The Goodyear Tire & Rubber Company (GT) 10-Q 2018 Q3 Quarterly report

EXHIBIT 12.1

THE GOODYEAR TIRE & RUBBER COMPANY AND SUBSIDIARIES

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

(Dollars in millions)	Nine Months Ended September 30,		Year Ended December 31,
EARNINGS	2018		2017			2016			2015			2014		2013
Pre-tax income before adjustment for minority interests in consolidated subsidiaries or income or loss from equity investees	$	814	$	884		$	1,206		$	592		$	658	$	782
Add:
Amortization of previously capitalized interest	11		13			13			12			11		10
Distributed income of equity investees	—		5			25			24			24		21
Total additions	11		18			38			36			35		31
Deduct:
Capitalized interest	12		23			26			19			24		39
Minority interest in pre-tax income of consolidated subsidiaries with no fixed charges	1		4			8			8			14		26
Total deductions	13		27			34			27			38		65
TOTAL EARNINGS	$	812	$	875		$	1,210		$	601		$	655	$	748
FIXED CHARGES
Interest expense	$	241	$	347		$	391		$	438		$	439	$	407
Debt extinguishment costs included in interest expense	—		(6		)	(12		)	(17		)	—		—
Capitalized interest	12		23			26			19			24		39
Interest portion of rental expense (1)	78		104			100			97			114		119
TOTAL FIXED CHARGES	$	331	$	468		$	505		$	537		$	577	$	565
TOTAL EARNINGS BEFORE FIXED CHARGES	$	1,143	$	1,343		$	1,715		$	1,138		$	1,232	$	1,313
RATIO OF EARNINGS TO FIXED CHARGES	3.45		2.87			3.40			2.12			2.14		2.32

(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.