Exhibit 12
EXHIBIT 12
THE GOODYEAR TIRE & RUBBER COMPANY AND SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(Dollars in millions)
9 MONTHS
ENDED TWELVE MONTHS ENDED
SEPTEMBER 30, DECEMBER 31,
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2002 2001 2000 1999 1998 1997
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EARNINGS
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INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES $ 20.0 $ (273.0) $ 58.8 $ 300.1 $ 930.4 $ 703.0
Add:
Amortization of previously capitalized interest 7.7 9.8 9.7 11.0 10.7 11.0
Minority interest in net income of
consolidated subsidiaries with fixed charges 44.3 26.7 45.6 42.9 33.6 45.1
Proportionate share of fixed charges of investees
accounted for by the equity method 2.8 3.1 5.7 5.5 4.8 6.5
Proportionate share of net loss of investees
accounted for by the equity method 9.6 44.6 28.4 0.3 - 0.1
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Total additions 64.4 84.2 89.4 59.7 49.1 62.7
Deduct:
Capitalized interest 5.5 6.4 12.0 11.8 6.6 6.2
Minority interest in net loss of consolidated subsidiaries 5.1 19.5 8.3 4.2 2.9 3.6
Undistributed proportionate share of net income
of investees accounted for by the equity method 0.5 1.1 4.3 2.2 - -
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Total deductions 11.1 27.0 24.6 18.2 9.5 9.8
TOTAL EARNINGS $ 73.3 $ (215.8) $ 123.6 $ 341.6 $ 970.0 $ 755.9
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FIXED CHARGES
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Interest expense $ 182.4 $ 292.4 $ 282.6 $ 179.4 $ 147.8 $ 119.5
Capitalized interest 5.5 6.4 12.0 11.8 6.6 6.2
Amortization of debt discount, premium or expense 6.6 7.1 1.5 0.7 1.2 0.1
Interest portion of rental expense 55.2 73.6 73.5 62.1 57.7 63.0
Proportionate share of fixed charges of investees
accounted for by the equity method 2.8 3.1 5.7 5.5 4.8 6.5
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TOTAL FIXED CHARGES $ 252.5 $ 382.6 $ 375.3 $ 259.5 $ 218.1 $ 195.3
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TOTAL EARNINGS BEFORE FIXED CHARGES $ 325.8 $ 166.8 $ 498.9 $ 601.1 $ 1,188.1 $ 951.2
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RATIO OF EARNINGS TO FIXED CHARGES 1.29 * 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.