CORNING INC /NY - FORM 8-K - EX-99 - January 30, 2018

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8-K - 8-K - CORNING INC /NYglw-20180130x8k.htm

EXHIBIT 99

SUMMARY OF CHANGES IN CORE PERFORMANCE MEASURES



 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

Three months ended March 31, 2017

Corning

 

Display

 

Specialty



Incorporated

 

Technologies

 

Materials

Core net sales as reported @ ¥99 and ₩1,100

$

 2,485 

 

$

 846 

 

$

 300 

Constant yen adjustment to ¥107

 

 (64)

 

 

 (64)

 

 

 

Constant won adjustment to ₩1,175

 

 

 

 

 

 

 

 

Core net sales @ ¥107 and ₩1,175

$

 2,421 

 

$

 782 

 

$

 300 



 

 

 

 

 

 

 

 

Core earnings as reported @ ¥99 and ₩1,100

$

 407 

 

$

 256 

 

$

 48 

Constant yen adjustment to ¥107

 

 (40)

 

 

 (38)

 

 

 

Constant won adjustment to ₩1,175

 

 9 

 

 

 8 

 

 

 

Core earnings @ ¥107 and ₩1,175

$

 376 

 

$

 226 

 

$

 48 



 

 

 

 

 

 

 

 

Three months ended June 30, 2017

Corning

 

Display

 

Specialty



Incorporated

 

Technologies

 

Materials

Core net sales as reported @ ¥99 and ₩1,100

$

 2,590 

 

$

 841 

 

$

 337 

Constant yen adjustment to ¥107

 

 (63)

 

 

 (64)

 

 

 

Constant won adjustment to ₩1,175

 

 

 

 

 

 

 

 

Core net sales @ ¥107 and ₩1,175

$

 2,527 

 

$

 777 

 

$

 337 



 

 

 

 

 

 

 

 

Core earnings as reported @ ¥99 and ₩1,100

$

 431 

 

$

 240 

 

$

 58 

Constant yen adjustment to ¥107

 

 (40)

 

 

 (40)

 

 

 

Constant won adjustment to ₩1,175

 

 9 

 

 

 8 

 

 

 1 

Core earnings @ ¥107 and ₩1,175

$

 400 

 

$

 208 

 

$

 59 



 

 

 

 

 

 

 

 

Three months ended September 30, 2017

Corning

 

Display

 

Specialty



Incorporated

 

Technologies

 

Materials

Core net sales as reported @ ¥99 and ₩1,100

$

 2,700 

 

$

 860 

 

$

 373 

Constant yen adjustment to ¥107

 

 (65)

 

 

 (65)

 

 

 

Constant won adjustment to ₩1,175

 

 

 

 

 

 

 

 

Core net sales @ ¥107 and ₩1,175

$

 2,635 

 

$

 795 

 

$

 373 



 

 

 

 

 

 

 

 

Core earnings as reported @ ¥99 and ₩1,100

$

 433 

 

$

 227 

 

$

 71 

Constant yen adjustment to ¥107

 

 (40)

 

 

 (40)

 

 

 

Constant won adjustment to ₩1,175

 

 10 

 

 

 8 

 

 

 2 

Core earnings @ ¥107 and ₩1,175

$

 403 

 

$

 195 

 

$

 73 



 

 

 

 

 

 

 

 

Three months ended December 31, 2017

Corning

 

Display

 

Specialty



Incorporated

 

Technologies

 

Materials

Core net sales as reported @ ¥99 and ₩1,100

$

 2,739 

 

$

 847 

 

$

 393 

Constant yen adjustment to ¥107

 

 (63)

 

 

 (63)

 

 

 

Constant won adjustment to ₩1,175

 

 (1)

 

 

 (1)

 

 

 

Core net sales @ ¥107 and ₩1,175

$

 2,675 

 

$

 783 

 

$

 393 



 

 

 

 

 

 

 

 

Core earnings as reported @ ¥99 and ₩1,100

$

 485 

 

$

 221 

 

$

 73 

Constant yen adjustment to ¥107

 

 (40)

 

 

 (39)

 

 

 

Constant won adjustment to ₩1,175

 

 10 

 

 

 9 

 

 

 1 

Core earnings @ ¥107 and ₩1,175

$

 455 

 

$

 191 

 

$

 74 



 

 

 

 

 

 

 

 

Year ended December 31, 2017

Corning

 

Display

 

Specialty



Incorporated

 

Technologies

 

Materials

Core net sales as reported @ ¥99 and ₩1,100

$

 10,514 

 

$

 3,394 

 

$

 1,403 

Constant yen adjustment to ¥107

 

 (255)

 

 

 (256)

 

 

 -

Constant won adjustment to ₩1,175

 

 (1)

 

 

 (1)

 

 

 -

Core net sales @ ¥107 and ₩1,175

$

 10,258 

 

$

 3,137 

 

$

 1,403 



 

 

 

 

 

 

 

 

Core earnings as reported @ ¥99 and ₩1,100

$

 1,756 

 

$

 944 

 

$

 250 

Constant yen adjustment to ¥107

 

 (160)

 

 

 (157)

 

 

 -

Constant won adjustment to ₩1,175

 

 38 

 

 

 33 

 

 

 4 

Core earnings @ ¥107 and ₩1,175

$

 1,634 

 

$

 820 

 

$

 254 









© 2018 Corning Incorporated. All Rights Reserved.


-1-

 

 





 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

Three months ended March 31, 2016

Corning

 

Display

 

Specialty



Incorporated

 

Technologies

 

Materials

Core net sales as reported @ ¥99 and ₩1,100

$

 2,171 

 

$

 829 

 

$

 227 

Constant yen adjustment to ¥107

 

 (63)

 

 

 (63)

 

 

 

Constant won adjustment to ₩1,175

 

 

 

 

 

 

 

 

Core net sales @ ¥107 and ₩1,175

$

 2,108 

 

$

 766 

 

$

 227 



 

 

 

 

 

 

 

 

Core earnings as reported @ ¥99 and ₩1,100

$

 340 

 

$

 223 

 

$

 32 

Constant yen adjustment to ¥107

 

 (41)

 

 

 (39)

 

 

 1 

Constant won adjustment to ₩1,175

 

 11 

 

 

 9 

 

 

 2 

Core earnings @ ¥107 and ₩1,175

$

 310 

 

$

 193 

 

$

 35 



 

 

 

 

 

 

 

 

Three months ended June 30, 2016

Corning

 

Display

 

Specialty



Incorporated

 

Technologies

 

Materials

Core net sales as reported @ ¥99 and ₩1,100

$

 2,440 

 

$

 880 

 

$

 266 

Constant yen adjustment to ¥107

 

 (67)

 

 

 (67)

 

 

 

Constant won adjustment to ₩1,175

 

 

 

 

 

 

 

 

Core net sales @ ¥107 and ₩1,175

$

 2,373 

 

$

 813 

 

$

 266 



 

 

 

 

 

 

 

 

Core earnings as reported @ ¥99 and ₩1,100

$

 434 

 

$

 237 

 

$

 48 

Constant yen adjustment to ¥107

 

 (41)

 

 

 (41)

 

 

 

Constant won adjustment to ₩1,175

 

 11 

 

 

 10 

 

 

 1 

Core earnings @ ¥107 and ₩1,175

$

 404 

 

$

 206 

 

$

 49 



 

 

 

 

 

 

 

 

Three months ended September 30, 2016

Corning

 

Display

 

Specialty



Incorporated

 

Technologies

 

Materials

Core net sales as reported @ ¥99 and ₩1,100

$

 2,548 

 

$

 943 

 

$

 295 

Constant yen adjustment to ¥107

 

 (71)

 

 

 (70)

 

 

 

Constant won adjustment to ₩1,175

 

 (1)

 

 

 (1)

 

 

 

Core net sales @ ¥107 and ₩1,175

$

 2,476 

 

$

 872 

 

$

 295 



 

 

 

 

 

 

 

 

Core earnings as reported @ ¥99 and ₩1,100

$

 466 

 

$

 270 

 

$

 44 

Constant yen adjustment to ¥107

 

 (43)

 

 

 (43)

 

 

 

Constant won adjustment to ₩1,175

 

 10 

 

 

 9 

 

 

 1 

Core earnings @ ¥107 and ₩1,175

$

 433 

 

$

 236 

 

$

 45 



 

 

 

 

 

 

 

 

Three months ended December 31, 2016

Corning

 

Display

 

Specialty



Incorporated

 

Technologies

 

Materials

Core net sales as reported @ ¥99 and ₩1,100

$

 2,551 

 

$

 904 

 

$

 336 

Constant yen adjustment to ¥107

 

 (68)

 

 

 (67)

 

 

 

Constant won adjustment to ₩1,175

 

 

 

 

 

 

 

 

Core net sales @ ¥107 and ₩1,175

$

 2,483 

 

$

 837 

 

$

 336 



 

 

 

 

 

 

 

 

Core earnings as reported @ ¥99 and ₩1,100

$

 534 

 

$

 276 

 

$

 65 

Constant yen adjustment to ¥107

 

 (40)

 

 

 (41)

 

 

 

Constant won adjustment to ₩1,175

 

 10 

 

 

 9 

 

 

 2 

Core earnings @ ¥107 and ₩1,175

$

 504 

 

$

 244 

 

$

 67 



 

 

 

 

 

 

 

 

Year ended December 31, 2016

Corning

 

Display

 

Specialty



Incorporated

 

Technologies

 

Materials

Core net sales as reported @ ¥99 and ₩1,100

$

 9,710 

 

$

 3,556 

 

$

 1,124 

Constant yen adjustment to ¥107

 

 (269)

 

 

 (267)

 

 

 -

Constant won adjustment to ₩1,175

 

 (1)

 

 

 (1)

 

 

 -

Core net sales @ ¥107 and ₩1,175

$

 9,440 

 

$

 3,288 

 

$

 1,124 



 

 

 

 

 

 

 

 

Core earnings as reported @ ¥99 and ₩1,100

$

 1,774 

 

$

 1,006 

 

$

 189 

Constant yen adjustment to ¥107

 

 (165)

 

 

 (164)

 

 

 1 

Constant won adjustment to ₩1,175

 

 42 

 

 

 37 

 

 

 6 

Core earnings @ ¥107 and ₩1,175

$

 1,651 

 

$

 879 

 

$

 196 

© 2018 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, 2017

(Unaudited; amounts in millions, except per share amounts)







 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

Income

 

 

 

 

Effective

 

 

 



 

 

 

 

 

 

 

before

 

 

 

 

tax

 

 

 



 

Net

 

Equity

 

income

 

Net

 

(benefit)

 

Per



 

sales

 

earnings

 

taxes

 

income

 

rate (a)

 

share



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As reported

 

$

 2,375 

 

$

 80 

 

$

 20 

 

$

 86 

 

 (330%)

 

$

 0.07 

Constant-yen (1)

 

 

 46 

 

 

 

 

 

 46 

 

 

 34 

 

 

 

 

 0.03 

Constant-won (1)

 

 

 

 

 

 

 

 

 4 

 

 

 3 

 

 

 

 

 

Translated earnings contract gain (3)

 

 

 

 

 

 

 

 

 442 

 

 

 278 

 

 

 

 

 0.26 

Acquisition-related costs (4)

 

 

 

 

 

 

 

 

 22 

 

 

 15 

 

 

 

 

 0.01 

Discrete tax items and other 
tax-related adjustments (5)

 

 

 

 

 

 

 

 

 

 

 

 9 

 

 

 

 

 0.01 

Litigation, regulatory and other legal matters (6)

 

 

 

 

 

 

 

 

 (12)

 

 

 (9)

 

 

 

 

 (0.01)

Restructuring, impairment and other charges (7)

 

 

 

 

 

 

 

 

 10 

 

 

 8 

 

 

 

 

 0.01 

Equity in earnings of affiliated companies (8)

 

 

 

 

 

 (72)

 

 

 (72)

 

 

 (46)

 

 

 

 

 (0.04)

Adjustments related to acquisitions (9)

 

 

 

 

 

 

 

 

 (3)

 

 

 (2)

 

 —

 

 

 

Core performance measures

 

$

 2,421 

 

$

 8 

 

$

 457 

 

$

 376 

 

 17.7% 

 

$

 0.36 



(a)Based upon statutory tax rates in the specific jurisdiction for each event.



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.

© 2018 Corning Incorporated. All Rights Reserved.


-3-

 

 

CORNING INCORPORATED AND SUBSIDIARY COMPANIES

RECONCILIATION OF NON-GAAP FINANCIAL MEASURE TO GAAP FINANCIAL MEASURE

Three Months Ended June 30, 2017

(Unaudited; amounts in millions, except per share amounts)







 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

Income

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

before

 

 

 

 

Effective

 

 

 



 

Net

 

Equity

 

income

 

Net

 

tax

 

Per



 

sales

 

earnings

 

taxes

 

income

 

rate (a)

 

share



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As reported

 

$

 2,497 

 

$

 37 

 

$

 592 

 

$

 439 

 

 25.8% 

 

$

 0.42 

Constant-yen (1)

 

 

 30 

 

 

 1 

 

 

 32 

 

 

 24 

 

 

 

 

 0.02 

Constant-won (1)

 

 

 

 

 

 

 

 

 8 

 

 

 5 

 

 

 

 

 

Translated earnings contract gain (3)

 

 

 

 

 

 

 

 

 (216)

 

 

 (136)

 

 

 

 

 (0.13)

Acquisition-related costs (4)

 

 

 

 

 

 

 

 

 17 

 

 

 12 

 

 

 

 

 0.01 

Discrete tax items and other 
tax-related adjustments (5)

 

 

 

 

 

 

 

 

 

 

 

 21 

 

 

 

 

 0.02 

Restructuring, impairment and other charges (7)

 

 

 

 

 

 

 

 

 40 

 

 

 27 

 

 

 

 

 0.03 

Adjustments related to acquisitions (9)

 

 

 

 

 

 

 

 

 (2)

 

 

 (1)

 

 —

 

 

 

Pension mark-to-market adjustment (10)

 

 

 

 

 

 

 

 

 15 

 

 

 9 

 

 

 

 

 0.01 

Core performance measures

 

$

 2,527 

 

$

 38 

 

$

 486 

 

$

 400 

 

 17.7% 

 

$

 0.39 



(a)Based upon statutory tax rates in the specific jurisdiction for each event.



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.



© 2018 Corning Incorporated. All Rights Reserved.


-4-

 

 

CORNING INCORPORATED AND SUBSIDIARY COMPANIES

RECONCILIATION OF NON-GAAP FINANCIAL MEASURE TO GAAP FINANCIAL MEASURE

Three Months Ended September 30, 2017

(Unaudited; amounts in millions, except per share amounts)







 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

Income

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

before

 

 

 

 

Effective

 

 

 



 

Net

 

Equity

 

income

 

Net

 

tax

 

Per



 

sales

 

earnings

 

taxes

 

income

 

rate (a)

 

share



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As reported

 

$

 2,607 

 

$

 31 

 

$

 479 

 

$

 390 

 

 18.6% 

 

$

 0.39 

Constant-yen (1)

 

 

 28 

 

 

 1 

 

 

 27 

 

 

 22 

 

 

 

 

 0.02 

Constant-won (1)

 

 

 

 

 

 

 

 

 7 

 

 

 6 

 

 

 

 

 0.01 

Translation gain on Japanese yen-denominated debt (2)

 

 

 

 

 

 

 

 

 (14)

 

 

 (9)

 

 

 

 

 (0.01)

Translated earnings contract gain (3)

 

 

 

 

 

 

 

 

 (28)

 

 

 (18)

 

 

 

 

 (0.02)

Acquisition-related costs (4)

 

 

 

 

 

 

 

 

 21 

 

 

 14 

 

 

 

 

 0.01 

Discrete tax items and other 
tax-related adjustments (5)

 

 

 

 

 

 

 

 

 

 

 

 (2)

 

 

 

 

 

Core performance measures

 

$

 2,635 

 

$

 32 

 

$

 492 

 

$

 403 

 

 18.1% 

 

$

 0.40 



(a)Based upon statutory tax rates in the specific jurisdiction for each event.



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.





© 2018 Corning Incorporated. All Rights Reserved.


-5-

 

 

CORNING INCORPORATED AND SUBSIDIARY COMPANIES

RECONCILIATION OF NON-GAAP FINANCIAL MEASURE TO GAAP FINANCIAL MEASURE

Three Months Ended December 31, 2017

(Unaudited; amounts in millions, except per share amounts)







 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

Income

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

before

 

 

 

 

Effective

 

 

 



 

Net

 

Equity

 

income

 

Net

 

tax

 

Per



 

sales

 

earnings

 

taxes

 

income

 

rate (a)

 

share



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As reported

 

$

 2,637 

 

$

 213 

 

$

 566 

 

$

 (1,412)

 

 349.5% 

 

$

 (1.66)

Constant-yen (1)

 

 

 40 

 

 

 1 

 

 

 36 

 

 

 35 

 

 

 

 

 0.04 

Constant-won (1)

 

 

 (2)

 

 

 1 

 

 

 12 

 

 

 9 

 

 

 

 

 0.01 

Translated earnings contract gain (3)

 

 

 

 

 

 

 

 

 (72)

 

 

 (46)

 

 

 

 

 (0.05)

Acquisition-related costs (4)

 

 

 

 

 

 

 

 

 24 

 

 

 18 

 

 

 

 

 0.02 

Discrete tax items and other 
tax-related adjustments (5)

 

 

 

 

 

 

 

 

 

 

 

 99 

 

 

 

 

 0.11 

Restructuring, impairment and 
other charges (7)

 

 

 

 

 

 

 

 

 22 

 

 

 27 

 

 

 

 

 0.03 

Equity in earnings of affiliated companies (8)

 

 

 

 

 

 (80)

 

 

 (80)

 

 

 (51)

 

 

 

 

 (0.06)

Adjustments related to acquisitions (9)

 

 

 

 

 

 

 

 

 15 

 

 

 16 

 

 

 

 

 0.02 

Pension mark-to-market adjustment (10)

 

 

 

 

 

 

 

 

 7 

 

 

 5 

 

 

 

 

 0.01 

Adjustments resulting from the Tax Cuts 
 and Job Act (13)

 

 

 

 

 

 

 

 

 

 

 

 1,755 

 

 

 

 

 2.03 

Core performance measures

 

$

 2,675 

 

$

 135 

 

$

 530 

 

$

 455 

 

 14.2% 

 

$

 0.46 



(a)Based upon statutory tax rates in the specific jurisdiction for each event.



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.



© 2018 Corning Incorporated. All Rights Reserved.


-6-

 

 

CORNING INCORPORATED AND SUBSIDIARY COMPANIES

RECONCILIATION OF NON-GAAP FINANCIAL MEASURE TO GAAP FINANCIAL MEASURE

Year Ended December 31, 2017

(Unaudited; amounts in millions, except per share amounts)







 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



Year ended December 31, 2017



Net
Sales

 

Equity
earnings

 

Income
before
income
taxes

 

Net
income

 

Effective
tax
rate (a)

 

Earnings
per
share



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As reported

$

 10,116 

 

 

 361 

 

 

 1,657 

 

 

 (497)

 

130.0%

 

 

 (0.66)

Constant-yen (1)

 

 144 

 

 

 2 

 

 

 139 

 

 

 115 

 

 

 

 

 0.13 

Constant-won (1)

 

 (2)

 

 

 

 

 

 29 

 

 

 23 

 

 

 

 

 0.03 

Translation gain on Japanese yen-denominated debt (2)

 

 

 

 

 

 

 

 (14)

 

 

 (9)

 

 

 

 

 (0.01)

Translated earnings contract loss (3)

 

 

 

 

 

 

 

 125 

 

 

 78 

 

 

 

 

 0.09 

Acquisition-related costs (4)

 

 

 

 

 

 

 

 84 

 

 

 59 

 

 

 

 

 0.07 

Discrete tax items and other 
tax-related adjustments (5)

 

 

 

 

 

 

 

 

 

 

 127 

 

 

 

 

 0.14 

Litigation, regulatory and other legal matters (6)

 

 

 

 

 

 

 

 (12)

 

 

 (9)

 

 

 

 

 (0.01)

Restructuring, impairment and other charges (7)

 

 

 

 

 

 

 

 72 

 

 

 62 

 

 

 

 

 0.07 

Equity in earnings of affiliated companies (8)

 

 

 

 

 (152)

 

 

 (152)

 

 

 (97)

 

 

 

 

 (0.11)

Adjustments related to acquisitions (9)

 

 

 

 

 

 

 

 10 

 

 

 13 

 

 

 

 

 0.01 

Pension mark-to-market adjustment (10)

 

 

 

 

 

 

 

 22 

 

 

 14 

 

 

 

 

 0.02 

Adjustments resulting from the Tax Cuts
  and Job Act (13)

 

 

 

 

 

 

 

 

 

 

 1,755 

 

 

 

 

 1.96 

Core performance measures

$

 10,258 

 

$

 211 

 

$

 1,960 

 

$

 1,634 

 

16.6%

 

$

 1.60 



(a)Based upon statutory tax rates in the specific jurisdiction for each event.



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.







© 2018 Corning Incorporated. All Rights Reserved.


-7-

 

 





CORNING INCORPORATED AND SUBSIDIARY COMPANIES

RECONCILIATION OF NON-GAAP FINANCIAL MEASURE TO GAAP FINANCIAL MEASURE

Three Months Ended March 31, 2016

(Unaudited; amounts in millions, except per share amounts)







 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

(Loss)

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

income

 

 

 

 

Effective

 

 

 



 

 

 

 

 

 

 

before

 

 

 

 

tax

 

 

 



 

Net

 

Equity

 

income

 

Net (loss)

 

(benefit)

 

Per



 

sales

 

earnings

 

taxes

 

income

 

rate (a)

 

share



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As reported

 

$

 2,047 

 

$

 59 

 

$

 (672)

 

$

 (368)

 

 (45.2%)

 

$

 (0.36)

Constant-yen (1)

 

 

 61 

 

 

 1 

 

 

 57 

 

 

 37 

 

 

 

 

 0.03 

Constant-won (1)

 

 

 

 

 

 

 

 

 (5)

 

 

 (3)

 

 

 

 

 (0.00)

Translated earnings contract loss (3)

 

 

 

 

 

 

 

 

 857 

 

 

 540 

 

 

 

 

 0.49 

Acquisition-related costs (4)

 

 

 

 

 

 

 

 

 14 

 

 

 10 

 

 

 

 

 0.01 

Discrete tax items and other 
tax-related adjustments (5)

 

 

 

 

 

 

 

 

 

 

 

 22 

 

 

 

 

 0.02 

Restructuring, impairment and other charges (7)

 

 

 

 

 

 

 

 

 109 

 

 

 75 

 

 

 

 

 0.07 

Equity in earnings of affiliated companies (8)

 

 

 

 

 

 2 

 

 

 2 

 

 

 2 

 

 

 

 

 

Adjustments related to acquisitions (9)

 

 

 

 

 

 

 

 

 (11)

 

 

 (9)

 

 

 

 

 (0.01)

Pension mark-to-market adjustment (10)

 

 

 

 

 

 

 

 

 7 

 

 

 4 

 

 

 

 

 

Core performance measures

 

$

 2,108 

 

$

 62 

 

$

 358 

 

$

 310 

 

 13.4% 

 

$

 0.25 



(a)Based upon statutory tax rates in the specific jurisdiction for each event.



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.



© 2018 Corning Incorporated. All Rights Reserved.


-8-

 

 

CORNING INCORPORATED AND SUBSIDIARY COMPANIES

RECONCILIATION OF NON-GAAP FINANCIAL MEASURE TO GAAP FINANCIAL MEASURE

Three Months Ended June 30, 2016

(Unaudited; amounts in millions, except per share amounts)









 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

Income

 

 

 

 

Effective

 

 

 



 

 

 

 

 

 

 

before

 

 

 

 

tax

 

 

 



 

Net

 

Equity

 

income

 

Net

 

(benefit)

 

Per



 

sales

 

earnings

 

taxes

 

income

 

rate (a)

 

share



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As reported

 

$

 2,360 

 

$

 41 

 

$

 1,703 

 

$

 2,207 

 

 (29.6%)

 

$

 1.87 

Constant-yen (1)

 

 

 13 

 

 

 

 

 

 75 

 

 

 15 

 

 

 

 

 0.01 

Constant-won (1)

 

 

 

 

 

 

 

 

 (12)

 

 

 2 

 

 

 

 

 

Translated earnings contract loss (3)

 

 

 

 

 

 

 

 

 1,201 

 

 

 758 

 

 

 

 

 0.64 

Acquisition-related costs (4)

 

 

 

 

 

 

 

 

 80 

 

 

 74 

 

 

 

 

 0.06 

Discrete tax items and other 
tax-related adjustments (5)

 

 

 

 

 

 

 

 

 

 

 

 (111)

 

 

 

 

 (0.09)

Litigation, regulatory and other legal matters (6)

 

 

 

 

 

 

 

 

 55 

 

 

 70 

 

 

 

 

 0.06 

Restructuring, impairment and other charges (7)

 

 

 

 

 

 

 

 

 11 

 

 

 7 

 

 

 

 

 0.01 

Equity in earnings of affiliated companies (8)

 

 

 

 

 

 14 

 

 

 14 

 

 

 13 

 

 

 

 

 0.01 

Adjustments related to acquisitions (9)

 

 

 

 

 

 

 

 

 15 

 

 

 12 

 

 

 

 

 0.01 

Pension mark-to-market adjustment (10)

 

 

 

 

 

 

 

 

 27 

 

 

 18 

 

 

 

 

 0.02 

Gain on realignment of equity investment (11)

 

 

 

 

 

 

 

 

 (2,676)

 

 

 (2,676)

 

 

 

 

 (2.26)

Taiwan power outage (12)

 

 

 

 

 

 

 

 

 20 

 

 

 15 

 

 

 

 

 0.01 

Core performance measures

 

$

 2,373 

 

$

 55 

 

$

 513 

 

$

 404 

 

 21.2% 

 

$

 0.34 



(a)

Based upon statutory tax rates in the specific jurisdiction for each event.



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.

© 2018 Corning Incorporated. All Rights Reserved.


-9-

 

 

CORNING INCORPORATED AND SUBSIDIARY COMPANIES

RECONCILIATION OF NON-GAAP FINANCIAL MEASURE TO GAAP FINANCIAL MEASURE

Three Months Ended September 30, 2016

(Unaudited; amounts in millions, except per share amounts)







 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

Income

 

 

 

 

Effective

 

 

 



 

 

 

 

 

 

 

before

 

 

 

 

tax

 

 

 



 

Net

 

Equity

 

income

 

Net

 

(benefit)

 

Per



 

sales

 

earnings

 

taxes

 

income

 

rate (a)

 

share



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As reported

 

$

 2,507 

 

$

 19 

 

$

 257 

 

$

 284 

 

 (10.5%)

 

$

 0.26 

Constant-yen (1)

 

 

 (31)

 

 

 

 

 

 (13)

 

 

 (13)

 

 

 

 

 (0.01)

Constant-won (1)

 

 

 

 

 

 

 

 

 10 

 

 

 7 

 

 

 

 

 0.01 

Translated earnings contract loss (3)

 

 

 

 

 

 

 

 

 237 

 

 

 149 

 

 

 

 

 0.14 

Acquisition-related costs (4)

 

 

 

 

 

 

 

 

 15 

 

 

 11 

 

 

 

 

 0.01 

Discrete tax items and other 
tax-related adjustments (5)

 

 

 

 

 

 

 

 

 

 

 

 6 

 

 

 

 

 0.01 

Restructuring, impairment and other charges (7)

 

 

 

 

 

 

 

 

 11 

 

 

 9 

 

 

 

 

 0.01 

Adjustments related to acquisitions (9)

 

 

 

 

 

 

 

 

 (49)

 

 

 (41)

 

 

 

 

 (0.04)

Pension mark-to-market adjustment (10)

 

 

 

 

 

 

 

 

 26 

 

 

 17 

 

 

 

 

 0.02 

Taiwan power outage (12)

 

 

 

 

 

 

 

 

 5 

 

 

 4 

 

 

 

 

 

Core performance measures

 

$

 2,476 

 

$

 19 

 

$

 499 

 

$

 433 

 

 13.2% 

 

$

 0.39 





(a)Based upon statutory tax rates in the specific jurisdiction for each event.



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.

© 2018 Corning Incorporated. All Rights Reserved.


-10-

 

 

CORNING INCORPORATED AND SUBSIDIARY COMPANIES

RECONCILIATION OF NON-GAAP FINANCIAL MEASURE TO GAAP FINANCIAL MEASURE

Three Months Ended December 31, 2016

(Unaudited; amounts in millions, except per share amounts)







 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

Income

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

before

 

 

 

 

Effective

 

 

 



 

Net

 

Equity

 

income

 

Net

 

tax

 

Per



 

sales

 

earnings

 

taxes

 

income

 

rate (a)

 

share



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As reported

 

$

 2,476 

 

$

 165 

 

$

 2,404 

 

$

 1,572 

 

 34.6% 

 

$

 1.47 

Constant-yen (1)

 

 

 7 

 

 

 (1)

 

 

 11 

 

 

 18 

 

 

 

 

 0.02 

Constant-won (1)

 

 

 

 

 

 

 

 

 3 

 

 

 2 

 

 

 

 

 

Translated earnings contract loss (3)

 

 

 

 

 

 

 

 

 (1,847)

 

 

 (1,165)

 

 

 

 

 (1.09)

Acquisition-related costs (4)

 

 

 

 

 

 

 

 

 18 

 

 

 12 

 

 

 

 

 0.01 

Discrete tax items and other 
tax-related adjustments (5)

 

 

 

 

 

 

 

 

 

 

 

 56 

 

 

 

 

 0.05 

Restructuring, impairment and other charges (7)

 

 

 

 

 

 

 

 

 68 

 

 

 47 

 

 

 

 

 0.04 

Equity in earnings of affiliated companies (8)

 

 

 

 

 

 (53)

 

 

 (53)

 

 

 (33)

 

 

 

 

 (0.03)

Adjustments related to acquisitions (9)

 

 

 

 

 

 

 

 

 (4)

 

 

 (4)

 

 

 

 

 

Pension mark-to-market adjustment (10)

 

 

 

 

 

 

 

 

 7 

 

 

 5 

 

 

 

 

 

Taiwan power outage (12)

 

 

 

 

 

 

 

 

 (8)

 

 

 (6)

 

 

 

 

 (0.01)

Core performance measures

 

$

 2,483 

 

$

 111 

 

$

 599 

 

$

 504 

 

 15.9% 

 

$

 0.47 



(a)Based upon statutory tax rates in the specific jurisdiction for each event.



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.

© 2018 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, 2016

(Unaudited; amounts in millions, except per share amounts)









 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



Year ended December 31, 2016



Net
sales

 

Equity
earnings

 

Income
before
income
taxes

 

Net
income

 

Effective
tax
rate (a)

 

Earnings
per
share

As reported

$

 9,390 

 

$

 284 

 

$

 3,692 

 

$

 3,695 

 

0%

 

$

 3.23 

Constant-yen (1)

 

 50 

 

 

 1 

 

 

 74 

 

 

 57 

 

 

 

 

 0.19 

Constant-won (1)

 

 

 

 

 

 

 

 11 

 

 

 8 

 

 

 

 

 (0.03)

Translated earnings contract loss (3)

 

 

 

 

 

 

 

 448 

 

 

 282 

 

 

 

 

 0.25 

Acquisition-related costs (4)

 

 

 

 

 

 

 

 127 

 

 

 107 

 

 

 

 

 0.09 

Discrete tax items and other 
tax-related adjustments (5)

 

 

 

 

 

 

 

 

 

 

 (27)

 

 

 

 

 (0.02)

Litigation, regulatory and other legal matters (6)

 

 

 

 

 

 

 

 55 

 

 

 70 

 

 

 

 

 0.06 

Restructuring, impairment and other charges (7)

 

 

 

 

 

 

 

 199 

 

 

 138 

 

 

 

 

 0.12 

Equity in earnings of affiliated companies (8)

 

 

 

 

 (37)

 

 

 (37)

 

 

 (18)

 

 

 

 

 (0.02)

Adjustments related to acquisitions (9)

 

 

 

 

 

 

 

 (49)

 

 

 (42)

 

 

 

 

 (0.04)

Pension mark-to-market adjustment (10)

 

 

 

 

 

 

 

 67 

 

 

 44 

 

 

 

 

 0.04 

Gain on realignment of equity investment (11)

 

 

 

 

 

 

 

 (2,676)

 

 

 (2,676)

 

 

 

 

 (2.34)

Taiwan power outage (12)

 

 

 

 

 

 

 

 17 

 

 

 13 

 

 

 

 

 0.01 

Core performance measures

$

 9,440 

 

$

 248 

 

$

 1,928 

 

$

 1,651 

 

14.4%

 

$

 1.55 



(a)Based upon statutory tax rates in the specific jurisdiction for each event.



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.





© 2018 Corning Incorporated. All Rights Reserved.


-12-

 

 



CORNING INCORPORATED AND SUBSIDIARY COMPANIES

RECONCILIATION OF NON-GAAP FINANCIAL MEASURE TO GAAP FINANCIAL MEASURE

Gross Margin and Selling, General and Administrative Expenses

Three Months Ended March 31, 2017, June 30, 2017, September 30, 2017 and December 31, 2017

(Unaudited; amounts in millions)







 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



Three Months Ended

Three Months Ended

Three Months Ended

Three Months Ended



March 31, 2017

June 30, 2017

September 30, 2017

December 31, 2017



 

 

 

Selling,

 

 

 

Selling,

 

 

 

Selling,

 

 

 

Selling,



 

Gross

 

general

 

Gross

 

general

 

Gross

 

general

 

Gross

 

general



 

margin

 

and admin

 

margin

 

and admin

 

margin

 

and admin

 

margin

 

and admin



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As reported 

 

$

 957 

 

$

 316 

 

$

 985 

 

$

 379 

 

$

 1,056 

 

$

 372 

 

$

 1,034 

 

$

 400 

Constant-yen (1)

 

 

 45 

 

 

 

 

 

 31 

 

 

 

 

 

 27 

 

 

 

 

 

 36 

 

 

 

Constant-won (1)

 

 

 4 

 

 

 

 

 

 7 

 

 

 

 

 

 7 

 

 

 

 

 

 11 

 

 

 

Acquisition-related costs (4)

 

 

 4 

 

 

 

 

 

 

 

 

 

 

 

 3 

 

 

 

 

 

 

 

 

 (3)

Litigation, regulatory and
other legal matters (6)

 

 

 

 

 

 12 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Restructuring, impairment and
other charges (7)

 

 

 

 

 

 

 

 

 32 

 

 

 (8)

 

 

 

 

 

 

 

 

 

 

 

 (9)

Adjustments related to acquisitions (9)

 

 

 

 

 

 4 

 

 

 

 

 

 2 

 

 

 

 

 

 

 

 

 

 

 

 7 

Pension mark-to-market adjustment (10)

 

 

 

 

 

 

 

 

 

 

 

 (15)

 

 

 

 

 

 

 

 

 

 

 

 (6)

Core performance measures

 

$

 1,010 

 

$

 332 

 

$

 1,055 

 

$

 358 

 

$

 1,093 

 

$

 372 

 

$

 1,081 

 

$

 389 



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.









© 2018 Corning Incorporated. All Rights Reserved.


-13-

 

 



CORNING INCORPORATED AND SUBSIDIARY COMPANIES

RECONCILIATION OF NON-GAAP FINANCIAL MEASURE TO GAAP FINANCIAL MEASURE

Gross Margin and Selling, General and Administrative Expenses

Three Months Ended March 31, 2016, June 30, 2016, September 30, 2016 and December 31, 2016

(Unaudited; amounts in millions)









 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



Three Months Ended

Three Months Ended

Three Months Ended

Three Months Ended



March 31, 2016

June 30, 2016

September 30, 2016

December 31, 2016



 

 

 

Selling,

 

 

 

Selling,

 

 

 

Selling,

 

 

 

Selling,



 

Gross

 

general

 

Gross

 

general

 

Gross

 

general

 

Gross

 

general



 

margin

 

and admin

 

margin

 

and admin

 

margin

 

and admin

 

margin

 

and admin



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As reported 

 

$

 764 

 

$

 303 

 

$

 951 

 

$

 499 

 

$

 1,041 

 

$

 302 

 

$

 990 

 

$

 368 

Constant-yen (1)

 

 

 56 

 

 

 

 

 

 19 

 

 

 

 

 

 (12)

 

 

 

 

 

 11 

 

 

 

Constant-won (1)

 

 

 (4)

 

 

 

 

 

 2 

 

 

 

 

 

 9 

 

 

 1 

 

 

 3 

 

 

 

Acquisition-related costs (3)

 

 

 

 

 

 

 

 

 3 

 

 

 (62)

 

 

 2 

 

 

 7 

 

 

 

 

 

 

Litigation, regulatory and
other legal matters (6)

 

 

 

 

 

 

 

 

 

 

 

 (52)

 

 

 

 

 

 

 

 

 

 

 

 

Restructuring, impairment and
other charges (7)

 

 

 29 

 

 

 

 

 

 13 

 

 

 

 

 

 8 

 

 

 (4)

 

 

 52 

 

 

 (15)

Adjustments related to acquisitions (9)

 

 

 

 

 

 11 

 

 

 

 

 

 (15)

 

 

 

 

 

 49 

 

 

 

 

 

 4 

Pension mark-to-market adjustments (10)

 

 

 

 

 

 (7)

 

 

 

 

 

 (27)

 

 

 

 

 

 (26)

 

 

 

 

 

 (7)

Taiwan power outage (12)

 

 

 

 

 

 

 

 

 18 

 

 

 

 

 

 5 

 

 

 

 

 

 (7)

 

 

 

Core performance measures

 

$

 845 

 

$

 307 

 

$

 1,006 

 

$

 343 

 

$

 1,053 

 

$

 329 

 

$

 1,049 

 

$

 350 



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.







© 2018 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 March 31, 2017, June 30, 2017, September 30, 2017 and December 31, 2017

(Unaudited; amounts in millions)







 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



Three Months Ended

Three Months Ended

Three Months Ended

Three Months Ended



March 31, 2017

June 30, 2017

September 30, 2017

December 31, 2017



 

Net

 

Net

 

Net

 

Net

 

Net

 

Net

 

Net

 

Net



 

sales

 

income

 

sales

 

income

 

sales

 

income

 

sales

 

income



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As reported 

 

$

 736 

 

$

 249 

 

$

 748 

 

$

 211 

 

$

 768 

 

$

 203 

 

$

 745 

 

$

 168 

Constant-yen (1)

 

 

 46 

 

 

 33 

 

 

 29 

 

 

 23 

 

 

 27 

 

 

 20 

 

 

 39 

 

 

 27 

Constant-won (1)

 

 

 

 

 

 3 

 

 

 

 

 

 5 

 

 

 

 

 

 5 

 

 

 (1)

 

 

 8 

Translated earnings contract gain (3)

 

 

 

 

 

 (48)

 

 

 

 

 

 (43)

 

 

 

 

 

 (33)

 

 

 

 

 

 (45)

Discrete tax items and other 
tax-related adjustments (5)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 38 

Litigation, regulatory and
other legal matters (6)

 

 

 

 

 

 (9)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Restructuring, impairment 
and other charges (7)

 

 

 

 

 

 

 

 

 

 

 

 13 

 

 

 

 

 

 

 

 

 

 

 

 

Adjustments related to acquisitions (9)

 

 

 

 

 

 (2)

 

 

 

 

 

 (1)

 

 

 

 

 

 

 

 

 

 

 

 (5)

Core performance measures

 

$

 782 

 

$

 226 

 

$

 777 

 

$

 208 

 

$

 795 

 

$

 195 

 

$

 783 

 

$

 191 



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.

© 2018 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 March 31, 2016, June 30, 2016, September 30, 2016 and December 31, 2016

 (Unaudited; amounts in millions)









 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

Three Months Ended

 

Three Months Ended

 

Three Months Ended

 

Three Months Ended



 

March 31, 2016

June 30, 2016

 

September 30, 2016

 

December 31, 2016



 

Net

 

Net

 

Net

 

Net

 

Net

 

Net

 

Net

 

Net



 

sales

 

income

 

sales

 

income

 

sales

 

income

 

sales

 

income



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As reported 

 

$

 705 

 

$

 209 

 

$

 801 

 

$

 204 

 

$

 902 

 

$

 279 

 

$

 830 

 

$

 243 

Constant-yen (1)

 

 

 61 

 

 

 41 

 

 

 12 

 

 

 14 

 

 

 (30)

 

 

 (9)

 

 

 7 

 

 

 8 

Constant-won (1)

 

 

 

 

 

 (3)

 

 

 

 

 

 2 

 

 

 

 

 

 7 

 

 

 

 

 

 2 

Translated earnings contract gain  (3)

 

 

 

 

 

 (58)

 

 

 

 

 

 (33)

 

 

 

 

 

 (2)

 

 

 

 

 

 (34)

Restructuring, impairment 
and other charges (7)

 

 

 

 

 

 13 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 31 

Adjustments related to acquisitions (9)

 

 

 

 

 

 (9)

 

 

 

 

 

 12 

 

 

 

 

 

 (41)

 

 

 

 

 

 (4)

Pension mark-to-market adjustment (10)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 1 

Taiwan power outage (12)

 

 

 

 

 

 

 

 

 

 

 

 7 

 

 

 

 

 

 2 

 

 

 

 

 

 (3)

Core performance measures

 

$

 766 

 

$

 193 

 

$

 813 

 

$

 206 

 

$

 872 

 

$

 236 

 

$

 837 

 

$

 244 



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.



© 2018 Corning Incorporated. All Rights Reserved.


-16-

 

 

CORNING INCORPORATED AND SUBSIDIARY COMPANIES

RECONCILIATION OF NON-GAAP FINANCIAL MEASURE TO GAAP FINANCIAL MEASURE

Display Technologies Segment

Year Ended December 31, 2017 and 2016

(Unaudited; amounts in millions)











 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 



Year ended

 

 

Year ended



December 31, 2017

 

 

December 31, 2016



Sales

 

Net
income

 

 

Sales

 

Net
income

As reported

$

 2,997 

 

 

 831 

 

$

 3,238 

 

$

 935 

Constant-yen (1)

 

 141 

 

 

 103 

 

 

 50 

 

 

 54 

Constant-won (1)

 

 (1)

 

 

 21 

 

 

 

 

 

 8 

Translated earnings contract gain (3)

 

 

 

 

 (169)

 

 

 

 

 

 (127)

Discrete tax items and other 
tax-related adjustments (5)

 

 

 

 

 38 

 

 

 

 

 

 

Litigation, regulatory and
other legal matters (6)

 

 

 

 

 (9)

 

 

 

 

 

 

Restructuring, impairment and 
other charges (7)

 

 

 

 

 13 

 

 

 

 

 

 44 

Adjustments related to acquisitions (9)

 

 

 

 

 (8)

 

 

 

 

 

 (42)

Pension mark-to-market adjustment (10)

 

 

 

 

 

 

 

 

 

 

 1 

Taiwan power outage (12)

 

 

 

 

 

 

 

 

 

 

 6 

Core performance measures

$

 3,137 

 

$

 820 

 

$

 3,288 

 

$

 879 



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.

© 2018 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, 2017, June 30, 2017, September 30, 2017 and December 31, 2017

(Unaudited; amounts in millions)







 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



Three Months Ended

Three Months Ended

Three Months Ended

Three Months Ended



March 31, 2017

June 30, 2017

September 30, 2017

December 31, 2017



 

Net

 

Net

 

Net

 

Net

 

Net

 

Net

 

Net

 

Net



 

sales

 

income

 

sales

 

income

 

sales

 

income

 

sales

 

income



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As reported

 

$

 300 

 

$

 48 

 

$

 337 

 

$

 56 

 

$

 373 

 

$

 72 

 

$

 393 

 

$

 73 

Constant-won (1)

 

 

 

 

 

 

 

 

 

 

 

 1 

 

 

 

 

 

 1 

 

 

 

 

 

 1 

Restructuring, impairment and 
other charges (7)

 

 

 

 

 

 

 

 

 

 

 

 2 

 

 

 

 

 

 

 

 

 

 

 

 

Core performance measures

 

$

 300 

 

$

 48 

 

$

 337 

 

$

 59 

 

$

 373 

 

$

 73 

 

$

 393 

 

$

 74 



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.

© 2018 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 March 31, 2016, June 30, 2016, September 30, 2016 and December 31, 2016

 (Unaudited; amounts in millions)







 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

Three Months Ended

 

Three Months Ended

 

Three Months Ended

 

Three Months Ended



 

March 31, 2016

 

June 30, 2016

 

September 30, 2016

 

December 31, 2016



 

Net

 

Net

 

Net

 

Net

 

Net

 

Net

 

Net

 

Net



 

sales

 

income

 

sales

 

income

 

sales

 

income

 

sales

 

income



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As reported

 

$

 227 

 

$

 26 

 

$

 266 

 

$

 38 

 

$

 295 

 

$

 42 

 

$

 336 

 

$

 68 

Constant-yen (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Constant-won (1)

 

 

 

 

 

 1 

 

 

 

 

 

 1 

 

 

 

 

 

 1 

 

 

 

 

 

 1 

Restructuring, impairment and 
other charges (7)

 

 

 

 

 

 8 

 

 

 

 

 

 6 

 

 

 

 

 

 

 

 

 

 

 

 1 

Pension mark-to-market adjustment (10)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Taiwan power outage (12)

 

 

 

 

 

 

 

 

 

 

 

 4 

 

 

 

 

 

 2 

 

 

 

 

 

 (3)

Core performance measures

 

$

 227 

 

$

 35 

 

$

 266 

 

$

 49 

 

$

 295 

 

$

 45 

 

$

 336 

 

$

 67 



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.

© 2018 Corning Incorporated. All Rights Reserved.


-19-

 

 

CORNING INCORPORATED AND SUBSIDIARY COMPANIES

RECONCILIATION OF NON-GAAP FINANCIAL MEASURE TO GAAP FINANCIAL MEASURE

Specialty Materials Segment

Year Ended December 31, 2017 and 2016

 (Unaudited; amounts in millions)



CORNING INCORPORATED AND SUBSIDIARY COMPANIES



 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 



Year ended

 

Year ended



December 31, 2017

 

December 31, 2016



Sales

 

Net
income

 

Sales

 

Net
income

As reported

$

 1,403 

 

 

 249 

 

$

 1,124 

 

$

 174 

Constant-yen (1)

 

 

 

 

 

 

 

 

 

 

 

Constant-won (1)

 

 

 

 

 3 

 

 

 

 

 

 4 

Restructuring, impairment and other charges (7)

 

 

 

 

 2 

 

 

 

 

 

 15 

Taiwan power outage (12)

 

 

 

 

 

 

 

 

 

 

 3 

Core performance measures

$

 1,403 

 

$

 254 

 

$

 1,124 

 

$

 196 



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.



© 2018 Corning Incorporated. All Rights Reserved.


-20-

 

 



Reconciliation of Non-GAAP 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 that reporting core performance measures provides investors greater transparency to the information used by our management team to make financial and operational decisions.  Corning has adopted the use of constant currency reporting for the Japanese yen and South Korean won, and, beginning in the first quarter of 2018, uses an internally derived yen-to-dollar management rate of ¥107 and won-to-dollar management rate of ₩1,175.  The Company believes that the use of constant currency reporting allows investors to understand our results without the volatility of currency fluctuations, and reflects the underlying economics of the translated earnings contract used to mitigate the impact of changes in currency exchange rates on our earnings and cash flows.



Net sales, equity in earnings of affiliated companies and net income are adjusted to exclude the impacts of changes in the Japanese yen and the South Korean won, gains and losses on our translated earnings contracts, acquisition-related costs, certain discrete tax items, restructuring and restructuring-related charges, certain litigation-related expenses, pension mark-to-market adjustments and other items which do not reflect on-going operating results of the Company or our equity affiliates.  Management’s discussion and analysis on our reportable segments has also been adjusted for these items, as appropriate.  These measures are not prepared in accordance with Generally Accepted Accounting Principles in the United States (“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 GAAP reporting measures.  See “Items which we exclude from GAAP measures to arrive at Core performance measures”  for details on core performance measures. 

© 2018 Corning Incorporated. All Rights Reserved.


-21-

 

 



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 Display Technologies segment 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.  As of January 1, 2018, we use an internally derived management rate of ¥107, which is closely aligned to our current yen portfolio of foreign currency hedges, 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:  Because a significant portion of Corning Precision Materials’ costs are denominated in South 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 South 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 ₩1,175, which is closely aligned to our current won portfolio of foreign currency hedges, and have recast all periods presented based on this rate in order to effectively remove the impact of changes in the South Korean won.

(2)

Translation gain on Japanese yen-denominated debt:  The gain on the translation of our Yen-denominated debt to U.S. dollars.

(3)

Translated earnings contract gain (loss):  We have excluded the impact of the realized and unrealized gains and losses of our Japanese yen and South Korean won-denominated foreign currency hedges related to translated earnings, as well as the unrealized gains and losses of our euro, New Taiwan dollar and Chinese yuan-denominated foreign currency hedges related to translated earnings.    

(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 (e.g. 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. 

(6)

Litigation, regulatory and other legal matters:  Includes amounts related to legal matters.

(7)

Restructuring, impairment and other charges:  This amount includes restructuring, impairment and other charges, including goodwill impairment charges and other expenses and disposal costs not classified as restructuring expense.

(8)

 

 

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.

(9)

Adjustments related to acquisitions:  Includes fair value adjustments to the Corning Precision Materials indemnity asset related to contingent consideration, post-combination expenses and other acquisition and disposal adjustments.

(10)

Pension mark-to-market adjustment:  Defined benefit pension mark-to-market gains and losses, which arise from changes in actuarial assumptions and the difference between actual and expected returns on plan assets and discount rates.

(11)

Gain on realignment of equity investment:  Gain recorded upon the completion of the strategic realignment of our ownership interest in Dow Corning.

(12)

Taiwan power outage:  Impact of the power outage that temporarily halted production at our Tainan, Taiwan manufacturing location in the second quarter of 2016.  The impact includes asset write-offs and charges for facility repairs, offset somewhat by partial reimbursement through our insurance program. 

(13)

Adjustments to remove the impact of the Tax Cuts and Job Act:  Includes a provisional amount related to the one-time mandatory tax on unrepatriated foreign earnings, a provisional amount related to the remeasurement of U.S. deferred tax assets and liabilities, changes in valuation allowances as a result of the 2017 Tax Act, and adjustments for the elimination of foreign tax credits.





© 2018 Corning Incorporated. All Rights Reserved.


-22-

 

CORNING INC /NY Reports