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Capital Stock and Amounts Per Share
3 Months Ended
Sep. 30, 2012
Stockholders' Equity Note [Abstract]  
CAPITAL STOCK AND AMOUNTS PER SHARE
AMOUNTS PER SHARE ATTRIBUTABLE TO FORD MOTOR COMPANY COMMON AND CLASS B STOCK

We present both basic and diluted earnings per share ("EPS") amounts in our financial reporting.  EPS is computed independently each quarter for income from continuing operations, income/(loss) from discontinued operations, and net income; as a result, the sum of per-share amounts from continuing operations and discontinued operations may not equal the total per-share amount for net earnings.  Basic EPS excludes dilution and is computed by dividing income available to Common and Class B Stock holders by the weighted-average number of Common and Class B Stock outstanding for the period.  Diluted EPS, on the other hand, reflects the maximum potential dilution that could occur if all of our equity-linked securities and other share-based compensation, including stock options, warrants, and rights under our convertible notes, were exercised.  Potential dilutive shares are excluded from the calculation if they have an anti-dilutive effect in the period.

Warrants

All warrants outstanding expire January 1, 2013. The net dilutive effect for warrants, included below, is approximately 19 million and 60 million dilutive shares for the third quarter and first nine months of 2012, respectively, representing the net share settlement methodology for the 362 million warrants outstanding as of September 30, 2012.

NOTE 18.  AMOUNTS PER SHARE ATTRIBUTABLE TO FORD MOTOR COMPANY COMMON AND CLASS B STOCK (Continued)

Effect of Dividends on Convertible Notes and Warrants

As a result of dividends totaling $0.15 per share ($0.05 per share in each of the first three quarters of 2012) paid on our Common Stock, the conversion rates for our outstanding convertible notes have been adjusted and the exercise price and number of underlying shares with respect to our outstanding warrants have been adjusted pursuant to their terms as follows:
Security
 
Prior to Adjustment
 
After Adjustment
 
Effective Date
4.25% Senior Convertible Notes Due November 15, 2016
 
107.5269 shares of Ford Common Stock for each $1,000 principal amount
 
109.3202 shares of Ford Common Stock for each $1,000 principal amount
 
August 1, 2012
4.25% Senior Convertible Notes Due 2036
 
108.6957 shares of Ford Common Stock for each $1,000 principal amount
 
110.5085 shares of Ford Common Stock for each $1,000 principal amount
 
August 6, 2012
Warrants to purchase Ford Common Stock, expiring January 1, 2013
 
  $9.20 to purchase one share
 
$9.05 to purchase 1.0167 shares
 
August 6, 2012


Dividend Declaration

On October 11, 2012, our Board of Directors declared a fourth quarter 2012 dividend on our Common and Class B Stock of $0.05 per share payable on December 3, 2012 to stockholders of record on November 2, 2012.

Amounts Per Share Attributable to Ford Motor Company Common and Class B Stock

Basic and diluted income/(loss) per share were calculated using the following (in millions):
 
Third Quarter
 
First Nine Months
 
2012
 
2011
 
2012
 
2011
Basic and Diluted Income/(Loss) Attributable to Ford Motor Company
 
 
 
 
 
 
 
Basic income/(loss) from continuing operations
$
1,631

 
$
1,649

 
$
4,067

 
$
6,598

Effect of dilutive 2016 Convertible Notes (a)
12

 
15

 
33

 
45

Effect of dilutive 2036 Convertible Notes (a)

 

 
1

 
1

Effect of dilutive Trust Preferred Securities (a) (b)

 

 

 
38

Diluted income/(loss) from continuing operations
$
1,643

 
$
1,664

 
$
4,101

 
$
6,682

 
 
 
 
 
 
 
 
Basic and Diluted Shares
 

 
 

 
 
 
 
Basic shares (average shares outstanding)
3,814

 
3,800

 
3,811

 
3,790

Net dilutive options and warrants
59

 
133

 
108

 
202

Dilutive 2016 Convertible Notes
96

 
95

 
95

 
95

Dilutive 2036 Convertible Notes
3

 
3

 
3

 
3

Dilutive Trust Preferred Securities (b)

 

 

 
44

Diluted shares
3,972

 
4,031

 
4,017

 
4,134

__________
(a)
As applicable, includes interest expense, amortization of discount, amortization of fees, and other changes in income or loss that would result from the assumed conversion.
(b)
The Trust Preferred Securities, which were convertible into Ford Common Stock, were fully redeemed on March 15, 2011.