Summary
Corning Incorporated (GLW) announced a change in its "constant-yen" rate used for calculating core performance measures, effective Q1 2015. Previously using ¥93 to ¥1 (aligned with 2013-2014 hedge rates), the company is shifting to a ¥99 to ¥1 rate, aligning with its new hedge rates for 2015-2017. This adjustment aims to better reflect operating performance and underlying business trends by mitigating the impact of Japanese yen fluctuations. The company emphasizes that this change impacts non-GAAP "core performance measures" and does not alter previously reported GAAP financial results, including net income or earnings per share. The recast data, provided for historical periods in Exhibit 99, is intended to offer investors a more consistent and understandable view of operational performance. This move underscores Corning's focus on managing and communicating its financial results in the face of currency volatility, particularly concerning its Japanese yen exposure.
Key Highlights
- 1Corning is changing the "constant-yen" rate used for its core performance measures from ¥93 to ¥99 per USD, effective Q1 2015.
- 2This change aligns the reporting rate with new hedge rates established for 2015-2017.
- 3The purpose is to mitigate the impact of Japanese yen translation on reported results and better assess underlying business performance.
- 4The adjustment affects non-GAAP core performance measures only and does not restate previously issued GAAP financial statements.
- 5Recast historical data (2013-2014) on the new constant-yen basis is provided in Exhibit 99 for the total company and for the Display Technologies and Specialty Materials segments.
- 6Corning believes this provides investors with a clearer view of operational trends and management's performance evaluation.