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. | |