EX-12 2 q42017-ratioofearningsex_1.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
2017
 
2016
 
2015
 
2014
 
2013
Pre-tax income before adjustment for minority interests in consolidated subsidiaries or income or loss from equity investees
$
884

 
$
1,206

 
$
592

 
$
658

 
$
782

Add:
 
 
 
 
 
 
 
 
 
Amortization of previously capitalized interest
13

 
13

 
12

 
11

 
10

Distributed income of equity investees
5

 
25

 
24

 
24

 
21

          Total additions
18

 
38

 
36

 
35

 
31

Deduct:
 
 
 
 
 
 
 
 
 
Capitalized interest
23

 
26

 
19

 
24

 
39

Minority interest in pre-tax income of consolidated subsidiaries with no fixed charges
4

 
8

 
8

 
14

 
26

  Total deductions
27

 
34

 
27

 
38

 
65

 
 
 
 
 
 
 
 
 
 
TOTAL EARNINGS
$
875

 
$
1,210

 
$
601

 
$
655

 
$
748

 
 
 
 
 
 
 
 
 
 
FIXED CHARGES
 
 
 
 
 
 
 
 
 
Interest expense
$
347

 
$
391

 
$
438

 
$
439

 
$
407

Debt extinguishment costs included in interest expense
(6
)
 
(12
)
 
(17
)
 

 

Capitalized interest
23

 
26

 
19

 
24

 
39

Interest portion of rental expense (1)
104

 
100

 
97

 
114

 
119

 
 
 
 
 
 
 
 
 
 
TOTAL FIXED CHARGES
$
468

 
$
505

 
$
537

 
$
577

 
$
565

 
 
 
 
 
 
 
 
 
 
TOTAL EARNINGS BEFORE FIXED CHARGES
$
1,343

 
$
1,715

 
$
1,138

 
$
1,232

 
$
1,313

 
 
 
 
 
 
 
 
 
 
RATIO OF EARNINGS TO FIXED CHARGES
2.87

 
3.40

 
2.12

 
2.14

 
2.32


(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.