EXHIBIT 12

 

CUMMINS INC. AND CONSOLIDATED SUBSIDIARIES

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

 

 

 

Three months ended

 

 

 

March 30,

 

April 1,

 

 

 

2008

 

2007

 

 

Millions

Earnings

Earnings before income taxes and minority interests

$

304

$

227

Add:

   Fixed charges

25

26

   Amortization of capitalized interest

1

1

   Distributed income of equity investees

15

18

Less:

   Equity in earnings of investees

62

33

   Capitalized interest

2

1

Earnings before fixed charges

$

281

$

238

Fixed charges

Interest expense

$

11

$

16

Capitalized interest

2

1

Amortization of debt discount

2

-

Interest portion of rental expense (1)

10

9

Total fixed charges

$

25

$

26

Ratio of earnings to fixed charges

11.2

9.2


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