EX-12 5 mtor-09302015xex12.htm COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES Exhibit


Exhibit 12


Meritor, Inc.
Computation of Ratio of Earnings to Fixed Charges
Year Ended September 30, 2015
(Amounts in millions, except the ratio)


 
Earnings Available for Fixed Charges (A):
 
 
 
 
 
 
 
 
 
Pre-tax income from continuing operations
 
$
67

 
 
 
 
 
 
Less:
 
 
 
 
Equity in earnings of affiliates, net of dividends
 
 
(7
)
 
 
 
 
60

 
Add: fixed charges included in earnings:
 
 
 
 
Interest expense
 
 
83

 
Interest element of rentals
 
 
4

 
Total
 
 
87

 
 
 
 
 
 
Total earnings available for fixed charges:
 
$
147

 
 
 
 
 
 
Fixed Charges (B):
 
 
 
 
Fixed charges included in earnings
 
$
87

 
Capitalized interest
 
 

 
Total fixed charges
 
$
87

 
 
 
 
 
 
Ratio of Earnings to Fixed Charges
 
 
1.69

 

(A) “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.

(B) “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.