EX-12 3 l03460aexv12.htm EX-12 COMPUTATION OF RATIO OF EARNINGS EX-12 Computation of Ratio of Earnings
 

EXHIBIT 12

THE GOODYEAR TIRE & RUBBER COMPANY AND SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
Unaudited

                                                   
(Dollars in millions)        
      9 MONTHS    
      ENDED   TWELVE MONTHS ENDED
      SEPTEMBER 30,   DECEMBER 31,
     
 
      2003   2002   2001   2000   1999   1998
EARNINGS     As Restated   As Restated   As Restated   As Restated   As Restated
 
 
 
 
 
 
Income (loss) from continuing operations before income taxes
   $ (290.3 )   $ 7.4     $ (309.1 )   $ 60.0     $ 271.0     $ 891.6  
Add:
                                                
Amortization of previously capitalized interest
     8.2       10.1       9.8       9.7       11.0       10.7  
Minority interest in net income of consolidated subsidiaries with fixed charges
     29.9       59.4       28.0       44.0       42.6       32.1  
Proportionate share of fixed charges of investees accounted for by the equity method
     5.1       4.7       4.1       5.8       5.5       4.8  
Proportionate share of net loss of investees accounted for by the equity method
     9.7       14.3       44.6       28.4       0.3       -  
 
    
     
     
     
     
     
 
 
Total additions
     52.9       88.5       86.5       87.9       59.4       47.6  
Deduct:
                                                
Capitalized interest
     6.6       7.5       1.3       13.5       16.5       5.9  
Minority interest in net loss of consolidated subsidiaries
     0.9       5.2       19.5       8.3       4.2       2.9  
Undistributed proportionate share of net income of investees accounted for by the equity method
     1.9       1.3       0.2       2.9       1.8       -  
 
    
     
     
     
     
     
 
 
Total deductions
     9.4       14.0       21.0       24.7       22.5       8.8  
TOTAL EARNINGS
   $ (246.8 )   $ 81.9     $ (243.6 )   $ 123.2     $ 307.9     $ 930.4  
 
    
     
     
     
     
     
 
FIXED CHARGES
                                                
Interest expense
   $ 220.1     $ 241.3     $ 297.5     $ 281.2     $ 174.7     $ 148.5  
Capitalized interest
     6.6       7.5       1.3       13.5       16.5       5.9  
Amortization of debt discount, premium or expense
     28.9       8.8       6.0       1.5       0.7       1.2  
Interest portion of rental expense
     56.6       75.3       73.6       73.5       62.1       57.7  
Proportionate share of fixed charges of investees accounted for by the equity method
     5.1       4.7       4.1       5.8       5.5       4.8  
 
    
     
     
     
     
     
 
TOTAL FIXED CHARGES
   $ 317.3     $ 337.6     $ 382.5     $ 375.5     $ 259.5     $ 218.1  
 
    
     
     
     
     
     
 
TOTAL EARNINGS BEFORE FIXED CHARGES
   $ 70.5     $ 419.5     $ 138.9     $ 498.7     $ 567.4     $ 1,148.5  
 
    
     
     
     
     
     
 
RATIO OF EARNINGS TO FIXED CHARGES
     *       1.24       **       1.33       2.19       5.27  

*Earnings for the nine months ended September 30, 2003 were inadequate to cover fixed charges. The coverage deficiency was $246.8 million.

**Earnings for the year ended December 31, 2001 were inadequate to cover fixed charges. The coverage deficiency was $243.6 million.