Item 15(c) Exhibit 12
Corning Incorporated and Subsidiary Companies
Computation of Ratio of (Losses) 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,
2002 2001 2000 1999 1998
--------- -------- -------- --------- ---------
(Loss) income from continuing operations before
taxes on income $ (2,720) $ (6,161) $ 621 $ 632 $ 449
Adjustments:
Distributed income of equity investees 83 73 45 51 63
Amortization of capitalized interest 9 10 11 14 14
Fixed charges net of capitalized interest 207 191 135 118 89
-------- -------- ------ ------ ------
(Loss) earnings before taxes and fixed charges as adjusted $ (2,421) $ (5,887) $ 812 $ 815 $ 615
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Fixed charges:
Interest incurred $ 186 $ 202 $ 163 $ 135 $ 114
Portion of rent expense which represents an appropriate
interest factor 28 30 25 20 19
Amortization of debt costs 6 8 4 4 3
-------- -------- ------ ------ ------
Total fixed charges 220 240 192 159 136
Capitalized interest (13) (49) (57) (41) (47)
-------- -------- ------ ------ ------
Total fixed charges net of capitalized interest $ 207 $ 191 $ 135 $ 118 $ 89
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Preferred dividends:
Preferred dividend requirement $ 128 $ 1 $ 1 $ 3 $ 15
Ratio of pre-tax income to income before minority interest
and equity earnings 2.6 1.4 1.4
-------- -------- ------ ------ ------
Pre-tax preferred dividend requirement 128 1 3 4 21
Total fixed charges 220 240 192 159 136
-------- -------- ------ ------ ------
Fixed charges and pre-tax preferred dividend requirement $ 348 $ 241 $ 195 $ 163 $ 157
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Ratio of earnings to fixed charges * * 4.2x 5.1x 4.5x
======== ======== ====== ====== ======
Ratio of earnings to combined fixed charges and preferred
dividends * * 4.2x 5.0x 3.9x
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* (Loss) earnings before taxes and fixed charges as adjusted were inadequate
to cover total fixed charges by approximately $2.6 billion and $6.1 billion
and inadequate to cover fixed charges and pre-tax preferred dividend
requirement by approximately $2.8 billion and $6.1 billion at December 31,
2002 and 2001, respectively.