EX-12 2 ex12-072401.txt Exhibit 12
Ford Motor Company and Subsidiaries CALCULATION OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS ---------------------------------------------------------------------------------------- (in millions) First For the Years Ended December 31 Half ------------------------------------------------------- 2001 2000 1999 1998 1997 1996 --------- --------- ------------ ---------- ----------- --------- Earnings -------- Income before income taxes $ 617 $ 8,234 $ 9,854 $24,280 $10,124 $ 6,189 Equity in net (income)/loss of affiliates plus dividends from affiliates 340 99 (12) 87 141 75 Adjusted fixed charges a/ 5,941 11,300 9,381 9,161 10,896 10,785 ------ ------- ------- ------- ------- ------- Earnings $6,898 $19,633 $19,223 $33,528 $21,161 $17,049 ====== ======= ======= ======= ======= ======= Combined Fixed Charges and Preferred Stock Dividends -------------------------- Interest expense b/ $5,756 $10,937 $ 9,065 $ 8,881 $10,559 $10,450 Interest portion of rental expense c/ 154 302 258 228 297 292 Preferred stock dividend requirements of majority owned subsidiaries and trusts 28 55 55 55 55 55 ------ ------- ------- ------- ------- ------- Fixed charges 5,938 11,294 9,378 9,164 10,911 10,797 Ford preferred stock dividend requirements d/ 10 22 22 121 85 100 ------ ------- ------- ------- ------- ------- Total combined fixed charges and preferred stock dividends 5,948 $11,316 $ 9,400 $ 9,285 $10,996 $10,897 ====== ======= ======= ======= ======= ======= Ratios ------ Ratio of earnings to fixed charges 1.2 1.7 2.0 3.7e/ 1.9 1.6 Ratio of earnings to combined fixed charges and preferred stock dividends 1.2 1.7 2.0 3.6e/ 1.9 1.6
- - - - - 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.