EX-12 2 calculationofratios.htm CALCULATION OF RATIOS EX-12
Exhibit 12

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

                               
 
  
First Quarter
  
For the Years Ended December 31,
  
 
  
2006
  
2005
  
2004
  
2003
  
2002
  
2001
  
   
(in millions)
  
Earnings
                                      
Income from continuing operations
                                     
before income taxes
 
$
751
  
$
3,861
  
$
4,431
  
$
2,956
  
$
1,979
  
$
1,493
  
Less: Equity in net income/(loss)
                                      
of affiliated companies
   
6
    
11
    
(2
)
  
12
    
13
    
5
  
Fixed charges
   
1,684
    
5,868
    
5,364
    
5,865
    
6,965
    
8,958
  
Earnings before fixed charges
 
$
2,429
  
$
9,718
  
$
9,797
  
$
8,809
  
$
8,931
  
$
10,446
  
                                       
Fixed charges
                                      
Interest expense
 
$
1,677
  
$
5,842
  
$
5,333
  
$
5,831
  
$
6,929
  
$
8,922
  
Rents
   
7
    
26
    
31
    
34
    
36
    
36
  
Total fixed charges
 
$
1,684
  
$
5,868
  
$
5,364
  
$
5,865
  
$
6,965
  
$
8,958
  
                                       
Ratio of earnings to fixed charges
   
1.44
    
1.66
    
1.83
    
1.50
    
1.28
    
1.17
  


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).