EX-12 14 a6622311_ex12.htm EXHIBIT 12 Unassociated Document

Exhibit 12

FORD MOTOR COMPANY AND SUBSIDIARIES

CALCULATION OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES (a)
(in millions)



   
2010
   
2009
   
2008
   
2007
   
2006
 
Earnings
                             
Income/(Loss) before income taxes and cumulative effects of changes in accounting principles (b)
  $ 7,149     $ 2,599     $ (14,895 )   $ (4,286 )   $ (15,490 )
Less: Equity in net (income)/loss of affiliated companies included in income/(loss) before income taxes
    (538 )     (336 )     (382 )     (639 )     (599 )
Adjusted income/(loss)
    6,611       2,263       (15,277 )     (4,925 )     (16,089 )
Adjusted fixed charges (c)
    6,741       7,395       10,518       11,753       9,439  
Earnings/(Losses)
  $ 13,352     $ 9,658     $ (4,759 )   $ 6,828     $ (6,650 )
                                         
Combined Fixed Charges
                                       
Interest expense (d)
  $ 6,173     $ 6,818     $ 9,787     $ 11,036     $ 8,804  
Interest portion of rental expense (e)
    204       258       322       344       327  
Total combined fixed charges
  $ 6,377     $ 7,076     $ 10,109     $ 11,380     $ 9,131  
                                         
Ratios
                                       
Ratio of earnings to combined fixed charges
    2.1       1.4    
(f)
   
(f)
   
(f)
 
__________
(a)
Discontinued operations are excluded from all amounts.  There were no preferred stock dividends in the periods displayed.
(b)
Excludes any impairments or writedowns that are included in Equity in net income/(loss) of affiliated companies shown on the statement of operations.
(c)
Combined fixed charges, as shown above, adjusted to exclude capitalized interest, and to include dividends from affiliated companies as well as amortization of capitalized interest.  (Capitalized interest (in millions):  2010 - $20; 2009 - $28; 2008 - $50; 2007 - $47; 2006 - $53)
(d)
Includes interest, as shown on our statement of operations, plus capitalized interest.
(e)
One-third of all rental expense is deemed to be interest.
(f)
Earnings/(Losses) were inadequate to cover fixed interest charges by (in billions):  2008 — $14.9; 2007 — $4.6; 2006 — $15.8.