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 (a)
(in millions)
 
   
First Quarter
  
 
For the year ended December 31,
  
   
2007
  
2006
  
2005
  
2004
  
2003
  
2002
  
Earnings
                          
Income/(loss) before income taxes and cumulative effects of changes in accounting principles (b)
  
$
(44
)
$
(15,074
)
$
1,054
  
$
4,087
  
$
893
  
$
4,021
  
Less: Equity in net (income)/loss of affiliates include in income/(loss) before income taxes
    
(78
)
  
(426
)
  
(303
)
  
(240
)
  
(155
)
  
137
  
Adjusted income/(loss)
    
(122
)
  
(15,500
)
  
751
    
3,847
    
738
    
4,158
  
Adjusted fixed charges (c)
    
2,844
    
9,321
    
9,091
    
9,136
    
9,996
    
10,977
  
Earnings
  
$
2,722
 
$
(6,179
)
$
9,842
  
$
12,983
  
$
10,734
  
$
15,135
  
Combined fixed charges and Preferred Stock dividends
                                      
Interest expense (d)
  
$
2,730
  
$
8,841
  
$
8,484
  
$
8,528
  
$
9,235
  
$
10,128
  
Interest portion of rental expense (e)
    
91
    
329
    
514
    
565
    
524
    
448
  
Preferred Stock dividend requirements of majority-owned subsidiaries and trusts
    
—
    
—
    
—
    
—
    
190
    
353
  
Fixed charges
    
2,821
    
9,170
    
8,998
    
9,093
    
9,949
    
10,929
  
Preferred Stock dividend requirements (f)
    
—
    
—
    
—
    
—
    
—
    
22
  
Total combined fixed charges and Preferred Stock dividends
  
$
2,821
  
$
9,170
  
$
8,998
  
$
9,093
  
$
9,949
  
$
10,951
  
Ratios
                                      
Ratio of earnings to fixed charges
    
1.0
    
(g
)
  
1.1
    
1.4
    
1.1
    
1.4
  
Ratio of earnings to combined fixed charges and Preferred Stock dividends
    
1.0
    
(g
)
  
1.1
    
1.4
    
1.1
    
1.4
  

__________

(a)
Discontinued operations are excluded from all amounts.

(b)
Income/(loss) before income taxes includes equity income/(loss) from unconsolidated subsidiaries.

(c)
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 (in millions): 2007 YTD— $12; 2006— $58; 2005— $67; 2004 — $57; 2003 — $63; 2002 — $46)

(d)
Includes interest, whether expensed or capitalized, and amortization of debt expense and discount or premium relating to any indebtedness.

(e)
One-third of all rental expense is deemed to be interest.

(f)
Preferred Stock dividend requirements increased to an amount representing the pre-tax earnings which would be required to cover such dividend requirements based on our effective income tax rates.

(g)
Earnings for 2006 were inadequate to cover fixed charges by $15.3 billion.