Item 15(c) Exhibit 12
Corning Incorporated and Subsidiary Companies
Computation of Ratio of Earnings (Losses) to Combined Fixed Charges and Preferred Dividends:
(In millions, except ratios)
Fiscal Years ended December 31, | |||||||||||||||||||
2006 | 2005 | 2004 | 2003 | 2002 | |||||||||||||||
Income (loss) from continuing operations before | |||||||||||||||||||
taxes on income | $ | 961 | $ | 559 | $ | (1,604 | ) | $ | (876 | ) | $ | (2,720 | ) | ||||||
Adjustments: | |||||||||||||||||||
Distributed income of equity investees | 363 | 302 | 139 | 112 | 83 | ||||||||||||||
Amortization of capitalized interest | 4 | 4 | 5 | 6 | 9 | ||||||||||||||
Fixed charges net of capitalized interest | 97 | 130 | 151 | 171 | 207 | ||||||||||||||
Earnings (loss) before taxes and fixed charges | |||||||||||||||||||
as adjusted | $ | 1,425 | $ | 995 | $ | (1,309 | ) | $ | (587 | ) | $ | (2,421 | ) | ||||||
Fixed charges: | |||||||||||||||||||
Interest incurred | $ | 107 | $ | 132 | $ | 151 | $ | 153 | $ | 186 | |||||||||
Portion of rent expense which represents an | |||||||||||||||||||
appropriate interest factor | 25 | 22 | 18 | 22 | 28 | ||||||||||||||
Amortization of debt costs | 2 | 3 | 4 | 5 | 6 | ||||||||||||||
Total fixed charges | 134 | 157 | 173 | 180 | 220 | ||||||||||||||
Capitalized interest | (37 | ) | (27 | ) | (22 | ) | (9 | ) | (13 | ) | |||||||||
Total fixed charges net of capitalized interest | $ | 97 | $ | 130 | $ | 151 | $ | 171 | $ | 207 | |||||||||
Preferred dividends: | |||||||||||||||||||
Preferred dividend requirement | $ | $ | 128 | ||||||||||||||||
Ratio of pre-tax income to income before | |||||||||||||||||||
minority interest and equity earnings | 1.0 | ||||||||||||||||||
Pre-tax preferred dividend requirement | 128 | ||||||||||||||||||
Total fixed charges | $ | 134 | $ | 157 | $ | 173 | $ | 180 | 220 | ||||||||||
Fixed charges and pre-tax preferred dividend | |||||||||||||||||||
requirement | $ | 134 | $ | 157 | $ | 173 | $ | 180 | $ | 348 | |||||||||
Ratio of earnings to fixed charges | 10.6 | x | 6.3 | x | * | * | * | ||||||||||||
Ratio of earnings to combined fixed charges and | |||||||||||||||||||
preferred dividends | 10.6 | x | 6.3 | x | * | * | * |
* | Loss before taxes and fixed charges as adjusted were inadequate to cover total fixed charges by approximately $1,458 million, $650 million and $2,628 million and inadequate to cover fixed charges and pre-tax preferred dividend requirement by approximately $1,458 million, $650 million and $2,769 million at December 31, 2004, 2003 and 2002, respectively. |
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