EXHIBIT 12
Ford Motor Company and Subsidiaries
CALCULATION OF RATIO OF EARNINGS TO COMBINED
FIXED CHARGES AND PREFERRED STOCK DIVIDENDS
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(in millions)
For the Years Ended December 31
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1999 1998 1997 1996 1995
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Earnings
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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
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Earnings $20,450 $34,689 $21,971 $17,630 $17,440
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Combined Fixed Charges and
Preferred Stock Dividends
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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
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Fixed charges 9,451 9,219 10,934 10,819 10,716
Ford preferred stock dividend requirements e/ 23 122 82 95 459
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Total combined fixed charges
and preferred stock dividends $ 9,474 $ 9,341 $11,016 $10,914 $11,175
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Ratios
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Ratio of earnings to fixed charges 2.2 3.8f/ 2.0 1.6 1.6
Ratio of earnings to combined fixed
charges and preferred stock dividends 2.2 3.7f/ 2.0 1.6 1.6
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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 Ford's 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 Company's 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.