EX-12.1 3 l42245exv12w1.htm EX-12.1 exv12w1
EXHIBIT 12.1
THE GOODYEAR TIRE & RUBBER COMPANY AND SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO
COMBINED FIXED CHARGES AND PREFERRED DIVIDENDS
                                         
(Dollars in millions)   Year Ended December 31,  
    2010     2009     2008     2007     2006  
EARNINGS
                                       
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  
 
                             
 
                                       
Preferred Dividends
  $ *     $ *     $ *     $ *     $ *  
 
                             
 
                                       
Ratio of pre-tax income to net income
    *       *       *       *       *  
 
                                       
Preferred Dividend Factor
    *       *       *       *       *  
Total Fixed Charges
  $ 468     $ 447     $ 466     $ 608     $ 593  
 
                             
TOTAL FIXED CHARGES AND PREFERRED DIVIDENDS
  $ 468     $ 447     $ 466     $ 608     $ 593  
 
                             
 
                                       
RATIO OF EARNINGS TO FIXED CHARGES AND PREFERRED DIVIDENDS
    **       ***       1.33       1.70       ****  
 
*   No preferred shares were outstanding during the periods reflected in the table and thus no preferred dividends were paid.
 
**   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.