CORNING INCORPORATED AND SUBSIDIARY COMPANIES Exhibit #12
COMPUTATION OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED DIVIDENDS
(Dollars in millions, except ratios)
Three Months Ended Fiscal Year Ended
------------------ ------------------------------------------
March 31, March 31, Dec. 31, Dec. 31, Dec. 31, Jan. 1, Jan. 2,
1998 1997 1997 1996 1995 1995 1994
--------- --------- -------- -------- -------- ------- -------
Income before taxes on income $64.5 $143.5 $629.2 $455.9 $389.4 $286.3 $93.7
Adjustments:
Share of earnings (losses) before
taxes of 50% owned companies 27.1 18.5 111.5 130.3 95.2 89.0 (137.0)
Gain (loss) before taxes of greater
than 50% owned unconsolidated
subsidiary 0.7 (3.1) (4.0) (3.1)
Distributed income of less than
50% owned companies and share
of loss if debt is guaranteed 0.1 2.1 4.5
Amortization of capitalized interest 3.6 3.5 16.6 11.8 9.6 13.3 13.0
Fixed charges net of capitalized
interest 34.5 35.2 149.9 105.9 82.7 128.7 91.4
----- ------ ------ ------ ------ ------ -----
Earnings before taxes and fixed
charges as adjusted $129.8 $200.7 $907.2 $704.6 $610.1 $515.4 $62.5
====== ====== ====== ====== ====== ====== =====
Fixed charges:
Interest incurred $ 27.3 $ 25.0 $104.7 $ 73.6 $ 65.4 $ 64.9 $51.1
Share of interest incurred of 50%
owned companies and interest on
guaranteed debt of less than
50% owned companies 10.2 10.0 51.0 38.7 10.2 60.8 40.9
Interest incurred by greater than 50%
owned unconsolidated subsidiary 0.7 0.8 0.8
Portion of rent expense which
represents interest factor 5.3 3.3 15.9 12.1 13.3 10.8 7.3
Share of portion of rent expense which
represents interest factor for 50%
owned companies 1.6 0.7 3.8 1.4 2.7 9.4 9.1
Portion of rent expense which represents
interest factor for greater than 50%
owned unconsolidated subsidiary 0.1 0.1
Amortization of debt costs 0.7 0.4 1.6 2.2 (0.1) 0.6 0.4
------ ------ ----- ----- ----- ----- -----
Total fixed charges 45.1 39.4 177.0 128.0 92.3 147.3 109.7
Capitalized interest (10.6) (4.2) (27.1) (22.1) (9.6) (18.6) (18.3)
------ ------ ----- ----- ----- ----- -----
Total fixed charges net of capitalized
interest $ 34.5 $ 35.2 $149.9 $105.9 $ 82.7 $128.7 $91.4
====== ====== ====== ====== ====== ====== =====
Preferred dividends:
Preferred dividend requirements $ 3.8 $ 3.8 $ 15.3 $ 15.7 $ 15.7 $ 8.2 $ 2.1
Ratio of pre-tax income to income
before minority interest and
equity earnings 1.5 1.5 1.5 1.5 1.4 1.4 1.0
------ ------ ------ ------ ------ ------ ------
Pre-tax preferred dividend requirement 5.7 5.7 23.0 23.6 21.7 11.8 2.2
Total fixed charges 45.1 39.4 177.0 128.0 92.3 147.3 109.7
------ ------ ------ ------ ------ ------ ------
Fixed charges and pre-tax preferred
dividend requirement $ 50.8 $ 45.1 $200.0 $151.6 $114.0 $159.1 $111.9
====== ====== ====== ====== ====== ====== ======
Ratio of earnings to combined fixed
charges and preferred dividends 2.6x 4.5x 4.5x 4.7x 5.4x 3.2x -
====== ====== ====== ====== ====== ====== ======
Earnings did not cover combined fixed charges and preferred dividends by $49.4
in the fiscal year ended January 2, 1994.
- 17 -