EXHIBIT 12
THE GOODYEAR TIRE & RUBBER COMPANY AND SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
| Restated | ||||||||||||||||||||||||
| 9 Months | ||||||||||||||||||||||||
| Ended | ||||||||||||||||||||||||
| September | ||||||||||||||||||||||||
| 30, | 12 Months Ended December 31, | |||||||||||||||||||||||
| (Dollars in millions) | 2004 | 2003 | 2002 | 2001 | 2000 | 1999 | ||||||||||||||||||
EARNINGS | ||||||||||||||||||||||||
| Income (loss) before income taxes | $ | 135.2 | $ | (690.3 | ) | $ | (19.0 | ) | $ | (339.0 | ) | $ | 69.9 | $ | 279.6 | |||||||||
| Add: | ||||||||||||||||||||||||
| Amortization of previously capitalized interest | 8.5 | 10.7 | 10.2 | 9.9 | 9.8 | 11.0 | ||||||||||||||||||
| Minority interest in net income of consolidated subsidiaries with fixed charges | 46.8 | 36.3 | 57.1 | 28.0 | 45.5 | 42.6 | ||||||||||||||||||
| Proportionate share of fixed charges of investees accounted for by the equity method | 0.4 | 7.2 | 4.7 | 4.1 | 5.8 | 5.5 | ||||||||||||||||||
| Proportionate share of net loss of investees accounted for by the equity method | 0.7 | 21.2 | 17.1 | 42.8 | 28.6 | 0.3 | ||||||||||||||||||
| Total additions | 56.4 | 75.4 | 89.1 | 84.8 | 89.7 | 59.4 | ||||||||||||||||||
| Deduct: | ||||||||||||||||||||||||
| Capitalized interest | 5.5 | 8.0 | 7.2 | 1.7 | 11.9 | 18.1 | ||||||||||||||||||
| Minority interest in net loss of consolidated subsidiaries | 4.0 | 14.9 | 5.3 | 15.0 | 8.3 | 4.2 | ||||||||||||||||||
| Undistributed proportionate share of net income of investees accounted for by the equity method | 3.1 | 3.9 | 1.7 | 0.3 | 2.9 | 1.8 | ||||||||||||||||||
| Total deductions | 12.6 | 26.8 | 14.2 | 17.0 | 23.1 | 24.1 | ||||||||||||||||||
| TOTAL EARNINGS | $ | 179.0 | $ | (641.7 | ) | $ | 55.9 | $ | (271.2 | ) | $ | 136.5 | $ | 314.9 | ||||||||||
FIXED CHARGES | ||||||||||||||||||||||||
| Interest expense | $ | 268.3 | $ | 296.3 | $ | 242.7 | $ | 298.0 | $ | 282.9 | $ | 173.1 | ||||||||||||
| Capitalized interest | 5.5 | 8.0 | 7.2 | 1.7 | 11.9 | 18.1 | ||||||||||||||||||
| Amortization of debt discount, premium or expense | 40.3 | 43.7 | 8.8 | 6.0 | 1.5 | 0.7 | ||||||||||||||||||
| Interest portion of rental expense (1) | 66.3 | 88.4 | 76.7 | 74.1 | 73.5 | 62.1 | ||||||||||||||||||
| Proportionate share of fixed charges of investees accounted for by the equity method | 0.4 | 7.2 | 4.7 | 4.1 | 5.8 | 5.5 | ||||||||||||||||||
| TOTAL FIXED CHARGES | $ | 380.8 | $ | 443.6 | $ | 340.1 | $ | 383.9 | $ | 375.6 | $ | 259.5 | ||||||||||||
| TOTAL EARNINGS BEFORE FIXED CHARGES | $ | 559.8 | $ | (198.1 | ) | $ | 396.0 | $ | 112.7 | $ | 512.1 | $ | 574.4 | |||||||||||
| RATIO OF EARNINGS TO FIXED CHARGES | 1.47 | * | 1.16 | * | * | 1.36 | 2.21 | |||||||||||||||||
| * | Earnings for the year ended December 31, 2003 were inadequate to cover fixed charges. The coverage deficiency was $641.7 million. | |
| ** | Earnings for the year ended December 31, 2001 were inadequate to cover fixed charges. The coverage deficiency was $271.2 million. |
(1) Interest component of rental expense is estimated to equal 1/3 of such expense, which is considered a reasonable approximation of the interest factor.
