EX-12.1 4 l42833exv12w1.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
                                                 
    Six        
    Months        
    Ended        
  June 30,     Year Ended December 31,  
(Dollars in millions)   2011     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
  $ 299     $ (3 )   $ (365 )   $ 176     $ 436     $ (230 )
 
                                               
Add:
                                               
Amortization of previously capitalized interest
    4       9       8       8       10       12  
Distributed income of equity investees
    6       4       3       3       3       5  
 
                                   
Total additions
    10       13       11       11       13       17  
 
                                               
Deduct:
                                               
Capitalized interest
    18       26       14       23       10       7  
Minority interest in pre-tax income of consolidated subsidiaries with no fixed charges
    6       6       4       11       14       8  
 
                                   
 
Total deductions
    24       32       18       34       24       15  
 
                                               
TOTAL EARNINGS (LOSS)
  $ 285     $ (22 )   $ (372 )   $ 153     $ 425     $ (228 )
 
                                   
 
                                               
FIXED CHARGES                                                
Interest expense
  $ 155     $ 316     $ 311     $ 320     $ 470     $ 467  
Capitalized interest
    18       26       14       23       10       7  
Amortization of debt discount, premium or expense
    7       14       16       17       26       21  
Interest portion of rental expense (1)
    56       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
  $ 236     $ 468     $ 447     $ 466     $ 608     $ 593  
 
                                   
TOTAL EARNINGS BEFORE FIXED CHARGES
  $ 521     $ 446     $ 75     $ 619     $ 1,033     $ 365  
 
                                   
 
Preferred Dividends
  $ 7     $ *     $ *     $ *     $ *     $ *  
 
                                   
 
Ratio of pre-tax income to net income
    1.70       *       *       *       *       *  
 
Preferred Dividend Factor
  $ 12     $ *     $ *     $ *     $ *     $ *  
Total Fixed Charges
    236       468       447       466       608       593  
 
                                   
TOTAL FIXED CHARGES AND PREFFERED DIVIDENDS
  $ 248     $ 468     $ 447     $ 466     $ 608     $ 593  
 
                                   
RATIO OF EARNINGS TO FIXED CHARGES AND PREFERRED DIVIDENDS
    2.10       **       ***       1.33       1.70       ****  
 
*   No preferred stock was outstanding for these periods.
 
**   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.