EXHIBIT 12

 

CUMMINS INC. AND CONSOLIDATED SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

 

 

 

Three months ended

 

 

 

April 2,

 

March 27,

 

 

 

2006

 

2005

 

Earnings

Earnings before income taxes and minority interests

$

228

$

135

Add:

   Fixed charges

36

36

   Amortization of capitalized interest

1

1

   Distributed income of equity investees

17

7

Less:

   Equity in earnings of investees

(26

(28

   Capitalized interest

(1

)

-

Earnings before fixed charges

$

255

$

151

 

Fixed charges

Interest expense

$

27

$

28

Capitalized interest

1

-

Interest portion of rental expense(1)

8

8

Total fixed charges

$

36

$

36

 

Ratio of earnings to fixed charges

7.1

4.2

 

 

 

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