EX-12 8 a6182308ex12.htm EXHIBIT 12 a6182308ex12.htm
Exhibit 12
 
 
FORD MOTOR COMPANY AND SUBSIDIARIES
 
CALCULATION OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES (a)
(in millions)

 
 
   
2009
   
2008
   
2007
   
2006
   
2005
 
Earnings
                             
Income/(Loss) before income taxes and cumulative effects of changes in accounting principles
  $ 3,026     $ (14,498 )   $ (3,857 )   $ (15,079 )   $ 1,054  
Less: Equity in net (income)/loss of affiliated companies included in income/(loss) before income taxes (b)
    (151 )     (177 )     (412 )     (426 )     (303 )
Adjusted income/(loss)
    2,875       (14,675 )     (4,269 )     (15,505 )     751  
Adjusted fixed charges (c)
    7,291       10,403       11,649       9,325       9,091  
Earnings/(Losses)
  $ 10,166     $ (4,272 )   $ 7,380     $ (6,180 )   $ 9,842  
                                         
Combined Fixed Charges
                                       
Interest expense (d)
  $ 6,858     $ 9,858     $ 11,089     $ 8,845     $ 8,484  
Interest portion of rental expense (e)
    261       325       348       329       514  
Total combined fixed charges
  $ 7,119     $ 10,183     $ 11,437     $ 9,174     $ 8,998  
                                         
Ratios
                                       
Ratio of earnings to combined fixed charges
    1.4    
(f)
   
(f)
   
(f)
      1.1  
_____________
(a)
Discontinued operations are excluded from all amounts.  There were no preferred stock dividends in the periods displayed.
   
(b)
Excludes any impairments or writedowns that are included in Equity in net income/(loss) of affiliated companies shown on the statement of operations.
   
(c)
Combined fixed charges, as shown above, adjusted to exclude capitalized interest, and to include dividends from affiliated companies as well as amortization of capitalized interest.  (Capitalized interest (in millions): 2009 - $29; 2008 - $53; 2007 - $51; 2006 - $58; 2005 - $67)
   
(d)
Includes interest, as shown on our statement of operations, plus capitalized interest.
   
(e)
One-third of all rental expense is deemed to be interest.
   
(f)
Earnings/(Losses) were inadequate to cover fixed interest charges by (in billions): 2008 — $14.5; 2007 — $4.1; 2006 — $15.4.