EXHIBIT 12
CUMMINS INC. AND SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
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Three months ended |
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March 27, |
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March 28, |
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In millions |
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2011 |
|
2010 |
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Earnings |
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|
|
|
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Earnings before income taxes and noncontrolling interests |
|
$ |
522 |
|
$ |
257 |
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Add: |
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|
|
|
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Fixed charges |
|
25 |
|
22 |
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Amortization of capitalized interest |
|
1 |
|
1 |
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Distributed income of equity investees |
|
22 |
|
24 |
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Less: |
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|
|
|
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Equity in earnings of investees |
|
87 |
|
68 |
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Capitalized interest |
|
1 |
|
1 |
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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 |
|
$ |
482 |
|
$ |
234 |
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|
|
|
|
|
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Fixed charges |
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|
|
|
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Interest expense |
|
$ |
10 |
|
$ |
9 |
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Capitalized interest |
|
1 |
|
1 |
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Amortization of debt discount |
|
1 |
|
|
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Interest portion of rental expense (1) |
|
13 |
|
12 |
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Total fixed charges |
|
$ |
25 |
|
$ |
22 |
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|
|
|
|
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Ratio of earnings to fixed charges |
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19.3 |
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10.6 |
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(1) Amounts represent those portions of rent expense that are reasonable approximations of interest costs.