EX-12 4 gt-q12016xratioofearningse.htm EX-12.1 Exhibit


EXHIBIT 12.1
THE GOODYEAR TIRE & RUBBER COMPANY AND SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(Dollars in millions)
Three Months Ended March 31,
 
Year Ended December 31,
EARNINGS
2016
 
2015
 
2014
 
2013
 
2012
 
2011
Pre-tax income before adjustment for minority interests in consolidated subsidiaries or income or loss from equity investees
$
267

 
$
592

 
$
658

 
$
782

 
$
406

 
$
599

Add:
 
 
 
 
 
 
 
 
 
 
 
Amortization of previously capitalized interest
3

 
12

 
11

 
10

 
8

 
9

Distributed income of equity investees
—

 
24

 
24

 
21

 
11

 
8

          Total additions
3

 
36

 
35

 
31

 
19

 
17

Deduct:
 
 
 
 
 
 
 
 
 
 
 
Capitalized interest
6

 
19

 
24

 
39

 
22

 
31

Minority interest in pre-tax income of consolidated subsidiaries with no fixed charges
2

 
8

 
14

 
26

 
20

 
9

  Total deductions
8

 
27

 
38

 
65

 
42

 
40

 
 
 
 
 
 
 
 
 
 
 
 
TOTAL EARNINGS
$
262

 
$
601

 
$
655

 
$
748

 
$
383

 
$
576

 
 
 
 
 
 
 
 
 
 
 
 
FIXED CHARGES
 
 
 
 
 
 
 
 
 
 
 
Interest expense
$
93

 
$
438

 
$
439

 
$
407

 
$
385

 
$
350

Debt extinguishment costs included in interest expense
(2
)
 
(12
)
 
—

 
—

 
(15
)
 
(6
)
Capitalized interest
6

 
19

 
24

 
39

 
22

 
31

Interest portion of rental expense (1)
24

 
97

 
114

 
119

 
121

 
118

Proportionate share of fixed charges of investees accounted for by the equity method
—

 
1

 
2

 
1

 
1

 
1

 
 
 
 
 
 
 
 
 
 
 
 
TOTAL FIXED CHARGES
$
121

 
$
543

 
$
579

 
$
566

 
$
514

 
$
494

 
 
 
 
 
 
 
 
 
 
 
 
TOTAL EARNINGS BEFORE FIXED CHARGES
$
383

 
$
1,144

 
$
1,234

 
$
1,314

 
$
897

 
$
1,070

 
 
 
 
 
 
 
 
 
 
 
 
RATIO OF EARNINGS TO FIXED CHARGES
3.17

 
2.11

 
2.13

 
2.32

 
1.75

 
2.17


(1)
Interest portion of rental expense is estimated to equal 1/3 of such expense, which is considered a         reasonable approximation of the interest factor.