EXHIBIT 12
CUMMINS INC. AND SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
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Three months ended |
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March 29, |
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March 30, |
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In millions |
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2009 |
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2008 |
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Earnings |
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Earnings before income taxes |
$ |
21 |
$ |
304 |
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Add: |
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Fixed charges |
20 |
25 |
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Amortization of capitalized interest |
1 |
1 |
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Distributed income of equity investees |
80 |
15 |
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Less: |
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Equity in earnings of investees |
30 |
62 |
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Capitalized interest |
2 |
2 |
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Earnings before fixed charges |
$ |
90 |
$ |
281 |
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Fixed charges |
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Interest expense |
$ |
7 |
$ |
11 |
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Capitalized interest |
2 |
2 |
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Amortization of debt discount |
1 |
2 |
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Interest portion of rental expense(1) |
10 |
10 |
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Total fixed charges |
$ |
20 |
$ |
25 |
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Ratio of earnings to fixed charges |
4.5 |
11.2 |
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(1) Amounts represent those portions of rent expense that are reasonable approximations of interest costs. |