EX-12 4 gm-q42011xexx12.htm RATIO OF EARNINGS TO FIXED CHARGES AND PREFERRED DIVIDENDS GM-Q42011-EX-12

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,
 
July 10, 2009
Through
December 31,
2009
 
 
January 1, 2009
Through
July 9, 2009
 
Year Ended December 31,
2011
 
2010
 
 
2008
 
2007
Income (loss) from continuing operations before income taxes and equity income(a)
$
5,985

 
$
5,737

 
$
(5,283
)
 
 
$
107,776

 
$
(29,471
)
 
$
(6,346
)
Fixed charges included in income (loss) from continuing operations
 
 
 
 
 
 
 
 
 
 
 
 
Interest and related charges on debt
799

 
1,155

 
707

 
 
5,444

 
2,659

 
3,399

Portion of rentals deemed to be interest
161

 
171

 
72

 
 
104

 
264

 
230

Interest capitalized in period
91

 
62

 
26

 
 
28

 
244

 
24

Total fixed charges included in income (loss) from continuing operations
1,051

 
1,388

 
805

 
 
5,576

 
3,167

 
3,653

Amortization of capitalized interest
7

 
1

 
—

 
 
46

 
77

 
48

Equity (income) loss of Ally Financial, Inc.
—

 
—

 
—

 
 
(1,380
)
 
6,183

 
1,245

Dividends from nonconsolidated affiliates
1,350

 
1,171

 
422

 
 
112

 
440

 
693

Interest capitalized
(91
)
 
(62
)
 
(26
)
 
 
(28
)
 
(244
)
 
(24
)
Earnings (losses) available for fixed charges
$
8,302

 
$
8,235

 
$
(4,082
)
 
 
$
112,102

 
$
(19,848
)
 
$
(731
)
Fixed charges included in income (loss) from continuing operations
$
1,051

 
$
1,388

 
$
805

 
 
$
5,576

 
$
3,167

 
$
3,653

Preferred dividends
 
 
 
 
 
 
 
 
 
 
 
 
Dividends on Series A and Series B Preferred Stock
$
859

 
$
1,504

 
$
131

 
 
$
—

 
$
—

 
$
—

Preferred dividends grossed up to a pre-income tax basis
$
844

 
$
1,703

 
$
162

 
 
$
—

 
$
—

 
$
—

Combined fixed charges and preferred dividends
$
1,895

 
$
3,091

 
$
967

 
 
$
5,576

 
$
3,167

 
$
3,653

Ratios of earnings to fixed charges
7.90

 
5.93

 
 
 
 
20.10

 
 
 
 
Ratio of earnings to combined fixed charges and preferred stock dividends
4.38

 
2.66

 
 
 
 
20.10

 
 
 
 
__________
(a)
Includes Reorganization gains, net of $128.2 billion in the period January 1, 2009 through July 9, 2009.

Earnings in 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 in 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.