CORNING INCORPORATED AND SUBSIDIARY COMPANIES
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, Dec. 31, Jan. 1,
1999 1998 1998 1997 1996 1995 1995
---- ---- ---- ---- ---- ---- ----
Income before taxes on income $111.2 $64.5 $439.6 $629.2 $455.9 $389.4 $286.3
Adjustments:
Share of earnings before taxes
of 50% owned companies 23.9 27.1 173.3 111.5 130.3 95.2 89.0
Gain (loss) before taxes of
greater than 50% owned
unconsolidated subsidiary 0.7 (3.1) (4.0)
Distributed income of less than
50% owned companies and share
of loss if debt is guaranteed 0.1 (1.1) 2.1
Amortization of capitalized interest 3.8 3.6 14.4 16.6 11.8 9.6 13.3
Fixed charges net of capitalized
interest 32.9 34.5 126.8 141.9 105.9 82.6 128.8
------ ------ ------ ------ ------ ------ ------
Earnings before taxes and fixed
charges as adjusted $171.8 $129.8 $753.0 $899.2 $704.6 $573.7 $515.5
====== ====== ====== ====== ====== ====== ======
Fixed charges:
Interest incurred $ 29.3 $ 27.3 $103.5 $ 96.7 $ 73.6 $ 65.4 $ 64.9
Share of interest incurred of 50%
owned companies and interest on
guaranteed debt of less than 50%
owned companies 9.6 10.2 45.4 51.0 38.7 10.2 60.8
Interest incurred by greater than
50% owned unconsolidated subsidiary 0.7 0.8
Portion of rent expense which
represents interest factor 4.9 5.3 18.0 15.9 12.1 13.3 10.8
Share of portion of rent expense
which represents interest factor
for 50% owned companies 1.4 1.6 5.0 3.8 1.4 2.7 9.4
Portion of rent expense which
represents interest factor for
greater than 50% owned
unconsolidated subsidiary 0.1
Amortization of debt costs 0.7 0.7 2.9 1.6 2.2 (0.1) 0.6
------ ------ ----- ------ ------ ------ ------
Total fixed charges 45.9 45.1 174.8 169.0 128.0 92.2 147.4
Capitalized interest (13.0) (10.6) (48.0) (27.1) (22.1) (9.6) (18.6)
------ ------ ------ ------ ------ ------ ------
Total fixed charges net of
capitalized interest $ 32.9 $ 34.5 $126.8 $141.9 $105.9 $ 82.6 $128.8
====== ====== ====== ====== ====== ====== ======
Preferred dividends:
Preferred dividend requirements $ 2.6 $ 3.8 $ 15.3 $ 15.3 $ 15.7 $ 15.7 $ 8.2
Ratio of pre-tax income to
income before minority interest
and equity earnings 1.4 1.5 1.4 1.5 1.5 1.4 1.4
------ ------ ------ ------ ------ ------ ------
Pre-tax preferred dividend
requirement 3.6 5.7 21.4 23.0 23.6 22.0 11.5
Total fixed charges 45.9 45.1 174.8 169.0 128.0 92.2 147.4
------ ------ ------ ------ ------ ------ ------
Fixed charges and pre-tax preferred
dividend requirement $ 49.5 $ 50.8 $196.2 $192.0 $151.6 $114.2 $158.9
====== ====== ====== ====== ====== ====== ======
Ratio of earnings to combined fixed
charges and preferred dividends 3.5x 2.6x 3.8x 4.7x 4.7x 5.0x 3.2x
====== ====== ====== ====== ====== ====== ======
- 18 -