EXHIBIT 12

 

CUMMINS INC. AND SUBSIDIARIES

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

 

 

 

Three months ended

 

 

 

March 29,

 

March 30,

 

In millions 

 

2009

 

2008

 

Earnings

Earnings before income taxes

$

21

$

304

Add:

   Fixed charges

20

25

   Amortization of capitalized interest

1

1

   Distributed income of equity investees

80

15

Less:

   Equity in earnings of investees

30

62

   Capitalized interest

2

2

Earnings before fixed charges

$

90

$

281

Fixed charges

Interest expense

$

7

$

11

Capitalized interest

2

2

Amortization of debt discount

1

2

Interest portion of rental expense(1)

10

10

Total fixed charges

$

20

$

25

Ratio of earnings to fixed charges

4.5

11.2

(1) Amounts represent those portions of rent expense that are reasonable approximations of interest costs.