Year ended December 31, 2013
|
||||||||
(in millions, except share and per share amounts)
|
Previous
accounting
method
|
Reported
|
Effect of
accounting
change
|
|||||
Cost of sales
|
$
|
4,564
|
$
|
4,495
|
$
|
(69)
|
||
Gross margin
|
3,255
|
3,324
|
69
|
|||||
Selling, general and administrative expenses
|
1,161
|
1,126
|
(35)
|
|||||
Research, development and engineering expenses
|
731
|
710
|
(21)
|
|||||
Operating income
|
1,246
|
1,371
|
125
|
|||||
Income before income taxes
|
2,348
|
2,473
|
125
|
|||||
Provision for income taxes
|
(466)
|
(512)
|
(46)
|
|||||
Net income attributable to Corning Incorporated
|
$
|
1,882
|
$
|
1,961
|
$
|
79
|
||
Earnings per common share attributable to Corning Incorporated – Basic
|
$
|
1.30
|
$
|
1.35
|
$
|
0.05
|
||
Earnings per common share attributable to Corning Incorporated – Diluted
|
$
|
1.29
|
$
|
1.34
|
$
|
0.05
|
Three months ended December 31, 2013 (unaudited)
|
||||||||
(in millions, except share and per share amounts)
|
Previous
accounting
method
|
Reported
|
Effect of
accounting
change
|
|||||
Cost of sales
|
$
|
1,215
|
$
|
1,186
|
$
|
(29)
|
||
Gross margin
|
741
|
770
|
29
|
|||||
Selling, general and administrative expenses
|
351
|
332
|
(19)
|
|||||
Research, development and engineering expenses
|
178
|
169
|
(9)
|
|||||
Operating income
|
131
|
184
|
53
|
|||||
Income before income taxes
|
514
|
567
|
53
|
|||||
Provision for income taxes
|
(126)
|
(146)
|
(20)
|
|||||
Net income attributable to Corning Incorporated
|
$
|
388
|
$
|
421
|
$
|
33
|
||
Earnings per common share attributable to Corning Incorporated – Basic
|
$
|
0.27
|
$
|
0.30
|
$
|
0.03
|
||
Earnings per common share attributable to Corning Incorporated – Diluted
|
$
|
0.27
|
$
|
0.30
|
$
|
0.03
|
Year ended December 31, 2012
|
||||||||
(in millions, except share and per share amounts)
|
Previously
reported
(before
accounting
change)
|
Revised
(after
accounting
change)
|
Effect of
accounting
change
|
|||||
Cost of sales
|
$
|
4,615
|
$
|
4,693
|
$
|
78
|
||
Gross margin
|
3,397
|
3,319
|
(78)
|
|||||
Selling, general and administrative expenses
|
1,165
|
1,205
|
40
|
|||||
Research, development and engineering expenses
|
745
|
769
|
24
|
|||||
Operating income
|
1,321
|
1,179
|
(142)
|
|||||
Income before income taxes
|
2,117
|
1,975
|
(142)
|
|||||
Provision for income taxes
|
(389)
|
(339)
|
50
|
|||||
Net income attributable to Corning Incorporated
|
$
|
1,728
|
$
|
1,636
|
$
|
(92)
|
||
Earnings per common share attributable to Corning Incorporated – Basic
|
$
|
1.16
|
$
|
1.10
|
$
|
(0.06)
|
||
Earnings per common share attributable to Corning Incorporated – Diluted
|
$
|
1.15
|
$
|
1.09
|
$
|
(0.06)
|
Three months ended December 31, 2012 (unaudited)
|
||||||||
(in millions, except share and per share amounts)
|
Previously
reported
(before
accounting
change)
|
Revised
(after
accounting
change)
|
Effect of
accounting
change
|
|||||
Cost of sales
|
$
|
1,239
|
$
|
1,348
|
$
|
109
|
||
Gross margin
|
907
|
798
|
(109)
|
|||||
Selling, general and administrative expenses
|
301
|
356
|
55
|
|||||
Research, development and engineering expenses
|
185
|
219
|
34
|
|||||
Operating income
|
277
|
79
|
(198)
|
|||||
Income before income taxes
|
381
|
183
|
(198)
|
|||||
Provision for income taxes
|
(98)
|
(28)
|
70
|
|||||
Net income attributable to Corning Incorporated
|
$
|
283
|
$
|
155
|
$
|
(128)
|
||
Earnings per common share attributable to Corning Incorporated – Basic
|
$
|
0.19
|
$
|
0.11
|
$
|
(0.08)
|
||
Earnings per common share attributable to Corning Incorporated – Diluted
|
$
|
0.19
|
$
|
0.10
|
$
|
(0.09)
|
Year ended December 31, 2011
|
||||||||
(in millions, except share and per share amounts)
|
Previously
reported
(before
accounting
change)
|
Revised
(after
accounting
change)
|
Effect of
accounting
change
|
|||||
Cost of sales
|
$
|
4,324
|
$
|
4,314
|
$
|
(10)
|
||
Gross margin
|
3,566
|
3,576
|
10
|
|||||
Selling, general and administrative expenses
|
1,033
|
1,028
|
(5)
|
|||||
Research, development and engineering expenses
|
671
|
668
|
(3)
|
|||||
Operating income
|
1,694
|
1,712
|
18
|
|||||
Income before income taxes
|
3,213
|
3,231
|
18
|
|||||
Provision for income taxes
|
(408)
|
(414)
|
(6)
|
|||||
Net income attributable to Corning Incorporated
|
$
|
2,805
|
$
|
2,817
|
$
|
12
|
||
Earnings per common share attributable to Corning Incorporated – Basic
|
$
|
1.80
|
$
|
1.80
|
||||
Earnings per common share attributable to Corning Incorporated – Diluted
|
$
|
1.77
|
$
|
1.78
|
$
|
0.01
|
Year ended December 31, 2013
|
||||||||
(in millions)
|
Previous
accounting
method
|
Reported
|
Effect of
accounting
change
|
|||||
Net income attributable to Corning Incorporated
|
$
|
1,882
|
$
|
1,961
|
$
|
79
|
||
Other comprehensive loss, net of tax
|
(240)
|
(312)
|
(72)
|
|||||
Comprehensive income attributable to Corning Incorporated
|
$
|
1,642
|
$
|
1,649
|
$
|
7
|
Year ended December 31, 2012
|
||||||||
(in millions)
|
Previously
reported
(before
accounting
change)
|
Revised
(after
accounting
change)
|
Effect of
accounting
change
|
|||||
Net income attributable to Corning Incorporated
|
$
|
1,728
|
$
|
1,636
|
$
|
(92)
|
||
Other comprehensive loss, net of tax
|
(211)
|
(120)
|
91
|
|||||
Comprehensive income attributable to Corning Incorporated
|
$
|
1,517
|
$
|
1,516
|
$
|
(1)
|
Year ended December 31, 2011
|
||||||||
(in millions)
|
Previously
reported
(before
accounting
change)
|
Revised
(after
accounting
change)
|
Effect of
accounting
change
|
|||||
Net income attributable to Corning Incorporated
|
$
|
2,805
|
$
|
2,817
|
$
|
12
|
||
Other comprehensive loss, net of tax
|
(132)
|
(144)
|
(12)
|
|||||
Comprehensive income attributable to Corning Incorporated
|
$
|
2,673
|
$
|
2,673
|
$
|
0
|
December 31, 2013
|
||||||||
(in millions)
|
Previous
accounting
method
|
Reported
|
Effect of
accounting
change
|
|||||
Retained earnings
|
$
|
11,904
|
$
|
11,320
|
$
|
(584)
|
||
Accumulated other comprehensive (loss) income
|
$
|
(540)
|
$
|
44
|
$
|
584
|
December 31, 2012
|
||||||||
(in millions)
|
Previously
reported
(before
accounting
change)
|
Revised
(after
accounting
change)
|
Effect of
accounting
change
|
|||||
Retained earnings
|
$
|
10,588
|
$
|
9,932
|
$
|
(656)
|
||
Accumulated other comprehensive (loss) income
|
$
|
(300)
|
$
|
356
|
$
|
656
|
December 31, 2011
|
||||||||
(in millions)
|
Previously
reported
(before
accounting
change)
|
Revised
(after
accounting
change)
|
Effect of
accounting
change
|
|||||
Retained earnings
|
$
|
9,332
|
$
|
8,767
|
$
|
(565)
|
||
Accumulated other comprehensive (loss) income
|
$
|
(89)
|
$
|
476
|
$
|
565
|
December 31, 2010
|
||||||||
(in millions)
|
Previously
reported
(before
accounting
change)
|
Revised
(after
accounting
change)
|
Effect of
accounting
change
|
|||||
Retained earnings
|
$
|
6,881
|
$
|
6,304
|
$
|
(577)
|
||
Accumulated other comprehensive income
|
$
|
43
|
$
|
620
|
$
|
577
|
Year ended December 31, 2013
|
||||||||
(in millions)
|
Previous
accounting
method
|
Reported
|
Effect of
accounting
change
|
|||||
Cash flows from operating activities:
|
||||||||
Net income
|
$
|
1,882
|
$
|
1,961
|
$
|
79
|
||
Deferred tax provision
|
$
|
143
|
$
|
189
|
$
|
46
|
||
Employee benefit payments less than expense
|
$
|
177
|
$
|
52
|
$
|
(125)
|
Year ended December 31, 2012
|
||||||||
(in millions)
|
Previously
reported
(before
accounting
change)
|
Revised
(after
accounting
change)
|
Effect of
accounting
change
|
|||||
Cash flows from operating activities:
|
||||||||
Net income
|
$
|
1,728
|
$
|
1,636
|
$
|
(92)
|
||
Deferred tax provision
|
$
|
68
|
$
|
18
|
$
|
(50)
|
||
Employee benefit payments less than expense
|
$
|
36
|
$
|
178
|
$
|
142
|
Year ended December 31, 2011
|
||||||||
(in millions)
|
Previously
reported
(before
accounting
change)
|
Revised
(after
accounting
change)
|
Effect of
accounting
change
|
|||||
Cash flows from operating activities:
|
||||||||
Net income
|
$
|
2,805
|
$
|
2,817
|
$
|
12
|
||
Deferred tax provision
|
$
|
115
|
$
|
121
|
$
|
6
|
||
Employee benefit payments less than expense
|
$
|
132
|
$
|
114
|
$
|
(18)
|
Years ended December 31,
|
||||||||
2013
|
2012
|
2011
|
||||||
Royalty income from Samsung Corning Precision Materials
|
$
|
56
|
$
|
83
|
$
|
219
|
||
Foreign currency transaction and hedge gains (losses), net
|
500
|
8
|
(43)
|
|||||
Loss on retirement of debt
|
(26)
|
|||||||
Foreign government subsidy
|
55
|
|||||||
Other, net
|
56
|
18
|
(58)
|
|||||
Total
|
$
|
667
|
$
|
83
|
$
|
118
|
Years ended December 31,
|
||||||||
2013
|
2012
|
2011
|
||||||
Non-cash transactions:
|
||||||||
Issued credit memoranda for settlement of customer receivables (1)
|
$
|
28
|
||||||
Accruals for capital expenditures
|
$
|
185
|
$
|
240
|
$
|
472
|
||
Cash paid for interest and income taxes:
|
||||||||
Interest (2)
|
$
|
182
|
$
|
178
|
$
|
140
|
||
Income taxes, net of refunds received
|
$
|
469
|
$
|
355
|
$
|
215
|
(1)
|
Amounts represent credits applied to customer receivable balances for customers that made advance cash deposits under long-term purchase and supply agreements.
|
(2)
|
Included in this amount are approximately $35 million, $74 million and $46 million of interest costs that were capitalized as part of property, net in 2013, 2012 and 2011, respectively.
|
Asset type
|
Range of useful life
|
|||
Computer hardware and software
|
3
|
to
|
7
|
years
|
Manufacturing equipment
|
2
|
to
|
15
|
years
|
Furniture and fixtures
|
5
|
to
|
10
|
years
|
Transportation equipment
|
3
|
to
|
20
|
years
|
·
|
Absence of our ability to recover the carrying amount;
|
·
|
Inability of the equity affiliate to sustain an earnings capacity which would justify the carrying amount of the investment; and
|
·
|
Significant litigation, bankruptcy or other events that could impact recoverability.
|