The Goodyear Tire & Rubber Company (GT) 10-Q 2017 Q1 Quarterly report

EXHIBIT 12.1

THE GOODYEAR TIRE & RUBBER COMPANY AND SUBSIDIARIES

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

(Dollars in millions)	Three Months Ended March 31,		Year Ended December 31,
EARNINGS	2017		2016			2015			2014		2013		2012
Pre-tax income before adjustment for minority interests in consolidated subsidiaries or income or loss from equity investees	$	239	$	1,206		$	592		$	658	$	782	$	406
Add:
Amortization of previously capitalized interest	3		13			12			11		10		8
Distributed income of equity investees	—		25			24			24		21		11
Total additions	3		38			36			35		31		19
Deduct:
Capitalized interest	5		26			19			24		39		22
Minority interest in pre-tax income of consolidated subsidiaries with no fixed charges	—		8			8			14		26		20
Total deductions	5		34			27			38		65		42
TOTAL EARNINGS	$	237	$	1,210		$	601		$	655	$	748	$	383
FIXED CHARGES
Interest expense	$	89	$	391		$	438		$	439	$	407	$	385
Debt extinguishment costs included in interest expense	—		(12		)	(17		)	—		—		(15		)
Capitalized interest	5		26			19			24		39		22
Interest portion of rental expense (1)	24		100			97			114		119		121
Proportionate share of fixed charges of investees accounted for by the equity method	—		2			1			2		1		1
TOTAL FIXED CHARGES	$	118	$	507		$	538		$	579	$	566	$	514
TOTAL EARNINGS BEFORE FIXED CHARGES	$	355	$	1,717		$	1,139		$	1,234	$	1,314	$	897
RATIO OF EARNINGS TO FIXED CHARGES	3.01		3.39			2.12			2.13		2.32		1.75

(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.