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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2001 2000 1999 1998 1997
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Earnings
Income before income taxes $(7,584) $ 8,234 $ 9,854 $24,280 $10,124
Equity in net (income)/loss of affiliates
plus dividends from affiliates 857 99 (12) 87 141
Adjusted fixed charges a/ 11,257 11,300 9,381 9,161 10,896
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Earnings $ 4,530 $19,633 $19,223 $33,528 $21,161
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Combined Fixed Charges and
Preferred Stock Dividends
Interest expense b/ $10,894 $10,937 $ 9,065 $ 8,881 $10,559
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Interest portion of rental expense c/ 317 302 258 228 297
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Preferred stock dividend requirements of
majority owned subsidiaries and trusts 55 55 55 55 55
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Fixed charges 11,266 11,294 9,378 9,164 10,911
Ford preferred stock dividend requirements d/ 22 22 22 121 85
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Total combined fixed charges
and preferred stock dividends $11,288 $11,316 $ 9,400 $ 9,285 $10,996
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Ratios
Ratio of earnings to fixed charges f/ 1.7 2.0 3.7e/ 1.9
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Ratio of earnings to combined fixed
charges and preferred stock dividends f/ 1.7 2.0 3.6e/ 1.9
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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.
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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.