EX-12.1 4 l34273aexv12w1.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
                                                 
    9 Months        
    Ended        
    September        
    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
  $ 530     $ 455     $ (212 )   $  441     $ 226     $ (719 )
Add:
                                               
 
                                               
Amortization of previously capitalized interest
    6       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
    9       13       17       18       14       24  
Deduct:
                                               
Capitalized interest
    19       10       7       7       7       8  
Minority interest in pre-tax income of consolidated subsidiaries with no fixed charges
    11       14       8       12       11       11  
 
                                   
 
                                               
Total deductions
    30       24       15       19       18       19  
 
                                               
TOTAL EARNINGS (LOSS)
  $ 509     $ 444     $ (210 )   $ 440     $ 222     $ (714 )
 
                                   
 
                                               
FIXED CHARGES
                                               
Interest expense
  $ 238     $ 452     $ 451     $ 411     $ 369     $ 296  
 
                                               
Capitalized interest
    19       10       7       7       7       8  
 
                                               
Amortization of debt discount, premium or expense
    13       24       19       27       61       44  
Interest portion of rental expense (1)
    76       101       98       94       91       89  
Proportionate share of fixed charges of investees accounted for by the equity method
    1       1                         7  
 
                                   
TOTAL FIXED CHARGES
  $ 347     $ 588     $ 575     $ 539     $ 528     $ 444  
 
                                   
TOTAL EARNINGS (LOSS) BEFORE FIXED CHARGES
  $ 856     $ 1,032     $ 365     $ 979     $ 750     $ (270 )
 
                                   
RATIO OF EARNINGS TO FIXED CHARGES
    2.47       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.