EX-12 3 e110304ex12.txt Exhibit 12 Ford Motor Company and Subsidiaries CALCULATION OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS ------------------------------------------- (in millions)
Nine For the Years Ended December 31 Months --------------------------------------------------------- 2004 2003 2002 2001 2000 1999 ----------- ---------- ---------- ---------- --------- -------- Earnings -------- Income before income taxes and cumulative effects of changes in accounting principles a/ $ 5,171 $ 1,418 $ 1,050 $(7,324) $ 8,400 $ 9,860 Less: Equity in net (income)/loss of affiliates included in income before income taxes (193) (155) 137 550 50 3 ------- ------- ------- ------- ------- ------- Adjusted income 4,978 1,263 1,187 (6,774) 8,450 9,863 Adjusted fixed charges b/ 5,896 8,381 9,618 11,187 11,153 9,403 ------- ------- ------- ------- ------- ------- Earnings $10,874 $ 9,644 $10,805 $ 4,413 $19,603 $19,266 ======= ======= ======= ======= ======= ======= Combined Fixed Charges and Preferred Stock Dividends ---------------------------------------------------- Interest expense c/ $ 5,478 $ 7,706 $ 8,847 $10,830 $10,781 $ 9,092 Interest portion of rental expense d/ 381 438 370 323 296 250 Preferred Stock dividend requirements of majority owned subsidiaries and trusts - 190 353 55 55 55 ------- ------- ------- ------- ------- ------- Fixed charges 5,859 8,334 9,570 11,208 11,132 9,397 Ford Preferred Stock dividend requirements e/ - - 22 22 22 22 ------- ------- ------- ------- ------- ------- Total combined fixed charges and Preferred Stock dividends $ 5,859 $ 8,334 $ 9,592 $11,230 $11,154 $ 9,419 ======= ======= ======= ======= ======= ======= Ratios ------ Ratio of earnings to fixed charges 1.9 1.2 1.1 f/ 1.8 2.1 Ratio of earnings to combined fixed charges and Preferred Stock dividends 1.9 1.2 1.1 f/ 1.8 2.0
Discontinued operations are excluded from all amounts. - - - - - a/ Income before taxes includes equity income from unconsolidated subsidiaries. b/ 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. c/ Includes interest, whether expensed or capitalized, and amortization of debt expense and discount or premium relating to any indebtedness. d/ One-third of all rental expense is deemed to be interest. e/ Preferred Stock dividend requirements of Ford Motor Company were increased to an amount representing the pre-tax earnings that would be required to cover such dividend requirements based on Ford Motor Company's effective income tax rates. 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.