EX-12 5 l14991aexv12.txt EX-12 STATEMENT RE COMPUTATION OF RATIOS . . . EXHIBIT 12 THE GOODYEAR TIRE & RUBBER COMPANY AND SUBSIDIARIES COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
6 Months Ended (Dollars in millions) June 30, 12 Months Ended December 31, -------- ----------------------------------------------------------- 2005 2004 2003 2002 2001 2000 -------- -------- -------- -------- -------- -------- EARNINGS Income (loss) before income taxes $ 289 $ 323 $ (690) $ (19) $ (339) $ 70 Add: Amortization of previously capitalized interest 5 11 11 10 10 10 Minority interest in net income of consolidated subsidiaries with fixed charges 56 63 36 57 28 45 Proportionate share of fixed charges of investees accounted for by the equity method - - 7 5 4 6 Proportionate share of net loss of investees accounted for by the equity method - 1 21 17 43 29 -------- -------- -------- -------- -------- -------- Total additions 61 75 75 89 85 90 Deduct: Capitalized interest 3 7 8 7 2 12 Minority interest in net loss of consolidated subsidiaries 3 6 15 5 15 8 Undistributed proportionate share of net income of investees accounted for by the equity method - 6 4 2 - 3 -------- -------- -------- -------- -------- -------- Total deductions 6 19 27 14 17 23 TOTAL EARNINGS $ 344 $ 379 $ (642) $ 56 $ (271) $ 137 ======== ======== ======== ======== ======== ======== FIXED CHARGES Interest expense $ 203 $ 369 $ 296 $ 243 $ 298 $ 283 Capitalized interest 3 7 8 7 2 12 Amortization of debt discount, premium or expense 18 61 44 9 6 1 Interest portion of rental expense (1) 23 91 89 76 74 73 Proportionate share of fixed charges of investees accounted for by the equity method - - 7 5 4 6 -------- -------- -------- -------- -------- -------- TOTAL FIXED CHARGES $ 247 $ 528 $ 444 $ 340 $ 384 $ 375 ======== ======== ======== ======== ======== ======== TOTAL EARNINGS BEFORE FIXED CHARGES $ 591 $ 907 $ (198) $ 396 $ 113 $ 512 ======== ======== ======== ======== ======== ======== RATIO OF EARNINGS TO FIXED CHARGES 2.39 1.72 * 1.16 ** 1.36
* Earnings for the year ended December 31, 2003 were inadequate to cover fixed charges. The coverage deficiency was $642 million. ** Earnings for the year ended December 31, 2001 were inadequate to cover fixed charges. The coverage deficiency was $271 million. (1) Interest component of rental expense is estimated to equal 1/3 of such expense, which is considered a reasonable approximation of the interest factor.