EX-12 2 calculationofratios.htm CALCULATION OF RATIOS Calculation of Ratios
Exhibit 12

FORD MOTOR CREDIT COMPANY AND SUBSIDIARIES
CALCULATION OF RATIO OF EARNINGS TO FIXED CHARGES



   
Nine
                      
 
  
Months
  
For the Years Ended December 31,
 
 
  
2005
  
2004
  
2003
  
2002
  
2001
  
2000
  
   
(in millions)
  
Earnings
                                      
Income from continuing operations
                                     
before income taxes
 
$
3,124
  
$
4,431
  
$
2,956
  
$
1,979
  
$
1,493
  
$
2,495
  
Less: Equity in net income/(loss)
                                      
of affiliated companies
   
9
   
(2
)
  
12
   
13
   
5
   
(22
)
Fixed charges
   
4,276
   
5,364
   
5,865
   
6,965
   
8,958
   
8,939
 
Earnings before fixed charges
 
$
7,391
  
$
9,797
  
$
8,809
  
$
8,931
  
$
10,446
  
$
11,456
  
                                       
Fixed charges
                                      
Interest expense
 
$
4,256
  
$
5,333
  
$
5,831
  
$
6,929
  
$
8,922
  
$
8,910
  
Rents
   
20
   
31
   
34
   
36
   
36
   
29
 
Total fixed charges
 
$
4,276
  
$
5,364
  
$
5,865
  
$
6,965
  
$
8,958
  
$
8,939
  
                                       
Ratio of earnings to fixed charges
   
1.73
   
1.83
   
1.50
   
1.28
   
1.17
   
1.28
 

For purposes of our ratio, earnings consist of the sum of pre-tax income from continuing operations before adjustment for minority interests in consolidated subsidiaries, less equity in net income or loss of affiliated companies, plus fixed charges. Fixed charges consist of interest on borrowed funds, amortization of debt discount, premium, and issuance expense, and one-third of all rental expense (the proportion deemed representative of the interest factor).
 
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