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 (a)
(in millions)


   
First Nine Months
                               
   
2009
   
2008
   
2007
   
2006
   
2005
   
2004
 
Earnings
                                   
Income/(Loss) before income taxes and cumulative effects of changes in accounting principles (b)
  $ 1,966     $ (14,498 )   $ (3,857 )   $ (15,079 )   $ 1,054     $ 4,087  
Less: Equity in net (income)/loss of affiliated companies included in income/(loss) before income taxes
    (115 )     (177 )     (412 )     (426 )     (303 )     (240 )
Adjusted income/(loss)
    1,851       (14,675 )     (4,269 )     (15,505 )     751       3,847  
Adjusted fixed charges (c)
    5,607       10,403       11,649       9,325       9,091       9,136  
Earnings/(Losses)
  $ 7,458     $ (4,272 )   $ 7,380     $ (6,180 )   $ 9,842     $ 12,983  
                                                 
Combined Fixed Charges
                                               
Interest expense (d)
  $ 5,269     $ 9,858     $ 11,089     $ 8,845     $ 8,484     $ 8,528  
Interest portion of rental expense (e)
    198       325       348       329       514       565  
Total combined fixed charges
  $ 5,467     $ 10,183     $ 11,437     $ 9,174     $ 8,998     $ 9,093  
                                                 
Ratios
                                               
Ratio of earnings to combined fixed charges
    1.4    
(f)
   
(f)
   
(f)
      1.1       1.4  
__________
(a)
Discontinued operations are excluded from all amounts.  There were no preferred stock dividends in the periods displayed.

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

(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 YTD - $24; 2008 - $53; 2007 - $51; 2006 - $58; 2005 - $67; 2004 - $57)

(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.