CORNING INCORPORATED AND SUBSIDIARY COMPANIES Exhibit #12
COMPUTATION OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED
DIVIDENDS
(Dollars in millions, except ratios)
Nine Months Ended Fiscal Year Ended
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Sept. 30, Sept. 30, Dec. 31, Dec. 31, Dec. 31, Jan. 1, Jan. 2,
1998 1997 1997 1996 1995 1995 1994
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Income before taxes on income $280.7 $482.9 $629.2 $455.9 $389.4 $286.3 $ 93.7
Adjustments:
Share of earnings (losses)
before taxes of 50% owned
companies 110.5 94.0 111.5 130.3 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 (0.3) 2.1 4.5
Amortization of capitalized
interest 10.8 10.8 16.6 11.8 9.6 13.3 13.0
Fixed charges net of
capitalized interest 75.3 109.2 141.9 105.9 82.6 128.8 91.4
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Earnings before taxes and
fixed charges as adjusted $477.0 $696.9 $899.2 $704.6 $573.7 $515.5 $ 62.5
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Fixed charges:
Interest incurred $ 77.4 $ 73.2 $ 96.7 $ 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 12.5 39.8 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 14.0 12.1 15.9 12.1 13.3 10.8 7.3
Share of portion of rent
expense which represents
interest factor for 50%
owned companies 4.2 2.7 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 2.2 1.6 1.6 2.2 (0.1) 0.6 0.4
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Total fixed charges 110.3 129.4 169.0 128.0 92.2 147.4 109.7
Capitalized interest (35.0) (20.2) (27.1) (22.1) (9.6) (18.6) (18.3)
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Total fixed charges net of
capitalized interest $ 75.3 $109.2 $141.9 $105.9 $ 82.6 $128.8 $ 91.4
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Preferred dividends:
Preferred dividend
requirements $ 11.5 $ 11.5 $ 15.3 $ 15.7 $ 15.7 $ 8.2 $ 2.1
Ratio of pre-tax income to
income before minority
interest and equity
earnings 1.4 1.5 1.5 1.5 1.4 1.4 1.0
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Pre-tax preferred dividend
requirement 16.1 17.3 23.0 23.6 22.0 11.5 2.1
Total fixed charges 110.3 129.4 169.0 128.0 92.2 147.4 109.7
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Fixed charges and pre-tax
preferred dividend
requirement $126.4 $146.7 $192.0 $151.6 $114.2 $158.9 $111.8
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Ratio of earnings to combined
fixed charges and preferred
dividends 3.8x 4.8x 4.7x 4.7x 5.0x 3.2x -
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Earnings did not cover combined fixed charges and preferred dividends by $49.4
in the fiscal year ended January 2, 1994.