The Goodyear Tire & Rubber Company (GT) 10-Q 2015 Q2 Quarterly report

EXHIBIT 12.1

THE GOODYEAR TIRE & RUBBER COMPANY AND SUBSIDIARIES

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

(Dollars in millions)	Six Months Ended June 30,		Year Ended December 31,
EARNINGS	2015		2014		2013		2012		2011		2010
Pre-tax income (loss) before adjustment for minority interests in consolidated subsidiaries or income or loss from equity investees	$	679	$	658	$	782	$	406	$	599	$	(3	)
Add:
Amortization of previously capitalized interest	6		11		10		8		9		9
Distributed income of equity investees	23		24		21		11		8		4
Total additions	29		35		31		19		17		13
Deduct:
Capitalized interest	10		24		39		22		31		26
Minority interest in pre-tax income of consolidated subsidiaries with no fixed charges	3		14		26		20		9		6
Total deductions	13		38		65		42		40		32
TOTAL EARNINGS (LOSS)	$	695	$	655	$	748	$	383	$	576	$	(22	)
FIXED CHARGES
Interest expense	$	209	$	428	$	392	$	357	$	330	$	316
Capitalized interest	10		24		39		22		31		26
Amortization of debt discount, premium or expense	1		11		15		13		14		14
Interest portion of rental expense (1)	58		114		119		121		118		111
Proportionate share of fixed charges of investees accounted for by the equity method	—		2		1		1		1		1
TOTAL FIXED CHARGES	$	278	$	579	$	566	$	514	$	494	$	468
TOTAL EARNINGS BEFORE FIXED CHARGES	$	973	$	1,234	$	1,314	$	897	$	1,070	$	446
RATIO OF EARNINGS TO FIXED CHARGES	3.50		2.13		2.32		1.75		2.17		*

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