The Goodyear Tire & Rubber Company (GT) 10-Q 2012 Q3 Quarterly report

EXHIBIT 12.1

THE GOODYEAR TIRE & RUBBER COMPANY AND SUBSIDIARIES

COMPUTATION OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED DIVIDENDS

(Dollars in millions)	Nine Months Ended September 30,				Year Ended December 31,
EARNINGS	2012		2011			2010			2009			2008		2007
Pre-tax income (loss) from continuing operations before adjustment for minority interests in consolidated subsidiaries or income or loss from equity investees	$	385	$	599		$	(3	)	$	(365	)	$	176	$	436
Add:
Amortization of previously capitalized interest	6		9			9			8			8		10
Distributed income of equity investees	11		8			4			3			3		3
Total additions	17		17			13			11			11		13
Deduct:
Capitalized interest	13		31			26			14			23		10
Minority interest in pre-tax income of consolidated subsidiaries with no fixed charges	20		9			6			4			11		14
Total deductions	33		40			32			18			34		24
TOTAL EARNINGS (LOSS)	$	369	$	576		$	(22	)	$	(372	)	$	153	$	425
FIXED CHARGES
Interest expense	$	270	$	330		$	316		$	311		$	320	$	470
Capitalized interest	13		31			26			14			23		10
Amortization of debt discount, premium or expense	10		14			14			16			17		26
Interest portion of rental expense (1)	89		118			111			105			105		101
Proportionate share of fixed charges of investees accounted for by the equity method	1		1			1			1			1		1
TOTAL FIXED CHARGES	$	383	$	494		$	468		$	447		$	466	$	608
TOTAL EARNINGS BEFORE FIXED CHARGES	$	752	$	1,070		$	446		$	75		$	619	$	1,033
Preferred Dividends	$	22	$	22		$ *			$ *			$ *		$ *
Ratio of pre-tax income to net income	1.67		1.48			*			*			*		*
Preferred Dividend Factor	$	37	$	33		$ *			$ *			$ *		$ *
Total Fixed Charges	383		494			468			447			466		608
TOTAL FIXED CHARGES AND PREFERRED DIVIDENDS	$	420	$	527		$	468		$	447		$	466	$	608
RATIO OF EARNINGS TO FIXED CHARGES	1.96		2.17			**			***			1.33		1.70
RATIO OF EARNINGS TO FIXED CHARGES AND PREFERRED DIVIDENDS	1.79		2.03			**			***			1.33		1.70

*No preferred stock was outstanding for these periods.

**Earnings for the year ended December 31, 2010 were inadequate to cover fixed charges. The coverage deficiency was $22 million.

***Earnings for the year ended December 31, 2009 were inadequate to cover fixed charges. The coverage deficiency was $372 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.