Exhibit 12
FORD MOTOR COMPANY AND SUBSIDIARIES
CALCULATION OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES
AND PREFERRED STOCK DIVIDENDS (a)
(in millions)
For the Years Ended December 31 | ||||||||||||||||||||
2007 | 2006 | 2005 | 2004 | 2003 | ||||||||||||||||
Earnings | ||||||||||||||||||||
Income before income taxes and cumulative effects of changes in accounting principles (b) | $ | (3,746 | ) | $ | (15,074 | ) | $ | 1,054 | $ | 4,087 | $ | 893 | ||||||||
Less: Equity in net (income)/loss of affiliates included in income before income taxes | (412 | ) | (426 | ) | (303 | ) | (240 | ) | (155 | ) | ||||||||||
Adjusted income | (4,158 | ) | (15,500 | ) | 751 | 3,847 | 738 | |||||||||||||
Adjusted fixed charges (c) | 11,538 | 9,321 | 9,091 | 9,136 | 9,996 | |||||||||||||||
Earnings | $ | 7,380 | $ | (6,179 | ) | $ | 9,842 | $ | 12,983 | $ | 10,734 | |||||||||
Combined Fixed Charges and Preferred Stock Dividends | ||||||||||||||||||||
Interest expense (d) | $ | 10,978 | $ | 8,841 | $ | 8,484 | $ | 8,528 | $ | 9,235 | ||||||||||
Interest portion of rental expense (e) | 348 | 329 | 514 | 565 | 524 | |||||||||||||||
Preferred Stock dividend requirements of majority owned subsidiaries and trusts | — | — | — | — | 190 | |||||||||||||||
Total combined fixed charges and Preferred Stock dividends | $ | 11,326 | $ | 9,170 | $ | 8,998 | $ | 9,093 | $ | 9,949 | ||||||||||
Ratios | ||||||||||||||||||||
Ratio of earnings to fixed charges | (f) | (f) | 1.1 | 1.4 | 1.1 | |||||||||||||||
Ratio of earnings to combined fixed charges and Preferred Stock dividends | (f) | (f) | 1.1 | 1.4 | 1.1 |
__________
(a) | Discontinued operations are excluded from all amounts. |
(b) | Income before taxes includes equity income from unconsolidated subsidiaries. |
(c) | Combined 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 — $51; 2006 — $58; 2005 — $67; 2004 — $57; 2003 — $63) |
(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) | Earnings for 2007 and 2006 were inadequate to cover fixed charges by $3.9 billion and $15.3 billion, respectively. |