EX-12 2 gt-q42014xratioofearningse.htm EX-12.1 GT - Q4 2014 - Ratio of Earnings Ex_12.1


EXHIBIT 12.1
THE GOODYEAR TIRE & RUBBER COMPANY AND SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES
(Dollars in millions)
Year Ended December 31,
EARNINGS
2014
2013
2012
2011
2010
Pre-tax income (loss) before adjustment for minority interests in consolidated subsidiaries or income or loss from equity investees
$
658

$
782

$
406

$
599

$
(3
)
Add:
 
 
 
 
 
Amortization of previously capitalized interest
11

10

8

9

9

Distributed income of equity investees
24

21

11

8

4

          Total additions
35

31

19

17

13

Deduct:
 
 
 
 
 
Capitalized interest
24

39

22

31

26

Minority interest in pre-tax income of consolidated subsidiaries with no fixed charges
14

26

20

9

6

  Total deductions
38

65

42

40

32

TOTAL EARNINGS (LOSS)
$
655

$
748

$
383

$
576

$
(22
)
 
 
 
 
 
 
FIXED CHARGES
 
 
 
 
 
Interest expense
$
428

$
392

$
357

$
330

$
316

Capitalized interest
24

39

22

31

26

Amortization of debt discount, premium or expense
11

15

13

14

14

Interest portion of rental expense **
114

119

121

118

111

Proportionate share of fixed charges of investees accounted for by the equity method
2

1

1

1

1

 
 
 
 
 
 
TOTAL FIXED CHARGES
$
579

$
566

$
514

$
494

$
468

 
 
 
 
 
 
TOTAL EARNINGS BEFORE FIXED CHARGES
$
1,234

$
1,314

$
897

$
1,070

$
446

 
 
 
 
 
 
RATIO OF EARNINGS TO FIXED CHARGES
2.13

2.32

1.75

2.17

*

*
Earnings for the year ended December 31, 2010 were inadequate to cover fixed charges. The coverage deficiency was$22 million.
**
Interest portion of rental expense is estimated to equal 1/3 of such expense, which is considered a reasonable approximation of the interest factor.