EX-12.1 3 l37107exv12w1.htm EX-12.1 exv12w1
EXHIBIT 12.1
THE GOODYEAR TIRE & RUBBER COMPANY AND SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
                                                   
    6 Months          
    Ended          
(Dollars in millions)   June 30,       12 Months Ended December 31,  
    2009       2008     2007     2006     2005     2004  
EARNINGS
                                                 
Pre-tax (loss) income from continuing operations before adjustment for minority interests in consolidated subsidiaries or income or loss from equity investees
  $ (637 )     $ 176     $ 436     $ (230 )   $ 424     $ 218  
Add:
                                                 
 
Amortization of previously capitalized interest
    4         8       10       12       11       11  
Distributed income of equity investees
    3         3       3       5       7       3  
 
                                     
 
                                                 
Total additions
    7         11       13       17       18       14  
Deduct:
                                                 
Capitalized interest
    5         23       10       7       7       7  
Minority interest in pre-tax income of consolidated subsidiaries with no fixed charges
    3         11       14       8       12       11  
 
                                     
 
                                                 
Total deductions
    8         34       24       15       19       18  
 
                                                 
TOTAL (LOSS) EARNINGS
  $ (638 )     $ 153     $ 425     $ (228 )   $ 423     $ 214  
 
                                     
 
                                                 
FIXED CHARGES
                                                 
Interest expense
  $ 143       $ 320     $ 470     $ 467     $ 426     $ 376  
Capitalized interest
    5         23       10       7       7       7  
Amortization of debt discount, premium or expense
    7         17       26       21       29       62  
Interest portion of rental expense (1)
    53         105       101       98       94       91  
Proportionate share of fixed charges of investees accounted for by the equity method
    1         1       1                    
 
                                     
TOTAL FIXED CHARGES
  $ 209       $ 466     $ 608     $ 593     $ 556     $ 536  
 
                                     
 
                                                 
TOTAL (LOSS) EARNINGS BEFORE FIXED CHARGES
  $ (429 )     $ 619     $ 1,033     $ 365     $ 979     $ 750  
 
                                     
 
                                                 
RATIO OF EARNINGS TO FIXED CHARGES
    *         1.33       1.70       * *     1.76       1.40  
 
*   Earnings for the six months ended June 30, 2009 were inadequate to cover fixed charges. The coverage deficiency was $638 million.
 
**   Earnings for the year ended December 31, 2006 were inadequate to cover fixed charges. The coverage deficiency was $228 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.