EXHIBIT 12
CUMMINS INC. AND SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
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Nine months ended |
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September 27, |
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September 28, |
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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 and noncontrolling interests |
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$ |
266 |
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$ |
1,131 |
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Add: |
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Fixed charges |
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60 |
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72 |
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Amortization of capitalized interest |
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3 |
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3 |
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Distributed income of equity investees |
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192 |
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101 |
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Less: |
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Equity in earnings of investees |
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137 |
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186 |
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Capitalized interest |
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5 |
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Earnings before fixed charges |
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$ |
384 |
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$ |
1,116 |
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Fixed charges |
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Interest expense |
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$ |
26 |
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$ |
33 |
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Capitalized interest |
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5 |
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Amortization of debt discount |
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2 |
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2 |
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Interest portion of rental expense(1) |
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32 |
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32 |
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Total fixed charges |
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$ |
60 |
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$ |
72 |
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Ratio of earnings to fixed charges |
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6.4 |
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15.5 |
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(1) Amounts represent those portions of rent expense that are reasonable approximations of interest costs.