EX-12 4 gt-q32017xratioofearningse.htm EX-12.1
EXHIBIT 12.1
THE GOODYEAR TIRE & RUBBER COMPANY AND SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

(Dollars in millions) | Nine Months Ended September 30, |  | Year Ended December 31,
EARNINGS | 2017 |  | 2016 |  | 2015 |  | 2014 |  | 2013 |  | 2012
Pre-tax income before adjustment for minority interests in consolidated subsidiaries or income or loss from equity investees | $ | 590 |  |  | $ | 1,206 |  |  | $ | 592 |  |  | $ | 658 |  |  | $ | 782 |  |  | $ | 406 |
Add: |  |  |  |  |  |  |  |  |  |  |
Amortization of previously capitalized interest | 10 |  |  | 13 |  |  | 12 |  |  | 11 |  |  | 10 |  |  | 8 |
Distributed income of equity investees | — |  |  | 25 |  |  | 24 |  |  | 24 |  |  | 21 |  |  | 11 |
Total additions | 10 |  |  | 38 |  |  | 36 |  |  | 35 |  |  | 31 |  |  | 19 |
Deduct: |  |  |  |  |  |  |  |  |  |  |
Capitalized interest | 16 |  |  | 26 |  |  | 19 |  |  | 24 |  |  | 39 |  |  | 22 |
Minority interest in pre-tax income of consolidated subsidiaries with no fixed charges | 3 |  |  | 8 |  |  | 8 |  |  | 14 |  |  | 26 |  |  | 20 |
Total deductions | 19 |  |  | 34 |  |  | 27 |  |  | 38 |  |  | 65 |  |  | 42 |
TOTAL EARNINGS | $ | 581 |  |  | $ | 1,210 |  |  | $ | 601 |  |  | $ | 655 |  |  | $ | 748 |  |  | $ | 383 |
FIXED CHARGES |  |  |  |  |  |  |  |  |  |  |
Interest expense | $ | 265 |  |  | $ | 391 |  |  | $ | 438 |  |  | $ | 439 |  |  | $ | 407 |  |  | $ | 385 |
Debt extinguishment costs included in interest expense | (6 | ) |  | (12 | ) |  | (17 | ) |  | — |  |  | — |  |  | (15 | )
Capitalized interest | 16 |  |  | 26 |  |  | 19 |  |  | 24 |  |  | 39 |  |  | 22 |
Interest portion of rental expense (1) | 73 |  |  | 100 |  |  | 97 |  |  | 114 |  |  | 119 |  |  | 121 |
TOTAL FIXED CHARGES | $ | 348 |  |  | $ | 505 |  |  | $ | 537 |  |  | $ | 577 |  |  | $ | 565 |  |  | $ | 513 |
TOTAL EARNINGS BEFORE FIXED CHARGES | $ | 929 |  |  | $ | 1,715 |  |  | $ | 1,138 |  |  | $ | 1,232 |  |  | $ | 1,313 |  |  | $ | 896 |
RATIO OF EARNINGS TO FIXED CHARGES | 2.67 |  |  | 3.40 |  |  | 2.12 |  |  | 2.14 |  |  | 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.