In 2015, Corning Incorporated began communicating to the investment community about its new Capital Allocation Framework, a strategic plan designed to reduce the cash on the company's balance sheet and increase the returns it was earning on invested capital. Previously, Corning had about $5.5 billion worth of cash on its books worldwide. The Capital Allocation Framework aimed to reduce that by more than half.
"In order to do that, we needed to be able to access all our cash globally, wherever it was," explains Steve Propper, Corning's vice president and corporate treasurer. "The more fungible our cash is, the more liquidity we have on a global basis."
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Meg Waters
Meg Waters is the editor in chief of Treasury & Risk. She is the former editor in chief of BPM Magazine and the former managing editor of Business Finance.
