EXHIBIT 12
CUMMINS INC. AND SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
|
|
|
Six months ended |
|
||||
|
|
|
June 28, |
|
June 29, |
|
||
|
In millions |
|
2009 |
|
2008 |
|
||
|
Earnings |
|
|
|
|
|
||
|
Earnings before income taxes |
|
$ |
120 |
|
$ |
761 |
|
|
Add: |
|
|
|
|
|
||
|
Fixed charges |
|
40 |
|
48 |
|
||
|
Amortization of capitalized interest |
|
2 |
|
2 |
|
||
|
Distributed income of equity investees |
|
145 |
|
61 |
|
||
|
Less: |
|
|
|
|
|
||
|
Equity in earnings of investees |
|
83 |
|
125 |
|
||
|
Capitalized interest |
|
1 |
|
3 |
|
||
|
Earnings before fixed charges |
|
$ |
223 |
|
$ |
744 |
|
|
|
|
|
|
|
|
||
|
Fixed charges |
|
|
|
|
|
||
|
Interest expense |
|
$ |
17 |
|
$ |
23 |
|
|
Capitalized interest |
|
1 |
|
3 |
|
||
|
Amortization of debt discount |
|
1 |
|
1 |
|
||
|
Interest portion of rental expense(1) |
|
21 |
|
21 |
|
||
|
Total fixed charges |
|
$ |
40 |
|
$ |
48 |
|
|
|
|
|
|
|
|
||
|
Ratio of earnings to fixed charges |
|
5.6 |
|
15.5 |
|
||
(1) Amounts represent those portions of rent expense that are reasonable approximations of interest costs.