Exhibit 12
ARVINMERITOR, INC.
COMPUTATION OF EARNINGS TO FIXED CHARGES
COMPUTATION OF EARNINGS TO FIXED CHARGES
Fiscal Year Ended September 30, | ||||||||||||||||||||
2009 | 2008 | 2007 | 2006 | 2005 | ||||||||||||||||
( in millions) | ||||||||||||||||||||
Earnings Available for Fixed Charges (A): | ||||||||||||||||||||
Pre-tax income (loss) from continuing operations | $ | (361.0 | ) | $ | 93.0 | $ | (97.0 | ) | $ | 6.0 | $ | 15.0 | ||||||||
Less: | ||||||||||||||||||||
Equity in earnings of affiliates, net of dividends | 10.0 | (18.0 | ) | (13.0 | ) | (10.0 | ) | (9.0 | ) | |||||||||||
(351.0 | ) | 75.0 | (110.0 | ) | (4.0 | ) | 6.0 | |||||||||||||
Add fixed charges included in earnings: | ||||||||||||||||||||
Interest expense | 94.0 | 99.0 | 124.0 | 142.0 | 129.0 | |||||||||||||||
Interest element of rentals | 11.0 | 9.0 | 9.0 | 10.0 | 9.0 | |||||||||||||||
Total | 105.0 | 108.0 | 133.0 | 152.0 | 138.0 | |||||||||||||||
Total earnings available for fixed charges: | — | 183.0 | 23.0 | 148.0 | 144.0 | |||||||||||||||
Fixed Charges (B): | ||||||||||||||||||||
Fixed charges included in earnings | $ | 105.0 | $ | 108.0 | $ | 133.0 | $ | 152.0 | $ | 138.0 | ||||||||||
Capitalized interest | — | — | — | — | — | |||||||||||||||
Total fixed charges | $ | 105.0 | $ | 108.0 | $ | 133.0 | $ | 152.0 | $ | 138.0 | ||||||||||
Ratio of Earnings to Fixed Charges | (C | ) | 1.69 | (C | ) | (C | ) | 1.04 |
(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. | |
(C) | The ratio coverage was less than 1:1 for fiscal years 2009, 2007 and 2006. The company would have needed to generate additional pretax earnings of $351 million, $110 million and $4 million to achieve coverage of 1:1 for fiscal years 2009, 2007 and 2006, respectively. |