EX-12 3 ex12.htm EXHIBIT 12 ex12.htm

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 2008
   
2007
   
2006
   
2005
   
2004
   
2003
 
Earnings
                                   
Income before income taxes and cumulative effects of changes in accounting principles (b)
  $ 320     $ (3,749 )   $ (15,089 )   $ 1,031     $ 4,061     $ 858  
Less: Equity in net (income)/loss of affiliates include in income before income taxes
    (142 )     (412 )     (426 )     (303 )     (240 )     (155 )
Adjusted income
    178       (4,161 )     (15,515 )     728       3,821       703  
Adjusted fixed charges (c)
    2,657       11,522       9,300       9,070       9,117       9,976  
Earnings
  $ 2,835     $ 7,361     $ (6,215 )   $ 9,798     $ 12,938     $ 10,679  
Combined Fixed Charges and Preferred Stock Dividends
                                               
Interest expense (d)
  $ 2,557     $ 10,963     $ 8,820     $ 8,464     $ 8,510     $ 9,217  
Interest portion of rental expense (e)
    81       347       329       513       564       523  
Preferred Stock dividend requirements of majority owned subsidiaries and trusts
                                  190  
Total combined fixed charges and Preferred Stock dividends
  $ 2,638     $ 11,310     $ 9,149     $ 8,977     $ 9,074     $ 9,930  
Ratios
                                               
Ratio of earnings to fixed charges
    1.1    
(f)
   
(f)
      1.1       1.4       1.1  
Ratio of earnings to combined fixed charges and Preferred Stock dividends
    1.1    
(f)
   
(f)
      1.1       1.4       1.1  
__________
(a)
Discontinued operations are excluded from all amounts.

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

(c)
Combined fixed charges, as shown above, adjusted to exclude capitalized interest, and to include dividends from unconsolidated subsidiaries as well as amortization of capitalized interest.  (Capitalized interest (in millions): 2008 YTD — $15; 2007 — $51; 2006 — $58; 2005 — $67; 2004 — $57; 2003 — $63)

(d)
Includes interest, as defined on our income statement, plus capitalized interest.

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

(f)
Earnings for 2007 and 2006 were inadequate to cover fixed charges by $3.9 billion and $15.4 billion, respectively.