EX-12.02 4 d852075dex1202.htm EX-12.02

EX-12.02

EXHIBIT 12.02

Corning Incorporated and Subsidiary Companies

Computation of Ratio of Earnings to Combined Fixed Charges and Preferred Stock Dividends

(In millions, except ratios)

		Nine months ended September 30, 2014				Fiscal Years ended December 31,
						2013				2012				2011				2010				2009
Income from continuing operations before taxes on income		$	2,231			$	2,473			$	1,975			$	3,231			$	3,869			$	1,906
Adjustments:
Equity in earnings of equity affiliates			(243	)			(547	)			(810	)			(1,471	)			(1,958	)			(1,435	)
Distributed income of equity affiliates (1)			1,673				629				1,089				820				1,712				755
Net income attributable to noncontrolling interests											(5	)			(3	)			(2	)			6
Fixed charges net of capitalized interest			118				148				138				119				129				103
Earnings before taxes and fixed charges as adjusted		$	3,779			$	2,703			$	2,387			$	2,696			$	3,750			$	1,335
Fixed charges:
Interest incurred (2)			120				153				181				132				126				111
Portion of rent expense which represents an appropriate interest factor (3)			27				28				27				30				21				20
Amortization of debt costs		$	2			$	2			$	4			$	3			$	2			$	1
Total fixed charges		$	149			$	183			$	212			$	165			$	149			$	132
Preferred stock grossed up to a pre-tax basis			105				—				—				—				—				—
Combined fixed charges and preferred stock dividends			254			$	183			$	212			$	165			$	149			$	132
Ratio of earnings to fixed charges			25.4	x			14.8	x			11.3	x			16.3	x			25.2	x			10.1	x
Ratio of earnings to combined fixed charges and preferred stock dividends			14.9	x			14.8	x			11.3	x			16.3	x			25.2	x			10.1	x

(1) Includes a $1.6 billion dividend received from Samsung Corning Precision Materials Co., Ltd. (now, CPM) related to the acquisition of CPM by Corning in January 2014.

(2) Interest incurred includes capitalized interest and amortization expense for debt costs.

(3) One-third of net rent expense is the portion deemed representative of the interest factor.