EX-12 22 ex12.htm EXHIBIT 12 CALCULATION OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS. Exhibit 12 Calculation of Ratio of Earnings to Combined Fixed Charges and Preferred Stock Dividends.

Exhibit 12


FORD MOTOR COMPANY AND SUBSIDIARIES

CALCULATION OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES
AND PREFERRED STOCK DIVIDENDS
(in millions)

 
  
For the Years Ended December 31
  
 
  
2005
  
2004
  
2003
  
2002
  
2001
  
Earnings
                                
Income before income taxes and cumulative effects of changes in accounting principles (a)
  
$
1,996
  
$
4,853
  
$
1,339
  
$
1,064
  
$
(7,325
)
Less: Equity in net (income)/loss of affiliates include in income before income taxes
    
(303
)
  
(240
)
  
(155
)
  
137
    
550
  
Adjusted income
    
1,693
    
4,613
    
1,184
    
1,201
    
(6,775
)
Adjusted fixed charges (b)
    
8,317
    
7,736
    
8,466
    
9,696
    
11,259
  
Earnings
  
$
10,010
  
$
12,349
  
$
9,650
  
$
10,897
  
$
4,484
  
Combined Fixed Charges and Preferred Stock Dividends
                                
Interest expense (c)
  
$
7,710
  
$
7,128
  
$
7,706
  
$
8,847
  
$
10,830
  
Interest portion of rental expense (d)
    
514
    
565
    
524
    
448
    
394
  
Preferred Stock dividend requirements of majority owned subsidiaries and trusts
    
—
    
—
    
190
    
353
    
55
  
Fixed charges
    
8,224
    
7,693
    
8,420
    
9,648
    
11,279
  
Ford Preferred Stock dividend requirements (e)
    
—
    
—
    
—
    
22
    
22
  
Total combined fixed charges and Preferred Stock dividends
  
$
8,224
  
$
7,693
  
$
8,420
  
$
9,670
  
$
11,301
  
Ratios
                                
Ratio of earnings to fixed charges
    
1.2
    
1.6
    
1.1
    
1.1
    
(f
)
Ratio of earnings to combined fixed charges and Preferred Stock
 dividends
    
1.2
    
1.6
    
1.1
    
1.1
    
(f
)
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. (Capitalized interest: 2005 — $67 mil; 2004 — $57 mil; 2003 — $63 mil; 2002 — $46 mil; 2001 — $44 mil)
   
(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 which 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 by $6.8 billion.