EX-12 5 l93883aex12.txt EXHIBIT 12 COMPUTATION OF RATIO OF EARNINGS EXHIBIT 12 THE GOODYEAR TIRE & RUBBER COMPANY AND SUBSIDIARIES COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES (Dollars in millions)
3 MONTHS ENDED TWELVE MONTHS ENDED MARCH 31, DECEMBER 31, ------------------------------------------------------------------------- 2002 2001 2000 1999 1998 1997 ---- ---- ---- ---- ---- ---- EARNINGS -------- INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES $ (85.6) $ (273.0) $ 58.8 $ 300.1 $930.4 $ 703.0 Add: Amortization of previously capitalized interest 2.5 9.8 9.7 11.0 10.7 11.0 Minority interest in net income of consolidated subsidiaries with fixed charges 17.6 26.7 45.6 42.9 33.6 45.1 Proportionate share of fixed charges of investees accounted for by the equity method 0.8 3.1 5.7 5.5 4.8 6.5 Proportionate share of net loss of investees accounted for by the equity method 5.0 44.6 28.4 0.3 - 0.1 ------- ------- ------- ------- --------- ------- Total additions 25.9 84.2 89.4 59.7 49.1 62.7 Deduct: Capitalized interest 2.3 6.4 12.0 11.8 6.6 6.2 Minority interest in net loss of consolidated subsidiaries 5.1 19.5 8.3 4.2 2.9 3.6 Undistributed proportionate share of net income of investees accounted for by the equity method 0.1 1.1 4.3 2.2 - - ------- ------- ------- ------- --------- ------- Total deductions 7.5 27.0 24.6 18.2 9.5 9.8 TOTAL EARNINGS $ (67.2) $ (215.8) $ 123.6 $ 341.6 $ 970.0 $ 755.9 ======= ======= ======= ======= ========= ======= FIXED CHARGES ------------- Interest expense $ 61.0 $ 292.4 $ 282.6 $ 179.4 $ 147.8 $ 119.5 Capitalized interest 2.3 6.4 12.0 11.8 6.6 6.2 Amortization of debt discount, premium or expense 2.2 7.1 1.5 0.7 1.2 0.1 Interest portion of rental expense 18.4 73.6 73.5 62.1 57.7 63.0 Proportionate share of fixed charges of investees accounted for by the equity method 0.8 3.1 5.7 5.5 4.8 6.5 ------- ------- ------- ------- --------- ------- TOTAL FIXED CHARGES $ 84.7 $ 382.6 $ 375.3 $ 259.5 $ 218.1 $ 195.3 ======= ======= ======= ======= ========= ======= TOTAL EARNINGS BEFORE FIXED CHARGES $ 17.5 $ 166.8 $ 498.9 $ 601.1 $ 1,188.1 $ 951.2 ======= ======= ======= ======= ========= ======= RATIO OF EARNINGS TO FIXED CHARGES * ** 1.33 2.32 5.45 4.87
*EARNINGS FOR THE THREE MONTHS ENDED MARCH 31, 2002 WERE INADEQUATE TO COVER FIXED CHARGES. THE COVERAGE DEFICIENCY WAS $67.2 MILLION. **EARNINGS FOR THE YEAR ENDED DECEMBER 31, 2001 WERE INADEQUATE TO COVER FIXED CHARGES. THE COVERAGE DEFICIENCY WAS $215.8 MILLION.