Corning 2007 Annual Report

15. Shareholders’ Equity
The following table presents changes in capital stock for the period from January 1, 2005 to December 31, 2007 (in millions):
Series C Preferred Stock Common Stock Treasury Stock
Shares Par Value Shares Par Value Shares Cost
Balance at December 31, 2004 1 $ 64 1,424 $ 712 (16) $ (162)
Shares issued in equity offerings 20 10
Conversion of preferred stock (1) (64) 32 16
Shares issued to benefit plans and for option exercises 39 20 1
Shares issued in debt retirement 37 18
Other (7)
Balance at December 31, 2005 1,552 $ 776 (16) $ (168)
Shares issued to benefit plans and for option exercises 30 15 (11)
Other (1) (22)
Balance at December 31, 2006 1,582 $ 791 (17) $ (201)
Shares issued to benefit plans and for option exercises 15 8 (1) (12)
Shared purchased for treasury (11) (250)
Other 1 (1) (29)
Balance at December 31, 2007 1,598 $ 799 (30) $ (492)
Preferred Stock
We have designated 2.4 million shares as Series A Junior Participating Preferred Stock for which no shares have been issued. In June
1996, the Board of Directors approved the renewal of the Preferred Share Purchase Right Plan, which entitles shareholders to
purchase 0.01 of a share of Series A Junior Participating Preferred Stock upon the occurrence of certain events. In addition, the rights
entitle shareholders to purchase shares of common stock at a 50% discount in the event a person or group acquires 20% or more of our
outstanding common stock. The preferred share purchase rights became effective July 15, 1996 and expired July 15, 2006.
In 2002, Corning issued 5.75 million shares of 7.00% Series C Mandatory Convertible Preferred Stock. On the mandatory conversion
date of August 15, 2005, the remaining outstanding shares were converted into Corning common stock at a conversion rate of 50,813
shares of common stock for each preferred share. Upon conversion of the preferred shares, we issued 31 million shares of Corning
common stock resulting in an increase to equity of $62 million. The Series C mandatory convertible preferred stock had a liquidation
preference of $100 per share, plus accrued and unpaid dividends. At December 31, 2007 and 2006 there were no outstanding shares of
Series C Mandatory Convertible Preferred Stock.
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