EXHIBIT 12

 

CUMMINS INC. AND SUBSIDIARIES

 

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

 

 

 

For the three months ended

 

 

 

March 28,

 

March 29,

 

In millions

 

2010

 

2009

 

Earnings

 

 

 

 

 

Earnings before income taxes and noncontrolling interests

 

$

257

 

$

21

 

Add:

 

 

 

 

 

Fixed charges

 

22

 

20

 

Amortization of capitalized interest

 

1

 

1

 

Distributed income of equity investees

 

24

 

80

 

Less:

 

 

 

 

 

Equity in earnings of investees

 

68

 

30

 

Capitalized interest

 

1

 

2

 

Noncontrolling interest in pre-tax income of subsidiaries that have not incurred fixed charges

 

1

 

 

Earnings before fixed charges

 

$

234

 

$

90

 

 

 

 

 

 

 

Fixed charges

 

 

 

 

 

Interest expense

 

$

9

 

$

7

 

Capitalized interest

 

1

 

2

 

Amortization of debt discount

 

 

1

 

Interest portion of rental expense(1)

 

12

 

10

 

Total fixed charges

 

$

22

 

$

20

 

 

 

 

 

 

 

Ratio of earnings to fixed charges

 

10.6

 

4.5

 

 


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