EX-12 4 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 Half
2008
    
 
2007
    
2006
    
2005
    
2004
    
2003
  
Earnings
                                    
Income/(Loss) before income taxes and cumulative effects of changes in accounting principles (b)
   $ (8,714 )   $ (3,746 )   $ (15,074 )   $ 1,054     $ 4,087     $ 893  
Less: Equity in net (income)/loss of affiliates included in income before income taxes
     (106 )     (412 )     (426 )     (303 )     (240 )     (155 )
Adjusted income/(loss)
     (8,820 )     (4,158 )     (15,500 )     751       3,847       738  
Adjusted fixed charges (c)
     5,298       11,538       9,321       9,091       9,136       9,996  
Earnings/(Losses)
   $ (3,522 )   $ 7,380     $ (6,179 )   $ 9,842     $ 12,983     $ 10,734  
                                                 
Combined Fixed Charges and Preferred Stock Dividends
                                                
Interest expense (d)
   $ 4,984     $ 10,978     $ 8,841     $ 8,484     $ 8,528     $ 9,235  
Interest portion of rental expense (e)
     166       348       329       514       565       524  
Preferred Stock dividend requirements of majority owned subsidiaries and trusts
     —       —       —       —       —       190  
Total combined fixed charges and Preferred Stock dividends
   $ 5,150     $ 11,326     $ 9,170     $ 8,998     $ 9,093     $ 9,949  
                                                 
Ratios
                                                
Ratio of earnings to fixed charges
  
(f)
    
(f)
    
(f)
 
     1.1       1.4       1.1  
Ratio of earnings to combined fixed charges and Preferred Stock dividends
  
(f)
    
(f)
    
(f)
       1.1       1.4       1.1  
__________
(a)
Discontinued operations are excluded from all amounts.

(b)
Income/(Loss) 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 — $26; 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/(Losses) for 2008, 2007, and 2006 were inadequate to cover fixed charges by $8.7 billion, $3.9 billion and $15.4 billion, respectively.