Item 14(c) Exhibit #12
Corning Incorporated and Subsidiary
Companies Computation of Ratio of Earnings to Combined
Fixed Charges and Preferred Dividends:
(In millions, except ratios)
Fiscal Years ended
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Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31,
2001 2000 1999 1998 1997
-------- -------- -------- -------- --------
(Loss) income from continuing operations before
taxes on income $ (6,111) $ 691 $ 675 $ 482 $ 666
Adjustments:
Distributed income of equity investees 73 45 51 63 65
Amortization of capitalized interest 10 11 14 14 13
Fixed charges net of capitalized interest 191 135 118 89 102
-------- ----- ----- ----- -----
(Loss) earnings before taxes and fixed charges as adjusted $ (5,837) $ 882 $ 858 $ 648 $ 846
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Fixed charges:
Interest incurred $ 202 $ 163 $ 135 $ 114 $ 108
Portion of rent expense which represents interest factor 30 25 20 19 17
Amortization of debt costs 8 4 4 3 2
-------- ----- ----- ----- -----
Total fixed charges 240 192 159 136 127
Capitalized interest (49) (57) (41) (47) (25)
-------- ----- ----- ----- -----
Total fixed charges net of capitalized interest $ 191 $ 135 $ 118 $ 89 $ 102
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Preferred dividends:
Preferred dividend requirement $ 1 $ 1 $ 3 $ 15 $ 15
Ratio of pre-tax income to income before minority interest
and equity earnings 2.4 1.4 1.4 1.5
-------- ----- ----- ----- -----
Pre-tax preferred dividend requirement 1 2 4 21 23
Total fixed charges 240 192 159 136 127
-------- ----- ----- ----- -----
Fixed charges and pre-tax preferred dividend requirement $ 241 $ 194 $ 163 $ 157 $ 150
======== ===== ===== ===== =====
Ratio of earnings to combined fixed charges and preferred
dividends * 4.5x 5.3x 4.1x 5.6x
======== ===== ===== ===== =====
Ratio of earnings to fixed charges * 4.6x 5.4x 4.8x 6.7x
======== ===== ===== ===== =====
* Earnings before taxes and fixed charges as adjusted were inadequate to
cover total fixed charges by approximately $6.1 billion at December 31,
2001.