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EXHIBIT 12
THE GOODYEAR TIRE & RUBBER COMPANY AND SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
6 Months
Ended
(Dollars in millions) June 30, 12 Months Ended December 31,
-------- -----------------------------------------------------------
2005 2004 2003 2002 2001 2000
-------- -------- -------- -------- -------- --------
EARNINGS
Income (loss) before income taxes $ 289 $ 323 $ (690) $ (19) $ (339) $ 70
Add:
Amortization of previously capitalized interest 5 11 11 10 10 10
Minority interest in net income of consolidated
subsidiaries with fixed charges 56 63 36 57 28 45
Proportionate share of fixed charges of
investees accounted for by the equity method - - 7 5 4 6
Proportionate share of net loss of investees
accounted for by the equity method - 1 21 17 43 29
-------- -------- -------- -------- -------- --------
Total additions 61 75 75 89 85 90
Deduct:
Capitalized interest 3 7 8 7 2 12
Minority interest in net loss of consolidated
subsidiaries 3 6 15 5 15 8
Undistributed proportionate share of net income
of investees accounted for by the equity method - 6 4 2 - 3
-------- -------- -------- -------- -------- --------
Total deductions 6 19 27 14 17 23
TOTAL EARNINGS $ 344 $ 379 $ (642) $ 56 $ (271) $ 137
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FIXED CHARGES
Interest expense $ 203 $ 369 $ 296 $ 243 $ 298 $ 283
Capitalized interest 3 7 8 7 2 12
Amortization of debt discount, premium or expense 18 61 44 9 6 1
Interest portion of rental expense (1) 23 91 89 76 74 73
Proportionate share of fixed charges of
investees accounted for by the equity method - - 7 5 4 6
-------- -------- -------- -------- -------- --------
TOTAL FIXED CHARGES $ 247 $ 528 $ 444 $ 340 $ 384 $ 375
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TOTAL EARNINGS BEFORE FIXED CHARGES $ 591 $ 907 $ (198) $ 396 $ 113 $ 512
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RATIO OF EARNINGS TO FIXED CHARGES 2.39 1.72 * 1.16 ** 1.36
* Earnings for the year ended December 31, 2003 were inadequate to cover
fixed charges. The coverage deficiency was $642 million.
** Earnings for the year ended December 31, 2001 were inadequate to cover
fixed charges. The coverage deficiency was $271 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.