EX-12 4 gt-q42015xratioofearningse.htm EX-12.1 Exhibit


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
2015
 
2014
 
2013
 
2012
 
2011
Pre-tax income before adjustment for minority interests in consolidated subsidiaries or income or loss from equity investees
$
592

 
$
658

 
$
782

 
$
406

 
$
599

Add:
 
 
 
 
 
 
 
 
 
Amortization of previously capitalized interest
12

 
11

 
10

 
8

 
9

Distributed income of equity investees
24

 
24

 
21

 
11

 
8

          Total additions
36

 
35

 
31

 
19

 
17

Deduct:
 
 
 
 
 
 
 
 
 
Capitalized interest
19

 
24

 
39

 
22

 
31

Minority interest in pre-tax income of consolidated subsidiaries with no fixed charges
8

 
14

 
26

 
20

 
9

  Total deductions
27

 
38

 
65

 
42

 
40

 
 
 
 
 
 
 
 
 
 
TOTAL EARNINGS
$
601

 
$
655

 
$
748

 
$
383

 
$
576

 
 
 
 
 
 
 
 
 
 
FIXED CHARGES
 
 
 
 
 
 
 
 
 
Interest expense
$
412

 
$
428

 
$
392

 
$
357

 
$
330

Capitalized interest
19

 
24

 
39

 
22

 
31

Amortization of debt discount, premium or expense
14

 
11

 
15

 
13

 
14

Interest portion of rental expense (1)
97

 
114

 
119

 
121

 
118

Proportionate share of fixed charges of investees accounted for by the equity method
1

 
2

 
1

 
1

 
1

 
 
 
 
 
 
 
 
 
 
TOTAL FIXED CHARGES
$
543

 
$
579

 
$
566

 
$
514

 
$
494

 
 
 
 
 
 
 
 
 
 
TOTAL EARNINGS BEFORE FIXED CHARGES
$
1,144

 
$
1,234

 
$
1,314

 
$
897

 
$
1,070

 
 
 
 
 
 
 
 
 
 
RATIO OF EARNINGS TO FIXED CHARGES
2.11

 
2.13

 
2.32

 
1.75

 
2.17


(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.