EX-12.1 8 l41188exv12w1.htm EX-12.1 exv12w1
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   2010     2009     2008     2007     2006  
 
Pre-tax income (loss) from continuing operations before adjustment for minority interests in consolidated subsidiaries or income or loss from equity investees
  $ (3 )   $ (365 )   $ 176     $ 436     $ (230 )
Add:
                                       
Amortization of previously capitalized interest
    9       8       8       10       12  
Distributed income of equity investees
    4       3       3       3       5  
                                         
Total additions
    13       11       11       13       17  
Deduct:
                                       
Capitalized interest
    26       14       23       10       7  
Minority interest in pre-tax income of consolidated subsidiaries with no fixed charges
    6       4       11       14       8  
                                         
Total deductions
    32       18       34       24       15  
TOTAL EARNINGS (LOSS)
  $ (22 )   $ (372 )   $ 153     $ 425     $ (228 )
                                         
FIXED CHARGES
                                       
Interest expense
  $ 316     $ 311     $ 320     $ 470     $ 467  
Capitalized interest
    26       14       23       10       7  
Amortization of debt discount, premium or expense
    14       16       17       26       21  
Interest portion of rental expense(1)
    111       105       105       101       98  
Proportionate share of fixed charges of investees accounted for by the equity method
    1       1       1       1        
                                         
TOTAL FIXED CHARGES
  $ 468     $ 447     $ 466     $ 608     $ 593  
                                         
TOTAL EARNINGS (LOSS) BEFORE FIXED CHARGES
  $ 446     $ 75     $ 619     $ 1,033     $ 365  
                                         
RATIO OF EARNINGS TO FIXED CHARGES
    *       **       1.33       1.70       ***  
 
 
* Earnings for the year ended December 31, 2010 were inadequate to cover fixed charges. The coverage deficiency was $22 million.
 
** Earnings for the year ended December 31, 2009 were inadequate to cover fixed charges. The coverage deficiency was $372 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.