EXHIBIT 12
THE GOODYEAR TIRE & RUBBER COMPANY AND SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(Dollars in millions)
6 MONTHS
ENDED TWELVE MONTHS ENDED
JUNE 30, DECEMBER 31,
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2002 2001 2000 1999 1998 1997
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EARNINGS
Income (loss) from continuing operations before income taxes $ (36.4) $ (273.0)$ 58.8 $ 300.1 $ 930.4 $ 703.0
Add:
Amortization of previously capitalized interest 5.1 9.8 9.7 11.0 10.7 11.0
Minority interest in net income of
consolidated subsidiaries with fixed charges 33.3 26.7 45.6 42.9 33.6 45.1
Proportionate share of fixed charges of investees
accounted for by the equity method 1.8 3.1 5.7 5.5 4.8 6.5
Proportionate share of net loss of investees
accounted for by the equity method 6.6 44.6 28.4 0.3 -- 0.1
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Total additions 46.8 84.2 89.4 59.7 49.1 62.7
Deduct:
Capitalized interest 4.0 6.4 12.0 11.8 6.6 6.2
Minority interest in net loss of consolidated subsidiaries 5.0 19.5 8.3 4.2 2.9 3.6
Undistributed proportionate share of net income
of investees accounted for by the equity method 0.3 1.1 4.3 2.2 -- --
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Total deductions 9.3 27.0 24.6 18.2 9.5 9.8
TOTAL EARNINGS $ 1.1 $ (215.8)$ 123.6 $ 341.6 $ 970.0 $ 755.9
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FIXED CHARGES
Interest expense $ 120.6 $ 292.4 $ 282.6 $ 179.4 $ 147.8 $ 119.5
Capitalized interest 4.0 6.4 12.0 11.8 6.6 6.2
Amortization of debt discount, premium or expense 4.4 7.1 1.5 0.7 1.2 0.1
Interest portion of rental expense 36.8 73.6 73.5 62.1 57.7 63.0
Proportionate share of fixed charges of investees
accounted for by the equity method 1.8 3.1 5.7 5.5 4.8 6.5
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TOTAL FIXED CHARGES $ 167.6 $ 382.6 $ 375.3 $ 259.5 $ 218.1 $ 195.3
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TOTAL EARNINGS BEFORE FIXED CHARGES $ 168.7 $ 166.8 $ 498.9 $ 601.1 $ 1,188.1 $ 951.2
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RATIO OF EARNINGS TO FIXED CHARGES 1.01 * 1.33 2.32 5.45 4.87
*Earnings for the year ended December 31, 2001 were inadequate to cover fixed
charges. The coverage deficiency was $215.8 million.