Name: Corning Inc. (NYSE:GLW) | Cash Flow Statement
Creator: Stock Analysis on Net

Cash Flow Statement

The cash flow statement provides information about a company cash receipts and cash payments during an accounting period, showing how these cash flows link the ending cash balance to the beginning balance shown on the company balance sheet.

The cash flow statement consists of three parts: cash flows provided by (used in) operating activities, cash flows provided by (used in) investing activities, and cash flows provided by (used in) financing activities.

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Corning Inc., consolidated cash flow statement

US$ in millions

12 months ended:	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	648)	1,386)	1,906)	512)	960)
Depreciation	1,247)	1,329)	1,352)	1,399)	1,390)
Amortization of purchased intangibles	122)	123)	129)	121)	113)
Loss on disposal of assets, net	155)	189)	57)	138)	123)
Severance charges (reversals)	187)	70)	(13)	148)	63)
Severance payments	(96)	(11)	(26)	(147)	(28)
Share-based compensation expense	218)	175)	190)	207)	56)
Translation gain on Japanese yen-denominated debt	(100)	(191)	(180)	86)	3)
Deferred tax provision (benefit)	(75)	(46)	16)	(20)	(191)
Translated earnings contract gain	(161)	(351)	(354)	38)	(248)
Unrealized translation loss on transactions	61)	68)	77)	(133)	33)
Tax deposit refund	99)	—)	—)	—)	—)
Asbestos claim payments	—)	—)	—)	(130)	(50)
Tax assessment refunds	—)	—)	—)	101)	—)
Asset impairment	—)	—)	—)	217)	—)
Transaction-related gain, net	—)	—)	—)	(498)	—)
Trade accounts receivable	50)	113)	(54)	(274)	48)
Inventories	157)	(522)	(103)	423)	(298)
Other current assets	(80)	(139)	(224)	(25)	(300)
Accounts payable and other current liabilities	(238)	349)	806)	57)	1)
Customer deposits and government incentives	(42)	110)	97)	—)	—)
Deferred income	(5)	(49)	(116)	—)	—)
Other, net	(142)	12)	(148)	(40)	356)
Changes in assets and liabilities	(300)	(126)	258)	141)	(193)
Adjustments to reconcile net income to net cash provided by operating activities	1,357)	1,229)	1,506)	1,668)	1,071)
Net cash provided by operating activities	2,005)	2,615)	3,412)	2,180)	2,031)
Capital expenditures	(1,390)	(1,604)	(1,637)	(1,377)	(1,978)
Proceeds from sale of equipment to related party	67)	—)	—)	—)	—)
Proceeds from sale of business	—)	76)	103)	—)	—)
Investments in and proceeds from unconsolidated entities, net	(17)	(38)	84)	(28)	(26)
Sale of equipment for related party	—)	—)	—)	—)	78)
Realized gains on translated earnings contracts and other	326)	300)	67)	12)	55)
Premiums paid on hedging contracts	(9)	(75)	(48)	(9)	—)
Other, net	23)	(14)	12)	92)	(20)
Net cash used in investing activities	(1,000)	(1,355)	(1,419)	(1,310)	(1,891)
Repayments of debt	(284)	(87)	(860)	(221)	(300)
Proceeds from issuance of debt	82)	127)	22)	243)	1,831)
Proceeds from issuance of euro bonds	918)	—)	—)	—)	—)
Proceeds from other financing arrangements	54)	—)	—)	—)	—)
Repayment of other financing arrangements	(54)	—)	—)	—)	—)
Payment for redemption of preferred stock	(507)	(507)	(507)	—)	—)
Payments of employee withholding tax on stock awards	(106)	(47)	(61)	(11)	(17)
Proceeds from exercise of stock options	42)	40)	97)	124)	58)
Purchases of common stock for treasury	—)	(221)	(274)	(105)	(940)
Dividends paid	(989)	(932)	(871)	(787)	(742)
Other, net	(39)	(22)	2)	28)	63)
Net cash used in financing activities	(883)	(1,649)	(2,452)	(729)	(47)
Effect of exchange rates on cash	(14)	(88)	(65)	97)	(14)
Net increase (decrease) in cash and cash equivalents	108)	(477)	(524)	238)	79)
Cash and cash equivalents at beginning of year	1,671)	2,148)	2,672)	2,434)	2,355)
Cash and cash equivalents at end of year	1,779)	1,671)	2,148)	2,672)	2,434)

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

Analysis of the cash flow trends from 2019 to 2023 reveals a period of significant volatility in net income contrasted by relatively stable operating cash generation and consistent capital investment. While net income peaked in 2021 at 1,906 million USD, it declined to 648 million USD by 2023, indicating fluctuations in bottom-line profitability. However, net cash provided by operating activities remained robust, peaking at 3,412 million USD in 2021 before settling at 2,005 million USD in 2023.

Operating Cash Flow Dynamics: The ability to generate cash from operations consistently exceeded net income throughout the five-year period. This is primarily driven by substantial non-cash charges, most notably depreciation, which remained steady between 1,247 million USD and 1,399 million USD annually. Working capital adjustments showed significant volatility; specifically, inventories shifted from a cash outflow of 298 million USD in 2019 to a cash inflow of 157 million USD in 2023, suggesting changes in inventory management efficiency or demand forecasting.
Investing Activities and Capital Expenditure: A consistent strategy of heavy capital reinvestment is evident. Capital expenditures ranged from a high of 1,978 million USD in 2019 to 1,390 million USD in 2023. The net cash used in investing activities remained consistently negative, though the magnitude of outflows decreased over time, from 1,891 million USD in 2019 to 1,000 million USD in 2023. This indicates a sustained commitment to maintaining or expanding the asset base, albeit at a slightly decelerating pace of spend.
Financing Strategy and Shareholder Returns: Financing activities reflect a shift in capital structure and a prioritization of shareholder dividends. Dividends paid grew steadily every year, increasing from 742 million USD in 2019 to 989 million USD in 2023. Treasury stock purchases were active from 2019 through 2022 but ceased in 2023. Debt management showed a cycle of heavy issuance in 2019 (1,831 million USD), followed by a period of repayment, and a return to borrowing in 2023 with the issuance of 918 million USD in euro bonds.
Liquidity and Overall Cash Position: The overall cash and cash equivalents position experienced a gradual decline from 2,434 million USD at the end of 2019 to 1,779 million USD at the end of 2023. The most significant contractions occurred in 2021 and 2022, driven by high net cash outflows in financing activities, including the redemption of preferred stock. A slight recovery in the cash balance was observed in 2023, supported by new debt issuance and reduced investing outflows.

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