EXHIBIT 12
Computation of Ratio of Earnings to Fixed Charges
The computation of Ratio of Earnings to Fixed Charges as shown on this Exhibit 12 is provided pursuant to Items 503(d) and 601(12) of Regulation S-K.
In the first quarter of 2013, the Company’s previously issuedConsolidated Statements of Operations were restated to reflect the operating results of Workhorse Custom Chassis and certain operating results of Monaco recreational vehicle business as discontinued operations. The following table has been restated to reflect this change.
| (in millions) | 2012 | 2011 | 2010 | 2009 | 2008 | |||||||||||||||
Income (loss) from continuing operations before taxes(A) | $ | (1,082 | ) | $ | 506 | $ | 388 | $ | 395 | $ | 158 | |||||||||
Less: Net income attributable to non-controlling interests | (48 | ) | (55 | ) | (44 | ) | (25 | ) | — | |||||||||||
Dividends from non-consolidated affiliates | 7 | 4 | 5 | 59 | 85 | |||||||||||||||
Interest expense(B) | 213 | 203 | 215 | 235 | 456 | |||||||||||||||
Debt amortization expense | 46 | 44 | 38 | 16 | 13 | |||||||||||||||
Interest portion of rent expense(C) | 21 | 18 | 19 | 18 | 17 | |||||||||||||||
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Total earnings (loss) | $ | (843 | ) | $ | 720 | $ | 621 | $ | 698 | $ | 729 | |||||||||
Capitalized interest | $ | 9 | $ | 18 | $ | 4 | $ | 1 | $ | 5 | ||||||||||
Interest expense(B) and interest portion of rent expense(C) | 234 | 221 | 234 | 253 | 473 | |||||||||||||||
Debt amortization expense | 46 | 44 | 38 | 16 | 13 | |||||||||||||||
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Total fixed charges | $ | 289 | $ | 283 | $ | 276 | $ | 270 | $ | 491 | ||||||||||
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Ratio of earnings to fixed charges | — | 2.54 | 2.25 | 2.59 | 1.48 | |||||||||||||||
Earnings shortfall | $ | (1,132 | ) | $ | — | $ | — | $ | — | $ | — | |||||||||
| (A) | Excludes equity in income (loss) of non-consolidated affiliates. |
| (B) | Excludes interest expense on income tax contingencies. |
| (C) | Represents an estimated amount of rental expense (33%) that is deemed to be representative of the interest factor. |