EX-12 3 gt-q22018xratioofearningse.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) | Six Months Ended June 30, |  | Year Ended December 31,
EARNINGS | 2018 |  | 2017 |  | 2016 |  | 2015 |  | 2014 |  | 2013
Pre-tax income before adjustment for minority interests in consolidated subsidiaries or income or loss from equity investees | $ | 295 |  |  | $ | 884 |  |  | $ | 1,206 |  |  | $ | 592 |  |  | $ | 658 |  |  | $ | 782 |
Add: |  |  |  |  |  |  |  |  |  |  |
Amortization of previously capitalized interest | 7 |  |  | 13 |  |  | 13 |  |  | 12 |  |  | 11 |  |  | 10 |
Distributed income of equity investees | — |  |  | 5 |  |  | 25 |  |  | 24 |  |  | 24 |  |  | 21 |
Total additions | 7 |  |  | 18 |  |  | 38 |  |  | 36 |  |  | 35 |  |  | 31 |
Deduct: |  |  |  |  |  |  |  |  |  |  |
Capitalized interest | 8 |  |  | 23 |  |  | 26 |  |  | 19 |  |  | 24 |  |  | 39 |
Minority interest in pre-tax income of consolidated subsidiaries with no fixed charges | — |  |  | 4 |  |  | 8 |  |  | 8 |  |  | 14 |  |  | 26 |
Total deductions | 8 |  |  | 27 |  |  | 34 |  |  | 27 |  |  | 38 |  |  | 65 |
TOTAL EARNINGS | $ | 294 |  |  | $ | 875 |  |  | $ | 1,210 |  |  | $ | 601 |  |  | $ | 655 |  |  | $ | 748 |
FIXED CHARGES |  |  |  |  |  |  |  |  |  |  |
Interest expense | $ | 157 |  |  | $ | 347 |  |  | $ | 391 |  |  | $ | 438 |  |  | $ | 439 |  |  | $ | 407 |
Debt extinguishment costs included in interest expense | — |  |  | (6 | ) |  | (12 | ) |  | (17 | ) |  | — |  |  | — |
Capitalized interest | 8 |  |  | 23 |  |  | 26 |  |  | 19 |  |  | 24 |  |  | 39 |
Interest portion of rental expense (1) | 52 |  |  | 104 |  |  | 100 |  |  | 97 |  |  | 114 |  |  | 119 |
TOTAL FIXED CHARGES | $ | 217 |  |  | $ | 468 |  |  | $ | 505 |  |  | $ | 537 |  |  | $ | 577 |  |  | $ | 565 |
TOTAL EARNINGS BEFORE FIXED CHARGES | $ | 511 |  |  | $ | 1,343 |  |  | $ | 1,715 |  |  | $ | 1,138 |  |  | $ | 1,232 |  |  | $ | 1,313 |
RATIO OF EARNINGS TO FIXED CHARGES | 2.35 |  |  | 2.87 |  |  | 3.40 |  |  | 2.12 |  |  | 2.14 |  |  | 2.32 |

(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.