AMOUNTS PER SHARE ATTRIBUTABLE TO FORD MOTOR COMPANY COMMON AND CLASS B STOCK

We present both basic and diluted earnings per share ("EPS") amounts in our financial reporting. EPS is computed independently each quarter for income from continuing operations, income/(loss) from discontinued operations, and net income; as a result, the sum of per-share amounts from continuing operations and discontinued operations may not equal the total per-share amount for net earnings. Basic EPS excludes dilution and is computed by dividing income available to Common and Class B Stock holders by the weighted-average number of Common and Class B Stock outstanding for the period. Diluted EPS, on the other hand, reflects the maximum potential dilution that could occur if all of our equity-linked securities and other share-based compensation, including stock options, warrants, and rights under our convertible notes, were exercised. Potential dilutive shares are excluded from the calculation if they have an anti-dilutive effect in the period.

Warrants

All warrants outstanding expire January 1, 2013. The net dilutive effect for warrants, included below, is approximately 57 million and 76 million dilutive shares for the second quarter and first half of 2012, respectively, representing the net share settlement methodology for the 362 million warrants outstanding as of June 30, 2012.

Dividend Declaration

On July 12, 2012, our Board of Directors declared a third quarter 2012 dividend on our Common and Class B Stock of $0.05 per share payable on September 4, 2012 to stockholders of record on August 3, 2012.

Amounts Per Share Attributable to Ford Motor Company Common and Class B Stock

Basic and diluted income/(loss) per share were calculated using the following (in millions):



	Second Quarter				First Half
	2012		2011		2012		2011
Basic and Diluted Income/(Loss) Attributable to Ford Motor Company
Basic income/(loss) from continuing operations	$	1,040	$	2,398	$	2,436	$	4,949
Effect of dilutive 2016 Convertible Notes (a)	10		14		21		28
Effect of dilutive 2036 Convertible Notes (a)	—		—		—		1
Effect of dilutive Trust Preferred Securities (a) (b)	—		—		—		36
Diluted income/(loss) from continuing operations	$	1,050	$	2,412	$	2,457	$	5,014

Basic and Diluted Shares
Basic shares (average shares outstanding)	3,815		3,799		3,809		3,785
Net dilutive options and warrants	101		205		129		234
Dilutive 2016 Convertible Notes	95		95		95		95
Dilutive 2036 Convertible Notes	3		3		3		3
Dilutive Trust Preferred Securities (b)	—		—		—		66
Diluted shares	4,014		4,102		4,036		4,183

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(a)	As applicable, includes interest expense, amortization of discount, amortization of fees, and other changes in income or loss that would result from the assumed conversion.


(b)	The Trust Preferred Securities, which were convertible into Ford Common Stock, were fully redeemed on March 15, 2011.