EX-12 3 exhibit12.htm COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES Exhibit
Exhibit 12


Meritor, Inc.
Computation of Ratio of Earnings to Fixed Charges
Nine Months Ended June 30, 2016
(Amounts in millions, except the ratio)


 
Earnings Available for Fixed Charges (A):
 
 
 
 
 
 
 
 
 
Pre-tax income from continuing operations
 
$
127

 
 
 
 
 
 
Add:
 
 
 
 
Distributed income of affiliates
 
 
29

 
 
 
 
 
 
Less:
 
 
 
 
Equity in earnings of affiliates
 
 
(26
)
 
 
 
 
130

 
Add: fixed charges included in earnings:
 
 
 
 
Interest expense
 
 
62

 
Interest element of rentals
 
 
3

 
Total
 
 
65

 
 
 
 
 
 
Total earnings available for fixed charges:
 
$
195

 
 
 
 
 
 
Fixed Charges (B):
 
 
 
 
Fixed charges included in earnings
 
$
65

 
Capitalized interest
 
 
—

 
Total fixed charges
 
$
65

 
 
 
 
 
 
Ratio of Earnings to Fixed Charges
 
 
3.00

 

(A) “Earnings” are defined as pre-tax income from continuing operations, adjusted for minority earnings and share of income from equity investees 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.