Attached files
| file | filename |
|---|---|
| 10-Q - FORM 10-Q - GOODYEAR TIRE & RUBBER CO /OH/ | l39499e10vq.htm |
| EX-31.1 - EX-31.1 - GOODYEAR TIRE & RUBBER CO /OH/ | l39499exv31w1.htm |
| EX-31.2 - EX-31.2 - GOODYEAR TIRE & RUBBER CO /OH/ | l39499exv31w2.htm |
| EX-32.1 - EX-32.1 - GOODYEAR TIRE & RUBBER CO /OH/ | l39499exv32w1.htm |
EXHIBIT 12.1
THE GOODYEAR TIRE & RUBBER COMPANY AND SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
| Three | ||||||||||||||||||||||||
| Months | ||||||||||||||||||||||||
| Ended | ||||||||||||||||||||||||
| March | ||||||||||||||||||||||||
| 31, | Year Ended December 31, | |||||||||||||||||||||||
| (Dollars in millions) | 2010 | 2009 | 2008 | 2007 | 2006 | 2005 | ||||||||||||||||||
EARNINGS |
||||||||||||||||||||||||
Pre-tax income (loss) from continuing operations
before adjustment for minority interests in
consolidated subsidiaries or income or loss from
equity investees |
$ | 29 | $ | (365 | ) | $ | 176 | $ | 436 | $ | (230 | ) | $ | 424 | ||||||||||
Add: |
||||||||||||||||||||||||
Amortization of previously capitalized interest |
2 | 8 | 8 | 10 | 12 | 11 | ||||||||||||||||||
Distributed income of equity investees |
4 | 3 | 3 | 3 | 5 | 7 | ||||||||||||||||||
Total additions |
6 | 11 | 11 | 13 | 17 | 18 | ||||||||||||||||||
Deduct: |
||||||||||||||||||||||||
Capitalized interest |
7 | 14 | 23 | 10 | 7 | 7 | ||||||||||||||||||
Minority interest in pre-tax income of
consolidated subsidiaries with no fixed charges |
5 | 4 | 11 | 14 | 8 | 12 | ||||||||||||||||||
Total deductions |
12 | 18 | 34 | 24 | 15 | 19 | ||||||||||||||||||
TOTAL EARNINGS (LOSS) |
$ | 23 | $ | (372 | ) | $ | 153 | $ | 425 | $ | (228 | ) | $ | 423 | ||||||||||
FIXED CHARGES |
||||||||||||||||||||||||
Interest expense |
$ | 74 | $ | 311 | $ | 320 | $ | 470 | $ | 467 | $ | 426 | ||||||||||||
Capitalized interest |
7 | 14 | 23 | 10 | 7 | 7 | ||||||||||||||||||
Amortization of debt discount, premium or expense |
4 | 16 | 17 | 26 | 21 | 29 | ||||||||||||||||||
Interest portion of rental expense (1) |
26 | 105 | 105 | 101 | 98 | 94 | ||||||||||||||||||
Proportionate share of fixed charges of
investees accounted for by the equity method |
— | 1 | 1 | 1 | — | — | ||||||||||||||||||
TOTAL FIXED CHARGES |
$ | 111 | $ | 447 | $ | 466 | $ | 608 | $ | 593 | $ | 556 | ||||||||||||
TOTAL EARNINGS BEFORE FIXED CHARGES |
$ | 134 | $ | 75 | $ | 619 | $ | 1,033 | $ | 365 | $ | 979 | ||||||||||||
RATIO OF EARNINGS TO FIXED CHARGES |
1.21 | * | 1.33 | 1.70 | ** | 1.76 | ||||||||||||||||||
| * | Earnings for the year ended December 31, 2009 were inadequate to cover fixed charges. The coverage deficiency was $372 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. |