Exhibit 12-B
FORD MOTOR COMPANY AND SUBSIDIARIES
CALCULATION OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES
AND PREFERRED STOCK DIVIDENDS
(in millions)
For the Years Ended December 31 | |||||||||||||||||||||||
2000 | 1999 | 1998 | 1997 | 1996 | |||||||||||||||||||
Earnings | |||||||||||||||||||||||
Income before income taxes | $ | 8,234 | $ | 9,854 | $ | 24,280 | $ | 10,124 | $ | 6,189 | |||||||||||||
Equity in net (income)/ loss of affiliates plus dividends from affiliates | 99 | (12 | ) | 87 | 141 | 75 | |||||||||||||||||
Adjusted fixed charges(a) | 11,300 | 9,381 | 9,161 | 10,896 | 10,785 | ||||||||||||||||||
Earnings | $ | 19,633 | $ | 19,223 | $ | 33,528 | $ | 21,161 | $ | 17,049 | |||||||||||||
Combined Fixed Charges and Preferred Stock Dividends | |||||||||||||||||||||||
Interest expense(b) | $ | 10,937 | $ | 9,065 | $ | 8,881 | $ | 10,559 | $ | 10,450 | |||||||||||||
Interest portion of rental expense(c) | 302 | 258 | 228 | 297 | 292 | ||||||||||||||||||
Preferred stock dividend requirements of majority owned subsidiaries and trusts | 55 | 55 | 55 | 55 | 55 | ||||||||||||||||||
Fixed charges | 11,294 | 9,378 | 9,164 | 10,911 | 10,797 | ||||||||||||||||||
Ford preferred stock dividend requirements(d) | 22 | 22 | 121 | 85 | 100 | ||||||||||||||||||
Total combined fixed charges and preferred stock dividends | $ | 11,316 | $ | 9,400 | $ | 9,285 | $ | 10,996 | $ | 10,897 | |||||||||||||
Ratios | |||||||||||||||||||||||
Ratio of earnings to fixed charges | 1.7 | 2.0 | 3.7 | (e) | 1.9 | 1.6 | |||||||||||||||||
Ratio of earnings to combined fixed charges and preferred stock dividends | 1.7 | 2.0 | 3.6 | (e) | 1.9 | 1.6 |
Visteon is excluded from all amounts.
(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 Motor Company increased to an amount representing the pre-tax earnings which would be required to cover such dividend requirements based on Ford Motor Company’s effective income tax rates. |
(e) | 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. |