EXHIBIT 12.1
THE GOODYEAR TIRE & RUBBER COMPANY AND SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(Dollars in millions) | Year Ended December 31, | ||||||||||||||||||
EARNINGS | 2016 | 2015 | 2014 | 2013 | 2012 | ||||||||||||||
Pre-tax income before adjustment for minority interests in consolidated subsidiaries or income or loss from equity investees | $ | 1,206 | $ | 592 | $ | 658 | $ | 782 | $ | 406 | |||||||||
Add: | |||||||||||||||||||
Amortization of previously capitalized interest | 13 | 12 | 11 | 10 | 8 | ||||||||||||||
Distributed income of equity investees | 25 | 24 | 24 | 21 | 11 | ||||||||||||||
Total additions | 38 | 36 | 35 | 31 | 19 | ||||||||||||||
Deduct: | |||||||||||||||||||
Capitalized interest | 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 | 34 | 27 | 38 | 65 | 42 | ||||||||||||||
TOTAL EARNINGS | $ | 1,210 | $ | 601 | $ | 655 | $ | 748 | $ | 383 | |||||||||
FIXED CHARGES | |||||||||||||||||||
Interest expense | $ | 391 | $ | 438 | $ | 439 | $ | 407 | $ | 385 | |||||||||
Debt extinguishment costs included in interest expense | (12 | ) | (17 | ) | — | — | (15 | ) | |||||||||||
Capitalized interest | 26 | 19 | 24 | 39 | 22 | ||||||||||||||
Interest portion of rental expense (1) | 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 | $ | 507 | $ | 538 | $ | 579 | $ | 566 | $ | 514 | |||||||||
TOTAL EARNINGS BEFORE FIXED CHARGES | $ | 1,717 | $ | 1,139 | $ | 1,234 | $ | 1,314 | $ | 897 | |||||||||
RATIO OF EARNINGS TO FIXED CHARGES | 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. |