EXHIBIT 12
CUMMINS INC. AND SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
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For the three months ended |
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March 28, |
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March 29, |
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In millions |
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2010 |
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2009 |
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Earnings |
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Earnings before income taxes and noncontrolling interests |
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$ |
257 |
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$ |
21 |
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Add: |
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Fixed charges |
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22 |
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20 |
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Amortization of capitalized interest |
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1 |
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1 |
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Distributed income of equity investees |
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24 |
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80 |
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Less: |
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Equity in earnings of investees |
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68 |
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30 |
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Capitalized interest |
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1 |
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2 |
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Noncontrolling interest in pre-tax income of subsidiaries that have not incurred fixed charges |
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1 |
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Earnings before fixed charges |
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$ |
234 |
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$ |
90 |
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Fixed charges |
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Interest expense |
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$ |
9 |
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$ |
7 |
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Capitalized interest |
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1 |
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2 |
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Amortization of debt discount |
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1 |
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Interest portion of rental expense(1) |
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12 |
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10 |
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Total fixed charges |
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$ |
22 |
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$ |
20 |
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Ratio of earnings to fixed charges |
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10.6 |
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4.5 |
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(1) Amounts represent those portions of rent expense that are reasonable approximations of interest costs.