EX-12.1 19 l35232aexv12w1.htm EX-12.1 EX-12.1
EXHIBIT 12.1
 
THE GOODYEAR TIRE & RUBBER COMPANY AND SUBSIDIARIES
 
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
 
                                         
(Dollars in millions)
  Year Ended December 31,  
EARNINGS   2008     2007     2006     2005     2004  
 
Pre-tax income (loss) from continuing operations before adjustment for minority interests in consolidated subsidiaries or income or loss from equity investees
  $ 176     $ 455     $ (212 )   $ 441     $ 226  
Add:
                                       
Amortization of previously capitalized interest
    8       10       12       11       11  
Distributed income of equity investees
    3       3       5       7       3  
                                         
Total additions
    11       13       17       18       14  
Deduct:
                                       
Capitalized interest
    23       10       7       7       7  
Minority interest in pre-tax income of consolidated subsidiaries with no fixed charges
    11       14       8       12       11  
                                         
Total deductions
    34       24       15       19       18  
TOTAL EARNINGS (LOSS)
  $ 153     $ 444     $ (210 )   $ 440     $ 222  
                                         
FIXED CHARGES
                                       
Interest expense
  $ 320     $ 452     $ 451     $ 411     $ 369  
Capitalized interest
    23       10       7       7       7  
Amortization of debt discount, premium or expense
    17       24       19       27       61  
Interest portion of rental expense(1)
    105       101       98       94       91  
Proportionate share of fixed charges of investees accounted for by the equity method
    1       1                    
                                         
TOTAL FIXED CHARGES
  $ 466     $ 588     $ 575     $ 539     $ 528  
                                         
TOTAL EARNINGS BEFORE FIXED CHARGES
  $ 619     $ 1,032     $ 365     $ 979     $ 750  
                                         
RATIO OF EARNINGS TO FIXED CHARGES
    1.33       1.76       *       1.82       1.42  
 
 
* Earnings for the year ended December 31, 2006 were inadequate to cover fixed charges. The coverage deficiency was $210 million.
 
(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.