text: **W H A T W E D I D**
  
  So, armed with full recognition of both our challenges and our 
  strengths, we set out to re-shape the company, adjusting to the 
  new realities of the market. 
  
  payments. Beyond severance, our actual cash usage for our 
  operations has become very low. We have also added to our 
  cash reserves through such actions as our preferred stock 
  offering in July, and the sale of our Ohio-based precision lens 
  business to 3M late in the year. As a result of all these actions, 
  we were able to end the year with about $2.1 billion in cash 
  and short-term investments. 
  During 2002, we relied on our Values to set the context in 
  which we operated. From there, we focused relentlessly on a 
  very clear plan with three priorities: 
  
  n TO PRESERVE THE FINANCIAL HEALTH OF THE COMPANY; 
  n TO RETURN TO PROFITABILITY IN 2003; 
  n TO CONTINUE TO INVEST IN OUR FUTURE. 
  
  In keeping with this strategy, we also continue to pay down 
  debt each quarter. Over the course of 2002 and the first month 
  of this year, we repaid about $975 million in debt, including 
  commercial paper. 
  
  During the course of the year — with a recovery in the 
  telecommunications industry still nowhere in sight — we 
  restructured the company and dramatically lowered our cost 
  structure. Meanwhile, we focused our research and develop- 
  ment efforts and recommitted ourselves to building those 
  businesses which presented the most attractive near-term 
  opportunities for growth — a large part of which are outside 
  the telecommunications segment. Our diverse portfolio and 
  wealth of skills across a wide variety of markets had never 
  been more important. 