Exhibit 12
FORD MOTOR COMPANY AND SUBSIDIARIES
CALCULATION OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES (a)
(in millions)
First Nine Months 2010 | 2009 | 2008 | 2007 | 2006 | 2005 | |||||||||||||||||||
Earnings | ||||||||||||||||||||||||
Income/(Loss) before income taxes and cumulative effects of changes in accounting principles (b) | $ | 6,869 | $ | 2,599 | $ | (14,895 | ) | $ | (4,286 | ) | $ | (15,490 | ) | $ | 633 | |||||||||
Less: Equity in net (income)/loss of affiliated companies included in income/(loss) before income taxes | (384 | ) | (336 | ) | (382 | ) | (639 | ) | (599 | ) | (482 | ) | ||||||||||||
Adjusted income/(loss) | 6,485 | 2,263 | (15,277 | ) | (4,925 | ) | (16,089 | ) | 151 | |||||||||||||||
Adjusted fixed charges (c) | 5,249 | 7,395 | 10,518 | 11,753 | 9,439 | 9,240 | ||||||||||||||||||
Earnings/(Losses) | $ | 11,734 | $ | 9,658 | $ | (4,759 | ) | $ | 6,828 | $ | (6,650 | ) | $ | 9,391 | ||||||||||
Combined Fixed Charges | ||||||||||||||||||||||||
Interest expense (d) | $ | 4,820 | $ | 6,818 | $ | 9,787 | $ | 11,036 | $ | 8,804 | $ | 8,452 | ||||||||||||
Interest portion of rental expense (e) | 159 | 258 | 322 | 344 | 327 | 511 | ||||||||||||||||||
Total combined fixed charges | $ | 4,979 | $ | 7,076 | $ | 10,109 | $ | 11,380 | $ | 9,131 | $ | 8,963 | ||||||||||||
Ratios | ||||||||||||||||||||||||
Ratio of earnings to combined fixed charges | 2.4 | 1.4 | (f) | (f) | (f) | 1.0 |
__________
(a) | Discontinued operations are excluded from all amounts. There were no preferred stock dividends in the periods displayed. |
(b) | Income/(Loss) before income taxes includes equity income/(loss) from unconsolidated subsidiaries. |
(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): First Nine Months 2010 - $14; 2009 - $28; 2008 - $50; 2007 - $47; 2006 - $53; 2005 - $65) |
(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 — $14.9; 2007 — $4.6; 2006 — $15.8. |