Exhibit 12
FORD MOTOR COMPANY AND SUBSIDIARIES
CALCULATION OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES
AND PREFERRED STOCK DIVIDENDS (a)
(in millions)
First Quarter 2008 | 2007 | 2006 | 2005 | 2004 | 2003 | |||||||||||||||||||
Earnings | ||||||||||||||||||||||||
Income before income taxes and cumulative effects of changes in accounting principles (b) | $ | 320 | $ | (3,749 | ) | $ | (15,089 | ) | $ | 1,031 | $ | 4,061 | $ | 858 | ||||||||||
Less: Equity in net (income)/loss of affiliates include in income before income taxes | (142 | ) | (412 | ) | (426 | ) | (303 | ) | (240 | ) | (155 | ) | ||||||||||||
Adjusted income | 178 | (4,161 | ) | (15,515 | ) | 728 | 3,821 | 703 | ||||||||||||||||
Adjusted fixed charges (c) | 2,657 | 11,522 | 9,300 | 9,070 | 9,117 | 9,976 | ||||||||||||||||||
Earnings | $ | 2,835 | $ | 7,361 | $ | (6,215 | ) | $ | 9,798 | $ | 12,938 | $ | 10,679 | |||||||||||
Combined Fixed Charges and Preferred Stock Dividends | ||||||||||||||||||||||||
Interest expense (d) | $ | 2,557 | $ | 10,963 | $ | 8,820 | $ | 8,464 | $ | 8,510 | $ | 9,217 | ||||||||||||
Interest portion of rental expense (e) | 81 | 347 | 329 | 513 | 564 | 523 | ||||||||||||||||||
Preferred Stock dividend requirements of majority owned subsidiaries and trusts | — | — | — | — | — | 190 | ||||||||||||||||||
Total combined fixed charges and Preferred Stock dividends | $ | 2,638 | $ | 11,310 | $ | 9,149 | $ | 8,977 | $ | 9,074 | $ | 9,930 | ||||||||||||
Ratios | ||||||||||||||||||||||||
Ratio of earnings to fixed charges | 1.1 | (f) | (f) | 1.1 | 1.4 | 1.1 | ||||||||||||||||||
Ratio of earnings to combined fixed charges and Preferred Stock dividends | 1.1 | (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): 2008 YTD — $15; 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 $15.4 billion, respectively. |