EXHIBIT 12
Corning Incorporated and Subsidiary Companies
Computation of Ratio of Earnings to Fixed Charges
(In millions, except ratios)
Fiscal years ended December 31, | ||||||||||||||||||||
2009 | 2008 | 2007 | 2006 | 2005 | ||||||||||||||||
Income from continuing operations before taxes on income (a) | $ | 1,934 | $ | 2,882 | $ | 2,271 | $ | 1,939 | $ | 1,189 | ||||||||||
Adjustments: | ||||||||||||||||||||
Equity in earnings of equity affiliates | (1,435 | ) | (1,358 | ) | (983 | ) | (989 | ) | (637 | ) | ||||||||||
Distributed income of equity affiliates | 755 | 546 | 490 | 363 | 302 | |||||||||||||||
Net income attributable to noncontrolling interests | 6 | (1 | ) | 3 | 11 | 7 | ||||||||||||||
Amortization of capitalized interest | 1 | 3 | 4 | 4 | ||||||||||||||||
Fixed charges net of capitalized interest | 103 | 78 | 104 | 97 | 130 | |||||||||||||||
Earnings before taxes and fixed charges as adjusted | $ | 1,363 | $ | 2,148 | $ | 1,888 | $ | 1,425 | $ | 995 | ||||||||||
Fixed charges: | ||||||||||||||||||||
Interest incurred (b) | $ | 111 | $ | 88 | $ | 96 | $ | 107 | $ | 132 | ||||||||||
Portion of rent expense which represents an appropriate interest factor (c) | 20 | 19 | 25 | 25 | 22 | |||||||||||||||
Amortization of debt costs | 1 | 2 | 2 | 2 | 3 | |||||||||||||||
Total fixed charges | 132 | 109 | 123 | 134 | 157 | |||||||||||||||
Capitalized interest | (29 | ) | (31 | ) | (19 | ) | (37 | ) | (27 | ) | ||||||||||
Total fixed charges net of capitalized interest | $ | 103 | $ | 78 | $ | 104 | $ | 97 | $ | 130 | ||||||||||
Total fixed charges | $ | 132 | $ | 109 | $ | 123 | $ | 134 | $ | 157 | ||||||||||
Ratio of earnings to fixed charges | 10.3x | 19.7x | 15.3x | 10.6x | 6.3x |
(a) | Effective January 1, 2009, equity earnings are now included in income from continuing operations before taxes on income. Prior period amounts conform to the 2009 presentation. |
(b) | Interest expense includes amortization expense for debt costs. |
(c) | One-third of net rent expense is the portion deemed representative of the interest factor. |