EX-12.1 5 l32599aexv12w1.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
                                                 
    6 Months        
    Ended        
    June 30,     12 Months Ended December 31,  
(Dollars in millions)   2008     2007     2006     2005     2004     2003  
EARNINGS
                                               
Pre-tax income (loss) from continuing operations before adjustment for minority interests in consolidated subsidiaries or income or loss from equity investees
  $ 415     $ 455     $ (212 )   $  441     $ 226     $ (719 )
Add:
                                               
 
                                               
Amortization of previously capitalized interest
    4       10       12       11       11       11  
 
                                               
Distributed income of equity investees
    3       3       5       7       3       3  
Pre-tax losses of equity investees for which charges arising from guarantees are included in fixed charges
                                  10  
 
                                   
 
                                               
Total additions
    7       13       17       18       14       24  
Deduct:
                                               
Capitalized interest
    10       10       7       7       7       8  
Minority interest in pre-tax income of consolidated subsidiaries with no fixed charges
    9       14       8       12       11       11  
 
                                   
 
                                               
Total deductions
    19       24       15       19       18       19  
 
                                               
TOTAL EARNINGS (LOSS)
  $ 403     $ 444     $ (210 )   $ 440     $ 222     $ (714 )
 
                                   
FIXED CHARGES
                                               
Interest expense
  $ 165     $ 452     $ 451     $ 411     $ 369     $ 296  
 
                                               
Capitalized interest
    10       10       7       7       7       8  
 
                                               
Amortization of debt discount, premium or expense
    9       24       19       27       61       44  
Interest portion of rental expense (1)
    51       101       98       94       91       89  
Proportionate share of fixed charges of investees accounted for by the equity method
    1       1                         7  
 
                                   
TOTAL FIXED CHARGES
  $ 236     $ 588     $ 575     $ 539     $ 528     $ 444  
 
                                   
 
                                               
TOTAL EARNINGS BEFORE FIXED CHARGES
  $ 639     $ 1,032     $ 365     $ 979     $ 750     $ (270 )
 
                                   
 
                                               
RATIO OF EARNINGS TO FIXED CHARGES
    2.71       1.76       *       1.82       1.42       **  
 
*   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.
 
(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.