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) February 22, 2000
CORNING INCORPORATED
(Exact name of registrant as specified in its charter)
New York 1-3247 16-0393470
(State or other jurisdiction (Commission (I.R.S. Employer
of incorporation) File Number) Identification No.)
One Riverfront Plaza, Corning, New York 14831
(Address of principal executive offices) (Zip Code)
(607) 974-9000
(Registrant's telephone number, including area code)
N/A
(Former name or former address, if changed since last report)
<PAGE>
Item 5. Other Events
On January 28, 2000, Corning Incorporated, Riesling Acquisition Corporation and
Oak Industries Inc. completed the previously announced merger of Riesling
Acquisition Corporation, a Corning subsidiary, with and into Oak Industries
whereby Corning exchanged 0.83 shares of Corning common stock for each share of
Oak Industries common stock. The transaction was accounted for as a pooling of
interests. Corning expects to file a Form 10-K reflecting its historical
results in March 2000. Corning will also file an amended Form 10-K reflecting
the retroactively restated financial statements for the merger. Filed herewith
is certain restated information for 1999 and 1998 reflecting the pooling of
interests:
(1) Supplemental Consolidated Statements of Income for the years ended December
31, 1999, 1998 and 1997.
(2) Supplemental Consolidated Balance Sheets as of December 31, 1999 and 1998.
(3) Supplemental Consolidated Statements of Income for the quarters ended March
31, June 30, September 30 and December 31, 1999 and 1998.
(4) Supplemental Segment Information for the quarters ended March 31, 1999, June
30, 1999, September 30, 1999 and December 31, 1999.
<PAGE>
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: February 22, 2000 By /s/ KATHERINE A. ASBECK
Katherine A. Asbeck
Vice President and Controller
<PAGE>
CORNING INCORPORATED
SUPPLEMENTAL FINANCIAL INFORMATION
The supplemental financial statements give retroactive effect to the merger of
Corning Incorporated and Oak Industries on January 28, 2000 which has been
accounted for as a pooling of interests. Accounting principles generally
accepted in the United States proscribe giving effect to a consummated business
combination accounted for by the pooling of interests method in financial
statements that do not extend through the date of consummation. The financial
information included in this filing will become the historical consolidated
financial statements of Corning Incorporated after financial statements covering
the date of consummation of the business combination are issued. The operating
results of Oak Industries have been included in the Telecommunications Segment.
<PAGE>
Corning Incorporated and Subsidiary Companies
Supplemental Consolidated Statements of Income
(In millions, except per share amounts)
<TABLE>
<CAPTION>
Year Ended December 31,
----------------------------
1999 1998 1997
-------- -------- --------
<S> <C> <C> <C>
Revenues
Net sales $4,741.1 $3,831.9 $3,831.2
Royalty, interest and
dividend income 41.4 50.0 38.9
Non-operating gains 30.0 39.7
-------- -------- --------
4,812.5 3,921.6 3,870.1
-------- -------- --------
Deductions
Cost of sales 2,930.3 2,360.5 2,224.3
Selling, general and
administrative expenses 667.4 542.8 593.4
Research, development and
engineering expenses 378.2 307.4 262.9
Provision for impairment
and restructuring 1.4 84.6
Amortization of purchased
intangibles
including goodwill 27.8 22.2 21.8
Interest expense 93.2 66.8 83.0
Other, net 39.3 55.0 18.9
-------- -------- --------
Income from continuing
operations before
taxes on income 674.9 482.3 665.8
Taxes on income from
continuing operations 207.1 149.5 223.3
-------- -------- --------
Income from continuing
operations before
minority interest
and equity earnings 467.8 332.8 442.5
Minority interest in earnings
of subsidiaries (66.8) (61.6) (77.4)
Dividends on convertible
preferred securities
of subsidiary (2.3) (13.7) (13.7)
Equity in earnings of
associated companies 112.3 97.3 79.2
-------- -------- --------
Income from continuing
operations 511.0 354.8 430.6
Income from discontinued
operations, net of
income taxes 4.8 66.5 30.9
-------- -------- --------
Net Income $ 515.8 $ 421.3 $ 461.5
======== ======== ========
Basic Earnings Per Share
Continuing operations $ 2.00 $ 1.45 $ 1.77
Discontinued operations 0.02 0.27 0.12
-------- -------- --------
Net Income $ 2.02 $ 1.72 $ 1.89
======== ======== ========
Diluted Earnings Per Share
Continuing operations $ 1.95 $ 1.42 $ 1.71
Discontinued operations 0.02 0.25 0.11
-------- -------- --------
Net Income $ 1.97 $ 1.67 $ 1.82
======== ======== ========
Shares Used In Computing
Earnings Per Share
Basic earnings per share 255.1 244.4 242.9
Diluted earnings per share 265.1 259.2 260.4
</TABLE>
<PAGE>
Corning Incorporated and Subsidiary Companies
Supplemental Consolidated Balance Sheets
(In millions, except per share amounts)
<TABLE>
<CAPTION>
December 31,
-------------------
1999 1998
-------- -------
<S> <C> <C>
Assets
Current Assets
Cash $ 121.8 $ 20.8
Short-term investments, at cost,
which approximates market value 158.6 38.4
Accounts receivable, net of
doubtful accounts and
allowances - $19.9/1999; $18.1/1998 872.4 696.0
Inventories 602.2 536.0
Deferred taxes on income and
other current assets 229.2 184.5
-------- --------
Total current assets 1,984.2 1,475.7
-------- --------
Investments
Associated companies, at equity 421.9 323.9
Others, at cost or fair value 82.5 53.3
Plant and equipment, at cost, net
of accumulated depreciation 3,201.7 2,783.9
Goodwill and other intangible assets,
net of accumulated
amortization - $112.3/1999;
$90.3/1998 506.7 506.2
Other assets 329.0 321.3
-------- --------
Total Assets $6,526.0 $5,464.3
======== ========
Liabilities and Shareholders' Equity
Current Liabilities
Loans payable $ 420.7 $ 206.7
Accounts payable 418.0 312.5
Other accrued liabilities 715.3 608.8
-------- --------
Total current liabilities 1,554.0 1,128.0
-------- --------
Other liabilities 720.6 682.7
Loans payable beyond one year 1,490.4 1,217.8
Minority interest in subsidiary
companies 284.8 346.1
Convertible preferred securities
of subsidiary 365.2
Convertible preferred stock 13.5 17.9
Common shareholders' equity
Common stock, including excess over par
value and other capital - par value
$0.50 per share; Shares authorized:
500 million; Shares issued:
285.2 million/1999; 280.5
million/1998 1,359.3 1,042.3
Retained earnings 1,790.0 1,451.1
Less cost of 25.0 million/1999 and
34.4 million/1998 shares of
common stock in treasury (656.0) (790.0)
Accumulated other comprehensive
income (loss) (30.6) 3.2
-------- --------
Total common shareholders' equity 2,462.7 1,706.6
-------- --------
Total Liabilities and
Shareholders' Equity $6,526.0 $5,464.3
======== ========
</TABLE>
<PAGE>
Corning Incorporated and Subsidiary Companies
Supplemental Consolidated Statements of Income
(In millions, except per share amounts)
<TABLE>
<CAPTION>
1999
------------------------------------------------
Q1 Q2 Q3 Q4 Total
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
Revenues
Net sales $ 997.0 $1,129.7 $1,245.3 $1,369.1 $4,741.1
Royalty, interest and
dividend income 10.0 11.3 8.7 11.4 41.4
Non-operating gains 30.0 30.0
-------- -------- -------- -------- --------
1,007.0 1,141.0 1,284.0 1,380.5 4,812.5
Deductions
Cost of sales 613.9 693.3 767.0 856.1 2,930.3
Selling, general
and administrative
expenses 152.2 151.2 172.0 192.0 667.4
Research, development
and engineering
expenses 83.4 88.5 100.2 106.1 378.2
Provision for impairment
and restructuring 15.5 (14.1) 1.4
Amortization of
purchased intangibles
including goodwill 6.9 7.0 7.3 6.6 27.8
Interest expense 19.7 20.4 26.0 27.1 93.2
Other, net 9.9 10.7 11.9 6.8 39.3
-------- -------- -------- -------- --------
Income from continuing
operations before
taxes on income 121.0 169.9 184.1 199.9 674.9
Taxes on income
from continuing
operations 37.3 52.3 55.7 61.8 207.1
-------- -------- -------- -------- --------
Income from continuing
operations before
minority interest
and equity earnings 83.7 117.6 128.4 138.1 467.8
Minority interest in
earnings of
subsidiaries (10.1) (17.4) (18.6) (20.7) (66.8)
Dividends on convertible
preferred securities
of subsidiary (2.3) (2.3)
Equity in earnings of
associated companies 21.2 30.8 32.1 28.2 112.3
-------- -------- -------- -------- --------
Income from continuing
operations 92.5 131.0 141.9 145.6 511.0
Income from discontinued
operations, net
of income taxes 4.8 4.8
-------- -------- -------- -------- --------
Net Income $ 92.5 $ 131.0 $ 141.9 $ 150.4 $ 515.8
======== ======== ======== ======== ========
Diluted Earnings
Per Share
Continuing
operations $ 0.36 $ 0.50 $ 0.54 $ 0.55 $ 1.95
Discontinued
operations 0.02 0.02
-------- -------- -------- -------- --------
Net Income $ 0.36 $ 0.50 $ 0.54 $ 0.57 $ 1.97
======== ======== ======== ======== ========
Shares Used In Computing
Earnings Per Share
Diluted earnings
per share 260.4 265.3 265.7 266.6 265.1
</TABLE>
<PAGE>
Corning Incorporated and Subsidiary Companies
Supplemental Consolidated Statements of Income
(In millions, except per share amounts)
<TABLE>
<CAPTION>
1998
--------------------------------------------
Q1 Q2 Q3 Q4 Total
------ ------ -------- -------- --------
<S> <C> <C> <C> <C> <C>
Revenues
Net sales $874.0 $944.6 $ 988.1 $1,025.2 $3,831.9
Royalty, interest and
dividend income 9.7 12.2 12.3 15.8 50.0
Non-operating gains 20.5 19.2 39.7
------ ------ -------- -------- --------
883.7 977.3 1,000.4 1,060.2 3,921.6
Deductions
Cost of sales 560.3 581.1 597.6 621.5 2,360.5
Selling, general
and administrative
expenses 125.3 141.2 125.0 151.3 542.8
Research, development
and engineering
expenses 70.7 78.6 74.3 83.8 307.4
Provision for impairment
and restructuring 84.6 84.6
Amortization of
purchased intangibles
including goodwill 5.5 5.5 5.4 5.8 22.2
Interest expense 20.2 17.3 13.5 15.8 66.8
Other, net 27.1 2.6 10.7 14.6 55.0
------ ------ -------- -------- --------
Income from continuing
operations before
taxes on income 74.6 66.4 173.9 167.4 482.3
Taxes on income from
continuing operations 25.0 18.9 53.9 51.7 149.5
------ ------ -------- ------- --------
Income from continuing
operations before
minority interest
and equity earnings 49.6 47.5 120.0 115.7 332.8
Minority interest in
earnings of subsidiaries (5.7) (13.0) (20.5) (22.4) (61.6)
Dividends on convertible
preferred securities
of subsidiary (3.4) (3.5) (3.4) (3.4) (13.7)
Equity in earnings of
associated companies 28.1 33.6 15.7 19.9 97.3
------ ------ -------- -------- --------
Income from continuing
operations 68.6 64.6 111.8 109.8 354.8
Income from discontinued
operations, net
of income taxes (0.6) 67.1 66.5
------ ------ -------- -------- --------
Net Income $ 68.0 $131.7 $ 111.8 $ 109.8 $ 421.3
====== ====== ======== ======== ========
Diluted Earnings
Per Share
Continuing
operations $ 0.28 $ 0.26 $ 0.44 $ 0.44 $ 1.42
Discontinued
operations (0.01) 0.26 0.25
------ ------ -------- -------- --------
Net Income $ 0.27 $ 0.52 $ 0.44 $ 0.44 $ 1.67
====== ====== ======== ======== ========
Shares Used In Computing
Earnings Per Share
Diluted earnings
per share 247.9 249.4 260.8 260.9 259.2
</TABLE>
<PAGE>
Corning Incorporated and Subsidiary Companies
Supplemental Consolidated Income Statement Information
(In millions, except per share amounts)
<TABLE>
<CAPTION>
1999
-------------------------------------------
Q1 Q2 Q3 Q4 TOTAL
------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C>
Net Income
Before special items $ 92.5 $131.0 $142.4 $137.0 $502.9
Provision for impairment
and restructuring (10.0)(1) 8.6(3) (1.4)
Non-operating gains 9.5 (2) 9.5
------ ------ ------ ------ ------
Net income from
continuing operations 92.5 131.0 141.9 145.6 511.0
Net income from
discontinued operations 4.8 4.8
------ ------ ------ ------ ------
Net Income $ 92.5 $131.0 $141.9 $150.4 $515.8
====== ====== ====== ====== ======
Earnings Per Share
Diluted earnings per share:
Before special items $ 0.36 $ 0.50 $ 0.54 $ 0.52 $ 1.92
Provision for
impairment
and restructuring (0.04)(1) 0.03(3) (0.01)
Non-operating gains 0.04 (2) 0.04
------ ------ ------ ------ ------
Net income from
continuing operations 0.36 0.50 0.54 0.55 1.95
Net income from
discontinued operations 0.02 0.02
------ ------ ------ ------ ------
Net Income $ 0.36 $ 0.50 $ 0.54 $ 0.57 $ 1.97
====== ====== ====== ====== ======
Shares used in computing
earnings per share:
Diluted earnings
per share 260.4 265.3 265.7 266.6 265.1
====== ====== ====== ====== ======
(1) Reflects a non-operating charge of $15.5 million ($10.0 million after tax),
or $0.04 per share.
(2) Reflects a non-operating gain of $30.0 million ($9.5 million after tax and
minority interest), or $0.04 per share.
(3) Reflects a release of restructuring reserves totaling $14.1 million ($8.6
million after tax), or $0.03 per share.
</TABLE>
<PAGE>
Corning Incorporated and Subsidiary Companies
Supplemental Consolidated Income Statement Information
(In millions, except per share amounts)
<TABLE>
<CAPTION>
1998
--------------------------------------------
Q1 Q2 Q3 Q4 TOTAL
------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C>
Net Income
Before special items $ 68.6 $100.6 $111.8 $100.1 $381.1
Provision for impairment
and restructuring (49.2)(1) (49.2)
------ ------ ------ ------ ------
Non-operating gains 13.2 (2) 9.7(3) 22.9
Net income from
continuing operations 68.6 64.6 111.8 109.8 354.8
Net income from
discontinued operations (0.6) 67.1 66.5
------ ------ ------ ------ ------
Net Income $ 68.0 $131.7 $111.8 $109.8 $421.3
====== ====== ====== ====== ======
Earnings Per Share
Diluted earnings per share:
Before special items $ 0.28 $ 0.40 $ 0.44 $ 0.40 $ 1.52
Provision for
impairment and
restructuring (0.19)(1) (0.19)
Non-operating gains 0.05 (2) 0.04(3) 0.09
------ ------ ------ ------ ------
Net income from
continuing operations 0.28 0.26 0.44 0.44 1.42
Net income from
discontinued operations (0.01) 0.26 0.25
------ ------ ------ ------ ------
Net Income $ 0.27 $ 0.52 $ 0.44 $ 0.44 $ 1.67
====== ====== ====== ====== ======
Shares used in computing
earnings per share:
Diluted earnings
per share 247.9 249.4 260.8 260.9 259.2
======= ====== ====== ====== ======
(1) Reflects a restructuring charge of $84.6 million ($49.2 million after tax
and minority interest), or $0.19 per share.
(2) Reflects a non-oerating gain of $20.5 million ($13.2 million after tax), or
$0.05 per share.
(3) Reflects a non-operating gain of $19.2 million ($9.7 million after tax), or
$0.04 per share.
</TABLE>
<PAGE>
Corning Incorporated and Subsidiary Companies
Quarterly Information by Operating Segment
(In millions)
<TABLE>
<CAPTION>
1999
----------------------------------------------
Q1 Q2 Q3 Q4 Total
------ -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
Telecommunications
Net sales $593.3 $ 692.5 $ 803.4 $ 869.0 $2,958.2
Research, development
and engineering
expenses $ 56.1 $ 59.6 $ 71.3 $ 73.8 $ 260.8
Segment earnings before
minority interest
and equity earnings $ 55.0 $ 75.9 $ 84.0 $ 93.7 $ 308.6
Minority interest in
earnings of subsidiaries (4.3) (8.7) (7.4) (14.2) (34.6)
Equity in earnings of
associated companies 4.0 2.6 4.9 3.4 14.9
------ -------- -------- -------- --------
Segment net income $ 54.7 $ 69.8 $ 81.5 $ 82.9 $ 288.9
====== ======== ======== ======== ========
Advanced Materials
Net sales $252.1 $ 264.7 $ 257.7 $ 279.4 $1,053.9
Research, development
and engineering
expenses $ 21.9 $ 23.2 $ 23.7 $ 25.7 $ 94.5
Segment earnings before
minority interest
and equity earnings $ 20.0 $ 28.0 $ 23.6 $ 19.3 $ 90.9
Minority interest in
earnings of subsidiaries 0.1 (0.1)
Equity in earnings of
associated companies 4.1 3.5 6.1 8.0 21.7
------ -------- -------- -------- --------
Segment net income $ 24.2 $ 31.5 $ 29.6 $ 27.3 $ 112.6
====== ======== ======== ======== ========
Information Display
Net sales $145.7 $ 166.0 $ 178.7 $ 210.8 $ 701.2
Research, development
and engineering
expenses $ 5.4 $ 5.7 $ 5.3 $ 6.5 $ 22.9
Segment earnings before
minority interest
and equity earnings $ 9.4 $ 17.8 $ 12.9 $ 17.5 $ 57.6
Minority interest in
earnings of subsidiaries (5.9) (8.8) (1.5) (6.5) (22.7)
Equity in earnings of
associated companies 12.4 22.2 18.3 14.9 67.8
------ -------- -------- -------- --------
Segment net income $ 15.9 $ 31.2 $ 29.7 $ 25.9 $ 102.7
====== ======== ======== ======== ========
Total Segments
Net sales $991.1 $1,123.2 $1,239.8 $1,359.2 $4,713.3
Research, development
and engineering
expenses $ 83.4 $ 88.5 $ 100.3 $ 106.0 $ 378.2
Segment earnings before
minority interest
and equity earnings $ 84.4 $ 121.7 $ 120.5 $ 130.5 $ 457.1
Minority interest in
earnings of subsidiaries (10.1) (17.5) (9.0) (20.7) (57.3)
Equity in earnings of
associated companie 20.5 28.3 29.3 26.3 104.4
------ -------- -------- -------- --------
Segment net income $ 94.8 $ 132.5 $ 140.8 $ 136.1 $ 504.2
====== ======== ======== ======== ========
These amounts do not include revenues, expenses and equity earnings not
specifically identifiable to segments.
</TABLE>
