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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2000 1999 1998 1997 1996
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Earnings
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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
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Earnings $19,633 $19,223 $33,528 $21,161 $17,049
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Combined Fixed Charges and
Preferred Stock Dividends
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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
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Fixed charges 11,294 9,378 9,164 10,911 10,797
Ford preferred stock dividend requirements d/ 22 22 121 85 100
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Total combined fixed charges
and preferred stock dividends $11,316 $ 9,400 $ 9,285 $10,996 $10,897
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Ratios
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Ratio of earnings to fixed charges 1.7 2.0 3.7e/ 1.9 1.6
Ratio of earnings to combined fixed
charges and preferred stock dividends 1.7 2.0 3.6e/ 1.9 1.6
Visteon is excluded from all amounts.
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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 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.