EXHIBIT 12
THE GOODYEAR TIRE & RUBBER COMPANY AND SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
| Restated | ||||||||||||||||||||||||
| 3 MONTHS | ||||||||||||||||||||||||
| ENDED | TWELVE MONTHS ENDED | |||||||||||||||||||||||
| MARCH 31, | DECEMBER 31, | |||||||||||||||||||||||
| (Dollars in millions) | 2003 | 2002 | 2001 | 2000 | 1999 | 1998 | ||||||||||||||||||
| EARNINGS | ||||||||||||||||||||||||
| Income (loss) from continuing operations before income taxes | $ | (165.5 | ) | $ | (13.7 | ) | $ | (337.9 | ) | $ | 77.1 | $ | 276.7 | $ | 868.6 | |||||||||
| Add: | ||||||||||||||||||||||||
| Amortization of previously capitalized interest | 2.7 | 10.2 | 9.9 | 9.8 | 11.0 | 10.7 | ||||||||||||||||||
| Minority interest in net income of consolidated subsidiaries with fixed charges | 9.5 | 57.4 | 27.4 | 44.6 | 42.6 | 32.8 | ||||||||||||||||||
| Proportionate share of fixed charges of investees accounted for by the equity method | 1.5 | 4.7 | 4.1 | 5.8 | 5.5 | 4.8 | ||||||||||||||||||
| Proportionate share of net loss of investees accounted for by the equity method | 4.2 | 16.1 | 42.9 | 28.0 | 0.3 | 0.3 | ||||||||||||||||||
| Total additions | 17.9 | 88.4 | 84.3 | 88.2 | 59.4 | 48.6 | ||||||||||||||||||
| Deduct: | ||||||||||||||||||||||||
| Capitalized interest | 1.9 | 7.2 | 1.7 | 11.9 | 18.1 | 5.9 | ||||||||||||||||||
| Minority interest in net loss of consolidated subsidiaries | — | 5.2 | 15.0 | 8.3 | 4.2 | 2.9 | ||||||||||||||||||
| Undistributed proportionate share of net income of investees accounted for by the equity method | — | 1.3 | 0.2 | 2.9 | 1.8 | — | ||||||||||||||||||
| Total deductions | 1.9 | 13.7 | 16.9 | 23.1 | 24.1 | 8.8 | ||||||||||||||||||
| TOTAL EARNINGS | $ | (149.5 | ) | $ | 61.0 | $ | (270.5 | ) | $ | 142.2 | $ | 312.0 | $ | 908.4 | ||||||||||
| FIXED CHARGES | ||||||||||||||||||||||||
| Interest expense | $ | 58.4 | $ | 241.7 | $ | 297.1 | $ | 282.8 | $ | 173.1 | $ | 148.5 | ||||||||||||
| Capitalized interest | 1.9 | 7.2 | 1.7 | 11.9 | 18.1 | 5.9 | ||||||||||||||||||
| Amortization of debt discount, premium or expense | 2.1 | 8.8 | 6.0 | 1.5 | 0.7 | 1.2 | ||||||||||||||||||
| Interest portion of rental expense | 22.1 | 76.7 | 74.1 | 73.5 | 62.1 | 57.7 | ||||||||||||||||||
| Proportionate share of fixed charges of investees accounted for by the equity method | 1.5 | 4.7 | 4.1 | 5.8 | 5.5 | 4.8 | ||||||||||||||||||
| TOTAL FIXED CHARGES | $ | 86.0 | $ | 339.1 | $ | 383.0 | $ | 375.5 | $ | 259.5 | $ | 218.1 | ||||||||||||
| TOTAL EARNINGS BEFORE FIXED CHARGES | $ | (63.5 | ) | $ | 400.1 | $ | 112.5 | $ | 517.7 | $ | 571.5 | $ | 1,126.5 | |||||||||||
| RATIO OF EARNINGS TO FIXED CHARGES | * | 1.18 | ** | 1.38 | 2.20 | 5.17 | ||||||||||||||||||
* Earnings for the three months ended March 31, 2003 were inadequate to cover fixed charges. The coverage deficiency was $149.5 million.
** Earnings for the year ended December 31, 2001 were inadequate to cover fixed charges. The coverage deficiency was $270.5 million.
