Exhibit 12-B
FORD MOTOR COMPANY AND SUBSIDIARIESCALCULATION OF RATIO OF EARNINGS TO COMBINED FIXED CHARGESAND PREFERRED STOCK DIVIDENDS(in millions)
For the Years Ended December 31 1999 1998 1997 1996 1995 Earnings Income before income taxes $ 11,026 $ 25,396 $ 10,939 $ 6,793 $ 6,705 Equity in net (income)/loss of affiliates plus dividends from affiliates (35 ) 78 121 36 179 Adjusted fixed charges (a) 9,459 9,215 10,911 10,801 10,556 Earnings $ 20,450 $ 34,689 $ 21,971 $ 17,630 $ 17,440 Combined Fixed Charges and Preferred Stock Dividends Interest expense (b) $ 9,114 $ 8,919 $ 10,570 $ 10,464 $ 10,121 Interest portion of rental expense (c) 282 245 309 300 396 Preferred stock dividend requirements of majority owned subsidiaries and trusts (d) 55 55 55 55 199 Fixed charges 9,451 9,219 10,934 10,819 10,716 Ford preferred stock dividend requirements (e) 23 122 82 95 459 Total combined fixed charges and preferred stock dividends $ 9,474 $ 9,341 $ 11,016 $ 10,914 $ 11,175 Ratios Ratio of earnings to fixed charges 2.2 3.8 (f) 2.0 1.6 1.6 Ratio of earnings to combined fixed charges and preferred stock dividends 2.2 3.7 (f) 2.0 1.6 1.6
(a) | Fixed charges, as shown above, adjusted to exclude the amount of interest capitalized during the period and preferred stock dividend requirements of majority owned subsidiaries and trusts. |
(b) | Includes interest, whether expensed or capitalized, and amortization of debt expense and discount or premium relating to any indebtedness. |
(c) | One-third of all rental expense is deemed to be interest. |
(d) | Preferred stock dividend requirements of Ford Holdings, Inc. (1995) increased to an amount representing the pre-tax earnings which would be required to cover such dividend requirements based on Fords effective income tax rates. Beginning in Fourth Quarter 1995, includes requirements related to company-obligated mandatorily redeemable preferred securities of a subsidiary trust. |
(e) | Preferred stock dividend requirements of Ford Motor Company increased to an amount representing the pre-tax earnings which would be required to cover such dividend requirements based on Ford Motor Companys effective income tax rates. |
(f) | Earnings used in calculation of this ratio include the $15,955 million gain on the spin-off of The Associates. Excluding this gain, the ratio is 2.0. |