EX-12.1 10 dex121.htm COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES Computation of Ratio of Earnings to Fixed Charges

Exhibit 12.1

GENERAL MOTORS CORPORATION AND SUBSIDIARIES

COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES

 

     Pro Forma     Years Ended December 31,  
       2008     2007     2006     2005     2004  
           (dollars in millions)  

Income (loss) from continuing operations

    $ (29,576 )   $ (30,860 )   $ (43,297 )   $ (2,423 )   $ (10,621 )   $ 2,415  

Income tax expense (benefit)

      1,766       1,766       37,162       (3,046 )     (6,046 )     (1,297 )

(Income)/losses of and dividends from nonconsolidated associates

      146       146       575       182       141       (447 )

Amortization of capitalized interest

      77       77       48       51       47       79  
                                                

Income (loss) before income taxes, undistributed income of nonconsolidated associates, and capitalized interest

      (27,587 )     (28,871 )     (5,512 )     (5,236 )     (16,479 )     750  
                                                

Fixed charges included in income (loss)

             

Interest and related charges on debt

      1,495       2,479       3,306       16,944       15,606       11,948  

Portion of rentals deemed to be interest

      226       226       220       301       293       274  
                                                

Total fixed charges included in income (loss) from continuing operations

      1,721       2,705       3,526       17,245       15,899       12,222  
                                                

Earnings (losses) available for fixed charges

    $ (25,866 )   $ (26,166 )   $ (1,986 )   $ 12,009     $ (580 )   $ 12,972  
                                                

Fixed charges

             

Fixed charges included in income (loss)

    $ 1,721     $ 2,705     $ 3,526     $ 17,245     $ 15,899     $ 12,222  

Interest capitalized in the period

      244       244       24       44       45       38  
                                                

Total fixed charges

    $ 1,965     $ 2,949     $ 3,550     $ 17,289     $ 15,944     $ 12,260  
                                                

Ratios of earnings (losses) to fixed charges

                1.06  
                  

Earnings for the years ended December 31, 2008, 2007, 2006 and 2005 were inadequate to cover fixed charges. Additional earnings of $29.1 billion, $5.5 billion, $5.3 billion and $16.5 billion for 2008, 2007, 2006 and 2005, respectively, would have been necessary to bring the respective ratios to 1.0.

After giving consideration to the pro forma adjustments described under “Unaudited Pro Forma Condensed Consolidated Financial Information for the Exchange Offers” included elsewhere in the Registration Statement, additional earnings of $27.8 billion would be necessary to bring the ratio to 1.0.