Exhibit 12
FORD MOTOR COMPANY AND SUBSIDIARIES
CALCULATION OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES
AND PREFERRED STOCK DIVIDENDS
(in millions)
For the Years Ended December 31 | |||||||||||||||||||
Nine Months 2005 | 2004 | 2003 | 2002 | 2001 | 2000 | ||||||||||||||
Earnings | |||||||||||||||||||
Income before income taxes and cumulative effects of changes in accounting principles (a) | $ | 1,898 | $ | 4,853 | $ | 1,339 | $ | 1,064 | $ | (7,325 | ) | $ | 8,387 | ||||||
Less: Equity in net (income)/loss of affiliates include in income before income taxes | (269 | ) | (240 | ) | (155 | ) | 137 | 550 | 50 | ||||||||||
Adjusted income | 1,629 | 4,613 | 1,184 | 1,201 | (6,775 | ) | 8,437 | ||||||||||||
Adjusted fixed charges (b) | 6,160 | 7,736 | 8,466 | 9,696 | 11,259 | 11,226 | |||||||||||||
Earnings | $ | 7,789 | $ | 12,349 | $ | 9,650 | $ | 10,897 | $ | 4,484 | $ | 19,663 | |||||||
Combined Fixed Charges and Preferred Stock Dividends | |||||||||||||||||||
Interest expense (c) | $ | 5,705 | $ | 7,128 | $ | 7,706 | $ | 8,847 | $ | 10,830 | $ | 10,781 | |||||||
Interest portion of rental expense (d) | 376 | 565 | 524 | 448 | 394 | 369 | |||||||||||||
Preferred Stock dividend requirements of majority owned subsidiaries and trusts | — | — | 190 | 353 | 55 | 55 | |||||||||||||
Fixed charges | 6,081 | 7,693 | 8,420 | 9,648 | �� | 11,279 | 11,205 | ||||||||||||
Ford Preferred Stock dividend requirements (e) | — | — | — | 22 | 22 | 22 | |||||||||||||
Total combined fixed charges and Preferred Stock dividends | $ | 6,081 | $ | 7,693 | $ | 8,420 | $ | 9,670 | $ | 11,301 | $ | 11,227 | |||||||
Ratios | |||||||||||||||||||
Ratio of earnings to fixed charges | 1.3 | 1.6 | 1.1 | 1.1 | (f | ) | 1.8 | ||||||||||||
Ratio of earnings to combined fixed charges and Preferred Stock dividends | 1.3 | 1.6 | 1.1 | 1.1 | (f | ) | 1.8 | ||||||||||||
Discontinued operations are excluded from all amounts. |
__________
(a) | Income before taxes includes equity income from unconsolidated subsidiaries. |
(b) | Fixed charges, as shown above, adjusted to exclude the amount of interest capitalized during the period and Preferred Stock dividend requirements of majority owned subsidiaries and trusts. (Capitalized interest: 2005 YTD - $46 mil; 2004 - $57 mil; 2003 - $63 mil; 2002 - $46 mil; 2001 - $44 mil; 2000 - $32 mil) |
(c) | Includes interest, whether expensed or capitalized, and amortization of debt expense and discount or premium relating to any indebtedness. |
(d) | One-third of all rental expense is deemed to be interest. |
(e) | Preferred Stock dividend requirements of Ford Motor Company were increased to an amount representing the pre-tax earnings which would be required to cover such dividend requirements based on Ford Motor Company’s effective income tax rates. |
(f) | Earnings for the year ended December 31, 2001 were inadequate to cover fixed charges by $6.8 billion. |