Exhibit 12
FORD MOTOR COMPANY AND SUBSIDIARIES
CALCULATION OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES (a)
(in millions)
2009 | 2008 | 2007 | 2006 | 2005 | ||||||||||||||||
Earnings | ||||||||||||||||||||
Income/(Loss) before income taxes and cumulative effects of changes in accounting principles | $ | 3,026 | $ | (14,498 | ) | $ | (3,857 | ) | $ | (15,079 | ) | $ | 1,054 | |||||||
Less: Equity in net (income)/loss of affiliated companies included in income/(loss) before income taxes (b) | (151 | ) | (177 | ) | (412 | ) | (426 | ) | (303 | ) | ||||||||||
Adjusted income/(loss) | 2,875 | (14,675 | ) | (4,269 | ) | (15,505 | ) | 751 | ||||||||||||
Adjusted fixed charges (c) | 7,291 | 10,403 | 11,649 | 9,325 | 9,091 | |||||||||||||||
Earnings/(Losses) | $ | 10,166 | $ | (4,272 | ) | $ | 7,380 | $ | (6,180 | ) | $ | 9,842 | ||||||||
Combined Fixed Charges | ||||||||||||||||||||
Interest expense (d) | $ | 6,858 | $ | 9,858 | $ | 11,089 | $ | 8,845 | $ | 8,484 | ||||||||||
Interest portion of rental expense (e) | 261 | 325 | 348 | 329 | 514 | |||||||||||||||
Total combined fixed charges | $ | 7,119 | $ | 10,183 | $ | 11,437 | $ | 9,174 | $ | 8,998 | ||||||||||
Ratios | ||||||||||||||||||||
Ratio of earnings to combined fixed charges | 1.4 | (f) | (f) | (f) | 1.1 |
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(a) | Discontinued operations are excluded from all amounts. There were no preferred stock dividends in the periods displayed. |
(b) | Excludes any impairments or writedowns that are included in Equity in net income/(loss) of affiliated companies shown on the statement of operations. |
(c) | Combined fixed charges, as shown above, adjusted to exclude capitalized interest, and to include dividends from affiliated companies as well as amortization of capitalized interest. (Capitalized interest (in millions): 2009 - $29; 2008 - $53; 2007 - $51; 2006 - $58; 2005 - $67) |
(d) | Includes interest, as shown on our statement of operations, plus capitalized interest. |
(e) | One-third of all rental expense is deemed to be interest. |
(f) | Earnings/(Losses) were inadequate to cover fixed interest charges by (in billions): 2008 — $14.5; 2007 — $4.1; 2006 — $15.4. |