XML 30 R21.htm IDEA: XBRL DOCUMENT v3.22.2.2
Note 13 - Shareholders' Equity
 9 Months Ended
Sep. 30, 2022
Notes to Financial Statements  
Stockholders' Equity Note Disclosure [Text Block]

13. Shareholders’ Equity

 

Fixed Rate Cumulative Convertible Preferred Stock, Series A 

 

On January 16, 2021, the Preferred Stock became convertible into 115 million common shares.  On April 5, 2021, Corning and SDC executed the SRA, and the Preferred Stock was fully converted as of April 8, 2021. Immediately following the conversion, Corning repurchased and retired 35 million of the common shares held by SDC for an aggregate purchase price of approximately $1.5 billion, of which approximately $507 million was paid on April 8, 2022 and 2021, respectively.  The remaining payment of approximately $507 million will be paid on April 8, 2023.

 

The remaining 80 million common shares were accounted for as a conversion of Preferred Stock and resulted in an increase of common stock and additional paid-in-capital based on the carrying value of the Preferred Stock.  These common shares were included in the weighted-average common shares outstanding for the calculation of the Company’s basic and diluted earnings per share.  SDC has the option to sell 22 million common shares to Corning subject to certain conditions beginning in 2024-2027. The remaining 58 million common shares are subject to a seven-year lock-up period expiring in 2027.   

 

Share Repurchases

 

On April 26, 2018, Corning’s Board of Directors approved a $2 billion share repurchase program with no expiration date (the “2018 Repurchase Program”).  On July 17, 2019, Corning’s Board of Directors authorized $5 billion in share repurchases with no expiration date (the “2019 Repurchase Program”).

 

For the three and nine months ended September 30, 2022, the Company repurchased 0.5 million shares and 6.0 million shares, respectively, of common stock on the open market for approximately $17 million and $221 million, respectively, as part of its 2019 Repurchase Program.

 

For the three and nine months ended September 30, 2021, the Company repurchased 1 million and 36 million shares of common stock, respectively, for approximately $24 million and $1.5 billion, respectively, as part of the 2018 and 2019 Repurchase Programs. Most of these shares were repurchased immediately following the conversion of the preferred shares, as discussed above.


Accumulated Other Comprehensive (Loss)

 

In the three and nine months ended September 30, 2022 and 2021, the change in accumulated other comprehensive (loss) was primarily related to the foreign currency translation adjustment.

 

The following table summarizes the changes in the foreign currency translation adjustment component of accumulated other comprehensive (loss) (in millions) (1):

 

  

Three months ended

  

Nine months ended

 
  

September 30,

  

September 30,

 
  

2022

  

2021

  

2022

  

2021

 

Beginning balance

 $(1,783) $(652) $(933) $(329)

Loss on foreign currency translation (2)

  (664)  (185)  (1,497)  (501)

Equity method affiliates (3)

  (21)  (7)  (38)  (14)

Net current-period other comprehensive loss

  (685)  (192)  (1,535)  (515)

Ending balance

 $(2,468) $(844) $(2,468) $(844)

 

(1)

All amounts are after tax. Amounts in parentheses indicate debits to accumulated other comprehensive loss.

(2)

For the three and nine months ended September 30, 2022, amounts are net of tax benefit of $49 million and $87 million, respectively.  For the three and nine months ended September 30, 2021, amounts are net of tax benefit of $31 million and $42 million, respectively.

(3)

Tax effects are not significant.