EX-12 5 exhibit-12.htm COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES exhibit-12.htm
Exhibit 12
 
Meritor, Inc.
Computation of Ratio of Earnings to Fixed Charges
Nine Months Ended June 30, 2011
 
Earnings Available for Fixed Charges (A):      
       
Pre-tax income from continuing operations $ 98  
       
Less:      
Equity in earnings of affiliates, net of dividends   (21 )
    77  
       
Add: fixed charges included in earnings:      
Interest expense   74  
Interest element of rentals   4  
Total   78  
       
Total earnings available for fixed charges: $ 155  
       
Fixed Charges (B):      
Fixed charges included in earnings $ 78  
Capitalized interest   —  
Total fixed charges $        78  
       
Ratio of Earnings to Fixed Charges   1.99  

(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.