EX-12 16 k12522exv12.htm CALCUATION OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES & PREFERRED STOCK DIVIDENDS exv12
 

Exhibit 12
FORD MOTOR COMPANY AND SUBSIDIARIES
CALCULATION OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES
AND PREFERRED STOCK DIVIDENDS (a)
(in millions)
                                         
    For the Years Ended December 31  
    2006     2005     2004     2003     2002  
Earnings
                                        
Income before income taxes and cumulative effects of changes in accounting principles (b)
   $ (15,051 )   $ 1,079     $ 4,109     $ 914     $ 4,036  
Less: Equity in net (income)/loss of affiliates included in income before income taxes
     (426 )     (303 )     (240 )     (155 )     137  
 
                              
Adjusted income
     (15,477 )     776       3,869       759       4,173  
Adjusted fixed charges (c)
     9,321       9,091       9,136       9,996       10,977  
 
                              
Earnings
   $ (6,156 )   $ 9,867     $ 13,005     $ 10,755     $ 15,150  
 
                              
Combined Fixed Charges and Preferred Stock Dividends
                                        
Interest expense (d)
   $ 8,841     $ 8,484     $ 8,528     $ 9,236     $ 10,128  
Interest portion of rental expense (e)
     329       514       565       524       448  
Preferred Stock dividend requirements of majority owned subsidiaries and trusts
     —       —       —       190       353  
 
                              
Fixed charges
     9,170       8,998       9,093       9,950       10,929  
Ford Preferred Stock dividend requirements (f)
     —       —       —       —       22  
 
                              
Total combined fixed charges and Preferred Stock dividends
   $ 9,170     $ 8,998     $ 9,093     $ 9,950     $ 10,951  
 
                              
Ratios
                                        
Ratio of earnings to fixed charges
     (g )     1.1       1.4       1.1       1.4  
Ratio of earnings to combined fixed charges and Preferred Stock dividends
     (g )     1.1       1.4       1.1       1.4  
 
(a)   Discontinued operations are excluded from all amounts.
 
(b)   Income before taxes includes equity income from unconsolidated subsidiaries.
 
(c)   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. (Capitalized interest (in millions): 2006 — $58; 2005 — $67; 2004 — $57; 2003 — $63; 2002 — $46)
 
(d)   Includes interest, whether expensed or capitalized, and amortization of debt expense and discount or premium relating to any indebtedness.
 
(e)   One-third of all rental expense is deemed to be interest.
 
(f)   Preferred Stock dividend requirements of Ford Motor Company were 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.
 
(g)   Earnings for 2006 were inadequate to cover fixed charges by $15.3 billion.