EXHIBIT 12

 

CUMMINS INC. AND SUBSIDIARIES

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

 

 

 

Three months ended

 

 

 

March 27,

 

March 28,

 

In millions

 

2011

 

2010

 

Earnings

 

 

 

 

 

Earnings before income taxes and noncontrolling interests

 

$

522

 

$

257

 

Add:

 

 

 

 

 

Fixed charges

 

25

 

22

 

Amortization of capitalized interest

 

1

 

1

 

Distributed income of equity investees

 

22

 

24

 

Less:

 

 

 

 

 

Equity in earnings of investees

 

87

 

68

 

Capitalized interest

 

1

 

1

 

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

 

 

1

 

Earnings before fixed charges

 

$

482

 

$

234

 

 

 

 

 

 

 

Fixed charges

 

 

 

 

 

Interest expense

 

$

10

 

$

9

 

Capitalized interest

 

1

 

1

 

Amortization of debt discount

 

1

 

 

Interest portion of rental expense (1)

 

13

 

12

 

Total fixed charges

 

$

25

 

$

22

 

 

 

 

 

 

 

Ratio of earnings to fixed charges

 

19.3

 

10.6

 

 


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