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EXHIBIT 12
THE GOODYEAR TIRE & RUBBER COMPANY AND SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
($ in millions)
EARNINGS 1996 1995 1994 1993 1992
-------- --------- --------- ---------- --------
Income before income taxes, extraordinary
items and cumulative effect of accounting changes $122.3 $ 925.8 $ 865.7 $ 784.9 $629.9
Add:
Amortization of previously capitalized interest $ 11.6 $ 11.7 $ 10.2 $ 10.1 $ 9.6
Minority interest in net income of
consolidated subsidiaries with fixed charges 45.9 30.1 16.9 19.0 14.2
Proportionate share of fixed charges of investees
accounted for by the equity method 6.2 6.3 5.0 4.7 6.9
Proportionate share of net loss of investees
accounted for by the equity method 2.7 0.5 0.2 0.3 2.2
------ -------- -------- -------- ------
Total additions $ 66.4 $ 48.6 $ 32.3 $ 34.1 $ 32.9
Deduct:
Capitalized interest $ 5.4 $ 5.1 $5.7 $5.0 $ 4.0
Minority interest in net loss of consolidated subsidiaries 4.4 3.3 0.3 0.3 1.8
Undistributed proportionate share of net income
of investees accounted for by the equity method -- 0.2 7.2 4.0 0.9
------ -------- -------- -------- ------
Total deductions $ 9.8 $ 8.6 $ 13.2 $ 9.3 $ 6.7
TOTAL EARNINGS $178.9 $ 965.8 $ 884.8 $ 809.7 $656.1
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FIXED CHARGES
Interest expense $128.6 $ 135.0 $ 129.4 $ 162.4 $232.9
Capitalized interest 5.4 5.1 5.7 5.0 4.0
Amortization of debt discount, premium or expense .3 0.4 0.7 0.4 1.0
Interest portion of rental expense 69.5 77.0 83.0 83.7 87.6
Proportionate share of fixed charges of investees
accounted for by the equity method 6.2 6.4 5.0 4.7 6.9
------ -------- -------- -------- ------
TOTAL FIXED CHARGES $210.0 $ 223.9 $ 223.8 $ 256.2 $332.4
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TOTAL EARNINGS BEFORE FIXED CHARGES $388.9 $1,189.7 $1,108.6 $1,065.9 $988.5
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RATIO OF EARNINGS TO FIXED CHARGES 1.85 5.31 4.95 4.16 2.97
SUPPLEMENTAL INFORMATION - Income before income taxes, extraordinary items
and cumulative effect of accounting changes in 1996 was reduced by a charge of
$755.6 million related to the writedown of the All American Pipeline System and
related assets. Excluding this charge, the ratio of earnings to fixed charges
for 1996 would have been 5.45.
X-12-1