EXHIBIT 12
CUMMINS INC. AND CONSOLIDATED SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
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Nine months ended |
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September 30, |
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October 1, |
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2007 |
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2006 |
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Millions |
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Earnings |
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Earnings before income taxes and minority interests |
$ |
859 |
$ |
800 |
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Add: |
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Fixed charges |
77 |
102 |
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Amortization of capitalized interest |
4 |
4 |
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Distributed income of equity investees |
71 |
46 |
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Less: |
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Equity in earnings of investees |
137 |
89 |
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Capitalized interest |
4 |
2 |
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Earnings before fixed charges |
$ |
870 |
$ |
861 |
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Fixed charges |
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Interest expense |
$ |
44 |
$ |
76 |
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Capitalized interest |
4 |
2 |
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Amortization of debt discount |
1 |
- |
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Interest portion of rental expense (1) |
28 |
24 |
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Total fixed charges |
$ |
77 |
$ |
102 |
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Ratio of earnings to fixed charges |
11.3 |
8.4 |
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