EXHIBIT 12
CUMMINS INC. AND CONSOLIDATED SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
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Three months ended |
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March 30, |
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April 1, |
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2008 |
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2007 |
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Millions |
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Earnings |
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Earnings before income taxes and minority interests |
$ |
304 |
$ |
227 |
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Add: |
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Fixed charges |
25 |
26 |
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Amortization of capitalized interest |
1 |
1 |
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Distributed income of equity investees |
15 |
18 |
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Less: |
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Equity in earnings of investees |
62 |
33 |
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Capitalized interest |
2 |
1 |
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Earnings before fixed charges |
$ |
281 |
$ |
238 |
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Fixed charges |
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Interest expense |
$ |
11 |
$ |
16 |
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Capitalized interest |
2 |
1 |
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Amortization of debt discount |
2 |
- |
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Interest portion of rental expense (1) |
10 |
9 |
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Total fixed charges |
$ |
25 |
$ |
26 |
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Ratio of earnings to fixed charges |
11.2 |
9.2 |
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