The Goodyear Tire & Rubber Company (GT) 10-K 2012 FY Annual 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)	Year Ended December 31,
EARNINGS	2012		2011		2010			2009			2008
Pre-tax income (loss) before adjustment for minority interests in consolidated subsidiaries or income or loss from equity investees	$	406	$	599	$	(3	)	$	(365	)	$	176
Add:
Amortization of previously capitalized interest	8		9		9			8			8
Distributed income of equity investees	11		8		4			3			3
Total additions	19		17		13			11			11
Deduct:
Capitalized interest (2)	22		31		26			14			23
Minority interest in pre-tax income of consolidated subsidiaries with no fixed charges	20		9		6			4			11
Total deductions	42		40		32			18			34
TOTAL EARNINGS (LOSS)	$	383	$	576	$	(22	)	$	(372	)	$	153
FIXED CHARGES
Interest expense	$	357	$	330	$	316		$	311		$	320
Capitalized interest (2)	22		31		26			14			23
Amortization of debt discount, premium or expense	13		14		14			16			17
Interest portion of rental expense (1)	121		118		111			105			105
Proportionate share of fixed charges of investees accounted for by the equity method	1		1		1			1			1
TOTAL FIXED CHARGES	$	514	$	494	$	468		$	447		$	466
TOTAL EARNINGS BEFORE FIXED CHARGES	$	897	$	1,070	$	446		$	75		$	619
Preferred Dividends	$	29	22		$ *			$ *			$ *
Ratio of pre-tax income to net income	1.86		1.48		*			*			*
Preferred Dividend Factor	$	54	$	33	$ *			$ *			$ *
Total Fixed Charges	514		494		468			447			466
TOTAL FIXED CHARGES AND PREFERRED DIVIDENDS	$	568	$	527	$	468		$	447		$	466
RATIO OF EARNINGS TO FIXED CHARGES	1.75		2.17		**			***			1.33
RATIO OF EARNINGS TO FIXED CHARGES AND PREFERRED DIVIDENDS	1.58		2.03		**			***			1.33

*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.

(2) Capitalized interest in 2012 includes a $13 million expense adjustment to correct capitalized interest recorded in prior periods.