses on previously held equity investment and other gains and losses related to the Acquisition, including post-combination expenses, fair value adjustments to the indemnity asset related to contingent consideration and the impact of the withholding tax on a dividend from Samsung Corning Precision Materials.
|
|
(11)
|
Pension mark-to-market adjustment:��Mark-to-market pension gains and losses, which arise from changes in actuarial assumptions and the difference between actual and expected returns on plan assets and discount rates.��In accordance with GAAP, Corning recognizes pension actuarial gains and losses outside of the corridor, where the corridor is equal to 10% of the greater of the benefit obligation or the market-related value of plan assets at the beginning of the year, for our defined benefit pension plans annually in the fourth quarter of each year and whenever a plan is remeasured or valuation estimates are finalized.��Actuarial gains and losses occur when actual experience differs from the estimates used to allocate the change in value of pension plans to expense throughout the year or when assumptions change, as they may each year.��Significant factors that can contribute to the recognition of actuarial gains and losses include changes in discount rates, differences between actual and expected returns on plan assets, and other changes in actuarial assumptions such as life expectancy of plan participants.��Management believes that pension actuarial gains and losses are primarily financing activities that are more reflective of changes in current conditions in global financial markets, and are not directly related to the underlying performance of our businesses.
|
|
(12)
|
Gain on change in control of equity investment:��Gain as a result of certain changes to the shareholder agreement of an equity company, resulting in Corning having a controlling interest that requires consolidation of this investment.
|
|
(13)
|
Loss on repurchase of debt:��In 2012, Corning recorded a loss on the repurchase of $13 million of our 8.875% senior unsecured notes due 2021, $11 million of our 8.875% senior unsecured notes due 2016, and $51 million of our 6.75% senior unsecured notes due 2013.
|
|
(14)
|
Accumulated other comprehensive income:��In 2012, Corning recorded a translation capital gain on the liquidation of a foreign subsidiary.
|
� 2015 Corning Incorporated. All Rights Reserved.
-25-
�
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