EX-12.1 15 l25539aexv12w1.htm EX-12.1 EX-12.1
 

EXHIBIT 12.1
THE GOODYEAR TIRE & RUBBER COMPANY AND SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
                                                 
    3 Months                    
    Ended                    
    March                    
    31,   12 Months Ended December 31,
(Dollars in millions)   2007     2006     2005     2004     2003     2002  
EARNINGS
                                                
Pre-tax (loss) income from continuing operations before adjustment for minority interests in consolidated subsidiaries or income or loss from equity investees
   $ (27 )   $ (212 )   $ 441     $ 226     $ (719 )   $ (39 )
 
                                                
Add:
                                                
Amortization of previously capitalized interest
     3       12       11       11       11       10  
Distributed income of equity investees
     2       5       7       3       3       2  
 
                                                
Pre-tax losses of equity investees for which charges arising from guarantees are included in fixed charges
     —       —       —       —       10       7  
 
                                    
 
                                                
Total additions
     5       17       18       14       24       19  
 
                                                
Deduct:
                                                
Capitalized interest
     2       7       7       7       8       7  
Minority interest in pre-tax income of consolidated subsidiaries with no fixed charges
     4       8       12       11       11       7  
 
                                    
Total deductions
     6       15       19       18       19       14  
 
                                                
TOTAL (LOSS) EARNINGS
   $ (28 )   $ (210 )   $ 440     $ 222     $ (714 )   $ (34 )
 
                                    
 
                                                
FIXED CHARGES
                                                
Interest expense
   $ 127     $ 451     $ 411     $ 369     $ 296     $ 243  
Capitalized interest
     2       7       7       7       8       7  
Amortization of debt discount, premium or expense
     6       19       27       61       44       9  
Interest portion of rental expense (1)
     24       98       94       91       89       76  
Proportionate share of fixed charges of investees accounted for by the equity method
     —       —       —       —       7       5  
 
                                    
 
                                                
TOTAL FIXED CHARGES
   $ 159     $ 575     $ 539     $ 528     $ 444     $ 340  
 
                                    
 
                                                
TOTAL EARNINGS BEFORE FIXED CHARGES
   $ 131     $ 365     $ 979     $ 750     $ (270 )   $ 306  
 
                                    
 
                                                
RATIO OF EARNINGS TO FIXED CHARGES
     *       * *     1.82       1.42       * **     * ***
 
*   Earnings for the quarter ended March 31, 2007 were inadequate to cover fixed charges. The coverage deficiency was $28 million.
 
**   Earnings for the year ended December 31, 2006 were inadequate to cover fixed charges. The coverage deficiency was $210 million.
 
***   Earnings for the year ended December 31, 2003 were inadequate to cover fixed charges. The coverage deficiency was $714 million.
 
****   Earnings for the year ended December 31, 2002 were inadequate to cover fixed charges. The coverage deficiency was $34 million.
 
(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.