EX-12 4 y47627aex12.txt COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES 1 EXHIBIT 12
Quarter Fiscal Year Ended September 30, Ended ------------------------------- December 31, Earnings Available for Fixed Charges: 1996 1997 1998 1999 2000 2000 ----- ----- ----- ----- ----- ----- (1) (1) (2) Pre-tax income from continuing operations $ 193 $ 197 $ 256 $ 333 $ 369 $ (12) Adjustments: Undistributed income of affiliates (10) (10) (1) (7) -- (2) ----- ----- ----- ----- ----- ----- 183 187 255 326 369 (14) Add fixed charges included in earnings: Interest expense 10 10 43 65 92 37 Interest element of rentals 7 7 8 8 9 2 Amortization of debt issuance costs -- -- -- 1 1 -- ----- ----- ----- ----- ----- ----- Total 17 17 51 74 102 39 ----- ----- ----- ----- ----- ----- Total earnings available for fixed charges: $ 200 $ 204 $ 306 $ 400 $ 471 $ 25 ----- ----- ----- ----- ----- ----- Fixed Charges: Fixed charges included in earnings $ 17 $ 17 $ 51 $ 74 $ 102 $ 39 Capitalized interest -- -- -- -- 1 -- ----- ----- ----- ----- ----- ----- Total fixed charges $ 17 $ 17 $ 51 $ 74 $ 103 $ 39 ----- ----- ----- ----- ----- ----- Ratio of Earnings to Fixed Charges(3) 11.8 12.0 6.0 5.4 4.6 -- ===== ===== ===== ===== ===== =====
1 = On September 30, 1997, Rockwell International Corporation transferred its automotive businesses to Meritor and distributed all of the issued and outstanding shares of Meritor's common stock to Rockwell shareowners. The financial information presented for periods prior to September 30, 1997 has been prepared based on the combined historical financial position, results of operations and cash flows of the ongoing automotive businesses of Rockwell prior to the distribution and is not necessarily indicative of what the financial position, results of operations or cash flows would have been had Meritor been an independent public company during the periods presented. 2 = As a result of a loss in the first quarter of fiscal 2001, earnings were not sufficient to cover fixed charges by $14 million. 3 = "Earnings" are defined as pre-tax income from continuing operations, adjusted for undistributed earnings of less than majority owned subsidiaries and fixed charges excluding capitalized interest. "Fixed charges" are defined as interest on borrowings (whether expensed or capitalized), the portion of rental expense applicable to interest, and amortization of debt issuance costs.