Corning Announces Change in Pension Accounting
05 Abril 2013 - 6:05PM
CORNING, N.Y., April 5,
2013 - Corning Incorporated (NYSE: GLW) announced
today an accounting change relating to expense recognition for
company-sponsored pension plans. The new method, adopted in the
first quarter of 2013, will result in simpler, more transparent
financial reporting. Today's announcement is an accounting change
only and does not affect benefits for plan participants, Corning's
funding obligations, or the company's cash flow.
This improved methodology records most of the
actuarial gains and losses in the income statement in the year
incurred, rather than amortizing them over time. The difference
between actual and expected returns on assets, as well as other
actuarial gains and losses that together fall outside a recognition
corridor (10% of the greater of plan assets or benefit
obligations), will be recognized in the fourth quarter of each
year. Actuarial gains or losses result from changes in discount
rates and other actuarial assumptions.
"We believe this accounting change will provide
greater transparency that will allow investors to more clearly
evaluate the company's operating performance by recognizing
actuarial gains and losses outside of the corridor in its operating
results in the year in which the gains and losses occur, rather
than amortizing them over future periods," said James B. Flaws,
vice chairman and chief financial officer. "Importantly, this
accounting change has no impact on benefits received by
participants of our pension plans or on pension plan funding
obligations or decisions."
These changes have been applied retrospectively.
Financial results from prior periods have been revised to include
the impact as if the changes had been in place during those
periods. As a result of the retrospective application of this
change, Corning's diluted earnings per share for the years ended
Dec. 31, 2012, 2011, and 2010 decreased from $1.15 to $1.09,
increased from $1.77 to $1.78, and increased from $2.25 to $2.26,
respectively. Excluding the fourth-quarter mark-to-market
adjustment and other special items previously disclosed, diluted
earnings per share from continuing operations for 2012, 2011, and
2010 would have increased from $1.29 to $1.38, from $1.76 to $1.79,
and from $2.07 to $2.08, respectively. Reconciliations
between reported company earnings and revised company earnings, and
GAAP and non-GAAP measures for the years 2012, 2011, and 2010 are
attached to provide year-over-year comparability for future
periods.
Presentation of Information
in this News Release
Non-GAAP financial measures are not in accordance with, or an
alternative to, GAAP. Corning's non-GAAP net income and EPS
measures exclude restructuring, impairment and other charges and
adjustments to prior estimates for such charges. Additionally, the
company's non-GAAP measures exclude adjustments to asbestos
settlement reserves, gains and losses arising from debt
retirements, charges or credits arising from adjustments to the
valuation allowance against deferred tax assets, equity method
charges resulting from impairments of equity method investments or
restructuring, impairment or other charges taken by equity method
companies and gains from discontinued operations. The company
believes presenting non-GAAP net income and EPS measures is helpful
to analyze financial performance without the impact of unusual
items that may obscure trends in the company's underlying
performance. Reconciliation of these non-GAAP measures can be found
on the company's Web site by going to
www.corning.com/investor_relations and clicking Financial Reports
on the left. Reconciliation also accompanies this news release.
Forward-Looking and
Cautionary Statements
This press release contains "forward-looking statements" (within
the meaning of the Private Securities Litigation Reform Act of
1995), which are based on current expectations and assumptions
about Corning's financial results and business operations, that
involve substantial risks and uncertainties that could cause actual
results to differ materially. These risks and uncertainties
include: the effect of global political, economic and business
conditions; conditions in the financial and credit
markets; currency fluctuations; tax rates; product demand
and industry capacity; competition; reliance on a concentrated
customer base; manufacturing efficiencies; cost reductions;
availability of critical components and materials; new product
commercialization; pricing fluctuations and changes in
the mix of sales between premium and non-premium products; new
plant start-up or restructuring costs; possible
disruption in commercial activities due to terrorist activity,
armed conflict, political or financial instability, natural
disasters, adverse weather conditions, or major health concerns;
adequacy of insurance; equity company activities; acquisition and
divestiture activities; the level of excess or obsolete inventory;
the rate of technology change; the ability to enforce patents;
product and components performance issues; retention of key
personnel; stock price fluctuations; and adverse litigation or
regulatory developments. These and other risk factors
are detailed in Corning's filings with the Securities and
Exchange Commission. Forward-looking statements speak only as
of the day that they are made, and Corning undertakes no obligation
to update them in light of new information or future events.
About Corning
Incorporated
Corning Incorporated (www.corning.com) is the world leader in
specialty glass and ceramics. Drawing on more than 160 years of
materials science and process engineering knowledge, Corning
creates and makes keystone components that enable high-technology
systems for consumer electronics, mobile emissions control,
telecommunications and life sciences. Our products include glass
substrates for LCD televisions, computer monitors and laptops;
ceramic substrates and filters for mobile emission control systems;
optical fiber, cable, hardware & equipment for
telecommunications networks; optical biosensors for drug discovery;
and other advanced optics and specialty glass solutions for a
number of industries including semiconductor, aerospace, defense,
astronomy, and metrology.
Media Relations
Contact:
Daniel F. Collins
(607) 974-4197
collinsdf@corning.com
Investor Relations
Contact:
Ann H.S. Nicholson
(607) 974-6716
nicholsoas@corning.com
Pension Plan PR
Financials
This
announcement is distributed by Thomson Reuters on behalf of Thomson
Reuters clients.
The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the
information contained therein.
Source: Corning Incorporated via Thomson Reuters ONE
HUG#1690886
Corning (NYSE:GLW)
Gráfico Histórico do Ativo
De Jun 2024 até Jul 2024
Corning (NYSE:GLW)
Gráfico Histórico do Ativo
De Jul 2023 até Jul 2024