EX-12 6 exhbit12.htm COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES exhbit12.htm
Exhibit 12
 
Meritor, Inc.
Computation of Ratio of Earnings to Fixed Charges
Year Ended September 30, 2011
(Amounts in millions, except the ratio)
 
Earnings Available for Fixed Charges (A):      
       
Pre-tax income from continuing operations $       159  
       
Less:      
Equity in earnings of affiliates, net of dividends   (25 )
    134  
Add: fixed charges included in earnings:      
Interest expense   98  
Interest element of rentals   6  
Total   104  
       
Total earnings available for fixed charges: $ 238  
       
Fixed Charges (B):      
Fixed charges included in earnings $ 104  
Capitalized interest    
Total fixed charges $ 104  
       
Ratio of Earnings to Fixed Charges   2.29  
____________________
 
(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.