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, Dec. 31, Jan. 1,
1999 1998 1998 1997 1996 1995 1995
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Income before taxes on income $437.5 $280.7 $439.6 $629.2 $455.9 $389.4 $286.3
Adjustments:
Share of earnings before taxes
of 50% owned companies 119.1 110.5 173.3 111.5 130.3 95.2 89.0
Gain (loss) before taxes of
greater than 50% owned
unconsolidated subsidiary (0.2) 0.7 (3.1) (4.0)
Distributed income of less than
50% owned companies and share
of loss if debt is guaranteed (0.3) (1.1) 2.1
Amortization of capitalized
interest 10.8 10.8 14.4 16.6 11.8 9.6 13.3
Fixed charges net of
capitalized interest 105.1 75.3 126.8 141.9 105.9 82.6 128.8
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Earnings before taxes and
fixed charges as adjusted $672.3 $477.0 $753.0 $899.2 $704.6 $573.7 $515.5
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Fixed charges:
Interest incurred $ 92.9 $ 77.4 $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 27.2 12.5 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 14.9 14.0 18.0 15.9 12.1 13.3 10.8
Share of portion of rent
expense which represents
interest factor for 50%
owned companies 4.4 4.2 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 2.5 2.2 2.9 1.6 2.2 (0.1) 0.6
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Total fixed charges 141.9 110.3 174.8 169.0 128.0 92.2 147.4
Capitalized interest (36.8) (35.0) (48.0) (27.1) (22.1) (9.6) (18.6)
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Total fixed charges net of
capitalized interest $105.1 $ 75.3 $126.8 $141.9 $105.9 $ 82.6 $128.8
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Preferred dividends:
Preferred dividend
requirements $ 3.2 $ 11.5 $ 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 1.4 1.4 1.5 1.5 1.4 1.4
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Pre-tax preferred dividend
requirement 4.5 16.1 21.4 23.0 23.6 22.0 11.5
Total fixed charges 141.9 110.3 174.8 169.0 128.0 92.2 147.4
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Fixed charges and pre-tax
preferred dividend requirement $146.4 $126.4 $196.2 $192.0 $151.6 $114.2 $158.9
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Ratio of earnings to combined
fixed charges and preferred
dividends 4.6x 3.8x 3.8x 4.7x 4.7x 5.0x 3.2x
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