EX-12 2 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 Nine Months 2007
    
2006
    
2005
    
2004
    
2003
    
2002
  
Earnings
                                    
Income before income taxes and cumulative effects of changes in accounting principles (b)
   $
726
     $ (15,074 )   $
1,054
     $
4,087
     $
893
     $
4,021
  
Less: Equity in net (income)/loss of affiliates included in income before income taxes
     (282 )     (426 )     (303 )     (240 )     (155 )    
137
  
Adjusted income
    
444
       (15,500 )    
751
      
3,847
      
738
      
4,158
  
Adjusted fixed charges (c)
    
8,687
      
9,321
      
9,091
      
9,136
      
9,996
      
10,977
  
Earnings
   $
9,131
     $ (6,179 )   $
9,842
     $
12,983
     $
10,734
     $
15,135
  
Combined Fixed Charges and Preferred Stock Dividends
                                                
Interest expense (d)
   $
8,246
     $
8,841
     $
8,484
     $
8,528
     $
9,235
     $
10,128
  
Interest portion of rental expense (e)
    
266
      
329
      
514
      
565
      
524
      
448
  
Preferred Stock dividend requirements of majority-owned subsidiaries and trusts
    
—
      
—
      
—
      
—
      
190
      
353
  
Fixed charges
    
8,512
      
9,170
      
8,998
      
9,093
      
9,949
      
10,929
  
Ford Preferred Stock dividend requirements (f)
    
—
      
—
      
—
      
—
      
—
      
22
  
Total combined fixed charges and Preferred Stock dividends
   $
8,512
     $
9,170
     $
8,998
     $
9,093
     $
9,949
     $
10,951
  
Ratios
                                                
Ratio of earnings to fixed charges
    
1.1
    
(g
 )    
1.1
      
1.4
      
1.1
      
1.4
  
Ratio of earnings to combined fixed charges and Preferred Stock dividends
    
1.1
  
 (g
 )    
1.1
      
1.4
      
1.1
      
1.4
  
__________

(a)
Discontinued operations are excluded from all amounts.

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

(c)
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): 2007 YTD— $36; 2006— $58; 2005— $67; 2004 — $57; 2003 — $63; 2002 — $46).

(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)
Preferred Stock dividend requirements were 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.
 
 
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