Exhibit 12
FORD MOTOR COMPANY AND SUBSIDIARIES
CALCULATION OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES
AND PREFERRED STOCK DIVIDENDS (a)
(in millions)
First Nine Months 2007 | 2006 | 2005 | 2004 | 2003 | 2002 | |||||||||||||||||||
Earnings | ||||||||||||||||||||||||
Income before income taxes and cumulative effects of changes in accounting principles (b) | $ | 726 | $ | (15,074 | ) | $ | 1,054 | $ | 4,087 | $ | 893 | $ | 4,021 | |||||||||||
Less: Equity in net (income)/loss of affiliates included in income before income taxes | (282 | ) | (426 | ) | (303 | ) | (240 | ) | (155 | ) | 137 | |||||||||||||
Adjusted income | 444 | (15,500 | ) | 751 | 3,847 | 738 | 4,158 | |||||||||||||||||
Adjusted fixed charges (c) | 8,687 | 9,321 | 9,091 | 9,136 | 9,996 | 10,977 | ||||||||||||||||||
Earnings | $ | 9,131 | $ | (6,179 | ) | $ | 9,842 | $ | 12,983 | $ | 10,734 | $ | 15,135 | |||||||||||
Combined Fixed Charges and Preferred Stock Dividends | ||||||||||||||||||||||||
Interest expense (d) | $ | 8,246 | $ | 8,841 | $ | 8,484 | $ | 8,528 | $ | 9,235 | $ | 10,128 | ||||||||||||
Interest portion of rental expense (e) | 266 | 329 | 514 | 565 | 524 | 448 | ||||||||||||||||||
Preferred Stock dividend requirements of majority-owned subsidiaries and trusts | — | — | — | — | 190 | 353 | ||||||||||||||||||
Fixed charges | 8,512 | 9,170 | 8,998 | 9,093 | 9,949 | 10,929 | ||||||||||||||||||
Ford Preferred Stock dividend requirements (f) | — | — | — | — | — | 22 | ||||||||||||||||||
Total combined fixed charges and Preferred Stock dividends | $ | 8,512 | $ | 9,170 | $ | 8,998 | $ | 9,093 | $ | 9,949 | $ | 10,951 | ||||||||||||
Ratios | ||||||||||||||||||||||||
Ratio of earnings to fixed charges | 1.1 | (g | ) | 1.1 | 1.4 | 1.1 | 1.4 | |||||||||||||||||
Ratio of earnings to combined fixed charges and Preferred Stock dividends | 1.1 | (g | ) | 1.1 | 1.4 | 1.1 | 1.4 |
__________
(a) | Discontinued operations are excluded from all amounts. |
(b) | Income before taxes includes equity income from unconsolidated subsidiaries. |
(c) | Fixed charges, as shown above, adjusted to exclude capitalized interest, and to include dividends from unconsolidated subsidiaries as well as amortization of capitalized interest. (Capitalized interest (in millions): 2007 YTD— $36; 2006— $58; 2005— $67; 2004 — $57; 2003 — $63; 2002 — $46). |
(d) | Includes interest, as defined on our income statement, plus capitalized interest. |
(e) | One-third of all rental expense is deemed to be interest. |
(f) | Preferred Stock dividend requirements were 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. |
(g) | Earnings for 2006 were inadequate to cover fixed charges by $15.3 billion. |
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