EXHIBIT 12
CUMMINS INC. AND CONSOLIDATED SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
|
|
Three months ended |
|
||||
|
|
March 30, |
|
April 1, |
|
||
|
|
2008 |
|
2007 |
|
||
|
Millions |
||||||
Earnings |
|||||||
Earnings before income taxes and minority interests |
$ |
304 |
$ |
227 |
|||
Add: |
|||||||
Fixed charges |
25 |
26 |
|||||
Amortization of capitalized interest |
1 |
1 |
|||||
Distributed income of equity investees |
15 |
18 |
|||||
Less: |
|||||||
Equity in earnings of investees |
62 |
33 |
|||||
Capitalized interest |
2 |
1 |
|||||
Earnings before fixed charges |
$ |
281 |
$ |
238 |
|||
Fixed charges |
|||||||
Interest expense |
$ |
11 |
$ |
16 |
|||
Capitalized interest |
2 |
1 |
|||||
Amortization of debt discount |
2 |
- |
|||||
Interest portion of rental expense (1) |
10 |
9 |
|||||
Total fixed charges |
$ |
25 |
$ |
26 |
|||
Ratio of earnings to fixed charges |
11.2 |
9.2 |
|||||
|
|||||||