EX-12.1 7 l36233aexv12w1.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)   2009     2008     2007     2006     2005     2004  
EARNINGS
                                                
Pre-tax (loss) income from continuing operations before adjustment for minority interests in consolidated subsidiaries or income or loss from equity investees
   $ (366 )   $ 176     $ 436     $ (230 )   $ 424     $ 218  
Add:
                                                
 
                                                
Amortization of previously capitalized interest
     2       8       10       12       11       11  
Distributed income of equity investees
     3       3       3       5       7       3  
 
                                    
 
                                                
Total additions
     5       11       13       17       18       14  
Deduct:
                                                
Capitalized interest
     3       23       10       7       7       7  
Minority interest in pre-tax income of consolidated subsidiaries with no fixed charges
     2       11       14       8       12       11  
 
                                    
 
                                                
Total deductions
     5       34       24       15       19       18  
 
                                                
TOTAL (LOSS) EARNINGS
   $ (366 )   $ 153     $ 425     $ (228 )   $ 423     $ 214  
 
                                    
 
                                                
FIXED CHARGES
                                                
Interest expense
   $ 64     $ 320     $ 470     $ 467     $ 426     $ 376  
Capitalized interest
     3       23       10       7       7       7  
Amortization of debt discount, premium or expense
     3       17       26       21       29       62  
Interest portion of rental expense (1)
     26       105       101       98       94       91  
Proportionate share of fixed charges of investees accounted for by the equity method
     —       1       1       —       —       —  
 
                                    
TOTAL FIXED CHARGES
   $ 96     $ 466     $ 608     $ 593     $ 556     $ 536  
 
                                    
 
                                                
TOTAL (LOSS) EARNINGS BEFORE FIXED CHARGES
   $ (270 )   $ 619     $ 1,033     $ 365     $ 979     $ 750  
 
                                    
 
                                                
RATIO OF EARNINGS TO FIXED CHARGES
     *       1.33       1.70       **     1.76       1.40  
 
*   Earnings for the three months ended March 31, 2009 were inadequate to cover fixed charges. The coverage deficiency was $366 million.
 
**   Earnings for the year ended December 31, 2006 were inadequate to cover fixed charges. The coverage deficiency was $228 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.