EX-12 2 l08023aexv12.txt EX-12 COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES . . . EXHIBIT 12 THE GOODYEAR TIRE & RUBBER COMPANY AND SUBSIDIARIES COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
RESTATED ------------------------------------------------------------------------- (Dollars in millions) 9 MONTHS ENDED TWELVE MONTHS ENDED SEPT 30, DECEMBER 31, ---------- ---------------------- 2003 2002 2001 2000 1999 1998 ---- ---- ---- ---- ---- ---- EARNINGS Income (loss) from continuing operations before income taxes $ (321.5) $ (13.7) $ (337.9) $ 77.1 $ 276.7 $ 868.6 Add: Amortization of previously capitalized interest 8.3 10.2 9.9 9.8 11.0 10.7 Minority interest in net income of consolidated subsidiaries with fixed charges 30.5 57.4 27.4 44.6 42.6 32.8 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 9.2 16.1 42.9 28.0 0.3 0.3 -------- --------- --------- --------- --------- --------- Total additions 53.1 88.4 84.3 88.2 59.4 48.6 Deduct: Capitalized interest 7.0 7.2 1.7 11.9 18.1 5.9 Minority interest in net loss of consolidated subsidiaries 0.8 5.2 15.0 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 9.7 13.7 16.9 23.1 24.1 8.8 TOTAL EARNINGS $ (278.1) $ 61.0 $ (270.5) $ 142.2 $ 312.0 $ 908.4 ======== ========= ========= ======= ======== ========= FIXED CHARGES Interest expense $ 219.7 $ 241.7 $ 297.1 $ 282.8 $ 173.1 $ 148.5 Capitalized interest 7.0 7.2 1.7 11.9 18.1 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 66.3 76.7 74.1 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 $ 327.0 $ 339.1 $ 383.0 $ 375.5 $ 259.5 $ 218.1 ======== ========= ========= ======= ======== ========= TOTAL EARNINGS BEFORE FIXED CHARGES $ 48.9 $ 400.1 $ 112.5 $ 517.7 $ 571.5 $ 1,126.5 ======== ========= ========= ======= ======== ========= RATIO OF EARNINGS TO FIXED CHARGES * 1.18 ** 1.38 2.20 5.17
* Earnings for the nine months ended September 30, 2003 were inadequate to cover fixed charges. The coverage deficiency was $278.1 million (as restated). ** Earnings for the year ended December 31, 2001 were inadequate to cover fixed charges. The coverage deficiency was $270.5 million.