EX-12 7 dex12.htm COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES Computation of Ratios of Earnings to Fixed Charges

Exhibit 12

GENERAL MOTORS COMPANY AND SUBSIDIARIES

COMPUTATION OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS

(Dollars in millions)

 

    Successor           Predecessor  
    Year  Ended
December 31,
2010		     July 10,  2009
Through
December  31,
2009		           January 1,
2009
Through
July 9,  2009		     Years Ended December 31,  
          2008     2007     2006  

Income (loss) from continuing operations before income taxes and equity income

   $ 5,737      $ (5,283 )        $ 107,776 (a)    $ (29,471 )    $ (6,346 )    $ (5,743 ) 
 

Fixed charges included in income (loss) from continuing operations

                

Interest and related charges on debt

     1,155        707            5,444        2,659        3,399        17,029   

Portion of rentals deemed to be interest

     171        72            104        264        230        346   

Interest capitalized in period

     62        26            28        244        24        44   
                                                   

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

     1,388        805            5,576        3,167        3,653        17,419   
                                                   

Amortization of capitalized interest

     1        —            46        77        48        51   

Equity (income) loss of Ally Financial, Inc.

     —        —            (1,380 )      6,183        1,245        5   

Dividends from nonconsolidated affiliates

     1,171        422            112        440        693        366   

Interest capitalized

     (62 )      (26 )          (28 )      (244 )      (24 )      (44 ) 
                                                   

Earnings (losses) available for fixed charges

   $ 8,235      $ (4,082 )        $ 112,102      $ (19,848 )    $ (731 )    $ 12,054   
                                                   

Fixed charges included in income (loss) from continuing operations

   $ 1,388      $ 805          $ 5,576      $ 3,167      $ 3,653      $ 17,419   
                                                   

Preferred dividends

                

Dividends on Series A and Series B Preferred Stock

   $ 1,504      $ 131          $ —      $ —      $ —      $ —   
                                                   

Preferred dividends grossed up to a pre-income tax basis

   $ 1,703      $ 162          $ —      $ —      $ —      $ —   
                                                   

Combined fixed charges and preferred dividends

   $ 3,091      $ 967          $ 5,576      $ 3,167      $ 3,653      $ 17,419   
                                                   

Ratios of earnings to fixed charges

     5.93              20.10            0.69   
                                 

Ratio of earnings to combined fixed charges and preferred stock dividends

     2.66              20.10            0.69   
                                 

 

(a) Earnings for the period January 1, 2009 through July 9, 2009 include Reorganization gains, net of $128.2 billion.

Earnings for the period July 10, 2009 through December 31, 2009 and the years ended December 31, 2008, and 2007 were inadequate to cover fixed charges. Additional earnings of $5.0 billion, $23.0 billion and $4.4 billion for the period July 10, 2009 through December 31, 2009 and the years ended December 31, 2008 and 2007 would have been necessary to bring ratios for these periods to 1.0.