EX-12 2 ex12.htm EXHIBIT 12 Exhibit 12

Exhibit 12


FORD MOTOR COMPANY AND SUBSIDIARIES

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

   
Restated
  
       
For the Years Ended December 31
  
 
  
First
Quarter
2006
  
 
 
2005
  
 
 
2004
  
 
 
2003
  
 
 
2002
  
 
 
2001
  
Earnings
      
 
  
 
  
 
  
 
  
 
  
Income before income taxes and cumulative effects of changes in accounting principles (a)
 
$
(2,345
)
$
1,079
  
$
4,109
  
$
914
  
$
4,036
  
$
(6,372
)
Less: Equity in net (income)/loss of affiliates included in income before income taxes
   
(86
)
  
(303
)
  
(240
)
  
(155
)
  
137
    
351
  
Adjusted income
   
(2,431
)
  
776
    
3,869
    
759
    
4,173
    
(6,021
)
Adjusted fixed charges (b)
   
2,264
    
9,091
    
9,136
    
9,996
    
10,977
    
11,911
  
Earnings
 
$
(167
)
$
9,867
  
$
13,005
  
$
10,755
  
$
15,150
  
$
5,890
  
                                       
Combined Fixed Charges and Preferred Stock Dividends
                                      
Interest expense (c)
 
$
2,155
  
$
8,484
  
$
8,528
  
$
9,236
  
$
10,128
  
$
11,482
  
Interest portion of rental expense (d)
   
86
    
514
    
565
    
524
    
448
    
394
  
Preferred Stock dividend requirements of majority owned subsidiaries and trusts
   
—
    
—
    
—
    
190
    
353
    
55
  
Fixed charges
   
2,241
    
8,998
    
9,093
    
9,950
    
10,929
    
11,931
  
Ford Preferred Stock dividend requirements (e)
   
—
    
—
    
—
    
—
    
22
    
22
  
Total combined fixed charges and Preferred Stock dividends
 
$
2,241
  
$
8,998
  
$
9,093
  
$
9,950
  
$
10,951
  
$
11,953
  
                                       
Ratios
                                      
Ratio of earnings to fixed charges
   
(f
)
  
1.1
    
1.4
    
1.1
    
1.4
    
(f
)
Ratio of earnings to combined fixed charges and Preferred Stock dividends
   
(f
)
  
1.1
    
1.4
    
1.1
    
1.4
    
(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: March 2006 YTD - $19 mil; 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 $6.1 billion.
 
Earningsfor the first quarter 2006 were inadequate to cover fixed charges by $2.4 billion.