Attached files
| file | filename |
|---|---|
| 10-Q - FORM 10-Q - GOODYEAR TIRE & RUBBER CO /OH/ | l37853e10vq.htm |
| EX-10.1 - EX-10.1 - GOODYEAR TIRE & RUBBER CO /OH/ | l37853exv10w1.htm |
| EX-32.1 - EX-32.1 - GOODYEAR TIRE & RUBBER CO /OH/ | l37853exv32w1.htm |
| EX-23.1 - EX-23.1 - GOODYEAR TIRE & RUBBER CO /OH/ | l37853exv23w1.htm |
| EX-31.1 - EX-31.1 - GOODYEAR TIRE & RUBBER CO /OH/ | l37853exv31w1.htm |
| EX-31.2 - EX-31.2 - GOODYEAR TIRE & RUBBER CO /OH/ | l37853exv31w2.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
| 9 Months | ||||||||||||||||||||||||
| Ended | ||||||||||||||||||||||||
| September | ||||||||||||||||||||||||
| 30, | 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 |
$ | (499 | ) | $ | 176 | $ | 436 | $ | (230 | ) | $ | 424 | $ | 218 | ||||||||||
Add: |
||||||||||||||||||||||||
Amortization of previously capitalized interest |
6 | 8 | 10 | 12 | 11 | 11 | ||||||||||||||||||
Distributed income of equity investees |
3 | 3 | 3 | 5 | 7 | 3 | ||||||||||||||||||
Total additions |
9 | 11 | 13 | 17 | 18 | 14 | ||||||||||||||||||
Deduct: |
||||||||||||||||||||||||
Capitalized interest |
9 | 23 | 10 | 7 | 7 | 7 | ||||||||||||||||||
Minority interest in pre-tax income of
consolidated subsidiaries with no fixed charges |
6 | 11 | 14 | 8 | 12 | 11 | ||||||||||||||||||
Total deductions |
15 | 34 | 24 | 15 | 19 | 18 | ||||||||||||||||||
TOTAL (LOSS) EARNINGS |
$ | (505 | ) | $ | 153 | $ | 425 | $ | (228 | ) | $ | 423 | $ | 214 | ||||||||||
FIXED CHARGES |
||||||||||||||||||||||||
Interest expense |
$ | 228 | $ | 320 | $ | 470 | $ | 467 | $ | 426 | $ | 376 | ||||||||||||
Capitalized interest |
9 | 23 | 10 | 7 | 7 | 7 | ||||||||||||||||||
Amortization of debt discount, premium or expense |
14 | 17 | 26 | 21 | 29 | 62 | ||||||||||||||||||
Interest portion of rental expense (1) |
66 | 105 | 101 | 98 | 94 | 91 | ||||||||||||||||||
Proportionate share of fixed charges of
investees accounted for by the equity method |
1 | 1 | 1 | — | — | — | ||||||||||||||||||
TOTAL FIXED CHARGES |
$ | 318 | $ | 466 | $ | 608 | $ | 593 | $ | 556 | $ | 536 | ||||||||||||
TOTAL (LOSS) EARNINGS BEFORE FIXED CHARGES |
$ | (187 | ) | $ | 619 | $ | 1,033 | $ | 365 | $ | 979 | $ | 750 | |||||||||||
RATIO OF EARNINGS TO FIXED CHARGES |
* | 1.33 | 1.70 | ** | 1.76 | 1.40 | ||||||||||||||||||
| * | Earnings for the nine months ended September 30, 2009 were inadequate to cover fixed charges. The coverage deficiency was $505 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. |