EX-12 3 e080103ex12.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 ------------------------------------------------------- 2003 2002 2001 2000 1999 1998 --------- ------------------------------------------------------- Earnings -------- Income before income taxes and cumulative effect of changes in accounting principles $ 2,055 $ 953 $(7,422) $ 8,299 $ 9,857 $24,257 Equity in net (income)/loss of affiliates plus dividends from affiliates (75) 132 856 99 (13) 88 Adjusted fixed charges a/ 4,180 9,595 11,242 11,263 9,339 9,120 ------- ------- ------- ------- ------- ------- Earnings $ 6,160 $10,680 $ 4,676 $19,661 $19,183 $33,465 ======= ======= ======= ======= ======= ======= Combined Fixed Charges and Preferred Stock Dividends -------------------------- Interest expense b/ $ 3,823 $ 8,873 $10,863 $10,895 $ 9,020 $ 8,841 Interest portion of rental expense c/ 180 381 333 307 261 227 Preferred stock dividend requirements of majority owned subsidiaries and trusts 190 353 55 55 55 55 ------- ------- ------- ------- ------- ------- Fixed charges 4,193 9,607 11,251 11,257 9,336 9,123 Ford preferred stock dividend requirements d/ - 22 22 22 22 121 ------- ------- ------- ------- ------- ------- Total combined fixed charges and preferred stock dividends $ 4,193 $ 9,629 $11,273 $11,279 $ 9,358 $ 9,244 ======= ======= ======= ======= ======= ======= Ratios ------ Ratio of earnings to fixed charges 1.5 1.1 f/ 1.7 2.1 3.7e/ - Ratio of earnings to combined fixed charges and preferred stock dividends 1.5 1.1 f/ 1.7 2.0 3.6e/ - Discontinued operations are excluded from all amounts.
- - - - - 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.