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) | Six Months Ended June 30, | Year Ended December 31, |
| EARNINGS | 2014 | 2013 | 2012 | 2011 | 2010 | 2009 |
| Pre-tax income (loss) before adjustment for minority interests in consolidated subsidiaries or income or loss from equity investees | $ | 253 |
| $ | 782 |
| $ | 406 |
| $ | 599 |
| $ | (3 | ) | $ | (365 | ) |
| Add: | | | | | | |
| Amortization of previously capitalized interest | 6 |
| 10 |
| 8 |
| 9 |
| 9 |
| 8 |
|
| Distributed income of equity investees | 21 |
| 21 |
| 11 |
| 8 |
| 4 |
| 3 |
|
| Total additions | 27 |
| 31 |
| 19 |
| 17 |
| 13 |
| 11 |
|
| Deduct: | | | | | | |
| Capitalized interest | 13 |
| 39 |
| 22 |
| 31 |
| 26 |
| 14 |
|
| Minority interest in pre-tax income of consolidated subsidiaries with no fixed charges | 9 |
| 26 |
| 20 |
| 9 |
| 6 |
| 4 |
|
| Total deductions | 22 |
| 65 |
| 42 |
| 40 |
| 32 |
| 18 |
|
| TOTAL EARNINGS (LOSS) | $ | 258 |
| $ | 748 |
| $ | 383 |
| $ | 576 |
| $ | (22 | ) | $ | (372 | ) |
| | | | | | | |
| FIXED CHARGES | | | | | | |
| Interest expense | $ | 207 |
| $ | 392 |
| $ | 357 |
| $ | 330 |
| $ | 316 |
| $ | 311 |
|
| Capitalized interest | 13 |
| 39 |
| 22 |
| 31 |
| 26 |
| 14 |
|
| Amortization of debt discount, premium or expense | 8 |
| 15 |
| 13 |
| 14 |
| 14 |
| 16 |
|
| Interest portion of rental expense (1) | 60 |
| 119 |
| 121 |
| 118 |
| 111 |
| 105 |
|
| Proportionate share of fixed charges of investees accounted for by the equity method | 1 |
| 1 |
| 1 |
| 1 |
| 1 |
| 1 |
|
| | | | | | | |
| TOTAL FIXED CHARGES | $ | 289 |
| $ | 566 |
| $ | 514 |
| $ | 494 |
| $ | 468 |
| $ | 447 |
|
| | | | | | | |
| TOTAL EARNINGS BEFORE FIXED CHARGES | $ | 547 |
| $ | 1,314 |
| $ | 897 |
| $ | 1,070 |
| $ | 446 |
| $ | 75 |
|
| | | | | | | |
| Preferred Dividends | $ | 7 |
| $ | 29 |
| $ | 29 |
| 22 |
| $ * |
| $ * |
|
| Ratio of pre-tax income to net income | 1.35 |
| 1.20 |
| 1.86 |
| 1.48 |
| * |
| * |
|
| | | | | | | |
| Preferred Dividend Factor | $ | 9 |
| $ | 35 |
| $ | 54 |
| $ | 33 |
| $ * |
| $ * |
|
| Total Fixed Charges | 289 |
| 566 |
| 514 |
| 494 |
| 468 |
| 447 |
|
| TOTAL FIXED CHARGES AND PREFERRED DIVIDENDS | $ | 298 |
| $ | 601 |
| $ | 568 |
| $ | 527 |
| $ | 468 |
| $ | 447 |
|
| | | | | | | |
| RATIO OF EARNINGS TO FIXED CHARGES | 1.89 |
| 2.32 |
| 1.75 |
| 2.17 |
| ** |
| *** |
|
| RATIO OF EARNINGS TO FIXED CHARGES AND PREFERRED DIVIDENDS | 1.84 |
| 2.19 |
| 1.58 |
| 2.03 |
| ** |
| *** |
|
* 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.
