Corning (GLW) 8-K Corning Announces Change in Pension Accounting

Exhibit 99

FOR RELEASE –– April 5, 2013

Corning Announces Change in Pension Accounting

CORNING, N.Y. — 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 December 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, mark-to-market effects of pension gains and losses, 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 items that may obscure trends in the company’s underlying performance.  Reconciliation of these non-GAAP measures can be found on the company’s website 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 and 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

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CORNING INCORPORATED AND SUBSIDIARY COMPANIES

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited; in millions, except per share amounts)

	Year ended December 31, 2012
(In millions, except per share amounts)	As Previously Reported (Before Accounting Change)		Effect of Accounting Change			As Adjusted (After Accounting Change)
Net sales	$	8,012				$	8,012
Cost of sales		4,615	$	78	(1)		4,693	(1)
Gross margin		3,397		(78)			3,319
Operating expenses:
Selling, general and administrative expenses		1,165		40	(1)		1,205	(1)
Research, development and engineering expenses		745		24	(1)		769	(1)
Amortization of purchased intangibles		19					19
Restructuring, impairment and other charges		133					133
Asbestos litigation charge		14					14
Operating income		1,321		(142)			1,179
Equity in earnings of affiliated companies		810					810
Interest income		14					14
Interest expense		(111)					(111)
Other income, net		83					83
Income before income taxes		2,117		(142)			1,975
Provision for income taxes		(389)		50			(339)
Net income attributable to Corning Incorporated	$	1,728	$	(92)		$	1,636
Earnings per common share attributable to Corning Incorporated:
Basic	$	1.16	$	(0.06)		$	1.10
Diluted	$	1.15	$	(0.06)		$	1.09
Dividends declared per common share	$	0.32				$	0.32

(1)   Includes mark-to-market adjustment for pension plans actuarial net losses of $217 million.

CORNING INCORPORATED AND SUBSIDIARY COMPANIES

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited; in millions, except per share amounts)

	Year ended December 31, 2011
(In millions, except per share amounts)	As Previously Reported (Before Accounting Change)		Effect of Accounting Change			As Adjusted (After Accounting Change)
Net sales	$	7,890				$	7,890
Cost of sales		4,324	$	(10)	(1)		4,314	(1)
Gross margin		3,566		10			3,576
Operating expenses:
Selling, general and administrative expenses		1,033		(5)	(1)		1,028	(1)
Research, development and engineering expenses		671		(3)	(1)		668	(1)
Amortization of purchased intangibles		15					15
Restructuring, impairment and other charges		129					129
Asbestos litigation charge		24					24
Operating income		1,694		18			1,712
Equity in earnings of affiliated companies		1,471					1,471
Interest income		19					19
Interest expense		(89)					(89)
Other income, net		118					118
Income before income taxes		3,213		18			3,231
Provision for income taxes		(408)		(6)			(414)
Net income attributable to Corning Incorporated	$	2,805	$	12		$	2,817
Earnings per common share attributable to Corning Incorporated:
Basic	$	1.80				$	1.80
Diluted	$	1.77	$	0.01		$	1.78
Dividends declared per common share	$	0.23				$	0.23

(1)   Includes mark-to-market adjustment for pension plans actuarial net losses of $64 million.

CORNING INCORPORATED AND SUBSIDIARY COMPANIES

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited; in millions, except per share amounts)

	Year ended December 31, 2010
(In millions, except per share amounts)	As Previously Reported (Before Accounting Change)		Effect of Accounting Change			As Adjusted (After Accounting Change)
Net sales	$	6,632				$	6,632
Cost of sales		3,583	$	(13)	(1)		3,570	(1)
Gross margin		3,049		13			3,062
Operating expenses:
Selling, general and administrative expenses		1,015		(7)	(1)		1,008	(1)
Research, development and engineering expenses		603		(4)	(1)		599	(1)
Amortization of purchased intangibles		8					8
Restructuring, impairment and other credits		(329)					(329)
Asbestos litigation credit		(49)					(49)
Operating income		1,801		24			1,825
Equity in earnings of affiliated companies		1,958					1,958
Interest income		11					11
Interest expense		(109)					(109)
Other income, net		184					184
Income before income taxes		3,845		24			3,869
Provision for income taxes		(287)		(8)			(295)
Net income attributable to Corning Incorporated	$	3,558	$	16		$	3,574
Earnings per common share attributable to Corning Incorporated:
Basic	$	2.28	$	0.01		$	2.29
Diluted	$	2.25	$	0.01		$	2.26
Dividends declared per common share	$	0.20				$	0.20

(1)   Includes mark-to-market adjustment for pension plans actuarial net losses of $17 million.

CORNING INCORPORATED AND SUBSIDIARY COMPANIES

CONSOLIDATED BALANCE SHEETS

(Unaudited; in millions, except per share amounts)

	December 31, 2012
	As Previously Reported (Before Accounting Change)		Effect of Accounting Change		As Adjusted (After Accounting Change)
Assets
Current assets:
Cash and cash equivalents	$	4,988			$	4,988
Short-term investments, at fair value		1,156				1,156
Total cash, cash equivalents and short-term investments		6,144				6,144
Trade accounts receivable, net of doubtful accounts and allowances		1,302				1,302
Inventories		1,051				1,051
Deferred income taxes		579				579
Other current assets		619				619
Total current assets		9,695				9,695
Investments		4,915				4,915
Property, net of accumulated depreciation		10,625				10,625
Goodwill and other intangible assets, net		1,496				1,496
Deferred income taxes		2,343				2,343
Other assets		301				301
Total Assets	$	29,375			$	29,375
Liabilities and Equity
Current liabilities:
Current portion of long-term debt	$	76			$	76
Accounts payable		779				779
Other accrued liabilities		1,101				1,101
Total current liabilities		1,956				1,956
Long-term debt		3,382				3,382
Postretirement benefits other than pensions		930				930
Other liabilities		1,574				1,574
Total liabilities		7,842				7,842
Commitments and contingencies
Shareholders’ equity:
Common stock – Par value $0.50 per share; Shares authorized: 3.8 billion; Shares issued: 1,649 million		825				825
Additional paid-in capital		13,146				13,146
Retained earnings		10,588		(656)		9,932
Treasury stock, at cost; Shares held: 179 million		(2,773)				(2,773)
Accumulated other comprehensive (loss) income		(300)		656		356
Total Corning Incorporated shareholders’ equity		21,486				21,486
Noncontrolling interests		47				47
Total equity		21,533				21,533
Total Liabilities and Equity	$	29,375			$	29,375

CORNING INCORPORATED AND SUBSIDIARY COMPANIES

CONSOLIDATED BALANCE SHEETS

(Unaudited; in millions, except per share amounts)

	December 31, 2011
	As Previously Reported (Before Accounting Change)		Effect of Accounting Change		As Adjusted (After Accounting Change)
Assets
Current assets:
Cash and cash equivalents	$	4,661			$	4,661
Short-term investments, at fair value		1,164				1,164
Total cash, cash equivalents and short-term investments		5,825				5,825
Trade accounts receivable, net of doubtful accounts and allowances		1,082				1,082
Inventories		975				975
Deferred income taxes		448				448
Other current assets		347				347
Total current assets		8,677				8,677
Investments		4,726				4,726
Property, net of accumulated depreciation		10,671				10,671
Goodwill and other intangible assets, net		926				926
Deferred income taxes		2,652				2,652
Other assets		196				196
Total Assets	$	27,848			$	27,848
Liabilities and Equity
Current liabilities:
Current portion of long-term debt	$	27			$	27
Accounts payable		977				977
Other accrued liabilities		1,093				1,093
Total current liabilities		2,097				2,097
Long-term debt		2,364				2,364
Postretirement benefits other than pensions		897				897
Other liabilities		1,361				1,361
Total liabilities		6,719				6,719
Commitments and contingencies
Shareholders’ equity:
Common stock – Par value $0.50 per share; Shares authorized: 3.8 billion; Shares issued: 1,636 million		818				818
Additional paid-in capital		13,041				13,041
Retained earnings		9,332		(565)		8,767
Treasury stock, at cost; Shares held: 121 million		(2,024)				(2,024)
Accumulated other comprehensive (loss) income		(89)		565		476
Total Corning Incorporated shareholders’ equity		21,078				21,078
Noncontrolling interests		51				51
Total equity		21,129				21,129
Total Liabilities and Equity	$	27,848			$	27,848

CORNING INCORPORATED AND SUBSIDIARY COMPANIES

RECONCILIATION OF NON-GAAP FINANCIAL MEASURE TO GAAP FINANCIAL MEASURE

Years Ended December 31, 2012, 2011 and 2010

 (Unaudited; amounts in millions)

Corning’s net income and earnings per share (EPS) excluding special items for the years ended December 31, 2012, 2011 and 2010 are non-GAAP financial measures within the meaning of Regulation G of the Securities and Exchange Commission.  Non-GAAP financial measures are not in accordance with, or an alternative to, generally accepted accounting principles (GAAP).  The company believes presenting non-GAAP net income and EPS is helpful to analyze financial performance without the impact of unusual items that may obscure trends in the company’s underlying performance.  A detailed reconciliation is provided below outlining the differences between these non-GAAP measures and the directly related GAAP measures.

	Year ended December 31, 2012
	Per Share		Income Before Income Taxes		Net Income
Earnings per share (EPS) and net income, as previously reported	$	1.15	$	2,117	$	1,728
EPS and net income impact of previously shown special items*		0.14		240		212
EPS and net income impact of pension mark-to-market		0.09		217		140
New EPS and net income, excluding special items	$	1.38	$	2,574	$	2,080

	Year ended December 31, 2011
	Per Share		Income Before Income Taxes		Net Income
Earnings per share (EPS) and net income, as previously reported	$	1.77	$	3,213	$	2,805
EPS and net income impact of previously shown special items*		(0.01)		47		(16)
EPS and net income impact of pension mark-to-market		0.03		64		41
New EPS and net income, excluding special items	$	1.79	$	3,324	$	2,830

	Year ended December 31, 2010
	Per Share		Income Before Income Taxes		Net Income
Earnings per share (EPS) and net income, as previously reported	$	2.25	$	3,845	$	3,558
EPS and net income impact of previously shown special items*		(0.18)		(469)		(282)
EPS and net income impact of pension mark-to-market		0.01		17		10
New EPS and net income, excluding special items	$	2.08	$	3,393	$	3,286

* No change from previously disclosed amounts.