EX-12 7 ex12.txt Exhibit 12
Ford Motor Company and Subsidiaries CALCULATION OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS ---------------------------------------------------------------------------------------- (in millions) For the Years Ended December 31 ----------------------------------------------------------- 2001 2000 1999 1998 1997 --------- ------------ ---------- ----------- ------------- Earnings -------- Income before income taxes $(7,584) $ 8,234 $ 9,854 $24,280 $10,124 Equity in net (income)/loss of affiliates plus dividends from affiliates 857 99 (12) 87 141 Adjusted fixed charges a/ 11,257 11,300 9,381 9,161 10,896 ------- ------- ------- ------- ------- Earnings $ 4,530 $19,633 $19,223 $33,528 $21,161 ======= ======= ======= ======= ======= Combined Fixed Charges and Preferred Stock Dividends -------------------------- Interest expense b/ $10,894 $10,937 $ 9,065 $ 8,881 $10,559 Interest portion of rental expense c/ 317 302 258 228 297 Preferred stock dividend requirements of majority owned subsidiaries and trusts 55 55 55 55 55 ------- ------- ------- ------- ------- Fixed charges 11,266 11,294 9,378 9,164 10,911 Ford preferred stock dividend requirements d/ 22 22 22 121 85 ------- ------- ------- ------- ------- Total combined fixed charges and preferred stock dividends $11,288 $11,316 $ 9,400 $ 9,285 $10,996 ======= ======= ======= ======= ======= Ratios ------ Ratio of earnings to fixed charges f/ 1.7 2.0 3.7e/ 1.9 Ratio of earnings to combined fixed charges and preferred stock dividends f/ 1.7 2.0 3.6e/ 1.9 Visteon is excluded from all amounts. - - - - - a/ Fixed charges, as shown above, adjusted to exclude the amount of interest capitalized during the period and preferred stock dividend requirements of majority owned subsidiaries and trusts. b/ Includes interest, whether expensed or capitalized, and amortization of debt expense and discount or premium relating to any indebtedness. c/ One-third of all rental expense is deemed to be interest. d/ Preferred stock dividend requirements of Ford Motor Company increased to an amount representing the pre-tax earnings which would be required to cover such dividend requirements based on Ford Motor Company's effective income tax rates. e/ Earnings used in calculation of this ratio include the $15,955 million gain on the spin-off of The Associates. Excluding this gain, the ratio is 1.9. f/ Earnings for the year ended December 31, 2001 were inadequate to cover fixed charges. The coverage deficiency was $6.7 billion for ratio of earnings to fixed charges and $6.8 billion for ratio of earnings to combined fixed charges and preferred stock dividends.