EXHIBIT 12

 

CUMMINS INC. AND SUBSIDIARIES

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

 

 

 

Nine months ended

 

 

 

September 26,

 

September 27,

 

In millions

 

2010

 

2009

 

Earnings

 

 

 

 

 

Earnings before income taxes and noncontrolling interests

 

$

1,087

 

$

266

 

Add:

 

 

 

 

 

Fixed charges

 

74

 

64

 

Amortization of capitalized interest

 

3

 

3

 

Distributed income of equity investees

 

150

 

192

 

Less:

 

 

 

 

 

Equity in earnings of investees

 

239

 

137

 

Capitalized interest

 

4

 

4

 

Earnings before fixed charges

 

$

1,071

 

$

384

 

 

 

 

 

 

 

Fixed charges

 

 

 

 

 

Interest expense

 

$

29

 

$

26

 

Capitalized interest

 

4

 

4

 

Amortization of debt discount

 

6

 

2

 

Interest portion of rental expense (1)

 

35

 

32

 

Total fixed charges

 

$

74

 

$

64

 

 

 

 

 

 

 

Ratio of earnings to fixed charges

 

14.5

 

6.0

 

 


(1) Amounts represent those portions of rent expense that are reasonable approximations of interest costs.