Exhibit 12.1
CORNING INCORPORATED AND SUBSIDIARY COMPANIES
COMPUTATION OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED DIVIDENDS
(In millions, except ratios)
30-Sep 2018 | 31-Dec 2017 | 31-Dec 2016 | 31-Dec 2015 | 31-Dec 2014 | 31-Dec 2013 | |||||||||||||||||||
Income before income taxes | 1,157 | 1,657 | 3,692 | 1,486 | 3,568 | 2,473 | ||||||||||||||||||
Adjustments: | ||||||||||||||||||||||||
Equity earnings of equity affiliates | (102 | ) | (361 | ) | (284 | ) | (299 | ) | (266 | ) | (547 | ) | ||||||||||||
Distributed income of equity affiliates (1) | 106 | 201 | 85 | 143 | 1,704 | 629 | ||||||||||||||||||
Net Income attributable to noncontrolling interest | 17 | 18 | 10 | 10 | 3 | 0 | ||||||||||||||||||
Amortization of capitalized interest | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||
Fixed charges net of capitalized interest | 177 | 199 | 195 | 171 | 159 | 148 | ||||||||||||||||||
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Income (loss) from continuing operations before taxes and fixed charges as adjusted | 1,355 | 1,714 | 3,698 | 1,511 | 5,168 | 2,703 | ||||||||||||||||||
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Fixed charges: | ||||||||||||||||||||||||
Interest expense included in income (loss) | 174 | 187 | 179 | 172 | 160 | 153 | ||||||||||||||||||
Portion of rent expense which represents interest factor (2) | 38 | 44 | 35 | 31 | 36 | 28 | ||||||||||||||||||
Amortization of debt costs | 3 | 4 | 4 | 3 | 3 | 2 | ||||||||||||||||||
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Total fixed charges | 215 | 235 | 218 | 206 | 199 | 183 | ||||||||||||||||||
Capitalized interest | (38 | ) | (36 | ) | (23 | ) | (35 | ) | (40 | ) | (35 | ) | ||||||||||||
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Total fixed charges net of capitalized interest | 177 | 199 | 195 | 171 | 159 | 148 | ||||||||||||||||||
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Total fixed charges | 215 | 235 | 218 | 206 | 199 | 183 | ||||||||||||||||||
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Preferred stock dividends grossed up to apre-tax basis | 94 | 156 | 98 | 109 | 136 | — | ||||||||||||||||||
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Combined fixed charges and preferred stock dividends | 309 | 391 | 316 | 315 | 335 | 183 | ||||||||||||||||||
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Ratio of earnings to fixed charges | 6.3x | 7.3x | 17.0x | 7.3x | 26.0x | 14.8x | ||||||||||||||||||
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(1) | In 2014, includes a $1.6 billion dividend received from Samsung Corning Precision Materials related to the acquisition of Samsung Corning Precision Materials. |
(2) | One-third of net rent expense is the portion deemed representative of the interest factor. |