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 | |||||||||||||||||||
First Half 2006 | 2005 | 2004 | 2003 | 2002 | 2001 | ||||||||||||||
Earnings | |||||||||||||||||||
Income before income taxes and cumulative effects of changes in accounting principles (a) | $ | (2,528 | ) | $ | 1,996 | $ | 4,853 | $ | 1,339 | $ | 1,064 | $ | (7,325 | ) | |||||
Less: Equity in net (income)/loss of affiliates included in income before income taxes | (290 | ) | (303 | ) | (240 | ) | (155 | ) | 137 | 550 | |||||||||
Adjusted income | (2,818 | ) | 1,693 | 4,613 | 1,184 | 1,201 | (6,775 | ) | |||||||||||
Adjusted fixed charges (b) | 4,455 | 8,317 | 7,736 | 8,466 | 9,696 | 11,259 | |||||||||||||
Earnings | $ | 1,637 | $ | 10,010 | $ | 12,349 | $ | 9,650 | $ | 10,897 | $ | 4,484 | |||||||
Combined Fixed Charges and Preferred Stock Dividends | |||||||||||||||||||
Interest expense (c) | $ | 4,231 | $ | 7,710 | $ | 7,128 | $ | 7,706 | $ | 8,847 | $ | 10,830 | |||||||
Interest portion of rental expense (d) | 168 | 514 | 565 | 524 | 448 | 394 | |||||||||||||
Preferred Stock dividend requirements of majority owned subsidiaries and trusts | — | — | — | 190 | 353 | 55 | |||||||||||||
Fixed charges | 4,399 | 8,224 | 7,693 | 8,420 | 9,648 | 11,279 | |||||||||||||
Ford Preferred Stock dividend requirements (e) | — | — | — | — | 22 | 22 | |||||||||||||
Total combined fixed charges and Preferred Stock dividends | $ | 4,399 | $ | 8,224 | $ | 7,693 | $ | 8,420 | $ | 9,670 | $ | 11,301 | |||||||
Ratios | |||||||||||||||||||
Ratio of earnings to fixed charges | (f | ) | 1.2 | 1.6 | 1.1 | 1.1 | (f | ) | |||||||||||
Ratio of earnings to combined fixed charges and Preferred Stock dividends | (f | ) | 1.2 | 1.6 | 1.1 | 1.1 | (f | ) | |||||||||||
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: June 2006 YTD - $34 mil; 2005 - $67 mil; 2004 - $57 mil; 2003 - $63 mil; 2002 - $46 mil; 2001 - $44 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 increased to an amount representing the pre-tax earnings which would be required to cover such dividend requirements based on our effective income tax rates. |
(f) | Earnings for the year ended December 31, 2001 were inadequate to cover fixed charges by $6.8 billion. |
Earnings for the first half 2006 were inadequate to cover fixed charges by $2.8 billion. |