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)
First For the Years Ended December 31
Half -------------------------------------------------------
2002 2001 2000 1999 1998 1997
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Earnings
Income before income taxes $ 901 $(7,584) $ 8,234 $ 9,854 $24,280 $10,124
Equity in net (income)/loss of affiliates
plus dividends from affiliates 90 857 99 (12) 87 141
Adjusted fixed charges a/ 4,957 11,277 11,316 9,388 9,161 10,896
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Earnings $ 5,948 $ 4,550 $19,649 $19,230 $33,528 $21,161
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Combined Fixed Charges and
Preferred Stock Dividends
Interest expense b/ $ 4,599 $10,894 $10,937 $ 9,065 $ 8,881 $10,559
Interest portion of rental expense c/ 188 337 318 265 228 297
Preferred stock dividend requirements of
majority owned subsidiaries and trusts 163 55 55 55 55 55
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Fixed charges 4,950 11,286 11,310 9,385 9,164 10,911
Ford preferred stock dividend requirements d/ 10 22 22 22 121 85
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Total combined fixed charges
and preferred stock dividends $ 4,960 $11,308 $11,332 $ 9,407 $ 9,285 $10,996
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Ratios
Ratio of earnings to fixed charges 1.2 f/ 1.7 2.0 3.7e/ 1.9
Ratio of earnings to combined fixed
charges and preferred stock dividends 1.2 f/ 1.7 2.0 3.6e/ 1.9
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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 1.9.
f/ Earnings for the year ended December 31, 2001 were inadequate to cover fixed
charges. The coverage deficiency was $6.7 billion for ratio of earnings to
fixed charges and $6.8 billion for ratio of earnings to combined fixed
charges and preferred stock dividends.
Prior periods have been changed.