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FILE NAME Corning OC DATE 1981 DOC OC245 DOCUMENT DESCRIPTION Entry in Moody's Industrial Manual 1981 . VOL 2 Z OWENS OWENS CORNING COVERING NEW YORK AMERICAN & REGIONAL STOCK EXCHANGES & INTERNATIONAL COMPANIES INDUSTRIAL MANUAL WILLIAM O. DWYER Publisher HOWARD G. KIEDAISCH Ass't Publisher L. JOSEPH ROGERS Gen. Manager ROBERT P. HANSON Editor Editorial Board ROBERT W. BURKE DIANE R. KRUTZ BRIAN T. COFFEY ALFRED G. ELLINGHAM JOSEPH B. LEIGH WILLIAM H. MOORE HAROLD H. COLDBERG WILLIAM M. PACCIONE ALVIN E. GOUVIA FRANK R. PLATAROTE JOHN J. IERACI MICHAEL A. RABBIA BERNARDO G. SCERI JR Moody's Investors . Service company of ER The Dun &Bradstreet Corporation SEE FOLLOWING PAGE FOR COMPLETE LIST OF OFFICES INVESTORS Copyright '1981 by MOODY'S INVESTORS SERVICE INC New York All rights reserved e 4012 MOODY'S INDUSTRIAL MANUAL CAPITAL STRUCTURE CORNING FIBERGLAS CORPORATION . Times LONG TERM DEBT Issue 1. S.f. debenture 6sdue 1994 . 2. S.f. debenture 9dsue 2000 . 3. S.f. debenture 125 due 2010 4. Assumed s.f. deb 9s due 1986 5. Other long term deb 0 t ..6..00005 CAPITAL STOCK Issue text 1. Common .......--066.005 Subject to change see text Offered May Value $ 2 1980. Amount : Outstanding 18,874,000 45,000,000 100,000,000 12,500,000 17,383,000 Amount - Outstanding 30,584,131 shs Based on weighted Charges Earned 1980 1979 2.99 9.20 Interest Dates A 1 & 1 M 1 Aug. 1 Call Price 102.55 106.125 109.40 101.20 sree ee ee teas Earned per Sh Divs per Sh . Call 3.59 1980 $ 1.78 1979 1980 $ 1.20 1979 reported 1.20 Price average shares outstanding as reported by Company 1980 % 22 1979 31 - 24 HISTORY 1938 Incorporated under Delaware laws Oct. 31 In 1977 Co.'s equity in Asahi Fiber Glass Co. Ltd. was reduced from 40 to % by an additional investment by the majority stock- holder The Co. retains the option to restore its ownership to the 40 previously held On Apr. 20 1977 acquired all assets and cer- tain liabilities of Lloyd A. Fry Roofing Co. and Trumbull Asphalt Co. in exchange for ap- prox 108,000,000 in cash In July 1979 Co. purchased Rohm and Haas Co's low profile 19 resin technology acquired In Nov. 1979 Co. stock of American Borate outstanding Corp. which owned remaining minority interest in American Borate Co. ^ mining venture SUBSIDIARIES subsidiaries The following includes subsidiaries and for- the laws eign affiliates of the Company other jurisdiction under , the state or of which they are organized and the percentage of vot- ing securities owned by the Company or their immediate parent American Borate Corp. Tex 100 OCFOGO Inc. Del 100 Owens Fiberglas International Corp. Del 100 subsidiary in This wholly subsidiary in turn holds all of Co.'s 40 interest in the New Zealand Fibre Glass Ltd. and 13.8 of the voting securities or 28.2 of Co.'s interest in Fiberglas Canada Ltd. both listed below under con- solidated companies In addition it holds 6.7 of the voting securities of Corning Fi- berglas Europe S.A. 0.6 of OCFIBRAS Limitada and 1.6 of Coming Fiberg- las Italy S.r.1 Fiberglas Export Sales Corp. Owens Corning Fabrication Sales Corp. Del Fiberglas 100 % Corning Fiberglas Europe S.A. Bel- gium 93.3 This subsidiary in turn holds all of Co.'s in- terest in Corning Fiberglas Deutsch- land GmbH Germany and Corning Fiberglas United Kingdom Ltd. England Corning Fiberglas France S.A. France 100 Corning 98.4 % Fiberglas Italy S.r.l. Italy OCFIBRAS Limitada Brazil 99.4 Eric Co. Del 100 Matcorp Inc. Del Contracting Corning Contracting Ltd. Canada 100 Karlcorp Del 100 Barbcorp Inc. Del 100 Willcorp Inc. Del 100 Corning Cayman Ltd. Cayman Is- RoRsocsocorrpp Inc. Inc. Ca) l % % Piedmont Products Inc. Del consolidated Companies Fiberglas Canada Limited See note above under CaCno adrani 4 n9 g Fi- berglas International Corp. Asahi Fiber % Australian Glass Company Ltd. Japan Fibre Glass Pty Ltd. Australia 40 New Zealand Fibre Glass Ltd. New Zealand 40 See note above under Corning Fiberglas International Corp. Fiberglas Colombia S.A. Colombia 40 Scandinavian Glasfiber AB Sweden 40 Vitro Fibras S.A. Mexico 40 Fibreglass South Africa Pty Ltd. U. of S. Af- rica 25.5 OC a Joint Venture 0. 50 Polyplaster S.A. Brazil 31.7 Eurostar S.A. France 32 ACI Fibreglass Philippines Inc. Philip- pines 28.8 Bayer Owens Corning Glasswool S.A. Bel gium 49.5 OCF Joint Venture Pa 33.3 Veroc Technology A Norway 49 Amiantit Fiberglass Industries Ltd. Saudi 30 Arabia Spain AGEMOC S.A. Spain % BUSINESS Substantially all of Company's revenue and income are attributable to its one line of business glass fiber business and activities in- cidental thereto principally in Company operates principally in two do- mestic industry segments and also has foreign operations These segments are Insulation and Construction Industrial and Textile and International The following table indicates the amounts of revenue and operating profit by industry segments in millions of dollars 1980 unaffil Sales to unaffil customers Insulation & 1979 1978 construction ... Industrial & 1,775.3 1,730.8 1,413.8 textile International ooo International ... 358.1 151.6 356.5 157.9 311.0 128.3 Total .. Operating propfriotfit Insulation & construction . Industrial & textile International ... 2,285.0 * 2,245.2 1,853.1 128.7 10.5 5.9 186.8 22.4 19.5 205.2 40.5 17.3 Total Company 145.1 228.7 263 Company produces a broad range of glass fiber products in two basic forms ) a wool like material used for thermal and acoustical insulation and other construction products and 2 textile filaments which are combined strands into yarns or mats and used for weaving fabrics and for reinforcing plastic rubber and paper products Company sells these products under the trademark Fiberg- las Company also has established manufac- turing operations with related materials wood fiberboard urethane calcium silicate asphalt polyester resins and mineral fiber ceiling board prin- cipal The principal products produced and prin- cipal markets for and methods of distribution of Company's principal products by industry segment are as follows Insulation and Construction thermal and acoustical insulation products are sold primarily to building material distributors modular and mobile home manufacturers contractors wholesale and retail building sup- ply houses general retailers and through ply on supply outlets Thermal and acous- tical insulation is used for residential and com- mercial buildings including mobile homes Thermal and acoustical insulation for auto- mobiles trucks aircraft hot and cold appli- ances ment heating and is also sold and air conditioning equipto fabricators and original equipment manufacturers Roofing shingles are sold through building materials distribu- tors roofing distributors mobile home and manufactured housing manufacturers chain stores and Co.'s own supply outlets Roof in sulation built roofing systems and asphalt and protective products for built roofing and are sold directly to contractors through through distributors including Co.'s own sup outlets Asphalt is sold directly to manu- plyfacturers of asphalt roofing products Acousti- panels cal ceilings and are sold to contractors wholesalers retail chains and building supply ceiling outlets Integrated primarily to contractors systems are Sound dividers sold and wall panels for office interiors are sold through agents and contract furniture dealers Wood fiberboard products are sold to whole- salers distributors aluminum siding manu- facturers mobile home manufacturers and building supply outlets Mineral fiber ceiling products are sold to acoustical contractors and distributors building material distribu- tors retail mass merchandisers and Co.'s sup ply outlets Insulation for piping tanks and equipment and calcium silicate insulation for high temperature uses are sold to industrial insulation contractors and distributors Insulation for engineered buildings is sold to fabricators Insulation for marine and cold storage uses is sold to specialty contractors Insulation and acoustical lining for air ducts and handling duct systems are sold to air handling and industrial distributors Urethane foam insulation is sold in liquid form to con- tractors and in rigid forms to fabricators Glass fiber reinforced underground and storage aboveground tanks are sold primarily to end users and original equipment manufac- pipes turers diameter are sold to end users and manholes Glass fiber reinforced molded bathroom components are sold to plumbing wholesalers In addition Co. pro- vides contract installation services for me- chanical insulations interior construction marketing and erection of fabric structures insulation of cold storage facilities marine insulation and power and process plant insula tion systems Industrial and Textile fiber reinforce- ments for industrial rubber goods plastics or thermoplastic compounds and resins and gel- coats for reinforced plastics applications are sold principally to molders and fabricators of automotive bodies and components and appli- ance and equipment housings Glass fiber re- inforcements are also sold through distribu- tors and Co.'s own supply outlets Rubber im- glass fiber cord pregnated facturers who produce fiber belted tires Glass is sold to tire manu- glass fiber radial or roving strand and mat reinforcements for plastics paper tape rubber belts hose and gypsum board as as well yarns for decorative and industrial fabrics electrical insulation insect screening and other applications are sold directly or through distributors to molders fabricators and manufacturers Chopped strands for non- woven glass fiber mat are used by co and oth- er shingle manufacturers in manufacturing shingles This mat is also sold for other industrial applications Glass fiber reinforced plas- by tic products manufactured customers of Company encompass boat hulls building pan- els recreational vehicles sporting goods fur- niture and a wide range of consumer products corrosive tanks pipe and equipment electrical and electronic components and pressure laminates Company also selis glass fiber yarns directly to textile weaving companies for weaving and processing into industrial uses and decorative fabrics International fiber yarns roving and chopped strand mats are sold through distributors or directly to molders fabricators and manufacturers of electrical automotive plastic corrosion weaver and tape products Exports from the United States include prod ucts of both Insulation and Construction and Industrial and Textile segments PROPERTIES The principal plants of the Company and subsidiaries are owned in fee except as noted and are located as follows General Thermal & Acoustical Insulation Products Santa Clara Cal Newark O. Kansas City Kans Waxahachie Tex Barrington N.J. General Thermal Insulation Products Fairburn Ga Berlin N.J. Delmar N.Y. Mechanical Insulations Guararema Brazil Textile Huntingdon Huntingdon Pa Ashton R.I. Aiken S.C. L'Ardoise France Amarillo Tex Products Anderson S.C. Jackson Tenn Battice Belgium Rio Claro Brazil Roofing Products Atlanta Ga & Asphalt Processing Martinez Cal Brookville Ind Medina O. Compton Cal Denver Colo Detroit Mich Memphis Tenn Minneapolis Minn Morehead City N.C. Ft Lauderdale Fla N. Kansas City Mo. Hazelwood Mo. Oklahoma City Oka Houston Tex Portland Ore Irving Tex San Leandro Cal Jacksonville Fla Summit III Jessup Md Waltham Mass Kearny N.J. Woods Cross Ut Lubbock Tex Wood Fiber Products St. Helens Ore Meridian Miss Organic Felt Products Atlanta Ga Brookville Ind Jacksonville Fla Emmaus Compton Cal Denver Col. Memphis Tenn Portland Ore Smaller asphalt processing plant leased Smaller plants for fabrication of glass fiber reinforced storage tanks are located at Valpa- raiso Ind Conroe Tex which also produces large diameter pipe and Bakersfield Cal A small plant for production of resins and coat ings is located at Valparaiso Ind A small from for fabricating glass fiber fabric woven from Fiberglas Beta yarn with DuPont Teflon coating is owned at Hazleton Pa A small plant for fabrication of molded bath- room fixtures is leased at Huntsville Ala Leased premises of approximately 200,000 square feet at Bloomington Ill are used for production of chemical foams fices In addition Co. occupies for its general of fices approximately 247,000 square feet of space in the Fiberglas Tower in Toledo O. Also occupies for general office use approx 438,000 sq ft space in other buildings in do O. Tole- Co. United operat house ies In faciliti with th Co. outsid twelv with 15,000 appro Am mines Inyo ( able rt Borat Wells shippi MANS W.W. Fowl R.W. C.E. R.A. AS Cash Time MOODY'S INDUSTRIAL MANUAL 4013 Co. also leases facilities throughout the United States to house Contracting Division operations in 23 cities Supply Division warehouses in 65 cities and Sales Offices in 84 cities In a number of cities two or more such facilities are grouped on the same premises with the principal ones under term lease Co. owns approximately 800 acres of land outside Granville O. which is occupied by twelve buildings These buildings together with eight other accessory buildings and a 15.000 sq ft warehouse comprise a total of approx 652,000 sq ft of floor space American Borate Co. owns ore bodies and mines containing colemanite and probertite in Inyo County California with estimated probable reserves of 31,000,000 tons The American Borate Co. has a processing plant at Lathrop Wells Nevada and a grinding blending and shipping plant at Dunn California MANAGEMENT Officers W.W. Boeschenstein Pres & Chief Exec Off Fowler Blauvelt Exec Pres R.W. Muzzy Exec Pres C.E. Peck Exec Pres R.A. Yudkin Senior Pres Office of Chief Exec T.W. Bretz Senior Pres Finance & Law & R.C. Senior Doban PresiLd.We.nStaxsby G.O. Mabry W.M. Ketner Presidents Gregoire Amory J.J. Doherty M.D. Burch E.P. Lindsay R.L. Loflin J.D. Menton F.W. Como R.P. Mulligan M.P. Crowther M.T. Nemeyer W.H. Curtiss Jr. P.V. Daverio B.C. Oelman C.A. Poole B.E. Elliott C.C. Gifford F.L. Purtil R.W. Roth R.S. Grant H.A. Rudolph J.S. Hearons D.J. Hensler R.E. Trumbull O.E. Vidalis Severn Joyce J.F. Vyverberg J.P. Kern J.P. Detgen J.B. Jenks M.O. Weber R.B. Kline J.J. Young T.H. Lautenbach H.G. Kaminer Vice & Treas C.P. Hauck Pres & Controller Directors Showing Principal Corporate Affiliations Charles A. Anderson Dir & former Pres SRI International Fowler Blauvelt Exec Pres OwensCorning Fiberglas Corp. William W. Boeschenstein Pres Chief Exec Off Corning Fiberglas Corp. Louis W. Cabot Chmn of Bd Cabot Corp. W.L.H. Griffin Chmn of Bd & Chief Exec Off Brown Group Inc. James M. Kemper Jr. Chmn & Pres Commerce Bancshares Inc. Robert H. Knight Partner Shearman & Sterling New York Richard W. Muzzy Exec Pres OwensCorning Fiberglas Corp. Cheries E. Peck Exec Vice OwensCorning Fiberglas Corp. Robert V. Roosa Partner Brown Brothers Harriman & Co. Auditors Arthur Andersen & Co. Shareholder Relations Harry G. Kaminer Treasurer Donald W. MacDonald Asst Treasurer Tel 248-8279 Director Meetings Fourth Thursday of Jan. and third Oct. Thursday of Mar. Apr. June Aug. Dec. Annual Meeting Third Thursday in Apr. No. of Stockholders Dec. 31 1980 12,888 No. of Employees 1980 average 24,000 General Office Fiberglas Tower Toledo OH 43659. Tel 248-8000 INCOME ACCOUNTS CONSOLIDATED Taken from reports Net sales .. Other Total revenues Cost of sales eee .....--w - r- en - s eee cere ee eee Marketing & administrative exp ....... Research & development expenses ......-Other technical service expenses .......- ne Cost of borrowed funds . State & local inc & franchise taxes .......- loss eee eee Cash discounts ........0.025 Foreign currency exchange loss ... ...... Other expenses .... 6... eee eee crete eee 1980 2,285,067 28,052 2,313,119 1,851,734 251,060 39,514 18,764 32,715 6.845 20,553 164 38.604 INCOME ACCOUNT YEARS ENDED DEC 31 filed with the Securities and Exchange Commission in thousands 1979 2,245,164 19,279 of dollars 1978 1,853,101 20,876 1977 1,480,454 17,316 1976 1,079,227 18,788 2,264,443 1,734,013 222,350 33,478 15,577 22,164 12,960 20,909 2,577 21,707 1,873,977 1.354,437 186,487 25,179 13,763 13,151 16,248 17,849 1,778 16,744 1,497,770 1,065,862 152.802 19,895 9,659 12,602 12,086 13,440 2,001 12,177 1,098,015 786,374 124,099 15,221 8,566 13,394 8.338 8,448 1,697 7,527 1975 884.936 13,191 898,127 671,533 98,745 15,447 6,978 14,319 4,829 6,289 cr1,960 5,565 1974 628,482 11,808 840,290 650,581 93,152 15,153 6,292 11,433 3,061 6,060 3.003 4,983 Income bef national inc taxes & equity in net inc of affiliates ...... Current national income taxes Deferred national income taxes . Inc. bef equity in net inc of affil Equity in net income of affiliates ......+ Net income .........-------- Retained earnings beg of year . . Less common cash dividends .-......---- 53,166 15,123 cr4,509 42,552 11,769 54.321 622,339 36,703 178,708 64,400 8,173 106,135 3,131 109,266 549,611 36.538 Retained earnings end of DATA . SUPPLEMENTARY P. L. DATA Maintenance & repairs .........660005- Depreciation & amortization .........-Taxes other than national inc ..... . RenRts ents Advertising expense . 66 eee ce ee ee eee 639,957 139,891 109,820 63,494 36,309 24,741 622,339 129,031 90,100 68,011 30.056 22,472 Includes related portions of items shown under Supplementary P. & L. Data below statement Company had adopted the provisions of Finan- cal Accounting Standards Board Statement No. in all 1975 and has charged to income foreign currency exchange gains and losses Such gains and losses pre- viously had been deferred and amortized to ifinance ncome been life over the life of the term debt used to finance financial financial equipment foreign foreign plant and equipment The financial state- ments have restated to reflect such gains and losses in income in the year incurred Includes social 41,960,000Consolidated Statement Consolidated security taxes 1980 of Statement Changes in Finan- cial PositionPosition years years ended 1980 Dec. 31 in 000) 1979 Cash & securities beg of year Sources of Cash Net income .......-Deprec & amort .... 53,070 54,321 109,820 34,165 . 109,266 90,100 Prov for rebldg furnaces & recond machines . Incr def inc tax .... Eq in affil inc . . Amort invest cr in receiv Chng in receiv .... in Chng in invent ..... Accts paypay & accr. pay lialb iab inc eee eee Accr Accr nat inc tax All other net Tot from oper Borrowings . Advances on contracts -......- Invest credit on prop add ......Divs from affil 228,341 97,846 7,104 123,391 6,948 130,339 445,079 25,807 549,611 101,666 62,787 59,296 22,750 15,205 21,445 4,509 dr11,769 dr8,307 dr3,616 23.268 22,052 dr815 dr7,993 193,897 109,464 9,550 15,538 7,145 197,246 82,659 7.984 106,603 5,909 112,512 349.881 17,314 124,351 55,618 1,513 67,220 4,553 71773 292,622 14,514 445,079 349,881 79,522 50,506 48,519 16,748 13,481 61,189 47,290 37,303 14,612 11,498 Com stk issued . 76,382 30.256 4,845 41,281 522 41,803 263,914 13,095 292,622 55,814 43,873 28,901 14,161 8,886 2,651 23,866 8,173 dr3,131 dro dr73,648dr73,648 dr73,648dr73,648 dr32,449 53,365 drt1,466 drt1d,r4t616,466 dr4,710 153,071 101,435 9.607 21,298 412 Total ......... . Uses of Cash Add to plant & equipment Purchase of American American Borate Corp Mineral properties Long ... Decr in debt . Cash divs paid Expend for rebldg furnaces & . recond machines Invest in affil ...... Total .......... Cash & securities end of year ...... 391,315 175,972 =. -- wee ees 126,299 36,703 26,170 198 365,342 25,973 46.572 14,905 5,873 25,794 7,039 32,833 244,174 13,093 263,914 4,542 33,438 27,496 13,862 8,726 2.509 322,497 184,329 58,212 dr42,300 10,413 36,538 15,271 6.964 269,427 53,070 Record of Earnings years ended Dec. 31 in 000 Net Sales Cost and & Revs Expenses Balance 1968 ....... 1969 ..000. 1970 1971 ere 1972 1973 1974 433,500 492.200 492.200 541,600 623,600 739,560 840,290 390,600 437,200 448,300 490,900 540,600 644,242 765,178 765,178 42,900 55,000 43,900 50.700 74.000 95,318 75,112 Adj for for stk split July 1970 and May 1978 Before equity in net income of affiliates 1968 1,300,000 See footnote under Income Accounts above Other Deduct 4,800 7,700 8,300 8,600 11.700 22,535 28,540 Income Bef Taxes 38,100 47.300 35,600 42,100 62.300 72,783 46,572 Income Taxes 19,200 23,600 15,800 19.500 28,600 33,845 20,778 Net Income 18,900 23,700 19,800 22,600 33,700 38,938 25,795 1969 2,400,000 1970 2,000,000 1971 1,100,000 1972 Common Dividends 10,069 10,183 10,615 11,127 11,634 12,554 13,093 3,400,000 Com Shs Outstdg 28,802.000 29,056,000 29.276.000 29,368,000 29,520,000 29,694,000 29,757,000 5,454,000 1974 Earn Com Sh 0.71 0.90 0.75 0.83 1.26 1.50 1.10 7,093,000 BALANCE SHEETS Taken CONSOLIDATED BALANCE SHEET AS OF DEC 31 from reports filed with the Securities and Exchange Commission 1980 2,576 23,397 in thousands of dollars 1979 1978 22,827 30,243 3,599 30,566 1977 2,327 109,357 1976 7,684 139,866 1975 2,899 80,201 1974 6,833 1,250 4014 MOODY'S INDUSTRIAL MANUAL BALANCE SHEETS Cont'd Marketable securities ...........0..05055 Receivables 20.2e. ee e0 ee. cee. ee e. ens Inventories . rece eee . current Total assets Investments in affiliates assets Prepaid expenses & other assets .......-.. Less at cost & equipment ............. accum depreciation .............. 1980 eee 354,615 \ 162,789 543,377 58,788 52,076 1,499,463 619,874 1979 eee 350,999 186,057 590,126 - 4.194 38,206 1,343,939 524,853 1978 eee 277,351 153,608 465,124 43,837 32,331 1,118,078 449,594 1977 tee 217,077 122,375 451,136 41,367 27,755 884,844 396,417 1976 18,492 158,028 80,217 404.287 35,289 22,107 729,879 354,820 1975 14,902 136,267 81,337 315,606 32,305 19,811 699,206 317,011 1974 3,006 115,464 88,342 214,895 33,161 18,985 665,983 281,156 Net plant& equipment .............. 879,589 819,086 668,484 488,427 375,059 382,195 384,827 Total LIABILITIES 1,533,830 1,501,612 1,209,776 Short debt ............ ences portion Long current portion 20,749 9,269 130,104 8.442 44,686 6,627 309,638 236,539 Accounts payable & accrued liab 289,904 3,881 4,696 Accrued national income taxes ........... 16,162 4,696 16,162 16,162 16,162 Dividends payable ................ eeeeee keene 1,008,685 9,572 8,581 178,656 28,466 4,524 836,742 8,476 9.284 119,884 23,682 3,749 749,917 10,231 4,187 94,653 20,151 3,274 651,868 17,970 5,244 72,922 3.245 3,274 Total current liabilities ............. Long debt errr ns Reserve for rebuilding furnaces & reconditioning machines machines . Deferred investment credit . Deferred national income taxes ...... tenes Advances on contracts ........-.cccee- par Common stock ) bees Retained earnings 2.06... e sees 343,537 284,238 36,412 48,305 40,088 21,475 119,818 639,957 433,146 192,545 41,137 41,074 44,597 9,607 117,167 622,339 304,014 146,456 229,799 149,000 165,075 154,518 132,496 168,393 102,655 140,235 32,542 26,071 36,424 26,503 19,305 29,320 23,795 16,512 21,336 20,254 15,986 19,823 16,098 13,652 14,978 center 114,658 549,611 109,679 445,079 105,625 349,881 100,343 292,622 100,336 263,914 Stockholders equity ...... be vececese 759,775 739,506 664,269 554,758 455,506 392,965 364,250 Total .. ccc cece eee eeee proces oeeee Net current assets .......... eases cenee PROPERTY ANALYSIS ANALYSIS ANALYSIS Additions at cost or sales eeeeeeseee DERePtRiEreCmIenAtTsION Other changes cree e nese nner nee nnaes RESERVES Additions charged to cost . Retirements or > Other changes ..... weet cece ees 1,533,830 199,840 175,972 19,887 109,820 14,799 tee eee 1,501,612 156,980 184,329 21,580 63,112 90,100 17,470 2,629 1,209,776 61,110 246,260 13,026 rare 62,787 9,610 cease 1,008,685 221,337 99,380 67.351 67.351 0,506 8,909 weeeee 836,742 5 239,212 43,721 11,801 1,247 47,290 9,481 nee 749,917 183,110 43,820 10,597 cece 43,873 , 8,018 651,868 112,240 92,316 11,271 beet 33.438 7,851 Less allowance for collection losses 1980 9,978,000 1980 comprised of Inventories on first firstout Finished goods 130,894,000 materials and supplies 100,560,000 LIFO reserve for certain raw materials 68,665,000 Total 162,789,000 - 1980 comprised of Cost Deprec Land . 25,614,000 5,000 Bldgs & leasehold improv ........ Mach & equip +. Mineral prop ....... 317,547,000 1,004,157,000 110,843,000 125,379,000 485,712,000 8,778,000 Construct in prog 41,302,000 ...... Total Restated 1,499,463,000 619,874,000 Restated in 1975 for accounting change See number footnote under Income Accounts above For number of shares outstanding see Statisti- cal Record below purchase acquired in and Trumbull Asphalt of Fry Roofing Co. 1977 on Co. Apr. 20 fixed Includessubsidy received for addition to fixed assets at a plant in France which is being amortized to income over the life of the assets Principles General Notes a Principles of Consolidation The consoli- dated financial statements include the ac- intercompa- counts of subsidiaries Significant ny accounts and transactions are eliminated b Foreign Operations Accounts of foreign subsidiaries and affiliates are maintained in the currencies of the countries in which they operate Accounts representing cash and amounts receivable or payable are translated to U.S. dollars at exchange rates prevailing at year Other assets and liabilities are translated at exchange rates in effect when ac- quired or incurred Revenue and expenses for month generally are translated at the av- erage rate of exchange in effect during the month Foreign currency exchange gains and losses are reflected in income c Inventory Valuation Inventories are stated at cost primarily using the last first method which is less than market value and include material labor and manu- overhead facturing operations d Contracting operations Revenues and related costs of contracting operations are recorded using the completion method of accounting Percentage tion is determined on contracts in progress on total costs incurred and expected to bbeasiendcurred in in e Investments in Affiliates Investments in affiliates are accounted for using the equity method earnings Company's under which of these affiliates is share of reflected in in- come as earned and dividends are credited against the investment in affiliates when re- ceived f Depreciation Substantially all of Co.'s plant and equipment is depreciated using ac- celerated methods Generally the double clining balance method is used for the first half of an asset's estimated useful life and the straight method is used thereafter g Reserve for Rebuilding Furnaces Co.'s glass melting furnaces and related machines rebuilding periodically require substantial The estimated future cost of such rebuilding is charged to income and credited to the reserve on a straight basis over the estimated period to the next rebuild date Actual costs are charged to the reserve when the furnaces are rebuilt h Income Taxes Certain income and ex- pense items are reported in different periods for financial statements and for income tax de- termination In addition for financial state- ment purposes investment tax credit on property additions is amortized to income over the useful lives of the assets to which it applies applies The cumulative effect of noncurrent differences between amounts reported for fi- nancial statement purposes purposes and for tax pur- poses is shown as deferred national income taxes and deferred investment tax credit on the balance sheet Income taxes on the Com pany's share of equity in income of affiliates are ate provided at the foreign tax rates higher of U.S. or appropri Where the Company has permanently reinvested the earnings of its for eign subsidiaries outside the United States no provision has been made for United States in- come taxes FINANCIAL & OPERATING DATA Statistical Record Earned per common Year shares ....... Cece eeeesesaee shares ............. DiAvivdeerndasge 00. eeee per common ....... eee Price common ............... tees Net tangible assets per sh.- common ..... Times charges earned 1980 1.77 1.78 1.20 32 34.93 1979 3.58 3.59 1.20 31-24 31.62 1978 4.29 4.30 1.30 35 27.64 1977 7.46 7.48 1.10 7314-58 36.79 1976 4.79 4.80 0.94 -42 30.38 Before income taxes . Oe ebeteves After income taxes ..... eee eeceoer svaee Price range 6 s1994 eaveeee 92000 deb ce risecrcceecenseses Net tang assets per 1,000 1.-t. debt ....... Net curr assets per 1,000 1. debt ...... . Year common shares Weighted average common shares prices As reported by Company Bipdrices 2.99 2.66 801-65 nena 3,764 703 30,628,063 30,584.131 After for split 9.20 18.89 5.93 10.91 -75 92-88 100-98 104-104 5,007 5,733 815 1,100 30,489,521 30,378,593 30,449,406 30,334,936 before 66-includes 0.60 17.12 9.93 91-81 eee 4,723 1,485 15,079,258 15,045,363 paid prior to 10.62 6.36 91-81 ke aes 3,948 1,548 14,995,742 14,948,626 for split 1975 2.81 2.81 0.88 -25 26.41 6.37 3.92 -78 100-99 3,334 1.101 14,880,672 14,880,000 1974 2.21 2.21 0.88 -25 24.48 5.69 3.87 89-72 399 3.597 805 14,880,472 14,878,000 Adjusted data for stock splits and stock dividends Earned per common On year end shares tenes On average shares . 1.77 1.78 Price common . Net tangible assets per common Number of common 32.125-22.25 34.93 At year common common 2.2.0.0. ee . n . s Average shares .. Financial & Operating Ration Current current liabilities . 30,628,063 30,584,131 1.58 % cash & securities to curr assets % inventories to current assets .. % net current assets to net worth 4.78 29.96 26.30 % property depreciated ........ Capitalization annual depr etc. to gross prop Capitalization % long term debt ...-...-ceee ceee aes % common stock & surplus ............ Sales + inventories ..................4.. 41.34 7.32 27.23 72.77 14.04 3.58 3.59 31.00-24.38 31.62 30,489,521 30,449,406 1.36 8.99 31.53 21.23 39.05 6.70 20.66 79.34 12.07 4.29 4.30 35.13-24.50 27.64 30,378,593 30,334,936 1.53 7.35 33.03 24.25 40.21 5.62 18.06 81.94 12.06 3.73 3.74 36.63-29.00 18.39 30,158,516 30,090,726 1.96 24.76 27.13 39.90 44.80 5.69 21.17 78.83 12.10 2.39 2.40 32.50-21.00 15.19 29,991,484 29,897,252 2.45 41.07 19.84 2.52 48.61 6.48 25.33 74.67 13.45 1.40 1.41 22.88-12.63 13.21 29,761,344 29,760,978 2.38 31.05 25.77 46.59 34 6.27 30,00 70.00 10.88 1.10 1.10 25.88-12.63 12.24 29,760,944 29,756,566 2.09 5.16 41.11 30.81 42.22 5.02 27.80 72.20 9.38 par SIN func plus sidi net cert deb fav tair SECI stri rest fun 858 DI pay ext 31 or aS} A sali mo and val to RI del -- est IN tui tui MOODY'S INDUSTRIAL MANUAL FINANCIAL & OPERATING DATA Cont'd Sales receivables ........... Secor eee 6 eee O sales to net property .... cec . e . O sales to total assets .........--56---5-- % income to total assets .........-..-. % net income to net worth ...--.......--+ Analysis of Operations Total revenues 2... cs cece cece ree eres Cost of sales See e cere neces Marketing&& admin expenses ..........-- Research development expenses ........- Other technical service expenses .......... Cost of borrowed funds , bees & local inc & franchise taxes ........ SFtoarteeign currency exchange loss ........-- Cash discounts ...... 6.0 e cece e cece eens 1980 6.44 259.79 148.98 3.54 7.15 % 100.00 80.05 10.85 1.71 0.81 3.41 0.30 0.01 0.89 1979 6.40 274.11 149.52 7.27 14.78 % 100.00 76.58 9.82 1.48 0.69 0.98 0.57 0.11 0.92 1978 6.68 277.21 153.18 10.77 19.62 0 100.00 72.28 9.95 1.34 0.73 0.70 0.87 0,09 0.95 1977 6.82 303.11 146.77 11.15 20.28 % 100.00 71.16 10.20 1,33 0.64 0.84 0.81 0.13 0.90 1976 6.83 287.75 128.98 8.58 15.76 % 100.00 71.62 11.30 1.39 0.78 1.22 0.76 0.15 0.77 1975 6.49 231.54 118.00 5.57 10.64 % 100.00 74.77 11.00 1.72 0.78 .59 0.54 cro.22 0.70 1974 7.18 215.29 127.09 5.04 9.01 70 100.00 77.42 11.09 1.80 0.75 1.36 0,37 0.36 0.72 Other expenses taxesnet Inc. bef national inc taxes & equity in net equityin net inc of affiliates '...6.6... National income taxes Inc. bef equity in net inc of affil . Equity in net income of affiliates - : Net income .. afilates affiliates. eee eeee 1.67 2.30 0.46 1.84 0.51 2.35 0.96 7.89 3.20 4.69 0.14 4.83 0.89 12.18 5.60 6.58 0.37 6.96 0.81 13.17 6.05 7.12 0.39 7.5 0.69 11.32 5.20 6.12 0.42 6.54 0.62 8.50 3.91 4.59 0.06 4.65 0.59 5.54 2.47 3.07 0.84 3.91 LONG TERM DEBT SINKING Annually each Jan. 1. CALLABLE a whole or in part at anyany 1981-99 cash or debs to retire not less than time on at least 30 but not more than 60 days 1. Corning Fiberglas Corp. sinking fund 2,500,000 nor more than 5,000,000 principal notice to each Apr. 30 as follows debenture 6 sdue 1984 amount of debs Sinking fund designed to re- 1981 ..... 110.00 1982 1.109.40 1.109.40 1983 .108.80 .108.80 Rating tire % of issue prior to maturity 1984 .108.20 .108.20 1985 ..... 107.60 1986 ..... 107.00 30,000,000 outstg Dec. 31 1980 SECURITY secured Co. nor any re- 1987 ..... 106.40 1988 ..... 105.80 1989 ..... 105.20 18,874,000 stricted subsidiary may not incur assume or 1990 ..... 104.60 1991 ..... 104.00 1992 ..... 103.60 1993 DATED , 1969. DUE 1 1994 guarantee any debt secured by a mortgage on 103.20 1994 ..... 102.80 1995 .102.40 .102.40 INTEREST to holders registered on any principal property owned or leased by Co. 1996 102.00 1997 .101.60 .101.60 1998 101.20 15th day prior to interest date or a restricted subsidiary or on any shs of 1999 thereafter 100.80 2000 ..... 100.40 TRUSTEE TRUSTEE Not callable TRUSTEE Morgan Guaranty Trust Co. stock or debt of any restricted subsidiary and thereafter at 100. however NYC DENOMINATION_Fully registered 1,000 without securing or causing such restricted subsidiary to secure the debs equally and prior to May , 1990 thru refunding at an in- terest cost of less than % per annum Also and authorized multiples thereof Inter- ratably with or prior to such debt unless the callable for sinking fund which see at 100 changeable without service charge aggregate amount of all such debt so secured SINKING FUND Annually May 4,300,000 1988- CALLABLE a whole or in part on at with all attributable actions involving 2009 sufficient to redeem at least 4,300,000 least 30 days notice to each Jan. 31 incl as together principal properties owned debt in respect of but not more than 10,750,000 principal similar optional follo1w0 s 2.530 1983 102.231 1984 101.912 safe and leaseback transactions involving amount of debs plus ments Sinking fund is designed pay to 94 of 1982 1985 ..101.594 1986 101.275 1987 .... 100.956 principal properties owned or leased by Co. or not exceed % debs prior to maturity 1988 ..101.594 100.638 1989 100.319 1994 .. 100.000 a restricted subsidiary would of consolidated net tangible assets of Co. and SECURITY secured Same as s.f deb Also callable for sinking fund which see at its consolidated subsidiaries This restriction % 1994 SALE AND LEASEBACK as a.f. deb par will not apply to debt secured by B mort- SINKING 2000 SINKING Annually each Feb. , INDENTURE beginning 1975 to retire debs cash or debs gages on property of or on any shs of stock or debt of any corporation existing at the time INDENTURE MODIFICATION be modified except as provided equal to 1,500,000 plus similar optional pay- such corporation becomes a restricted subsidi- ture may with consent of 66 of debs outstg ments Co. and restricted ary b mortgages in favor of Co. or a re- RIGHTS ON DEFAULT or 25 and SECURITY secured stricted subsidiary ) mortgages in favor of of debs outstg may declare principal due subsidiaries may not incur assume or guaran- tee equally secured may debt assume U.S. governmental or advance bodies to secure progress bodies mortgages on prop- payable (30 LISTED days grace for payment of inter- secured payments debs and ratably unless secured erty shs of stock or debt existing at the time New York Stock Exchange equally LISTED funded debt of Co. and restricted subsidiaries plus unsecured funded debt of restricted sub- of consolidated of acquisition thereof including acquisition thru merger or consolidation purchase mon- PURPOSE will be used to reduce commercial paper sidiaries does not exceed % OFFERED the include ey mortgages and construction cost mort- OFFERED 100,000,000 at 100 plus at- foregoing net worth Exceptions to with subsidiaries funded and mortgages any extension renewal or re- crued interest proceeds to Co. 99.125 on certain transactions gages debt resulting from of property in funding of any mortgage referred to in the May Freres 1980 thru Goldman Sachs & Co La- instrumentality favor of U.S. or instrumentality to secure cer- foregoing clauses a thru d inclusive The will restrict the incurring of zard Freres & Co. and associates tain payments or extensions of unrestricted indenture not 4. Assumed Debt Corning Fibergias Ft- secured funded debt or secured funded of re- unsecured debt by Co. or its subsidiaries TRANSACTION guaranteed sinking fund debenture 96 ndaunece N.V. stricted subsidiaries outstg Feb. 1 1969 SALE & LEASEBACK : ADDITIONAL FUNDED DEBT and restricted subsidiaries may not create senior Co. nor any restricted subsidiary may not enter into any sale and leaseback transaction in- 20,000,000 12,500,000 outstg Dec. 31 1980 DATED Aug. funded debt unless consolidated net tangible volving any principal property owned or 1 1971. DUE 1 1986 assets are at least 200 of such debt leased by Co. or a restricted subsidiary com- INTEREST 1. Principal and interest DIVIDEND RESTRICTION may not pletion of construction and commencement of payable in U.S. currency a at corporate pay cash divs on or acquire capital stock in full operation of which has occurred more trust office of Morgan Guaranty Trust Co. excess of consolidated net income after Dec. than 120 days prior thereto unless a Co. or NYC and subject to applicable laws in following 31 1968 plus from sale of stock such restricted subsidiary could create debt country of following offices Morgan Guaran- converted proceeds debt converted into stock after such date secured by a mortgage on such property in an ty Trust Co. in Brussels Frankfurt Main or amount equal to the attributable debt with re- London Paris and Zurich and the main offices plus 25,000,000 not effect spect to the sale and leaseback transaction of Bank Mees & Hope N.Y. in Amsterdam SALE & LEASEBACK may sale and leaseback for periods in excess of 24 without equally and ratably securing the debs Kredietbank S.A. Luxembourgeoise Banca plants at months of any or equipment owned owned or b Co. within 120 days applies to the re- Morgan Vonwill S.p.A. in Milan as agencies and operated for more than 90 days unless fair tirement of its funded debt an amount equal to of the sale of which at option of holder principal of and inby check drawn value is received and net proceeds are the greater of ) the net proceeds terest on debs will be payable ae applied to debs or other senior funded debt the principal property leased pursuant to such maintained or by transfer to a U.S. dollar account RIGHTS RIGHTS ON DEFAULT or 25 of arrangement or ii the fair value of the princi- maintained by with a bank in NYC Trustee Morgan debs outstg declare principal due and pal property so leased subject to credits for Morgan Guaranty Trust Co. may TRUSTEE payable 30 days grace for payment of inter- certain voluntary retirements of funded debt This restriction will not apply to any sale and NYC DENOMINATION coupon 1,000 est or sinking fund leaseback transaction a between Co. and a CALLABLE a whole or in part on or af- MODIFICATION MODIFICATION INDENTURE restricted subsidiary or between restricted ter Aug. 1 1979 on at least 30 days notice to provided ture may be modified except as subsidiaries or b involving the taking back each July 31 incl as follows with consent of 66 of debs outstg or a lease for a period of 3 yrs or less 1980 102.000 1981 101.600 1982 .. - .101.200 100.800 LISTED New York Stock Exchange RIGHTS ON DEFAULT or % 1983 .... 1984 . 100.400 obligated obligated PURPOSE for capital expendi- of debs outstg may declare principal payable If at any time Co. shall become obligated tures OFFERED at 99 proceeds and due 30 days grace for payment of inter- to pay additional additional interest as a result of the any est or fund installment in or amendment to laws of U.S. or sinking change to Co. 98 on Feb. 11 1969 thru Goldman INDENTURE MODIFICATION the Netherlands Antilles or any subdivision provided Sachs & Co. Lazard Freres & Co. and White be modified except as or taxing authority thereof or therein affecting Weld & Co. and associates ture may with consent of 66 of debs outstg taxation or change in an official application in 2. Corning Fiberglas Corp. sinking fund LISTED New York Stock Exchange or interpretation of such laws or change or debenture 9sdue 2000 PURPOSE to repay the outstg amendment to an official application or inter- Rating loan balance under Co.'s revolving credit pretation of or execution of any treaty or trea- 50,000,000 outstg Dec. 31 1980 agreement and for capital expenditures ties affecting taxation to which the U.S. or the 45,000,000 Funds not required immediately may be add- Netherlands Antilles is a party which change DATED 1 1975. DUE 1 2000 ed to general funds of Co. or temporarily in- amendment application interpretation or ex- effective after Aug. 11 regis- INTEREST 1 by mail to holders regis- vested in short securities 99.25 proceeds ecution becomes on or 1971 debs may beredeemed as a whole on at tered D 15 TRUSTEE N.A. NYC OFFERED at to Co. 98.375 on Dec. 19 1974 thru Goldman and White least 30 days notice at 100. Also callable for fund which see at par DENOMINATION_Fully sinking DENOMINATION_Fully registered 1.000 of and integral multiple thereof Inter- Sachs & Co Lazard Freres & Co. Weld & Co. Inc. and associates SINKING FUND Annually each Aug. , or not changeable debs changeable without service charge 3. Corning Fiberglas Corp. sinking fund 1975-79 to retire debs cash less than 1,000,000 principal amount of debs CALLABLE CALLABLE a whole or in part at any debenture 12s due 2010 1,500,000 in each of the years beginning Aug. time on at least 30 but not more than 60 days notice to each Dec. 31 as follows Rating 100,000,000 outstg Dec. 31 1980 1 1980 thru 1982 and 2,500,000 in each of the beginning Aug. 1 1983 thru 1985 years begin ing 1981 .106.125 1982 105.688 1983 105.250 SECURITY Direct unsecured obligation of 1984 104.813 1985 .104.375 1986 ..., 103.938 100,000,000 1987 103.500 1988 103.063 1989 102.625 DATED 1 1980. DUE , 2010 issuer & to 11909930 1 10 00 2. .8 17 85 8 11999914 . 1.0 . 01.014.3 7580 1992 101.313 I O NT 15EREST 1 to holders registered GUApR reA miuN m iT f aE nyE anD d interest by principal PRINCIPAL Corp. Not callable however prior to Jan. 1 1985 T DENR OMU INS ATT IOE N_E FulN.lAy. registered 1,000 TA CX or En Sin OgN PRINCIPAL PREMIUM OR fund thru refunding at interest cost less than 9.68 and integral multiple thereof Inter- INTEREST will pay as additional inter- sinking per annum Also callable for changeable be which see at 100 changeable without service charge est such amounts as may necessary to re- 4016 MOODY'S INDUSTRIAL MANUAL imburse non resident alien holders for any present withholding witholding or future tax U.S. or Netherlands Antilles RIGHTS ON DEFAULT or 25 of debs outstg , may declare principal due and payable est 30 days grace for payment of inter- INDENTURE MODIFICATION ture may be modified except as provided loaned by with consent of %% of debs outstg PURPOSE to be Corning Fiberglas Corp. Co. OFFERED at 100 thru Gold- man Sachs & Co Lazard Freres & Co White Weld & Co. Ltd Union Bank of Switz- erland Ltd. and associates 117,383,000 6. Other Long Term Debt Outstg Dec. 31 1980 $ as follows 1 33,400,000 notes due June , 1988 4.2 subject to annual prepayments of 4,150,000 2 3,628,000 42-144 capitalized lease due from 1981 thru 1997 subject to an- nual prepayment in in- payablepayable 3 5,693,000 notes due in 1983 at terest and due 1990 at % interest payable in- in French francs 4 34,000,000 8 note due 2000 5 10,477,000 % to % notes due from 1980 through 1993 in 6 13,038,000 % note due 1984 payable in Belgian francs in 7 1,587,000 10note due in 1987 pay- able in Belgian francs industrial industrial 8 15,560,000 -9... industrial reve- nue bonds due through 1997 its Under the provisions of its various loan agreements Company has agreed to restric- tions on payment of cash dividends distribu- tion or repurchase of its common stock the making of foreign investments and maintenance of minimum net working capital At Dec. 31 1980 under the most restrictive provisions 121,700,000 was available for cash dividendsdends reacquisition of stock and foreign in- vestments CAPITAL STOCK Corning Fiberglas Corp. common par $ AUTHORIZED AUTHORIZED shares outstand- ing Dec. 31 1980 30,628,063 reserved for stock options 1,919,876 shares par $ Par changed from no par to $ Dec. 28 1951 by for split shares had been previously split for in 1950 changed from $ to $ in May 1956 by for split $ par shares split for July 27 1970 and May 12 1978 Jan. As of owned 3.07 5 of 1977 stock Illinois Inc. and Corning Glass Works DIVIDENDS DIVIDENDS no par shares prior to 3- for split in Dec. 1951 1950 and 1951 $ . On $ par shares 1952-53 0.60 1954 1956 .0.50 .0.50 1955 . 1.00 On $ par shares 1956 ( 0.40 1957-59 1960-64 1.00 1965 ....... 1.30 1966-69 1.40 1970 ....... 1.05 . On after for .0.18 1971 0.75 .0.82 1974-75 .0.88 .1.10 1978 ....... 0.60 $ par shs after for split 1972 .. .0.78 1976 .0.94 .0.94 split split 1978 1.0.70 1979-80 1.20 1981 .0.60 DIVIDEND To 15 DIVIDEND RESTRICTIONS Long Term Debt above Other DIVIDEND REINVESTMENT PLAN Administrator for shareholder Citibank N.A will purchase full and fractional shares of company common for participants account without service charge to participant a all cash dividends on shares of company common shares stock held by participant and any full or fractional shares in one share acquired by participant through this service and b all cash payments of from 10 to 3,000 per quarter received from participant for such purpose and all cash dividends on shares and fraction- al shares acquired through this cash payment plan Such purchases may be made on any securities exchange where such shares are traded in counter market or in negotiated transactions and may be on such terms as to price delivery and otherwise as Bank in its sole discretion may determine VOTING RIGHTS one vote per share Under consent decree dated June 23 1949 Illinois Inc. and Corning Glass Works are enjoined form voting shares owned except with consent of U.S. Attorney General or of the Court other than for election of direc- tors previously approved by the Court PREEMPTIVE RIGHTS LISTED NYSE Symbol OCF Unlist- ed trading on Philadelphia and Boston Stock Exchanges TRANSFER AND DIVIDEND DISBURS- ING AGENT AND REGISTRAR N.A. NYC OFFERED shares at 65 per share proceeds to July 25 1967 company 62.79 per by Goldman Sachs share & Co. on La- zard Freres & Co. and White Weld & Co. and associates Proceeds for general purposes CA LOI 2. 9 10 CAI fj! eg? dente Aegan etm ot 32 2 4m