EXHIBIT 12
CUMMINS INC. AND SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
|
|
|
Three months ended |
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In millions |
|
March 31, 2013 |
|
April 1, 2012 |
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|
Earnings |
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|
|
|
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|
Earnings before income taxes and noncontrolling interests |
|
$ |
431 |
|
$ |
650 |
|
|
Add |
|
|
|
|
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Fixed charges |
|
25 |
|
25 |
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|
Amortization of capitalized interest |
|
— |
|
1 |
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|
Distributed income of equity investees |
|
41 |
|
31 |
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|
Less |
|
|
|
|
| ||
|
Equity in earnings of investees |
|
73 |
|
92 |
| ||
|
Capitalized interest |
|
2 |
|
2 |
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|
Earnings before fixed charges |
|
$ |
422 |
|
$ |
613 |
|
|
|
|
|
|
|
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|
Fixed charges |
|
|
|
|
| ||
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Interest expense |
|
$ |
6 |
|
$ |
8 |
|
|
Capitalized interest |
|
2 |
|
2 |
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|
Amortization of debt discount |
|
2 |
|
— |
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|
Interest portion of rental expense (1) |
|
15 |
|
15 |
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|
Total fixed charges |
|
$ |
25 |
|
$ |
25 |
|
|
|
|
|
|
|
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Ratio of earnings to fixed charges |
|
16.9 |
|
24.5 |
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(1) Amounts represent those portions of rent expense that are reasonable approximations of interest costs.