EXHIBIT 12
CUMMINS INC. AND CONSOLIDATED SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
|
|
Three months ended |
|
||||
|
|
April 2, |
|
March 27, |
|
||
|
|
2006 |
|
2005 |
|
||
Earnings |
|||||||
Earnings before income taxes and minority interests |
$ |
228 |
$ |
135 |
|||
Add: |
|||||||
Fixed charges |
36 |
36 |
|||||
Amortization of capitalized interest |
1 |
1 |
|||||
Distributed income of equity investees |
17 |
7 |
|||||
Less: |
|||||||
Equity in earnings of investees |
(26 |
) |
(28 |
) |
|||
Capitalized interest |
(1 |
) |
- |
||||
Earnings before fixed charges |
$ |
255 |
$ |
151 |
|||
Fixed charges |
|||||||
Interest expense |
$ |
27 |
$ |
28 |
|||
Capitalized interest |
1 |
- |
|||||
Interest portion of rental expense(1) |
8 |
8 |
|||||
Total fixed charges |
$ |
36 |
$ |
36 |
|||
Ratio of earnings to fixed charges |
7.1 |
4.2 |
|||||
(1) Amounts represent those portions of rent expense that are reasonable approximations of interest costs.