EX-12 5 exhibit12.htm COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

Exhibit 12

Meritor, Inc.
Computation of Ratio of Earnings to Fixed Charges
(Amounts in millions, except the ratio)

Fiscal Year ended September 30,
      2014       2013       2012       2011       2010
Earnings Available for Fixed Charges (A):
Pre-tax income (loss) from continuing operations $      315 $      51 $      137 $      157 $      75
 
Less:
Equity in earnings of affiliates, net of dividends (3 ) (12 ) (5 ) (25 ) (37 )
  312 39 132 132 38
Add: fixed charges included in earnings:
Interest expense 101 123 97 98 114
Interest element of rentals 5 2 7 6 5
Total 106 125 104 104 119
 
Total earnings available for fixed charges: $ 418 $ 164 $ 236 $ 236 $ 157
 
Fixed Charges (B):
Fixed charges included in earnings $ 106 $ 125 $ 104 $ 104 $ 119
Capitalized interest
Total fixed charges $ 106 $ 125 $ 104 $ 104 $ 119
 
Ratio of Earnings to Fixed Charges 3.94 1.31 2.27 2.27 1.32

(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.